-----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, Hf7uJWim1cdjSJD3bx9SSLjmGQmu3xjeXX5YbllFtV0wo0j20RBo7zSDkHFAHAtR ssBvOG/mKBNx57HpRHllwQ== 0000950117-96-000172.txt : 19960306 0000950117-96-000172.hdr.sgml : 19960306 ACCESSION NUMBER: 0000950117-96-000172 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960305 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04108 FILM NUMBER: 96531221 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 N-30D 1 VARIABLE ACCOUNT FUNDS A.R. OPPENHEIMER VARIABLE ACCOUNT FUNDS ANNUAL REPORT DECEMBER 31, 1995 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND Statement of Investments DECEMBER 31, 1995
PRINCIPAL VALUE AMOUNT (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT - 4.6% - ------------------------------------------------------------------------------------------------------------------------------------ YANKEE CERTIFICATES OF DEPOSIT - 4.6% - ------------------------------------------------------------------------------------------------------------------------------------ Sanwa Bank Ltd., 5.67%, 1/10/96 (Cost $2,999,928) $ 3,000,000 $ 2,999,928 - ------------------------------------------------------------------------------------------------------------------------------------ DIRECT BANK OBLIGATIONS - 10.5% - ------------------------------------------------------------------------------------------------------------------------------------ Chase Manhattan Bank, 5.45%, 5/17/96 3,000,000 2,938,579 ------------------------------------------------------------------------------------------------------------------------- FCC National Bank, 5.25%, 1/19/96 (1) 1,000,000 999,779 ------------------------------------------------------------------------------------------------------------------------- National Westminster Bank of Canada, 5.40%, 7/26/96 3,000,000 2,906,850 ----------------- Total Direct Bank Obligations (Cost $6,845,208) 6,845,208 - ------------------------------------------------------------------------------------------------------------------------------------ LETTERS OF CREDIT - 5.3% - ------------------------------------------------------------------------------------------------------------------------------------ Barclays Bank PLC, guaranteeing commercial paper of: 3,500,000 3,440,885 Banco Real, S.A.-Grand Cayman Branch, 5.63%, 4/18/96 (Cost $3,440,885) - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM NOTES - 61.4% - ------------------------------------------------------------------------------------------------------------------------------------ BANKS - 4.7% ------------------------------------------------------------------------------------------------------------------------- CoreStates Capital Corp., 5.71%, 2/15/96 3,000,000 2,978,587 - ------------------------------------------------------------------------------------------------------------------------------------ BROKER/DEALERS - 14.6% ------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc., 6.25%, 1/2/96 3,000,000 2,999,479 ------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc., 5.68%-5.70%, 2/29/96 3,000,000 2,971,975 ------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Group, Inc., 5.53%, 9/30/96 (1) 3,600,000 3,600,000 ----------------- 9,571,454 - ------------------------------------------------------------------------------------------------------------------------------------ COMMERCIAL FINANCE - 15.2% ------------------------------------------------------------------------------------------------------------------------- CIT Group Holdings, Inc., 6.027%, 1/10/96 (1) 1,000,000 1,000,000 ------------------------------------------------------------------------------------------------------------------------- FINOVA Capital Corp., 5.85%-5.90%, 1/30/96 3,000,000 2,985,742 ------------------------------------------------------------------------------------------------------------------------- Fleet Mortgage Group, Inc., 5.58%, 4/4/96 3,000,000 2,956,290 ------------------------------------------------------------------------------------------------------------------------- Heller Financial, Inc., 5.78%, 2/12/96 3,000,000 2,979,770 ----------------- 9,921,802 - ------------------------------------------------------------------------------------------------------------------------------------ CONGLOMERATES - 5.0% ------------------------------------------------------------------------------------------------------------------------- Mitsubishi International Corp., 5.65%, 1/5/96 3,300,000 3,297,928 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER FINANCE - 6.1% ------------------------------------------------------------------------------------------------------------------------- Beneficial Corp., 5.26%, 2/1/96 (1) 4,000,000 4,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED FINANCIAL - 3.0% ------------------------------------------------------------------------------------------------------------------------- General Motors Acceptance Corp., 6.025%, 3/1/96 (1) 2,000,000 1,999,902 - ------------------------------------------------------------------------------------------------------------------------------------ ENVIRONMENTAL - 4.4% ------------------------------------------------------------------------------------------------------------------------- WMX Technologies, Inc., 5.32%, 9/10/96 3,000,000 2,887,837 - ------------------------------------------------------------------------------------------------------------------------------------ SAVINGS & LOANS - 5.3% ------------------------------------------------------------------------------------------------------------------------- Great Western Bank FSB, 5.72%-5.75%, 1/29/96 3,500,000 3,484,429 - ------------------------------------------------------------------------------------------------------------------------------------ SPECIAL PURPOSE FINANCIAL - 3.1% ------------------------------------------------------------------------------------------------------------------------- Madison Funding Corp., 5.70%, 1/22/96 2,025,000 2,017,818 ----------------- Total Short-Term Notes (Cost $40,159,757) 40,159,757
2 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL VALUE AMOUNT (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS - 4.6% - ------------------------------------------------------------------------------------------------------------------------------------ Student Loan Marketing Assn., guaranteeing commercial paper of: Secondary Market Services, Inc., Education Loan Revenue Nts., Series-1995A, 5.72%-5.75%, 1/12/96 (Cost $2,994,729) $ 3,000,000 $ 2,994,729 - ------------------------------------------------------------------------------------------------------------------------------------ FOREIGN GOVERNMENT OBLIGATIONS - 4.4% - ------------------------------------------------------------------------------------------------------------------------------------ Westdeutsche Landesbank Girozentrale supported by Federal Republic of Germany, guaranteeing commercial paper of: Unibanco-Uniao de Brancos Brasileiros S.A.-Grand Cayman, 3,000,000 2,909,440 5.66%, 4/15/96 (Cost $2,909,440) - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT - 5.5% - ------------------------------------------------------------------------------------------------------------------------------------ Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $3,597,357 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $1,951,392, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $1,182,591, and U.S. Treasury Bills maturing 11/14/96, with a value of $536,288 (Cost $3,595,000) 3,595,000 3,595,000 ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE 96.3% 62,944,947 ------------------------------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 3.7 2,441,513 ------------------------------------------------------------------------------------------------------------------------- NET ASSETS 100.0% 65,386,460 ================= ================= Short-term notes, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Trust at the time of purchase. Other securities normally bear interest at the rates shown. 1. Variable rate security. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 1995. See accompanying Notes to Financial Statements. 3 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments DECEMBER 31, 1995
PRINCIPAL MARKET VALUE AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT - 1.8% - ------------------------------------------------------------------------------------------------------------------------------------ Citibank CD: 19%, 1/19/96 (2) IDR 1,369,800,000 $ 599,101 27.40%, 3/22/96 (2) HUF 83,706,000 612,667 ------------------------------------------------------------------------------------------------------------------------- Indonesia (Republic of) Bank Negara CD, Zero Coupon, (2) (3) IDR 2,000,000,000 805,012 15.914%, 6/17/96 ------------------------------------------------------------------------------------------------------------------------- Krungthai Thanakit CD, Zero Coupon, 11.533%, 2/29/96 (2) (3) THB 10,000,000 387,586 ----------------- 1,192,598 Total Certificates of Deposit (Cost $2,427,679) 2,404,366 - ------------------------------------------------------------------------------------------------------------------------------------ MORTGAGE-BACKED OBLIGATIONS - 2.6% - ------------------------------------------------------------------------------------------------------------------------------------ PRIVATE - 2.6% - ------------------------------------------------------------------------------------------------------------------------------------ COMMERCIAL - 0.8% ------------------------------------------------------------------------------------------------------------------------- CBA Mortgage Corp., Mtg. Pass-Through Certificates, Series (4) (5) 700,000 518,219 1993-C1, Cl. F, 7.154%, 12/25/03 ------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through (4) 496,835 509,644 Certificates, Series 1995-C2, Cl. D, 8.06%, 6/15/21 ----------------- 1,027,863 - ------------------------------------------------------------------------------------------------------------------------------------ MULTI-FAMILY - 1.8% Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates: Series 1994-C1, Cl. E, 8%, 6/25/26 747,797 631,889 Series 1994-C2, Cl. G, 8%, 4/25/25 913,912 768,543 Series 1995-C1, Cl. F, 6.90%, 2/25/27 1,133,508 997,841 ----------------- 2,398,273 ----------------- Total Mortgage-Backed Obligations (Cost $3,274,663) 3,426,136 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GOVERNMENT OBLIGATIONS - 5.1% - ------------------------------------------------------------------------------------------------------------------------------------ TREASURY - 5.1% - ------------------------------------------------------------------------------------------------------------------------------------ U.S. Treasury Bonds, 6.875%, 8/15/25 (Cost $6,531,094) 6,000,000 6,770,621 - ------------------------------------------------------------------------------------------------------------------------------------ FOREIGN GOVERNMENT OBLIGATIONS - 12.2% - ------------------------------------------------------------------------------------------------------------------------------------ Argentina (Republic of): Bonds, Bonos del Tesoro, Series I, 5.89%, 5/31/96 (4) 200,000 195,944 Medium-Term Nts., 8%, 8/9/97 NLG 800,000 495,325 Sr. Unsub. Unsec. Nts., 9.875%, 1/6/98 FRF 2,060,000 420,446 ------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Interest Due and Unpaid Bonds, (4) 356,250 306,820 6.688%, 1/1/01 ------------------------------------------------------------------------------------------------------------------------- Bulgaria (Republic of) Interest Arrears Bonds, 6.75%, 7/28/11 (4) (6) 200,000 92,750 ------------------------------------------------------------------------------------------------------------------------- Canada (Government of) Bonds: 7.75%, 9/1/99 CAD 641,000 492,321 Series A-76, 9%, 6/1/25 CAD 592,000 506,792 ------------------------------------------------------------------------------------------------------------------------- Central Bank of Costa Rica Principal Bonds, Series A, 6.25%, 500,000 310,000 5/21/10 ------------------------------------------------------------------------------------------------------------------------- Colombia (Republic of) 1989-1990 Integrated Loan Facility (4) (7) 1,114,360 1,036,355 Bonds, 6.875%, 7/1/01
4 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ Denmark (Kingdom of) Bonds: 7%, 11/10/24 DKK 6,300,000 $ 1,014,039 8%, 3/15/06 DKK 1,410,000 268,296 ------------------------------------------------------------------------------------------------------------------------- Ecuador (Republic of) Disc. Bonds, 6.812%, 2/28/25 (4) 520,000 264,550 ------------------------------------------------------------------------------------------------------------------------- European Investment Bank, 12.75% Debs., 2/15/00 ITL 206,000,000 140,404 ------------------------------------------------------------------------------------------------------------------------- France (Government of) Obligation Assimilable du Tresor FRF 556,000 124,403 Debs., 9.50%, 6/25/98 ------------------------------------------------------------------------------------------------------------------------- Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24 DEM 1,450,000 943,685 ------------------------------------------------------------------------------------------------------------------------- Hashemite Kingdom of Jordan Disc. Bonds, 6.437%, 12/23/23 (4) 1,000,000 620,000 ------------------------------------------------------------------------------------------------------------------------- International Bank for Reconstruction and Development Bonds, NZD 500,000 348,124 12.50%, 7/25/97 ------------------------------------------------------------------------------------------------------------------------- Italy (Republic of) Treasury Bonds, Buoni del Tesoro ITL 320,000,000 203,611 Poliennali, 10.50%, 4/1/00 ------------------------------------------------------------------------------------------------------------------------- Morocco (Kingdom of) Loan Participation Agreement, Tranche (4) 1,500,000 999,375 A, 6.594%, 1/1/09 ------------------------------------------------------------------------------------------------------------------------- National Treasury Management Agency (Irish Government) IEP 140,000 235,831 Bonds, 8%, 10/18/00 ------------------------------------------------------------------------------------------------------------------------- New Zealand (Republic of) Bonds, 10%, 7/15/97 NZD 1,230,000 826,403 ------------------------------------------------------------------------------------------------------------------------- Nordic Investment Bank, 11.30% Debs., 3/4/02 ITL 215,000,000 140,440 ------------------------------------------------------------------------------------------------------------------------- Norwegian Government Bonds, 9.50%, 10/31/02 NOK 4,400,000 824,375 ------------------------------------------------------------------------------------------------------------------------- Panama (Republic of) Debs., 6.75%, 5/10/02 (4) 175,000 149,953 ------------------------------------------------------------------------------------------------------------------------- Poland (Republic of) Treasury Bills, Zero Coupon, 29.984%, (3) PLZ 500,000 188,298 4/17/96 ------------------------------------------------------------------------------------------------------------------------- Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio PTE 85,000,000 613,096 Prazo, 11.875%, 2/23/00 ------------------------------------------------------------------------------------------------------------------------- Spain (Kingdom of): Debs., Bonos y Obligacion del Estado, 10.10%, 2/28/01 ESP 39,000,000 325,174 Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%, 3/25/00 ESP 49,000,000 441,551 ------------------------------------------------------------------------------------------------------------------------- Sweden (Kingdom of) Bonds, Series 1028, 11%, 1/21/99 SEK 3,500,000 568,290 ------------------------------------------------------------------------------------------------------------------------- Treasury Corp. of Victoria Bonds, 12%, 10/22/98 AUD 450,000 372,686 ------------------------------------------------------------------------------------------------------------------------- Trinidad & Tobago Loan Participation Agreement, Tranche B, (4) (7) JPY 65,000,000 534,044 1.563%, 9/30/00 ------------------------------------------------------------------------------------------------------------------------- United Kingdom Treasury: Debs., 8.50%, 12/7/05 GBP 185,000 308,684 10%, 2/26/01 GBP 180,000 315,974 ------------------------------------------------------------------------------------------------------------------------- United Mexican States, Nacional Financiera SNC Nts., 13.60%, ESP 100,000,000 800,594 4/2/98 ------------------------------------------------------------------------------------------------------------------------- Venezuela (Republic of) Disc. Bonds, Series DL, 6.563%, (4) 1,500,000 828,750 12/18/07 ----------------- Total Foreign Government Obligations (Cost $16,009,093) 16,257,383 - ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS AND NOTES - 0.9% - ------------------------------------------------------------------------------------------------------------------------------------ San Joaquin Hills, California Transportation Corridor Agency (3) 12,500,000 1,202,550 Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, Zero Coupon, 9%, 1/1/28 (Cost $747,374)
5 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE BONDS AND NOTES - 65.8% - ------------------------------------------------------------------------------------------------------------------------------------ BASIC INDUSTRY - 5.6% - ------------------------------------------------------------------------------------------------------------------------------------ CHEMICALS - 1.0% ------------------------------------------------------------------------------------------------------------------------- NL Industries, Inc.: 0%/13% Sr. Sec. Disc. Nts., 10/15/05 (8) $ 800,000 618,000 11.75% Sr. Sec. Nts., 10/15/03 650,000 697,125 ----------------- 1,315,125 - ------------------------------------------------------------------------------------------------------------------------------------ METALS/MINING - 0.8% ------------------------------------------------------------------------------------------------------------------------- Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 454,000 492,590 ------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts., 2/15/02 300,000 309,750 ------------------------------------------------------------------------------------------------------------------------- UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 230,000 262,775 ----------------- 1,065,115 - ------------------------------------------------------------------------------------------------------------------------------------ PAPER - 3.8% ------------------------------------------------------------------------------------------------------------------------- Buckeye Cellulose Corp., 8.50% Sr. Sub. Nts., 12/15/05 250,000 257,812 ------------------------------------------------------------------------------------------------------------------------- Crown Paper Co., 11% Sr. Sub. Nts., 9/1/05 750,000 660,000 ------------------------------------------------------------------------------------------------------------------------- Domtar, Inc.: 11.25% Debs., 9/15/17 400,000 426,000 12% Nts., 4/15/01 250,000 295,313 ------------------------------------------------------------------------------------------------------------------------- Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 500,000 517,500 ------------------------------------------------------------------------------------------------------------------------- Repap New Brunswick, Inc., 9.25% First Priority Sr. Sec. (4) 400,000 402,000 Nts., 7/15/00 ------------------------------------------------------------------------------------------------------------------------- Repap Wisconsin, Inc., 9.25% First Priority Sr. Sec. Nts., 500,000 477,500 2/1/02 ------------------------------------------------------------------------------------------------------------------------- Riverwood International Corp.: 10.75% Sr. Nts., 6/15/00 400,000 427,500 11.25% Sr. Sub. Nts., 6/15/02 200,000 215,000 ------------------------------------------------------------------------------------------------------------------------- Stone Container Corp.: 10.75% First Mtg. Nts., 10/1/02 1,300,000 1,358,500 10.75% Sr. Sub. Nts., 6/15/97 100,000 102,500 ----------------- 5,139,625 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER RELATED - 12.3% - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER PRODUCTS - 2.9% ------------------------------------------------------------------------------------------------------------------------- Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., (3) 400,000 320,000 Series B, 10.901%, 5/27/98 ------------------------------------------------------------------------------------------------------------------------- Harman International Industries, Inc., 12% Sr. Sub. Nts., 1,650,000 1,823,250 8/1/02 ------------------------------------------------------------------------------------------------------------------------- International Semi-Tech Microelectronics, Inc., 0%/11.50% (8) 650,000 344,500 Sr. Sec. Disc. Nts., 8/15/03 ------------------------------------------------------------------------------------------------------------------------- Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., (3) 350,000 260,750 12.333%, 3/15/98 ------------------------------------------------------------------------------------------------------------------------- Tag-Heuer International SA, 12% Sr. Sub. Nts., 12/15/05 (5) 500,000 501,875 ------------------------------------------------------------------------------------------------------------------------- Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04 600,000 600,000 ----------------- 3,850,375 - ------------------------------------------------------------------------------------------------------------------------------------ FOOD/BEVERAGES/TOBACCO - 0.8% ------------------------------------------------------------------------------------------------------------------------- Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03 400,000 418,000 ------------------------------------------------------------------------------------------------------------------------- Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 (7) 700,000 705,250 ----------------- 1,123,250 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 4.1% ------------------------------------------------------------------------------------------------------------------------- AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (9) 650,000 718,250
6 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER RELATED (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (CONTINUED) ------------------------------------------------------------------------------------------------------------------------- Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 $ 1,600,000 1,918,000 ------------------------------------------------------------------------------------------------------------------------- Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02 (5) 400,000 434,000 ------------------------------------------------------------------------------------------------------------------------- Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series 500,000 548,750 A, 4/15/04 ------------------------------------------------------------------------------------------------------------------------- Quorum Health Group, Inc., 8.75% Sr. Sub. Nts., 11/1/05 300,000 311,625 ------------------------------------------------------------------------------------------------------------------------- Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 500,000 556,250 ------------------------------------------------------------------------------------------------------------------------- Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04 (8) 994,000 959,210 ----------------- 5,446,085 - ------------------------------------------------------------------------------------------------------------------------------------ HOTEL/GAMING - 2.3% ------------------------------------------------------------------------------------------------------------------------- Bally's Casino Holdings, Inc., Zero Coupon Sr. Disc. Nts., (3) 600,000 483,000 10.252%, 6/15/98 ------------------------------------------------------------------------------------------------------------------------- Capital Gaming International, Inc. Promissory Nts. 9,500 -- ------------------------------------------------------------------------------------------------------------------------- Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 500,000 523,750 ------------------------------------------------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts., (5) 400,000 434,000 11/15/02 ------------------------------------------------------------------------------------------------------------------------- Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 450,000 463,500 ------------------------------------------------------------------------------------------------------------------------- Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 750,000 738,750 ------------------------------------------------------------------------------------------------------------------------- Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts., 6/15/01 250,000 260,000 ------------------------------------------------------------------------------------------------------------------------- Trump Taj Mahal Funding, Inc., 11.35% Debs., Series A, (9) 200,000 189,217 11/15/99 ----------------- 3,092,217 - ------------------------------------------------------------------------------------------------------------------------------------ LEISURE - 0.3% ------------------------------------------------------------------------------------------------------------------------- Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 387,805 409,619 6/30/02 - ------------------------------------------------------------------------------------------------------------------------------------ RESTAURANTS - 1.3% ------------------------------------------------------------------------------------------------------------------------- Carrols Corp., 11.50% Sr. Nts., 8/15/03 430,000 436,450 ------------------------------------------------------------------------------------------------------------------------- Foodmaker, Inc.: 9.25% Sr. Nts., 3/1/99 200,000 192,500 9.75% Sr. Sub. Nts., 6/1/02 1,275,000 1,160,250 ----------------- 1,789,200 - ------------------------------------------------------------------------------------------------------------------------------------ TEXTILE/APPAREL - 0.6% ------------------------------------------------------------------------------------------------------------------------- Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 750,000 738,750 - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 4.3% - ------------------------------------------------------------------------------------------------------------------------------------ BP America, Inc., 10.875% Nts., 8/1/01 CAD 350,000 297,207 ------------------------------------------------------------------------------------------------------------------------- Chesapeake Energy Corp., 10.50% Sr. Nts., 6/1/02 500,000 526,250 ------------------------------------------------------------------------------------------------------------------------- Kelley Oil & Gas Corp., 13.50% Sr. Nts., 6/15/99 600,000 489,000 ------------------------------------------------------------------------------------------------------------------------- Maxus Energy Corp., 11.50% Debs., 11/15/15 800,000 830,000 ------------------------------------------------------------------------------------------------------------------------- OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 750,000 853,125 ------------------------------------------------------------------------------------------------------------------------- Petroleum Heat & Power Co., Inc.: 12.25% Sub. Debs., 2/1/05 250,000 280,000 9.375% Sub. Debs., 2/1/06 250,000 246,250 ------------------------------------------------------------------------------------------------------------------------- Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 200,000 208,000 ------------------------------------------------------------------------------------------------------------------------- Triton Energy Corp.: 0%/9.75% Sr. Sub. Disc. Nts., 12/15/00 (8) 200,000 187,500 Zero Coupon Sr. Sub. Disc. Nts., 10.318%, 11/1/97 (3) 1,200,000 1,041,000 ------------------------------------------------------------------------------------------------------------------------- United Meridian Corp., 10.375% Gtd. Sr. Sub. Nts., 10/15/05 250,000 265,625
7 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05 $ 500,000 $ 506,250 ----------------- 5,730,207 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL SERVICES - 2.1% - ------------------------------------------------------------------------------------------------------------------------------------ BANKS & THRIFTS - 0.7% ------------------------------------------------------------------------------------------------------------------------- Banco Bamerindus do Brasil SA: 10.50% Debs., 6/23/97 280,000 257,600 11% Sr. Unsub. Unsec. Bonds, 10/6/97 280,000 257,600 ------------------------------------------------------------------------------------------------------------------------- Banco Ganadero SA, Zero Coupon Sr. Unsub. Unsec. Nts., (3) (5) 250,000 239,520 9.941%, 6/15/96 ------------------------------------------------------------------------------------------------------------------------- Banco Mexicano SA, 8% Sr. Unsub. Unsec. Exchangeable 250,000 210,625 Medium-Term Nts., 11/4/98 ----------------- 965,345 - ------------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED FINANCIAL - 0.9% ------------------------------------------------------------------------------------------------------------------------- Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 250,000 212,500 ------------------------------------------------------------------------------------------------------------------------- ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 (7) 244,994 269,494 ------------------------------------------------------------------------------------------------------------------------- GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 300,000 282,750 ------------------------------------------------------------------------------------------------------------------------- Olympic Financial Ltd., 13% Sr. Nts., 5/1/00 350,000 383,250 ----------------- 1,147,994 - ------------------------------------------------------------------------------------------------------------------------------------ INSURANCE - 0.5% ------------------------------------------------------------------------------------------------------------------------- Terra Nova Insurance (UK) Holdings PLC, 10.75% Sr. Nts., 600,000 657,000 7/1/05 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING RELATED - 2.1% - ------------------------------------------------------------------------------------------------------------------------------------ BUILDING MATERIALS - 0.7% ------------------------------------------------------------------------------------------------------------------------- Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 640,000 707,200 ------------------------------------------------------------------------------------------------------------------------- Walter Industries, Inc., 17% Sub. Nts., 1/1/96 (10) 400,000 254,000 ----------------- 961,200 - ------------------------------------------------------------------------------------------------------------------------------------ HOMEBUILDERS/REAL ESTATE - 1.4% ------------------------------------------------------------------------------------------------------------------------- Olympia & York First Canadian Place Ltd., 11% Debs., Series (11) CAD 1,000,000 472,929 3, 11/4/49 ------------------------------------------------------------------------------------------------------------------------- Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. 1,000,000 1,025,000 Nts., Series B, 4/1/02 ------------------------------------------------------------------------------------------------------------------------- Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (5) 500,000 372,500 ----------------- 1,870,429 - ------------------------------------------------------------------------------------------------------------------------------------ MANUFACTURING - 3.1% - ------------------------------------------------------------------------------------------------------------------------------------ AEROSPACE/ELECTRONICS/COMPUTERS - 1.9% ------------------------------------------------------------------------------------------------------------------------- Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 500,000 562,500 5/1/03 ------------------------------------------------------------------------------------------------------------------------- Communications & Power Industries, Inc., 12% Sr. Sub. Nts., 500,000 516,250 8/1/05 ------------------------------------------------------------------------------------------------------------------------- Dell Computer Corp., 11% Sr. Nts., 8/15/00 500,000 555,000 ------------------------------------------------------------------------------------------------------------------------- Rohr, Inc., 11.625% Sr. Nts., 5/15/03 800,000 876,000 ----------------- 2,509,750 - ------------------------------------------------------------------------------------------------------------------------------------ AUTOMOTIVE - 1.2% ------------------------------------------------------------------------------------------------------------------------- Aftermarket Technology Corp., 12% Sr. Sub. Nts., Series B, 500,000 532,500 8/1/04 ------------------------------------------------------------------------------------------------------------------------- Foamex LP/Foamex Capital Corp.: 11.25% Sr. Nts., 10/1/02 500,000 482,500 9.50% Sr. Sec. Nts., 6/1/00 240,000 234,000
8 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ MANUFACTURING (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ AUTOMOTIVE (CONTINUED) ------------------------------------------------------------------------------------------------------------------------- Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 $ 425,000 $ 357,000 ----------------- 1,606,000 - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL GOODS - 0.0% ------------------------------------------------------------------------------------------------------------------------- Farley, Inc., Zero Coupon Sub. Debs., 14.151%, 12/30/12 (3) (7) 198,000 19,569 - ------------------------------------------------------------------------------------------------------------------------------------ MEDIA - 15.6% - ------------------------------------------------------------------------------------------------------------------------------------ BROADCASTING - 4.1% ------------------------------------------------------------------------------------------------------------------------- Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 430,000 433,225 ------------------------------------------------------------------------------------------------------------------------- Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05 150,000 149,250 ------------------------------------------------------------------------------------------------------------------------- Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,115,000 ------------------------------------------------------------------------------------------------------------------------- Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02 (5) 1,250,000 1,262,500 ------------------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 10% Sr. Sub. Nts., 12/15/03 345,000 353,625 10% Sr. Sub. Nts., 9/30/05 400,000 411,000 ------------------------------------------------------------------------------------------------------------------------- Summit Communications Group, Inc., 10.50% Sr. Sub. Debs., 850,000 947,750 4/15/05 ------------------------------------------------------------------------------------------------------------------------- Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 700,000 754,250 1/15/01 ----------------- 5,426,600 - ------------------------------------------------------------------------------------------------------------------------------------ CABLE TELEVISION - 7.2% ------------------------------------------------------------------------------------------------------------------------- American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04 (8) 1,506,106 1,042,978 ------------------------------------------------------------------------------------------------------------------------- Australis Media Ltd., Units (each unit consists of $1,000 (8)(12) 1,500,000 1,095,000 principal amount of 0%/14% sr. sub. disc. nts., 5/15/03 and one warrant to purchase 57.721 ordinary shares) ------------------------------------------------------------------------------------------------------------------------- Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04 (8) 1,500,000 1,070,625 ------------------------------------------------------------------------------------------------------------------------- Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 600,000 651,000 4/1/08 ------------------------------------------------------------------------------------------------------------------------- Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 531,250 ------------------------------------------------------------------------------------------------------------------------- Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc.Debs., (8) 350,000 206,500 11/15/07 ------------------------------------------------------------------------------------------------------------------------- Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 300,000 319,500 ------------------------------------------------------------------------------------------------------------------------- Diamond Cable Communications PLC: 0%/11.75% Sr. Disc. Nts., 12/15/05 (8) 500,000 297,500 0%/13.25% Sr. Disc. Nts., 9/30/04 (8) 100,000 70,750 ------------------------------------------------------------------------------------------------------------------------- Fundy Cable Ltd., 11% Sr. Sec. Second Priority Nts., 11/15/05 400,000 420,000 ------------------------------------------------------------------------------------------------------------------------- Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., (4) 675,000 651,375 Series B, 11/1/03 ------------------------------------------------------------------------------------------------------------------------- International CableTel, Inc.: 0%/10.875% Sr. Deferred Coupon Nts., 10/15/03 (8) 100,000 71,750 0%/12.75% Sr. Deferred Coupon Nts., 4/15/05 (8) 350,000 223,125 ------------------------------------------------------------------------------------------------------------------------- People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04 (8) 350,000 202,125 ------------------------------------------------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority 900,000 960,750 Debs., 12/1/07 ------------------------------------------------------------------------------------------------------------------------- TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07 (8) 1,000,000 606,250 ------------------------------------------------------------------------------------------------------------------------- TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 300,000 353,034
9 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ MEDIA (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ CABLE TELEVISION (CONTINUED) ------------------------------------------------------------------------------------------------------------------------- United International Holdings, Inc., Zero Coupon Sr. Sec. (3) $ 1,240,000 $ 775,000 Disc. Nts., 12.752%, 11/15/99 ----------------- 9,548,512 - ------------------------------------------------------------------------------------------------------------------------------------ DIVERSIFIED MEDIA - 3.2% ------------------------------------------------------------------------------------------------------------------------- Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series 750,000 802,500 A, 10/1/03 ------------------------------------------------------------------------------------------------------------------------- Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., (8) 1,000,000 675,000 6/1/04 ------------------------------------------------------------------------------------------------------------------------- GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10 (5) 479,871 578,845 ------------------------------------------------------------------------------------------------------------------------- Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 500,000 520,000 ------------------------------------------------------------------------------------------------------------------------- Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03 300,000 292,500 ------------------------------------------------------------------------------------------------------------------------- Panamsat LP/Panamsat Capital Corp.: 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (8) 1,250,000 1,031,250 9.75% Sr. Sec. Nts., 8/1/00 350,000 371,875 ----------------- 4,271,970 - ------------------------------------------------------------------------------------------------------------------------------------ ENTERTAINMENT/FILM - 1.2% ------------------------------------------------------------------------------------------------------------------------- Imax Corp., 7% Sr. Nts., 3/1/01 (13) 1,600,000 1,576,000 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER - 0.9% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ CONGLOMERATES - 0.6% ------------------------------------------------------------------------------------------------------------------------- MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96 750,000 757,500 - ------------------------------------------------------------------------------------------------------------------------------------ SERVICES - 0.3% ------------------------------------------------------------------------------------------------------------------------- Protection One, Inc., 0%/13.625% Sr. Disc. Nts., 6/30/05 (8) 500,000 405,000 - ------------------------------------------------------------------------------------------------------------------------------------ RETAIL - 2.6% - ------------------------------------------------------------------------------------------------------------------------------------ SPECIALTY RETAILING - 0.9% ------------------------------------------------------------------------------------------------------------------------- Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 630,000 589,050 ------------------------------------------------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 300,000 294,000 ------------------------------------------------------------------------------------------------------------------------- United Stationers Supply Co., 12.75% Sr. Sub. Nts., 5/1/05 300,000 325,500 ----------------- 1,208,550 - ------------------------------------------------------------------------------------------------------------------------------------ SUPERMARKETS - 1.7% ------------------------------------------------------------------------------------------------------------------------- Grand Union Co., 12% Sr. Nts., 9/1/04 1,500,000 1,305,000 ------------------------------------------------------------------------------------------------------------------------- Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03 (9) 533,800 519,491 ------------------------------------------------------------------------------------------------------------------------- Penn Traffic Co., 10.25% Sr. Nts., 2/15/02 400,000 383,000 ----------------- 2,207,491 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.6% - ------------------------------------------------------------------------------------------------------------------------------------ AIR TRANSPORTATION - 0.9% ------------------------------------------------------------------------------------------------------------------------- American International Group, Inc., 11.70% Unsec. Unsub. ITL 690,000,000 458,326 Bonds, 12/4/01 ------------------------------------------------------------------------------------------------------------------------- Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02 750,000 768,750 ----------------- 1,227,076 - ------------------------------------------------------------------------------------------------------------------------------------ RAILROADS - 1.1% ------------------------------------------------------------------------------------------------------------------------- Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. (8) 2,200,000 1,463,000 Disc. Nts., Series B, 12/15/03 - ------------------------------------------------------------------------------------------------------------------------------------ SHIPPING - 0.6% ------------------------------------------------------------------------------------------------------------------------- Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 750,000 783,750
10 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 14.6% - ------------------------------------------------------------------------------------------------------------------------------------ ELECTRIC UTILITIES - 2.5% ------------------------------------------------------------------------------------------------------------------------- California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04 (8) $ 1,000,000 $ 947,500 ------------------------------------------------------------------------------------------------------------------------- El Paso Electric Co.: 10.75% Lease Obligation Bonds, 4/1/13 (10) 250,000 169,683 9.375% Lease Obligation Bonds, 10/1/96 (10) 100,000 67,761 ------------------------------------------------------------------------------------------------------------------------- First PV Funding Corp., 10.15% Lease Obligation Bonds, 500,000 515,685 Series 1986B, 1/15/16 ------------------------------------------------------------------------------------------------------------------------- First PV Funding Corp., 10.30% Lease Obligation Bonds, 1,000,000 1,021,561 Series 1986A, 1/15/14 ------------------------------------------------------------------------------------------------------------------------- Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08 672,413 642,155 ----------------- 3,364,345 - ------------------------------------------------------------------------------------------------------------------------------------ TELECOMMUNICATIONS - 12.1% ------------------------------------------------------------------------------------------------------------------------- A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05 750,000 759,375 ------------------------------------------------------------------------------------------------------------------------- Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04 (5) (8) 1,500,000 1,065,000 ------------------------------------------------------------------------------------------------------------------------- Cellular Communications International, Inc.: Units (each unit consists of $1,000 principal amount of zero (12) 200,000 126,000 coupon sr. disc. nts., 8/15/00 and one warrant to purchase 1.126 shares of common stock) Zero Coupon Sr. Disc. Nts., 12.844%, 8/15/00 (3) 2,250,000 1,355,625 ------------------------------------------------------------------------------------------------------------------------- Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (8) 2,000,000 1,602,500 ------------------------------------------------------------------------------------------------------------------------- Cencall Communications Corp., 0%/10.125% Sr. Disc. Nts., (8) 1,000,000 565,000 1/15/04 ------------------------------------------------------------------------------------------------------------------------- Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.889%, (3) 850,000 656,625 3/5/00 ------------------------------------------------------------------------------------------------------------------------- Comunicacion Celular SA, Units (each unit consists of $1,000 (5)(8)(12) 750,000 427,500 principal 0%/13.125% sr. deferred coupon bond, 11/15/03 and one warrant to purchase 12,860 shares of common stock at $1.32 per 1,000 shares) ------------------------------------------------------------------------------------------------------------------------- Geotek Communications, Inc., 0%/15% Sr. Sec. Disc. Nts., (8) 1,750,000 796,250 7/15/05 ------------------------------------------------------------------------------------------------------------------------- GST Telecommunications, Inc., Units (each unit consists of (5)(8)(12) 1,305,000 681,500 eight 0%/13.875% sr. disc. nts., 12/15/05 and one 0%/13.875% cv. sr. sub. disc. nt., 12/15/05) ------------------------------------------------------------------------------------------------------------------------- Horizon Cellular Telephone LP/Horizon Finance Corp., (8) 1,800,000 1,539,000 0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 ------------------------------------------------------------------------------------------------------------------------- In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02 (8) 950,000 318,250 ------------------------------------------------------------------------------------------------------------------------- IntelCom Group (USA), Inc., 0%/13.50% Sr. Disc. Nts., 9/15/05 (5)(8) 1,800,000 1,039,500 ------------------------------------------------------------------------------------------------------------------------- MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (8) 1,250,000 1,006,250 ------------------------------------------------------------------------------------------------------------------------- Nextel Communications, Inc., 0%/11.50% Sr. Disc. Nts., 9/1/03 (8) 1,400,000 866,250 ------------------------------------------------------------------------------------------------------------------------- Omnipoint Corp., Units (each unit represents $1,000 (5)(9)(12) 750,000 743,925 principal amount of 10% cv. sub. nts., 11/29/00 and one warrant to purchase a share of common stock) ------------------------------------------------------------------------------------------------------------------------- PriCellular Wireless Corp.: 0%/12.25% Sr. Sub. Disc. Nts., 10/1/03 (8) 500,000 388,750 0%/14% Sr. Sub. Disc. Nts., 11/15/01 (8) 2,000,000 1,760,000
11 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ TELECOMMUNICATIONS (CONTINUED) ------------------------------------------------------------------------------------------------------------------------- WinStar Communications, Inc., Units (each unit consists of (5)(8)(12) $ 300,000 $ 475,500 two $1,000 principal amount of 0%/14% sr. disc. nts.,10/15/05 and one cv. sr. sub. disc. nts., 10/15/05) ----------------- 16,172,800 ----------------- Total Corporate Bonds and Notes (Cost $84,569,662) 87,849,449 SHARES - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 1.4% - ------------------------------------------------------------------------------------------------------------------------------------ American Telecasting, Inc. (14) 6,800 98,600 ------------------------------------------------------------------------------------------------------------------------- Berg Electronics Corp. (5) 46,220 277,320 ------------------------------------------------------------------------------------------------------------------------- Celcaribe SA (5)(14) 203,250 241,868 ------------------------------------------------------------------------------------------------------------------------- ECM Fund, L.P.I. (7) 150 150,000 ------------------------------------------------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A 6,000 109,125 ------------------------------------------------------------------------------------------------------------------------- Equitable Bag, Inc. (14) 3,723 9,307 ------------------------------------------------------------------------------------------------------------------------- Gillett Holdings, Inc., Cl. 2 (7)(14) 10,355 207,100 ------------------------------------------------------------------------------------------------------------------------- Grand Union Co. (14) 26,511 198,832 ------------------------------------------------------------------------------------------------------------------------- Gulfstream Holding, Inc. 56 -- ------------------------------------------------------------------------------------------------------------------------- Gulfstream Housing Corp. 27,850 -- ------------------------------------------------------------------------------------------------------------------------- Kash 'N Karry Food Stores, Inc. (14) 11,292 296,415 ------------------------------------------------------------------------------------------------------------------------- Triangle Wire & Cable, Inc. (7) 21,111 21,111 ------------------------------------------------------------------------------------------------------------------------- United International Holdings, Inc., Cl. A (14) 9,000 132,750 ------------------------------------------------------------------------------------------------------------------------- Walter Industries, Inc. (14) 4,837 63,486 ----------------- Total Common Stocks (Cost $1,554,075) 1,805,914 - ------------------------------------------------------------------------------------------------------------------------------------ PREFERRED STOCKS - 5.2% - ------------------------------------------------------------------------------------------------------------------------------------ BankAmerica Corp., 8.375%, Series K 13,000 336,375 ------------------------------------------------------------------------------------------------------------------------- Berg Electronics Corp., $3.3438, Series E (9) 14,035 392,980 ------------------------------------------------------------------------------------------------------------------------- Cablevision Systems Corp., 8.50% Cum. Cv., Series I 20,000 545,000 ------------------------------------------------------------------------------------------------------------------------- California Federal Bank, 10.625% Non-Cum., Series B 7,000 759,500 ------------------------------------------------------------------------------------------------------------------------- Fidelity Federal Bank, 12% Non-Cum. Exchangeable Perpetual 20,000 507,500 Preferred Stock, Series A ------------------------------------------------------------------------------------------------------------------------- First Nationwide Bank, 11.50% Non-Cum. 8,500 955,188 ------------------------------------------------------------------------------------------------------------------------- Glendale Federal Bank, F.S.B., 8.75% Non-Cum. Cv., Series E 16,500 746,625 ------------------------------------------------------------------------------------------------------------------------- J. Ray McDermott, SA 10,965 195,999 ------------------------------------------------------------------------------------------------------------------------- K-III Communications Corp., $11.625 Exchangeable, Series B (9) 7,511 747,365 ------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum Corp., 8.255% Provisionally Redeemable 6,000 77,250 Income Debt Exchangeable for Stock ------------------------------------------------------------------------------------------------------------------------- Navistar International Corp., $6.00 Cv., Series G 2,500 135,625 ------------------------------------------------------------------------------------------------------------------------- Pantry Pride, Inc., $14.875 Exchangeable, Series B 2,000 207,000 ------------------------------------------------------------------------------------------------------------------------- Prime Retail, Inc., $19.00 Cv., Series B 17,000 301,750 ------------------------------------------------------------------------------------------------------------------------- SDW Holdings Corp., Units (each unit consists of ten shares (5)(12) 3,750 1,087,500 of sr. exchangeable preferred stock and one cl. B warrant to purchase one share of common stock) ----------------- Total Preferred Stocks (Cost $6,311,457) 6,995,657
12 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
MARKET VALUE UNITS (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ RIGHTS, WARRANTS AND CERTIFICATES - 0.6% - ------------------------------------------------------------------------------------------------------------------------------------ American Telecasting, Inc. Wts., Exp. 6/99 6,000 $ 36,000 ------------------------------------------------------------------------------------------------------------------------- Ames Department Stores, Inc.: Excess Cash Flow Payment Certificates, Series AG-7A (7) 12,400 124 Litigation Trust (7) 39,658 397 ------------------------------------------------------------------------------------------------------------------------- Capital Gaming International, Inc. Wts., Exp. 2/99 21,112 211 ------------------------------------------------------------------------------------------------------------------------- Casino America, Inc. Wts., Exp. 11/96 1,631 163 ------------------------------------------------------------------------------------------------------------------------- Cellular Communications International, Inc. Wts., Exp. 8/03 2,250 50,625 ------------------------------------------------------------------------------------------------------------------------- Digicon, Inc. Wts., Exp. 7/96 1,566 98 ------------------------------------------------------------------------------------------------------------------------- Eye Care Centers of America, Inc. Wts., Exp. 10/03 (5) 630 3,150 ------------------------------------------------------------------------------------------------------------------------- Foamex LP/JPS Automotive Corp. Wts., Exp. 7/99 500 2,500 ------------------------------------------------------------------------------------------------------------------------- Gaylord Container Corp. Wts., Exp. 7/96 26,410 198,075 ------------------------------------------------------------------------------------------------------------------------- Geotek Communications, Inc. Wts., Exp. 7/05 (5) 52,500 105,000 ------------------------------------------------------------------------------------------------------------------------- Icon Health & Fitness, Inc. Wts., Exp. 11/99 (5) 400 10,000 ------------------------------------------------------------------------------------------------------------------------- In-Flight Phone Corp. Wts., Exp. 8/02 (5) 950 -- ------------------------------------------------------------------------------------------------------------------------- IntelCom Group, Inc. Wts., Exp. 9/05 (5) 5,940 23,760 ------------------------------------------------------------------------------------------------------------------------- Jewel Recovery LP, Participation Units of Limited Partners' Interest 2,360 -- ------------------------------------------------------------------------------------------------------------------------- People's Choice TV Corp. Wts., Exp. 6/00 350 3,500 ------------------------------------------------------------------------------------------------------------------------- Protection One, Inc. Wts.: Exp. 11/03 28,000 276,500 Exp. 6/05 1,600 7,200 ------------------------------------------------------------------------------------------------------------------------- Southland Corp. Wts., Exp. 3/96 400 500 ------------------------------------------------------------------------------------------------------------------------- Terex Corp. Rts., Exp. 7/96 (5) 744 37 ------------------------------------------------------------------------------------------------------------------------- Trizec Corp. Wts., Exp. 7/99 CAD 3,970 4,134 ------------------------------------------------------------------------------------------------------------------------- UGI Corp. Wts., Exp. 3/98 6,000 300 ------------------------------------------------------------------------------------------------------------------------- United International Securities Ltd. Wts., Exp. 11/99 1,440 41,130 ---------------- Total Rights, Warrants and Certificates (Cost $308,096) 763,404 DATE STRIKE CONTRACTS - ------------------------------------------------------------------------------------------------------------------------------------ PUT OPTIONS PURCHASED - 0.0% - ------------------------------------------------------------------------------------------------------------------------------------ Morocco (Kingdom of) Loan Participation Agreement, Tranche Jan. $60.25 1,000 1 A, 6.594%, 1/1/09, Put Opt. (Cost $19,000) PRINCIPAL AMOUNT (1) - ------------------------------------------------------------------------------------------------------------------------------------ STRUCTURED INSTRUMENTS - 0.9% - ------------------------------------------------------------------------------------------------------------------------------------ Goldman, Sachs & Co. Argentina Local Market Securities (7) $ 782,608 765,000 Trust, 11.30%, 4/1/00 (representing debt of Argentina (Republic of) Bonos del Tesoro Bonds, Series 10, 5.742%, 4/1/00 and an interest rate swap between Goldman Sachs and the Trust) ------------------------------------------------------------------------------------------------------------------------- Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked (3) 200,000 197,000 Nts., 11.318%, 2/15/96 (indexed to the Nota Do Tesouro Nacional, Zero Coupon, 2/15/96) ------------------------------------------------------------------------------------------------------------------------- United Mexican States, Linked Nts. (indexed to the greater (5) 300,000 305,475 of Cetes Option Amount or USD LIBOR Option Amount, 11/27/96) ---------------- Total Structured Instruments (Cost $1,279,946) 1,267,475
13 OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND Statement of Investments (Continued) DECEMBER 31, 1995
PRINCIPAL MARKET VALUE AMOUNT (1) (NOTE 1) - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE AGREEMENT - 2.1% - ------------------------------------------------------------------------------------------------------------------------------------ Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95, to be repurchased at $2,781,822 on 1/2/96, collateralized by U.S. Treasury Nts., 6.875%, 8/31/99, with a value of $993,387, and U.S. Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with a value of $1,871,730 (Cost $2,780,000) $ 2,780,000 $ 2,780,000 ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $125,812,139) 98.6% 131,522,956 ------------------------------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 1.4 1,927,824 ------------------ ---------------- NET ASSETS 100.0% 133,450,780 =================== =================
1. Face amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD - Australian Dollar ITL - Italian Lira CAD - Canadian Dollar JPY - Japanese Yen DEM - German Deutsche Mark NLG - Netherlands Guilder DKK - Danish Krone NOK - Norwegian Krone ESP - Spanish Peseta NZD - New Zealand Dollar FRF - French Franc PLZ - Polish Zloty GBP - British Pound Sterling PTE - Portuguese Escudo HUF - Hungarian Forint SEK - Swedish Krona IDR - Indonesian Rupiah THB - Thai Baht IEP - Irish Punt 2. Indexed instrument for which the principal amount and/or interest due at maturity is affected by the relative value of a foreign currency. 3. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 4. Represents the current interest rate for a variable rate security. 5. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $10,828,494 or 8.11% of the Fund's net assets, at December 31, 1995. 6. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
Principal Subject Expiration Exercise Premium Market Value To Call Date Price Received See Note 1 ------------------------------------------------------------------------------------------------------------------- Bulgaria (Republic of) Interest Arrears Bonds, 6.75%, 7/28/11 100,000 1/96 $45 $1,430 $1,390
7. Identifies issues considered to be illiquid - See Note 7 of Notes to Financial Statements. 8. Denotes a step bond: a zero coupon bond that converts to a fixed rate of interest at a designated future date. 9. Interest or dividend is paid in kind. 10. Non-income producing--issuer is in default of interest payment. 11. Partial interest payment received. 12. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. 13. Represents the current interest rate for an increasing rate security. 14. Non-income producing security. See accompanying Notes to Financial Statements. 14 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments December 31, 1995
Principal Market Value Amount(1) (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Certificates of Deposit - 1.9% - ------------------------------------------------------------------------------------------------------------------------------------ Citibank CD: 19%, 1/19/96 (2) IDR 2,853,750,000 $ 1,248,126 27.40%, 3/22/96 (2) HUF 139,510,000 1,021,112 - ------------------------------------------------------------------------------------------------------------------------------------ Indonesia (Republic of) Bank Negara CD, Zero Coupon, 15.914%, 6/17/96 (2)(3) IDR 2,000,000,000 805,011 - ------------------------------------------------------------------------------------------------------------------------------------ Krungthai Thanakit CD, Zero Coupon, 11.533%, 2/29/96 (2)(3) THB 25,000,000 968,966 ----------------- Total Certificates of Deposit (Cost $4,063,089) 4,043,215 - ------------------------------------------------------------------------------------------------------------------------------------ Mortgage-Backed Obligations - 18.3% - ------------------------------------------------------------------------------------------------------------------------------------ Government Agency - 11.5% - ------------------------------------------------------------------------------------------------------------------------------------ FHLMC/FNMA/Sponsored - 7.7% ------------------------------------------------------------------------------------------------------------------------------ Federal National Mortgage Assn.: 7%, 11/1/25 1,888,319 1,903,653 7%, 11/1/25 7,990,664 8,055,548 Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates, 8.75% 11/25/05 3,000,000 3,262,500 Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates, 10.40%, 4/25/19 2,000,000 2,193,120 Interest-Only Stripped Mtg.-Backed Security, Trust 257, Cl. 2, 11.79%, 2/1/24 (4) 2,638,404 739,990 ----------------- 16,154,811 - ------------------------------------------------------------------------------------------------------------------------------------ GNMA/Guaranteed - 3.8% ------------------------------------------------------------------------------------------------------------------------------ Government National Mortgage Assn.: 6%, 10/20/25 4,986,569 5,036,435 6%, 10/20/24 2,939,612 3,009,429 ----------------- 8,045,864 - ------------------------------------------------------------------------------------------------------------------------------------ Private - 6.8% - ------------------------------------------------------------------------------------------------------------------------------------ Commercial - 3.1% ------------------------------------------------------------------------------------------------------------------------------ FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass- Through Certificates, Series 1994-C1: Cl. 2-D, 8.70%, 9/25/25 (5) 1,500,000 1,617,187 Cl. 2-E, 8.70%, 9/25/25 (5) 1,500,000 1,604,531 ------------------------------------------------------------------------------------------------------------------------------ Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through Certificates, Series 1995-C2, Cl. C, 7.70%, 6/15/21 (6) 993,670 1,025,033 ------------------------------------------------------------------------------------------------------------------------------ Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates: Series 1992-CHF, Cl. C, 8.25%, 12/25/20 1,053,588 1,079,599 Series 1992-CHF, Cl. E, 8.25%, 12/25/20 931,256 913,795 Series 1994-C1, Cl. A, 7.25%, 6/25/26 302,117 301,740 ----------------- 6,541,885 - ------------------------------------------------------------------------------------------------------------------------------------ Multi-Family - 3.7% ------------------------------------------------------------------------------------------------------------------------------ Countrywide Funding Corp., Series 1993-12, Cl. Bl, 1,000,000 942,500 6.625%, 2/25/24
15 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Mortgage-Backed Obligations (Continued) Amount(1) (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Private (Continued) - ------------------------------------------------------------------------------------------------------------------------------------ Multi-Family (Continued) ------------------------------------------------------------------------------------------------------------------------------ Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates: Series 1991-M5, Cl. A, 9%, 3/25/17 $ 2,295,071 $ 2,429,907 Series 1994-C1, Cl. C, 8%, 6/25/26 1,500,000 1,603,594 Series 1995-C1, Cl. D, 6.90%, 2/25/27 3,000,000 2,865,000 ----------------- 7,841,001 ----------------- Total Mortgage-Backed Obligations (Cost $37,340,024) 38,583,561 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. Government Obligations - 40.3% - ------------------------------------------------------------------------------------------------------------------------------------ Treasury - 40.3% - ------------------------------------------------------------------------------------------------------------------------------------ U.S. Treasury Bonds: 6.875%, 8/15/25 8,000,000 9,027,495 7.125%, 2/15/23 3,000,000 3,427,500 8%, 11/15/21 5,000,000 6,259,375 ------------------------------------------------------------------------------------------------------------------------------ U.S. Treasury Nts.: 6%, 12/31/97 3,000,000 3,047,811 6.25%, 5/31/00 10,000,000 10,343,750 6.375%, 6/30/97 1,000,000 1,017,187 6.50%, 5/15/05-8/15/05 18,000,000 19,182,809 6.875%, 3/31/00 5,000,000 5,289,065 7.25%, 5/15/04-8/15/04 7,000,000 7,787,812 7.375%, 11/15/97 2,000,000 2,076,250 7.50%, 2/15/05 5,000,000 5,676,559 7.75%, 12/31/99-1/31/00 6,000,000 6,519,374 7.875%, 6/30/96-11/15/04 3,000,000 3,329,999 9.25%, 8/15/98 2,000,000 2,193,124 ----------------- Total U.S. Government Obligations (Cost $79,215,729) 85,178,110 - ------------------------------------------------------------------------------------------------------------------------------------ Foreign Government Obligations - 13.9% - ------------------------------------------------------------------------------------------------------------------------------------ Australia (Commonwealth of) Bonds, 12.50%, 1/15/98 AUD 960,000 782,889 ------------------------------------------------------------------------------------------------------------------------------ Canada (Government of) Bonds: 7.75%, 9/1/99 CAD 347,000 266,514 Series A-76, 9%, 6/1/25 CAD 321,000 274,798 ------------------------------------------------------------------------------------------------------------------------------ Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds, 6.875%, 7/1/01 (6)(7) 1,714,400 1,594,392 ------------------------------------------------------------------------------------------------------------------------------ Corporacion Andina de Fomento Sr. Unsec. Debs.: 6.625%, 10/14/98 (5) 1,000,000 999,375 7.25%, 4/30/98 (5) 1,000,000 998,125 ------------------------------------------------------------------------------------------------------------------------------ Denmark (Kingdom of) Bonds: 7%, 11/10/24 DKK 6,300,000 1,014,039 8%, 3/15/06 DKK 1,880,000 357,728 ------------------------------------------------------------------------------------------------------------------------------ Financiera Energetica Nacional: Nts., 6.625%, 12/13/96 2,350,000 2,347,062 SA Medium-Term Nts., 9%, 11/8/99 400,000 419,500 ------------------------------------------------------------------------------------------------------------------------------ France (Government of) Obligation Assimilable du Tresor Debs., 9.50%, 6/25/98 FRF 1,196,000 267,600
16 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Foreign Government Obligations (Continued) Amount(1) (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Germany (Republic of) Bonds: 7.75%, 10/1/04 DEM $ 5,350,000 $ 4,106,853 Series 94, 6.25%, 1/4/24 DEM 2,900,000 1,887,370 ------------------------------------------------------------------------------------------------------------------------------ International Bank for Reconstruction and Development Bonds, 12.50%, 7/25/97 NZD 1,000,000 696,248 ------------------------------------------------------------------------------------------------------------------------------ Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali, 10.50%, 4/1/00 ITL 4,515,000,000 2,872,821 ------------------------------------------------------------------------------------------------------------------------------ National Treasury Management Agency (Irish Government) Bonds, 8%, 10/18/00 IEP 405,000 682,226 ------------------------------------------------------------------------------------------------------------------------------ New Zealand (Republic of) Bonds, 10%, 7/15/97 NZD 1,720,000 1,155,621 ------------------------------------------------------------------------------------------------------------------------------ Norwegian Government Bonds, 9.50%, 10/31/02 NOK 11,340,000 2,124,639 ------------------------------------------------------------------------------------------------------------------------------ Poland (Republic of) Debs., 7.75%, 7/13/00 1,500,000 1,530,000 ------------------------------------------------------------------------------------------------------------------------------ Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio Prazo, 11.875%, 2/23/00 PTE 65,000,000 468,838 ------------------------------------------------------------------------------------------------------------------------------ South Africa (Republic of) Debs., 9.625%, 12/15/99 1,000,000 1,082,500 ------------------------------------------------------------------------------------------------------------------------------ Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%, 3/25/00 ESP 156,000,000 1,405,755 ------------------------------------------------------------------------------------------------------------------------------ Sweden (Kingdom of) Bonds, Series 1028, 11%, 1/21/99 SEK 4,400,000 714,422 ------------------------------------------------------------------------------------------------------------------------------ United Kingdom Treasury: Debs., 8.50%, 12/7/05 GBP 337,000 562,305 Nts., 10%, 2/26/01 GBP 310,000 544,176 ------------------------------------------------------------------------------------------------------------------------------ Western Australia Treasury Corp. Gtd. Bonds, Series 98, 12.50%, 4/1/98 AUD 200,000 164,222 ----------------- Total Foreign Government Obligations (Cost $28,915,289) 29,320,018 - ------------------------------------------------------------------------------------------------------------------------------------ Municipal Bonds and Notes - 0.9% - ------------------------------------------------------------------------------------------------------------------------------------ Pinole, California Redevelopment Agency Tax Allocation Taxable Bonds, Pinole Vista Redevelopment, Series B, 8.35%, 8/1/17 670,000 733,429 ------------------------------------------------------------------------------------------------------------------------------ Dade County, Florida Educational Facilities Authority: Exchangeable Revenue Bonds, University of Miami Prerefunded, MBIA Insured, 7.65%, 4/1/10 175,000 201,294 Revenue Bonds, University of Miami, MBIA Insured, 7.65% 4/1/10 205,000 230,154 Taxable Exchange Revenue Bonds, University of Miami, MBIA Insured, 9.70%, 4/1/10 120,000 134,724 ------------------------------------------------------------------------------------------------------------------------------ Port of Portland, Oregon Special Obligation Taxable Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 500,000 546,886 ----------------- Total Municipal Bonds and Notes (Cost $1,663,728) 1,846,487 - ------------------------------------------------------------------------------------------------------------------------------------ Corporate Bonds and Notes - 16.9% - ------------------------------------------------------------------------------------------------------------------------------------ Basic Industry - 2.7% - ------------------------------------------------------------------------------------------------------------------------------------ Chemicals - 1.2% ------------------------------------------------------------------------------------------------------------------------------ Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 2,100,000 2,389,670 - ------------------------------------------------------------------------------------------------------------------------------------ Paper - 1.5% ------------------------------------------------------------------------------------------------------------------------------ Boise Cascade Corp., 9.90% Nts., 3/15/00 750,000 850,994 ------------------------------------------------------------------------------------------------------------------------------ Noranda Forest, Inc., 11% Debs., 7/15/98 CAD 1,000,000 805,629
17 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Basic Industry (Continued) - ------------------------------------------------------------------------------------------------------------------------------------ Chemicals (Continued) ------------------------------------------------------------------------------------------------------------------------------ Scotia Pacific Holding Co., 7.95% Timber Collateralized Nts., 7/20/15 $ 1,546,483 $ 1,571,753 ----------------- 3,228,376 - ------------------------------------------------------------------------------------------------------------------------------------ Consumer Related - 2.6% - ------------------------------------------------------------------------------------------------------------------------------------ Food/Beverages/Tobacco - 0.8% ------------------------------------------------------------------------------------------------------------------------------ Dr. Pepper/Seven-Up Cos., Inc., 0%/11.50% Sr. Sub. Disc. Nts., 11/1/02 (8) 1,315,000 1,239,388 ------------------------------------------------------------------------------------------------------------------------------ Philip Morris Cos., Inc., 8.875% Nts., 7/1/96 500,000 507,702 ----------------- 1,747,090 - ------------------------------------------------------------------------------------------------------------------------------------ Healthcare - 0.6% ------------------------------------------------------------------------------------------------------------------------------ R.P. Scherer Corp., 6.75% Sr. Nts., 2/1/04 1,250,000 1,189,530 - ------------------------------------------------------------------------------------------------------------------------------------ Hotel/Gaming - 0.2% ------------------------------------------------------------------------------------------------------------------------------ Circus Circus Enterprises, Inc., 6.75% Nts., 7/15/03 375,000 379,439 - ------------------------------------------------------------------------------------------------------------------------------------ Textile/Apparel - 0.5% ------------------------------------------------------------------------------------------------------------------------------ Fruit of the Loom, Inc., 7% Debs., 3/15/11 1,097,000 1,108,417 - ------------------------------------------------------------------------------------------------------------------------------------ Toys - 0.5% ------------------------------------------------------------------------------------------------------------------------------ Mattel, Inc., 6.875% Sr. Nts., 8/1/97 1,000,000 1,017,927 - ------------------------------------------------------------------------------------------------------------------------------------ Energy - 3.3% - ------------------------------------------------------------------------------------------------------------------------------------ BP America, Inc., 10.875% Nts., 8/1/01 CAD 650,000 551,957 ------------------------------------------------------------------------------------------------------------------------------ Coastal Corp.: 11.75% Sr. Debs., 6/15/06 2,000,000 2,126,614 9.75% Sr. Debs., 8/1/03 200,000 238,950 ------------------------------------------------------------------------------------------------------------------------------ Enron Corp., 9.875% Debs., 6/15/03 375,000 457,052 ------------------------------------------------------------------------------------------------------------------------------ McDermott, Inc., 9.375% Nts., 3/15/02 400,000 454,472 ------------------------------------------------------------------------------------------------------------------------------ Mitchell Energy & Development Corp., 9.25% Sr. Nts. 1/15/02 1,000,000 1,146,689 ------------------------------------------------------------------------------------------------------------------------------ Sonat, Inc., 9.50% Nts., 8/15/99 250,000 278,659 ------------------------------------------------------------------------------------------------------------------------------ Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 500,000 585,022 ------------------------------------------------------------------------------------------------------------------------------ Tenneco, Inc.: 10% Debs., 3/15/08 400,000 497,656 7.875% Nts., 10/1/02 650,000 709,766 ----------------- 7,046,837 - ------------------------------------------------------------------------------------------------------------------------------------ Financial Services - 1.7% - ------------------------------------------------------------------------------------------------------------------------------------ Banks & Thrifts - 1.0% ------------------------------------------------------------------------------------------------------------------------------ Banco Ganadero SA, Zero Coupon Sr. Unsub. Unsec. Nts. 9.931%, 6/15/96 (3)(5) 500,000 479,040 ------------------------------------------------------------------------------------------------------------------------------ BankAmerica Corp., 7.50% Sr. Nts., 3/15/97 100,000 102,362 ------------------------------------------------------------------------------------------------------------------------------ Chemical New York Corp., 9.75% Sub. Capital Nts., 6/15/99 200,000 224,742 ------------------------------------------------------------------------------------------------------------------------------ First Chicago Corp.: 11.25% Sub. Nts., 2/20/01 750,000 923,495 9% Sub. Nts., 6/15/99 150,000 165,177 ------------------------------------------------------------------------------------------------------------------------------ First Chicago NBD Bancorp, 7.25% Sub. Debs., 8/15/04 165,000 176,247 ------------------------------------------------------------------------------------------------------------------------------ First Fidelity Bancorporation, 8.50% Sub. Capital Nts., 4/1/98 100,000 105,456 ----------------- 2,176,519 - ------------------------------------------------------------------------------------------------------------------------------------ Diversified Financial - 0.7% ------------------------------------------------------------------------------------------------------------------------------ American Car Line Co., 8.25% Equipment Trust Certificates, Series 1993-A, 4/15/08 627,000 659,134
18 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Financial Services (Continued) - ------------------------------------------------------------------------------------------------------------------------------------ Diversified Financial (Continued) ------------------------------------------------------------------------------------------------------------------------------ Lehman Brothers Holdings, Inc., 8.375% Nts., 2/15/99 $ 700,000 $ 744,198 ----------------- 1,403,332 - ------------------------------------------------------------------------------------------------------------------------------------ Manufacturing - 0.9% - ------------------------------------------------------------------------------------------------------------------------------------ Automotive - 0.9% ------------------------------------------------------------------------------------------------------------------------------ Chrysler Corp., 10.95% Debs., 8/1/17 800,000 898,110 ------------------------------------------------------------------------------------------------------------------------------ General Motors Acceptance Corp.: 5.50% Nts., 12/15/01 300,000 289,647 7.75% Nts., 4/15/97 700,000 713,318 ----------------- 1,901,075 - ------------------------------------------------------------------------------------------------------------------------------------ Media - 3.9% - ------------------------------------------------------------------------------------------------------------------------------------ Cable Television - 2.2% ------------------------------------------------------------------------------------------------------------------------------ Time Warner Entertainment LP/Time Warner, Inc., 8.375% Sr. Debs., 3/15/23 1,850,000 2,009,405 ------------------------------------------------------------------------------------------------------------------------------ TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 2,200,000 2,588,914 ----------------- 4,598,319 - ------------------------------------------------------------------------------------------------------------------------------------ Diversified Media - 1.3% ------------------------------------------------------------------------------------------------------------------------------ GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10 (5) 1,151,691 1,389,228 ------------------------------------------------------------------------------------------------------------------------------ News America Holdings, Inc.: 10.125% Gtd. Sr. Debs., 10/15/12 500,000 608,130 12% Sr. Nts., 12/15/01 500,000 558,673 ------------------------------------------------------------------------------------------------------------------------------ Time Warner, Inc., 9.15% Debs., 2/1/23 300,000 342,093 ----------------- 2,898,124 - ------------------------------------------------------------------------------------------------------------------------------------ Entertainment/Film - 0.4% ------------------------------------------------------------------------------------------------------------------------------ Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub. Nts., 2/1/98 500,000 541,242 ------------------------------------------------------------------------------------------------------------------------------ Eastman Kodak Co., 10% Nts., 6/15/01 250,000 254,730 ----------------- 795,972 - ------------------------------------------------------------------------------------------------------------------------------------ Retail - 0.3% - ------------------------------------------------------------------------------------------------------------------------------------ Drug Stores - 0.3% ------------------------------------------------------------------------------------------------------------------------------ Hook-SupeRx, Inc., 10.125% Sr. Nts., 6/1/02 600,000 657,191 - ------------------------------------------------------------------------------------------------------------------------------------ Transportation - 0.2% - ------------------------------------------------------------------------------------------------------------------------------------ Railroads - 0.2% ------------------------------------------------------------------------------------------------------------------------------ Union Pacific Corp., 9.65% Medium-Term Nts., 4/17/00 400,000 455,554 - ------------------------------------------------------------------------------------------------------------------------------------ Utilities - 1.3% - ------------------------------------------------------------------------------------------------------------------------------------ Electric Utilities - 1.0% ------------------------------------------------------------------------------------------------------------------------------ Commonwealth Edison Co., 6.50% Nts., 7/15/97 775,000 779,528 ------------------------------------------------------------------------------------------------------------------------------ Long Island Lighting Co., 7% Nts., 3/1/04 150,000 144,552 ------------------------------------------------------------------------------------------------------------------------------ New Zealand Electric Corp., 10% Debs., 6/15/9 NZD 650,000 426,765 ------------------------------------------------------------------------------------------------------------------------------ Public Service Co. of Colorado, 8.75% First Mtg. Bonds, 3/1/22 750,000 852,330 ----------------- 2,203,175 - ------------------------------------------------------------------------------------------------------------------------------------ Telecommunications - 0.3% ------------------------------------------------------------------------------------------------------------------------------ GTE Corp., 9.375% Debs., 12/1/00 500,000 567,703 ----------------- Total Corporate Bonds and Notes (Cost $34,673,470) 35,764,250
19 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) - ------------------------------------------------------------------------------------------------------------------------------------ Preferred Stocks - 0.5% - ------------------------------------------------------------------------------------------------------------------------------------ Atlantic Richfield Co., 9% Exchangeable Notes for Common Stock of Lyondell Petrochemical Co., 9/15/97 $ 15,000 $ 352,500 ------------------------------------------------------------------------------------------------------------------------------ BankAmerica Corp., 8.375%, Series K 25,000 646,875 ----------------- Total Preferred Stocks (Cost $1,076,533) 999,375 Principal Amount(1) - ------------------------------------------------------------------------------------------------------------------------------------ Structured Instruments - 0.5% - ------------------------------------------------------------------------------------------------------------------------------------ Merrill Lynch & Co., Inc. Units, 9.75%, 6/15/99 (representing debt of Chemical Banking Corp., sub. capital nts., and equity of Citicorp, 7.75% preferred, series 22) (Cost $1,100,540) (7)(9) $ 1,000,000 1,151,000 - ------------------------------------------------------------------------------------------------------------------------------------ Repurchase Agreement - 4.0% - ------------------------------------------------------------------------------------------------------------------------------------ Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $8,505,572 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $4,613,862, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $2,796,111, and U.S. Treasury Bills maturing 11/14/96, with a value of $1,267,996 (Cost $8,500,000) 8,500,000 8,500,000 - ------------------------------------------------------------------------------------------------------------------------------------ Total Investments, at Value (Cost $196,548,402) 97.2% 205,386,016 - ------------------------------------------------------------------------------------------------------------------------------------ Other Assets Net of Liabilities 2.8 5,845,754 -------------- ----------------- Net Assets 100.0% $ 211,231,770 ============== =================
1. Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD - Australian Dollar IDR - Indonesian Rupiah CAD - Canadian Dollar IEP - Irish Punt DEM - German Deutsche Mark ITL - Italian Lira DKK - Danish Krone NOK - Norwegian Krone ESP - Spanish Peseta NZD - New Zealand Dollar FRF - French Franc PTE - Portuguese Escudo GBP - British Pound Sterling SEK - Swedish Krona HUF - Hungarian Forint THB - Thai Baht 2. Indexed instrument for which the principal amount and/or interest due at maturity is affected by the relative value of a foreign currency. 3. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 4. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed-income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. 20 Oppenheimer Variable Account Funds - Oppenheimer Bond Fund Statement of Investments (Continued) December 31, 1995 - -------------------------------------------------------------------------------- 5. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $7,087,486 or 3.36% of the Fund's net assets, at December 31, 1995. 6. Represents the current interest rate for a variable rate security. 7. Identifies issues considered to be illiquid - See Note 7 of Notes to Financial Statements. 8. Denotes a step bond: a zero coupon bond that converts to a fixed rate of interest at a designated future date. 9. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. See accompanying Notes to Financial Statements. 21 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments December 31, 1995
Principal Market Value Amount (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Convertible Corporate Bonds and Notes - 1.1% - ----------------------------------------------------------------------------------------------------------------------------------- Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02 $ 800,000 $ 1,122,000 ----------------------------------------------------------------------------------------------------------------------------- PerSeptive Biosystems, Inc., 8.25% Cv. Sub. Debs., 8/15/01 (1) 850,000 709,750 ----------------------------------------------------------------------------------------------------------------------------- Telxon Corp., 5.75% Cv. Debs., 1/1/03 (1) 1,500,000 1,627,500 ---------------- Total Convertible Corporate Bonds and Notes (Cost $3,150,000) 3,459,250 Shares - ----------------------------------------------------------------------------------------------------------------------------------- Common Stocks - 91.2% - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials - 0.2% - ----------------------------------------------------------------------------------------------------------------------------------- Paper - 0.2% ----------------------------------------------------------------------------------------------------------------------------- Visioneer, Inc. (2) 27,300 607,425 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals - 24.4% - ----------------------------------------------------------------------------------------------------------------------------------- Autos & Housing - 1.2% ITI Technologies, Inc. (2) 80,000 2,380,000 ----------------------------------------------------------------------------------------------------------------------------- NHP, Inc. (2) 100,000 1,850,000 ---------------- 4,230,000 - ----------------------------------------------------------------------------------------------------------------------------------- Leisure & Entertainment - 7.1% ----------------------------------------------------------------------------------------------------------------------------- Apple South, Inc. 121,100 2,603,650 ----------------------------------------------------------------------------------------------------------------------------- Applebee's International, Inc. 75,000 1,706,250 ----------------------------------------------------------------------------------------------------------------------------- CKE Restaurants, Inc. 190,000 3,040,000 ----------------------------------------------------------------------------------------------------------------------------- Consolidated Products, Inc. 44,000 649,000 ----------------------------------------------------------------------------------------------------------------------------- Department 56, Inc. (2) 60,300 2,314,012 ----------------------------------------------------------------------------------------------------------------------------- La Quinta Inns, Inc. 85,000 2,326,875 ----------------------------------------------------------------------------------------------------------------------------- Landry's Seafood Restaurants, Inc. (2) 100,000 1,706,250 ----------------------------------------------------------------------------------------------------------------------------- Lone Star Steakhouse & Saloon (2) 50,000 1,918,750 ----------------------------------------------------------------------------------------------------------------------------- Morrow Snowboards, Inc. (2) 59,500 966,875 ----------------------------------------------------------------------------------------------------------------------------- Play By Play Toys & Novelties, Inc. (2) 63,800 933,075 ----------------------------------------------------------------------------------------------------------------------------- Quality Dining, Inc. (2) 94,500 2,291,625 ----------------------------------------------------------------------------------------------------------------------------- Sonic Corp. 95,000 1,805,000 ----------------------------------------------------------------------------------------------------------------------------- Studio Plus Hotels, Inc. (2) 37,500 965,625 ---------------- 23,226,987 - ----------------------------------------------------------------------------------------------------------------------------------- Media - 0.8% ----------------------------------------------------------------------------------------------------------------------------- SFX Broadcasting, Inc., Cl. A (2) 55,100 1,666,775 ----------------------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., Cl. A (2) 50,000 862,500 ---------------- 2,529,275 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: General - 4.9% ----------------------------------------------------------------------------------------------------------------------------- Donnkenny, Inc. 140,000 2,537,500 ----------------------------------------------------------------------------------------------------------------------------- Fila Holding SpA, ADR 58,000 2,639,000 ----------------------------------------------------------------------------------------------------------------------------- Marisa Christina, Inc. (2) 46,700 793,900 ----------------------------------------------------------------------------------------------------------------------------- Nautica Enterprises, Inc. 52,500 2,296,875 ----------------------------------------------------------------------------------------------------------------------------- Tommy Hilfiger Corp. 71,700 3,038,287 ----------------------------------------------------------------------------------------------------------------------------- Warnaco Group, Inc. (The), Cl. A 67,500 1,687,500 ----------------------------------------------------------------------------------------------------------------------------- Wolverine World Wide, Inc. 89,000 2,803,500 ---------------- 15,796,562 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty - 10.4% ----------------------------------------------------------------------------------------------------------------------------- adidas AG, ADS (1)(2) 24,000 637,500 ----------------------------------------------------------------------------------------------------------------------------- Boise Cascade Office Products Corp. (2) 50,000 2,137,500 ----------------------------------------------------------------------------------------------------------------------------- Copart, Inc. (2) 103,100 2,706,375 ----------------------------------------------------------------------------------------------------------------------------- Corporate Express, Inc. 82,500 2,485,312
22 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) Common Stocks (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty (Continued) ----------------------------------------------------------------------------------------------------------------------------- CUC International, Inc. 59,000 $ 2,013,375 ----------------------------------------------------------------------------------------------------------------------------- Discount Auto Parts, Inc. (2) 60,000 1,867,500 ----------------------------------------------------------------------------------------------------------------------------- General Nutrition Cos., Inc. (2) 218,800 5,032,400 ----------------------------------------------------------------------------------------------------------------------------- Hollywood Entertainment Corp. 87,500 732,812 ----------------------------------------------------------------------------------------------------------------------------- Men's Wearhouse, Inc. (2) 130,100 3,350,075 ----------------------------------------------------------------------------------------------------------------------------- Moovies, Inc. (2) 137,200 1,852,200 ----------------------------------------------------------------------------------------------------------------------------- MSC Industrial Direct Co., Inc., Cl. A (2) 35,000 962,500 ----------------------------------------------------------------------------------------------------------------------------- Nike, Inc., Cl. B 22,000 1,531,750 ----------------------------------------------------------------------------------------------------------------------------- OfficeMax, Inc. (2) 45,750 1,023,656 ----------------------------------------------------------------------------------------------------------------------------- Petco Animal Supplies, Inc. (2) 80,000 2,340,000 ----------------------------------------------------------------------------------------------------------------------------- Rocky Mountain Chocolate Factory, Inc. (2) 35,000 420,000 ----------------------------------------------------------------------------------------------------------------------------- Staples, Inc. 67,500 1,645,312 ----------------------------------------------------------------------------------------------------------------------------- Viking Office Products, Inc. (2) 65,000 3,022,500 ---------------- 33,760,767 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 21.3% - ----------------------------------------------------------------------------------------------------------------------------------- Beverages - 0.3% ----------------------------------------------------------------------------------------------------------------------------- Boston Beer Co., Inc., Cl. A (2) 9,800 232,750 ----------------------------------------------------------------------------------------------------------------------------- Canandaigua Wine Co., Inc., Cl. A (2) 20,000 652,500 ---------------- 885,250 - ----------------------------------------------------------------------------------------------------------------------------------- Education - 0.2% ----------------------------------------------------------------------------------------------------------------------------- National Education Corp. (2) 80,000 650,000 - ----------------------------------------------------------------------------------------------------------------------------------- Food - 1.1% ----------------------------------------------------------------------------------------------------------------------------- Opta Food Ingredients, Inc. (2) 35,200 453,200 ----------------------------------------------------------------------------------------------------------------------------- Safeway, Inc. (2) 60,000 3,090,000 ---------------- 3,543,200 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare/Drugs - 5.0% ----------------------------------------------------------------------------------------------------------------------------- Agouron Pharmaceuticals, Inc. (2) 40,000 1,310,000 ----------------------------------------------------------------------------------------------------------------------------- Bio-Vascular, Inc. (2) 47,900 562,825 ----------------------------------------------------------------------------------------------------------------------------- Dura Pharmaceuticals, Inc. (2) 75,000 2,606,250 ----------------------------------------------------------------------------------------------------------------------------- Elan Corp. PLC, ADR (2) 45,000 2,188,125 ----------------------------------------------------------------------------------------------------------------------------- Ethical Holdings PLC, Sponsored ADR (2) 50,000 450,000 ----------------------------------------------------------------------------------------------------------------------------- Gilead Sciences, Inc. (2) 49,300 1,577,600 ----------------------------------------------------------------------------------------------------------------------------- Martek Biosciences Corp. (2) 40,000 1,010,000 ----------------------------------------------------------------------------------------------------------------------------- Matrix Pharmaceutical, Inc. (2) 30,400 570,000 ----------------------------------------------------------------------------------------------------------------------------- Northfield Laboratories, Inc. (2) 50,000 943,750 ----------------------------------------------------------------------------------------------------------------------------- Protein Design Labs, Inc. 7,500 173,437 ----------------------------------------------------------------------------------------------------------------------------- Watson Pharmaceuticals, Inc. (2) 100,000 4,900,000 ---------------- 16,291,987 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services - 14.3% ----------------------------------------------------------------------------------------------------------------------------- AHI Healthcare Systems, Inc. (2) 138,500 796,375 ----------------------------------------------------------------------------------------------------------------------------- AmeriSource Health Corp., Cl. A (2) 115,500 3,811,500 ----------------------------------------------------------------------------------------------------------------------------- ARV Assisted Living, Inc. (2) 150,000 1,762,500 ----------------------------------------------------------------------------------------------------------------------------- Compdent Corp. (2) 50,000 2,075,000 ----------------------------------------------------------------------------------------------------------------------------- Emeritus Corp. (2) 100,000 1,162,500 ----------------------------------------------------------------------------------------------------------------------------- Guidant Corp. 85,000 3,591,250 ----------------------------------------------------------------------------------------------------------------------------- Gulf South Medical Supply, Inc. 73,400 2,220,350 ----------------------------------------------------------------------------------------------------------------------------- HealthCare COMPARE Corp. (2) 50,000 2,175,000 ----------------------------------------------------------------------------------------------------------------------------- HemaSure, Inc. (2) 36,000 459,000
23 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) Common Stocks (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services (Continued) ----------------------------------------------------------------------------------------------------------------------------- Horizon/CMS Healthcare Corp. (2) 63,700 $ 1,608,425 ----------------------------------------------------------------------------------------------------------------------------- Lincare Holdings, Inc. (2) 59,200 1,480,000 ----------------------------------------------------------------------------------------------------------------------------- National Surgery Centers, Inc. (2) 14,500 333,500 ----------------------------------------------------------------------------------------------------------------------------- Omnicare, Inc. 76,800 3,436,800 ----------------------------------------------------------------------------------------------------------------------------- OrNda Healthcorp (2) 105,000 2,441,250 ----------------------------------------------------------------------------------------------------------------------------- Owen Healthcare, Inc. 63,000 1,740,375 ----------------------------------------------------------------------------------------------------------------------------- Pediatrix Medical Group, Inc. (2) 120,000 3,300,000 ----------------------------------------------------------------------------------------------------------------------------- PhyCor, Inc. 65,000 3,286,562 ----------------------------------------------------------------------------------------------------------------------------- Physician Reliance Network, Inc. (2) 40,000 1,590,000 ----------------------------------------------------------------------------------------------------------------------------- Physicians Resource Group, Inc. (2) 75,000 1,490,625 ----------------------------------------------------------------------------------------------------------------------------- Quorum Health Group, Inc. (2) 56,000 1,232,000 ----------------------------------------------------------------------------------------------------------------------------- Renal Treatment Centers, Inc. (2) 50,000 2,200,000 ----------------------------------------------------------------------------------------------------------------------------- Total Renal Care Holdings, Inc. (2) 52,600 1,551,700 ----------------------------------------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 30,000 1,395,000 ----------------------------------------------------------------------------------------------------------------------------- United Dental Care, Inc. (2) 30,000 1,237,500 ---------------- 46,377,212 - ----------------------------------------------------------------------------------------------------------------------------------- Household Goods - 0.4% ----------------------------------------------------------------------------------------------------------------------------- Ultralife Batteries, Inc. (2) 60,000 1,440,000 - ----------------------------------------------------------------------------------------------------------------------------------- Energy - 3.4% - ----------------------------------------------------------------------------------------------------------------------------------- Energy Services & Producers - 2.9% ----------------------------------------------------------------------------------------------------------------------------- Core Laboratories NV (2) 50,300 603,600 ----------------------------------------------------------------------------------------------------------------------------- Cross Timbers Oil Co. 30,800 542,850 ----------------------------------------------------------------------------------------------------------------------------- Diamond Offshore Drilling, Inc. (2) 56,900 1,920,375 ----------------------------------------------------------------------------------------------------------------------------- Energy Ventures, Inc. (2) 75,200 1,898,800 ----------------------------------------------------------------------------------------------------------------------------- Nabors Industries, Inc. (2) 150,000 1,668,750 ----------------------------------------------------------------------------------------------------------------------------- Newfield Exploration Co. (2) 20,000 540,000 ----------------------------------------------------------------------------------------------------------------------------- NUMAR Corp. (2) 36,000 400,500 ----------------------------------------------------------------------------------------------------------------------------- Stone Energy Corp. (2) 35,000 538,125 ----------------------------------------------------------------------------------------------------------------------------- Weatherford Enterra, Inc. (2) 50,000 1,443,750 ---------------- 9,556,750 - ----------------------------------------------------------------------------------------------------------------------------------- Oil-Integrated - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Valero Energy Corp. 60,000 1,470,000 - ----------------------------------------------------------------------------------------------------------------------------------- Financial - 2.0% - ----------------------------------------------------------------------------------------------------------------------------------- Diversified Financial - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Advanta Corp., Cl. B 40,000 1,455,000 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance - 1.5% ----------------------------------------------------------------------------------------------------------------------------- Berkley (W.R.) Corp. 40,000 2,150,000 ----------------------------------------------------------------------------------------------------------------------------- CapMAC Holdings, Inc. (2) 70,600 1,773,825 ----------------------------------------------------------------------------------------------------------------------------- First Commonwealth, Inc. (2) 18,000 468,000 ----------------------------------------------------------------------------------------------------------------------------- Prudential Reinsurance Holdings, Inc. 24,900 582,037 ---------------- 4,973,862 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial - 10.6% - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Materials - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Kennametal, Inc. 52,000 1,651,000 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Services - 8.3% ----------------------------------------------------------------------------------------------------------------------------- CIBER, Inc. (2) 73,500 1,718,062 ----------------------------------------------------------------------------------------------------------------------------- CKS Group, Inc. (2) 11,600 452,400 ----------------------------------------------------------------------------------------------------------------------------- Computer Horizons Corp. 60,000 2,280,000
24 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) Common Stocks (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Industrial (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Services (Continued) ----------------------------------------------------------------------------------------------------------------------------- CORT Business Services Corp. (2) 93,800 $ 1,547,700 ----------------------------------------------------------------------------------------------------------------------------- Danka Business System PLC, Sponsored ADR 70,000 2,590,000 ----------------------------------------------------------------------------------------------------------------------------- DST Systems, Inc. (2) 83,500 2,379,750 ----------------------------------------------------------------------------------------------------------------------------- Kent Electronics Corp. 33,300 1,943,888 ----------------------------------------------------------------------------------------------------------------------------- META Group, Inc. (2) 40,000 1,225,000 ----------------------------------------------------------------------------------------------------------------------------- PMT Services, Inc. (2) 58,000 1,754,500 ----------------------------------------------------------------------------------------------------------------------------- Sitel Corp. (2) 59,300 1,816,063 ----------------------------------------------------------------------------------------------------------------------------- Stewart Enterprises, Inc. 50,000 1,850,000 ----------------------------------------------------------------------------------------------------------------------------- Transaction Network Services, Inc. (2) 60,000 1,500,000 ----------------------------------------------------------------------------------------------------------------------------- Transaction Systems Architects, Inc., Cl. A (2) 60,000 2,025,000 ----------------------------------------------------------------------------------------------------------------------------- United Waste Systems, Inc. (2) 30,000 1,117,500 ----------------------------------------------------------------------------------------------------------------------------- USA Waste Services, Inc. (2) 151,300 2,855,788 ---------------- 27,055,651 - ----------------------------------------------------------------------------------------------------------------------------------- Manufacturing - 1.0% ----------------------------------------------------------------------------------------------------------------------------- American Standard Cos., Inc. (2) 50,000 1,400,000 ----------------------------------------------------------------------------------------------------------------------------- Cincinnati Milacron, Inc. 30,000 787,500 ----------------------------------------------------------------------------------------------------------------------------- Harnischfeger Industries, Inc. 30,000 997,500 ---------------- 3,185,000 - ----------------------------------------------------------------------------------------------------------------------------------- Transportation - 0.8% ----------------------------------------------------------------------------------------------------------------------------- Airborne Freight Corp. 100,000 2,662,500 - ----------------------------------------------------------------------------------------------------------------------------------- Technology - 29.3% - ----------------------------------------------------------------------------------------------------------------------------------- Computer Hardware - 4.5% ----------------------------------------------------------------------------------------------------------------------------- Adaptec, Inc. (2) 50,300 2,062,300 ----------------------------------------------------------------------------------------------------------------------------- Cisco Systems, Inc. (2) 55,000 4,104,375 ----------------------------------------------------------------------------------------------------------------------------- Citrix Systems, Inc. (2) 15,500 503,750 ----------------------------------------------------------------------------------------------------------------------------- Data Translation, Inc. 117,000 1,901,250 ----------------------------------------------------------------------------------------------------------------------------- In Focus Systems, Inc. (2) 70,000 2,528,750 ----------------------------------------------------------------------------------------------------------------------------- Lexmark International Group, Inc., Cl. A (2) 73,400 1,339,550 ----------------------------------------------------------------------------------------------------------------------------- Network Appliance, Inc. (2) 13,200 529,650 ----------------------------------------------------------------------------------------------------------------------------- Sun Microsystems, Inc. (2) 40,000 1,825,000 ---------------- 14,794,625 - ----------------------------------------------------------------------------------------------------------------------------------- Computer Software - 12.4% ----------------------------------------------------------------------------------------------------------------------------- 7th Level, Inc. (2) 40,000 560,000 ----------------------------------------------------------------------------------------------------------------------------- Adept Technology, Inc. (2) 112,700 1,183,350 ----------------------------------------------------------------------------------------------------------------------------- AMISYS Managed Care Systems, Inc. 18,700 355,300 ----------------------------------------------------------------------------------------------------------------------------- Arbor Software Corp. (2) 13,500 637,875 ----------------------------------------------------------------------------------------------------------------------------- Cheyenne Software, Inc. (2) 110,000 2,873,750 ----------------------------------------------------------------------------------------------------------------------------- Computervision Corp. (2) 190,500 2,928,938 ----------------------------------------------------------------------------------------------------------------------------- Computron Software, Inc. (2) 50,000 900,000 ----------------------------------------------------------------------------------------------------------------------------- Enterprise Systems, Inc. (2) 34,100 1,040,050 ----------------------------------------------------------------------------------------------------------------------------- First Data Corp. 58,788 3,931,448 ----------------------------------------------------------------------------------------------------------------------------- GT Interactive Software Corp. (2) 25,000 350,000 ----------------------------------------------------------------------------------------------------------------------------- HBO & Co. 40,000 3,065,000 ----------------------------------------------------------------------------------------------------------------------------- IDX Systems Corp. (2) 11,200 389,200 ----------------------------------------------------------------------------------------------------------------------------- IMNET Systems, Inc. (2) 48,000 1,152,000 ----------------------------------------------------------------------------------------------------------------------------- Inference Corp., Cl. A (2) 25,000 475,000 ----------------------------------------------------------------------------------------------------------------------------- Informix Corp. (2) 85,000 2,550,000 ----------------------------------------------------------------------------------------------------------------------------- Legato Systems, Inc. (2) 40,000 1,240,000
25 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) Common Stocks (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Technology (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Computer Software (Continued) ----------------------------------------------------------------------------------------------------------------------------- Mecon, Inc. (2) 110,000 $ 1,746,250 ----------------------------------------------------------------------------------------------------------------------------- MetaTools, Inc. (2) 15,000 390,000 ----------------------------------------------------------------------------------------------------------------------------- NetManage, Inc. 60,000 1,395,000 ----------------------------------------------------------------------------------------------------------------------------- Network General Corp. (2) 35,000 1,168,125 ----------------------------------------------------------------------------------------------------------------------------- Novadigm, Inc. (2) 39,100 1,109,463 ----------------------------------------------------------------------------------------------------------------------------- Open Environment Corp. (2) 72,500 996,875 ----------------------------------------------------------------------------------------------------------------------------- Oracle Corp. (2) 80,000 3,390,000 ----------------------------------------------------------------------------------------------------------------------------- Pinnacle Systems, Inc. (2) 39,800 985,050 ----------------------------------------------------------------------------------------------------------------------------- Project Software & Development, Inc. 64,500 2,249,438 ----------------------------------------------------------------------------------------------------------------------------- Spacetec IMC Corp. (2) 30,000 352,500 ----------------------------------------------------------------------------------------------------------------------------- SQA, Inc. (2) 12,500 240,625 ----------------------------------------------------------------------------------------------------------------------------- Summit Medical Systems, Inc. (2) 55,000 1,182,500 ----------------------------------------------------------------------------------------------------------------------------- Sync Research, Inc. (2) 30,800 1,393,700 ---------------- 40,231,437 - ----------------------------------------------------------------------------------------------------------------------------------- Electronics - 0.9% ----------------------------------------------------------------------------------------------------------------------------- Photon Dynamics, Inc. (2) 78,500 628,000 ----------------------------------------------------------------------------------------------------------------------------- SDL, Inc. (2) 95,000 2,280,000 ---------------- 2,908,000 - ----------------------------------------------------------------------------------------------------------------------------------- Telecommunications-Technology - 11.5% ----------------------------------------------------------------------------------------------------------------------------- ADC Telecommunications, Inc. 60,000 2,190,000 ----------------------------------------------------------------------------------------------------------------------------- Allen Group, Inc. 60,000 1,342,500 ----------------------------------------------------------------------------------------------------------------------------- Arch Communications Group, Inc. (2) 140,000 3,360,000 ----------------------------------------------------------------------------------------------------------------------------- Comverse Technology, Inc. (2) 60,000 1,200,000 ----------------------------------------------------------------------------------------------------------------------------- Davox Corp. (2) 80,000 950,000 ----------------------------------------------------------------------------------------------------------------------------- DSC Communications Corp. (2) 75,000 2,765,625 ----------------------------------------------------------------------------------------------------------------------------- Glenayre Technologies, Inc. 31,750 1,976,438 ----------------------------------------------------------------------------------------------------------------------------- Inter-Tel, Inc. (2) 56,300 865,613 ----------------------------------------------------------------------------------------------------------------------------- L.M. Ericsson Telephone Co., Cl. B, ADR 90,000 1,755,000 ----------------------------------------------------------------------------------------------------------------------------- LCI International, Inc. (2) 132,600 2,718,300 ----------------------------------------------------------------------------------------------------------------------------- Metrocall, Inc. (2) 34,200 654,075 ----------------------------------------------------------------------------------------------------------------------------- MobileMedia Corp., Cl. A (2) 125,000 2,781,250 ----------------------------------------------------------------------------------------------------------------------------- Pairgain Technologies, Inc. (2) 40,000 2,190,000 ----------------------------------------------------------------------------------------------------------------------------- Periphonics Corp. (2) 85,400 2,369,850 ----------------------------------------------------------------------------------------------------------------------------- ProNet, Inc. (2) 100,000 2,950,000 ----------------------------------------------------------------------------------------------------------------------------- Tellabs, Inc. 55,000 2,035,000 ----------------------------------------------------------------------------------------------------------------------------- Teltrend, Inc. (2) 65,000 3,038,750 ----------------------------------------------------------------------------------------------------------------------------- VTEL Corp. (2) 105,500 1,951,750 ----------------------------------------------------------------------------------------------------------------------------- Westell Technologies, Inc., Cl. A (2) 14,000 351,750 ---------------- 37,445,901 ---------------- Total Common Stocks (Cost $234,017,201) 296,728,391
26 Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund Statement of Investments (Continued) December 31, 1995
Market Value Units (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Rights, Warrants and Certificates - 0.0% - ----------------------------------------------------------------------------------------------------------------------------------- Jan Bell Marketing, Inc. Wts., Exp. 12/98 532 $ 266 Tapistron International, Inc. Wts., Exp. 6/97 120,000 7,500 ----------------------------------------------------------------------------------------------------------------------------- Windmere Corp. Wts., Exp. 1/98 381 -- ---------------- Total Rights, Warrants and Certificates (Cost $52,860) 7,766 Principal Amount - ----------------------------------------------------------------------------------------------------------------------------------- Repurchase Agreement - 10.9% Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $35,623,338 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $19,323,938, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $11,710,771, and U.S. Treasury Bills maturing 11/14/96, with a value of $5,310,666 (Cost $35,600,000) $ 35,600,000 35,600,000 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $272,820,061) 103.2% 335,795,407 - ----------------------------------------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (3.2) (10,391,316) ----------------- ---------------- Net Assets 100.0% $ 325,404,091 ================= ================
1. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $2,974,750 or 0.91% of the Fund's net assets, at December 31, 1995. 2. Non-income producing security. See accompanying Notes to Financial Statements. 27 Oppenheimer Variable Account Funds - Oppenheimer Growth Fund Statement of Investments December 31, 1995
Market Value Shares (Note 1) - --------------------------------------------------------------------------------------------------- Common Stocks - 80.1% - --------------------------------------------------------------------------------------------------- Basic Materials - 6.3% - --------------------------------------------------------------------------------------------------- Chemicals - 4.5% --------------------------------------------------------------------------------------------- FMC Corp. (1) 4,000 $ 270,500 --------------------------------------------------------------------------------------------- Georgia Gulf Corp. 19,000 584,250 --------------------------------------------------------------------------------------------- IMC Global, Inc. 16,000 654,000 --------------------------------------------------------------------------------------------- Morton International, Inc. 29,000 1,040,375 --------------------------------------------------------------------------------------------- PPG Industries, Inc. 18,000 823,500 --------------------------------------------------------------------------------------------- Sterling Chemicals, Inc. (1) 80,600 654,875 --------------------------------------------------------------------------------------------- Terra Industries, Inc. 46,000 649,750 --------------------------------------------------------------------------------------------- Union Carbide Corp. 17,000 637,500 ---------------- 5,314,750 - --------------------------------------------------------------------------------------------------- Metals - 0.3% --------------------------------------------------------------------------------------------- Reynolds Metals Co. 7,000 396,375 - --------------------------------------------------------------------------------------------------- Paper - 1.5% --------------------------------------------------------------------------------------------- Boise Cascade Corp. 17,000 588,625 --------------------------------------------------------------------------------------------- Bowater, Inc. 5,000 177,500 --------------------------------------------------------------------------------------------- Federal Paper Board Co. 7,000 363,125 --------------------------------------------------------------------------------------------- Willamette Industries, Inc. 11,000 618,750 ---------------- 1,748,000 - --------------------------------------------------------------------------------------------------- Consumer Cyclicals - 10.7% --------------------------------------------------------------------------------------------- Autos & Housing - 1.4% --------------------------------------------------------------------------------------------- Pulte Corp. 17,000 571,625 --------------------------------------------------------------------------------------------- Toll Brothers, Inc. (1) 46,000 1,058,000 ---------------- 1,629,625 - --------------------------------------------------------------------------------------------------- Leisure & Entertainment - 3.3% --------------------------------------------------------------------------------------------- Applebee's International, Inc. 18,000 409,500 --------------------------------------------------------------------------------------------- Callaway Golf Co. 25,000 565,625 --------------------------------------------------------------------------------------------- ITT Corp. (New) 5,000 265,000 --------------------------------------------------------------------------------------------- McDonald's Corp. 11,000 496,375 --------------------------------------------------------------------------------------------- Walt Disney Co. 25,000 1,475,000 --------------------------------------------------------------------------------------------- Wendy's International, Inc. 33,800 718,250 ---------------- 3,929,750 - --------------------------------------------------------------------------------------------------- Media - 0.2% --------------------------------------------------------------------------------------------- Viacom, Inc., Cl. B (1) 3,667 173,724 - --------------------------------------------------------------------------------------------------- Retail: General - 3.2% --------------------------------------------------------------------------------------------- Jones Apparel Group, Inc. (1) 17,100 673,312 --------------------------------------------------------------------------------------------- May Department Stores Co. 6,000 253,500 --------------------------------------------------------------------------------------------- Nautica Enterprises, Inc. 10,200 446,250 --------------------------------------------------------------------------------------------- Tommy Hilfiger Corp. 22,500 953,437 --------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 26,000 581,750 --------------------------------------------------------------------------------------------- Warnaco Group, Inc. (The), Cl. A 33,000 825,000 ---------------- 3,733,249 - --------------------------------------------------------------------------------------------------- Retail: Specialty - 2.6% --------------------------------------------------------------------------------------------- Bed Bath & Beyond, Inc. (1) 9,000 349,312 --------------------------------------------------------------------------------------------- Gap, Inc. (The) 10,000 420,000 --------------------------------------------------------------------------------------------- General Nutrition Cos., Inc. (1) 40,000 920,000 --------------------------------------------------------------------------------------------- Home Depot, Inc. 24,000 1,149,000 --------------------------------------------------------------------------------------------- OfficeMax, Inc. (1) 8,000 179,000 ---------------- 3,017,312
28 Oppenheimer Variable Account Funds - Oppenheimer Growth Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 17.6% - --------------------------------------------------------------------------------------------------- Beverages - 1.4% --------------------------------------------------------------------------------------------- Boston Beer Co., Inc., Cl. A (1) 6,600 $ 156,750 --------------------------------------------------------------------------------------------- Coca-Cola Co. (The) 10,000 742,500 --------------------------------------------------------------------------------------------- PepsiCo, Inc. 10,000 558,750 --------------------------------------------------------------------------------------------- Whitman Corp. 8,000 186,000 ---------------- 1,644,000 - --------------------------------------------------------------------------------------------------- Food - 3.1% --------------------------------------------------------------------------------------------- ConAgra, Inc. 4,000 165,000 --------------------------------------------------------------------------------------------- H.J. Heinz Co. 15,000 496,875 --------------------------------------------------------------------------------------------- IBP, Inc. 20,000 1,010,000 --------------------------------------------------------------------------------------------- Kroger Co. (1) 14,000 525,000 --------------------------------------------------------------------------------------------- Safeway, Inc. (1) 16,000 824,000 --------------------------------------------------------------------------------------------- Smithfield Foods, Inc. (1) 21,000 666,750 ---------------- 3,687,625 - --------------------------------------------------------------------------------------------------- Healthcare/Drugs - 5.6% --------------------------------------------------------------------------------------------- Abbott Laboratories 27,000 1,127,250 --------------------------------------------------------------------------------------------- Amgen, Inc. 8,000 475,000 --------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 6,500 558,187 --------------------------------------------------------------------------------------------- Johnson & Johnson 12,000 1,027,500 --------------------------------------------------------------------------------------------- Pfizer, Inc. 26,500 1,669,500 --------------------------------------------------------------------------------------------- Schering-Plough Corp. 16,000 876,000 --------------------------------------------------------------------------------------------- Warner-Lambert Co. 6,000 582,750 --------------------------------------------------------------------------------------------- Watson Pharmaceuticals, Inc. (1) 6,000 294,000 ---------------- 6,610,187 - --------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services - 4.2% --------------------------------------------------------------------------------------------- Columbia/HCA Healthcare Corp. 12,000 609,000 --------------------------------------------------------------------------------------------- Cordis Corp. (1) 2,000 201,000 --------------------------------------------------------------------------------------------- HealthCare COMPARE Corp. (1) 20,000 870,000 --------------------------------------------------------------------------------------------- Lincare Holdings, Inc. (1) 35,000 875,000 --------------------------------------------------------------------------------------------- Medtronic, Inc. 34,000 1,899,750 --------------------------------------------------------------------------------------------- Nellcor Puritan Bennett, Inc. (1) 8,800 510,400 ---------------- 4,965,150 - --------------------------------------------------------------------------------------------------- Household Goods - 0.9% --------------------------------------------------------------------------------------------- Procter & Gamble Co. 13,000 1,079,000 - --------------------------------------------------------------------------------------------------- Tobacco - 2.4% --------------------------------------------------------------------------------------------- Philip Morris Cos., Inc. 16,000 1,448,000 --------------------------------------------------------------------------------------------- UST, Inc. 41,000 1,368,375 ---------------- 2,816,375 - --------------------------------------------------------------------------------------------------- Energy - 1.5% --------------------------------------------------------------------------------------------- Oil-Integrated - 1.5% --------------------------------------------------------------------------------------------- Mobil Corp. 6,000 672,000 --------------------------------------------------------------------------------------------- Royal Dutch Petroleum Co. 3,500 493,938 --------------------------------------------------------------------------------------------- USX-Marathon Group 25,000 487,500 --------------------------------------------------------------------------------------------- YPF Sociedad Anonima, Sponsored ADR 5,000 108,125 ---------------- 1,761,563 - -------------------------------------------------------------------------------------------------- Financial - 13.7% --------------------------------------------------------------------------------------------- Banks - 4.3% --------------------------------------------------------------------------------------------- Bank of Boston Corp. 23,000 1,063,750 --------------------------------------------------------------------------------------------- Chase Manhattan Corp. 6,000 363,750 ----------------
29 Oppenheimer Variable Account Funds - Oppenheimer Growth Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Financial (Continued) - --------------------------------------------------------------------------------------------------- Banks (Continued) --------------------------------------------------------------------------------------------- Chemical Banking Corp. 9,000 $ 528,750 --------------------------------------------------------------------------------------------- First Interstate Bancorp 6,500 887,250 --------------------------------------------------------------------------------------------- Midlantic Corp. 12,000 787,500 --------------------------------------------------------------------------------------------- NationsBank Corp. 10,000 696,250 --------------------------------------------------------------------------------------------- State Street Boston Corp. 16,600 747,000 ---------------- 5,074,250 - --------------------------------------------------------------------------------------------------- Diversified Financial - 7.4% --------------------------------------------------------------------------------------------- Advanta Corp., Cl. A 15,000 573,750 --------------------------------------------------------------------------------------------- Donaldson, Lufkin & Jenrette, Inc. (1) 6,200 193,750 --------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp. 8,000 668,000 --------------------------------------------------------------------------------------------- Federal National Mortgage Assn. 8,000 993,000 --------------------------------------------------------------------------------------------- First USA, Inc. 25,000 1,109,375 --------------------------------------------------------------------------------------------- Green Tree Financial Corp. 56,000 1,477,000 --------------------------------------------------------------------------------------------- Money Store, Inc. (The) 23,000 359,375 --------------------------------------------------------------------------------------------- Morgan Stanley Group, Inc. 3,000 241,875 --------------------------------------------------------------------------------------------- Price (T. Rowe) Associates 20,400 1,004,700 --------------------------------------------------------------------------------------------- Schwab (Charles) Corp. (The) 29,000 583,625 --------------------------------------------------------------------------------------------- Travelers Group, Inc. 24,000 1,509,000 ---------------- 8,713,450 - --------------------------------------------------------------------------------------------------- Insurance - 2.0% --------------------------------------------------------------------------------------------- AFLAC, Inc. 5,250 227,719 --------------------------------------------------------------------------------------------- ITT Hartford Group, Inc. 5,000 241,875 --------------------------------------------------------------------------------------------- MGIC Investment Corp. 14,100 764,925 --------------------------------------------------------------------------------------------- SunAmerica, Inc. 24,000 1,140,000 ---------------- 2,374,519 - --------------------------------------------------------------------------------------------------- Industrial - 7.1% - --------------------------------------------------------------------------------------------------- Electrical Equipment - 2.2% --------------------------------------------------------------------------------------------- Emerson Electric Co. 17,500 1,430,625 --------------------------------------------------------------------------------------------- General Electric Co. 13,000 936,000 --------------------------------------------------------------------------------------------- Honeywell, Inc. 2,000 97,250 --------------------------------------------------------------------------------------------- Kemet Corp. 6,000 143,250 ---------------- 2,607,125 - --------------------------------------------------------------------------------------------------- Industrial Materials - 1.6% --------------------------------------------------------------------------------------------- Ball Corp. 10,000 275,000 --------------------------------------------------------------------------------------------- Centex Corp. 14,000 486,500 --------------------------------------------------------------------------------------------- Fluor Corp. 8,000 528,000 --------------------------------------------------------------------------------------------- Rayonier, Inc. 19,400 647,475 ---------------- 1,936,975 - --------------------------------------------------------------------------------------------------- Industrial Services - 1.0% --------------------------------------------------------------------------------------------- Danka Business System PLC, Sponsored ADR 21,000 777,000 --------------------------------------------------------------------------------------------- Manpower, Inc. 12,500 351,563 ---------------- 1,128,563 - --------------------------------------------------------------------------------------------------- Manufacturing - 0.8% --------------------------------------------------------------------------------------------- ITT Industries, Inc. 5,000 120,000 --------------------------------------------------------------------------------------------- Kulicke & Soffa Industries, Inc. 20,000 465,000 --------------------------------------------------------------------------------------------- Varity Corp. (1) 9,000 334,125 ---------------- 919,125
30 Oppenheimer Variable Account Funds - Oppenheimer Growth Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Transportation - 1.5% --------------------------------------------------------------------------------------------- Burlington Northern Santa Fe Corp. 7,000 $ 546,000 --------------------------------------------------------------------------------------------- Canadian Pacific Ltd. 47,000 851,875 --------------------------------------------------------------------------------------------- Illinois Central Corp. 10,000 383,750 ---------------- 1,781,625 - --------------------------------------------------------------------------------------------------- Technology - 22.1% - --------------------------------------------------------------------------------------------------- Aerospace/Defense - 0.7% --------------------------------------------------------------------------------------------- Goodrich (B.F.) Co. 12,000 817,500 - --------------------------------------------------------------------------------------------------- Computer Hardware - 5.3% --------------------------------------------------------------------------------------------- 3Com Corp. (1) 10,000 466,250 --------------------------------------------------------------------------------------------- Adaptec, Inc. (1) 20,000 820,000 --------------------------------------------------------------------------------------------- Cabletron Systems, Inc. (1) 22,000 1,782,000 --------------------------------------------------------------------------------------------- Cisco Systems, Inc. (1) 7,000 522,375 --------------------------------------------------------------------------------------------- Compaq Computer Corp. (1) 22,000 1,056,000 --------------------------------------------------------------------------------------------- EMC Corp. (1) 36,000 553,500 --------------------------------------------------------------------------------------------- Gateway 2000, Inc. (1) 22,000 539,000 --------------------------------------------------------------------------------------------- Sun Microsystems, Inc. (1) 12,000 547,500 ---------------- 6,286,625 - --------------------------------------------------------------------------------------------------- Computer Software - 9.6% --------------------------------------------------------------------------------------------- Automatic Data Processing, Inc. 19,000 1,410,750 --------------------------------------------------------------------------------------------- BMC Software, Inc. (1) 30,000 1,282,500 --------------------------------------------------------------------------------------------- Cheyenne Software, Inc. (1) 41,000 1,071,125 --------------------------------------------------------------------------------------------- Computer Associates International, Inc. 6,000 341,250 --------------------------------------------------------------------------------------------- First Data Corp. 20,000 1,337,500 --------------------------------------------------------------------------------------------- Informix Corp. (1) 35,000 1,050,000 --------------------------------------------------------------------------------------------- Microsoft Corp. (1) 30,000 2,632,500 --------------------------------------------------------------------------------------------- Oracle Corp. (1) 33,600 1,423,800 --------------------------------------------------------------------------------------------- Sterling Software, Inc. (1) 12,000 748,500 ---------------- 11,297,925 - --------------------------------------------------------------------------------------------------- Electronics - 3.8% --------------------------------------------------------------------------------------------- Arrow Electronics, Inc. (1) 11,000 474,375 --------------------------------------------------------------------------------------------- Cypress Semiconductor Corp. (1) 50,000 637,500 --------------------------------------------------------------------------------------------- General Instrument Corp. (1) 15,000 350,625 --------------------------------------------------------------------------------------------- Intel Corp. 26,000 1,475,500 --------------------------------------------------------------------------------------------- Motorola, Inc. 15,000 855,000 --------------------------------------------------------------------------------------------- Phillips Electronics NV, ADR 19,000 681,625 ---------------- 4,474,625 - --------------------------------------------------------------------------------------------------- Telecommunications-Technology - 2.7% --------------------------------------------------------------------------------------------- AT&T Corp. 18,000 1,165,500 --------------------------------------------------------------------------------------------- Hong Kong Telecommunications Ltd., Sponsored ADR 5,000 88,750 --------------------------------------------------------------------------------------------- L.M. Ericsson Telephone Co., Cl. B, ADR 33,000 643,500 --------------------------------------------------------------------------------------------- Telecom Corp. of New Zealand Ltd., Sponsored ADR 7,000 485,625 --------------------------------------------------------------------------------------------- Tellabs, Inc. 21,800 806,600 ---------------- 3,189,975 - --------------------------------------------------------------------------------------------------- Utilities - 1.1% - --------------------------------------------------------------------------------------------------- Telephone Utilities - 1.1% --------------------------------------------------------------------------------------------- BellSouth Corp. 5,000 217,500 --------------------------------------------------------------------------------------------- Cincinnati Bell, Inc. 17,000 590,750
31 Oppenheimer Variable Account Funds - Oppenheimer Growth Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Utilities - 1.1% - --------------------------------------------------------------------------------------------------- Telephone Utilities - 1.1% --------------------------------------------------------------------------------------------- Telefonos de Mexico SA, Sponsored ADR 13,500 $ 430,313 ---------------- 1,238,563 ---------------- Total Common Stocks (Cost $70,729,607) 94,347,530 Principal Amount - --------------------------------------------------------------------------------------------------- Repurchase Agreements - 19.9% --------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $18,011,800 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $9,770,530, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $5,921,176, and U.S. Treasury Bills maturing 11/14/96, with a value of $2,685,168 $18,000,000 18,000,000 --------------------------------------------------------------------------------------------- Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95, to be repurchased at $5,473,586 on 1/2/96, collateralized by U.S. Treasury Nts., 6.875%, 8/31/99, with a value of $1,954,613, and U.S. Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with a value of $3,682,864 5,470,000 5,470,000 ---------------- --------------------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $23,470,000) 23,470,000 --------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $94,199,607) 100.0% 117,817,530 --------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets 0.0 (107,640) ----------- ----------------- Net Assets 100.0% $117,709,890 =========== ==================
1. Non-income producing security. See accompanying Notes to Financial Statements. 32 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments December 31, 1995
Principal Market Value Amount(1) (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage-Backed Obligations - 1.6% - ----------------------------------------------------------------------------------------------------------------------------------- Government Agency - 1.4% - ----------------------------------------------------------------------------------------------------------------------------------- GNMA/Guaranteed - 1.4% ----------------------------------------------------------------------------------------------------------------------------- Government National Mortgage Assn.: 8%, 4/15/23 $ 3,633,256 $ 3,785,417 8%, 7/15/22 1,636,667 1,705,211 ----------- 5,490,628 - ----------------------------------------------------------------------------------------------------------------------------------- Private - 0.2% - ----------------------------------------------------------------------------------------------------------------------------------- Multi-Family - 0.2% ----------------------------------------------------------------------------------------------------------------------------- Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 757,146 714,557 ---------- Total Mortgage-Backed Obligations (Cost $6,131,064) 6,205,185 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Government Obligations - 10.0% - ----------------------------------------------------------------------------------------------------------------------------------- Treasury - 10.0% - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Nts.: 6.375%, 8/15/02 5,000,000 5,254,684 6.75%, 5/31/97 10,300,000 10,515,650 7.625%, 5/31/96 12,500,000 12,625,000 9.25%, 8/15/98 9,000,000 9,869,057 ----------- Total U.S. Government Obligations (Cost $36,992,459) 38,264,391 - ----------------------------------------------------------------------------------------------------------------------------------- Foreign Government Obligations - 9.6% - ----------------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of): Bonds, Bonos de Consolidacion de Deudas, Series 1, 5.836%, 4/1/01 (2)(3) 2,345,788 1,841,852 Par Bonds, 5%, 3/31/23 (4) 3,500,000 1,997,187 Past Due Interest Bonds, Series L, 6.812%, 3/31/05 (2) 3,000,000 2,145,000 ----------------------------------------------------------------------------------------------------------------------------- Bonos de la Tesoreria de la Federacion, Zero Coupon: 48.252%, 10/3/96 (5) MXP 5,615,100 537,857 51.195%, 9/12/96 (5) MXP 5,977,280 583,858 ----------------------------------------------------------------------------------------------------------------------------- Canada (Government of) Bonds: 8.50%, 4/1/02 CAD 1,500,000 1,198,677 9.75%, 12/1/01 CAD 3,000,000 2,528,212 9.75%, 6/1/01 CAD 2,000,000 1,673,861 ----------------------------------------------------------------------------------------------------------------------------- Denmark (Kingdom of) Bonds, 8%, 3/15/06 DKK 32,100,000 6,108,023 ----------------------------------------------------------------------------------------------------------------------------- Eskom Loan Participation Agreements, Series 168, 11%, 6/1/08 ZAR 8,570,000 1,915,724 ----------------------------------------------------------------------------------------------------------------------------- Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali, 8.50%, 8/1/99 ITL 2,700,000,000 1,615,338 ----------------------------------------------------------------------------------------------------------------------------- Poland (Republic of) Treasury Bills, Zero Coupon: 24.132%, 11/13/96 (5) PLZ 2,300,000 766,729 24.426%, 7/3/96 (5) PLZ 2,860,000 1,030,803 ----------------------------------------------------------------------------------------------------------------------------- Queensland Treasury Corp. Gtd. Exch. Nts., 10.50%, 5/15/03 AUD 3,600,000 3,018,246 ----------------------------------------------------------------------------------------------------------------------------- Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 AUD 6,000,000 4,457,624 ----------------------------------------------------------------------------------------------------------------------------- United Kingdom Treasury Nts., 13%, 7/14/00 GBP 1,590,000 3,054,934
33 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Foreign Government Obligations (Continued) Amount(1) (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Venezuela (Republic of) Front-Loaded Interest Reduction Bonds, Series B, 7%, 3/31/07 (2) $4,000,000 $ 2,230,000 ----------- Total Foreign Government Obligations (Cost $34,609,292) 36,703,925 - ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bonds and Notes - 0.1% - ----------------------------------------------------------------------------------------------------------------------------------- Port of Portland, Oregon Special Obligation Taxable Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 (Cost $500,000) 500,000 546,886 - ----------------------------------------------------------------------------------------------------------------------------------- Non-Convertible Corporate Bonds and Notes - 15.9% - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials - 2.2% - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals - 0.5% ----------------------------------------------------------------------------------------------------------------------------- NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 1,350,000 1,447,875 ----------------------------------------------------------------------------------------------------------------------------- Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 568,969 ----------- 2,016,844 - ----------------------------------------------------------------------------------------------------------------------------------- Metals - 0.9% ----------------------------------------------------------------------------------------------------------------------------- AK Steel Corp., 10.75% Gtd. Sr. Nts., 4/1/04 1,000,000 1,112,500 ----------------------------------------------------------------------------------------------------------------------------- Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01 200,000 194,000 ----------------------------------------------------------------------------------------------------------------------------- Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 400,000 418,668 ----------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 1,000,000 1,102,500 ----------------------------------------------------------------------------------------------------------------------------- Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03 500,000 478,750 ---------- 3,306,418 - ----------------------------------------------------------------------------------------------------------------------------------- Paper - 0.8% ----------------------------------------------------------------------------------------------------------------------------- Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 500,000 517,500 ----------------------------------------------------------------------------------------------------------------------------- Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 1,000,000 955,000 ----------------------------------------------------------------------------------------------------------------------------- Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 1,000,000 1,068,750 ----------------------------------------------------------------------------------------------------------------------------- Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 350,000 376,250 ----------- 2,917,500 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals - 6.5% - ----------------------------------------------------------------------------------------------------------------------------------- Autos & Housing - 0.6% ----------------------------------------------------------------------------------------------------------------------------- Chrysler Financial Corp., 13.25% Nts., 10/15/99 500,000 619,944 ----------------------------------------------------------------------------------------------------------------------------- Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 825,000 693,000 ---------------------------------------------------------------------------------------------------------------------------- Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts., Series B, 4/1/02 950,000 973,750 ----------- 2,286,694 - ----------------------------------------------------------------------------------------------------------------------------------- Leisure & Entertainment - 1.0% ----------------------------------------------------------------------------------------------------------------------------- Foodmaker, Inc.: 9.25% Sr. Nts., 3/1/99 450,000 433,125 9.75% Sr. Sub. Nts., 6/1/02 350,000 318,500 ----------------------------------------------------------------------------------------------------------------------------- Imax Corp., 7% Sr. Nts., 3/1/01 (4) 600,000 591,000 ----------------------------------------------------------------------------------------------------------------------------- Pioneer Finance Corp., 13.50% Gtd. First Mtg. Bonds, 12/1/98 1,000,000 755,000 ----------------------------------------------------------------------------------------------------------------------------- Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 1,000,000 985,000 ----------------------------------------------------------------------------------------------------------------------------- Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts., 6/15/01 500,000 520,000 ---------- 3,602,625
34 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals (Continued) Media - 4.2% ----------------------------------------------------------------------------------------------------------------------------- Adelphia Communications Corp., 12.50% Sr. Nts., 5/15/02 $1,000,000 $ 980,000 ----------------------------------------------------------------------------------------------------------------------------- American Telecasting, Inc., 0%/14.50% Sr. Dis. Nts., 6/15/04 (6) 1,290,948 893,981 ----------------------------------------------------------------------------------------------------------------------------- Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05 (6) 1,000,000 635,000 ----------------------------------------------------------------------------------------------------------------------------- Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 500,000 542,500 ----------------------------------------------------------------------------------------------------------------------------- Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 1,100,000 1,171,500 ----------------------------------------------------------------------------------------------------------------------------- Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04 (6) 1,100,000 742,500 ----------------------------------------------------------------------------------------------------------------------------- Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., Series B, 11/1/03 (2) 1,000,000 965,000 ----------------------------------------------------------------------------------------------------------------------------- International CableTel, Inc., 0%/10.875% Sr. Deferred Coupon Nts., 10/15/03 (6) 500,000 358,750 ----------------------------------------------------------------------------------------------------------------------------- Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 750,000 780,000 ----------------------------------------------------------------------------------------------------------------------------- Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,115,000 ----------------------------------------------------------------------------------------------------------------------------- Panamsat LP/Panamsat Capital Corp.: 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (6) 1,000,000 825,000 9.75% Sr. Sec. Nts., 8/1/00 500,000 531,250 ----------------------------------------------------------------------------------------------------------------------------- People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04 (6) 500,000 288,750 ----------------------------------------------------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority Debs., 12/1/07 1,000,000 1,067,500 ----------------------------------------------------------------------------------------------------------------------------- SCI Television, Inc., 11% Sr. Nts., Series 1, 6/30/05 500,000 527,500 ----------------------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 500,000 513,750 ----------------------------------------------------------------------------------------------------------------------------- TeleWest PLC, 9.625% Sr. Debs., 10/1/06 500,000 510,625 ----------------------------------------------------------------------------------------------------------------------------- Time Warner Entertainment LP/Time Warner, Inc.: 10.15% Sr. Nts., 5/1/12 500,000 623,816 8.375% Sr. Debs., 3/15/23 500,000 543,082 ----------------------------------------------------------------------------------------------------------------------------- Time Warner, Inc., 9.125% Debs., 1/15/13 1,000,000 1,127,699 ----------------------------------------------------------------------------------------------------------------------------- TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,176,779 ----------------------------------------------------------------------------------------------------------------------------- United States Banknote Corp., 11.625% Sr. Nts., Series B, 8/1/02 380,000 229,900 ----------- 16,149,882 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: General - 0.2% ----------------------------------------------------------------------------------------------------------------------------- Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 600,000 591,000 ----------------------------------------------------------------------------------------------------------------------------- Retail: Specialty - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 1,000,000 1,007,500 ----------------------------------------------------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 750,000 735,000 ----------- 1,742,500 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 1.9% - ----------------------------------------------------------------------------------------------------------------------------------- Food - 0.6% ----------------------------------------------------------------------------------------------------------------------------- Di Giorgio Corp., 12% Sr. Nts., 2/15/03 250,000 191,250 ----------------------------------------------------------------------------------------------------------------------------- Grand Union Co., 12% Sr. Nts., 9/1/04 1,103,000 959,610 ----------------------------------------------------------------------------------------------------------------------------- Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05 500,000 390,000 ----------------------------------------------------------------------------------------------------------------------------- Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 300,000 332,250 ----------------------------------------------------------------------------------------------------------------------------- RJR Nabisco, Inc., 8.625% Medium-Term Nts., 12/1/02 500,000 519,295 ----------- 2,392,405
35 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals (Continued) Healthcare/Supplies & Services - 0.6% ----------------------------------------------------------------------------------------------------------------------------- AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (3) $ 590,129 $ 652,093 ----------------------------------------------------------------------------------------------------------------------------- Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02 (7) 1,000,000 1,085,000 ----------------------------------------------------------------------------------------------------------------------------- Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 500,000 548,750 ---------- 2,285,843 - ----------------------------------------------------------------------------------------------------------------------------------- Household Goods - 0.7% ----------------------------------------------------------------------------------------------------------------------------- Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., Series B, 11.404%, 5/27/98 (5) 1,500,000 1,200,000 ----------------------------------------------------------------------------------------------------------------------------- Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 1,000,000 1,105,000 ----------------------------------------------------------------------------------------------------------------------------- Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., 13.169%, 3/15/98 (5) 500,000 372,500 ---------- 2,677,500 - ----------------------------------------------------------------------------------------------------------------------------------- Energy - 0.4% - ----------------------------------------------------------------------------------------------------------------------------------- Energy Services & Producers - 0.4% ----------------------------------------------------------------------------------------------------------------------------- Coastal Corp., 11.75% Sr. Debs., 6/15/06 500,000 531,653 ----------------------------------------------------------------------------------------------------------------------------- OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 1,000,000 1,137,500 ---------- 1,669,153 - ----------------------------------------------------------------------------------------------------------------------------------- Financial - 0.5% - ----------------------------------------------------------------------------------------------------------------------------------- Banks - 0.2% ----------------------------------------------------------------------------------------------------------------------------- First Chicago Corp.: 11.25% Sub. Nts., 2/20/01 250,000 307,832 9% Sub. Nts., 6/15/99 250,000 275,295 ---------- 583,127 - ----------------------------------------------------------------------------------------------------------------------------------- Diversified Financial - 0.3% ----------------------------------------------------------------------------------------------------------------------------- GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 250,000 235,625 ----------------------------------------------------------------------------------------------------------------------------- GPA Holland BV, 9.75% Medium-Term Nts., Series B, 6/10/96 (7) 1,000,000 1,000,000 ---------- 1,235,625 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial - 1.7% - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Materials - 0.8% ----------------------------------------------------------------------------------------------------------------------------- American Standard, Inc., 10.875% Sr. Nts., 5/15/99 500,000 546,250 ----------------------------------------------------------------------------------------------------------------------------- Owens-Illinois, Inc.: 10% Sr. Sub. Nts., 8/1/02 500,000 525,625 11% Sr. Debs., 12/1/03 500,000 566,875 ----------------------------------------------------------------------------------------------------------------------------- Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 425,000 403,219 ----------------------------------------------------------------------------------------------------------------------------- Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 850,000 896,750 ---------- 2,938,719 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Services - 0.3% ----------------------------------------------------------------------------------------------------------------------------- EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,250,000 1,112,500 - ----------------------------------------------------------------------------------------------------------------------------------- Manufacturing - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05 (6) 1,250,000 931,250 ----------------------------------------------------------------------------------------------------------------------------- Terex Corp., 13.75% Sr. Sec. Nts., 5/15/02 (7) 1,000,000 882,500 ---------- 1,813,750 - ----------------------------------------------------------------------------------------------------------------------------------- Transportation - 0.1% ----------------------------------------------------------------------------------------------------------------------------- Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 500,000 522,500
36 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Technology - 1.9% - ----------------------------------------------------------------------------------------------------------------------------------- Aerospace/Defense - 0.3% - ----------------------------------------------------------------------------------------------------------------------------------- Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97 (2) $1,250,000 $1,193,750 - ----------------------------------------------------------------------------------------------------------------------------------- Telecommunications-Technology - 1.6% ----------------------------------------------------------------------------------------------------------------------------- Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04 (6) 800,000 576,000 ----------------------------------------------------------------------------------------------------------------------------- Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 493,750 ----------------------------------------------------------------------------------------------------------------------------- Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.825%, 3/5/00 (5) 1,000,000 772,500 ----------------------------------------------------------------------------------------------------------------------------- Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr. Sub. Disc. Nts. 10/1/00 (6) 1,200,000 1,026,000 ----------------------------------------------------------------------------------------------------------------------------- MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (6) 1,850,000 1,489,250 ----------------------------------------------------------------------------------------------------------------------------- PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01 (6) 1,000,000 880,000 ----------------------------------------------------------------------------------------------------------------------------- USA Mobile Communications, Inc. II, 9.50% Sr. Nts., 2/1/04 1,000,000 995,000 ---------- 6,232,500 - ----------------------------------------------------------------------------------------------------------------------------------- Utilities - 0.8% - ----------------------------------------------------------------------------------------------------------------------------------- Electric Utilities - 0.4% ----------------------------------------------------------------------------------------------------------------------------- First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 1,500,000 1,547,055 - ------------------------------------------------------------------------------------------------------------------------------------ Gas Utilities - 0.4% ----------------------------------------------------------------------------------------------------------------------------- Beaver Valley II Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17 989,000 846,386 ----------------------------------------------------------------------------------------------------------------------------- California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04 (6) 750,000 710,625 ---------- 1,557,011 ---------- Total Non-Convertible Corporate Bonds and Notes (Cost $58,825,378) 60,374,901 - ----------------------------------------------------------------------------------------------------------------------------------- Convertible Corporate Bonds and Notes - 0.2% - ----------------------------------------------------------------------------------------------------------------------------------- MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03 (Cost $927,514) 1,000,000 793,750 Shares - ----------------------------------------------------------------------------------------------------------------------------------- Common Stocks - 47.1% - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials - 3.1% - ----------------------------------------------------------------------------------------------------------------------------------- Chemicals - 1.4% ----------------------------------------------------------------------------------------------------------------------------- Air Products & Chemicals, Inc. 2,000 105,500 ----------------------------------------------------------------------------------------------------------------------------- ARCO Chemical Co. 17,900 870,387 ----------------------------------------------------------------------------------------------------------------------------- Bayer AG, Sponsored ADR 70,000 1,851,143 ----------------------------------------------------------------------------------------------------------------------------- Dow Chemical Co. (The) 8,500 598,187 ----------------------------------------------------------------------------------------------------------------------------- Georgia Gulf Corp. 20,400 627,300 ----------------------------------------------------------------------------------------------------------------------------- Goldschmidt (T.H.) AG 430 151,718 ----------------------------------------------------------------------------------------------------------------------------- IMC Global, Inc. (11) 15,200 621,300 ----------------------------------------------------------------------------------------------------------------------------- Sybron Chemical Industries, Inc. (8) 48,000 516,000 ---------- 5,341,535 - ----------------------------------------------------------------------------------------------------------------------------------- Gold - 0.2% ----------------------------------------------------------------------------------------------------------------------------- Santa Fe Pacific Gold Corp. 70,000 848,750
37 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Basic Materials (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Metals - 0.4% ----------------------------------------------------------------------------------------------------------------------------- Brush Wellman, Inc. 69,300 $1,195,425 ----------------------------------------------------------------------------------------------------------------------------- Inco Ltd. 15,200 505,400 ----------- 1,700,825 - ----------------------------------------------------------------------------------------------------------------------------------- Paper - 1.1% ----------------------------------------------------------------------------------------------------------------------------- Aracruz Celulose SA, Sponsored ADR, Cl. B 121,000 937,750 ----------------------------------------------------------------------------------------------------------------------------- Gaylord Container Corp., Cl. A (8) 7,180 57,889 ----------------------------------------------------------------------------------------------------------------------------- Georgia-Pacific Corp. 7,700 528,412 ----------------------------------------------------------------------------------------------------------------------------- Louisiana-Pacific Corp. (11) 31,900 773,575 ----------------------------------------------------------------------------------------------------------------------------- MacMillan Bloedel Ltd. 76,830 950,629 ----------------------------------------------------------------------------------------------------------------------------- MacMillan Bloedel Ltd. 4,200 50,925 ----------------------------------------------------------------------------------------------------------------------------- Stone Container Corp. 54,000 776,250 ----------- 4,075,430 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals - 8.8% - ----------------------------------------------------------------------------------------------------------------------------------- Autos & Housing - 1.3% ----------------------------------------------------------------------------------------------------------------------------- Chromcraft Revington, Inc. (8) 23,500 625,687 ----------------------------------------------------------------------------------------------------------------------------- Eaton Corp. 14,000 750,750 ----------------------------------------------------------------------------------------------------------------------------- Excel Industries, Inc. 52,000 728,000 ----------------------------------------------------------------------------------------------------------------------------- Fiat SpA 310,000 1,008,321 ----------------------------------------------------------------------------------------------------------------------------- General Motors Corp. (11) 22,500 1,189,687 ----------------------------------------------------------------------------------------------------------------------------- Hayes Wheels International, Inc. 26,000 666,250 ----------------------------------------------------------------------------------------------------------------------------- Hi-Lo Automotive, Inc. (8) 21,900 112,237 ----------- 5,080,932 - ----------------------------------------------------------------------------------------------------------------------------------- Leisure & Entertainment - 3.0% ----------------------------------------------------------------------------------------------------------------------------- AMR Corp. (8)(11) 16,700 1,239,975 ----------------------------------------------------------------------------------------------------------------------------- Carnival Corp., Cl. A 34,100 831,187 ----------------------------------------------------------------------------------------------------------------------------- Cheesecake Factory (The) (8)(11) 30,000 645,000 ----------------------------------------------------------------------------------------------------------------------------- Circus Circus Enterprises, Inc. (8) 34,000 947,750 ----------------------------------------------------------------------------------------------------------------------------- Cracker Barrel Old Country Store, Inc. 64,000 1,104,000 ----------------------------------------------------------------------------------------------------------------------------- Eastman Kodak Co. 18,000 1,206,000 ----------------------------------------------------------------------------------------------------------------------------- International Game Technology 60,000 652,500 ----------------------------------------------------------------------------------------------------------------------------- King World Productions, Inc. (8) 31,000 1,205,125 ----------------------------------------------------------------------------------------------------------------------------- Mattel, Inc. 31,337 963,613 ----------------------------------------------------------------------------------------------------------------------------- Primadonna Resorts, Inc. 5,000 73,750 ----------------------------------------------------------------------------------------------------------------------------- Shaw Brothers (Hong Kong) Ltd. 127,000 139,616 ----------------------------------------------------------------------------------------------------------------------------- Shimano, Inc. 50,000 882,196 ----------------------------------------------------------------------------------------------------------------------------- US West Media Group (8) 33,000 627,000 ----------------------------------------------------------------------------------------------------------------------------- Walt Disney Co. 13,000 767,000 ----------- 11,284,712 - ----------------------------------------------------------------------------------------------------------------------------------- Media - 1.7% ----------------------------------------------------------------------------------------------------------------------------- Bowne & Co., Inc. 46,000 920,000 ----------------------------------------------------------------------------------------------------------------------------- Capital Cities/ABC, Inc. 10,000 1,233,750 ----------------------------------------------------------------------------------------------------------------------------- Comcast Corp., Cl. A Special 75,000 1,364,062 ----------------------------------------------------------------------------------------------------------------------------- Dow Jones & Co., Inc. 18,500 737,687 ----------------------------------------------------------------------------------------------------------------------------- Grupo Televisa SA, Sponsored ADR (7) 15,500 348,750 ----------------------------------------------------------------------------------------------------------------------------- South China Morning Post Holdings Ltd. 1,200,000 733,322 ----------------------------------------------------------------------------------------------------------------------------- Tele-Communications, Inc. (New), TCI Group, Series A (8) 34,400 683,700 ----------------------------------------------------------------------------------------------------------------------------- Time Warner, Inc. 14,600 552,975 ----------- 6,574,246
38 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Cyclicals (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Retail: General - 1.3% ----------------------------------------------------------------------------------------------------------------------------- Authentic Fitness Corp. 59,800 $1,240,850 ----------------------------------------------------------------------------------------------------------------------------- Cone Mills Corp. (8) 113,100 1,272,375 ----------------------------------------------------------------------------------------------------------------------------- Price/Costco, Inc. (8) 65,900 1,004,975 ----------------------------------------------------------------------------------------------------------------------------- Tuesday Morning Corp. (8) 130,000 715,000 ----------------------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 33,700 754,037 ----------- 4,987,237 - ----------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty - 1.5% ----------------------------------------------------------------------------------------------------------------------------- Ann Taylor Stores, Inc. (8) 46,000 471,500 ----------------------------------------------------------------------------------------------------------------------------- Best Buy Co., Inc. (8) 30,200 490,750 ----------------------------------------------------------------------------------------------------------------------------- Books-A-Million, Inc. 54,000 695,250 ----------------------------------------------------------------------------------------------------------------------------- Burlington Coat Factory Warehouse Corp. 62,000 635,500 ----------------------------------------------------------------------------------------------------------------------------- Castorama Dubois Investissements LP 4,131 677,466 ----------------------------------------------------------------------------------------------------------------------------- Justin Industries, Inc. 85,000 935,000 ----------------------------------------------------------------------------------------------------------------------------- Toys 'R' Us, Inc. (8) 61,400 1,335,450 ----------------------------------------------------------------------------------------------------------------------------- Venture Stores, Inc. 98,600 332,775 ----------- 5,573,691 - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 8.9% - ----------------------------------------------------------------------------------------------------------------------------------- Beverages - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Guinness PLC 100,000 735,932 ----------------------------------------------------------------------------------------------------------------------------- Whitman Corp. 50,400 1,171,800 ----------- 1,907,732 - ----------------------------------------------------------------------------------------------------------------------------------- Food - 1.1% ----------------------------------------------------------------------------------------------------------------------------- Chiquita Brands International, Inc. 27,880 383,350 ----------------------------------------------------------------------------------------------------------------------------- Grand Union Co. (8) 6,185 46,387 ----------------------------------------------------------------------------------------------------------------------------- Groupe Danone 4,900 809,590 ----------------------------------------------------------------------------------------------------------------------------- McCormick & Co., Inc., Non-Vtg. 31,000 747,875 ----------------------------------------------------------------------------------------------------------------------------- Nestle SA, Sponsored ADR 12,000 665,363 ----------------------------------------------------------------------------------------------------------------------------- Sara Lee Corp. (11) 50,800 1,619,250 ----------- 4,271,815 - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare/Drugs - 3.6% ----------------------------------------------------------------------------------------------------------------------------- Abbott Laboratories 18,000 751,500 ----------------------------------------------------------------------------------------------------------------------------- Agouron Pharmaceuticals, Inc. (8) 20,000 655,000 ----------------------------------------------------------------------------------------------------------------------------- American Home Products Corp. 10,000 970,000 ----------------------------------------------------------------------------------------------------------------------------- Astra AB Free, Series A 15,500 619,794 ----------------------------------------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 25,000 2,146,875 ----------------------------------------------------------------------------------------------------------------------------- Ciba-Geigy AG 2,700 2,381,695 ----------------------------------------------------------------------------------------------------------------------------- COR Therapeutics, Inc. (8) 50,000 418,750 ----------------------------------------------------------------------------------------------------------------------------- Foundation Health Corp. (8) 24,000 1,032,000 ----------------------------------------------------------------------------------------------------------------------------- Genzyme Corp. (8)(11) 25,200 1,571,850 ----------------------------------------------------------------------------------------------------------------------------- Johnson & Johnson 13,500 1,155,937 ----------------------------------------------------------------------------------------------------------------------------- NBTY, Inc. (8) 217,800 1,034,550 ----------------------------------------------------------------------------------------------------------------------------- Smithkline Beecham PLC, ADR Equity Units (one ADR represents five equity units, each unit consists of one cl. B ordinary share and one share of cumulative participating preferred stock) (9) 17,000 943,500 ----------- 13,681,451
39 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services - 2.9% ----------------------------------------------------------------------------------------------------------------------------- Biomet, Inc. (8) 52,100 $ 931,287 ----------------------------------------------------------------------------------------------------------------------------- Community Psychiatric Centers 50,000 612,500 ----------------------------------------------------------------------------------------------------------------------------- Manor Care, Inc. (11) 33,185 1,161,475 ----------------------------------------------------------------------------------------------------------------------------- Medtronic, Inc. (11) 18,700 1,044,862 ----------------------------------------------------------------------------------------------------------------------------- Nellcor Puritan Bennett, Inc. (8)(11) 6,600 382,800 ----------------------------------------------------------------------------------------------------------------------------- NovaCare, Inc. (8) 14,900 76,362 ----------------------------------------------------------------------------------------------------------------------------- Pyxis Corp. (8) 51,900 759,037 ----------------------------------------------------------------------------------------------------------------------------- Sofamor Danek Group, Inc. (8)(11) 45,000 1,276,875 ----------------------------------------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. (11) 49,000 2,278,500 ----------------------------------------------------------------------------------------------------------------------------- Value Health, Inc. (8) 36,500 1,003,750 ----------------------------------------------------------------------------------------------------------------------------- Wellpoint Health Networks, Inc., Cl. A (8) 45,700 1,468,112 ----------- 10,995,560 - ----------------------------------------------------------------------------------------------------------------------------------- Household Goods - 0.3% ----------------------------------------------------------------------------------------------------------------------------- Procter & Gamble Co. 12,000 996,000 ----------------------------------------------------------------------------------------------------------------------------- Scott's Liquid Gold, Inc. 57,200 164,450 ----------- 1,160,450 - ----------------------------------------------------------------------------------------------------------------------------------- Tobacco - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Philip Morris Cos., Inc. (11) 20,000 1,810,000 - ----------------------------------------------------------------------------------------------------------------------------------- Energy - 2.9% - ----------------------------------------------------------------------------------------------------------------------------------- Energy Services & Producers - 1.0% ----------------------------------------------------------------------------------------------------------------------------- Coflexip SA, Sponsored ADR 42,300 798,413 ----------------------------------------------------------------------------------------------------------------------------- Kerr-McGee Corp. 12,000 762,000 ----------------------------------------------------------------------------------------------------------------------------- Landmark Graphics Corp. (8) 53,900 1,253,175 ----------------------------------------------------------------------------------------------------------------------------- Western Atlas, Inc. (8) 22,000 1,111,000 ----------- 3,924,588 - ----------------------------------------------------------------------------------------------------------------------------------- Oil-Integrated - 1.9% ----------------------------------------------------------------------------------------------------------------------------- Ashland Coal, Inc. 19,600 418,950 ----------------------------------------------------------------------------------------------------------------------------- Ashland, Inc. 25,000 878,125 ----------------------------------------------------------------------------------------------------------------------------- Atlantic Richfield Co. 11,900 1,317,925 ----------------------------------------------------------------------------------------------------------------------------- Louisiana Land & Exploration Co. 23,100 990,413 ----------------------------------------------------------------------------------------------------------------------------- Royal Dutch Petroleum Co. 10,000 1,411,250 ----------------------------------------------------------------------------------------------------------------------------- Saga Petroleum AS, Cl. A 12,000 160,498 ----------------------------------------------------------------------------------------------------------------------------- Saga Petroleum AS, Cl. B 19,000 237,581 ----------------------------------------------------------------------------------------------------------------------------- Total SA, Sponsored ADR 22,701 771,834 ----------------------------------------------------------------------------------------------------------------------------- Unocal Corp. 22,000 640,750 ----------------------------------------------------------------------------------------------------------------------------- Yukong Ltd., GDR (7)(8) 27,500 268,125 ----------------------------------------------------------------------------------------------------------------------------- Yukong Ltd., GDR (8) 958 9,131 ----------------------------------------------------------------------------------------------------------------------------- Yukong Ltd., GDR (8) 2,336 22,265 ----------- 7,126,847 - ----------------------------------------------------------------------------------------------------------------------------------- Financial - 5.0% - ----------------------------------------------------------------------------------------------------------------------------------- Banks - 2.1% ----------------------------------------------------------------------------------------------------------------------------- Banco Frances del Rio de la Plata SA 115,000 1,017,946 ----------------------------------------------------------------------------------------------------------------------------- Chemical Banking Corp. 52,700 3,096,125 ----------------------------------------------------------------------------------------------------------------------------- Deutsche Bank, Sponsored ADR 13,250 629,229 ----------------------------------------------------------------------------------------------------------------------------- NationsBank Corp. 47,200 3,286,300 ----------- 8,029,600
40 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ----------------------------------------------------------------------------------------------------------------------------------- Financial (Continued) - ----------------------------------------------------------------------------------------------------------------------------------- Diversified Financial - 1.3% ----------------------------------------------------------------------------------------------------------------------------- American Express Co. 35,000 $1,448,125 ----------------------------------------------------------------------------------------------------------------------------- H & R Block, Inc. 32,400 1,312,200 ----------------------------------------------------------------------------------------------------------------------------- IRSA Inversiones y Representaciones, SA 214,506 540,659 ----------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. (11) 9,800 499,800 ----------------------------------------------------------------------------------------------------------------------------- Salomon, Inc. 18,400 653,200 ----------------------------------------------------------------------------------------------------------------------------- Santa Anita Realty Enterprises, Inc., Units (each unit consists of one share of Santa Anita Operating Co. and one share of Santa Anita Realty Enterprises, Inc., common stock) (9)(10) 40,000 475,000 ----------- 4,928,984 - ----------------------------------------------------------------------------------------------------------------------------------- Insurance - 1.6% ----------------------------------------------------------------------------------------------------------------------------- Aetna Life & Casualty Co. (11) 9,000 623,250 ----------------------------------------------------------------------------------------------------------------------------- American International Group, Inc. (11) 16,200 1,498,500 ----------------------------------------------------------------------------------------------------------------------------- American Re Corp. (11) 48,000 1,962,000 ----------------------------------------------------------------------------------------------------------------------------- Berkley (W.R.) Corp. 21,000 1,128,750 ----------------------------------------------------------------------------------------------------------------------------- UNUM Corp. 13,600 748,000 ----------- 5,960,500 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial - 5.2% - ----------------------------------------------------------------------------------------------------------------------------------- Electrical Equipment - 0.5% ----------------------------------------------------------------------------------------------------------------------------- Core Industries, Inc. 50,000 643,750 ----------------------------------------------------------------------------------------------------------------------------- General Electric Co. 18,000 1,296,000 ----------- 1,939,750 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Materials - 1.2% ----------------------------------------------------------------------------------------------------------------------------- Corning, Inc. 37,200 1,190,400 ----------------------------------------------------------------------------------------------------------------------------- Insituform Technologies, Cl. A (8) 34,500 401,063 ----------------------------------------------------------------------------------------------------------------------------- Interpool, Inc. 37,500 670,313 ----------------------------------------------------------------------------------------------------------------------------- Owens-Corning Fiberglass Corp. (8)(11) 30,000 1,346,250 ----------------------------------------------------------------------------------------------------------------------------- U.S. Can Corp. (8) 65,000 877,500 ----------------------------------------------------------------------------------------------------------------------------- Walter Industries, Inc. (8) 2,645 34,716 ----------- 4,520,242 - ----------------------------------------------------------------------------------------------------------------------------------- Industrial Services - 0.3% ----------------------------------------------------------------------------------------------------------------------------- Ecolab, Inc. 23,400 702,000 ----------------------------------------------------------------------------------------------------------------------------- Huarte SA 50,150 226,534 ----------- 928,534 - ----------------------------------------------------------------------------------------------------------------------------------- Manufacturing - 1.9% ----------------------------------------------------------------------------------------------------------------------------- Citic Pacific Ltd. 216,000 738,910 ----------------------------------------------------------------------------------------------------------------------------- Griffon Corp. (8) 80,000 720,000 ----------------------------------------------------------------------------------------------------------------------------- Harnischfeger Industries, Inc. (11) 21,000 698,250 ----------------------------------------------------------------------------------------------------------------------------- Hutchison Whampoa Ltd. 128,000 779,727 ----------------------------------------------------------------------------------------------------------------------------- Jardine Matheson Holdings Ltd. 50,468 345,706 ----------------------------------------------------------------------------------------------------------------------------- Johnstown America Industries, Inc. (8) 20,000 100,000 ----------------------------------------------------------------------------------------------------------------------------- Mannesmann AG 3,287 1,048,375 ----------------------------------------------------------------------------------------------------------------------------- Pacific Dunlop Ltd. 400,000 937,273 ----------------------------------------------------------------------------------------------------------------------------- Tenneco, Inc. 26,000 1,290,250 ----------------------------------------------------------------------------------------------------------------------------- Westinghouse Air Brake Co. 55,000 584,375 ----------- 7,242,866
41 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ------------------------------------------------------------------------------------------------- Industrial (Continued) Transportation - 1.3% ------------------------------------------------------------------------------------------- Airborne Freight Corp. 41,000 $1,091,625 ------------------------------------------------------------------------------------------- Burlington Northern Santa Fe Corp. 13,600 1,060,800 ------------------------------------------------------------------------------------------- Consolidated Freightways, Inc. (11) 51,800 1,372,700 ------------------------------------------------------------------------------------------- Stolt-Nielsen SA 44,100 1,273,388 ----------- 4,798,513 - ------------------------------------------------------------------------------------------------- Technology - 11.9% - ------------------------------------------------------------------------------------------------- Aerospace/Defense - 0.3% ------------------------------------------------------------------------------------------- McDonnell Douglas Corp. 3,600 331,200 ------------------------------------------------------------------------------------------- Rockwell International Corp. 17,900 946,463 -------------- 1,277,663 - --------------------------------------------------------------------------------------------------- Computer Hardware - 2.7% --------------------------------------------------------------------------------------------- Amdahl Corp. (8) 70,000 595,000 --------------------------------------------------------------------------------------------- Bay Networks, Inc. (8)(11) 18,007 740,538 --------------------------------------------------------------------------------------------- Cabletron Systems, Inc. (8)(11) 17,000 1,377,000 --------------------------------------------------------------------------------------------- EMC Corp. (8) 39,600 608,850 --------------------------------------------------------------------------------------------- International Business Machines Corp. 14,400 1,321,200 --------------------------------------------------------------------------------------------- Moore Corp. Ltd. 31,600 588,550 --------------------------------------------------------------------------------------------- Norand Corp. (8) 28,400 333,700 --------------------------------------------------------------------------------------------- Proxima Corp. (8) 50,000 1,106,250 --------------------------------------------------------------------------------------------- Seagate Technology, Inc. (8)(11) 11,700 555,750 --------------------------------------------------------------------------------------------- Storage Technology Corp. (New) (8) 33,000 787,875 --------------------------------------------------------------------------------------------- Sun Microsystems, Inc. (8)(11) 24,400 1,113,250 --------------------------------------------------------------------------------------------- Xerox Corp. (11) 8,500 1,164,500 ------------- 10,292,463 - --------------------------------------------------------------------------------------------------- Computer Software - 3.9% --------------------------------------------------------------------------------------------- BMC Software, Inc. (8)(11) 13,000 555,750 --------------------------------------------------------------------------------------------- Computer Associates International, Inc. 28,650 1,629,469 --------------------------------------------------------------------------------------------- Davidson & Associates, Inc. 32,000 704,000 --------------------------------------------------------------------------------------------- Electronic Arts, Inc. (8)(11) 35,900 937,888 --------------------------------------------------------------------------------------------- Informix Corp. (8)(11) 32,000 960,000 --------------------------------------------------------------------------------------------- Marcam Corp. (8) 72,000 1,098,000 --------------------------------------------------------------------------------------------- Microsoft Corp. (8)(11) 5,400 473,850 --------------------------------------------------------------------------------------------- Nintendo Co. Ltd. 32,000 2,435,249 --------------------------------------------------------------------------------------------- Novell, Inc. (8) 106,400 1,516,200 --------------------------------------------------------------------------------------------- PsiNet, Inc. (8) 23,000 526,125 --------------------------------------------------------------------------------------------- Structural Dynamics Research Corp. (8)(11) 48,000 1,410,000 --------------------------------------------------------------------------------------------- Symantec Corp. (8)(11) 107,364 2,496,213 --------------- 14,742,744 - --------------------------------------------------------------------------------------------------- Electronics - 3.5% --------------------------------------------------------------------------------------------- Advanced Micro Devices, Inc. (11) 38,000 627,000 --------------------------------------------------------------------------------------------- CAE, Inc. 115,433 878,121 --------------------------------------------------------------------------------------------- General Motors Corp., Cl. H 23,100 1,134,788 --------------------------------------------------------------------------------------------- Hewlett-Packard Co. (11) 15,000 1,256,250 --------------------------------------------------------------------------------------------- Integrated Silicon Solution, Inc. (8) 30,600 512,072 --------------------------------------------------------------------------------------------- Intel Corp. (11) 55,400 3,143,950 --------------------------------------------------------------------------------------------- Kyocera Corp. 10,000 743,565 --------------------------------------------------------------------------------------------- Philips Electronics NV 29,000 1,049,290
42 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ------------------------------------------------------------------------------------------------- Technology (Continued) - ------------------------------------------------------------------------------------------------- Electronics (Continued) --------------------------------------------------------------------------------------------- Samsung Electronics, GDS (New) (7)(8) 442 $ 40,443 --------------------------------------------------------------------------------------------- Samsung Electronics, GDR (7)(8) 128 11,712 --------------------------------------------------------------------------------------------- Samsung Electronics, GDS (7)(8) 34,978 2,037,469 --------------------------------------------------------------------------------------------- Samsung Electronics Ltd., Sponsored GDR (7) 649 59,384 --------------------------------------------------------------------------------------------- Texas Instruments, Inc. 10,000 517,500 --------------------------------------------------------------------------------------------- VLSI Technology, Inc. (8)(11) 35,600 645,250 --------------------------------------------------------------------------------------------- Xilinx, Inc. (11) 18,200 555,100 --------------- 13,211,894 - --------------------------------------------------------------------------------------------------- Telecommunications-Technology - 1.5% --------------------------------------------------------------------------------------------- Airtouch Communications, Inc. (8) 50,000 1,412,500 --------------------------------------------------------------------------------------------- AT&T Corp. 7,200 466,200 --------------------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A 6,600 120,038 --------------------------------------------------------------------------------------------- ECI Telecommunications Ltd. (11) 51,000 1,163,438 --------------------------------------------------------------------------------------------- Kinnevik Investments AB Free, Series B 24,500 767,103 --------------------------------------------------------------------------------------------- MCI Communications Corp. (11) 47,000 1,227,875 --------------------------------------------------------------------------------------------- Tellabs, Inc. 16,000 592,000 ---------------- 5,749,154 - --------------------------------------------------------------------------------------------------- Utilities - 1.3% - --------------------------------------------------------------------------------------------------- Electric Utilities - 0.4% --------------------------------------------------------------------------------------------- Public Service Enterprise Group, Inc. 35,000 1,071,875 --------------------------------------------------------------------------------------------- Verbund Oest Electriz 9,400 565,665 ---------------- 1,637,540 - --------------------------------------------------------------------------------------------------- Gas Utilities - 0.3% --------------------------------------------------------------------------------------------- Hong Kong & China Gas 293,760 473,014 --------------------------------------------------------------------------------------------- Southwestern Energy Co. 60,000 765,000 ---------------- 1,238,014 - --------------------------------------------------------------------------------------------------- Telephone Utilities - 0.6% --------------------------------------------------------------------------------------------- BCE, Inc. 33,000 1,138,500 --------------------------------------------------------------------------------------------- US West Communications Group 28,000 1,001,000 ---------------- 2,139,500 ---------------- Total Common Stocks (Cost $142,464,823) 178,983,762 - --------------------------------------------------------------------------------------------------- Preferred Stocks - 1.2% - --------------------------------------------------------------------------------------------------- Alumax, Inc., $4.00 Cv., Series A 8,000 1,032,000 --------------------------------------------------------------------------------------------- Cyprus Amax Minerals Co., $4.00 Cv., Series A 24,000 1,422,000 --------------------------------------------------------------------------------------------- Delta Air Lines, Inc., $3.50 Cv. Depositary Shares, Series C 13,200 783,750 --------------------------------------------------------------------------------------------- K-III Communications Corp., Sr. Exchangeable, Series A 20,000 545,000 --------------------------------------------------------------------------------------------- Pantry Pride, Inc., $14.875 Exchangeable, Series B 8,000 828,000 ---------------- Total Preferred Stocks (Cost $4,053,627) 4,610,750 Units - --------------------------------------------------------------------------------------------------- Rights, Warrants and Certificates - 0.0% - --------------------------------------------------------------------------------------------------- American Telecasting, Inc. Wts., Exp. 6/99 6,000 36,000 --------------------------------------------------------------------------------------------- Gaylord Container Corp. Wts., Exp. 7/96 9,232 69,240 --------------------------------------------------------------------------------------------- Icon Health & Fitness, Inc. Wts., Exp. 11/99 (7) 1,000 25,000
43 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Market Value Shares (Note 1) - ------------------------------------------------------------------------------------------------- Rights, Warrants and Certificates (Continued) - --------------------------------------------------------------------------------------------------- People's Choice TV Corp. Wts., Exp. 6/00 500 $ 5,000 --------------------------------------------------------------------------------------------- Terex Corp. Rts., Exp. 5/02 (7) 4,000 8,000 ---------------- Total Rights, Warrants and Certificates (Cost $20,771) 143,240 Principal Amount(1) - --------------------------------------------------------------------------------------------------- Repurchase Agreement - 13.7% - --------------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $52,234,220 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $28,334,538, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $17,171,411, and U.S. Treasury Bills maturing 11/14/96, with a value of $7,786,989(Cost $52,200,000) $52,200,000 52,200,000 --------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $336,724,928) 99.4% 378,826,790 --------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.6 2,436,374 -------------- ---------------- Net Assets 100.0% $381,263,164 ============== ================
1. Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD - Australian Dollar ITL - Italian Lira CAD - Canadian Dollar MXP - Mexican Peso DKK - Danish Krone PLZ - Polish Zloty GBP - British Pound Sterling ZAR - Zaire Makuta 2. Represents the current interest rate for a variable rate security. 3. Interest or dividend is paid in kind. 4. Represents the current interest rate for an increasing rate security. 5. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 6. Denotes a step bond: a zero coupon bond that converts to a fixed rate of interest at a designated future date. 7. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $5,766,383 or 1.51% of the Fund's net assets, at December 31, 1995. 8. Non-income producing security. 9. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. 10. Identifies issues considered to be illiquid--See Note 7 of Notes to Financial Statements. 44 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995 - -------------------------------------------------------------------------------- 11. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
Shares Subject Expiration Exercise Premium Market Value To Call Date Price Received See Note 1 - --------------------------------------------------------------------------------------------------------------- AMR Corp. 2,800 1/96 $ 80.00 $ 13,300 $ 1,225 Advanced Micro Devices, Inc. 6,400 1/96 45.00 13,408 400 Aetna Life & Casualty Co. 4,400 4/96 75.00 11,143 5,500 American International Group, Inc. 2,400 2/96 80.00 18,527 46,350 American Re Corp. 9,600 7/96 45.00 17,711 16,800 BMC Software, Inc. 13,000 2/96 50.00 45,108 17,875 Bay Networks, Inc. 6,000 6/96 50.00 41,069 28,500 Cabletron Systems, Inc. 3,000 1/96 60.00 13,035 61,500 Cheesecake Factory (The) 13,000 1/96 35.00 18,297 2,438 Consolidated Freightways, Inc. 12,200 6/96 30.00 21,813 33,550 ECI Telecommunications Ltd. 10,200 2/96 22.50 21,368 22,950 Electronic Arts, Inc. 10,800 3/96 35.00 79,326 8,100 General Motors Corp 4,400 6/96 55.00 11,418 11,550 Genzyme Corp. 3,700 1/96 65.00 19,313 6,013 Harnischfeger Industries, Inc. 5,200 2/96 40.00 7,451 975 Harnischfeger Industries, Inc. 5,200 5/96 35.00 10,894 8,775 Hewlett-Packard Co. 3,000 5/96 105.00 18,659 6,375 IMC Global, Inc. 7,600 1/96 32.50 8,057 62,700 IMC Global, Inc. 7,600 4/96 37.50 16,510 38,000 Informix Corp. 4,000 2/96 35.00 14,880 4,000 Informix Corp. 4,000 2/96 40.00 9,130 1,750 Informix Corp. 8,000 2/96 27.50 25,379 34,000 Informix Corp. 3,000 5/96 35.00 6,660 9,000 Intel Corp. 11,000 4/96 75.00 18,919 8,938 Louisiana-Pacific Corp. 8,000 2/96 25.00 19,259 9,500 Louisiana-Pacific Corp. 8,000 2/96 30.00 5,840 3,500 MCI Communications Corp. 10,000 4/96 30.00 12,200 5,000 Manor Care, Inc. 8,200 1/96 35.00 9,061 7,688 Medtronic, Inc. 5,000 2/96 60.00 19,849 4,375 Medtronic, Inc. 4,000 5/96 65.00 10,528 6,500 Merrill Lynch & Co., Inc. 5,500 1/96 55.00 20,459 2,063 Microsoft Corp. 1,800 1/96 105.00 17,945 113 Microsoft Corp. 1,800 1/96 115.00 9,396 113 Nellcor Puritan Bennett, Inc. 6,600 4/96 60.00 13,002 22,275 Owens-Corning Fiberglass Corp. 6,000 3/96 45.00 10,320 13,875 Philip Morris Cos., Inc. 4,000 3/96 95.00 10,130 8,000 Sara Lee Corp. 10,000 7/96 35.00 13,449 8,750 Seagate Technology, Inc. 6,000 6/96 55.00 33,569 20,250 Sofamor Danek Group, Inc. 18,000 6/96 30.00 53,458 67,500 Structural Dynamics Research Corp. 2,400 2/96 25.00 7,128 10,800 Structural Dynamics Research Corp. 7,200 5/96 30.00 15,083 24,300 Sun Microsystems, Inc. 7,600 1/96 25.00 19,140 162,450 Sun Microsystems, Inc. 6,000 4/96 35.00 18,659 78,000 Sun Microsystems, Inc. 7,000 7/96 47.50 56,331 61,250 Symantec Corp. 10,200 1/96 30.00 30,293 638 Symantec Corp. 10,200 1/96 35.00 18,818 1,913
45 Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund Statement of Investments (Continued) December 31, 1995
Shares Subject Expiration Exercise Premium Market Value To Call Date Price Received See Note 1 - --------------------------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 9,800 4/96 $ 47.50 $ 31,555 $ 28,175 VLSI Technology, Inc. 6,400 4/96 25.00 15,807 7,600 VLSI Technology, Inc. 21,600 4/96 40.00 99,249 4,050 Xilinx, Inc. 3,400 6/96 35.00 19,872 15,725 Xilinx, Inc. 3,400 6/96 30.00 14,348 22,525 Xerox Corp. 1,700 7/96 150.00 13,972 9,133 ---------- ---------- $1,100,095 $1,043,325 =========== ==========
See accompanying Notes to Financial Statements. 46 Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund Statement of Investments December 31, 1995
Market Value Shares See Note 1 - ------------------------------------------------------------------------------------------------- Common Stocks - 95.7% - ------------------------------------------------------------------------------------------------- Basic Materials - 1.4% - ------------------------------------------------------------------------------------------------- Chemicals - 0.4% Minerals Technologies, Inc. 40,000 $1,460,000 ------------------------------------------------------------------------------------------- Gold - 0.4% ------------------------------------------------------------------------------------------- Newmont Mining Corp. 33,000 1,493,250 - ------------------------------------------------------------------------------------------------- Metals - 0.3% ------------------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., Cl. B 37,000 1,040,625 - ------------------------------------------------------------------------------------------------- Paper - 0.3% ------------------------------------------------------------------------------------------- Aracruz Celulose SA, Sponsored ADR, Cl. B 125,000 968,750 - ------------------------------------------------------------------------------------------------- Consumer Cyclicals - 8.7% - ------------------------------------------------------------------------------------------------- Autos & Housing - 2.7% ------------------------------------------------------------------------------------------- Ciadea SA 199,998 1,040,195 ------------------------------------------------------------------------------------------- General Motors Corp. 19,000 1,004,625 ------------------------------------------------------------------------------------------- Mahindra & Mahindra Ltd., GDR (1)(2) 200,000 1,183,020 ------------------------------------------------------------------------------------------- Mitsubishi Motors Corp. 400,000 3,261,217 ------------------------------------------------------------------------------------------- Volkswagen AG 10,000 3,360,635 ------------- 9,849,692 - ------------------------------------------------------------------------------------------------- Leisure & Entertainment - 0.6% - ------------------------------------------------------------------------------------------------- Filmes Lusomundo SA 205,200 2,197,808 - ------------------------------------------------------------------------------------------------- Media - 1.4% ------------------------------------------------------------------------------------------- Grupo Televisa SA, Sponsored ADR (2) 10,900 245,250 ------------------------------------------------------------------------------------------- News Corp. Ltd., ADR 150,000 3,206,250 ------------------------------------------------------------------------------------------- United International Holdings, Inc., Cl. A (1) 97,000 1,430,750 ------------- 4,882,250 - ------------------------------------------------------------------------------------------------- Retail: General - 1.7% ------------------------------------------------------------------------------------------- Ito-Yokado Co., Ltd. 55,000 3,391,123 ------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 120,000 2,685,000 ------------- 6,076,123 - ------------------------------------------------------------------------------------------------- Retail: Specialty - 2.3% ------------------------------------------------------------------------------------------- FamilyMart Co. 45,000 2,032,929 ------------------------------------------------------------------------------------------- Giordano International Ltd. 1,700,000 1,451,125 ------------------------------------------------------------------------------------------- Jurong Shipyard Ltd. 140,000 1,078,852 ------------------------------------------------------------------------------------------- Jusco Co. 85,000 2,216,639 ------------------------------------------------------------------------------------------- Moebel Walther AG, Preference 7,312 240,110 ------------------------------------------------------------------------------------------- Prodega AG 960 1,209,750 ------------- 8,229,405 - ------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 20.9% - ------------------------------------------------------------------------------------------------- Beverages - 2.7% ------------------------------------------------------------------------------------------- Allied Domecq PLC 274,400 2,236,675 ------------------------------------------------------------------------------------------- Cadbury Schweppes PLC 400,000 3,300,827 ------------------------------------------------------------------------------------------- Hellenic Bottling Co., SA 28,300 927,095 ------------------------------------------------------------------------------------------- LVMH Moet Hennessy Louis Vuitton 15,000 3,128,593 ------------- 9,593,190 - ------------------------------------------------------------------------------------------------- Food - 3.7% ------------------------------------------------------------------------------------------- Groupe Danone 20,000 3,304,449 ------------------------------------------------------------------------------------------- Molinos Rio de la Plata SA, Cl. B 301,343 2,471,490 ------------------------------------------------------------------------------------------- Nestle SA 4,000 4,435,750 ------------------------------------------------------------------------------------------- PT Indofood Sukses Makmur (1) 417,750 2,009,795
47 Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares See Note 1 - ------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals (Continued) - ------------------------------------------------------------------------------------------------- Food (Continued) ------------------------------------------------------------------------------------------- Universal Robina Corp. 2,500,000 $ 1,239,079 ----------------- 13,460,563 - ------------------------------------------------------------------------------------------------- Healthcare/Drugs - 9.0% ------------------------------------------------------------------------------------------- Amgen, Inc. 40,000 2,375,000 ------------------------------------------------------------------------------------------- Astra AB Free, Series A 100,000 3,998,669 ------------------------------------------------------------------------------------------- Ciba-Geigy AG 10,000 8,821,093 ------------------------------------------------------------------------------------------- Genzyme Corp. (1) 60,000 3,742,500 ------------------------------------------------------------------------------------------- Johnson & Johnson 11,500 984,687 ------------------------------------------------------------------------------------------- Pharmavit GDS (5) 114,000 1,368,000 ------------------------------------------------------------------------------------------- Plant Genetics Systems (1)(3) 89,104 1,061,140 ------------------------------------------------------------------------------------------- Sankyo Co. Ltd. 140,000 3,148,761 ------------------------------------------------------------------------------------------- Sanofi SA 77,998 5,006,479 ------------------------------------------------------------------------------------------- Taisho Pharmaceutical Co. 100,000 1,977,670 ----------------- 32,483,999 - ------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services - 3.6% ------------------------------------------------------------------------------------------- Olympus Optical Co., Ltd. 200,000 1,938,892 ------------------------------------------------------------------------------------------- Pharmacia & Upjohn, Inc. (1) 25,500 988,125 ------------------------------------------------------------------------------------------- Rhoen Klinikum AG, Non-vtg. Preference 7,920 691,690 ------------------------------------------------------------------------------------------- Stryker Corp. 19,000 997,500 ------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 60,000 2,790,000 ------------------------------------------------------------------------------------------- United Healthcare Corp. 65,000 4,257,500 ------------------------------------------------------------------------------------------- United States Surgical Corp. 60,000 1,282,500 ----------------- 12,946,207 - ------------------------------------------------------------------------------------------------- Household Goods - 0.9% ------------------------------------------------------------------------------------------- Kao Corp. 250,000 3,102,228 - ------------------------------------------------------------------------------------------------- Tobacco - 1.0% ------------------------------------------------------------------------------------------- B.A.T. Industries PLC 400,000 3,524,401 - ------------------------------------------------------------------------------------------------- Energy - 3.3% - ------------------------------------------------------------------------------------------------- Energy Services & Producers - 3.0% ------------------------------------------------------------------------------------------- Baker Hughes, Inc. 80,000 1,950,000 ------------------------------------------------------------------------------------------- Coflexip SA, Sponsored ADR 105,000 1,981,875 ------------------------------------------------------------------------------------------- Compagnie Generale de Geophysique SA (1) 24,060 792,098 ------------------------------------------------------------------------------------------- Global Marine, Inc. (1) 117,500 1,028,125 ------------------------------------------------------------------------------------------- Transocean AS (1) 292,360 5,067,135 ----------------- 10,819,233 - ------------------------------------------------------------------------------------------------- Oil-Integrated - 0.3% ------------------------------------------------------------------------------------------- Unocal Corp. 34,000 990,250 - ------------------------------------------------------------------------------------------------- Financial - 17.4% - ------------------------------------------------------------------------------------------------- Banks - 4.9% ------------------------------------------------------------------------------------------- Banco Bradesco SA, Preference 150,000,000 1,311,839 ------------------------------------------------------------------------------------------- Banco de Galicia Y Buenos Aires, ADR 71,000 1,464,375 ------------------------------------------------------------------------------------------- Banco Frances del Rio de la Plata SA, ADR 55,000 1,478,125 ------------------------------------------------------------------------------------------- Banco Wiese, Sponsored ADR 60 375 ------------------------------------------------------------------------------------------- Chase Manhattan Corp. 50,000 3,031,250 ------------------------------------------------------------------------------------------- Citicorp 45,000 3,026,250 ------------------------------------------------------------------------------------------- HSBC Holdings PLC 126,101 1,908,166 ------------------------------------------------------------------------------------------- Northern Trust Corp. 18,700 1,047,200 ------------------------------------------------------------------------------------------- Skandinaviska Enskilda Banken Group 250,000 2,074,781
48 Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares See Note 1 - ------------------------------------------------------------------------------------------------- Financial (Continued) - ------------------------------------------------------------------------------------------------- Banks (Continued) ------------------------------------------------------------------------------------------- Turkiye Garanti Bankasi AS (New) (2) 288,000 $ 2,411,885 ----------------- 17,754,246 - ------------------------------------------------------------------------------------------------- Diversified Financial - 5.1% ------------------------------------------------------------------------------------------- ABN Amro Holding NV 70,000 3,192,162 ------------------------------------------------------------------------------------------- American Express Co. 24,500 1,013,687 ------------------------------------------------------------------------------------------- First NIS Regional Fund (2)(4) 180,000 1,080,000 ------------------------------------------------------------------------------------------- Internationale Nederlanden Groep NV 35,000 2,340,627 ------------------------------------------------------------------------------------------- IRSA Inversiones y Representaciones, SA 1,028,807 2,593,094 ------------------------------------------------------------------------------------------- MBNA Corp. 50,000 1,843,750 ------------------------------------------------------------------------------------------- Nomura Securities Co. Ltd. 300,000 6,543,762 ----------------- 18,607,082 - ------------------------------------------------------------------------------------------------- Insurance - 7.4% ------------------------------------------------------------------------------------------- American International Group, Inc. 35,000 3,237,500 ------------------------------------------------------------------------------------------- Mapfre Vida Seguros 25,000 1,483,727 ------------------------------------------------------------------------------------------- Marschollek, Lautenschlaeger und Partner AG 5,587 3,864,472 ------------------------------------------------------------------------------------------- National Mutual Asia Ltd. 2,634,000 2,384,656 ------------------------------------------------------------------------------------------- Reinsurance Australia Corp. Ltd. 4,500,200 9,975,702 ------------------------------------------------------------------------------------------- Skandia Forsakrings AB 100,000 2,708,532 ------------------------------------------------------------------------------------------- Swiss Reinsurance 2,500 2,915,741 ----------------- 26,570,330 - ------------------------------------------------------------------------------------------------- Industrial - 17.8% - ------------------------------------------------------------------------------------------------- Electrical Equipment - 2.9% ------------------------------------------------------------------------------------------- Murata Mfg. Co. Ltd. 140,000 5,157,454 ------------------------------------------------------------------------------------------- Ushio, Inc. 100,000 1,192,419 ------------------------------------------------------------------------------------------- Yokogawa Electric Corp. 425,000 4,021,263 ----------------- 10,371,136 - ------------------------------------------------------------------------------------------------- Industrial Services - 6.5% ------------------------------------------------------------------------------------------- BIS SA (1) 81,025 6,014,276 ------------------------------------------------------------------------------------------- IHC Caland NV 80,000 2,694,965 ------------------------------------------------------------------------------------------- JGC Corp. 300,000 3,170,089 ------------------------------------------------------------------------------------------- Plettac AG 10,000 2,480,303 ------------------------------------------------------------------------------------------- VBH-Vereinigter Baubeschlag Handel AG 24,700 6,902,927 ------------------------------------------------------------------------------------------- WMX Technologies, Inc. 80,000 2,390,000 ------------- 23,652,560 - ------------------------------------------------------------------------------------------------- Manufacturing - 7.5% ------------------------------------------------------------------------------------------- Bobst Bearers AG 2,000 3,128,664 ------------------------------------------------------------------------------------------- Gildemeister AG (1) 13,862 1,259,057 ------------------------------------------------------------------------------------------- Measurex Corp. 63,800 1,802,350 ------------------------------------------------------------------------------------------- Mitsubishi Heavy Industries Ltd. 250,000 1,994,635 ------------------------------------------------------------------------------------------- Mori Seiki Co. Ltd. 160,000 3,614,095 ------------------------------------------------------------------------------------------- Powerscreen International PLC 1,330,100 8,002,313 ------------------------------------------------------------------------------------------- Traub AG (1) 33,750 3,065,444 ------------------------------------------------------------------------------------------- Valmet Corp., Cl. A 170,000 4,267,612 ----------------- 27,134,170 - ------------------------------------------------------------------------------------------------- Transportation - 0.9% ------------------------------------------------------------------------------------------- Brambles Industries Ltd. 180,000 2,008,441 ------------------------------------------------------------------------------------------- Lisnave-Estaleiros Navais de Lisbona SA (1) 450,950 1,267,856 ----------------- 3,276,297
49 Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares See Note 1 - ------------------------------------------------------------------------------------------------- Technology - 20.3% - ------------------------------------------------------------------------------------------------- Computer Hardware - 4.4% ------------------------------------------------------------------------------------------- Cabletron Systems, Inc. (1) 45,000 $ 3,645,000 ------------------------------------------------------------------------------------------- Digital Equipment Corp. (1) 60,000 3,847,500 ------------------------------------------------------------------------------------------- International Business Machines Corp. 35,000 3,211,250 ------------------------------------------------------------------------------------------- Olivetti & C. SpA (1) 5,000,000 4,012,231 ------------------------------------------------------------------------------------------- QUALCOMM, Inc. (1) 25,000 1,075,000 ---------------- 15,790,981 - ------------------------------------------------------------------------------------------------- Computer Software - 5.5% ------------------------------------------------------------------------------------------- Baan Co. NV (1) 30,000 1,357,500 ------------------------------------------------------------------------------------------- CSK Corp. 50,000 1,565,656 ------------------------------------------------------------------------------------------- First Data Corp. 87,118 5,826,016 ------------------------------------------------------------------------------------------- Ines Corp. (1) 60,000 1,099,352 ------------------------------------------------------------------------------------------- Nintendo Co. Ltd. 110,000 8,371,167 ------------------------------------------------------------------------------------------- Novell, Inc. (1) 119,800 1,707,150 ---------------- 19,926,841 - ------------------------------------------------------------------------------------------------- Electronics - 6.5% ------------------------------------------------------------------------------------------- General Motors Corp., Cl. H 40,000 1,965,000 ------------------------------------------------------------------------------------------- Intel Corp. 20,000 1,135,000 ------------------------------------------------------------------------------------------- Keyence Corp. 25,000 2,884,102 ------------------------------------------------------------------------------------------- Matsushita Electric Industrial Co. Ltd. (1) 180,000 2,931,605 ------------------------------------------------------------------------------------------- National Semiconductor Corp. (1) 150,000 3,337,500 ------------------------------------------------------------------------------------------- Philips Electronics NV 100,000 3,618,241 ------------------------------------------------------------------------------------------- Rohm Co. 45,000 2,543,342 ------------------------------------------------------------------------------------------- SGS-Thomson Microelectronics NV (1) 129,400 5,208,350 ---------------- 23,623,140 - ------------------------------------------------------------------------------------------------- Telecommunications-Technology - 3.9% ------------------------------------------------------------------------------------------- Airtouch Communications, Inc. (1) 70,000 1,977,500 ------------------------------------------------------------------------------------------- Hong Kong Telecommunications Ltd. 1,176,400 2,099,645 ------------------------------------------------------------------------------------------- Korea Mobile Telecommunications Corp. 3,000 3,380,740 ------------------------------------------------------------------------------------------- Millicom International Cellular SA (1) 121,678 3,711,179 ------------------------------------------------------------------------------------------- Millicom, Inc. (1) 25,000 -- ------------------------------------------------------------------------------------------- Petersburg Long Distance, Inc. (1) 187,000 888,250 ------------------------------------------------------------------------------------------- Technology Resources Industries Berhad (1) 650,000 1,920,121 ----------------- 13,977,435 - ------------------------------------------------------------------------------------------------- Utilities - 5.9% - ------------------------------------------------------------------------------------------------- Electric Utilities - 0.5% ------------------------------------------------------------------------------------------- Korea Electric Power Co. 50,000 1,985,240 - ------------------------------------------------------------------------------------------------- Gas Utilities - 1.3% ------------------------------------------------------------------------------------------- Hong Kong & China Gas 2,000,000 3,220,410 ------------------------------------------------------------------------------------------- Transportadora de Gas del Sur SA 99,300 1,278,488 ----------------- 4,498,898 - ------------------------------------------------------------------------------------------------- Telephone Utilities - 4.1% ------------------------------------------------------------------------------------------- Compania de Telefonos de Chile SA 27,500 2,279,063 ------------------------------------------------------------------------------------------- Tele Danmark AS, B Shares 30,000 1,640,261 ------------------------------------------------------------------------------------------- Telecom Italia Mobile SpA (1) 669,600 1,179,736 ------------------------------------------------------------------------------------------- Telecom Italia SpA 1,446,000 2,251,401 ------------------------------------------------------------------------------------------- Telecomunicacoes Brasileiras SA, Preference 5,800,000 279,283
50 Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares See Note 1 - ------------------------------------------------------------------------------------------------- Utilities (Continued) - ------------------------------------------------------------------------------------------------- Telephone Utilities (Continued) ------------------------------------------------------------------------------------------- Telefonica del Peru SA, Cl. B 3,400,031 $ 7,291,810 ----------------- 14,921,554 ----------------- Total Common Stocks (Cost $321,681,583) 345,207,884 Units - ------------------------------------------------------------------------------------------------- Rights, Warrants and Certificates - 0.0% - ------------------------------------------------------------------------------------------------- American Satellite Network, Inc. Wts., Exp. 6/99 6,250 -- ------------------------------------------------------------------------------------------- Banco Bradesco SA Rts., Exp. 1/96 3,507,301 -- ------------------------------------------------------------------------------------------- Plant Genetics, Inc. Wts., Exp. 12/99 (3) 60,000 119,402 ----------------- Total Rights, Warrants and Certificates (Cost $0) 119,402 Principal Amount(1) - ------------------------------------------------------------------------------------------------- Repurchase Agreement - 4.8% - ------------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 5.90%, dated 12/29/95, to be repurchased at $17,311,341 on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value of $9,390,565, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of $5,690,908, and U.S. Treasury Bills maturing 11/14/96, with a value of $2,580,745 (Cost $17,300,000) $ 17,300,000 17,300,000 ------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $338,981,583) 100.5% 362,627,286 ------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (0.5) (1,648,453) ------- ------------ Net Assets 100.0% $360,978,833 ======= ============ 1. Non-income producing security. 2. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $4,920,155 or 1.36% of the Fund's net assets, at December 31, 1995. 3. Identifies issues considered to be illiquid - See Note 7 of Notes to Financial Statements. 4. First NIS Regional Fund, a closed end fund listed on the Luxembourg Stock Exchange, is offered in installments. The Fund has entered the first and second installments (70% of the total commitment). The third installment is provisional and may be postponed indefinitely at the discretion of the Board of NIS Fund. 5. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer and is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended December 31, 1995. The aggregate fair value of all securities of affiliated companies as of December 31, 1995 amounted to $1,368,000. Transactions during the period in which the issuer was an affiliate are as follows:
Balance Balance December 31, 1994 Gross Additions Gross Reductions December 31, 1995 ------------------------------------- --------------------------------------- Dividend Shares Cost Shares Cost Shares Cost Shares Cost Income - ------------------------------------------------------------------------------------------------------------------------ Forsheda Group AB, Series B 100,000 $1,200,236 -- $ -- 100,000 $1,200,236 -- $ -- $ 46,900 Pharmavit GDS 100,000 1,300,000 24,000 216,000 10,000 115,000 114,000 1,401,000 15,263 ---------- ------- ---------- ------------ -------- $2,500,236 $216,000 $1,315,236 $ 1,401,000 $ 62,163 ========== ======== ========== =========== ========
See accompanying Notes to Financial Statements. 51 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments December 31, 1995
Principal Market Value Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Certificates of Deposit - 3.8% Canadian Imperial Bank CD, Zero Coupon, 28.674%, 2/8/96 (2)(3) HUF $ 33,025,000 $ 235,034 ---------------------------------------------------------------------------------------- Citibank CD: 13%, 5/6/96 (2) CLP 74,934,666 184,279 27.40%, 3/22/96 (2) HUF 34,877,500 255,278 ---------------------------------------------------------------------------------------- CS First Boston, Inc. CD, 15.75%, 6/11/96 (2)(4) IDR 667,200,000 291,809 ---------------------------------------------------------------------------------------- Indonesia (Republic of) Bank Negara CD, Zero Coupon, 15.914%, 6/17/96 (2)(3) IDR 500,000,000 201,253 ---------------------------------------------------------------------------------------- Krungthai Thanakit CD, Zero Coupon: 11.533%, 2/29/96 (2)(3) THB 6,500,000 251,931 11.668%, 2/29/96 (2)(3) THB 3,500,000 135,655 11.292%, 3/13/96 (2)(3) THB 19,000,000 736,565 ------------ Total Certificates of Deposit (Cost $2,323,164) 2,291,804 - ---------------------------------------------------------------------------------------------- Mortgage-Backed Obligations - 5.8% - ---------------------------------------------------------------------------------------------- Government Agency - 3.9% - ---------------------------------------------------------------------------------------------- FHLMC/FNMA/Sponsored - 2.6% ---------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Series 176, Cl. F, 8.95%, 3/15/20 40,342 40,720 ---------------------------------------------------------------------------------------- Federal National Mortgage Assn.: 7.50%, 8/1/25 1,175,762 1,204,780 Collateralized Mtg. Obligations, Series 1992-103, Cl. JB, 10/50%, 11/25/20 130,000 154,821 Series 1994-83, Cl. Z, 7.50%, 6/25/24 178,988 175,296 ------------ 1,575,617 - ---------------------------------------------------------------------------------------------- GNMA/Guaranteed - 1.3% ---------------------------------------------------------------------------------------- Government National Mortgage Assn., 6%, 11/20/25 747,956 755,436 - ---------------------------------------------------------------------------------------------- Private - 1.9% - ---------------------------------------------------------------------------------------------- Commercial - 1.5% ---------------------------------------------------------------------------------------- FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass- Through Certificates, Series 1994-C1, Cl. 2-G, 8.70%, 9/25/25 (4) 153,594 160,170 ---------------------------------------------------------------------------------------- Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through Certificates, Series 1995-C2, Cl. D, 8.06%, 6/15/21 (5) 496,835 509,644 ---------------------------------------------------------------------------------------- Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates: Series 1991-M6, Cl. B4, 7.477%, 6/25/21 (5) 37,880 37,869 Series 1992-CHF, Cl. D, 8.25%, 12/25/20 126,259 130,383 Series 1993-C1, Cl. D, 9.45%, 5/25/24 91,000 96,773 ------------ 934,839 - ---------------------------------------------------------------------------------------------- Multi-Family - 0.4% ---------------------------------------------------------------------------------------- Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 236,608 223,299 ------------ Total Mortgage-Backed Obligations (Cost $3,324,532) 3,489,191
52 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- U.S. Government Obligations - 29.0% - ---------------------------------------------------------------------------------------------- Treasury - 29.0% - ---------------------------------------------------------------------------------------------- U.S. Treasury Bonds: 11.625%, 11/15/02 $ 4,300,000 $ 5,799,625 13.125%, 5/15/01 2,800,000 3,796,623 6.875%, 8/15/25 1,200,000 1,354,124 8.125%, 8/15/19 163,000 205,024 ---------------------------------------------------------------------------------------- U.S. Treasury Nts.: 8.75%, 8/15/00 2,125,000 2,415,194 9.25%, 1/15/96 3,500,000 3,509,842 9.375%, 4/15/96 318,000 321,875 ------------ Total U.S. Government Obligations (Cost $16,639,999) 17,402,307 - ---------------------------------------------------------------------------------------------- Foreign Government Obligations - 30.1% - ---------------------------------------------------------------------------------------------- Argentina - 0.5% ---------------------------------------------------------------------------------------- Argentina (Republic of): Medium-Term Nts., 8%, 8/9/97 NLG 400,000 247,662 Bonds, Bonos del Tesoro, Series II, 5.898%, 9/1/97 (5) 30,000 28,984 ------------ 276,646 - ---------------------------------------------------------------------------------------------- Australia - 2.3% ---------------------------------------------------------------------------------------- New South Wales Treasury Corp. Gtd. Exch. Bonds, 12% 12/1/01 AUD 140,000 123,469 ---------------------------------------------------------------------------------------- Queensland Treasury Corp. Gtd. Nts., 8%, 8/14/01 AUD 1,068,000 795,672 ---------------------------------------------------------------------------------------- Treasury Corp. of Victoria Gtd. Bonds, 10.25%, 11/15/06 AUD 90,000 75,095 ---------------------------------------------------------------------------------------- Western Australia Treasury Corp. Gtd. Bonds, 10%, 7/15/05 AUD 450,000 368,968 ------------ 1,363,204 - ---------------------------------------------------------------------------------------------- Brazil - 1.4% ---------------------------------------------------------------------------------------- Brazil (Federal Republic of): Eligible Interest Bonds, 6.812%, 4/15/06 (5) 500,000 343,750 Interest Due and Unpaid Bonds, 6.688%, 1/1/01 (5) 522,500 450,003 ---------------------------------------------------------------------------------------- Petroquimica do Nordeste Sr. Unsec. Unsub. Nts., 9.50%, 10/19/01 50,000 46,437 ------------ 840,190 - ---------------------------------------------------------------------------------------------- Bulgaria - 0.8% ---------------------------------------------------------------------------------------- Bulgaria (Republic of) Interest Arrears Bonds, 6.75%, 7/28/11 (5)(6) 1,000,000 463,750 - ---------------------------------------------------------------------------------------------- Canada - 3.2% ---------------------------------------------------------------------------------------- Canada (Government of) Bonds: 10.25%, 12/1/98 CAD 320,000 260,206 10.25%, 3/1/96 CAD 180,000 133,274 9%, 12/1/04 CAD 460,000 380,792 Series A33, 11.50%, 9/1/00 CAD 1,170,000 1,027,961 9.75%, 10/1/97 CAD 180,000 140,585 ------------ 1,942,818 - ---------------------------------------------------------------------------------------------- Colombia - 0.4% ---------------------------------------------------------------------------------------- Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds, 6.875%, 7/1/01 (5)(7) 257,160 239,159
53 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Foreign Government Obligations (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Costa Rica - 0.5% ---------------------------------------------------------------------------------------- Central Bank of Costa Rica Principal Bonds, Series A, 6.25%, 2/21/10 $ 500,000 $ 310,000 - ---------------------------------------------------------------------------------------------- Denmark -2.0% ---------------------------------------------------------------------------------------- Denmark (Kingdom of) Bonds: 7%, 11/10/24 DKK 1,600,000 257,534 8%, 3/15/06 DKK 1,000,000 190,281 8%, 5/15/03 DKK 4,000,000 767,332 ------------ 1,215,147 - ---------------------------------------------------------------------------------------------- Ecuador - 0.7% ---------------------------------------------------------------------------------------- Ecuador (Republic of) Disc. Bonds, 6.812%, 2/28/25 (5) 800,000 407,000 - ---------------------------------------------------------------------------------------------- France - 0.2% ---------------------------------------------------------------------------------------- France (Government of) Obligation Assimilable du Tresor Debs.: 8.50%, 10/25/08 FRF 200,000 46,782 8.50%, 4/25/03 FRF 200,000 45,722 ------------ 92,504 - ---------------------------------------------------------------------------------------------- Germany - 1.2% ---------------------------------------------------------------------------------------- Germany (Republic of) Bonds: 7.75%, 10/1/04 DEM 480,000 368,465 Series 86, 6%, 6/20/16 DEM 100,000 64,327 Series 94, 7.50%. 11/11/04 DEM 400,000 307,809 ------------ 740,601 - ---------------------------------------------------------------------------------------------- Great Britain - 1.5% ---------------------------------------------------------------------------------------- United Kingdom: Treasury Nts., 9.50%, 4/18/05 GBP 70,000 123,286 GILT, 10%, 9/8/03 GBP 425,000 765,432 ------------ 888,718 - ---------------------------------------------------------------------------------------------- Italy - 2.7% ---------------------------------------------------------------------------------------- Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali: 10.50%, 7/15/00 ITL 315,000,000 200,151 11.50%, 3/1/03 ITL 965,000,000 634,757 10.50%, 7/15/98 ITL 1,260,000,000 800,129 ------------ 1,635,037 - ---------------------------------------------------------------------------------------------- Jamaica - 0.1% ---------------------------------------------------------------------------------------- Jamaica (Government of) 1990 Refinancing Agreement Nts., Tranche A, 6.75%, 10/16/00 (5)(7) 87,500 78,750 - ---------------------------------------------------------------------------------------------- Jordan - 0.9% ---------------------------------------------------------------------------------------- Hashemite Kingdom of Jordan: Disc. Bonds, 6.437%, 12/23/23 (5) 500,000 310,000 Par Bonds, 4%, 12/23/23 (8) 500,000 241,875 ------------ 551,875 - ---------------------------------------------------------------------------------------------- Mexico - 1.6% ---------------------------------------------------------------------------------------- Banco Nacional de Comercio Exterior SNC: International Finance BV Gtd. Bonds, 10.875%, 6/23/97 (4)(5) 250,000 254,687 Zero Coupon, 10.58%, 6/5/96 (3)(4) 200,000 190,700
54 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Foreign Government Obligations (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Mexico (Continued) ---------------------------------------------------------------------------------------- United Mexican States: Banco Nacional de Comercio Exterior SNC International Finance Bv Gtd. MatadorBonds, 7.50%, 7/1/00 $ 235,000 $ 202,100 Combined Facility 3, Loan Participation Agreement, Tranche A, 6.50%, 9/20/97 (5)(7) 123,840 93,809 Petroleos Mexicanos Gtd. Medium-Term Nts., 7.60%, 6/15/00 100,000 89,750 Petroleos Mexicanos Gtd. Unsec. Unsub. Nts., 7.875%, 3/2/99 CAD 200,000 138,213 ------------ 969,259 - ---------------------------------------------------------------------------------------------- Morocco - 1.3% ---------------------------------------------------------------------------------------- Morocco (Kingdom of) Loan Participation Agreement: Tranche A, 6.594%, 1/1/09 (5) 1,100,000 732,875 Tranche B, 6.521%, 1/1/04 (5) 50,000 37,625 ------------ 770,500 - ---------------------------------------------------------------------------------------------- New Zealand - 1.9% ---------------------------------------------------------------------------------------- New Zealand (Republic of) Bonds: 10%, 3/15/02 NZD 1,385,000 1,024,323 10%, 7/15/97 NZD 155,000 104,140 ------------ 1,128,463 - ---------------------------------------------------------------------------------------------- Norway - 0.7% ---------------------------------------------------------------------------------------- Norwegian Government Bonds: 5.75%, 11/30/04 NOK 1,160,000 175,473 9.50%, 10/31/02 NOK 1,435,000 268,859 ------------ 444,332 - ---------------------------------------------------------------------------------------------- Panama - 0.4% ---------------------------------------------------------------------------------------- Panama (Republic of) Debs., 6.75%, 5/10/02 (5) 250,000 214,219 - ---------------------------------------------------------------------------------------------- Poland - 0.3% ---------------------------------------------------------------------------------------- Poland (Republic of) Treasury Bills, Zero Coupon, 24.959%, 4/17/96 (3)PLZ 500,000 188,298 - ---------------------------------------------------------------------------------------------- Spain - 3.0% ---------------------------------------------------------------------------------------- Spain (Kingdom of): Bills, Letras del Tesoro, Zero Coupon, 9.426%, 9/6/96 (3)ESP 10,000,000 76,720 Bonds, Bonos y Obligacion del Estado, 10.90%, 8/30/03 ESP 173,600,000 1,509,962 Gtd. Bonds, Bonos y Obligacion del Estado, 10.55%, 11/30/96 ESP 25,600,000 213,340 ------------ 1,800,022 - ---------------------------------------------------------------------------------------------- Supranational - 0.4% ---------------------------------------------------------------------------------------- International Bank for Reconstruction and Development Bonds, 12.50%, 7/25/97 NZD 325,000 226,281 - ---------------------------------------------------------------------------------------------- Sweden - 1.1% ---------------------------------------------------------------------------------------- Sweden (Kingdom of) Bonds: Series 1030, 13%, 6/15/01 SEK 300,000 54,485 Series 1033, 10.25%, 5/5/03 SEK 3,700,000 615,899 ------------ 670,384 - ---------------------------------------------------------------------------------------------- Trinidad & Tobago - 0.5% ---------------------------------------------------------------------------------------- Trinidad & Tobago Loan Participation Agreement, Tranche A, 1.563%, 9/30/00 (5)(7) JPY 39,999,998 328,642
55 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Foreign Government Obligations (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Venezuela - 0.5% ---------------------------------------------------------------------------------------- Venezuela (Republic of) Disc. Bonds, Series DL, 6.563% 12/18/07 (5) $ 500,000 $ 276,250 ------------ Total Foreign Government Obligations (Cost $17,588,999) 18,062,049 - ---------------------------------------------------------------------------------------------- Corporate Bonds and Notes - 25.8% - ---------------------------------------------------------------------------------------------- Basic Industry - 1.9% - ---------------------------------------------------------------------------------------------- Chemicals - 0.2% ---------------------------------------------------------------------------------------- NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 100,000 107,250 - ---------------------------------------------------------------------------------------------- Metals/Mining - 0.0% ---------------------------------------------------------------------------------------- UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 10,000 11,425 - ---------------------------------------------------------------------------------------------- Paper - 1.4% ---------------------------------------------------------------------------------------- Domtar, Inc., 11.25% Debs., 9/15/17 100,000 106,500 ---------------------------------------------------------------------------------------- Gaylord Container Corp., 0%/12.75% Sr. Sub. Disc. Debs., 5/15/05 (9) 200,000 197,000 ---------------------------------------------------------------------------------------- Repap New Brunswick, Inc., 9.25% First Priority Sr. Sec Nts., 7/15/00 (5) 200,000 201,000 ---------------------------------------------------------------------------------------- Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 100,000 106,875 ---------------------------------------------------------------------------------------- Stone Container Corp., 10.75% First Mtg. Nts., 10/1/02 190,000 198,550 ------------ 809,925 - ---------------------------------------------------------------------------------------------- Steel - 0.3% ---------------------------------------------------------------------------------------- Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00 50,000 46,250 ---------------------------------------------------------------------------------------- Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03 150,000 143,625 ------------ 189,875 - ---------------------------------------------------------------------------------------------- Consumer Related - 6.3% - ---------------------------------------------------------------------------------------------- Consumer Products - 1.2% ---------------------------------------------------------------------------------------- Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., Series B, 12.575%, 5/27/98 (3) 50,000 40,000 ---------------------------------------------------------------------------------------- Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 150,000 165,750 ---------------------------------------------------------------------------------------- International Semi-Tech Microelectronics, Inc., 0%, 11.50% Sr. Sec. Disc. Nts., 8/15/03 (9) 400,000 212,000 ---------------------------------------------------------------------------------------- Tag-Heuer International SA, 12% Sr. Sub. Nts., 12/15/05 (4) 200,000 200,750 ---------------------------------------------------------------------------------------- Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04 100,000 100,000 ------------ 718,500 - ---------------------------------------------------------------------------------------------- Food/Beverages/Tobacco - 0.7% ---------------------------------------------------------------------------------------- Dr. Pepper Bottling Holdings, Inc., 0%/11.625% Sr. Disc. Nts., 2/15/03 (9) 200,000 160,000 ---------------------------------------------------------------------------------------- Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 (7) 250,000 251,875 ------------ 411,875 - ---------------------------------------------------------------------------------------------- Healthcare - 2.0% ---------------------------------------------------------------------------------------- AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (10) 87,579 96,775 ---------------------------------------------------------------------------------------- Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 200,000 239,750 ---------------------------------------------------------------------------------------- Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02 (4) 200,000 217,000 ---------------------------------------------------------------------------------------- IVAC Corp., 9.25% Sr. Nts., 12/1/02 150,000 154,500 ---------------------------------------------------------------------------------------- Quorum Health Group, Inc., 8.75% Sr. Sub. Nts., 11/1/05 150,000 155,813 ---------------------------------------------------------------------------------------- Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 100,000 111,250 ---------------------------------------------------------------------------------------- Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04 (9) 205,000 197,825 ------------ 1,172,913
56 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Consumer Related (Continued) - ---------------------------------------------------------------------------------------------- Hotel/Gaming - 1.6% ---------------------------------------------------------------------------------------- Bally's Casino Holdings, Inc., Zero Coupon Sr. Disc. Nts., 9.897%, 6/15/98 (3) $ 200,000 $ 161,000 ---------------------------------------------------------------------------------------- Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 250,000 261,875 ---------------------------------------------------------------------------------------- HMC Acquisition Properties, Inc., 9% Sr. Nts., 12/15/07 (4) 150,000 150,750 ---------------------------------------------------------------------------------------- Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts., 11/15/02 (4) 100,000 108,500 ---------------------------------------------------------------------------------------- Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 100,000 98,500 ---------------------------------------------------------------------------------------- Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts., 6/15/01 150,000 156,000 ------------ 936,625 - ---------------------------------------------------------------------------------------------- Restaurants - 0.3% ---------------------------------------------------------------------------------------- Carrols Corp., 11.50% Sr. Nts., 8/15/03 100,000 101,500 ---------------------------------------------------------------------------------------- Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 100,000 96,250 ------------ 197,750 - ---------------------------------------------------------------------------------------------- Textile/Apparel - 0.5% ---------------------------------------------------------------------------------------- PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts., 17.90%, 10/23/96 (3)IDR 300,000,000 110,084 ---------------------------------------------------------------------------------------- Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 200,000 197,000 ------------ 307,084 - ---------------------------------------------------------------------------------------------- Energy - 1.3% ---------------------------------------------------------------------------------------- Chesapeake Energy Corp., 10.50% Sr. Nts., 6/1/02 150,000 157,875 ---------------------------------------------------------------------------------------- Petroleum Heat & Power Co., Inc., 12.25% Sub. Debs., 2/1/05 100,000 112,000 ---------------------------------------------------------------------------------------- Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 100,000 104,000 ---------------------------------------------------------------------------------------- Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts., 10.493%, 11/1/97 (3) 100,000 86,750 ---------------------------------------------------------------------------------------- United Meridian Corp., 10.375% Gtd. Sr. Sub. Nts., 10/15/05 200,000 212,500 ---------------------------------------------------------------------------------------- Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05 100,000 101,250 ------------ 774,375 - ---------------------------------------------------------------------------------------------- Financial Services - 1.5% - ---------------------------------------------------------------------------------------------- Banks & Thrifts - 0.9% ---------------------------------------------------------------------------------------- Banco Bamerindus do Brasil SA: 10.50% Debs., 6/23/97 100,000 92,000 11% Sr. Unsub. Unsec. Bonds, 10/6/97 100,000 92,000 ---------------------------------------------------------------------------------------- Banco Ganadero SA, Zero Coupon: Nts., 9.931%, 7/1/96 (3)(4) 100,000 95,404 Sr. Unsub. Unsec. Nts., 9.931%, 6/15/96 (3)(4) 50,000 47,904 ---------------------------------------------------------------------------------------- Banco Mexicano SA, 8% Sr. Unsub. Unsec. Exchangable Medium-Term Nts., 11/4/98 200,000 168,500 ---------------------------------------------------------------------------------------- Morgan Stanley Group, 14.25% Indian Rupee Indexed Nts., 6/26/96 INR 1,570,500 44,662 ------------ 540,470 - ---------------------------------------------------------------------------------------------- Diversified Financial - 0.4% ---------------------------------------------------------------------------------------- Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 200,000 170,000 ---------------------------------------------------------------------------------------- Olympic Financial Ltd., 13% Sr. Nts., 5/1/00 100,000 109,500 ------------ 279,500
57 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Financial Services (Continued) - ---------------------------------------------------------------------------------------------- Insurance - 0.2% ---------------------------------------------------------------------------------------- Terra Nova Insurance (UK) Holdings PLC, 10.75% Sr. Nts., 7/1/05 $ 100,000 $ 109,500 - ---------------------------------------------------------------------------------------------- Housing Related - 0.6% - ---------------------------------------------------------------------------------------------- Building Materials - 0.1% ---------------------------------------------------------------------------------------- Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 100,000 94,875 - ---------------------------------------------------------------------------------------------- Homebuilders/Real Estate - 0.5% ---------------------------------------------------------------------------------------- Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts., Series B, 4/1/02 100,000 102,500 ---------------------------------------------------------------------------------------- Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A 12/1/11 (4) 250,000 186,250 ------------ 288,750 - ---------------------------------------------------------------------------------------------- Manufacturing - 1.0% - ---------------------------------------------------------------------------------------------- Aerospace/Electronics/Computers - 0.5% ---------------------------------------------------------------------------------------- Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 5/1/03 50,000 56,250 ---------------------------------------------------------------------------------------- Communications & Power Industries, Inc., 12% Sr. Sub. Nts., 8/1/05 100,000 103,250 ---------------------------------------------------------------------------------------- Rohr, Inc., 11.625% Sr. Nts., 5/15/03 100,000 109,500 ---------------------------------------------------------------------------------------- Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97 (5) 50,000 47,750 ------------ 316,750 - ---------------------------------------------------------------------------------------------- Automotive - 0.5% ---------------------------------------------------------------------------------------- Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 200,000 193,000 ---------------------------------------------------------------------------------------- Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 150,000 126,000 ------------ 319,000 - ---------------------------------------------------------------------------------------------- Media - 6.0% ---------------------------------------------------------------------------------------- Broadcasting - 0.8% ---------------------------------------------------------------------------------------- Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 50,000 50,375 ---------------------------------------------------------------------------------------- New City Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 50,000 46,500 ---------------------------------------------------------------------------------------- Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02 (4) 250,000 252,500 ---------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 12/15/03 100,000 102,500 ------------ 451,875 - ---------------------------------------------------------------------------------------------- Cable Television - 3.7% ---------------------------------------------------------------------------------------- American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04 (9) 322,737 223,495 ---------------------------------------------------------------------------------------- Australis Media Ltd., Units (each unit consists of $1,000 principal amount of 0%/14% Sr. Sub. Disc. Nts., 5/15/03 and one warrant to purchase 57.721 ordinary shares) (9)(11) 300,000 219,000 ---------------------------------------------------------------------------------------- Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04 (9) 100,000 71,375 ---------------------------------------------------------------------------------------- Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 100,000 106,250 ---------------------------------------------------------------------------------------- Continental Cablevision, Inc., 11% Sr. Sub. Debs., 6/1/07 300,000 336,000 ---------------------------------------------------------------------------------------- Fundy Cable Ltd., 11% Sr. Sec. Second Priority Nts., 11/15/05 100,000 105,000 ---------------------------------------------------------------------------------------- Marcus Cable Co. LP/Marcus Cable Capital Corp., 0%/14.25% Sr. Disc. Nts., 12/15/05 (9) 200,000 137,000 ---------------------------------------------------------------------------------------- Marcus Cable Operating Co. LP/Marcus Cable Capital Corp., 0%/13.50% Gtd. Sr. Sub. Disc. Nts., Series II, 8/1/04 (9) 200,000 149,250
58 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Media (Continued) - ---------------------------------------------------------------------------------------------- Cable Television (Continued) ---------------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority Debs., 12/1/07 $ 300,000 $ 320,250 ---------------------------------------------------------------------------------------- TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07 (9) 300,000 181,875 ---------------------------------------------------------------------------------------- Time Warner Entertainment LP/Time Warner, Inc., 8.375% Sr. Debs., 3/15/23 200,000 217,233 ---------------------------------------------------------------------------------------- Time Warner, Inc., 9.125% Debs., 1/15/13 50,000 56,385 ---------------------------------------------------------------------------------------- United International Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., 12.544%, 11/15/99 (3) 200,000 125,000 ------------ 2,248,113 - ---------------------------------------------------------------------------------------------- Diversified Media - 1.2% ---------------------------------------------------------------------------------------- Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 200,000 214,000 ---------------------------------------------------------------------------------------- Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04 (9) 100,000 67,500 ---------------------------------------------------------------------------------------- Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 150,000 156,000 ---------------------------------------------------------------------------------------- Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03 100,000 97,500 ---------------------------------------------------------------------------------------- Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts., 150,000 159,375 ------------ 694,375 - ---------------------------------------------------------------------------------------------- Entertainment/Film - 0.3% ---------------------------------------------------------------------------------------- Imax Corp., 7% Sr. Nts., 3/1/01 (8) 200,000 197,000 - ---------------------------------------------------------------------------------------------- Other - 0.6% - ---------------------------------------------------------------------------------------------- Conglomerates - 0.4% ---------------------------------------------------------------------------------------- MacAndrews & Forbes Holdings, Inc., 13% Sub. Debs., 3/1/99 175,000 177,625 ---------------------------------------------------------------------------------------- Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05 (9) 100,000 74,500 ------------ 252,125 - ---------------------------------------------------------------------------------------------- Services - 0.2% ---------------------------------------------------------------------------------------- Borg-Warner Security Corp., 9.125% Sr. Sub. Nts., 5/1/03 100,000 91,500 - ---------------------------------------------------------------------------------------------- Retail - 0.7% - ---------------------------------------------------------------------------------------------- Specialty Retailing - 0.2% ---------------------------------------------------------------------------------------- Eye Care Centers of America, Inc., 12% Sr. Nts., 10/01/03 70,000 65,450 ---------------------------------------------------------------------------------------- Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/01/03 100,000 98,000 ------------ 163,450 - ---------------------------------------------------------------------------------------------- Supermarkets - 0.5% ---------------------------------------------------------------------------------------- Grand Union Co., 12% Sr. Nts., 9/1/04 200,000 174,000 ---------------------------------------------------------------------------------------- Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 100,000 110,750 ------------ 284,750 - ---------------------------------------------------------------------------------------------- Transportation - 0.9% - ---------------------------------------------------------------------------------------------- Air Transportation - 0.7% ---------------------------------------------------------------------------------------- American International Group, Inc., 11.70% Unsec. Unsub. Bonds, 12/4/01 ITL 270,000,000 179,345 ---------------------------------------------------------------------------------------- Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02 250,000 256,250 ------------ 435,595 - ---------------------------------------------------------------------------------------------- Railroads - 0.2% ---------------------------------------------------------------------------------------- Transtar Holdings LP/Transtar Capital Corp., 0%, 13.375% Sr. Disc. Nts., Series B, 12/15/03 (9) 200,000 133,000
59 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Corporate Bonds and Notes (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- Utilities - 5.0% - ---------------------------------------------------------------------------------------------- Electric Utilities - 0.7% ---------------------------------------------------------------------------------------- Beaver Valley II Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17 $ 199,000 $ 170,304 ---------------------------------------------------------------------------------------- El Paso Electric Co., 10.75% Lease Obligation Bonds, 4/1/13 (12) 100,000 67,873 ---------------------------------------------------------------------------------------- First PV Funding Corp., 10.30% Lease Obligation Bonds, Series 1986A, 1/15/14 200,000 204,312 ------------ 442,489 - ---------------------------------------------------------------------------------------------- Telecommunications - 4.3% ---------------------------------------------------------------------------------------- A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05 200,000 202,500 ---------------------------------------------------------------------------------------- Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04 (9) 200,000 144,000 ---------------------------------------------------------------------------------------- Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04 (4)(9) 150,000 106,500 ---------------------------------------------------------------------------------------- Cellular Communications International, Inc., Zero Coupon Sr. Disc. Nts., 11.44%, 8/15/00 (3) 300,000 180,750 ---------------------------------------------------------------------------------------- Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (9) 50,000 40,063 ---------------------------------------------------------------------------------------- Cencall Communications Corp., 0%/10.125% Sr. Disc. Nts., 1/15/04 (9) 300,000 169,500 ---------------------------------------------------------------------------------------- Comunicacion Celular SA, Units (each unit consists of $1,000 principal 0%/13.125% sr. deferred coupon bond, 11/15/03 and one warrant to purchase 12,860 shares of common stock at $1.32 per 1,000 shares) (4)(9)(11) 200,000 114,000 ---------------------------------------------------------------------------------------- Geotek Communications, Inc., 0%/15% Sr. Sec. Disc. Nts., 7/15/05 (9) 250,000 113,750 ---------------------------------------------------------------------------------------- GST Telecommunications, Inc., Units (each unit consists of each 0%/13.875% sr. disc. nts., 12/15/05 and one 0%/13.875% cv. sr. sub. disc. nt., 12/15/05) (4)(9)(11) 225,000 117,500 ---------------------------------------------------------------------------------------- Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (9) 250,000 213,750 ---------------------------------------------------------------------------------------- In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02 (9) 200,000 67,000 ---------------------------------------------------------------------------------------- IntelCom Group (USA), Inc., 0%/13.50% Sr. Disc. Nts., 9/15/05 (4)(9) 250,000 144,375 ---------------------------------------------------------------------------------------- MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (9) 200,000 161,000 ---------------------------------------------------------------------------------------- Nextel Communications, Inc., 0%/11.50% Sr. Disc. Nts., 9/1/03 (9) 300,000 185,625 ---------------------------------------------------------------------------------------- PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01 (9) 300,000 264,000 ---------------------------------------------------------------------------------------- USA Mobile Communications, Inc. II, 14% Sr. Nts., 11/1/04 150,000 176,250 ---------------------------------------------------------------------------------------- WinStar Communications, Inc., Units (each unit consists of two $1,000 principal amount of 0%/14% sr. disc. nts., 10/15/05 and one cv. sr. sub. disc. nts., 10/15/05) (4)(9)(11) 100,000 158,500 ------------ 2,559,063 ------------ Total Corporate Bonds and Notes (Cost $15,112,269) 15,539,777 Shares - ---------------------------------------------------------------------------------------------- Common Stocks - 0.1% ---------------------------------------------------------------------------------------- Celcaribe SA (4)(13) 24,390 29,024 ---------------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A 600 10,913
60 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - ---------------------------------------------------------------------------------------------- United International Holdings, Inc., Cl. A (13) 1,000 $ 14,750 ------------ Total Common Stocks (Cost $45,399) 54,687 - ---------------------------------------------------------------------------------------------- Preferred Stocks - 1.5% ---------------------------------------------------------------------------------------- BankAmerica Corp., 8.375%, Series K 7,000 181,125 ---------------------------------------------------------------------------------------- California Federal Bank, 10.625% Non-Cum., Series B 2,000 217,000 ---------------------------------------------------------------------------------------- First Nationwide Bank, 11.50% Non-Cum. 2,000 224,750 ---------------------------------------------------------------------------------------- Glendale Federal Bank, F.S.B., 8.75% Non-Cum. Cv., Series E 1,000 45,250 ---------------------------------------------------------------------------------------- Prime Retail, Inc., $19.00 Cv., Series B 6,000 106,500 ---------------------------------------------------------------------------------------- SDW Holdings Corp., Units (each unit consists of ten shares of sr. exchangable preferred stock and one cl. B warrant to purchase one share of common stock) (4)(11) 375 108,750 ------------ Total Preferred Stocks (Cost $865,020) 883,375 Units - ---------------------------------------------------------------------------------------------- Rights, Warrants and Certificates - 0.1% - ---------------------------------------------------------------------------------------------- American Telecasting, Inc. Wts., Exp. 6/99 1,500 9,000 ---------------------------------------------------------------------------------------- Cellular Communications International, Inc. Wts., Exp. 8/03 300 6,750 ---------------------------------------------------------------------------------------- Eye Care Centers of America, Inc. Wts., Exp. 10/03 (4) 70 350 ---------------------------------------------------------------------------------------- Geotek Communications, Inc. Wts., Exp. 7/05 (4) 7,500 15,000 ---------------------------------------------------------------------------------------- Icon Health & Fitness, Inc. Wts., Exp. 11/99 (4) 200 5,000 ---------------------------------------------------------------------------------------- In-Flight Phone Corp. Wts., Exp. 8/02 (4) 200 -- ---------------------------------------------------------------------------------------- IntelCom Group, Inc. Wts., Exp. 9/05 (4) 825 3,300 ---------------------------------------------------------------------------------------- Terex Corp. Rts., Exp. 7/96 (4) 36 2 ---------------------------------------------------------------------------------------- United International Securities Ltd. Wts., Exp. 11/99 200 5,712 ------------ Total Rights, Warrants and Certificates (Cost $11,014) 45,114 Date Strike Contracts - ---------------------------------------------------------------------------------------------- Put Options Purchased - 0.0% - ---------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Eligible Interest Bonds, 6.812%, 4/15/06, Put Opt. (Cost $9,750) Jan. $64.75 500 -- Principal Amount(1) - ---------------------------------------------------------------------------------------------- Structured Instruments - 1.6% - ---------------------------------------------------------------------------------------------- Goldman, Sachs & Co. Argentina Local Market Securities Trust, 11.30%, 4/1/00 [representing debt of Argentina (Republic of) Bonos del Tesoro Bonds, Series 10, 5.742%, 4/1/00 and an interest rate swap between Goldman Sachs and the Trust] (7) $ 234,782 229,500 ---------------------------------------------------------------------------------------- Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked Nts.: 11.318%, 2/15/96 (indexed to the Nota Do Tesouro Nacional, Zero Coupon, 2/15/96 (3) 250,000 246,250 11.136%, 3/5/96 (indexed to the Nota Do Tesouro Nacional, Zero Coupon, 3/4/96 (3) 200,000 195,680
61 Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund Statement of Investments (Continued) December 31, 1995
Principal Market Value Structured Instruments (Continued) Amount(1) (Note 1) - ---------------------------------------------------------------------------------------------- United Mexican States, Linked Nts. (indexed to the greater of Cetes Option Amount or USD LIBOR Option Amount, 11/27/96) (4) $ 300,000 $ 305,475 ------------ Total Structured Instruments (Cost $977,638) 976,905 - ---------------------------------------------------------------------------------------------- Repurchase Agreement - 0.8% - ---------------------------------------------------------------------------------------------- Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95, to be repurchased at $500,328 on 1/2/96, collateralized by U.S. Treasury Nts., 6.875%, 8/31/99, with a value of $178,667, and U.S. Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with a value of $336,642 (Cost $500,000) 500,000 500,000 - ---------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $57,397,784) 98.6% 59,245,209 - ---------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 1.4 852,404 ---------- ------------- Net Assets 100.0% $ 60,097,613 ========== =============
1. Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD - Australian Dollar INR - Indian Rupee CAD - Canadian Dollar ITL - Italian Lira CLP - Chilean Peso JPY - Japanese Yen DEM - German Deutsche Mark NLG - Netherlands Guilder DKK - Danish Krone NOK - Norwegian Krone ESP - Spanish Peseta NZD - New Zealand Dollar FRF - French Franc PLZ - Polish Zloty GBP - British Pound Sterling SEK - Swedish Krona HUF - Hungarian Forint THB - Thai Baht IDR - Indonesian Rupiah 2. Indexed instrument for which the principal amount and/or interest due at maturity is affected by the relative value of a foreign currency. 3. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 4. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $3,264,200 or 5.43% of the Fund's net assets, at December 31, 1995. 5. Represents the current interest rate for a variable rate security. 6. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
Principal Subject Expiration Exercise Premium Market Value To Call Date Price Received See Note 1 - ------------------------------------------------------------------------------------------------------------------ Bulgaria (Republic of) Interest Arrears Bonds, 6.75%, 7/28/11 1,000,000 1/96 $45 $14,300 $13,900
7. Identifies issues considered to be illiquid - See Note 7 of Notes to Financial Statements. 8. Represents the current interest rate for an increasing rate security. 9. Denotes a step bond: a zero coupon bond that converts to a fixed rate of interest at a designated future date. 10. Interest or dividend is paid in kind. 11. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. 12. Non-income producing--issuer is in default of interest payment. 13. Non-income producing security. See accompanying Notes to Financial Statements. 62 Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund Statement of Investments December 31, 1995
Principal Market Value Amount (Note 1) - --------------------------------------------------------------------------------------------------- Convertible Corporate Bonds and Notes - 2.0% - --------------------------------------------------------------------------------------------------- ADT Operations, Inc., Zero Coupon Cv. Sub. Nts., 6.148%, 7/6/10 (1) $ 45,000 $ 21,375 --------------------------------------------------------------------------------------------- Continental Homes Holding Corp., 6.875% Cv. Sub. Nts., 11/1/02 25,000 29,468 --------------------------------------------------------------------------------------------- Federated Department Stores, Inc., 5% Cv. Sub. Nts., 10/1/03 15,000 15,169 --------------------------------------------------------------------------------------------- Sandoz Capital BVI Ltd., 2% Cv. Gtd. Sr. Unsec. Unsub Nts. 10/6/02 (2) 20,000 19,000 ---------------- Total Convertible Corporate Bonds and Notes (Cost $75,554) 85,012 Shares - --------------------------------------------------------------------------------------------------- Common Stocks - 74.8% - --------------------------------------------------------------------------------------------------- Basic Materials - 1.8% Chemicals - 1.5% --------------------------------------------------------------------------------------------- Du Pont (E.I.) De Nemours & Co. 650 45,419 --------------------------------------------------------------------------------------------- W.R. Grace & Co. 300 17,737 ---------------- 63,156 - --------------------------------------------------------------------------------------------------- Paper - 0.3% --------------------------------------------------------------------------------------------- Visioneer, Inc. (3) 700 15,575 - --------------------------------------------------------------------------------------------------- Consumer Cyclicals - 16.0% - --------------------------------------------------------------------------------------------------- Autos & Housing - 1.2% --------------------------------------------------------------------------------------------- Ford Motor Co. 800 23,200 --------------------------------------------------------------------------------------------- General Motors Corp. 500 26,437 ---------------- 49,637 - --------------------------------------------------------------------------------------------------- Leisure & Entertainment - 8.2% --------------------------------------------------------------------------------------------- Circus Circus Enterprises, Inc. (3) 1,250 34,844 --------------------------------------------------------------------------------------------- Eastman Kodak Co. 350 23,450 --------------------------------------------------------------------------------------------- Pixar, Inc. (3) 5,000 144,375 --------------------------------------------------------------------------------------------- Southwest Airlines Co. 1,000 23,250 --------------------------------------------------------------------------------------------- Western Pacific Airlines, Inc. (3) 7,500 125,625 ---------------- 351,544 - --------------------------------------------------------------------------------------------------- Media - 2.5% --------------------------------------------------------------------------------------------- Capital Cities/ABC, Inc. 250 30,844 --------------------------------------------------------------------------------------------- Comcast Corp., Cl. A Special 1,500 27,281 --------------------------------------------------------------------------------------------- Viacom, Inc., Cl. B (3) 1,000 47,375 ---------------- 105,500 - --------------------------------------------------------------------------------------------------- Retail: General - 1.7% --------------------------------------------------------------------------------------------- Dillard Department Stores, Inc., Cl. A 1,250 35,625 --------------------------------------------------------------------------------------------- Warnaco Group, Inc. (The), Cl. A 1,500 37,500 ---------------- 73,125 - --------------------------------------------------------------------------------------------------- Retail: Specialty - 2.4% --------------------------------------------------------------------------------------------- Alco Standard Corp. 350 15,969 --------------------------------------------------------------------------------------------- Nine West Group, Inc. (3) 1,250 46,875 --------------------------------------------------------------------------------------------- Tandy Corp. 1,000 41,500 ---------------- 104,344 - --------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals - 10.1% - --------------------------------------------------------------------------------------------------- Beverages - 0.8% --------------------------------------------------------------------------------------------- Boston Beer Co., Inc., Cl. A (3) 800 19,000
63 Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund Statement of Investments December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Consumer Non-Cyclicals (Continued) - --------------------------------------------------------------------------------------------------- Beverages (Continued) --------------------------------------------------------------------------------------------- Pete's Brewing Co. (3) 1,000 $ 14,000 ---------------- 33,000 - --------------------------------------------------------------------------------------------------- Food - 0.3% --------------------------------------------------------------------------------------------- IBP, Inc. 300 15,150 - --------------------------------------------------------------------------------------------------- Healthcare/Drugs - 3.1% --------------------------------------------------------------------------------------------- Amgen, Inc. 350 20,781 --------------------------------------------------------------------------------------------- Astra AB Free, Series A 1,000 39,987 --------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 300 25,762 --------------------------------------------------------------------------------------------- Genzyme Corp. (3) 750 46,781 ---------------- 133,311 - --------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services - 2.9% --------------------------------------------------------------------------------------------- Columbia/HCA Healthcare Corp. 750 38,062 --------------------------------------------------------------------------------------------- HEALTHSOUTH Corp. 500 14,562 --------------------------------------------------------------------------------------------- Humana, Inc. (3) 500 13,687 --------------------------------------------------------------------------------------------- National Surgery Centers, Inc. (3) 1,000 23,000 --------------------------------------------------------------------------------------------- Tenet Healthcare Corp. (3) 1,000 20,750 --------------------------------------------------------------------------------------------- U.S. Healthcare, Inc. 300 13,950 ---------------- 124,011 - --------------------------------------------------------------------------------------------------- Household Goods - 1.7% --------------------------------------------------------------------------------------------- Estee Lauder Cos., Inc., (The) Cl. A 3 1,500 52,312 --------------------------------------------------------------------------------------------- Kimberly-Clark Corp. 273 22,591 ---------------- 74,903 - --------------------------------------------------------------------------------------------------- Tobacco - 1.3% --------------------------------------------------------------------------------------------- Philip Morris Cos., Inc. 600 54,300 - --------------------------------------------------------------------------------------------------- Energy - 4.4% - --------------------------------------------------------------------------------------------------- Energy Services & Producers - 1.8% --------------------------------------------------------------------------------------------- Schlumberger Ltd. 500 34,625 --------------------------------------------------------------------------------------------- Weatherford Enterra, Inc. (3) 1,500 43,312 ---------------- 77,937 - --------------------------------------------------------------------------------------------------- Oil-Integrated - 2.6% Atlantic Richfield Co. 250 27,687 --------------------------------------------------------------------------------------------- Brown (Tom), Inc. (3) 1,000 14,625 --------------------------------------------------------------------------------------------- Occidental Petroleum Corp. 1,250 26,719 --------------------------------------------------------------------------------------------- Union Pacific Resources Group, Inc. 300 7,613 --------------------------------------------------------------------------------------------- Unocal Corp. 1,250 36,406 ---------------- 113,050 - --------------------------------------------------------------------------------------------------- Financial - 10.5% - --------------------------------------------------------------------------------------------------- Banks - 7.3% --------------------------------------------------------------------------------------------- Ahmanson (H.F.) & Co. 300 7,950 --------------------------------------------------------------------------------------------- Bankers Trust New York Corp. 250 16,625 --------------------------------------------------------------------------------------------- BayBanks, Inc. 400 39,300 --------------------------------------------------------------------------------------------- Chase Manhattan Corp. 1,000 60,625 --------------------------------------------------------------------------------------------- Commercial Federal Corp. 1,000 37,750 --------------------------------------------------------------------------------------------- Fleet Financial Group, Inc. 1,000 40,750 --------------------------------------------------------------------------------------------- Great Western Financial Corp. 1,400 35,700 --------------------------------------------------------------------------------------------- Meridian Bancorp, Inc. 900 41,850 --------------------------------------------------------------------------------------------- Midlantic Corp. 500 32,813 ---------------- 313,363
64 Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund Statement of Investments December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Financial (Continued) - --------------------------------------------------------------------------------------------------- Diversified Financial - 2.4% --------------------------------------------------------------------------------------------- Federal National Mortgage Assn. 350 $ 43,444 --------------------------------------------------------------------------------------------- H & R Block, Inc. 225 9,113 --------------------------------------------------------------------------------------------- Investors Financial Services Corp. (3) 1,500 31,125 --------------------------------------------------------------------------------------------- Travelers Group, Inc. 300 18,863 ---------------- 102,545 - --------------------------------------------------------------------------------------------------- Insurance - 0.8% --------------------------------------------------------------------------------------------- Meadowbrook Insurance Group, Inc. (3) 1,000 33,500 - --------------------------------------------------------------------------------------------------- Industrial - 9.4% - --------------------------------------------------------------------------------------------------- Electrical Equipment - 1.3% --------------------------------------------------------------------------------------------- General Electric Co. 200 14,400 --------------------------------------------------------------------------------------------- Honeywell, Inc. 800 38,900 ---------------- 53,300 - --------------------------------------------------------------------------------------------------- Industrial Services - 5.6% --------------------------------------------------------------------------------------------- CIBER, Inc. (3) 1,000 23,375 --------------------------------------------------------------------------------------------- DST Systems, Inc. (3) 1,500 42,750 --------------------------------------------------------------------------------------------- META Group, Inc. (3) 5,000 153,125 --------------------------------------------------------------------------------------------- Vigoro Corp. 350 21,613 ---------------- 240,863 - --------------------------------------------------------------------------------------------------- Manufacturing - 2.2% --------------------------------------------------------------------------------------------- American Standard Cos., Inc. (3) 1,750 49,000 --------------------------------------------------------------------------------------------- Hanson PLC, ADR 2,000 30,500 --------------------------------------------------------------------------------------------- Minnesota Mining & Manufacturing Co. 200 13,250 ---------------- 92,750 - --------------------------------------------------------------------------------------------------- Transportation - 0.3% --------------------------------------------------------------------------------------------- Canadian National Railway Co. (3) 1,000 15,000 - --------------------------------------------------------------------------------------------------- Technology - 22.2% - --------------------------------------------------------------------------------------------------- Aerospace/Defense - 0.5% --------------------------------------------------------------------------------------------- Lockheed Martin Corp. 250 19,750 - --------------------------------------------------------------------------------------------------- Computer Hardware - 5.9% --------------------------------------------------------------------------------------------- Cabletron Systems, Inc. (3) 250 20,250 --------------------------------------------------------------------------------------------- Citrix Systems, Inc. (3) 500 16,250 --------------------------------------------------------------------------------------------- International Business Machines Corp. 850 77,988 --------------------------------------------------------------------------------------------- Lexmark International Group, Inc., Cl. A (3) 1,500 27,375 --------------------------------------------------------------------------------------------- Network Appliance, Inc. (3) 1,100 44,138 --------------------------------------------------------------------------------------------- Objective Systems Integrators, Inc. (3) 500 27,375 --------------------------------------------------------------------------------------------- Quantum Corp. (3) 1,250 20,156 --------------------------------------------------------------------------------------------- Sun Microsystems, Inc. (3) 400 18,250 ---------------- 251,782 - --------------------------------------------------------------------------------------------------- Computer Software - 10.1% --------------------------------------------------------------------------------------------- Adobe Systems, Inc. 250 15,500 --------------------------------------------------------------------------------------------- Advent Software, Inc. (3) 1,800 31,950 --------------------------------------------------------------------------------------------- Arbor Software Corp. (3) 1,000 47,250 --------------------------------------------------------------------------------------------- Autodesk, Inc. 500 17,125 --------------------------------------------------------------------------------------------- Black Box Corp. (3) 750 12,281 --------------------------------------------------------------------------------------------- Fractal Design Corp. (3) 2,000 28,000 --------------------------------------------------------------------------------------------- IDX Systems Corp. (3) 700 24,325 --------------------------------------------------------------------------------------------- Informix Corp. (3) 250 7,500 --------------------------------------------------------------------------------------------- Logic Works, Inc. (3) 500 6,250
65 Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund Statement of Investments December 31, 1995
Market Value Common Stocks (Continued) Shares (Note 1) - --------------------------------------------------------------------------------------------------- Technology (Continued) - --------------------------------------------------------------------------------------------------- Computer Software (Continued) --------------------------------------------------------------------------------------------- MetaTools, Inc. (3) 500 $ 13,000 --------------------------------------------------------------------------------------------- Oracle Corp. (3) 250 10,594 --------------------------------------------------------------------------------------------- Platinum Technology, Inc. (3) 1,200 22,050 --------------------------------------------------------------------------------------------- Secure Computing Corp. (3) 2,000 112,000 --------------------------------------------------------------------------------------------- Sync Research, Inc. (3) 1,300 58,825 --------------------------------------------------------------------------------------------- Visio Corp. (3) 1,000 28,250 ---------------- 434,900 - --------------------------------------------------------------------------------------------------- Electronics - 2.0% --------------------------------------------------------------------------------------------- Intel Corp. 600 34,050 --------------------------------------------------------------------------------------------- Photon Dynamics, Inc. 3 1,500 12,000 --------------------------------------------------------------------------------------------- Texas Instruments, Inc. 750 38,813 ---------------- 84,863 - --------------------------------------------------------------------------------------------------- Telecommunications-Technology - 3.7% --------------------------------------------------------------------------------------------- AT&T Corp. 400 25,900 --------------------------------------------------------------------------------------------- DSC Communications Corp. 3 750 27,656 --------------------------------------------------------------------------------------------- LCI International, Inc. 3 200 4,100 --------------------------------------------------------------------------------------------- VTEL Corp. 3 1,500 27,750 --------------------------------------------------------------------------------------------- Westell Technologies, Inc., Cl. A 3 3,000 75,375 ---------------- 160,781 - --------------------------------------------------------------------------------------------------- Utilities - 0.4% - --------------------------------------------------------------------------------------------------- Electric Utilities - 0.4% --------------------------------------------------------------------------------------------- SCEcorp 1,000 17,750 ---------------- Total Common Stocks (Cost $2,723,302) 3,209,690 - --------------------------------------------------------------------------------------------------- Preferred Stocks - 5.8% - --------------------------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., Cv. Depositary Shares 750 20,437 --------------------------------------------------------------------------------------------- James River Corp. of Virginia, Depositary Shares each representing a one-hundredth interest in a share of Series P, 9% Cum. Cv. Preferred Stock, Dividend Enhanced Convertible Stock 1,000 23,375 --------------------------------------------------------------------------------------------- Bally Entertainment Corp., 8% Cv. Preferred Redeemable Increased Dividend Equity Securities 1,500 20,437 --------------------------------------------------------------------------------------------- Continental Airlines Finance Trust, 8.50% Cv. Trust Originated Preferred Securities (2) 500 26,750 --------------------------------------------------------------------------------------------- Delta Air Lines, Inc., $3.50 Cv. Depositary Shares, Series C 500 29,688 --------------------------------------------------------------------------------------------- Cablevision Systems Corp., 8.50% Cum. Cv., Series I 1,000 27,250 --------------------------------------------------------------------------------------------- Fidelity Federal Bank, 12% Non-Cum. Exchangeable Perpetual Preferred Stock, Series A 1,000 25,375 --------------------------------------------------------------------------------------------- Advanta Corp., Stock Appreciation Income Linked Securities (each representing a one-hundredth interest in a share of 6.75% Cv. Cl. B Preferred Stock, Series 1995) 500 19,375 --------------------------------------------------------------------------------------------- SunAmerica, Inc., $3.10 Cum. Cv. Depositary Shares 500 32,750 --------------------------------------------------------------------------------------------- Elsag Bailey Financing Trust, 5.50% Cv. Trust Originated Preferred Securities (2) 500 25,188 ---------------- Total Preferred Stocks (Cost $241,615) 250,625
66 Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund Statement of Investments December 31, 1995
Principal Market Value Amount (Note 1) - --------------------------------------------------------------------------------------------------- Repurchase Agreements - 11.7% Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95, to be repurchased at $500,328 on 1/2/96, collateralized by U.S. Treasury Nts., 6.875%, 8/31/99, with a value of $178,667, and U.S. Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with a value of $336,642 (Cost $500,000) $500,000 $ 500,000 --------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $3,540,471) 94.3% 4,045,327 --------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 5.7 243,124 ----------- --------------- Net Assets 100.0% 4,288,451 =========== ===============
1. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 2. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $70,938 or 1.65% of the Fund's net assets, at December 31, 1995. 3. Non-income producing security. See accompanying Notes to Financial Statements. 67 Oppenheimer Variable Account Funds Statements of Assets and Liabilities December 31, 1995
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Money High Income Bond Appreciation Growth Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments, at value (cost * ) (including repurchase agreements **) - see accompanying statements: Unaffiliated companies $62,944,947 $131,522,956 $205,386,016 $335,795,407 $117,817,530 Affiliated companies -- -- -- -- -- Unrealized appreciation on forward foreign currency exchange contracts - Note 5 -- 805 -- -- -- Cash 27,216 98,614 475,368 59,048 49,380 Receivables: Dividends and interest 206,178 2,379,583 3,482,730 96,851 106,959 Shares of beneficial interest sold 2,855,248 92,239 1,549,125 324,174 364,845 Investments sold 541,324 1,271,263 -- 595,258 Other 4,817 6,456 7,575 2,162 5,982 -------------------------------------------------------------------------- Total assets 66,038,406 134,641,977 212,172,077 336,277,642 118,939,954 -------------------------------------------------------------------------- LIABILITIES: Options written, at value (premiums received ***) - see accompanying statements - Note 4 -- 1,390 -- -- -- Unrealized depreciation on forward foreign currency exchange contracts - Note 5 -- -- 15,522 -- -- Payables and other liabilities: Dividends 162,910 -- -- -- -- Investments purchased -- 1,044,711 779,747 7,783,979 970,555 Shares of beneficial interest redeemed 440,204 111,962 98,746 3,038,804 231,518 Other 48,832 33,134 46,292 50,768 27,991 -------------------------------------------------------------------------- Total liabilities 651,946 1,191,197 940,307 10,873,551 1,230,064 -------------------------------------------------------------------------- NET ASSETS $65,386,460 $133,450,780 $211,231,770 $325,404,091 $117,709,890 ========================================================================== COMPOSITION OF NET ASSETS: Paid-in capital $65,404,807 $129,659,991 $201,057,454 $240,344,897 $84,252,418 Undistributed (distributions in excess of) net investment income -- 1,473,129 1,342,481 1,115,939 1,290,629 Accumulated net realized gain (loss) from investments and foreign currency transactions (18,347) (3,407,583) 5,361 20,967,908 8,548,920 Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies -- 5,725,243 8,826,474 62,975,347 23,617,923 -------------------------------------------------------------------------- NET ASSETS $65,386,460 $133,450,780 $211,231,770 $325,404,091 $117,709,890 ========================================================================== SHARES OF BENEFICIAL INTEREST OUTSTANDING 65,404,807 12,551,582 17,842,418 9,512,651 4,997,725 NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00 $10.63 $11.84 $34.21 $23.55 *Cost: Unaffiliated companies $62,944,947 $125,812,139 $196,548,402 $272,820,061 $94,199,607 Affiliated companies -- -- -- -- -- **Repurchase Agreements $3,595,000 $2,780,000 $8,500,000 $35,600,000 $23,470,000 ***Premiums Received -- $1,430 -- -- --
See accompanying Notes to Financial Statements. 68 Oppenheimer Variable Account Funds Statements of Assets and Liabilities (Continued) December 31, 1995
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Multiple Global Strategic Growth & Strategies Securities Bond Income Fund Fund Fund Fund - -------------------------------------------------------------------------------------------------------------------- ASSETS: Investments, at value (cost * ) (including repurchase agreements **) - see accompanying statements: Unaffiliated companies $378,826,790 $361,259,286 $59,245,209 $4,045,327 Affiliated companies 1,368,000 -- -- Unrealized appreciation on forward foreign currency exchange contracts - Note 5 2 150,274 -- -- Cash 38,181 136,798 162,525 224,728 Receivables: Dividends and interest 3,080,691 352,962 1,179,469 5,593 Shares of beneficial interest sold 1,200,686 202,710 200,211 18,236 Investments sold 870,610 4,677,263 578,483 -- Other 12,814 9,300 3,735 2,359 ----------------------------------------------------------- Total assets 384,029,774 368,156,593 61,369,632 4,296,243 ----------------------------------------------------------- LIABILITIES: Options written, at value (premiums received ***) - see accompanying statements - Note 4 1,043,325 -- 13,900 -- Unrealized depreciation on forward foreign currency exchange contracts - Note 5 -- -- 11,657 -- Payables and other liabilities: Dividends -- -- -- -- Investments purchased 1,574,416 6,654,962 1,156,926 -- Shares of beneficial interest redeemed 91,258 367,884 68,024 -- Other 57,611 154,914 21,512 7,792 ----------------------------------------------------------- Total liabilities 2,766,610 7,177,760 1,272,019 7,792 ----------------------------------------------------------- NET ASSETS $381,263,164 $360,978,833 $60,097,613 $4,288,451 =========================================================== COMPOSITION OF NET ASSETS: Paid-in capital $329,343,553 $363,343,602 $59,420,799 $3,756,393 Undistributed (distributions in excess of) net investment income 1,361,279 (1,068) 483,938 (318) Accumulated net realized gain (loss) from investments and foreign currency transactions 8,398,861 (26,173,952) (1,648,175) 27,201 Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 42,159,471 23,810,251 1,841,051 505,175 ---------------------------------------------------------- NET ASSETS $381,263,164 $360,978,833 $60,097,613 $4,288,451 =========================================================== SHARES OF BENEFICIAL INTEREST OUTSTANDING 26,212,235 24,067,821 12,250,929 342,794 NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $14.55 $15.00 $4.91 $12.51 *Cost: Unaffiliated companies $336,724,928 $337,580,583 $57,397,784 $3,540,471 Affiliated companies -- $1,401,000 -- -- **Repurchase Agreements $52,200,000 $17,300,000 $500,000 $500,000 ***Premiums Received $1,100,095 -- $14,299 --
See accompanying Notes to Financial Statements. 69 Oppenheimer Variable Account Funds Statements of Operations For the Year Ended December 31, 1995
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Money High Income Bond Appreciation Growth Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest (net of withholding taxes of *) $4,534,276 $11,710,273 $13,096,739 $2,664,312 $1,001,964 Dividends: Unaffiliated companies (net of withholding taxes of **) -- 569,924 81,190 330,943 992,690 Affiliated companies (net of withholding taxes of **) -- -- -- -- -- -------------------------------------------------------------------------- Total income 4,534,276 12,280,197 13,177,929 2,995,255 1,994,654 -------------------------------------------------------------------------- EXPENSES: Management fees - Note 6 338,483 866,154 1,280,422 1,790,785 664,977 Custodian fees and expenses 22,290 33,144 37,714 27,791 -- Shareholder reports 10,988 7,870 8,042 11,912 3,864 Legal and auditing fees 7,865 17,092 12,506 12,215 12,202 Insurance expenses 3,683 4,698 5,140 -- 3,525 Trustees' fees and expenses 538 812 2,637 1,699 1,901 Registration and filing fees 25 5,404 16,773 24,486 8,881 Other 777 1,046 1,193 2,916 1,585 -------------------------------------------------------------------------- Total expenses 384,649 936,220 1,364,427 1,871,804 696,935 -------------------------------------------------------------------------- NET INVESTMENT INCOME 4,149,627 11,343,977 11,813,502 1,123,451 1,297,719 -------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) from: Investments: Unaffiliated companies 5,356 838,501 861,074 22,379,477 8,674,291 Affiliated companies -- -- -- -- -- Closing and expiration of options written - Note 4 -- (428,900) (14,352) -- -- Foreign currency transactions -- 213,132 463,409 -- -- Net change in unrealized appreciation or depreciation on: Investments -- 9,435,938 13,439,159 47,042,428 16,396,856 Translation of assets and liabilities denominated in foreign currencies -- (22,937) (120,740) -- -- -------------------------------------------------------------------------- Net realized and unrealized gain 5,356 10,035,734 14,628,550 69,421,905 25,071,147 -------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,154,983 $21,379,711 $26,442,052 $70,545,356 $26,368,866 ========================================================================== *Interest -- -- $7,577 -- -- **Dividends: Unaffiliated companies -- -- -- $999 $9,674 Affiliated companies -- -- -- -- --
See accompanying Notes to Financial Statements. 70 Oppenheimer Variable Account Funds Statements of Operations (Continued) For the Year Ended December 31, 1995
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Multiple Global Strategic Growth & Strategies Securities Bond Income Fund Fund Fund Fund(1) - --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest (net of withholding taxes of *) $16,147,769 $1,031,404 $3,754,007 $10,996 Dividends: Unaffiliated companies (net of withholding taxes of **) 3,114,259 4,699,083 79,325 12,525 Affiliated companies (net of withholding taxes of **) 62,163 -- -- ------------------------------------------------------------ Total income 19,262,028 5,792,650 3,833,332 23,521 ------------------------------------------------------------ EXPENSES: Management fees - Note 6 2,540,311 2,451,556 281,335 6,710 Custodian fees and expenses 65,688 457,420 15,150 4,260 Shareholder reports 14,490 11,015 3,111 440 Legal and auditing fees 23,186 17,395 7,000 5,627 Insurance expenses 9,872 7,400 2,621 595 Trustees' fees and expenses 7,851 1,631 286 17 Registration and filing fees 6,188 -- 8,457 1,287 Other 928 720 867 12 ------------------------------------------------------------ Total expenses 2,668,514 2,947,137 318,827 18,948 ------------------------------------------------------------ NET INVESTMENT INCOME 16,593,514 2,845,513 3,514,505 4,573 ------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) from: Investments: Unaffiliated companies 7,599,655 (31,891,633) (826,576) 27,331 Affiliated companies -- 1,000,520 -- -- Closing and expiration of options written 378,568 -- (47,991) -- Foreign currency transactions 297,101 5,123,230 5,391 (93) Net change in unrealized appreciation or depreciation on: Investments 39,596,962 33,819,559 2,876,481 505,175 Translation of assets and liabilities denominated in foreign currencies 379,793 (2,166,551) 862 -- ------------------------------------------------------------ Net realized and unrealized gain 48,252,079 5,885,125 2,008,167 532,413 ------------------------------------------------------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $64,845,593 $8,730,638 $5,522,672 $536,986 ============================================================ *Interest $10,875 -- -- -- **Dividends: Unaffiliated companies $32,241 $381,116 $40 Affiliated companies -- $7,446 -- --
1. For the period from July 5, 1995 (commencement of operations) to December 31, 1995. See accompanying Notes to Financial Statements. 71 Oppenheimer Variable Account Funds Statements of Changes in Net Assets For the Years Ended December 31, 1995 and 1994
Oppenheimer Oppenheimer Oppenheimer Money High Income Bond Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ 1995 1994 1995 1994 1995 1994 OPERATIONS: Net investment income $4,149,627 $3,774,464 $11,343,977 $9,253,988 $11,813,502 $8,900,922 Net realized gain (loss) 5,356 (5,168) 622,733 (3,689,385) 1,310,131 (2,370,155) Net change in unrealized appreciation or depreciation -- -- 9,413,001 (8,629,376) 13,318,419 (8,824,731) ------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from from operations 4,154,983 3,769,296 21,379,711 (3,064,773) 26,442,052 (2,293,964) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income (4,149,626) (3,793,971) (12,039,383) (6,580,907) (11,209,883) (7,101,380) Distributions from net realized gain -- -- -- (2,106,023) -- (283,274) Distributions in excess of net realized gain -- -- -- -- -- -- BENEFICIAL INTEREST TRANSACTIONS: Net increase (decrease) in net assets resulting from beneficial interest transactions - Note 2 (24,289,814) 28,473,973 28,412,143 14,438,679 60,932,217 32,899,881 ------------------------------------------------------------------------------ NET ASSETS: Total increase (decrease) (24,284,457) 28,449,298 37,752,471 2,686,976 76,164,386 23,221,263 Beginning of period 89,670,917 61,221,619 95,698,309 93,011,333 135,067,384 111,846,121 ------------------------------------------------------------------------------ End of period $65,386,460 $89,670,917 $133,450,780 $95,698,309 $211,231,770 $135,067,384 ==============================================================================
See accompanying Notes to Financial Statements. 72 Oppenheimer Variable Account Funds Statements of Changes in Net Assets(Continued) For the Years Ended December 31, 1995 and 1994
Oppenheimer Oppenheimer Capital Oppenheimer Multiple Appreciation Growth Strategies Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ 1995 1994 1995 1994 1995 1994 OPERATIONS: Net investment income $1,123,451 $769,034 $1,297,719 $824,976 $16,593,514 $13,727,119 Net realized gain (loss) 22,379,477 (1,045,951) 8,674,291 1,441,127 8,275,324 8,803,106 Net change in unrealized appreciation or depreciation 47,042,428 (10,016,034) 16,396,856 (1,915,053) 39,976,755 (28,189,733) ------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from from operations 70,545,356 (10,292,951) 26,368,866 351,050 64,845,593 (5,659,508) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income (719,183) (218,275) (821,641) (516,871) (16,066,432) (13,056,112) Distributions from net realized gain (363,458) (17,112,748) (973,385) (127,540) (8,717,288) (1,925,053) Distributions in excess of net realized gain -- -- -- -- -- -- BENEFICIAL INTEREST TRANSACTIONS: Net increase (decrease) in net assets resulting from beneficial interest transactions - Note 2 70,167,835 76,512,412 29,852,876 6,875,487 49,134,087 62,417,829 ------------------------------------------------------------------------------ NET ASSETS: Total increase (decrease) 139,630,550 48,888,438 54,426,716 6,582,126 89,195,960 41,777,156 Beginning of period 185,773,541 136,885,103 63,283,174 56,701,048 292,067,204 250,290,048 ------------------------------------------------------------------------------ End of period $325,404,091 $185,773,541 $117,709,890 $63,283,174 $381,263,164 $292,067,204 ==============================================================================
See accompanying Notes to Financial Statements. 73 Oppenheimer Variable Account Funds Statements of Changes in Net Assets(Continued) For the Years Ended December 31, 1995 and 1994
Oppenheimer Oppenheimer Oppenheimer Global Strategic Growth & Securities Bond Income Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- 1995 1994 1995 1994 1995(1) OPERATIONS: Net investment income $2,845,513 $1,162,074 $3,514,505 $1,286,157 $4,573 Net realized gain (loss) (25,767,883) 385,837 (869,176) (796,115) 27,238 Net change in unrealized appreciation or depreciation 31,653,008 (24,015,375) 2,877,343 (1,120,872) 505,175 -------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from from operations 8,730,638 (22,467,464) 5,522,672 (630,830) 536,986 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income -- (359,955) (3,151,540) (1,161,570) (4,891) Distributions from net realized gain (8,174,158) (2,441,859) -- -- -- Distributions in excess of net realized gain -- -- -- (16,802) (37) BENEFICIAL INTEREST TRANSACTIONS: Net increase (decrease) in net assets resulting from beneficial interest transactions - Note 2 62,580,432 226,686,688 37,406,166 12,242,999 3,756,393 -------------------------------------------------------------------------- NET ASSETS: Total increase (decrease) 63,136,912 201,417,410 39,777,298 10,433,797 4,288,451 Beginning of period 297,841,921 96,424,511 20,320,315 9,886,518 -- -------------------------------------------------------------------------- End of period $360,978,833 $297,841,921 $60,097,613 $20,320,315 $4,288,451 ==========================================================================
1. For the period from July 5, 1995 (commencement of operations) to December 31, 1995. See accompanying Notes to Financial Statements. 74 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS
Oppenheimer Money Fund ------------------------------------------------------------------------------- Year Ended December 31, 1994 1993 1992 1991 1995 ------------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations - net investment income and net realized gain on investments .06 .04 .03 .04 .06 Dividends and distributions to shareholders (.06) (.04) (.03) (.04) (.06) ------------------------------------------------------------------------------- Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00 =============================================================================== TOTAL RETURN, AT NET ASSET VALUE (1) 5.62% 4.25% 3.09% 3.93% 6.18% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (in thousands) $65,386 $89,671 $61,221 $58,266 $58,709 Average net assets (in thousands) $75,136 $90,264 $57,654 $61,317 $75,747 Ratios to average net assets: Net investment income 5.52% 4.18% 3.12% 3.76% 5.97% Expenses .51% .43% .43% .50% .49% ----------------------------------------------------------------------- 1990 1989 1988 1987 1986 ----------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations - net investment income and net realized gain on investments .08 .09 .07 .06 .06 Dividends and distributions to shareholders (.08) (.09) (.07) (.06) (.06) ----------------------------------------------------------------------- Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00 ======================================================================= TOTAL RETURN, AT NET ASSET VALUE (1) 7.84% 9.56% 6.96% 6.74% 6.00% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (in thousands) $89,143 $68,440 $69,468 $42,538 $28,218 Average net assets (in thousands) $82,966 $67,586 $60,241 $35,138 $12,914 Ratios to average net assets: Net investment income 7.80% 8.82% 7.31% 6.33% 5.68% Expenses .51% .53% .55% .59% .75%
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends 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 of less than one full year. Total returns reflect changes in net investment income only. 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. See accompanying Notes to Financial Statements. 75 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer High Income Fund ------------------------------------------------------------------------------- Year Ended December 31, 1995 1994 1993 1992 1991 ------------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $9.79 $11.02 $9.74 $9.40 $7.90 Income (loss) from investment operations: Net investment income .98 .94 .82 1.19 1.28 Net realized and unrealized gain (loss) on investments and foreign currency .94 (1.27) 1.65 .43 1.30 transactions ------------------------------------------------------------------------------ Total income (loss) from investment operations 1.92 (.33) 2.47 1.62 2.58 ------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (1.08) (.66) (1.19) (1.28) (1.08) Distributions from net realized gain on investments and foreign currency transactions -- (.24) -- -- -- ------------------------------------------------------------------------------- Total dividends and distributions to shareholders (1.08) (.90) (1.19) (1.28) (1.08) ------------------------------------------------------------------------------- Net asset value, end of period $10.63 $ 9.79 $11.02 $9.74 $9.40 =============================================================================== TOTAL RETURN, AT NET ASSET VALUE(2) 20.37% (3.18)% 26.34% 17.92% 33.91% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $133,451 $ 95,698 $93,011 $40,817 $27,308 Average net assets (in thousands) $115,600 $101,096 $67,000 $36,861 $23,663 Ratios to average net assets: Net investment income 9.81% 9.15% 10.50% 12.08% 14.26% Expenses .81% .67% .68% .73% .75% Portfolio turnover rate(4) 107.1% 110.1% 135.7% 144.2% 108.0% ------------------------------------------------------------------------- 1990 1989 1988 1987 1986(1) ------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $8.59 $9.30 $9.14 $10.04 $10.00 Income (loss) from investment operations: Net investment income 1.21 1.09 1.12 1.30 .72 Net realized and unrealized gain (loss) on investments and foreign currency (.82) (.65) .23 (.51) (.24) transactions ------------------------------------------------------------------------- Total income (loss) from investment operations .39 .44 1.35 .79 .48 ------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (1.08) (1.08) (1.07) (1.55) (.44) Distributions from net realized gain on investments and foreign currency transactions -- (.07) (.12) (.14) -- ------------------------------------------------------------------------- Total dividends and distributions to shareholders (1.08) (1.15) (1.19) (1.69) (.44) ------------------------------------------------------------------------- Net asset value, end of period $7.90 $8.59 $9.30 $9.14 $10.04 ========================================================================= TOTAL RETURN, AT NET ASSET VALUE(2) 4.65% 4.84% 15.58% 8.07% 4.73% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $19,172 $23,698 $25,551 $21,768 $14,833 Average net assets (in thousands) $21,493 $26,040 $24,530 $20,637 $ 8,036 Ratios to average net assets: Net investment income 14.32% 11.52% 11.94% 13.13% 11.18%(3) Expenses .75% .75% .75% .75% .75%(3) Portfolio turnover rate(4) 95.1% 78.7% 57.9% 42.1% 18.3%
1. For the period from April 30, 1986 (commencement of operations) to December 31, 1986. 2. Assumes a hypothetical initial 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 of 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. 3. Annualized 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. 76 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Bond Fund ----------------------------------------------------------------------------- Year Ended December 31, 1995 1994 1993 1992 1991 ----------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $10.78 $11.65 $10.99 $11.15 $10.33 Income (loss) from investment operations: Net investment income .72 .76 .65 .87 .95 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.07 (.98) .76 (.17) .80 ----------------------------------------------------------------------------- Total income (loss) from investment operations 1.79 (.22) 1.41 .70 1.75 ----------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.73) (.62) (.75) (.86) (.93) Distributions from net realized gain on investments and foreign currency transactions -- (.03) -- -- -- ----------------------------------------------------------------------------- Total dividends and distributions to shareholders (.73) (.65) (.75) (.86) (.93) ----------------------------------------------------------------------------- Net asset value, end of period $11.84 $10.78 $11.65 $10.99 $11.15 ============================================================================= TOTAL RETURN, AT NET ASSET VALUE(1) 17.00% (1.94)% 13.04% 6.50% 17.63% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $211,232 $135,067 $111,846 $63,354 $32,762 Average net assets (in thousands) $170,929 $121,884 $ 87,215 $45,687 $22,169 Ratios to average net assets: Net investment income 6.91% 7.30% 7.20% 7.81% 8.73% Expenses .80% .57% .46% .56% .64% Portfolio turnover rate(2) 79.4% 35.1% 36.3% 41.3% 7.6% ---------------------------------------------------------------------------- 1990 1989 1988 1987 1986 ---------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $10.49 $10.15 $10.19 $11.15 $11.27 Income (loss) from investment operations: Net investment income .97 .98 .94 .97 .97 Net realized and unrealized gain (loss) on investments and foreign currency transactions (.18) .32 (.05) (.71) .09 ---------------------------------------------------------------------------- Total income (loss) from investment operations .79 1.30 .89 .26 1.06 ---------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.95) (.96) (.93) (1.17) (1.03) Distributions from net realized gain on investments and foreign currency transactions -- -- -- (.05) (.15) ---------------------------------------------------------------------------- Total dividends and distributions to shareholders (.95) (.96) (.93) (1.22) (1.18) ---------------------------------------------------------------------------- Net asset value, end of period $10.33 $10.49 $10.15 $10.19 $11.15 ============================================================================ TOTAL RETURN, AT NET ASSET VALUE(1) 7.92% 13.32% 8.97% 2.53% 10.12% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $16,576 $13,422 $ 9,989 $10,415 $7,377 Average net assets (in thousands) $15,088 $11,167 $11,028 $ 8,748 $4,647 Ratios to average net assets: Net investment income 9.30% 9.34% 9.08% 9.17% 8.71% Expenses .61% .64% .70% .75% .75% Portfolio turnover rate(2) 7.4% 5.4% 36.3% 5.9% 27.7%
1. Assumes a hypothetical initial 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 of 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. 2. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. 77 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Capital Appreciation Fund ------------------------------------------------------------------------------ Year Ended December 31, 1995 1994 1993 1992 1991 ------------------------------------------------------------------------------ PER SHARE OPERATING DATA: Net asset value, beginning of period $25.95 $31.64 $26.04 $23.24 $15.24 Income (loss) from investment operations: Net investment income .11 .10 .05 .06 .08 Net realized and unrealized gain (loss) on investments 8.29 (2.22) 6.71 3.43 8.18 ------------------------------------------------------------------------------ Total income (loss) from investment operations 8.40 (2.12) 6.76 3.49 8.26 ------------------------------------------------------------------------------ Dividends and distributions to shareholders: Dividends from net investment income (.09) (.04) (.06) (.14) (.26) Distributions from net realized gain on investments (.05) (3.53) (1.10) (.55) -- ------------------------------------------------------------------------------ Total dividends and distributions to shareholders (.14) (3.57) (1.16) (.69) (.26) ------------------------------------------------------------------------------ Net asset value, end of period $34.21 $25.95 $31.64 $26.04 $23.24 ============================================================================== TOTAL RETURN, AT NET ASSET VALUE(2) 32.52% (7.59)% 27.32% 15.42% 54.72% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $325,404 $185,774 $136,885 $83,335 $49,371 Average net assets (in thousands) $240,730 $153,832 $98,228 $56,371 $34,887 Ratios to average net assets: Net investment income .47% .50% .23% .30% .81% Expenses .78% .57% .47% .54% .63% Portfolio turnover rate(4) 125.5% 96.5% 122.8% 78.9% 122.3% Average brokerage commission rate(5) $0.18 -- -- -- -- ------------------------------------------------------------------------- 1990 1989 1988 1987 1986(1) ------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $20.40 $16.31 $14.39 $13.12 $16.21 Income (loss) from investment operations: Net investment income .32 .50 .33 .21 .12 Net realized and unrealized gain (loss) on investments (3.54) 3.93 1.60 1.67 (1.24) ------------------------------------------------------------------------- Total income (loss) from investment operations (3.22) 4.43 1.93 1.88 (1.12) ------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.53) (.34) -- (.34) (.21) Distributions from net realized gain on investments (1.41) -- (.01) (.27) (1.76) ------------------------------------------------------------------------- Total dividends and distributions to shareholders (1.94) (.34) (.01) (.61) (1.97) ------------------------------------------------------------------------- Net asset value, end of period $15.24 $20.40 $16.31 $14.39 $13.12 ========================================================================= TOTAL RETURN, AT NET ASSET VALUE(2) (16.82)% 27.57% 13.41% 14.34% (1.65)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $23,295 $27,523 $13,667 $9,692 $4,549 Average net assets (in thousands) $24,774 $21,307 $13,239 $8,598 $3,099 Ratios to average net assets: Net investment income 1.93% 3.27% 2.13% 1.68% 2.36%(3) Expenses .71% .68% .73% .75% 1.01%(3) Portfolio turnover rate(4) 222.0% 130.5% 128.7% 138.7% 100.1% Average brokerage commission rate(5) -- -- -- -- --
1. For the six months ended December 31, 1986. Operating results prior to August 15, 1986 were achieved by Centennial Capital Appreciation Fund, a separate investment company acquired by OCAP on August 14, 1986. 2. Assumes a hypothetical initial 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 of 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. 3. Annualized. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. 5. Total brokerage commissions paid on purchases and sales of portfolio securities for the period divided by the total number of related shares purchased and sold. See accompanying Notes to Financial Statements. 78 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Growth Fund ----------------------------------------------------------------------------- Year Ended December 31, 1995 1994 1993 1992 1991 ----------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $17.68 $17.70 $16.96 $15.17 $12.54 Income (loss) from investment operations: Net investment income .25 .22 .46 .16 .30 Net realized and unrealized gain (loss) on investments 6.10 (.05) .74 1.99 2.82 ----------------------------------------------------------------------------- Total income (loss) from investment operations 6.35 .17 1.20 2.15 3.12 ----------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.22) (.15) (.14) (.36) (.49) Distributions from net realized gain on investments and foreign currency transactions (.26) (.04) (.32) -- -- ----------------------------------------------------------------------------- Total dividends and distributions to shareholders (.48) (.19) (.46) (.36) (.49) ----------------------------------------------------------------------------- Net asset value, end of period $23.55 $17.68 $17.70 $16.96 $15.17 ============================================================================= TOTAL RETURN, AT NET ASSET VALUE(1) 36.65% .97% 7.25% 14.53% 25.54% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $117,710 $63,283 $56,701 $36,494 $22,032 Average net assets (in thousands) $88,803 $59,953 $46,389 $25,750 $18,810 Ratios to average net assets: Net investment income 1.46% 1.38% 1.13% 1.36% 2.82% Expenses .79% .58% .50% .61% .70% Portfolio turnover rate(2) 58.2% 53.8% 12.6% 48.7% 133.9% Average brokerage commission rate(3) $0.07 -- -- -- -- --------------------------------------------------------------------------- 1990 1989 1988 1987 1986 --------------------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $16.38 $13.64 $11.21 $12.53 $10.95 Income (loss) from investment operations: Net investment income .56 .66 .29 .20 .13 Net realized and unrealized gain (loss) on investments (1.79) 2.50 2.19 .24 1.76 --------------------------------------------------------------------------- Total income (loss) from investment operations (1.23) 3.16 2.48 .44 1.89 --------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.62) (.35) -- (.34) (.15) Distributions from net realized gain on investments and foreign currency transactions (1.99) (.07) (.05) (1.42) (.16) --------------------------------------------------------------------------- Total dividends and distributions to shareholders (2.61) (.42) (.05) (1.76) (.31) --------------------------------------------------------------------------- Net asset value, end of period $12.54 $16.38 $13.64 $11.21 $12.53 =========================================================================== TOTAL RETURN, AT NET ASSET VALUE(1) (8.21)% 23.59% 22.09% 3.32% 17.76% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $15,895 $19,301 $17,746 $14,692 $8,287 Average net assets (in thousands) $17,235 $18,596 $15,585 $15,121 $3,744 Ratios to average net assets: Net investment income 4.09% 3.72% 2.39% 1.56% 2.62% Expenses .71% .70% .70% .75% .75% Portfolio turnover rate(2) 267.9% 148.0% 132.5% 191.0% 100.9% Average brokerage commission rate(3) -- -- -- -- --
1. Assumes a hypothetical initial 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 of 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. 2. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. 3. Total brokerage commissions paid on purchases and sales of portfolio securities for the period divided by the total number of related shares purchased and sold. See accompanying Notes to Financial Statements. 79 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Multiple Strategies Fund ------------------------------------------------------------------------------ Year Ended December 31, 1995 1994 1993 1992 1991 ------------------------------------------------------------------------------ PER SHARE OPERATING DATA: Net asset value, beginning of period $12.91 $13.88 $12.47 $11.96 $10.90 Income (loss) from investment operations: Net investment income .66 .63 .55 .55 .69 Net realized and unrealized gain (loss) on investments, options written and foreign currency transactions 2.00 (.90) 1.41 .50 1.15 ------------------------------------------------------------------------------ Total income (loss) from investment operations 2.66 (.27) 1.96 1.05 1.84 ------------------------------------------------------------------------------ Dividends and distributions to shareholders: Dividends from net investment income (.65) (.60) (.55) (.54) (.78) Distributions from net realized gain on investments, options written and foreign currency transactions (.37) (.10) -- -- -- ------------------------------------------------------------------------------ Total dividends and distributions to shareholders (1.02) (.70) (.55) (.54) (.78) ------------------------------------------------------------------------------ Net asset value, end of period $14.55 $12.91 $13.88 $12.47 $11.96 ============================================================================== TOTAL RETURN, AT NET ASSET VALUE(2) 21.36% (1.95)% 15.95% 8.99% 17.48% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $381,263 $292,067 $250,290 $159,464 $124,634 Average net assets (in thousands) $344,745 $279,949 $199,954 $139,011 $117,000 Ratios to average net assets: Net investment income 4.81% 4.90% 4.44% 4.63% 5.95% Expenses .77% .56% .48% .55% .54% Portfolio turnover rate(4) 39.0% 31.4% 32.4% 57.8% 80.3% Average brokerage commission rate(5) $0.04 -- -- -- -- ----------------------------------------------------------------- 1990 1989 1988 1987(1) ----------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $12.30 $11.58 $10.04 $10.00 Income (loss) from investment operations: Net investment income .73 .73 .66 .44 Net realized and unrealized gain (loss) on investments, options written and foreign currency transactions (.97) 1.04 1.53 .07 ----------------------------------------------------------------- Total income (loss) from investment operations (.24) 1.77 2.19 .51 ----------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.70) (.68) (.65) (.43) Distributions from net realized gain on investments, options written and foreign currency transactions (.46) (.37) -- (.04) ----------------------------------------------------------------- Total dividends and distributions to shareholders (1.16) (1.05) (.65) (.47) ----------------------------------------------------------------- Net asset value, end of period $10.90 $12.30 $11.58 $10.04 ================================================================= TOTAL RETURN, AT NET ASSET VALUE(2) (1.91)% 15.76% 22.15% 3.97% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $118,888 $121,286 $78,386 $53,291 Average net assets (in thousands) $123,231 $101,057 $64,298 $34,256 Ratios to average net assets: Net investment income 6.53% 6.36% 6.18% 6.12%(3) Expenses .55% .57% .58 .65%(3) Portfolio turnover rate(4) 99.2% 66.9% 110.0% 46.9% Average brokerage commission rate(5) -- -- -- --
1. For the period from February 9, 1987 (commencement of Operations) to December 31, 1987. 2. Assumes a hypothetical initial 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 of 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. 3. Annualized. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. 5. Total brokerage commissions paid on purchases and sales of portfolio securities for the period divided by the total number of related shares purchased and sold. See accompanying Notes to Financial Statements. 80 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Global Securities Fund ---------------------------------------------------------------- Year Ended December 31, 1995 1994 1993 ----------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $15.09 $16.30 $9.57 Income (loss) from investment operations: Net investment income .12 .04 (.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions .19 (.96) 6.75 ----------------------------------------------------------------- Total income (loss) from investment operations .31 (.92) 6.73 ----------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income -- (.04) -- Distributions from net realized gain on investments and foreign currency transactions (.40) (.25) -- ----------------------------------------------------------------- Total dividends and distributions to shareholders (.40) (.29) -- ----------------------------------------------------------------- Net asset value, end of period $15.00 $15.09 $16.30 ================================================================= TOTAL RETURN, AT NET ASSET VALUE(2) 2.24% (5.72)% 70.32% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $360,979 $297,842 $96,425 Average net assets (in thousands) $332,336 $214,545 $31,696 Ratios to average net assets: Net investment income .86% .54% .72% Expenses .89% .91% .92% Portfolio turnover rate(4) 131.3% 70.4% 65.1% Average brokerage commission rate(5) $0.01 -- -- ----------------------------------------------------------------- 1992 1991 1990(1) ----------------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $10.38 $10.04 $10.00 Income (loss) from investment operations: Net investment income .07 .04 -- Net realized and unrealized gain (loss) on investments and foreign currency transactions (.80) .30 .04 --------------------------------------------------------------- Total income (loss) from investment operations (.73) .34 .04 --------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.04) -- -- Distributions from net realized gain on investments and foreign currency transactions (.04) -- -- --------------------------------------------------------------- Total dividends and distributions to shareholders (.08) -- -- --------------------------------------------------------------- Net asset value, end of period $9.57 $10.38 $10.04 =============================================================== TOTAL RETURN, AT NET ASSET VALUE(2) (7.11)% 3.39% .40% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $13,537 $7,339 $ 432 Average net assets (in thousands) $11,181 $3,990 $ 263 Ratios to average net assets: Net investment income 1.04% .75% .08%(3) Expenses 1.06% 1.32% 6.84%(3) Portfolio turnover rate(4) 34.1% 29.5% 0.0% Average brokerage commission rate(5) -- -- --
1. For the period from November 12, 1990 (commencement of operations) to December 31, 1990. 2. Assumes a hypothetical initial 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 of 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. 3. Annualized. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. 5. Total brokerage commissions paid on purchases and sales of portfolio securities for the period divided by the total number of related shares purchased and sold. See accompanying Notes to Financial Statements. 81 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Strategic Bond Fund -------------------------------------------------------- Year Ended December 31, 1995 1994 1993(1) -------------------------------------------------------- PER SHARE OPERATING DATA: Net asset value, beginning of period $4.60 $5.12 $5.00 Income (loss) from investment operations: Net investment income .38 .35 .10 Net realized and unrealized gain (loss) on investments, options written and foreign currency transactions .30 (.54) .11 -------------------------------------------------------- Total income (loss) from investment operations .68 (.19) .21 -------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.37) (.32) (.09) Distributions from net realized gain on investments -- -- -- Distributions in excess of net realized gain on investments, options written and foreign currency transactions -- (.01) -- -------------------------------------------------------- Total dividends and distributions to shareholders (.37) (.33) (.09) -------------------------------------------------------- Net asset value, end of period $4.91 $4.60 $5.12 ======================================================== TOTAL RETURN, AT NET ASSET VALUE(2) 15.33% (3.78)% 4.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $60,098 $20,320 $9,887 Average net assets (in thousands) $37,698 $15,389 $4,259 Ratios to average net assets: Net investment income 9.32% 8.36% 5.67%(3) Expenses .85% .87% .96%(3) Portfolio turnover rate(4) 87.0% 136.6% 10.9%
1. For the period from May 3, 1993 (commencement of operations) to December 31, 1993. 2. Assumes a hypothetical initial 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 of 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. 3. Annualized. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. 82 Oppenheimer Variable Account Funds FINANCIAL HIGHLIGHTS (Continued)
Oppenheimer Growth & Income Fund --------------- Year Ended December 31, 1995(1) --------- PER SHARE OPERATING DATA: Net asset value, beginning of period $10.00 Income (loss) from investment operations: Net investment income .01 Net realized and unrealized gain (loss) on investments, options written and foreign currency transactions 2.52 --------- Total income (loss) from investment operations 2.53 --------- Dividends and distributions to shareholders: Dividends from net investment income (.02) Distributions from net realized gain on investments -- Distributions in excess of net realized gain on investments, options written and foreign currency transactions -- --------- Total dividends and distributions to shareholders (.02) --------- Net asset value, end of period $12.51 ========= TOTAL RETURN, AT NET ASSET VALUE(2) 25.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $4,288 Average net assets (in thousands) $1,809 Ratios to average net assets: Net investment income 0.50%(3) Expenses 2.07%(3) Portfolio turnover rate(4) 23.7% Average brokerage commission rate(5) $0.34
1. For the period from July 5, 1995 (commencement of operations) to December 31, 1995 2. Assumes a hypothetical initial 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 of 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. 3. Annualized. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. 5. Total brokerage commissions paid on purchases and sales of portfolio securities for the period divided by the total number of related shares purchased and sold. See accompanying Notes to Financial Statements. 83 Oppenheimer Variable Account Funds Notes to Financial Statements 1. Significant Accounting Policies Oppenheimer Money Fund (OMF), Oppenheimer High Income Fund (OHIF), Oppenheimer Bond Fund (OBF), Oppenheimer Capital Appreciation Fund (OCAP), Oppenheimer Growth Fund (OGF), Oppenheimer Multiple Strategies Fund (OMSF), Oppenheimer Global Securities Fund (OGSF), Oppenheimer Strategic Bond Fund (OSBF) and Oppenheimer Growth & Income Fund (OGIF) (collectively, the Funds) are separate series of Oppenheimer Variable Account Funds (the Trust), a diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Funds. The Funds' objectives are as follows: Oppenheimer Money Fund seeks the maximum current income from investments in "money market" securities consistent with low capital risk and the maintenance of liquidity. Oppenheimer High Income Fund seeks a high level of current income from investments in high yield fixed-income securities. Oppenheimer Bond Fund primarily seeks a high level of current income from investments in high yield fixed-income securities rated "Baa" or better by Moody's or "BBB" or better by Standard & Poor's. Secondarily, this Fund seeks capital growth when consistent with its primary objective. Oppenheimer Capital Appreciation Fund seeks to achieve capital appreciation by investing in "growth-type" companies. Oppenheimer Growth Fund seeks to achieve capital appreciation by investing in securities of well-known established companies. Oppenheimer Multiple Strategies Fund seeks a total investment return (which includes current income and capital appreciation in the value of its shares) from investments in common stocks and other equity securities, bonds and other debt securities, and "money market" securities. Oppenheimer Global Securities Fund seeks long-term capital appreciation by investing a substantial portion of assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special institutions which are considered to have appreciation possibilities. Oppenheimer Strategic Bond Fund seeks a high level of current income principally derived from interest on debt securities and seeks to enhance such income by writing covered call options on: (i) debt securities, (ii) U.S. Government securities, and (iii) lower-rated high yield domestic debt securities. Oppenheimer Growth & Income Fund seeks a high total return (which includes growth in the value of its shares as well as current income) from equity and debt securities. From time to time this Fund may focus on small to medium capitalization common stocks, bonds and convertible securities. 84 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 1. Significant Accounting Policies (Continued) Investment Valuation. Portfolio securities of OMF are valued on the basis of amortized cost, which approximates market value. Portfolio securities of OHIF, OBF, OCAP, OGF, OMSF, OGSF, OSBF and OGIF are valued at the close of the New York Stock Exchange on each trading day. Listed and unlisted securities for which such information is regularly reported are valued at the last sale price of the day or, in the absence of sales, at values based on the closing bid or asked price or the last sale price on the prior trading day. Long-term and short-term "non-money market" debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities which cannot be valued by the approved portfolio pricing service are valued using dealer-supplied valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current market value, or are valued under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. Short-term "money market type" debt securities having a remaining maturity of 60 days or less are valued at cost (or last determined market value) adjusted for amortization to maturity of any premium or discount. Options are valued based upon the last sale price on the principal exchange on which the option is traded or, in the absence of any transactions that day, the value is based upon the last sale on the prior trading date if it is within the spread between the closing bid and asked prices. If the last sale price is outside the spread, the closing bid or asked price closest to the last reported sale price is used. Forward foreign currency exchange contracts are valued based on the closing prices of the forward currency contract rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. Securities Purchased on a When-Issued Basis. Delivery and payment for securities that have been purchased by OSBF on a forward commitment or when-issued basis can take place a month or more after the transaction date. During the period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. OSBF maintains, in a segregated account with its custodian, assets with a market value equal to the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of OSBF's net asset value to the extent the Fund makes such purchases while remaining substantially fully invested. In connection with its ability to purchase securities on a when-issued or forward commitment basis, OSBF may enter into mortgage "dollar-rolls" in which the Fund sells securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. The Fund records each dollar-roll as a sale and a new purchase transaction. Security Credit Risk. OHIF, OMSF and OSBF invest in high yield securities, which may be subject to a greater degree of credit risk, greater market fluctuations and risk of loss of income and principal, and may be more sensitive to economic conditions than lower yielding, higher rated fixed income securities. The Funds may acquire securities in default, and are not obligated to dispose of securities whose issuers subsequently default. At December 31, 1995, securities with an aggregate market value of $491,444 for OHIF and $67,873 for OSBF, representing 0.37% and 0.11% respectively, of the Funds' net assets, were in default. Foreign Currency Translation. The accounting records of the Funds are maintained in U.S. dollars. Prices of securities purchased by OHIF, OBF, OMSF, OGSF, OSBF and OGIF that are denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. 85 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 1. Significant Accounting Policies (Continued) For OHIF, OBF, OMSF, OGSF, OSBF and OGIF, 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 Funds' Statements of Operations. Repurchase Agreements. The Funds require the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Funds may be delayed or limited. Federal Taxes. The Trust intends for each Fund to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers, to shareholders. Therefore, no federal income or excise tax provision is required. At December 31, 1995, the following Funds had available for federal income tax purposes unused capital loss carryovers expiring in 2002 and 2003: OHIF -- $ 3,033,760 OGSF -- $17,569,501 OSBF -- $ 1,609,951 Distributions to Shareholders. Dividends and distributions to shareholders of OHIF, OBF, OCAP, OGF, OMSF, OGSF, OSBF and OGIF are recorded on the ex-dividend date. OMF intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, OMF may withhold dividends or make distributions of net realized gains. Classification of Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of premium amortization, paydown gains and losses and the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes. The character of the distributions made during the 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 dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gain (loss) was recorded by the Funds. Changes in classification made during the fiscal year ended December 31, 1995 are shown below:
----------------------------------------------------------------------------------- Adjustments for the Fiscal Year Ended December 31, 1995 ----------------------------------------------------------------------------------- Undistributed Net Investment Income Undistributed Net Realized Paid-in (Loss) Gain (Loss) on Investments Capital - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer High Income Fund 186,751 (186,751) -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Bond Fund (1,093,371) 1,093,371 -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Capital Appreciation Fund -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Growth Fund -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Multiple Strategies Fund (204,481) 204,481 -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Global Securities Fund (2,845,512) 6,264,762 (3,419,250) - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund 9,220 (9,220) -- - -------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Growth & Income Fund 37 (37) -- - --------------------------------------------------------------------------------------------------------------------------------
86 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 1. Significant Accounting Policies (Continued) Other. Investment transactions are accounted for on the date the investments are purchased or sold (trade date) and dividend income is recorded on the ex-dividend date. Discount on securities purchased by OHIF, OBF, OCAP, OGF, OMSF, OGSF, OSBF and OGIF is amortized over the life of the respective securities, in accordance with federal income tax requirements. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on an identified cost basis, which is the same basis used for federal income tax purposes. Dividends-in-kind are recognized as income on the ex-dividend date, at the current market value of the underlying security. Interest on payment-in-kind debt instruments is accrued as income at the coupon rate, and a market adjustment is made on the ex-date. The preparation of financial statements in conformity with 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 of 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. 87 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 2. Shares of Beneficial Interest The Funds have authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Oppenheimer Money Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 202,748,102 $202,748,102 175,917,558 $175,917,558 Dividends and distributions reinvested 4,222,747 4,222,747 3,640,684 3,640,684 Redeemed (231,260,663) (231,260,663) (151,084,269) (151,084,269) ------------------------------------------------------------- Net increase (decrease) (24,289,814) $(24,289,814) 28,473,973 $ 28,473,973 ============================================================= Oppenheimer High Income Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 5,873,231 $60,932,670 9,936,582 $ 81,477,904 Dividends and distributions reinvested 1,162,957 12,040,152 841,101 8,686,931 Redeemed (4,263,757) (44,560,679) (9,441,490) (75,726,156) ------------------------------------------------------------- Net increase (decrease) 2,772,431 $28,412,143 1,336,193 $ 14,438,679 ============================================================= Oppenheimer Bond Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 7,311,733 $83,544,442 5,002,623 $56,466,171 Dividends and distributions reinvested 976,291 11,209,883 666,678 7,384,654 Redeemed (2,972,687) (33,822,108) (2,744,016) (30,950,944) ------------------------------------------------------------- Net increase 5,315,337 $60,932,217 2,925,285 $32,899,881 ============================================================= Oppenheimer Capital Appreciation Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 8,882,212 $260,650,476 7,912,557 $173,453,586 Dividends and distributions reinvested 40,594 1,082,642 614,575 17,331,023 Redeemed (6,567,729) (191,565,283) (5,695,411) (114,272,197) ------------------------------------------------------------- Net increase 2,355,077 $70,167,835 2,831,721 $ 76,512,412 =============================================================
88 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 2. Shares of Beneficial Interest (Continued)
Oppenheimer Growth Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 4,302,304 $89,007,340 2,577,268 $45,230,951 Dividends and distributions reinvested 95,991 1,795,026 36,305 644,411 Redeemed (2,980,080) (60,949,490) (2,236,767) (38,999,875) ---------------------------------------------------------- Net increase 1,418,215 $29,852,876 376,806 $ 6,875,487 ============================================================= Oppenheimer Multiple Strategies Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 6,445,242 $88,771,497 9,807,084 $84,443,396 Dividends and distributions reinvested 1,818,313 24,783,721 1,140,244 14,981,165 Redeemed (4,671,097) (64,421,131) (6,353,523) (37,006,732) ------------------------------------------------------------- Net increase 3,592,458 $49,134,087 4,593,805 $62,417,829 ============================================================= Oppenheimer Global Securities Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 11,235,722 $166,766,446 22,151,454 $336,310,887 Dividends and distributions reinvested 585,961 8,174,158 178,687 2,801,813 Redeemed (7,497,205) (112,360,172) (8,503,911) (112,426,012) ------------------------------------------------------------- Net increase 4,324,478 $62,580,432 13,826,230 $226,686,688 ============================================================= Oppenheimer Strategic Bond Fund ------------------------------------------------------------- Year Ended Year Ended December 31, 1995 December 31, 1994 ------------------------------------------------------------- Shares Amount Shares Amount ------------------------------------------------------------- Sold 9,417,090 $44,897,472 3,749,500 $18,415,292 Dividends and distributions reinvested 661,301 3,151,540 247,485 1,178,372 Redeemed (2,245,623) (10,642,846) (1,508,782) (7,350,665) ------------------------------------------------------------- Net increase 7,832,768 $37,406,166 2,488,203 $12,242,999 =============================================================
89 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 2. Shares of Beneficial Interest (Continued)
Oppenheimer Growth & Income Fund ------------------------------------------- Year Ended December 31, 1995(1) ------------------------------------------- Shares Amount ------------------------------------------- Sold 358,253 $3,933,459 Dividends and distributions reinvested 404 4,928 Redeemed (15,863) (181,994) ------------------------------------------- Net increase 342,794 $3,756,393 ============================================
1. For the period from July 5, 1995 (commencement of operations) to December 31, 1995. 90 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 3. Unrealized Gains and Losses on Investments and Options Written At December 31, 1995, net unrealized appreciation or depreciation on investments and options written consisted of the following:
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic Growth & High Income Bond Appreciation Growth Strategies Securities Bond Income Fund Fund Fund Fund Fund Fund Fund Fund ------------------------------------------------------------------------------------------------------------- Gross appreciation $7,814,322 $9,892,102 $70,829,161 $25,616,239 $53,305,284 $37,997,341 $2,340,864 $599,103 Gross depreciation (2,103,465) (1,054,488) (7,853,814) (1,998,316) (11,146,651) (14,351,638) (493,040) (94,247) ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation $5,710,857 $8,837,614 $62,975,347 $23,617,923 $42,158,633 $23,645,703 $1,847,824 $504,856 ============================================================================================================= Purchases and sales of investment securities (excluding short-term securities) for the year ended December 31, 1995 were as follows: Purchases $145,095,379 $196,515,342 $318,974,082 $78,667,711 $123,862,840 $491,709,775 $67,228,738 $3,421,021 ============================================================================================================= Sales $112,222,617 $120,210,417 $255,116,481 $41,669,055 $117,669,946 $416,155,747 $26,588,452 $400,564 =============================================================================================================
91 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 4. Option Activity The Funds (except OMF, OCAP and OGF) may buy and sell put and call options, or write covered put and call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Funds generally purchase put options or write covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Funds will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statements of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a footnote to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Funds give up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. The Funds may also write over-the-counter options where the completion of the obligation is dependent upon the credit standing of the counterparty. OHIF option activity for the year ended December 31, 1995 was as follows:
CALL OPTIONS --------------------------- Number of Amount of Options Premiums --------------------------- Options outstanding at December 31, 1994 -- $ -- Options written 28,600 5,389 Options canceled in closing transactions (28,500) (3,959) --------------------------- Options outstanding at December 31, 1995 100 $ 1,430 ===========================
OBF option activity for the year ended December 31, 1995 was as follows:
CALL OPTIONS --------------------------- Number of Amount of Options Premiums --------------------------- Options outstanding at December 31, 1994 -- $ -- Options written 82,000 17,019 Options canceled in closing transactions (82,000 (17,019) --------------------------- Options outstanding at December 31, 1995 -- $ -- ===========================
92 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 4. Option Activity (Continued) OMSF option activity for the year ended December 31, 1995 was as follows:
CALL OPTIONS --------------------------- Number of Amount of Options Premiums --------------------------- Options outstanding at December 31, 1994 2,255 $ 607,682 Options written 8,275 2,150,503 Options canceled in closing transactions (1,894) (448,093) Options expired prior to exercise (2,353) (451,021) Options exercised (2,680) (758,976) --------------------------- Options outstanding at December 31, 1995 3,603 $1,100,095 ===========================
OSBF option activity for the year ended December 31, 1995 was as follows:
CALL OPTIONS --------------------------- Number of Amount of Options Premiums --------------------------- Options outstanding at December 31, 1994 307 $ 1,600 Options written 3,314 35,871 Options canceled in closing transactions (2,141) (20,467) Options expired prior to exercise (190) (763) Options exercised (290) (1,942) --------------------------- Options outstanding at December 31, 1995 1,000 $ 14,299 ===========================
5. Forward Foreign Currency Exchange Contracts A forward foreign currency exchange contract (forward contract) is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Funds (except OMF) use forward contracts to seek to manage foreign currency risks. They may also be used to tactically shift portfolio currency risk. The Funds generally enter into forward contracts as a hedge upon the purchase or sale of a security denominated in a foreign currency. In addition, the Funds may enter into such contracts as a hedge against changes in foreign currency exchange rates on portfolio positions. Forward contracts are valued based on the closing prices of the forward currency contract rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. The Funds will realize a gain or loss upon the closing or settlement of the forward transaction. Securities held in segregated accounts to cover net exposure on outstanding forward contracts are noted in the Statements of Investments where applicable. Unrealized appreciation or depreciation on forward contracts is reported in the Statements of Assets and Liabilities. Realized gains and losses are reported with all other foreign currency gains and losses in the Funds' Statements of Operations. 93 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 5. Forward Foreign Currency Exchange Contracts (Continued) Risks include the potential inability of the counterparty to meet the terms of the contract and unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At December 31, 1995, outstanding forward contracts to purchase and sell foreign currencies were as follows: Oppenheimer High Income Fund
Contract Unrealized Amount Valuation as of Appreciation Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation) - ------------------------------------------------------------------------------------------------------ Japanese Yen (JPY) 1/4/96 55,250 JPY $535,752 $ (9,657) New Zealand Dollar (NZD) 12/18/96 892 NZD 567,334 2,150 -------- $ (7,507) -------- Contracts to Sell - ------------------------------------------------------------------------------------------------------ Deutsche Mark (DEM) 1/4/96-2/21/96 3,670 DEM $2,562,764 $ (3,622) Japanese Yen (JPY) 12/18/96 54,625 JPY 553,249 11,934 -------- 8,312 -------- Net Unrealized Appreciation $ 805 ========
Oppenheimer Bond Fund Contract Unrealized Amount Valuation as of Appreciation Contracts to Sell Exchange Date (in 000s) December 31, 1995 (Depreciation) - ------------------------------------------------------------------------------------------------------ Australian Dollar (AUD) 1/4/96 59 AUD $43,775 $ 190 Deutsche Mark (DEM) 1/4/96-2/21/96 11 DEM 7,661,169 (15,712) -------- $(15,522) ========
Oppenheimer Multiple Strategies Fund
Contract Unrealized Amount Valuation as of Appreciation Contracts to Sell Exchange Date (in 000s) December 31, 1995 (Depreciation) - ------------------------------------------------------------------------------------------------------ Hong Kong Dollar (HKD) 1/2/96 707 HKD $91,439 $ 2 ========
94 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 5. Forward Foreign Currency Exchange Contracts (Continued) Oppenheimer Global Securities Fund
Contract Unrealized Amount Valuation as of Appreciation Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation) - ------------------------------------------------------------------------------------------------------ Hong Kong Dollar (HKD) 1/2/96-1/3/96 8,904 HKD $1,151,601 $ (218) Italian Lira (ITL) 1/31/96 3,888,129 ITL 2,438,922 (9,912) Japanese Yen (JPY) 1/4/96-1/5/96 75,155 JPY 728,792 (2,948) Singapore Dollar (SGD) 1/2/96-1/5/96 830 SGD 586,556 (853) Greek Drachma (GRD) 1/2/96-1/4/96 49,496 GRD 209,220 432 -------- $(13,499) -------- Contracts to Sell - ------------------------------------------------------------------------------------------------------ Austrian Schilling (ATS) 1/2/96 17,770 ATS $1,764,559 $(12,653) Swiss Franc (CHF) 1/4/96 279 CHF 242,200 (1,139) Deutsche Mark (DEM) 1/4/96 1,598 DEM 1,116,140 (5,709) Japanese Yen (JPY) 3/29/96 3,043,800 JPY 29,807,684 192,316 Norwegian Krone (NOK) 1/2/96-1/4/96 8,521 NOK 1,348,728 (9,042) --------- 163,773 --------- Net Unrealized Appreciation $150,274 =========
Oppenheimer Strategic Bond Fund
Contract Unrealized Amount Valuation as of Appreciation Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation) - ------------------------------------------------------------------------------------------------------ Japanese Yen (JPY) 1/4/96 33,988 JPY $329,572 $(5,982) New Zealand Dollar (NZD) 12/18/96 541 NZD 344,380 1,096 ------- $(4,886) ------- Contracts to Sell - ------------------------------------------------------------------------------------------------------ Australian Dollar (AUD) 1/4/96 22 AUD $16,134 $ (25) Deutsche Mark (DEM) 2/13/96 1,605 DEM 1,119,976 (5,393) Japanese Yen (JPY) 12/18/96 33,175 JPY 336,001 7,283 Swiss Franc (CHF) 2/13/96 860 CHF 748,739 (8,636) -------- (6,771) -------- Net Unrealized Depreciation $(11,657) ========
95 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 6. Management Fees and Other Transactions with Affiliates Management fees paid to the Manager were in accordance with the investment advisory agreements with the Trust. For OBF, OCAP, OGF, OMSF, OHIF, OGSF, OSBF and OGIF, the annual fees are .75% of the first $200 million of net assets, .72% of the next $200 million, .69% of the next $200 million, .66% of the next $200 million and .60% of net assets in excess of $800 million. In addition, management fees for OHIF, OBF and OSBF are .50% of net assets in excess of $1 billion. Management fees for OMF are .45% of the first $500 million, .425% of the next $500 million, .40% of the next $500 million and .375% of net assets in excess of $1.5 billion. For OSBF, the Manager has agreed to limit the management fee charged so that the ordinary operating expenses of the Fund will not exceed 1.0% of its average net assets in any fiscal year. 7. Illiquid and Restricted Securities At December 31, 1995, investments in securities included issues that are illiquid or restricted. The securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. The Funds intend to invest no more than 10% of net assets (determined at the time of purchase) in illiquid and restricted securities. Information concerning these securities is as follows: Oppenheimer High Income Fund
Acquisition Cost Valuation as of Security Date Per Unit December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Ames Department Stores, Inc., Excess Cash Flow Payment 12/30/92 $ 0.00 $ .01 Certificates, Series AG-7A Ames Department Stores, Inc., Litigation Trust 12/30/92 0.00 .01 Colombia (Republic of) 1989-1990 Integrated Loan Facility 12/5/95 92.00 93.00 Bonds, 6.875%, 7/1/01 ECM Fund, L.P.I 4/14/92 100.00 1,000.00 ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 4/14/92 100.00 110.00 Farley, Inc., Zero Coupon Sub. Debs., 14.151%, 12/30/12 1/1/93-3/6/95 7.44 9.88 Gillett Holdings, Inc., C1.2 12/1/92 10.50 20.00 Goldman, Sachs & Co., Argentina Local Market Securities 8/24/94 100.00 97.75 Trust, 11.30%, 4/1/00 Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 9/14/95 100.00 100.75 Triangle Wire & Cable, Inc. 5/2/94 9.50 1.00 Trinidad & Tobago Loan Participation Agreement, Tranche B, 12/13/95 .84 .82 1.563%, 9/30/00 - -------------------------------------------------------------------------------------------------------------------
The aggregate value of illiquid and restricted securities subject to the 10% limitation at December 31, 1995 was $3,708,444 or 2.78% of the Fund's net assets. Pursuant to guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. 96 Oppenheimer Variable Account Funds Notes to Financial Statements (Continued) 7. Illiquid and Restricted Securities (Continued) Oppenheimer Bond Fund
Acquisition Cost Valuation as of Security Date Per Unit December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Colombia (Republic of) 1989-1990 Integrated Loan 12/5/95 $ 92.00 $ 93.00 Facility Bonds, 6.875%, 7/1/01 Merrill Lynch & Co., Inc. 5/15/95 110.05 115.10 Units, 9.75% 6/15/99 - -------------------------------------------------------------------------------------------------------------------
The aggregate value of illiquid and restricted securities subject to the 10% limitation at December 31, 1995 was $2,745,392 or 1.30% of the Fund's net assets. Pursuant to guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. Oppenheimer Multiple Strategies Fund
Acquisition Cost Valuation as of Security Date Per Unit December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Santa Anita Realty Enterprises, Inc., Units 5/28/93-2/9/95 $16.99 $11.88 - -------------------------------------------------------------------------------------------------------------------
The aggregate value of illiquid and restricted securities subject to the 10% limitation at December 31, 1995 was $475,000 or 0.12% of the Fund's net assets. Pursuant to guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. Oppenheimer Global Securities Fund
Acquisition Cost Valuation as of Security Date Per Unit December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Plant Genetics Systems 5/27/92-3/7/95 $13.77 $11.91 Plant Genetics, Inc. Wts., Exp. 12/99 3/7/95 0.00 1.99 - -------------------------------------------------------------------------------------------------------------------
The aggregate value of illiquid and restricted securities subject to the 10% limitation at December 31, 1995, was $1,180,542, or 0.33% of the Fund's net assets. Pursuant to the guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. Oppenheimer Strategic Bond Fund
Acquisition Cost Valuation as of Security Date Per Unit December 31, 1995 - ------------------------------------------------------------------------------------------------------------------- Colombia (Republic of) 1989-1990 Integrated Loan 12/5/95 $ 92.00 $ 93.00 Facility Bonds, 6.875%, 7/1/01 Goldman, Sachs & Co., Argentina Local Market Securities 8/24/94 100.00 97.75 Trust, 11.30%, 4/1/00 Jamaica (Government of) 1990 Refinancing Agreement 8/15/95 89.75 90.00 Nts., Tranche A, 6.75%, 10/16/00 Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 9/15/95 100.00 100.75 Trinidad & Tobago Loan Participation Agreement, Tranche A, 1.563%, 9/30/00 12/13/95-12/18/95 .84 .82 United Mexican States, Combined Facility 3, Loan 10/25/94 89.00 75.75 Participation Agreement, Tranche A, 6.50%, 9/20/97 - -------------------------------------------------------------------------------------------------------------------
The aggregate value of illiquid and restricted securities subject to the 10% limitation at December 31, 1995, was $1,221,735, or 2.03% of the Fund's net assets. Pursuant to the guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. 97 Independent Auditors' Report The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds: We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Oppenheimer Money Fund, Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer Capital Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple Strategies Fund, Oppenheimer Global Securities Fund, Oppenheimer Strategic Bond Fund and Oppenheimer Growth & Income Fund (all of which are series of Oppenheimer Variable Account Funds) as of December 31, 1995, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for the applicable periods ended December 31, 1995, 1994, 1993, 1992, 1991, 1990, 1989, 1988, 1987 and 1986. These financial statements and financial highlights are the responsibility of the Funds' 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 generally accepted auditing standards. 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 examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also 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, such financial statements and financial highlights present fairly, in all material respects, the financial position of Oppenheimer Money Fund, Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer Capital Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple Strategies Fund, Oppenheimer Global Securities Fund, Oppenheimer Strategic Bond Fund and Oppenheimer Growth & Income Fund at December 31, 1995, the results of their operations, the changes in their net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado January 22, 1996 98 Federal Income Tax Information (Unaudited) In early 1996, shareholders will receive information regarding all dividends and distributions paid to them by the Funds during calendar year 1995. Regulations of the U.S. Treasury Department require the Funds to report this information to the Internal Revenue Service. Certain distributions paid on March 24, 1995 were designated as "capital gain distributions" for federal income tax purposes. These distributions are shown in the table below. Whether received in stock or cash, a capital gain distribution should be treated by shareholders as a gain from the sale of capital assets held for more than one year (long-term capital gains). Dividends paid by the Funds during the fiscal year ended December 31, 1995 which are not designated as capital gain distributions should be multiplied by the percentages listed below to arrive at the net amount eligible for the corporate dividend-received deduction.
- -------------------------------------------------------------------------------------------------------- Long-Term Capital Corporate Dividend- Gain Distribution Received Deduction - -------------------------------------------------------------------------------------------------------- Oppenheimer Money Fund -- -- - -------------------------------------------------------------------------------------------------------- Oppenheimer High Income Fund -- 4.90% - -------------------------------------------------------------------------------------------------------- Oppenheimer Bond Fund -- 0.75% - -------------------------------------------------------------------------------------------------------- Oppenheimer Capital Appreciation Fund $.047 4.14% - -------------------------------------------------------------------------------------------------------- Oppenheimer Growth Fund $.263 18.31% - -------------------------------------------------------------------------------------------------------- Oppenheimer Multiple Strategies Fund $.371 12.64% - -------------------------------------------------------------------------------------------------------- Oppenheimer Global Securities Fund $.382 -- - -------------------------------------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund -- 2.18% - -------------------------------------------------------------------------------------------------------- Oppenheimer Growth & Income Fund -- 38.51% - --------------------------------------------------------------------------------------------------------
The foregoing information is presented to assist shareholders in reporting distributions received from the Funds 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 the state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 99 Oppenheimer Variable Account Funds Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Bridget A. Macaskill, Trustee and President Ned M. Steel, Trustee Robert C. Doll, Sr. Vice President Paul LaRocco, Vice President Robert J. Milnamow, Vice President David P. Negri, Vice President Jane Putnam, Vice President Richard H. Rubinstein, Vice President Arthur Steinmetz, Vice President William Wilby, Vice President Arthur J. Zimmer, Vice President Andrew J. Donohue, Vice President George C. Bowen, Vice President, Secretary and Treasurer Robert J. Bishop, Assistant Treasurer Scott Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Advisor OppenheimerFunds, Inc. Transfer Agent OppenheimerFunds Services Custodian of Portfolio Securities The Bank of New York Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Oppenheimer Variable Account Funds. This report must be preceded or accompanied by a Prospectus of Oppenheimer Variable Account Funds. For material information concerning the Funds, see the Prospectus. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested. 100 Oppenheimer Zero Coupon U.S. Treasuries Trust Series A, B, C, D, E & F Annual Report dated December 31, 1995 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statements of condition, including the related portfolios of the 2000 Series and the 2005 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A, as of December 31, 1995 and the related statements of operations and changes in net assets, including the 1995 Series, for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A at December 31, 1995, and the results of its operations and changes in its net assets, for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Statements of Condition as of December 31, 1995 - --------------------------------------------------------------------------------
2000 2005 Series Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities (see Portfolios) . $4,947,694 $2,480,298 Cash ................................................. 6,469 6,388 Accrued interest receivable .......................... -- 1,179 ---------- ---------- Total trust property ................... 4,954,163 2,487,865 Less Liabilities ..................................... 6,469 7,567 ---------- ---------- Net Assets - Note 2 .................................. $4,947,694 $2,480,298 ========== ========== Units Outstanding .................................... 6,317,200 4,190,859 ========== ========== Unit Value ........................................... $ .78321 $ .59184 ========== ==========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Statements of Operations For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1995 Series ------------------------------------ 1995 1994 1993 Investment Income: Interest Income .................................. $ 544 $ 1,519 $ 1,745 Accretion of original issue discount ............. 115,462 313,348 308,088 Trustee's fees and expenses - Note 3 ............. (544) (1,519) (1,745) --------- --------- --------- Net investment income ............................ 115,462 313,348 308,088 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ......... 44,727 19,535 4,281 Net change in unrealized appreciation of investments ............................... (44,727) (227,102) (101,947) --------- --------- --------- Net gain (loss) on investments ................... 0 (207,567) (97,666) --------- --------- --------- Net Increase in Net Assets Resulting from Operations .............................. $ 115,462 $ 105,781 $ 210,422 ========= ========= =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Statements of Operations For the Years Ended December 31, 1995, 1994 and 1993 (Concluded) - --------------------------------------------------------------------------------
2000 Series 2005 Series ----------------------------------- ----------------------------------- 1995 1994 1993 1995 1994 1993 - -------------------------------------------------------------------------------------------------------------------------------- Investment Income: Interest Income .................................. $ 1,763 $ 3,320 $ 4,001 $ 1,838 $ 1,723 $ 2,240 Accretion of original issue discount ............. 355,702 391,867 431,009 150,094 138,092 167,463 Trustee's fees and expenses - Note 3 ............. (1,763) (3,320) (4,001) (1,838) (1,723) (2,240) --------- --------- --------- --------- --------- --------- Net investment income ............................ 355,702 391,867 431,009 150,094 138,092 167,463 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ......... 88,501 217,516 140,068 -- 88,245 92,226 Net change in unrealized appreciation of investments ............................... 433,005 (967,987) 299,144 435,195 (424,886) 214,645 --------- --------- --------- --------- --------- --------- Net gain (loss) on investments ................... 521,506 (750,471) 439,212 435,195 (336,641) 306,871 --------- --------- --------- --------- --------- --------- Net Increase (Decrease) in Net Assets Resulting from Operations .............................. $ 877,208 $(358,604) $ 870,221 $ 585,289 $(198,549) $ 474,334 ========= ========= ========= ========= ========= =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Statements of Changes in Net Assets For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1995 Series ------------------------------------------ 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ............................................ $ 115,462 $ 313,348 $ 308,088 Realized gain on securities transactions ......................... 44,727 19,535 4,281 Net unrealized appreciation (depreciation) of investments ...... (44,727) (227,102) (101,947) ----------- ----------- ----------- Net increase in net assets resulting from operations ............. 115,462 105,781 210,422 Capital Share Transactions - Note 4 Issuance of Units ................................................ -- 25,325 -- Redemption of Units .............................................. (3,334,225) (615,786) (54,412) ----------- ----------- ----------- Net increase (decrease) in net assets ..................................................... (3,218,763) (484,680) 156,010 Net Assets: Beginning of period .............................................. $ 3,218,763 $ 3,703,443 3,547,433 ----------- ----------- ----------- End of period .................................................... $ 0 $ 3,218,763 $ 3,703,443 =========== =========== ===========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Statements of Changes in Net Assets For the Years Ended December 31, 1995, 1994 and 1993 (Concluded) - --------------------------------------------------------------------------------
2000 Series 2005 Series ----------------------------------- --------------------------------------- 1995 1994 1993 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ......... $ 355,702 $ 391,867 $ 431,009 $ 150,094 $ 138,092 $ 167,463 Realized gain on securities transactions ................ 88,501 217,516 140,068 -- 88,245 92,226 Net unrealized appreciation (depreciation) of investments ................. 433,005 (967,987) 299,144 435,195 (424,886) 214,645 ----------- ----------- -------- -------- --------- ----------- Net increase (decrease) in net assets resulting from operations ... 877,208 (358,604) 870,221 585,289 (198,549) 474,334 Capital Share Transactions - Note 4 Issuance of Units ............. 201,027 -- 130,275 203,754 101,879 -- Redemption of Units ............... (734,385) (1,274,581) (646,397) -- (559,832) (470,251) ---------- ---------- ---------- ----------- --------- ----------- Net increase (decrease) in net assets .................. 343,850 (1,633,185) 354,099 789,043 (656,502) 4,083 Net Assets: Beginning of period ........... 4,603,844 6,237,029 5,882,930 $1,691,255 2,347,757 2,343,674 ---------- ---------- ---------- ----------- ---------- ----------- End of period ................. $4,947,694 $4,603,844 $6,237,029 $2,480,298 $1,691,255 $2,347,757 ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities have been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, ----------------------------------- 1995 1994 1993 ---- ---- ---- 1995 Series Cost of 3,289,707 and 3,904,361 Units, respectively................... $1,540,647 $1,838,780 Less sales charge..................................................... 23,878 25,358 ---------- ---------- Net amount applicable to certificateholders........................... 1,516,769 1,813,422 Accretion of original issue discount.................................. 1,657,267 1,618,192 Net unrealized appreciation of investments............................ 44,727 271,829 ---------- ----------- Net capital applicable to certificateholders.......................... $3,218,763 $3,703,443 ========== ========== 2000 Series Cost of 6,317,200, 7,078,028 and 8,963,103 Units, respectively ....... $2,646,690 $2,813,369 $3,421,333 Less sales charge .................................................... 14,678 19,997 32,898 ---------- ---------- ---------- Net amount applicable to certificateholders .......................... 2,632,012 2,793,372 3,388,435 Accretion of original issue discount ................................. 1,648,079 1,575,873 1,646,008 Net unrealized appreciation of investments ........................... 667,604 234,599 1,202,586 ---------- ---------- ---------- Net capital applicable to certificateholders ......................... $4,947,694 $4,603,844 $6,237,029 ========== ========== ========== 2005 Series Cost of 4,190,859, 3,768,568 and 4,728,778 Units, respectively ....... $1,297,142 $1,090,285 $1,321,058 Less sales charge .................................................... 24,133 21,030 28,042 ---------- ---------- ---------- Net amount applicable to certificateholders .......................... 1,273,009 1,069,255 1,293,016 Accretion of original issue discount ................................. 623,473 473,379 481,234 Net unrealized appreciation of investments ........................... 583,816 148,621 573,507 ---------- ---------- ---------- Net capital applicable to certificateholders ......................... $2,480,298 $1,691,255 $2,347,757 ========== ========== ==========
3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 (Concluded) - -------------------------------------------------------------------------------- 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the years ended December 31, 1995, 1994, and 1993 as follows:
Series 1995 1994 1993 - ------ ---- ---- ---- 1995 ..................... - 26,113 - 2000 ..................... 278,488 - 201,075 2005 ..................... 422,291 226,227 -
Redemption During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as follows:
Series 1995 1994 1993 - ------ ---- ---- ---- 1995 ...................... - 640,767 60,260 2000 ...................... 1,039,316 1,885,075 995,319 2005 ...................... - 1,186,437 1,010,482
The total proceeds were remitted to the Sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that each Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. In May of 1995 Series 1995 matured and distributions of $3,306,500 were made. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A Portfolios as of December 31, 1995
- ---------------------------------------------------------------------------------------------- Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - ---------------------------------------------------------------------------------------------- 2000 Series Stripped Treasury Securities 0% 8-15-00 $6,317,200 $4,280,090 $4,947,694 ========== ========== ========== 2005 Series Stripped Treasury Securities 0% 5-15-05 $4,168,125 $1,875,571 $2,455,234 U.S. Treasury Notes ........ 8.25% 5-15-05 22,734 20,911 25,064 ---------- ---------- ---------- Total ................ $4,190,859 $1,896,482 $2,480,298 ========== ========== ==========
- ------------- (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 2000 4,956,608 2005 2,489,274
See Notes to Financial Statements. Investment Summary of Series A+ as of December 31, 1995 - -------------------------------------------------------------------------------- Series A is a series unit investment trust consisting of nine separate series, each with its own portfolio. At December 31, 1995 there are two series which are still outstanding; these are the 2000 Series and the 2005 Series, designated for the maturities of their underlying Portfolios (see Portfolios herein).
2000 2005 Series Series - --------------------------------------------------------------------------------------------------------------------------- Face Amount of Securities .................................................................. $6,317,200 $4,190,859 Number of Units ............................................................................ 6,317,200 4,190,859 Fractional Undivided Interest in Fund Represented by Each Unit ............................. 1/6,317,200 rd 1/4,190,859 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund* ............................... $4,956,608.00 $2,489,274.00 ------------- ------------- Divided by number of Units times 1,000 .................................................. $ 784.62 $ 593.98 Plus the applicable transaction charge** ................................................ 7.85 8.91 -------------- ------------- Offering Price per 1,000 Units .......................................................... $ 792.47 $ 602.89 ============== ============= Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of underlying Securities) ............................................... $ 784.62 $ 593.98 Redemption Price Per 1,000 Units (based on bid side evaluation of underlying Securities)**** ............................................................ $ 783.21 $ 591.84 Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 Units ..................................................... $ 0.45 $ 0.45 Less estimated annual expense per 1,000 Units ........................................... 0.45 0.45 -------------- ------------- Net annual income per 1,000 Units....................................................... $ 0.00 $ 0.00 ============== ============= Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges) ................................................................... $ 0.35 $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 P.M. New York Time Mandatory Termination Date January 1, 2035 Minimum Value of Fund Trust Indenture may be terminated with respect to any Series if the value of that Series is less than 40% of the face amount of Securities.
- -------------------------------- + The Indenture was signed and the initial deposit was made as of March 20, 1985. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charges currently applicable to the 2000 Series and the 2005 Series are 1.00% and 1.50% of their respective offering prices per 1,000 Units (1.010% and 1.523%, respectively, of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charge as described in the preceding footnote. These figures assume a purchase of 1,000 Units. The price of a single Unit, or any multiple thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000 and multiplying by the number of Units. **** Figures shown are $9.26 and $11.05 less than the Offering Price per 1,000 Units and $1.41 and $2.14 less than the Sponsor's Repurchase Price per 1,000 Units with respect to the 2000 Series and the 2005 Series, respectively. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statements of condition, including the related portfolios of the 1996 Series and the 2006 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B, as of December 31, 1995 and the related statements of operations and changes in net assets for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B at December 31, 1995 and the results of its operations and changes in its net assets for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Statements of Condition as of December 31, 1995
- -------------------------------------------------------------------------------- 1996 2006 Series Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities (see Portfolios) . $1,984,045 $1,471,967 Cash ................................................. 2,941 4,032 Accrued interest receivable .......................... -- 447 ---------- ---------- Total trust property ................... 1,986,986 1,476,446 Less Liabilities ..................................... 2,941 4,479 ---------- ---------- Net Assets - Note 2 .................................. $1,984,045 $1,471,967 ========== ========== Units Outstanding .................................... 1,996,283 2,643,019 ========== ========== Unit Value ........................................... $ .99387 $ .55693 ========== ==========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Statements of Operations For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1996 Series ------------------------------------- 1995 1994 1993 - ---------------------------------------------------------------------------------------------------- Investment Income: Interest Income ............................................ $ 783 $ 896 $ 896 Accretion of original issue discount ....................... 148,374 137,229 126,935 Trustee's fees and expenses - Note 3 ....................... (783) (896) (896) --------- --------- --------- Net investment income ...................................... 148,374 137,229 126,935 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ................... -- -- -- Net change in unrealized appreciation of investments ........................................ (1,121) (120,896) 8,942 --------- --------- --------- Net gain (loss) on investments ............................. (1,121) (120,896) 8,942 --------- --------- --------- Net Increase in Net Assets Resulting from Operations ....................................... $ 147,253 $ 16,333 $ 135,877 ========= ========= =========
2006 Series ------------------------------------- 1995 1994 1993 - ---------------------------------------------------------------------------------------------------- Investment Income: Interest Income ............................................ $ 1,181 $ 1,254 $ 1,439 Accretion of original issue discount ....................... 90,865 90,387 94,089 Trustee's fees and expenses - Note 3 ....................... (1,181) (1,254) (1,439) --------- --------- --------- Net investment income ...................................... 90,865 90,387 94,089 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ................... 1,973 41,479 8,786 Net change in unrealized appreciation of investments ........................................ 281,043 (253,202) 176,267 --------- --------- --------- Net gain (loss) on investments ............................. 283,016 (211,723) 185,053 --------- --------- --------- Net Increase (Decrease) in Net Assets Resulting from Operations ...................................... $ 373,881 $(121,336) $ 279,142 ========= ========= =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Statements of Changes in Net Assets For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1996 Series ------------------------------------------ 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ............................................. $ 148,374 $ 137,229 $ 126,935 Realized gain on securities transactions .......................... -- -- -- Net unrealized appreciation (depreciation) of investments ......... (1,121) (120,896) 8,942 ----------- ----------- ----------- Net increase in net assets resulting from operations .............. 147,253 16,333 135,877 Capital Share Transactions - Note 4 Redemption of Units ............................................... (8,970) -- -- ----------- ----------- ----------- Net increase (decrease) in net assets..................................................... 138,283 16,333 135,877 Net Assets: Beginning of period ............................................... 1,845,762 1,829,429 1,693,552 ----------- ----------- ----------- End of period ..................................................... $ 1,984,045 $ 1,845,762 $ 1,829,429 =========== =========== ===========
2006 Series ------------------------------------------ 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ............................................. $ 90,865 $ 90,387 $ 94,089 Realized gain on securities transactions .......................... 1,973 41,479 8,786 Net unrealized appreciation (depreciation) of investments ......... 281,043 (253,202) 176,266 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations ... 373,881 (121,336) 279,141 Capital Share Transactions - Note 4 Redemption of Units ............................................... (16,208) (244,993) (51,719) ----------- ----------- ----------- Net increase (decrease) in net assets ...................................................... 357,673 (366,329) 227,422 Net Assets: Beginning of period ............................................... 1,114,294 1,480,623 1,253,201 ----------- ----------- ----------- End of period ..................................................... $ 1,471,967 $ 1,114,294 $ 1,480,623 =========== =========== ===========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities have been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, ------------------------------------ 1995 1994 1993 ---- ---- ---- 1996 Series Cost of 1,996,283, 2,004,095, and 2,004,095 Units, respectively ................................... $ 982,265 $ 991,255 $ 991,255 Less sales charge ................................. 15,989 16,008 16,009 ---------- ---------- ---------- Net amount applicable to certificateholders ....... 966,276 975,247 975,246 Accretion of original issue discount .............. 1,010,472 862,097 724,869 Net unrealized appreciation of investments ........ 7,297 8,418 129,314 ---------- ---------- ---------- Net capital applicable to certificateholders ...... $1,984,045 $1,845,762 $1,829,429 ========== ========== ========== 2006 Series Cost of 2,643,019, 2,678,166 and 3,220,427 Units, respectively ................................... $ 764,716 $ 775,044 $ 934,290 Less sales charge ................................. 7,419 7,664 11,338 ---------- ---------- ---------- Net amount applicable to certificateholders ....... 757,297 767,380 922,952 Accretion of original issue discount .............. 377,947 291,234 248,789 Net unrealized appreciation of investments ........ 336,723 55,680 308,882 ---------- ---------- ---------- Net capital applicable to certificateholders ...... $1,471,967 $1,114,294 $1,480,623 ========== ========== ==========
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 (Concluded) - -------------------------------------------------------------------------------- 3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the periods ended December 31, 1995, 1994 and 1993 as follows:
1995 1994 1993 ---- ---- ---- 1996.................... - - - 2006.................... - - -
Redemption During 1995, 1994 and 1993, the Sponsor elected to redeem units of the Fund as follows:
1995 1994 1993 ---- ---- ---- 1996.................... 7,812 - - 2006.................... 35,147 542,260 125,523
The total proceeds were remitted to the sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that each Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B Portfolios as of December 31, 1995
- ----------------------------------------------------------------------------------------------- Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - ---------------------------------------------------------------------------------------------- 1996 Series Stripped Treasury Securities 0% 2-15-96 $1,996,282 $1,976,748 $1,984,045 ========== ========== ========== 2006 Series Stripped Treasury Securities 0% 2-15-06 $2,632,000 $1,122,041 $1,456,812 U.S. Treasury Notes ........ 10.75% 8-15-05 11,019 13,203 15,155 ---------- ----------- ---------- Total.................. $2,643,019 $1,135,244 $1,471,967 ========== =========== ==========
- ------------------------- (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 1996.................................$1,984,139 2006................................. 1,477,711
See Notes to Financial Statements. Investment Summary of Series B+ as of December 31, 1995 - -------------------------------------------------------------------------------- Series B is a series unit investment trust consisting of three separate series, each with its own portfolio. As of December 31, 1995, there are two series which are still outstanding; these are the 1996 Series and the 2006 Series designated for the maturities of their underlying Portfolios. (See Portfolios herein).
1996 2006 Series Series - ------------------------------------------------------------------------------------------------------------------- Face Amount of Securities ...................................................... $1,996,282 $2,643,019 Number of Units ................................................................ 1,996,282 2,643,019 Fractional Undivided Interest in Fund Represented by Each Unit ................. 1/1,996,282 nd 1/2,643,019 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund* ................... $1,984,139.00 $1,477,711.00 ------------- ------------- Divided by number of Units times 1,000 ...................................... $ 993.92 $ 559.10 Plus the applicable transaction charge** .................................... 2.48 8.39 ------------- ------------- Offering Price per 1,000 Units .............................................. $ 996.40 $ 567.49 ============= ============= Sponsor's Repurchase Price per 1,000 Units (based on offering side evaluation of underlying Securities) ...................................................... $ 993.92 $ 559.10 Redemption Price per 1,000 Units (based on bid side evaluation of underlying Securities)**** ............................................................. $ 993.87 $ 556.93 Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 Units .................................... $ 0.45 $ 0.45 Less estimated annual expense per 1,000 Units .......................... 0.45 0.45 ------------ ------------- Net annual income per 1,000 Units ...................................... $ 0.00 $ 0.00 ============ ============= Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges) $ 0.35 $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 P.M. New York Time Mandatory Termination Date January 1, 2036 Minimum Value of Fund Trust Indenture may be terminated with respect to any Series if the value of that Series is less than 40% of the face amount of Securities.
- ---------------- + The Indenture was signed and the initial deposit was made as of January 27, 1986. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charges currently applicable to the 1996 Series and the 2006 Series are .25% and 1.50% of their respective Offering Price per 1,000 Units (.251% and 1.523%, respectively, of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charges described in the preceding footnote. These figures assume a purchase of 1,000 Units. The price of a single Unit, or any multiple thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000 and multiplying by the number of Units. **** Figures shown are $2.53 and $10.56 less than the Offering Price per 1,000 Units and $0.05 and $2.17 less than the Sponsor's Repurchase Price per 1,000 Units, with respect to the 1996 Series and the 2006 Series, respectively. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statements of condition, including the related portfolios of the 1997 Series and the 2007 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C, as of December 31, 1995 and the related statements of operations and changes in net assets for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C at December 31, 1995 and the results of its operations and changes in its net assets, for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Statements of Condition as of December 31, 1995 - --------------------------------------------------------------------------------
1997 2007 Series Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities(see Portfolios) .. $2,735,922 $ 477,140 Cash ................................................. 3,819 739 Accrued interest receivable .......................... 167 357 ---------- ---------- Total trust property ...................... 2,739,908 478,236 Less Liabilities ..................................... 3,986 1,096 ---------- ---------- Net Assets - Note 2 .................................. $2,735,922 $ 477,140 ========== ========== Units Outstanding .................................... 2,973,342 915,372 ========== ========== Unit Value ........................................... $ .92015 $ .52125 ========== ==========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Statements of Operations For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1997 Series ------------------------------------- 1995 1994 1993 - --------------------------------------------------------------------------------------------------------- Investment Income: Interest Income ................................................. $ 1,327 $ 1,468 $ 1,831 Accretion of original issue discount ............................ 218,320 236,747 253,557 Trustee's fees and expenses - Note 3 ............................ (1,327) (1,468) (1,831) --------- --------- --------- Net investment income ........................................... 218,320 236,747 253,557 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ........................ 16,984 80,455 39,770 Net change in unrealized appreciation of investments ............................................. 84,363 (380,389) 47,606 --------- --------- --------- Net gain (loss) on investments .................................. 101,347 (299,934) 87,376 --------- --------- --------- Net Increase (decrease) in Net Assets Resulting from Operations ............................................ $ 319,667 $ (63,187) $ 340,933 ========= ========= =========
2007 Series ------------------------------------- 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Investment Income: Interest Income ................................................. $ 409 $ 441 $ 668 Accretion of original issue discount ............................ 28,781 33,681 39,285 Trustee's fees and expenses - Note 3 ............................ (409) (441) (668) --------- --------- --------- Net investment income ........................................... 28,781 33,681 39,285 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ........................ -- 26,271 14,716 Net change in unrealized appreciation of investments ............................................. 97,101 (116,237) 68,738 --------- --------- --------- Net gain (loss) on Investments .................................. 97,101 (89,966) 83,454 --------- --------- --------- Net Increase (decrease) in Net Assets Resulting from Operations ............................................ $ 125,882 $ (56,285) $ 122,739 ========= ========= =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Statements of Changes in Net Assets For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1997 Series ------------------------------------------ 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ............................................ $ 218,320 $ 236,747 $ 253,557 Realized gain on securities transactions ......................... 16,984 80,455 39,770 Net unrealized appreciation (depreciation) of investments ........ 84,363 (380,389) 47,606 ----------- ----------- ----------- Net increase ( decrease) in net assets resulting from operations . 319,667 (63,187) 340,933 Capital Share Transactions - Note 4 Issuance of Units ................................................ -- -- -- Redemption of Units .............................................. (272,007) (679,914) (257,107) ----------- ----------- ----------- Net increase (decrease) in net assets .................................................... 47,660 (743,101) 83,826 Net Assets: Beginning of period ............................................ 2,688,262 3,431,363 3,347,537 ----------- ----------- ----------- End of period .................................................. $ 2,735,922 $ 2,688,262 $ 3,431,363 =========== =========== ===========
2007 Series ------------------------------------------ 1995 1994 1993 - ------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ............................................ $ 28,781 $ 33,681 $ 39,285 Realized gain on securities transactions ......................... -- 26,271 14,716 Net unrealized appreciation (depreciation) of investments ........ 97,101 (116,237) 68,738 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations .. 125,882 (56,285) 122,739 Capital Share Transactions - Note 4 Issuance of Units .................................................. -- 80,117 -- Redemption of Units ................................................ -- (300,198) (51,373) ----------- ----------- Net increase (decrease) in net assets ....................................................... 125,882 (276,366) 71,366 Net Assets: Beginning of period ................................................ 351,258 627,624 556,258 ----------- ----------- ----------- End of period ...................................................... $ 477,140 $ 351,258 $ 627,624 =========== =========== ===========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's Sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities has been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, ------------------------------------ 1995 1994 1993 ---- ---- ---- 1997 Series Cost of 2,973,342, 3,290,297 and 4,105,325 Units, respectively ........................................ $1,501,215 $1,632,479 $1,964,823 Less sales charge ..................................... 16,801 18,167 22,692 ---------- ---------- ---------- Net amount applicable to certificateholders ........... 1,484,414 1,614,312 1,942,131 Accretion of original issue discount .................. 1,103,843 1,010,649 1,045,542 Net unrealized appreciation of investments ............ 147,664 63,301 443,690 ---------- ---------- ---------- Net capital applicable to certificateholders .......... $2,735,922 $2,688,262 $3,431,363 ========== ========== ========== 2007 Series Cost of 915,372, 915,372 and 1,477,056 Units, respectively ........................................ $ 215,892 $ 215,892 $ 326,201 Less sales charge ..................................... 6,175 6,175 1,944 ---------- ---------- ---------- Net amount applicable to certificateholders ........... 209,717 209,717 324,257 Accretion of original issue discount .................. 147,474 118,693 164,282 Net unrealized appreciation of investments ............ 119,949 22,848 139,085 ---------- ---------- ---------- Net capital applicable to certificateholders .......... $ 477,140 $ 351,258 $ 627,624 ========== ========== ==========
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 (Concluded) - -------------------------------------------------------------------------------- 3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the periods ended December 31, 1995, 1994 and 1993 as follows:
1995 1994 1993 ---- ---- ---- 1997......................... - - - 2007......................... - 214,022 -
Redemption During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as follows:
1995 1994 1993 ---- ---- ---- 1997........................ 316,955 815,028 332,048 2007........................ - 775,706 135,648
The total proceeds were remitted to the Sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that each Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C Portfolios as of December 31, 1995 - --------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - --------------------------------------------------------------------------------------------------------------------------- 1997 Series Stripped Treasury Securities............... 0% 8-15-97 $2,955,000 $2,569,279 $2,717,270 U.S. Treasury Notes........................ 7.25% 11-15-96 18,342 18,979 18,652 ---------- ---------- ---------- Total.................................... $2,973,342 $2,588,258 $2,735,922 ========== ========== ========== 2007 Series Stripped Treasury Securities............... 0% 2-15-07 $ 911,000 $ 352,073 $ 471,515 U.S. Treasury Notes........................ 9.375% 2-15-06 4,372 5,118 5,625 ----------- ----------- ----------- Total.................................... $ 915,372 $ 357,191 $ 477,140 =========== =========== ===========
- ------------------------- (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 1997................................. $2,737,650 2007................................. 479,184
See Notes to Financial Statements. Investment Summary of Series C+ As of December 31, 1995 - -------------------------------------------------------------------------------- Series C is a series unit investment trust consisting of two separate series, each with its own portfolio. These are the 1997 Series and the 2007 Series, designated for the maturities of their underlying Portfolios (see Portfolios herein).
1997 2007 Series Series - ------------------------------------------------------------------------------------------------------------------- Face Amount of Securities ........................................................... $ 2,973,342 $ 915,372 Number of Units ..................................................................... 2,973,342 915,372 Fractional Undivided Interest in Fund Represented by Each Unit ...................... 1/2,973,342 th 1/915,372 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund* ..................... $2,737,650.00 $ 479,184.00 -------------- -------------- Divided by number of Units times 1,000 ........................................ $ 920.73 $ 523.49 Plus the applicable transaction charge** ...................................... 4.60 7.85 -------------- -------------- Offering Price per 1,000 Units ................................................ $ 925.34 $ 531.34 ============== ============== Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of underlying Securities) ............................................................ $ 920.73 $ 523.49 Redemption Price Per 1,000 Units (based on bid side evaluation of underlying Securities)**** ................................................................... $ 920.15 $ 521.25 Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 Units ........................................... $ 0.45 $ 0.45 Less estimated annual expense per 1,000 Units ................................. 0.45 0.45 -------------- -------------- Net annual income per 1,000 Units ............................................. $ 0.00 $ 0.00 ============== ============== Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges).... $ 0.35 $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 P.M. New York Time Mandatory Termination Date January 1, 2037 Minimum Value of Fund Trust Indenture may be terminated with respect to any Series if the value of that Series is less than 40% of the face amount of Securities.
- ------------------------- + The Indenture was signed and the initial deposit was made as of April 21, 1987. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charges currently applicable to the 1997 Series and the 2007 Series, are .50% and 1.50% of their respective Offering Prices per 1,000 Units (.503% and 1.523%, respectively, of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charge as described in the preceding footnote. These figures assume a purchase of 1,000 Units. The price of a single Unit, or any multiple thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000 and multiplying by the number of Units. **** Figures shown are $5.19 and $10.04 less then the Offering Price per 1,000 Units and $0.58 and $2.24 less than the Sponsor's Repurchase Price per 1,000 Units, with respect to the 1997 Series and the 2007 Series respectively. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statements of condition, including the related portfolios of the 1998 Series and the 2008 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D, as of December 31, 1995 and the related statements of operations and changes in net assets for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D at December 31, 1995 and the results of its operations and changes in its net assets, for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Statements of Condition as of December 31, 1995 - --------------------------------------------------------------------------------
1998 2008 Series Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities(see Portfolios) .... $ 898,194 $ 486,153 Cash ................................................... -- 2,501 Accrued interest receivable ............................ -- 58 ---------- ---------- Total trust property ............................... 898,194 488,712 Less Liabilities ....................................... -- 2,559 ---------- ---------- Net Assets-Note 2 ...................................... $ 898,194 $ 486,153 ========== ========== Units Outstanding ...................................... 1,015,000 1,023,236 ========== ========== Unit Value ............................................. $ .88492 $ .47511 ========== ==========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Statements of Operations For the years ended December 31, 1995, 1994, and 1993 - --------------------------------------------------------------------------------
1998 Series ------------------------------------ 1995 1994 1993 - --------------------------------------------------------------------------------------------------- Investment Income: Interest Income ............................................ $ 115 $ 275 $ 74 Accretion of original issue discount ....................... 47,098 61,692 60,284 Trustee's fees and expenses - Note 3 ....................... (115) (275) (74) --------- --------- --------- Net investment income ...................................... 47,098 61,692 60,284 Realized and Unrealized Gain (loss) on Investments Realized gain on securities transactions ................... 13,935 9,906 10,954 Net change in unrealized appreciation of investments ........................................ 53,409 (111,726) 44,373 --------- --------- --------- Net gain (loss) on investments ............................. 67,344 (101,820) 55,327 --------- --------- --------- Net Increase (Decrease) in Net Assets Resulting from Operations ....................................... $ 114,442 $ (40,128) $ 115,611 ========= ========= =========
2008 Series ------------------------------------ 1995 1994 1993 - --------------------------------------------------------------------------------------------------- Investment Income: Interest Income ............................................ $ 457 $ 457 $ 561 Accretion of original issue discount ....................... 27,593 29,937 42,419 Trustee's fees and expenses-Note 3 ......................... (457) (457) (561) --------- --------- --------- Net investment income ...................................... 27,593 29,937 42,419 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions ................... -- 7,013 75,586 Net change in unrealized appreciation of investments ........................................ 110,894 (92,900) 13,877 --------- --------- --------- Net gain (loss) on investments ............................. 110,894 (85,887) 89,463 --------- --------- --------- Net Increase (Decrease) in Net Assets Resulting from Operations ....................................... $ 138,487 $ (55,950) $ 131,882 ========= ========= =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Statements of Changes In Net Assets For the years ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1998 Series ------------------------------------------ 1995 1994 1993 - -------------------------------------------------------------------------------------------------------------- Operations: Net investment income ....................................... $ 47,098 $ 61,692 $ 60,284 Realized gain on securities transactions .................... 13,935 9,906 10,954 Net unrealized appreciation (depreciation) of investments ... 53,409 (111,726) 44,373 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 114,442 (40,128) 115,611 Capital Share Transactions - Note 4 Issuance of Units ........................................... 167,820 -- -- Redemption of Units ......................................... (214,483) (190,719) (66,466) ----------- ----------- ----------- Net increase (decrease) in net assets .............................................. 67,779 (230,847) 49,145 ----------- ----------- ----------- Net Assets: Beginning of period ....................................... 830,415 1,061,262 1,012,117 ----------- ----------- ----------- End of period ............................................. $ 898,194 $ 830,415 $ 1,061,262 =========== =========== ===========
2008 Series ------------------------------------------ 1995 1994 1993 - -------------------------------------------------------------------------------------------------------------- Operations: Net investment income ....................................... $ 27,593 $ 29,937 $ 42,419 Realized gain on securities transactions .................... -- 7,013 75,586 Net unrealized appreciation (depreciation) of investments ... 110,894 (92,900) 13,877 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations 138,487 (55,950) 131,882 Capital Share Transactions - Note 4 Issuance of Units ........................................... -- -- -- Redemption of Units ......................................... -- (74,693) (279,036) ----------- ----------- ----------- Net increase (decrease) in net assets ................................................ 138,487 (130,643) (147,154) Net Assets: Beginning of period ....................................... 347,666 478,309 625,463 ----------- ----------- ----------- End of period ............................................. $ 486,153 $ 347,666 $ 478,309 =========== =========== ===========
See Notes To Financial Statements Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Notes To Financial Statements For the years ended December 31, 1995, 1994, and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities has been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, ------------------------------------------- 1995 1994 1993 ---- ---- ---- 1998 Series Cost of 1,015,000, 1,075,187 and 1,321,762 Units, respectively............................................................. $ 568,967 $ 518,346 $ 626,780 Less sales charge.......................................................... 7,618 7,952 9,397 --------- --------- ----------- Net amount applicable to certificateholders................................ 561,349 510,394 617,383 Accretion of original issue discount....................................... 189,725 226,310 238,442 Net unrealized appreciation of investments................................. 147,120 93,711 205,437 --------- --------- ----------- Net capital applicable to certificateholders............................... $ 898,194 $ 830,415 $1,061,262 ========= ========= =========== 2008 Series Cost of 1,023,236, 1,023,236 and 1,256,429 Units, respectively............................................................. $ 192,831 $ 192,831 $ 236,061 Less sales charge.......................................................... 5,874 5,874 7,215 --------- --------- ------------ Net amount applicable to certificateholders................................ 186,957 186,957 228,846 Accretion of original issue discount....................................... 145,329 117,737 113,591 Net unrealized appreciation of investments................................. 153,866 42,972 135,872 --------- --------- ------------ Net capital applicable to certificateholders............................... $486,153 $ 347,666 $ 478,309 ========= ========= ===========
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Notes to Financial Statements For the years ended December 31, 1995, 1994 and 1993 (Concluded) - -------------------------------------------------------------------------------- 3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the periods ended December 31, 1995, 1994 and 1993 as follows:
1995 1994 1993 ---- ---- ---- 1998.................... 201,286 - - 2008.................... - - -
Redemption During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as follows:
1995 1994 1993 ---- ---- ---- 1998.................... 261,473 246,575 87,239 2008.................... - 233,193 773,960
The total proceeds were remitted to the Sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that each Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D Portfolios as of December 31, 1995 - --------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - ----------------------------------------------------------------------------------------------------- 1998 Series Stripped Treasury Securities ... 0% 5-15-98 $1,015,000 $ 751,074 $ 898,194 ========== ========== ========== 2008 Series Stripped Treasury Securities 0% 11-15-08 $1,018,000 $ 327,509 $ 479,916 U.S. Treasury Notes ............ 8.75% 11-15-08 5,236 4,778 6,237 ---------- ---------- ---------- Total........................ $1,023,236 $ 332,287 $ 486,153 ========== =========== ==========
- ------------------------- (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 1998...................................$ 899,023 2008................................... 488,562
See Notes to Financial Statements. Investment Summary of Series D+ as of December 31, 1995 - -------------------------------------------------------------------------------- Series D is a series unit investment trust consisting of two separate series, each with its own portfolio. These are the 1998 Series and 2008 Series, designated for the maturities of their underlying Portfolios (see Portfolios herein).
1998 2008 Series Series - ---------------------------------------------------------------------------------------------------------------------------- Face Amount of Securities............................................................... $1,015,000 $ 1,023,236 Number of Units......................................................................... 1,015,000 1,023,236 Fractional Undivided Interest in Fund Represented by Each Unit ......................... 1/1,015,000 nd 1/1,023,236 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund*.......................... $ 899,023.00 $ 488,562.00 ------------- -------------- Divided by number of Units times 1,000............................................. $ 885.74 $ 477.47 Plus the applicable transaction charge**........................................... 6.64 8.36 ------------- -------------- Offering Price per 1,000 Units..................................................... $ 892.38 $ 485.82 ============= ============== Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of underlying Securities).......................................... $ 885.74 $ 477.47 Redemption Price Per 1,000 Units (based on bid side evaluation of underlying Securities)****...................................................... $ 884.92 $ 475.11 Calculation of Estimated Net Annual Interest Income Per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 Units................................................ $ 0.45 $ 0.45 Less estimated annual expense per 1,000 Units...................................... 0.45 0.45 ------------- -------------- Net annual income per 1,000 Units.................................................. $ 0.00 $ 0.00 ============= ============== Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges)................................................................. $ 0.35 $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 P.M. New York Time Mandatory Termination Date January 1, 2038 Minimum Value of Fund Trust Indenture may be terminated with respect to any Series if the value of that Series is less than 40% of the face amount of Securities.
- ------------------ + The Indenture was signed and the initial deposit was made as of April 18, 1988. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charges currently applicable to the 1998 Series and the 2008 Series are .75% and 1.75% of their respective Offering Prices per 1,000 Units (.756% and 1.781%, respectively, of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charge as described in the preceding footnote. These figures assume a purchase of 1,000 Units. The price of a single Unit, or any multiplying thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000 and multiplying by the number of Units. **** Figures shown are $7.46 and $10.71 less than the Offering Price per 1,000 Units and $.82 and $2.36 less than the Sponsor's Repurchase Price per 1,000 Units, with respect to the 1998 Series and the 2008 Series, respectively. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statements of condition, including the related portfolios of the 1999 Series and the 2009 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E, as of December 31, 1995 and the related statements of operations and changes in net assets for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E at December 31, 1995 and the results of its operations and changes in its net assets, for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Statements of Condition As of December 31, 1995 - --------------------------------------------------------------------------------
1999 2009 Series Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities (see Portfolios) ... 378,013 $165,314 Cash ................................................... -- 6,181 Accrued interest receivable ............................ 176 101 -------- -------- Total trust property ............................... 378,189 171,596 Less Liabilities ....................................... 176 6,282 -------- -------- Net Assets-Note 2 ...................................... $378,013 $165,314 ======== ======== Units Outstanding ...................................... 450,273 359,216 Unit Value ............................................. $ .83952 $ .46021 ======== ========
See Notes to Financial Statements Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Statement of Operations For the years ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1999 Series ------------------------------------- 1995 1994 1993 - --------------------------------------------------------------------------------------------------------- Investment Income: Interest Income ................................................. $ 207 $ 249 $ 255 Accretion of original issue discount ............................ 27,592 30,327 28,399 Trustee's fees and expenses - Note 3 ............................ (207) (249) (255) -------- -------- -------- Net investment income ........................................... 27,592 30,327 28,399 Realized and Unrealized Gain (Loss) on Investments Realized gain (loss) on securities transactions ................. 5,396 588 9,378 Net change in unrealized appreciation of investments ............................................. 27,648 (53,426) 13,325 -------- -------- -------- Net gain (loss) on investments .................................. 33,044 (52,838) 22,703 -------- -------- -------- Net Increase (decrease) in Net Assets Resulting from Operations ............................................ $ 60,636 $(22,511) $ 51,102 ======== ======== ========
2009 Series ------------------------------------- 1995 1994 1993 - --------------------------------------------------------------------------------------------------------- Investment Income: Interest Income ................................................. $ 161 $ 220 $ 417 Accretion of original issue discount ............................ 9,738 15,548 22,463 Trustee's fees and expenses - Note 3 ............................ (161) (220) (417) -------- -------- -------- Net investment income ........................................... 9,738 15,548 22,463 Realized and Unrealized Gain (Loss) on Investments Realized gain (loss) on securities transactions ................. 961 2,176 20,020 Net change in unrealized appreciation of investments ............................................. 38,500 (52,410) 33,888 -------- -------- -------- Net gain (loss) on investments .................................. 39,461 (50,236) 53,908 -------- -------- -------- Net Increase (decrease) in Net Assets Resulting from Operations ............................................ $ 49,199 $(34,686) $ 76,371 ======== ======== ========
See Notes to Financial Statements. Oppenheimer Zero coupon U.S. Treasuries Trust, Series E Statements of Changes in Net Assets For the years ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
1999 Series --------------------------------------- 1995 1994 1993 - ----------------------------------------------------------------------------------------------------------- Operations: Net investment income ....................................... $ 27,592 $ 30,327 $ 28,399 Realized gain on securities transactions .................... 5,396 588 9,378 Net unrealized appreciation (depreciation) of investments ... 27,648 (53,426) 13,325 --------- --------- --------- Net increase (decrease) in net assets resulting from operations 60,636 (22,511) 51,102 Capital Share Transactions - Note 4 Issuance of Units ........................................... -- -- 36,091 Redemption of Units ......................................... (80,186) (8,623) (53,027) --------- --------- --------- Net increase (decrease) in net assets ............................................... (19,550) (31,134) 34,166 Net Assets: Beginning of period ....................................... 397,563 428,697 394,531 --------- --------- --------- End of period ............................................. $ 378,013 $ 397,563 $ 428,697 ========= ========= =========
2009 Series --------------------------------------- 1995 1994 1993 - ----------------------------------------------------------------------------------------------------------- Operations: Net investment income ....................................... $ 9,738 $ 15,548 $ 22,463 Realized gain (loss) on securities transactions ............. 961 2,176 20,020 Net unrealized appreciation (depreciation) of investments ... 38,500 (52,410) 33,888 --------- --------- --------- Net increase (decrease) in net assets resulting from operations 49,199 (34,686) 76,371 Capital Share Transactions - Note 4 Issuance of units ........................................... -- -- -- Redemption of Units ......................................... (14,286) (129,221) (122,097) --------- --------- --------- Net increase (decrease) in net assets ................................................ 34,913 (163,907) (45,726) Net Assets: Beginning of period ....................................... 130,401 294,308 340,034 --------- --------- --------- End of period ............................................. $ 165,314 $ 130,401 $ 294,308 ========= ========= =========
See Notes to Financial Statements Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Notes to Financial Statements For the years ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities has been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, -------------------------------- 1995 1994 1993 ---- ---- ---- 1999 Series Cost of 450,273, 555,805 and 567,866 Units, respectively $226,513 $272,841 $277,822 Less sales charge ...................................... 3,244 3,850 3,916 -------- -------- -------- Net amount applicable to certificateholders ............ 223,269 268,991 273,906 Accretion of original issue discount ................... 123,287 124,763 97,556 Net unrealized appreciation of investments ............. 31,457 3,809 57,235 -------- -------- -------- Net capital applicable to certificateholders ........... $378,013 $397,563 $428,697 ======== ======== ======== 2009 Series Cost of 359,216, 399,352 and 802,717 Units, respectively $ 85,892 $ 94,983 $186,079 Less sales charge ...................................... 6,158 6,414 8,726 -------- -------- -------- Net amount applicable to certificateholders ............ 79,734 88,569 177,353 Accretion of original issue discount ................... 47,046 41,798 64,511 Net unrealized appreciation of investments ............. 38,534 34 52,444 -------- -------- -------- Net capital applicable to certificateholders ........... $165,314 $130,401 $294,308 ======== ======== ========
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Notes to Financial Statements For the years ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the periods ended December 31, 1995, 1994 and 1993 as follows:
1995 1994 1993 ---- ---- ---- 1999....................... - - 50,254 2009....................... - - -
Redemption During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as follows:
1995 1994 1993 ---- ---- ---- 1999........................ 105,532 12,061 75,380 2009........................ 40,136 403,365 351,189
The total proceeds were remitted to the Sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that each Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E Portfolios as of December 31, 1995 - --------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - -------------------------------------------------------------------------------------------------------------- 1999 Series Stripped Treasury Securities ............. 0% 5-15-99 $448,000 $344,127 $375,507 U.S. Treasury Notes ...................... 8.875% 2-15-99 2,273 2,429 2,506 -------- -------- -------- Total .................................... $450,273 $346,556 $378,013 ======== ======== ======== 2009 Series Stripped Treasury Securities ............. 0% 05-15-09 $358,000 $124,278 $163,273 U.S. Treasury Notes ...................... 13.25% 05-15-14 1,216 2,502 2,041 -------- -------- -------- Total................................ $359,216 $126,780 $165,314 ======== ======== ========
- ----------------- (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 1999 .............................$378,508 2009 ............................. 166,164
See Notes to Financial Statements. Investment Summary of Series E+ As of December 31, 1995 - -------------------------------------------------------------------------------- Series E is a series unit investment trust consisting of two separate series, each with its own portfolio. These are the 1999 Series and 2009 Series, designated for the maturities of their underlying Portfolios (see Portfolios herein).
1999 2009 Series Series - ------------------------------------------------------------------------------------------------------------- Face Amount of Securities ................................................... $450,273 $359,216 Number of Units ............................................................. 450,273 359,216 Fractional Undivided Interest in Fund Represented by Each Unit .............. 1/450,273 th 1/359,216 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund* .............. $378,508.00 $166,164.00 ------------ ------------ Divided by number of Units times 1,000 ................................. $ 840.62 $ 462.57 Plus the applicable transaction charge** ............................... 6.30 8.10 ----------- ------------ Offering Price per 1,000 Units ......................................... $ 846.92 $ 470.67 =========== ============ Sponsor's Repurchase Price per 1,000 Units (based on offering side evaluation of underlying Securities) ............................................... $ 840.62 $ 462.57 Redemption Price per 1,000 Units (based on bid side evaluation of underlying Securities)**** ......................................................... $ 839.52 $ 460.21 Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 Units .................................... $ 0.45 $ 0.45 Less estimated annual expense per 1,000 Units .......................... 0.45 0.45 ------------ ------------ Net annual income per 1,000 Units ...................................... $ 0.00 $ 0.00 ============ ============ Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges) $ 0.35 $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 P.M. New York Time Mandatory Termination Date January 1, 2039 Minimum Value of Fund Trust Indenture may be terminated with respect to any Series if the value of that Series is less than 40% of the face amount of Securities.
- -------------------- + The Indenture was signed and the initial deposit was made as of April 17, 1989. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charges currently applicable to the 1999 Series and the 2009 Series are .75% and 1.75% of their respective Offering Prices per 1,000 Units (.756% and 1.781%, respectively, of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charge as described in the preceding footnote. These figures assume a purchase of 1,000 Units. The price of a single Unit, or any multiple thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000 and multiplying by the number of Units. **** Figures shown are $7.40 and $10.46 less than the Offering Price per 1,000 Units and $1.10 and $2.36 less than the Sponsor's Repurchase Price per 1,000 Units, with respect to the 1999 Series and the 2009 Series, respectively. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Independent Auditors' Report - -------------------------------------------------------------------------------- We have audited the accompanying statement of condition, including the related portfolio of the 2010 Series of the Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F, as of December 31, 1995 and the related statement of operations and changes in net assets for the years ended December 31, 1995, 1994 and 1993. These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1995 by correspondence with the custodian. An audit also 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 referred to above present fairly, in all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F at December 31, 1995 and the results of its operations and changes in its net assets, for the above stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado February 6, 1996 Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Statement of Condition as of December 31, 1995 - --------------------------------------------------------------------------------
2010 Series - -------------------------------------------------------------------------------- Trust Property Investment in marketable securities (see Portfolio) ............. $ 995,779 Cash ............................................................ 5,149 Accrued interest receivable ..................................... 890 --------- Total trust property ................................. 1,001,818 Less Liabilities ................................................ 6,039 --------- Net Assets - Note 2 ............................................ $ 995,779 ========= Units Outstanding ............................................... 2,277,690 ========= Unit Value ...................................................... $ .43719 =========
See Notes to Financial Statements Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Statement of Operations For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
2010 Series - ------------------------------------------------------------------------------------------------------------------- 1995 1994 1993 ---- ---- ---- Investment Income: Interest Income............................................................ $ 972 $ 667 $ 794 Accretion of original issue discount....................................... 45,398 34,853 37,999 Trustee's fees and expenses - Note 3....................................... (972) (667) (794) ---------- ----------- ----------- Net investment income...................................................... 45,398 34,853 37,999 Realized and Unrealized Gain (Loss) on Investments Realized gain on securities transactions................................... 7,439 13,974 15,524 Net change in unrealized appreciation of investments........................................................ 179,203 (114,358) 71,612 ------- -------- --------- Net gain (loss) on investments............................................. 186,642 (100,384) 87,136 ------- -------- --------- Net Increase (Decrease) in Net Assets Resulting from Operations....................................................... $232,040 $ (65,531) $ 125,135 ======= ========== =========
See Notes to Financial Statements. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Statement of Changes in Net Assets For the Years Ended December 31, 1995, 1994 and 1993 - --------------------------------------------------------------------------------
2010 Series - ----------------------------------------------------------------------------------------------------------------------- 1995 1994 1993 ---- ---- ---- Operations Net investment income................................................... $ 45,398 $ 34,853 $ 37,999 Realized gain on securities transactions................................ 7,439 13,974 15,524 Net unrealized appreciation (depreciation) of investments............... 179,203 (114,358) 71,612 ---------- --------- --------- Net increase (decrease) in net assets resulting from operations......... 232,040 (65,531) 125,135 Capital Share Transactions - Note 4 Issuance of Units....................................................... 393,549 - - Redemption of Units..................................................... (74,072) (104,416) (152,570) ---------- --------- --------- Net increase (decrease) in net assets............................................................ 551,517 (169,947) (27,435) Net Assets: Beginning of period................................................... 444,262 614,209 641,644 ---------- --------- --------- End of period......................................................... $995,779 $ 444,262 $ 614,209 ======== ========= =========
See Notes to Financial Statements Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- 1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 as a unit investment trust. Units of the Fund are sold only to separate investment accounts of life insurance companies to fund variable life insurance policies. The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a summary of significant accounting policies consistently followed by the Fund. The policies are in conformity with generally accepted accounting principles. (a) Securities are stated at value as determined by the Evaluator based on bid side evaluations for the securities. (b) Cost of securities have been adjusted to include the accretion of original issue discount on the Stripped Treasury Securities. 2. Net Capital
December 31, ------------------------------- 1995 1994 1993 ---- ---- ---- 2010 Series Cost of 2,277,690, 1,451,539 and 1,776,780 Units, respectively ....... $699,696 $352,736 $423,138 Less sales charge .................................................... 13,503 7,819 1,237 -------- -------- -------- Net amount applicable to certificateholders .......................... 686,193 344,917 421,901 Accretion of original issue discount ................................. 115,617 84,579 63,184 Net unrealized appreciation of investments ........................... 193,969 14,766 129,124 -------- -------- -------- Net capital applicable to certificateholders ......................... $995,779 $444,262 $614,209 ======== ======== ========
3. Expenses Trustee's fees and other expenses incurred by the Fund are limited to the amount of income generated by the Interest Bearing Treasury Securities in each Series. Any excess expenses are assumed by the Sponsor. 4. Capital Share Transactions Issuance Additional Units were issued by the Fund during the periods ended December 31, 1995, 1994 and 1993, as follows:
1995 1994 1993 ---- ---- ---- 2010 .................... 1,046,994 - -
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Notes to Financial Statements For the Years Ended December 31, 1995, 1994 and 1993 - -------------------------------------------------------------------------------- Redemptions During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund, as follows:
1995 1994 1993 ---- ---- ---- 2010.......... 220,843 325,241 542,068
The total proceeds were remitted to the Sponsor. 5. Income Taxes All income received, accretion of original issue discount, expenses paid, and realized gains and losses on securities sold are attributable to the holder, on a pro rata basis, for Federal income tax purposes in accordance with the grantor trust rules of the Internal Revenue Code. At December 31, 1995, the cost of investment securities for Federal income tax purposes was approximately equivalent to the adjusted cost as shown in each Series' portfolio. 6. Distributions It is anticipated that the Series will not make any distributions until the first business day following the maturity of its holding in the Stripped Treasury Securities which are non-interest bearing. Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F Portfolio as of December 31, 1995 - --------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted Title of Securities Rates Maturities Amount Cost Value (*) - --------------------------------------------------------------------------------------------------------------------------- 2010 Series Stripped Treasury Securities............ 0% 2-15-10 $2,269,000 $ 789,171 $ 983,385 U.S. Treasury Notes..................... 11.75% 2-15-10 8,690 12,639 12,394 ------------ ---------- ---------- Total................................ $2 277,690 $ 801,810 $ 995,779 ============ ========== ==========
- ------------ (*) The aggregate values based on offering side evaluations at December 31, 1995 were as follows:
Series Amount ------ ------ 2010....................................$1,001,192
See Notes to Financial Statements. Investment Summary of Series F+ As of December 31, 1995 - -------------------------------------------------------------------------------- Series F is a series unit investment trust consisting of the 2010 Series designated for the maturity of its underlying Portfolio (see Portfolio herein).
2010 Series - --------------------------------------------------------------------------------------------------------------------------- Face Amount of Securities................................................................................. $ 2,277,690 Number of Units........................................................................................... 2,277,690 Fractional Undivided Interest in Fund Represented by Each Unit............................................ 1/2,277,690 th Offering Price per 1,000 Units*** Aggregate offering side evaluation of Securities in Fund*........................................... $ 1,001,192.00 -------------- Divided by number of units times 1,000.............................................................. $ 439.56 Plus the applicable transaction charge**............................................................ 7.69 -------------- Offering price per 1,000 units...................................................................... $ 447.26 ============== Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of underlying Securities)... $ 439.56 Redemption Price Per 1,000 Units (based on bid side evaluation of underlying Securities)****.............. $ 437.19 Calculation of Estimated Net Annual Interest Income Per 1,000 Units Received in Cash by the Fund Gross annual income per 1,000 units................................................................. $ 0.45 Less estimated annual expenses per 1,000 units...................................................... 0.45 -------------- Net annual income per 1,000 Units................................................................... $ 0.0 ============== Distributions Distributions will be made on the first business day following the maturity of each Security in a Series to holders of record on the business day immediately preceding the date of such distribution. Trustee's Annual Fee Per $1,000 face amount of underlying Securities (see Expenses and Charges).......................... $ 0.35 Evaluator's Fee for Each Evaluation $.35 for each issue of underlying Securities. Treating separate maturities as separate issues. Evaluation Time 3:30 p.m. New York Time Mandatory Termination Date January 1, 2040 Minimum Value of Fund Trust Indenture may be terminated with respect to the Series if the value is less than 40% of the face amount of Securities.
- ------------ + The Indenture was signed and the initial deposit was made as of April 24, 1990. * The aggregate offering side evaluation of the obligations is determined by the Evaluator on the basis of current offering prices for the obligations. ** The transaction charge currently applicable to the 2010 Series is 1.75% of its respective Offering Price per 1,000 Units (1.781% of the net amount invested in Securities). *** These figures are computed by dividing the aggregate offering side evaluation of the underlying Securities in the particular Series (the price at which they could be purchased directly by the public if they were available) by the number of Units of the Series outstanding, multiplying the result times 1,000 and adding the applicable transaction charge as described in the preceding footnote. These figures assumes a purchase of 1,000 Units. The price of a single Unit, or any multiple thereof, is calculated by dividing the Offering Price per 1,000 Units above by 1,000, and multiplying by the number of Units. **** Figures shown are $10.07 less than the Offering Price per 1,000 Units and $2.37 less than the Sponsor's Repurchase Price per 1,000 Units. Oppenheimer Zero Coupon U.S. Treasuries Trust Series A, B, C, D, E and F - -------------------------------------------------------------------------------- Sponsor OPPENHEIMER FUNDS DISTRIBUTOR, INC. Two World Trade Center New York, New York 10048 Trustee THE CHASE MANHATTAN BANK, N.A. 770 Broadway New York, New York 10003 Evaluator INTERACTIVE DATA Suite 501 350 South Figueroa Los Angeles, California 90071 Auditors DELOITTE & TOUCHE LLP The Anaconda Tower 555 Seventeenth Street Suite 3600 Denver, Colorado 80202-3942 -----END PRIVACY-ENHANCED MESSAGE-----