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<SEC-DOCUMENT>0000950123-96-004798.txt : 19960830
<SEC-HEADER>0000950123-96-004798.hdr.sgml : 19960830
ACCESSION NUMBER:		0000950123-96-004798
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19960630
FILED AS OF DATE:		19960829
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:		96623417

	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
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<TYPE>N-30D
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<DESCRIPTION>N-30D
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<PAGE>   1
                                   OPPENHEIMER
                                VARIABLE ACCOUNT
                                      FUNDS

                                SEMIANNUAL REPORT

                                  JUNE 30, 1996

<PAGE>   2
OPPENHEIMER MONEY FUND

OBJECTIVE-
OPPENHEIMER MONEY FUND primarily seeks maximum current income from investments
in "money market" securities consistent with low capital risk and the
maintenance of liquidity. This includes short-term U.S. government securities,
certificates of deposit, bankers' acceptances and commercial paper. An
investment in the Money Fund is neither insured nor guaranteed by the U.S.
Government. While the Money Fund seeks to maintain a stable net asset value of
$1.00 per share, there can be no assurance that it will be able to do so.

NARRATIVE BY ART ZIMMER AND DOROTHY WARMACK, FUND MANAGERS 
During what was a very difficult year for the fixed income market, Oppenheimer
Money Fund performed well. By positioning our investments in securities offering
competitive yields and relatively steady prices, we successfully provided
investors with a current income while maintaining a constant share price.

The portfolio's objective is to preserve capital while capturing the highest
yield possible. To meet this objective, that means our assets are invested in
low risk, short term securities such as commercial paper, letters of credit and
floating rate securities--all generally conservative securities. However, within
these areas, there are actions we took to maximize the portfolio's performance
as the market changed. For example, as interest rates began to rise early this
year, we began to invest in securities that had even shorter maturities than we
owned last year. Shorter maturity securities must be replaced by new issues more
frequently, and as rates have risen, we have been able to replace our maturing
holdings with new securities that offered higher yields. This positioning is one
factor that helped us maintain a competitive yield during the period.

As we move through the remainder of the year, we will continue to focus on
maximizing the portfolio's yield while watching interest rates carefully. At
this time, we believe reports of stronger than expected economic growth are
making further interest rate cuts unlikely this year. We feel it is likely that
the Federal Reserve will tighten monetary policy slightly this summer. We're
currently maintaining our focus on shorter securities and watching carefully for
ways to increase yield. This should be accomplished through purchase of floating
rate securities, new commercial paper programs and structuring the maturities of
our investments.(1)

Because the securities in which we must invest have short maturities, the yields
paid are directly related to prevailing interest rates. As a result, Oppenheimer
Money Fund is one of the few types of investments that benefits from higher
interest rates. The fact that rates are higher now than they were at the
beginning of the year should continue to work in our favor over the near term.
Still, unless we begin to see clear evidence of a slowdown in the economy,
relative to last year, we will remain fairly short in our average maturity.
Given this outlook for the market, we expect to continue to provide investors
with a competitive income stream as well as safety of principal as the year
progresses.

We appreciate your confidence in Oppenheimer Money Fund. We look forward to
helping you with your financial goals in the future.

- --------

(1)        The Fund's portfolio is subject to change.
<PAGE>   3
OPPENHEIMER HIGH INCOME FUND

OBJECTIVE-
OPPENHEIMER HIGH INCOME FUND seeks a high level of current income with a
secondary objective of capital growth. The Fund invests in high yielding, lower
rated and unrated corporate bonds.

NARRATIVE BY DAVID NEGRI, FUND MANAGER
The portfolio did very well over the past six months, continuing what was an
extremely strong previous twelve months. Despite a rise in interest rates that
hurt most bond investments, high yield bonds have continued to perform well. The
portfolio's aggressive positioning at the beginning of this period allowed us to
take advantage of the strength of high yield bonds in the midst of a generally
weak bond market.

Beyond being aggressive in terms of credit quality, our good performance was
primarily the result of several well-timed sector allocations. In particular,
our decision to overweight holdings in the gaming industry and underweight
holdings in paper and forest products companies proved positive for the Fund.(1)

Gaming companies performed well because of the ongoing consolidations and
mergers within the industry. This year many gaming companies began growing their
businesses by making acquisitions. In addition, the management of quite a few of
these companies were able to consolidate their operations and improve their
bottom lines. With most of this activity viewed as positive, the bonds of many
of these companies did well.

We also benefited from avoiding the bonds of companies who manufacture paper and
forest products. With demand for these products relatively light and supply
ample, their bonds performed poorly during the year.

In addition to good industry allocations, we invested about 12 percent of our
assets in foreign government bonds, in both developed and emerging nations. By
doing so, we were able to diversify the portfolio, as well as significantly
increase returns over the period.

Though the majority of our investments performed very well, we experienced some
disparity related to our overweight in media and telecommunications bonds. An
increase of high-yield issues in this sector caused the supply and demand
relationship to be temporarily thrown off-balance. However, we expect this area
to even itself out in the near future due to deregulation and increasing demand
that should continue to drive future growth, especially for companies who
borrowed money over the past six months to finance their expansion efforts.
Thus, we have maintained our holdings in this sector, and expect the supply and
demand imbalance to level out shortly.

Looking toward the remainder of the year, in addition to maintaining our focus
on growth businesses, we continue to emphasize investment opportunities that
offer good value. Because lower-rated high-yielding bonds have performed so
well, their valuations have crept upward since 
<PAGE>   4
the beginning of the year and are now at a level where we feel they offer less
opportunity for price appreciation. Consequently, we're moving to relatively
higher credit quality bonds within the high yield market, where valuations have
not yet peaked, and repositioning the Fund to become slightly more conservative.
This may reduce the risks of investing in lower rated, high yield bonds,
described in the Fund's prospectus.

Going forward, our outlook is very favorable. High yield bonds have been one of
the best performing sectors of the bond market over the period, and we expect
that to continue in the coming months. There are two reasons for this. First, in
a bond market where coupon income is likely to drive returns, non-investment
grade corporate bonds offer the advantage of higher income. Second, because we
expect the economy will be stronger than it was at the end of 1995, corporate
earnings should remain strong, so that credit strength should continue to offset
any negative effects that interest rate changes may have on high yield bonds.

We appreciate your confidence in Oppenheimer High Income Fund. We look forward
to helping you reach your financial goals in the future.

- --------

(1)      The Fund's portfolio is subject to change.
<PAGE>   5
OPPENHEIMER BOND FUND

OBJECTIVE
OPPENHEIMER BOND FUND primarily seeks a high level of current income from
investing in high yield fixed-income securities rated "Baa" or better by Moody's
of "BBB" or better by Standard & Poor's. Secondarily, the Fund seeks capital
growth when consistent with its primary objective of high current income.

NARRATIVE BY DAVID NEGRI, FUND MANAGER
There were two major factors that contributed to the performance of Oppenheimer
Bond Fund. First, was our defensive decision to keep the portfolio's average
maturity relatively short, and second, was our strategic diversification over a
variety of different types of bonds. A short average maturity was a benefit as
interest rates rose. Since longer bonds are typically the most sensitive to
changes in interest rates, they depreciated the most this year. So, by having a
shorter portfolio, we were able to capture a competitive level of income, but
suffered less in terms of price than some longer-term investments. Our
diversification among different classes of bonds also benefited the portfolio.
In particular, our international bonds performed well, avoiding the difficulties
experienced by most types of domestic bonds. Our mortgage-backed securities also
performed well. As interest rates rose, prepayment risk decreased supporting
mortgage bond prices. Mortgage-backed securities also pay very competitive
income, which benefited the portfolio.(1)

While the Fund's short average maturity and high degree of current income helped
to offset the negative price performance of the general bond market, our
Treasury securities performed poorly in comparison with our other holdings.
Still, at only half of our U.S. government bond allocation, and with
shorter-term maturities, we were able to limit their potentially negative
impact.

As we move through the second half of the year, we will continue to work on
capturing as much income as possible. Because we believe the economy is
relatively healthy, we will continue to focus on corporate bonds. In particular,
we believe there is great potential to be found in bonds issued by financial
services firms and oil- and gas-related businesses. Within the financial
services industry, companies with ongoing consolidations should improve balance
sheets and profitability, while in the oil and gas industry, technology stocks
are experiencing improving profits.

We also believe that foreign government bonds offer greater income and relative
value than domestic government bonds, so we'll continue to emphasize the bonds
of developed nations where we see compelling yield and total return
opportunities.

Finally, we continue to favor mortgage-related securities over Treasuries, and
have been adding to our holdings in private label mortgages. Because these are
loans underwritten by banks rather than the federal government, in general they
tend to offer higher yields than similar securities.

Looking forward, we think the Fund will continue to do well because of its
strategic positioning. Currently, we expect that economic growth in the U.S.
will continue, though it may not necessarily accelerate. In this type of
environment, it's difficult to imagine the Federal Reserve 
<PAGE>   6
will cut interest rates, so it's hard to imagine another bull market like the
one we experienced last year. In light of our outlook on the economy, we will
continue to position the portfolio around income opportunities and avoid taking
on unnecessary interest rate risk. By investing in quality bonds, with an
attractive inflation-adjusted real rate of return, we expect to provide
investors with relative price stability and competitive income going forward.

We appreciate your confidence in Oppenheimer Bond Fund. We look forward to
helping your reach your financial goals in the future.

- --------

(1)      The Fund's portfolio is subject to change.
<PAGE>   7
OPPENHEIMER CAPITAL APPRECIATION FUND

OBJECTIVE
OPPENHEIMER CAPITAL APPRECIATION FUND primarily seeks aggressive capital
appreciation through investments in the common stocks of "growth type"
companies. In addition, the Fund may selectively invest in some "special
situations" which management believes may provide opportunities for growth

NARRATIVE BY PAUL LAROCCO, FUND MANAGER
The Capital Appreciation Fund has been an excellent investment over the past six
months. The results can be attributed to the strong performance of smaller
company growth stocks as well as the fact that we made some well-timed
investment decisions. We are pleased to report that the portfolio's total return
for the six months ended June 30, 1996 is 18.92%.(1)

Small company stocks performed well over the period for two main reasons. First,
their profitability and growth potential are less dependent on the U.S. dollar
rising than are some larger companies, when the dollar rose early this year,
smaller company stocks were not as negatively impacted. Second, because the
current economic growth phase has been unexpectedly long--creating concern among
investors about companies' continuing profitability--investor demand shifted to
some of the same high growth areas of the market in which we tend to focus on.

When we buy growth stocks for the portfolio, we look for companies with
extremely attractive earnings growth rates, new products, or strong gains in
market share. We think these are some of the attributes that companies will need
to continue to grow quickly over time.

In healthcare, we owned stocks in selected physician practice management stocks,
a growing part of the healthcare industry. Physician practice management
companies help doctors manage their practices thereby enabling the doctors to
spend more time with patients and less time doing administrative work. As for
technology, we focused on telecommunications and software firms, where companies
have profited from high demand both in the U.S. and abroad. In the business
services area, our successes were in the credit card transaction processing
area, and we've also done well with selected apparel and footwear
manufacturers.(2)

We're generally very pleased with our performance over the period. We didn't
have many disappointments in the companies we owned, and we didn't miss many
opportunities. Looking back, the only area we weren't invested in but would have
liked to have been was in energy stocks. Energy companies performed unexpectedly
well as a result of high demand and price increases.

While the portfolio has performed exceptionally well, we are currently slightly
cautious in our approach to the market. We want to make sure that the companies
we own will be able to deliver consistent earnings in an environment of slower
growth than last year. As a hedge against slower future growth, we're carefully
watching for changes in stocks' price/earnings ratios, trying to avoid paying
too much for a company's growth potential. But beyond this vigilant posture,
we're
<PAGE>   8
optimistic.

Going forward, we expect to see moderate economic growth here in the U.S. That's
a situation that could benefit the portfolio, by keeping investors focused on
the types of stocks we normally own--companies with well-defined business
niches, great competitive strengths and the potential to grow quickly even if
the overall economic growth rate is only modest. In addition, we believe smaller
company stocks are still in an extended period of outperformance. Taken
together, these factors support our belief that the portfolio will continue to
help investors take advantage of the market's tremendous growth potential over
time.

We appreciate your confidence in Oppenheimer Capital Appreciation Fund. We look
forward to helping your reach your financial goals in the future.

- --------

(1)      Based on the change in net asset value per share for the periods shown.
         Does not reflect separate account expenses. Such performance would have
         been lower if expenses were taken into account.

(2)      The Fund's portfolio is subject to change.
<PAGE>   9
OPPENHEIMER GROWTH FUND

OBJECTIVE-
OPPENHEIMER GROWTH FUND primarily seeks capital appreciation from investments in
securities of well-known and established companies. Current income is a
secondary consideration. The Fund's present focus is principally in securities
of companies having a medium of large capitalization, and a history of earnings
and dividend growth.

NARRATIVE BY JANE PUTNAM, FUND MANAGER
Oppenheimer Growth Fund has been an excellent investment over the past six
months. Our performance was helped by the fact that the U.S. economy was still
expanding, and as a result, traditional growth sectors of the market
outperformed more value-oriented investments. However, we also did well compared
to our growth-oriented peers, finishing in the top third of all rated funds with
our investment objective.(1)

Beyond being growth investors at a time when growth was very much in demand, one
of the decisions that benefited us over the past six months was our stock
selection. Over the period, we were heavily weighted in cyclical stocks compared
to our peers. Because these companies do best when the economy is strong,
investor demand drove cyclical stock prices up when first quarter reports showed
stronger-than-expected economic growth. Thus, our concentration in
cyclicals--primarily chemical and paper companies--was a benefit. We also owned
a large number of technology stocks that did well because of their high growth
potential.

On the other hand, we were overweighted versus our peers in financial services
companies. Over the long term, this is an area we believe offers great
prospects. However, because of the rise in interest rates in the first half of
this year, financial stocks underperformed. The fact that they lagged
year-to-date made their stock prices more attractive on a relative basis, giving
us even greater confidence in their merits as a long-term investment. As a
result, we recently added stocks of some asset managers and brokerage firms.

After last year's run-up in stock prices, we had some difficulty finding stocks
selling at what we'd consider low-to-reasonable price levels. As a consequence,
our cash position was slightly higher than normal. While having a high level of
cash can protect a portfolio when the stock market is declining, it's a drag
when the market's going up. So, although we've outperformed some of our peers,
our cash position held us back somewhat.

As we move through the remainder of the year, we continue to hold
higher-than-average weightings in both technology and financial services
companies. Although prices have risen dramatically for both sectors, the
earnings of many technology and financial services firms are rising faster. For
this reason, we believe their stocks are still excellent growth investments.

In contrast, we've recently been selling some of our cyclical stocks. Because
they've performed so well over the past six months, we believe these companies
have appreciated enough to become more than fully-valued. Specifically, we took
profits in some chemical and basic materials stocks as well as in some of our
retail holdings.
<PAGE>   10
All in all, our outlook for the fund is very favorable, though we have become
somewhat contrarian in our approach to the market. We are holding enough cash to
be able to take quick advantage of any opportunities created when various
companies or market sectors fall out of favor. However, we remain aggressive in
our high growth potential stock and sector holdings.

We appreciate your confidence in Oppenheimer Growth Fund. We look forward to
helping you reach your financial goals in the future.

- --------

(1)      Source: Lipper Analytical Services 6/30/96. Oppenheimer Growth Fund is
         catagorized by Lipper as a growth fund.
<PAGE>   11
OPPENHEIMER MULTIPLE STRATEGIES

OBJECTIVE-
OPPENHEIMER MULTIPLE STRATEGIES seeks a total investment return (including
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. The current allocation of the Fund's
portfolio aims to take advantage of current economic conditions while managing
risk.

NARRATIVE BY RICHARD RUBINSTEIN, FUND MANAGER
The Multiple Strategies portfolio delivered solid results for the past six
months. Its performance can be attributed to both the benefits of an investment
strategy designed to work well under a variety of conditions and the continued
strength of the domestic stock market and our diversified approach to bonds.

Our domestic stock holdings, which included large positions in technology and
healthcare stocks, performed well for us even as earnings momentum in general
began to slow. These companies are positioned to grow rapidly regardless of the
overall U.S. economic growth rate, and as a result, they were very much in
demand with investors. In addition, our bond allocation decisions helped
performance as we moved away from government bonds to seek the more competitive
returns of high yield, lower rated bonds.(1)

And, while the Fund's international equity holdings contributed less to the
portfolio's total return than did its U.S. stock component, our broad
international diversification helped us maintain a low risk profile. And
although our foreign stock holdings failed to meet our expectations this period,
our philosophy for including these securities in the portfolio is that they may
help limit overall portfolio risk. However, over the long-term they offer the
potential to add to performance.

As we position the portfolio for the remainder of the year, we have looked at
current economic factors and reallocated the portfolio's assets to a more
conservative mix. The combination of slowing U.S. corporate earnings momentum,
high valuations and an increase in interest rates of over 100 basis points, led
us to make some strategic changes. These changes resulted in a decrease in our
total equity holdings by about five percent as well as a decrease in our total
number of securities. At the same time, we increased, on a percentage basis,
those holdings we believe are best positioned for the future. Our expectation is
that the stock market will continue to become very selective, and these changes
may be to our advantage.

More specifically, we continued to focus on growth stocks that are issued by
companies with strong competitive positions and consistent earnings. We also
recently added to our position in energy stocks. These stocks tend to sell at
low prices relative to cash flows. With energy prices on the rise, we believe
they offer reward potential.

A strong part of our overall strategy involved a contrarian approach to
investing. Using this approach we looked for opportunities in out-of-favor
industries and companies on the rebound. Recently, we bought retail stocks.
Though sales have suffered from consumer uneasiness, these
<PAGE>   12
companies still have attractive store economics. As a result, we think their
prospects look good.

On the international side, we increased positions in companies having
comparative advantages over the U.S. competitors or that sell at valuation
discounts. We located companies offering such advantages in Argentina, Turkey
and the Far East, as well as in several more established European markets, and
invested in those firms.

Going forward, our long-term outlook is positive, in spite of the increased
volatility experienced by the stock market during the first half of 1996 and the
risks of foreign investing and of high yield bonds, described in the Fund's
prospectus. We feel the portfolio's diversification may help it ride the current
market waves and continue to offer excellent opportunities for the long-term
investor.

We appreciate your confidence in Oppenheimer Multiple Strategies Fund. We look
forward to helping you reach your financial goals in the future.

- --------

(1)      The Fund's portfolio is subject to change.
<PAGE>   13
OPPENHEIMER GLOBAL SECURITIES FUND

OBJECTIVE-
OPPENHEIMER GLOBAL SECURITIES FUND seeks capital growth by investing in a
diversified portfolio of foreign and domestic stocks.

NARRATIVE BY WILLIAM WILBY, FUND MANAGER
Oppenheimer Global Securities Fund has performed well over the past six months.
Using our theme-driven investment approach, we turned in results that were
better than most of our competitors. Even so, it was difficult for global funds
to compete with the outstanding returns from the U.S. market over the period. As
the domestic market has continued to evolve, however, we are beginning to see
evidence of a shift toward international stocks. The long-term potential for
growth may be greater in international stocks than it is in the U.S. market,
especially at current valuation levels.

Because of the strength in the domestic market and where we were positioned
within it, our U.S. holdings performed extremely well over the period. One of
our largest concentrations within domestic stocks was in the technology sector.
And just as technology led the U.S. market, our efficiency-enhancing technology
theme led the portfolio. Our Japanese technology companies performed
particularly well, as Japan began to climb out of a five year recession. In
fact, our Japanese technology stocks have appreciated to the point that we think
they're slightly expensive now. As a result, we've been selling Japanese and
buying U.S. technology again.(1)

On the negative side, toward the end of 1995 and into 1996, we thought European
cyclicals companies--the economically sensitive chemical, automotive, and
industrial companies--had become overly discounted as a result of slow European
economic growth. We felt that their reduced prices would allow us to buy them
while they were good values and then participate in their gains as local
economies improved. However, western European growth has remained somewhat
subdued, so these companies have not yet returned to favor.

After the huge rally in U.S. stocks, we've cut back on our domestic holdings
slightly. While we believe the outlook for the U.S. market remains favorable, we
believe there may be better opportunities overseas at this time. As such, we've
reduced our domestic allocation to 43%, down from a high of 49%.

Recently, we've also been buying some gold stocks, both as part of our natural
resources theme and to help diversify the portfolio. Gold stocks look like a
good investment right now for several reasons. First, gold production worldwide
is below what is needed to meet current demand, particularly due to the
increased demand for jewelry from the emerging markets. And because gold may be
a good hedge against--both inflation and deflation--demand from investors could
increase.

We expect the remainder of the year will be good for us. Since our market lagged
somewhat during 1995, we've been able to buy what we believe are excellent
stocks at good prices, and that should give us an extra push when the U.S.
market returns to favor. We think the Fund's 
<PAGE>   14
portfolio, invested as it is in high growth potential stocks, continues to offer
investors an outstanding opportunity both for diversification and long-term
appreciation potential.

We appreciate your confidence in Oppenheimer Global Securities Fund. We look
forward to helping you reach your financial goals in the future.

- --------

(1)      The Fund's portfolio is subject to change.
<PAGE>   15
OPPENHEIMER STRATEGIC BOND FUND

OBJECTIVE--
OPPENHEIMER STRATEGIC BOND FUND seeks a high level of current income by
investing in three sectors: foreign fixed-income securities, lower-rated high
yield corporate bonds, and U.S. government issues.

NARRATIVE BY DAVID NEGRI, FUND MANAGER
The Strategic Bond portfolio performed well over the past six months despite a
rise in domestic interest rates. Our investment strategy involves investing in
sectors of the bond market that offer high income and total return potential
separately, while also responding to broad market factors independently. By
diversifying our investments across high yield, lower rated corporate bonds,
U.S. government bonds, and foreign bonds, we were able to maintain strong
performance even as many other bond investments suffered.

While rising interest rates hurt domestic government bonds over the past six
months, both foreign bonds and high yield bonds performed very well, providing
the majority of our returns. While high yield bonds generally entail greater
risks than investment grade bonds, they also tend to be less sensitive to
interest rates, which helped them perform well. In addition, because payment of
interest and principal depends on an issuing company's profitability, high yield
bonds tend to follow upward moves in the stock market, like those we've seen so
far this year. We owned high yield bonds of companies in two categories--those
we expected to be able to grow faster than the economy as a whole, and those we
felt were temporarily undervalued. In particular, our holdings in the gaming
industry benefited us over the period.(1)

Like high yield bonds, foreign bonds also offered higher yield and return
potential over the past six months than did domestic government securities. So,
by owning foreign bonds, the Fund was more than compensated for the currency
risk and added expense they entail.

In the U.S. government sector of the portfolio, a shift from Treasuries toward
the better-performing mortgage-backed securities area was another benefit. When
interest rates increase, mortgage-backed securities perform better than other
fixed-income securities because the risk of early prepayment declines. In
general, mortgage-backed securities also tend to offer higher yields than
comparable Treasuries.

Looking toward the remainder of the year, we expect to continue our current
approach to the market, taking advantage where we can of opportunities in
foreign bonds and high yield bonds while we wait for the domestic market to
improve. We will continue to focus on emerging markets' debt over developed
nations' debt, and to look for high yield bonds of companies we think are
well-positioned for the coming business environment. Mortgage-backed securities
will remain an important part of our U.S. government allocation, and where we
are invested in Treasuries, we plan to stay put in shorter-term bonds, since
they carry less interest rate risk. Because of its strategic positioning, we
think this portfolio will continue to do well as the year plays out. Currently,
we expect that economic growth in the U.S. will continue, though it may not
necessarily accelerate. With this view, we will continue to position the
portfolio around what 
<PAGE>   16
we consider the best income and return opportunities worldwide, while we avoid
taking on unnecessary interest rate risk. We are confident this portfolio should
perform well in a variety of market climates.

We appreciate your confidence in Oppenheimer Strategic Bond Fund. We look
forward to helping you reach your financial goals in the future.

- --------

(1)      The Fund's portfolio is subject to change.
<PAGE>   17
OPPENHEIMER GROWTH & INCOME FUND

OBJECTIVE-
OPPENHEIMER GROWTH & INCOME FUND seeks high total return, which includes growth
in the value of its shares as well as current income from equity and debt
securities.

NARRATIVE BY ROBERT MILNAMOW, FUND MANAGER
Oppenheimer Growth & Income Fund performed well over the last six months. We
have positioned our holdings in the stocks of companies representing five
strategic areas of the market. These five areas are comprised of companies in
emerging industries and improving industries; large growth companies that define
their industries; smaller companies with niche businesses; companies undergoing
restructuring; and finally companies that are fundamentally strong selling at
extremely low valuations.(1)

In emerging industries, we were pleased with our investments in
telecommunications equipment manufacturers, small long distance telephone
companies and internet-related companies. In the first half of 1996, small
stocks outperformed their larger counterparts due to the demand for their
superior growth rates. As a result, our smaller growth companies did well as a
group. After their excellent performance in 1995, large cap stock prices started
the year at fairly high valuations, so we didn't expect tremendous advancement.
Even so, we did well with several large cap energy stocks. We also did well with
selected chemical stocks and financial services companies that had undergone
restructuring. Finally, three undervalued areas that performed particularly well
for us were domestic retail and gaming companies as well as selected Japanese
stocks.

Although our performance was very good overall, we had some disappointments in
the healthcare industry during the period. After having done well in 1995,
healthcare stocks were subject to profit taking in the first half of 1996. In
addition, early in 1996, investors' interest moved away from steady growth
industries like healthcare to more economically-sensitive industries like
aerospace, based on reports of fast economic growth. However, we remain
committed to the belief the healthcare is dynamic and holds the potential for
growth over time.

Our asset mix has remained relatively constant for the year, and should not
change dramatically over the near term. Currently, 87 percent of our holdings
are in stocks, roughly 4 percent in convertibles securities, and the remainder
in cash. Looking ahead, we plan to remain focused on carefully selecting
companies that fall into our five targeted market segments. As always, we will
continue to look for value and growth potential across all our investments.

We believe we have enough flexibility to do well in almost any market
environment. As we move toward the remainder of the year, we've positioned the
portfolio to benefit from worldwide economic expansion while aiming for a
combination of long-term growth and current income. As the domestic market
becomes more volatile, we also expect our income focus to provide some shelter
from risk and price volatility.

We appreciate your confidence in Oppenheimer Growth & Income Fund. We look
forward to helping you reach your financial goals in the future.
- --------

(1)      The Fund's portfolio is subject to change.

<PAGE>   18
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                               PRINCIPAL            VALUE
                                                                                               AMOUNT               (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>            <C>                   <C>       
CERTIFICATES OF DEPOSIT - 2.6%
- -------------------------------------------------------------------------------------------------------------------------------
EURODOLLAR CERTIFICATES OF DEPOSIT - 2.6%
- -------------------------------------------------------------------------------------------------------------------------------
        -----------------------------------------------------------------------------------------------------------------------
        Deutsche Bank, 5.10%, 8/23/96 (Cost $3,000,043)                                       $3,000,000            $3,000,043

- -------------------------------------------------------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS - 12.0%
- -------------------------------------------------------------------------------------------------------------------------------
        Credit Suisse, guaranteeing commercial paper of Guandong
        Enterprises (Holdings) Ltd., 5.46%, 7/24/96                                            5,253,000             5,234,676
        -----------------------------------------------------------------------------------------------------------------------
        Huntington National Bank, 5.09%, 8/21/96                                               3,000,000             3,000,000
        -----------------------------------------------------------------------------------------------------------------------
        National Westminster Bank of Canada, 5.40%, 7/26/96                                    3,000,000             2,988,750
        -----------------------------------------------------------------------------------------------------------------------
        Societe Generale, guaranteeing commercial paper of Banco Nacional de
Comercio Exterior, SNC-2, Series A 5.20%, 7/10/96                                              2,500,000             2,496,750
                                                                                                              -----------------
        Total Direct Bank Obligations (Cost $13,720,176)                                                            13,720,176

- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES - 85.2%
- -------------------------------------------------------------------------------------------------------------------------------
BANKS - 4.4%
        -----------------------------------------------------------------------------------------------------------------------
        Barnett Banks, Inc., 5.36%, 7/1/96                                                     5,000,000             5,000,000
- -------------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS - 9.0%
        -----------------------------------------------------------------------------------------------------------------------
        Dean Witter, Discover & Co., 5.77%, 1/15/97                           (1)              2,000,000             2,002,556
        -----------------------------------------------------------------------------------------------------------------------
        Merrill Lynch & Co., Inc.:
        5.29%, 7/15/96                                                                         1,478,400             1,475,359
        5.36%, 7/8/96                                                                          4,000,000             3,995,839
        -----------------------------------------------------------------------------------------------------------------------
        Morgan Stanley Group, Inc., 5.27%, 9/30/96                            (1)              2,800,000             2,800,000
                                                                                                              -----------------
                                                                                                                    10,273,754
- -------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.8%
        -----------------------------------------------------------------------------------------------------------------------
        Monsanto Co., 5.27%, 7/23/96                                                             924,000               921,024
- -------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE - 10.7%
        -----------------------------------------------------------------------------------------------------------------------
        CIT Group Holdings, Inc., 5.60%, 7/11/96                           (1)(2)(3)           1,000,000             1,000,000
        -----------------------------------------------------------------------------------------------------------------------
        Countrywide Home Loan, 5.35%, 7/3/96                                                   1,500,000             1,499,554
        -----------------------------------------------------------------------------------------------------------------------
        FINOVA Capital Corp.:
        5.45%, 9/3/96                                                                          3,500,000             3,466,400
        5.50%, 7/2/96                                                                            720,000               719,890
        -----------------------------------------------------------------------------------------------------------------------
        Heller Financial, Inc.:
        5.48%, 8/15/96                                                        (1)              2,600,000             2,582,190
        5.70%, 12/1/96                                                        (1)              3,000,000             3,001,696
                                                                                                              -----------------
                                                                                                                    12,269,730
- -------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.0%
        -----------------------------------------------------------------------------------------------------------------------
        First Data Corp., 5.38%, 7/2/96                                                        3,400,000             3,399,492
- -------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 9.9%
        -----------------------------------------------------------------------------------------------------------------------
        General Electric Capital Corp., 4.94%, 8/21/96                                         3,000,000             2,979,005
        -----------------------------------------------------------------------------------------------------------------------
        General Motors Acceptance Corp.:
        5.42%, 11/8/96                                                                         3,500,000             3,431,497
        5.42%, 8/19/96                                                                         2,000,000             1,985,246
        -----------------------------------------------------------------------------------------------------------------------
        Prudential Funding Corp., 5.06%, 7/8/96                                                3,000,000             2,997,048
                                                                                                         ----------------------
                                                                                                                    11,392,796
</TABLE>


                                       1
<PAGE>   19
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                 PRINCIPAL               VALUE
                                                                                                 AMOUNT                  (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>               <C>                   <C>      
ELECTRONICS - 6.9%
        -------------------------------------------------------------------------------------------------------------------------
        ITT Industries, Inc., 5.40%, 7/8/96                                   (2)               $3,000,000            $2,996,850
        -------------------------------------------------------------------------------------------------------------------------
        Mitsubishi Electric Finance America, Inc.:
        5.12%, 7/24/96                                                        (2)                3,000,000             2,990,187
        5.41%, 8/7/96                                                         (2)                2,000,000             1,988,879
                                                                                                              -------------------
                                                                                                                       7,975,916
- ---------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL - 2.6%
        -------------------------------------------------------------------------------------------------------------------------
        WMX Technologies, Inc., 5.32%, 9/10/96                                (2)                3,000,000             2,968,523
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 0.8%
        -------------------------------------------------------------------------------------------------------------------------
        Allergan, Inc., 5.33%, 7/16/96                                                             916,600               914,564
- ---------------------------------------------------------------------------------------------------------------------------------
LEASING & FACTORING - 7.7%
        -------------------------------------------------------------------------------------------------------------------------
        CSW Credit, Inc., 5.42%, 8/7/96                                                          5,600,000             5,568,805
        -------------------------------------------------------------------------------------------------------------------------
        The Hertz Corp., 5.37%, 7/10/96                                                          3,250,000             3,245,637
                                                                                                              -------------------
                                                                                                                       8,814,442
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL - 22.8%
        -------------------------------------------------------------------------------------------------------------------------
        Asset Securitization Cooperative Corp., 5.31%, 7/8/96                 (2)                  739,200               738,424
        -------------------------------------------------------------------------------------------------------------------------
        CIESCO L.P., 5.42%, 5/19/97                                         (1)(2)               3,000,000             2,999,545
        -------------------------------------------------------------------------------------------------------------------------
        Cooperative Association of Tractor Dealers, Inc.:
        5.08%, 7/2/96                                                                            1,478,400             1,478,182
        5.45%, 7/3/96                                                                            1,550,000             1,549,531
        -------------------------------------------------------------------------------------------------------------------------
        Corporate Asset Funding Co., Inc., 5.60% 7/1/96                                          4,761,000             4,761,000
        -------------------------------------------------------------------------------------------------------------------------
        Falcon Asset Securitization Corp., 5.41%, 7/25/96                     (2)                5,645,000             5,624,640
        -------------------------------------------------------------------------------------------------------------------------
        First Deposit Master Trust 1993-3, 5.42%, 8/12/96                     (2)                4,600,000             4,570,913
        -------------------------------------------------------------------------------------------------------------------------
        Sheffield Receivables Corp., 5.35%, 7/8/96                                               4,400,000             4,395,406
                                                                                                              -------------------
                                                                                                                      26,117,641
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 1.9%
        -------------------------------------------------------------------------------------------------------------------------
        St. Michael Finance Ltd., guaranteed by Marks & Spencer
        PLC, 5.35%, 9/4/96                                                                       2,200,000             2,178,749
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 4.7%
        -------------------------------------------------------------------------------------------------------------------------
        NYNEX Corp.:
        5.33%, 7/12/96                                                                           3,400,000             3,394,463
        5.35%, 7/29/96                                                                           2,000,000             1,991,538
                                                                                                              -------------------
                                                                                                                       5,386,001
                                                                                                              -------------------

        Total Short-Term Notes (Cost $97,612,632)                                                                     97,612,632

- ---------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 0.6%
- ---------------------------------------------------------------------------------------------------------------------------------
        U.S. Treasury Nts., 6.13%, 7/31/96 (Cost $740,118)                                         740,000               740,118

        -------------------------------------------------------------------------------------------------------------------------
        TOTAL INVESTMENTS, AT VALUE                                                                  100.4%          115,072,969
        -------------------------------------------------------------------------------------------------------------------------
        LIABILITIES IN EXCESS OF OTHER ASSETS                                                         (0.4)             (486,711)
                                                                                     ----------------------   -------------------
        NET ASSETS                                                                                   100.0%         $114,586,258
                                                                                     ======================   ===================
</TABLE>

        Short-term notes and direct bank obligations are generally traded on a
        discount basis; the interest rate is the discount rate received by the
        Fund at the time of purchase. Other securities normally bear interest at
        the rates shown.

                                       2
<PAGE>   20


Oppenheimer Variable Account Funds - Oppenheimer Money Fund
Statement of Investments (Continued)

         
- --------------------------------------------------------------------------------

         1. Floating or variable rate obligation maturing in more than one year.
         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 June 30, 1996. This instrument may also have a demand feature
         which allows the recovery of principal at any time, or at specified
         intervals not exceeding one year, on up to 30 days' notice. Maturity
         date shown represents effective maturity based on variable rate and, if
         applicable, demand feature.
         2. Restricted securities amount to $25,877,961, or 22.58% of the Fund's
         net assets, at June 30, 1996. In addition to being restricted, the
         security may be considered illiquid by virtue of the absence of a
         readily available market or because of legal or contractual
         restrictions on resale. Illiquid securities amount to $1,000,000, or
         0.87% of the Fund's net assets, at June 30, 1996. The Fund may not
         invest more than 10% of its net assets determined at the time of
         purchase) in illiquid securities.
         3. Put obligation redeemable at full face value on the date reported.

See accompanying Notes to Financial Statements.

                                       3
<PAGE>   21
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                       PRINCIPAL       MARKET VALUE
                                                                                                       AMOUNT(1)       (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>            <C>              <C>     
MORTGAGE-BACKED OBLIGATIONS - 2.8%
- ---------------------------------------------------------------------------------------------------------------------------------
       CBA Mortgage Corp., Mtg. Pass-Through Certificates,
       Series 1993-C1, Cl. F, 7.153%, 12/25/03                                        (2)(3)        $   700,000      $   523,687
       --------------------------------------------------------------------------------------------------------------------------
       Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through
       Certificates, Series 1995-C2, Cl. D, 8.266%, 6/15/21                           (2)               482,223          482,751
       --------------------------------------------------------------------------------------------------------------------------
       Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-
       Through Certificates, Series 1996-C1, Cl. E, 7.51%, 2/1/28                    (2)(4)             835,342          653,133
       --------------------------------------------------------------------------------------------------------------------------
       Mortgage Capital Funding, Inc., Multifamily Mortgage Pass-
       Through Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06                  (4)(5)             750,000          560,625
       --------------------------------------------------------------------------------------------------------------------------
       Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
       Series 1994-C1, Cl. E, 8%, 6/25/26                                                               722,038          638,553
       Series 1994-C2, Cl. G, 8%, 4/25/25                                                               863,240          728,898
       Series 1995-C1, Cl. F, 6.90%, 2/25/27                                                          1,028,041          841,388
                                                                                                                   --------------

       Total Mortgage-Backed Obligations (Cost $4,356,982)                                                             4,429,035

- ---------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 9.5%
- ---------------------------------------------------------------------------------------------------------------------------------
       Argentina (Republic of):
       Bonds, 11.25%, 4/10/06                                                             DEM           175,000          116,004
       Unsub. Unsec. Bonds, 10.25%, 2/6/03                                                DEM           810,000          537,467
       --------------------------------------------------------------------------------------------------------------------------
       Banco Estado Minas Gerais, 8.25%, 2/10/00                                                        550,000          503,250
       --------------------------------------------------------------------------------------------------------------------------
       Banco Hipotecario Nacional (Argentina) Medium-Term Nts.,
       10.625%, 3/29/99                                                              (4)                150,000          151,875
       --------------------------------------------------------------------------------------------------------------------------
       Banco Nacional de Comercio Exterior SNC International
       Finance BV Gtd.:
       Bonds, 8.75%, 9/28/00                                                              GBP           110,000          156,070
       Nts., 8%, 8/5/03                                                                                 450,000          384,469
       --------------------------------------------------------------------------------------------------------------------------
       Brazil (Federal Republic of) Nts., Banco Estado Minas
       Gerais, 7.875%, 2/10/99                                                                           30,000           27,787
       --------------------------------------------------------------------------------------------------------------------------
       Buenos Aires (Province of) Bonds, 10%, 3/5/01                                      DEM           214,000          143,403
       --------------------------------------------------------------------------------------------------------------------------
       Bulgaria (Republic of):
       Front-Loaded Interest Reduction Bearer Bonds, Tranche A,
       2%, 7/28/12                                                                   (2)                820,000          273,419
       Interest Arrears Bonds, 6.25%, 7/28/11                                        (2)                970,000          460,750
       --------------------------------------------------------------------------------------------------------------------------
       Canada (Government of) Real Return Debs., 4.517%,
       12/1/21                                                                       (6)  CAD         1,600,000        1,153,117
       --------------------------------------------------------------------------------------------------------------------------
       Central Bank of Costa Rica Interest Claim Bonds, Series B,
       6.328%, 5/21/05                                                               (2)                262,123          242,464
       --------------------------------------------------------------------------------------------------------------------------
       Denmark (Kingdom of) Bonds, 8%, 5/15/03                                            DKK         4,545,000          820,228
       --------------------------------------------------------------------------------------------------------------------------
       Ecuador (Republic of) Disc. Bonds, 6.063%, 2/28/25                            (2)                430,000          244,025
       --------------------------------------------------------------------------------------------------------------------------
       Hashemite Kingdom of Jordan:
       Disc. Bonds, 6.625%, 12/23/23                                                 (2)              1,000,000          702,500
       Interest Arrears Bonds, 6.625%, 12/23/05                                      (2)                100,000           80,750
       --------------------------------------------------------------------------------------------------------------------------
       Italy (Republic of) Certificati di Credito del Tesoro Nts.,
       11.20%, 8/1/00                                                                (2)  ITL       480,000,000          320,636
</TABLE>

                                       4
<PAGE>   22
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                      PRINCIPAL      MARKET VALUE
                                                                                                      AMOUNT(1)        (NOTE 1)
<S>                                                                            <C>      <C>        <C>              <C>
- ---------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 9.5%
- ---------------------------------------------------------------------------------------------------------------------------------
            National Treasury Management Agency (Irish Government)
            Bonds, 8%, 10/18/00                                                         IEP            370,000      $   617,111
            ---------------------------------------------------------------------------------------------------------------------
            New South Wales Treasury Corp. Gtd. Bonds, 12%, 12/1/01                     AUD          1,150,000        1,028,252
            ---------------------------------------------------------------------------------------------------------------------
            New Zealand (Republic of) Bonds, 8%, 2/15/01                                NZD            660,000          434,679
            ---------------------------------------------------------------------------------------------------------------------
            Panama (Republic of) Debs., 6.629%, 5/10/02                        (2)                     161,539          151,847
            ---------------------------------------------------------------------------------------------------------------------
            Poland (Republic of) Treasury Bills, Zero Coupon:
            21.464%, 10/16/96                                                  (7)      PLZ            500,000          173,205
            20.376%, 3/19/97                                                   (7)      PLZ            800,000          255,785
            22.405%, 7/24/96                                                   (7)      PLZ          1,000,000          362,939
            ---------------------------------------------------------------------------------------------------------------------
            Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio
            Prazo, 11.875%, 2/23/00                                                     PTE         85,000,000          607,007
            ---------------------------------------------------------------------------------------------------------------------
            Sweden (Kingdom of) Bonds, Series 1030, 13%, 6/15/01                        SEK          3,200,000          589,679
            Telecomunicacoes Brasileiras SA, 13% Bonds, 2/5/99                          ITL        385,000,000          258,684
            ---------------------------------------------------------------------------------------------------------------------
            United Kingdom Treasury Nts., 13%, 7/14/00                        (14)      GBP            815,000        1,520,409
            ---------------------------------------------------------------------------------------------------------------------
            United Mexican States:
            Bonds, 10.375%, 1/29/03                                                     DEM            850,000          570,431
            Nacional Financiera SNC Nts., 13.60%, 4/2/98                                ESP        100,000,000          827,738
            ---------------------------------------------------------------------------------------------------------------------
            Venezuela (Republic of) Disc. Bonds, Series DL, 6.625%,
            12/18/07                                                           (2)                   1,500,000        1,061,250
                                                                                                                     ----------
            Total Foreign Government Obligations (Cost $14,458,053)                                                  14,777,230

- ---------------------------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS - 2.1%
- ---------------------------------------------------------------------------------------------------------------------------------
            Algeria (Republic of) Reprofiled Debt Loan Participation,
            Tranche A, 6.812%, 9/4/06                                       (2)(3)                   500,000            298,438
            ---------------------------------------------------------------------------------------------------------------------
            Colombia (Republic of) 1989-1990 Integrated Loan Facility
            Bonds, 6.563%, 7/1/01                                           (2)(3)                 1,021,540            952,586
            ---------------------------------------------------------------------------------------------------------------------
            Morocco (Kingdom of) Loan Participation Agreement,
            Tranche A, 6.437%, 1/1/09                                          (2)                   875,000            630,273
            ---------------------------------------------------------------------------------------------------------------------
            Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96                (3)                   700,000            703,500
            ---------------------------------------------------------------------------------------------------------------------
            Trinidad & Tobago Loan Participation Agreement, Tranche
            B, 1.772%, 9/30/00                                              (2)(3)      JPY       92,319,750            719,660
                                                                                                                     ----------
            Total Loan Participations (Cost $3,328,297)                                                               3,304,457

- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 0.8%
- ---------------------------------------------------------------------------------------------------------------------------------
            San Joaquin Hills, California Transportation Corridor
            Agency Toll Road Capital Appreciation Revenue Bonds, Jr
            Lien, Zero Coupon, 9%, 1/1/28 (Cost $781,004)                      (7)                12,500,000          1,163,225

CORPORATE BONDS AND NOTES - 63.1%
- ---------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 4.9%
- ---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.8%
- ---------------------------------------------------------------------------------------------------------------------------------
            NL Industries, Inc.:
            0%/13% Sr. Sec. Disc. Nts., 10/15/05                               (8)                   500,000            392,500
            11.75% Sr. Sec. Nts., 10/15/03                                                           650,000            666,250
            ---------------------------------------------------------------------------------------------------------------------
            Texas Petrochemicals Corp., 11.125% Sr. Sub. Nts., 7/1/06       (4)(5)                   200,000            204,062
                                                                                                                     ----------
                                                                                                                      1,262,812
</TABLE>


                                       5
<PAGE>   23
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                  PRINCIPAL        MARKET VALUE
                                                                                                  AMOUNT(1)          (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                <C>             <C>       
METALS/MINING - 0.5%
            ---------------------------------------------------------------------------------------------------------------------
            Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03                            $454,000        $  493,725
            ---------------------------------------------------------------------------------------------------------------------
            UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05                               230,000           262,200
                                                                                                                   ----------
                                                                                                                      755,925

- ---------------------------------------------------------------------------------------------------------------------------------
PAPER - 3.1%
            ---------------------------------------------------------------------------------------------------------------------
            Domtar, Inc.:
            11.25% Debs., 9/15/17                                                                   400,000           427,000
            12% Nts., 4/15/01                                                                       250,000           289,375
            ---------------------------------------------------------------------------------------------------------------------
            Florida Coast Paper Co. LLC/Florida Coast Paper Finance
            Corp., 12.75% First Mtg. Nts., 6/1/03                                      (4)          550,000           572,000
            ---------------------------------------------------------------------------------------------------------------------
            Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs.,
            5/15/05                                                                                 500,000           528,750
            ---------------------------------------------------------------------------------------------------------------------
            Indah Kiat International Finance Co. BV, 12.50% Sr. Sec 
            Gtd. Nts., Series C, 6/15/06                                                            350,000           373,625
            ---------------------------------------------------------------------------------------------------------------------
            QUNO Corp., 9.125% Sr. Nts., 5/15/05                                                    200,000           196,500
            ---------------------------------------------------------------------------------------------------------------------
            Repap Wisconsin, Inc., 9.25% First Priority Sr. Sec. Nts.,
            2/1/02                                                                                  500,000           473,750
            ---------------------------------------------------------------------------------------------------------------------
            Riverwood International Corp.:
            10.25% Sr. Nts., 4/1/06                                                                 600,000           598,500
            10.875% Sr. Sub. Nts., 4/1/08                                                           250,000           247,500
            ---------------------------------------------------------------------------------------------------------------------
            SD Warren Co., 12% Sr. Sub. Nts., 12/15/04                                              250,000           266,250
            ---------------------------------------------------------------------------------------------------------------------
            Stone Container Corp.:
            10.75% First Mtg. Nts., 10/1/02                                                         800,000           812,000
            10.75% Sr. Sub. Nts., 6/15/97                                                           100,000           102,500
                                                                                                                   ----------
                                                                                                                    4,887,750

- ---------------------------------------------------------------------------------------------------------------------------------
STEEL - 0.5%
            Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00                                       175,000           173,250
            ---------------------------------------------------------------------------------------------------------------------
            Republic Engineered Steels, Inc., 9.875% First Mtg. Nts.,
            12/15/01                                                                                600,000           562,500
                                                                                                                   ----------
                                                                                                                      735,750

- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 11.9% 
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS - 2.4%
            ---------------------------------------------------------------------------------------------------------------------
            Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
            Series B, 11.074%, 5/27/98                                                 (7)          400,000           337,000
            ---------------------------------------------------------------------------------------------------------------------
            Harman International Industries, Inc., 12% Sr. Sub. Nts.,
            8/1/02                                                                                1,650,000         1,806,750
            ---------------------------------------------------------------------------------------------------------------------
            International Semi-Tech Microelectronics, Inc., 0%/11.50%
            Sr. Sec. Disc. Nts., 8/15/03                                               (8)          500,000           297,500
            ---------------------------------------------------------------------------------------------------------------------
            Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts.,
            32.881%, 3/15/98                                                           (7)          350,000           293,125
            ---------------------------------------------------------------------------------------------------------------------
            TAG Heuer International SA, 12% Sr. Sub. Nts., 12/15/05                    (4)          400,000           419,000
            ---------------------------------------------------------------------------------------------------------------------
            Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04                                   600,000           592,500
                                                                                                                   ----------
                                                                                                                    3,745,875
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.6%
- ---------------------------------------------------------------------------------------------------------------------------------
            Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03                                  400,000           420,000
            ---------------------------------------------------------------------------------------------------------------------
            Doane Products Co., 10.625% Sr. Nts., 3/1/06                                            250,000           251,250
            ---------------------------------------------------------------------------------------------------------------------
            Foodbrands America, Inc., 10.75% Sr. Sub. Nts., 5/15/06                                 235,000           237,350
                                                                                                                   ----------
                                                                                                                      908,600
</TABLE>


                                       6
<PAGE>   24
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                 PRINCIPAL        MARKET VALUE
                                                                                                 AMOUNT(1)           (NOTE 1)
<S>                                                                                           <C>                  <C>       
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 2.8%
            --------------------------------------------------------------------------------------------------------------------
            Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02                             $   1,600,000        $2,040,000
            --------------------------------------------------------------------------------------------------------------------
            Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02                                 400,000           446,000
            --------------------------------------------------------------------------------------------------------------------
            IHF Holdings, Inc., 0%/15% Sr. Sub. Disc. Nts., Series B,
            11/15/04                                                        (8)                     250,000           171,250
            --------------------------------------------------------------------------------------------------------------------
            Magellan Health Services, Inc., 11.25% Sr. Sub. Nts.,
            Series A, 4/15/04                                                                       500,000           540,000
            --------------------------------------------------------------------------------------------------------------------
            Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04     (8)                   1,244,000         1,219,120
                                                                                                                   ----------
                                                                                                                    4,416,370
- --------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING - 2.6%
            --------------------------------------------------------------------------------------------------------------------
            Capital Gaming International, Inc., Promissory Nts.             (9)                       9,500                --
            --------------------------------------------------------------------------------------------------------------------
            Majestic Star Casino LLC (The), 12.75% Sr. Sec. Nts.,
            5/15/03                                                         (4)                     450,000           488,250
            --------------------------------------------------------------------------------------------------------------------
            Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts.,
            11/15/02                                                        (4)                     400,000           504,000
            --------------------------------------------------------------------------------------------------------------------
            Players International, Inc., 10.875% Sr. Nts., 4/15/05                                  500,000           508,750
            --------------------------------------------------------------------------------------------------------------------
            Showboat Marina Casino Partnership/Showboat Marina
            Finance Corp., 13.50% First Mtg. Nts., 3/15/03                  (4)                     550,000           594,000
            --------------------------------------------------------------------------------------------------------------------
            Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03                                     500,000           492,500
            --------------------------------------------------------------------------------------------------------------------
            Trump Atlantic City Associates/Trump Atlantic City
            Funding, Inc., 11.25% First Mtg. Nts., 5/1/06                                         1,500,000         1,515,000
                                                                                                                   ----------
                                                                                                                    4,102,500
- --------------------------------------------------------------------------------------------------------------------------------
LEISURE - 0.2%
            --------------------------------------------------------------------------------------------------------------------
            Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A,
            6/30/02                                                         (3)                     278,779           293,763
- --------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS - 1.8%
            --------------------------------------------------------------------------------------------------------------------
            Apple South, Inc., 9.75% Sr. Nts., 6/1/06                                               500,000           493,750
            --------------------------------------------------------------------------------------------------------------------
            Carrols Corp., 11.50% Sr. Nts., 8/15/03                                                 430,000           438,600
            --------------------------------------------------------------------------------------------------------------------
            Foodmaker, Inc.:
            9.25% Sr. Nts., 3/1/99                                                                  200,000           197,500
            9.75% Sr. Sub. Nts., 6/1/02                                                           1,750,000         1,688,750
                                                                                                                   ----------
                                                                                                                    2,818,600
- --------------------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL - 1.5%
            --------------------------------------------------------------------------------------------------------------------
            Clark-Schwebel, Inc., 10.50% Sr. Nts., 4/15/06                  (4)                     500,000           512,500
            --------------------------------------------------------------------------------------------------------------------
            Polysindo International Finance Co. BV, 11.375% Bonds,
            6/15/06                                                                                 600,000           613,500
            --------------------------------------------------------------------------------------------------------------------
            PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts.:
            19.111%, 2/28/97                                                (7)       IDR     1,000,000,000           378,930
            19.348%, 4/29/97                                                (7)       IDR       980,000,000           359,344
            --------------------------------------------------------------------------------------------------------------------
            Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02                              500,000           531,250
                                                                                                                   ----------
                                                                                                                    2,395,524
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY - 4.9%
            --------------------------------------------------------------------------------------------------------------------
            BP America, Inc., 10.875% Nts., 8/1/01                                    CAD           350,000           290,894
            --------------------------------------------------------------------------------------------------------------------
            Chesapeake Energy Corp.:
            10.50% Sr. Nts., 6/1/02                                                                 500,000           525,000
            9.125% Sr. Nts., 4/15/06                                                                350,000           346,500
            --------------------------------------------------------------------------------------------------------------------
            Falcon Drilling, Inc., 8.875% Sr. Nts., Series B, 3/15/03                               300,000           289,875
            --------------------------------------------------------------------------------------------------------------------
            Kelley Oil & Gas Corp., 13.50% Sr. Nts., 6/15/99                                        600,000           637,500
            --------------------------------------------------------------------------------------------------------------------
            Maxus Energy Corp., 11.50% Debs., 11/15/15                                              800,000           838,000
</TABLE>


                                       7
<PAGE>   25
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                  PRINCIPAL         MARKET VALUE
                                                                                                  AMOUNT(1)           (NOTE 1)
<S>                                                                        <C>                  <C>                  <C>       
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------------
            Mesa Operating Co., 10.625% Gtd. Sr. Sub. Nts., 7/1/06         (5)                  $    1,450,000       $1,472,656
            --------------------------------------------------------------------------------------------------------------------
            OPI International, Inc., 12.875% Sr. Gtd. Nts., 7/15/02                                    750,000          832,500
            --------------------------------------------------------------------------------------------------------------------
            Petroleum Heat & Power Co., Inc.:
            12.25% Sub. Debs., 2/1/05                                                                  157,000          173,485
            9.375% Sub. Debs., 2/1/06                                                                  650,000          614,250
            --------------------------------------------------------------------------------------------------------------------
            Triton Energy Corp.:
            0%/9.75% Sr. Sub. Disc. Nts., 12/15/00                         (8)                         200,000          195,000
            Zero Coupon Sr. Sub. Disc. Nts., 10.318%, 11/1/97              (7)                       1,200,000        1,086,000
            --------------------------------------------------------------------------------------------------------------------
            Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05                                        250,000          236,250
                                                                                                                     ----------
                                                                                                                      7,537,910
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.3%
- --------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 1.2%
            --------------------------------------------------------------------------------------------------------------------
            Banco Bamerindus do Brasil SA, 11% Sr. Unsub.
            Unsec. Bonds, 10/6/97                                                                      280,000          270,900
            --------------------------------------------------------------------------------------------------------------------
            First Nationwide (Parent) Holdings, Inc., 12.50% Sr. Nts.,
            4/15/03                                                                                    800,000          838,000
            --------------------------------------------------------------------------------------------------------------------
            PT Inti Indorayon Utama, Zero Coupon Promissory Nts.,
            17.234%, 2/12/97                                               (7)      IDR          1,800,000,000          699,028
                                                                                                                     ----------
                                                                                                                      1,807,928
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.1%
            --------------------------------------------------------------------------------------------------------------------
            ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02                       (3)                         207,685          228,455
            GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98                                            1,500,000        1,500,000
                                                                                                                     ----------
                                                                                                                      1,728,455
- --------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED - 1.4%
- --------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS - 0.1%
            --------------------------------------------------------------------------------------------------------------------
            Building Materials Corp., 0%/11.75% Sr. Deferred Coupon
            Nts., Series B, 7/1/04                                         (8)                         250,000          185,625
- --------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL ESTATE - 1.3%
            --------------------------------------------------------------------------------------------------------------------
            First Place Tower, Inc.:
            9.22% First Mtg. Bonds, 12/15/05                                        CAD                300,400          223,823
            Units (each unit consists of one $10 principal amount of
            8.50% cv. sub. debs., 12/15/15 and 40 common shares)          (10)      CAD                180,660          238,125
            --------------------------------------------------------------------------------------------------------------------
            Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec.
            Nts., Series B, 4/1/02                                                                   1,000,000        1,030,000
            --------------------------------------------------------------------------------------------------------------------
            Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A,
            12/1/11                                                        (4)                         700,000          532,000
                                                                                                                     ----------
                                                                                                                      2,023,948
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 2.4%
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 1.6%
            --------------------------------------------------------------------------------------------------------------------
            Communications & Power Industries, Inc., 12% Sr. Sub. Nts.,
            8/1/05                                                                                   1,000,000        1,062,500
            --------------------------------------------------------------------------------------------------------------------
            Dell Computer Corp., 11% Sr. Nts., 8/15/00                                                 500,000          548,125
            --------------------------------------------------------------------------------------------------------------------
            Rohr, Inc., 11.625% Sr. Nts., 5/15/03                                                      800,000          884,000
                                                                                                                     ----------
                                                                                                                      2,494,625
- --------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE - 0.8%
- --------------------------------------------------------------------------------------------------------------------------------
            Aftermarket Technology Corp., 12% Sr. Sub. Nts., Series B,
            8/1/04                                                                                     400,000          434,000
</TABLE>


                                       8
<PAGE>   26
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                   PRINCIPAL       MARKET VALUE
                                                                                                   AMOUNT(1)         (NOTE 1)
<S>                                                                              <C>              <C>               <C>
- ------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE (CONTINUED)
            ------------------------------------------------------------------------------------------------------------------
            Collins & Aikman Products Co., 11.50% Gtd. Sr. Sub. Nts.,
            4/15/06                                                                               $  250,000        $  255,000
- ------------------------------------------------------------------------------------------------------------------------------
            Foamex LP/Foamex Capital Corp., 9.50% Sr. Sec. Nts., 
            6/1/00                                                                                   240,000           240,000
- ------------------------------------------------------------------------------------------------------------------------------
            Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04                                           350,000           327,250
                                                                                                                    ----------
                                                                                                                     1,256,250
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.0%
            ------------------------------------------------------------------------------------------------------------------
            Farley, Inc., Zero Coupon Sub. Debs., 14.143%, 12/30/12               (3)(7)             198,000            20,991
- ------------------------------------------------------------------------------------------------------------------------------
MEDIA - 13.5%
- ------------------------------------------------------------------------------------------------------------------------------
BROADCASTING - 4.4%
            ------------------------------------------------------------------------------------------------------------------
            American Radio Systems Corp., 9% Sr. Sub. Nts., 2/1/06                                   700,000           665,000
            ------------------------------------------------------------------------------------------------------------------
            Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05                                    200,000           188,500
            ------------------------------------------------------------------------------------------------------------------
            Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03                              1,000,000         1,114,594
            ------------------------------------------------------------------------------------------------------------------
            Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02                            1,200,000         1,254,000
            ------------------------------------------------------------------------------------------------------------------
            SFX Broadcasting, Inc., 10.75% Sr. Sub. Nts., 5/15/06                    (4)             300,000           300,000
            ------------------------------------------------------------------------------------------------------------------
            Sinclair Broadcast Group, Inc.:
            10% Sr. Sub. Nts., 12/15/03                                                              345,000           332,925
            10% Sr. Sub. Nts., 9/30/05                                                               400,000           390,000
            ------------------------------------------------------------------------------------------------------------------
            Summit Communications Group, Inc., 10.50% Sr. Sub. Debs., 4/15/05                        850,000           924,375
            ------------------------------------------------------------------------------------------------------------------
            Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01                          700,000           745,500
            ------------------------------------------------------------------------------------------------------------------
            Young Broadcasting, Inc., 9% Sr. Sub. Nts., 1/15/06                                      950,000           850,250
                                                                                                                    ----------
                                                                                                                     6,765,144
- ------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION - 4.4%
            ------------------------------------------------------------------------------------------------------------------
            American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04            (8)              50,106            35,074
            ------------------------------------------------------------------------------------------------------------------
            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)                  (8)(10)           1,650,000           990,000
            ------------------------------------------------------------------------------------------------------------------
            Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04                   (8)           1,700,000         1,198,500
            ------------------------------------------------------------------------------------------------------------------
            Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08                          600,000           607,500
            ------------------------------------------------------------------------------------------------------------------
            Cablevision Systems Corp.: 
            10.50% Sr. Sub. Debs., 5/15/16                                                           250,000           243,750
            10.75% Sr. Sub. Debs., 4/1/04                                                            500,000           517,500
            ------------------------------------------------------------------------------------------------------------------
            Fundy Cable Ltd./Ltee, 11% Sr. Sec. Second Priority Nts., 11/15/05                       400,000           407,000
            ------------------------------------------------------------------------------------------------------------------
            Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts.,
            Series B, 11/1/03                                                        (2)             500,000           497,500
            ------------------------------------------------------------------------------------------------------------------
            International CableTel, Inc.:
            0%/10.875% Sr. Deferred Coupon Nts., 10/15/03                            (8)             100,000            73,000
            0%/11.50% Sr. Deferred Coupon Nts., Series A, 2/1/06                     (8)             500,000           282,500
            0%/12.75% Sr. Deferred Coupon Nts., 4/15/05                              (8)             350,000           225,750
            ------------------------------------------------------------------------------------------------------------------
            People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04              (8)             250,000           143,750
</TABLE>


                                       9
<PAGE>   27
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                               PRINCIPAL        MARKET VALUE
                                                                                               AMOUNT(1)        (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION (CONTINUED)
       ---------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>              <C>              <C>    
       Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority                                  $     800,000   $    782,000
       Debs., 12/1/07
       ---------------------------------------------------------------------------------------------------------------------
       TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07                                                 300,000        334,004
       ---------------------------------------------------------------------------------------------------------------------
       United International Holdings, Inc.:
       0%/14% Sr. Disc. Nts., 5/15/06                                        (4)(8)                  350,000        184,625
       Zero Coupon Sr. Sec. Disc. Nts., 12.057%, 11/15/99                       (7)                  500,000        330,000
       ---------------------------------------------------------------------------------------------------------------------
       Videotron Holdings PLC, 0%/11% Sr. Disc. Nts., 8/15/05                   (8)                   25,000         16,375
                                                                                                                ------------
                                                                                                                  6,868,828
- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA - 3.7%
       ---------------------------------------------------------------------------------------------------------------------
       Ackerley Communications, Inc., 10.75% Sr. Sec. Nts.,
       Series A, 10/1/03                                                                             750,000        780,937
       ---------------------------------------------------------------------------------------------------------------------
       EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04         (8)                1,800,000      1,314,000
       ---------------------------------------------------------------------------------------------------------------------
       GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10                             (4)                  475,896        535,859
       ---------------------------------------------------------------------------------------------------------------------
       Heritage Media Corp., 8.75% Sr. Sub. Nts., 2/15/06                                            350,000        327,250
       ---------------------------------------------------------------------------------------------------------------------
       Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03                                             500,000        513,750
       ---------------------------------------------------------------------------------------------------------------------
       Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03                                               300,000        312,000
       ---------------------------------------------------------------------------------------------------------------------
       Panamsat LP/Panamsat Capital Corp.:
       0%/11.375% Sr. Sub. Disc. Nts., 8/1/03                                   (8)                1,850,000      1,618,750
       9.75% Sr. Sec. Nts., 8/1/00                                                                   350,000        364,000
                                                                                                                ------------
                                                                                                                  5,766,546
- ----------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM - 1.0%
       ---------------------------------------------------------------------------------------------------------------------
       Imax Corp., 7% Sr. Nts., 3/1/01                                         (11)                1,600,000      1,568,000
- ----------------------------------------------------------------------------------------------------------------------------
OTHER - 0.8%
- ----------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 0.5%
       ---------------------------------------------------------------------------------------------------------------------
       MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96                                     750,000        753,750
- ----------------------------------------------------------------------------------------------------------------------------
SERVICES - 0.3%
       ---------------------------------------------------------------------------------------------------------------------
       Protection One, Inc., 0%/13.625% Sr. Disc. Nts., 6/30/05                 (8)                  550,000        470,250
- ----------------------------------------------------------------------------------------------------------------------------
RETAIL - 2.7%
- ----------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 0.6%
       ---------------------------------------------------------------------------------------------------------------------
       Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03                                      630,000        652,050
       ---------------------------------------------------------------------------------------------------------------------
       Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03                                           300,000        301,500
                                                                                                                ------------
                                                                                                                    953,550
- ----------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS - 2.1%
       ---------------------------------------------------------------------------------------------------------------------
       Grand Union Co., 12% Sr. Nts., 9/1/04                                                       1,000,000        938,750
       ---------------------------------------------------------------------------------------------------------------------
       Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03                                      564,400        568,633
       ---------------------------------------------------------------------------------------------------------------------
       Penn Traffic Co.:
       10.25% Sr. Nts., 2/15/02                                                                      400,000        366,000
       11.50% Sr. Nts., 4/15/06                                                                      450,000        419,625
       ---------------------------------------------------------------------------------------------------------------------
       Ralph's Grocery Co.:
       10.45% Sr. Nts., 6/15/04                                                                      300,000        288,750
       10.45% Sr. Nts., 6/15/04                                                 (4)                  750,000        721,875
                                                                                                                ------------
                                                                                                                  3,303,633
- ----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.9%
- ----------------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.5%
       ---------------------------------------------------------------------------------------------------------------------
       Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02                                    750,000        819,375
</TABLE>

                                       10
<PAGE>   28

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                               PRINCIPAL      MARKET VALUE
                                                                                               AMOUNT(1)      (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
RAILROADS - 1.0%
       --------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                   <C>           <C>          
       Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr.              
       Disc. Nts., Series B, 12/15/03                                           (8)            $ 2,200,000   $   1,518,000
- ---------------------------------------------------------------------------------------------------------------------------
SHIPPING - 0.4%
       --------------------------------------------------------------------------------------------------------------------
       Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04                                   600,000         621,000
- ---------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.4%
- ---------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.7%
       --------------------------------------------------------------------------------------------------------------------
       California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04                 (8)              1,000,000         980,000
       --------------------------------------------------------------------------------------------------------------------
       El Paso Electric Co., 9.40% First Mtg. Bonds, Series E,                                   
       5/1/11                                                                                    1,000,000         997,500   
       --------------------------------------------------------------------------------------------------------------------
       First PV Funding Corp.:
       10.15% Lease Obligation Bonds, Series 1986B, 1/15/16                                        500,000         526,250
       10.30% Lease Obligation Bonds, Series 1986A, 1/15/14                                      1,000,000       1,052,500
       --------------------------------------------------------------------------------------------------------------------
       Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08                                            646,551         653,017
                                                                                                              -------------
                                                                                                                 4,209,267
- ---------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 13.7%
       --------------------------------------------------------------------------------------------------------------------
       A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05                                          1,025,000       1,066,000
       --------------------------------------------------------------------------------------------------------------------
       American Communications Services, Inc.:
       0%/12.75% Sr. Disc. Nts., 4/1/06                                         (8)                600,000         315,000
       0%/13% Sr. Disc. Nts., 11/1/05                                           (8)                500,000         280,000
       --------------------------------------------------------------------------------------------------------------------
       Arch Communications Group, Inc., 0%/10.875% Sr. Disc. Nts.,              
       3/15/08                                                                  (8)                100,000          52,000
       --------------------------------------------------------------------------------------------------------------------
       Brooks Fiber Properties, Inc., 0%/10.875% Sr. Disc. Nts.,             
       3/1/06                                                                (4)(8)                250,000         134,375
       --------------------------------------------------------------------------------------------------------------------
       Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04                           (8)              1,500,000       1,233,750
       --------------------------------------------------------------------------------------------------------------------
       CellNet Data Systems, Inc., 0%/13% Sr. Disc. Nts., 6/15/05            (4)(8)                600,000         429,000
       --------------------------------------------------------------------------------------------------------------------
       Cellular Communications International, Inc., Zero Coupon Sr.             
       Disc. Nts., 12.215%, 8/15/00                                             (7)              2,920,000       1,825,000
       --------------------------------------------------------------------------------------------------------------------
       Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03                    (8)              2,000,000       1,570,000
       --------------------------------------------------------------------------------------------------------------------
       Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.185%,              
       3/5/00                                                                   (7)                500,000         345,000
       --------------------------------------------------------------------------------------------------------------------
       Comunicacion Celular SA, 0%/13.125% Sr. Deferred Coupon                  
       Bonds, 11/15/03                                                          (8)                750,000         483,750
       --------------------------------------------------------------------------------------------------------------------
       Geotek Communications, Inc., 0%/15% Sr. Sec. Disc. Nts.,                 
       7/15/05                                                                  (8)              1,750,000       1,115,625
       --------------------------------------------------------------------------------------------------------------------
       GST Telecommunications, Inc., 0%/13.875% Cv. Sr. Sub. Disc.           
       Nts., 12/15/05                                                        (4)(8)                178,000         176,443
       --------------------------------------------------------------------------------------------------------------------
       GST USA, Inc., 0%/13.875% Bonds, 12/15/05                                (8)              1,499,000         869,420
       --------------------------------------------------------------------------------------------------------------------
       Horizon Cellular Telephone LP/Horizon Finance Corp.,                     
       0%/11.375% Sr. Sub. Disc. Nts., 10/1/00                                  (8)              2,250,000       2,120,625
       --------------------------------------------------------------------------------------------------------------------
       Hyperion Telecommunications, Inc., Units (each unit
       consists of $1,000 principal amount of 0%/13% sr. disc.
       nts., 4/15/03 and one warrant to purchase 1.8645 shares
       of common stock)                                                  (4)(8)(10)                250,000         141,250
       --------------------------------------------------------------------------------------------------------------------
       In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02                    (8)                500,000         178,750
       --------------------------------------------------------------------------------------------------------------------
       IntelCom Group (USA), Inc.:
       0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06                                 (4)(8)                735,000         402,413
       0%/13.50% Sr. Disc. Nts., 9/15/05                                        (8)              2,050,000       1,235,125
       --------------------------------------------------------------------------------------------------------------------
       InterCel, Inc., 0%/12% Sr. Disc. Nts., 5/1/06                            (8)                500,000         275,000
</TABLE>

                                       11

<PAGE>   29


OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                  PRINCIPAL     MARKET VALUE
                                                                                                  AMOUNT(1)     (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (CONTINUED)
       -----------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                 <C>              <C>    
       MFS Communications Co., Inc.:
       0%/8.875% Sr. Disc. Nts., 1/15/06                                        (8)            $     150,000   $       91,125
       0%/9.375% Sr. Disc. Nts., 1/15/04                                        (8)                1,650,000        1,254,000
       -----------------------------------------------------------------------------------------------------------------------
       Occidente y Caribe Celular SA, Units (each unit consists of       (4)(8)(10)                  300,000          155,250
       $1,000 principal amount of 0%/14% sr. disc. nts., 3/15/04
       and one warrant to purchase 5.709 ordinary shares)
       -----------------------------------------------------------------------------------------------------------------------
       Petersburg Long Distance, Inc.:
       9% Cv. Sub. Nts., 6/1/06                                                 (4)                  170,000          200,600
       Units (each unit consists of $1,000 principal amount of           (4)(8)(10)                  850,000          671,500
       0%/14% sr. disc. nts., 6/1/04 and one warrant to purchase 34
       ordinary shares)
       -----------------------------------------------------------------------------------------------------------------------
       PriCellular Wireless Corp.:
       0%/12.25% Sr. Sub. Disc. Nts., 10/1/03                                   (8)                  750,000          596,250
       0%/14% Sr. Sub. Disc. Nts., 11/15/01                                     (8)                2,000,000        1,820,000
       -----------------------------------------------------------------------------------------------------------------------
       Teleport Communications Group, Inc., 0%/11.125% Sr. Disc.             (5)(8)                1,750,000        1,019,375
       Nts., 7/1/07
       -----------------------------------------------------------------------------------------------------------------------
       Western Wireless Corp., 10.50% Sr. Sub. Nts., 6/1/06                                        1,200,000        1,201,500
                                                                                                                 -------------
                                                                                                                   21,258,126
                                                                                                                 -------------
       Total Corporate Bonds and Notes (Cost $95,470,094)                                                          98,254,670
</TABLE>

<TABLE>
<CAPTION>
                                                                                               SHARES
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 3.0%
- -------------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                 <C>              <C>    
       American Communications Services, Inc.                                  (12)                2,700                35,100
       ------------------------------------------------------------------------------------------------------------------------
       Australis Media Ltd.                                                 (3)(12)              100,000                33,843
       ------------------------------------------------------------------------------------------------------------------------
       Berg Electronics Corp.                                               (3)(12)               11,246               253,738
       ------------------------------------------------------------------------------------------------------------------------
       Celcaribe SA                                                         (4)(12)              203,250               345,525
       ------------------------------------------------------------------------------------------------------------------------
       EchoStar Communications Corp., Cl. A                                    (12)                2,700                76,275
       ------------------------------------------------------------------------------------------------------------------------
       ECM Fund, L.P.I.                                                         (3)                  150               150,000
       ------------------------------------------------------------------------------------------------------------------------
       El Paso Electric Co.                                                    (12)               42,384               254,304
       ------------------------------------------------------------------------------------------------------------------------
       Equitable Bag, Inc.                                                  (3)(12)                3,723                 9,307
       ------------------------------------------------------------------------------------------------------------------------
       Gillett Holdings, Inc.                                               (3)(12)               22,355               670,650
       ------------------------------------------------------------------------------------------------------------------------
       Grand Union Co.                                                         (12)               26,511               172,321
       ------------------------------------------------------------------------------------------------------------------------
       GST Telecommunications, Inc.                                            (12)               37,800               496,125
       ------------------------------------------------------------------------------------------------------------------------
       Gulfstream Holding, Inc.                                                (12)                   56                 --
       ------------------------------------------------------------------------------------------------------------------------
       Gulfstream Housing Corp.                                                (12)               27,850                 --
       ------------------------------------------------------------------------------------------------------------------------
       IntelCom Group, Inc.                                                    (12)                3,000                75,000
       ------------------------------------------------------------------------------------------------------------------------
       J. Ray McDermott, SA                                                    (12)               10,965               274,125
       ------------------------------------------------------------------------------------------------------------------------
       Kash 'N Karry Food Stores, Inc.                                         (12)                6,292               163,592
       ------------------------------------------------------------------------------------------------------------------------
       New World Communications Group, Inc., Cl. B                             (12)                2,093                30,610
       ------------------------------------------------------------------------------------------------------------------------
       Omnipoint Corp.                                                      (3)(12)               46,875             1,157,813
       ------------------------------------------------------------------------------------------------------------------------
       Teleport Communications Group, Inc., Cl. A                              (12)                4,300                82,238
       ------------------------------------------------------------------------------------------------------------------------
       Triangle Wire & Cable, Inc.                                          (3)(12)               21,111                21,111
       ------------------------------------------------------------------------------------------------------------------------
       Walter Industries, Inc.                                                 (12)               23,455               331,302
                                                                                                                 --------------
       Total Common Stocks (Cost $3,483,076)                                                                         4,632,979
</TABLE>

                                       12
<PAGE>   30


OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                MARKET VALUE
                                                                                               SHARES             (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 5.6%
- -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>            <C>                   <C>    
       BankAmerica Corp., 8.375%, Series K                                                     13,000            $   331,500
       ----------------------------------------------------------------------------------------------------------------------
       Cablevision Systems Corp., 8.50% Cum. Cv., Series I                                     25,000                650,000
       ----------------------------------------------------------------------------------------------------------------------
       California Federal Bank, 10.625% Non-Cum., Series B                                      7,000                766,500
       ----------------------------------------------------------------------------------------------------------------------
       Earthwatch, Inc., 12% Cv. Sr. Preferred Stock, Series C              (4)(13)            90,000                931,500
       ----------------------------------------------------------------------------------------------------------------------
       El Paso Electric Co., 11.40% Series A Preferred Stock                   (13)             2,950                309,750
       ----------------------------------------------------------------------------------------------------------------------
       Fidelity Federal Bank, 12% Non-Cum. Exchangeable Perpetual                              20,000                550,000
       Preferred Stock, Series A
       ----------------------------------------------------------------------------------------------------------------------
       First Nationwide Bank, 11.50% Non-Cum.                                                   8,500                930,750
       ----------------------------------------------------------------------------------------------------------------------
       Glendale Federal Bank, F.S.B., 8.75% Non-Cum. Cv., Series E                             16,500                792,000
       ----------------------------------------------------------------------------------------------------------------------
       K-III Communications Corp., $11.625 Exchangeable,
       Series B                                                                (13)             7,954                801,380
       ----------------------------------------------------------------------------------------------------------------------
       Kelley Oil & Gas Corp., $2.625 Cv.                                                       4,000                 89,000
       ----------------------------------------------------------------------------------------------------------------------
       Navistar International Corp., $6.00 Cv., Series G                                        2,500                139,062
       ----------------------------------------------------------------------------------------------------------------------
       Pantry Pride, Inc., $14.875 Exchangeable, Series B                                       2,000                200,500
       ----------------------------------------------------------------------------------------------------------------------
       Prime Retail, Inc., $19.00 Cv., Series B                                                17,000                306,000
       ----------------------------------------------------------------------------------------------------------------------
       SDW Holdings Corp., 15% Cum. Sr. Exchangeable Preferred Stock        (4)(12)            37,500              1,181,250
       ----------------------------------------------------------------------------------------------------------------------
       Walden Residential Properties, Inc., 9.16% Cv., Series A                                30,000                742,500
                                                                                                                  ----------
       Total Preferred Stocks (Cost $7,952,366)                                                                    8,721,692
</TABLE>

<TABLE>
<CAPTION>
                                                                                               UNITS
- -----------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.9%
- -----------------------------------------------------------------------------------------------------------------------------
       American Communications Services, Inc. Wts., Exp. 11/05                  (4)                300                30,000
       ----------------------------------------------------------------------------------------------------------------------
       American Telecasting, Inc. Wts., Exp. 6/99                                                6,000                36,000
       ----------------------------------------------------------------------------------------------------------------------
       Ames Department Stores, Inc.:
<S>                                                                         <C>             <C>                    <C>
       Excess Cash Flow Payment Certificates, Series AG-7A                      (3)             12,400                   124
       Litigation Trust                                                         (3)             39,658                   397
       ----------------------------------------------------------------------------------------------------------------------
       Capital Gaming International, Inc. Wts., Exp. 2/99                                       21,112                 1,056
       ----------------------------------------------------------------------------------------------------------------------
       Casino America, Inc. Wts., Exp. 11/96                                                     1,631                   --
       ----------------------------------------------------------------------------------------------------------------------
       Cellular Communications International, Inc. Wts., Exp. 8/03                               2,920                43,800
       ----------------------------------------------------------------------------------------------------------------------
       Communication Cellular SA Wts., Exp. 11/03                               (4)                750                 3,750
       ----------------------------------------------------------------------------------------------------------------------
       Digicon, Inc. Wts., Exp. 7/96                                                             1,566                    49
       ----------------------------------------------------------------------------------------------------------------------
       Eye Care Centers of America, Inc. Wts., Exp. 10/03                       (4)                630                 3,150
       ----------------------------------------------------------------------------------------------------------------------
       Foamex LP/JPS Automotive Corp. Wts., Exp. 7/99                           (3)                500                 2,500
       ----------------------------------------------------------------------------------------------------------------------
       Gaylord Container Corp. Wts., Exp. 11/02                                                 14,410               112,578
       ----------------------------------------------------------------------------------------------------------------------
       Geotek Communications, Inc. Wts., Exp. 7/05                              (4)             52,500               367,500
       ----------------------------------------------------------------------------------------------------------------------
       Icon Health & Fitness, Inc. Wts., Exp. 11/99                             (4)                400                10,000
       ----------------------------------------------------------------------------------------------------------------------
       IHF Holdings, Inc. Wts., Exp. 3/99                                                          250                30,000
       ----------------------------------------------------------------------------------------------------------------------
       In-Flight Phone Corp. Wts., Exp. 8/02                                    (4)                950                   --
       ----------------------------------------------------------------------------------------------------------------------
       IntelCom Group, Inc. Wts., Exp. 9/05                                     (4)              5,940               114,345
       ----------------------------------------------------------------------------------------------------------------------
       Jewel Recovery LP, Participation Units of Limited Partners'                               2,360                   --
       Interest
       ----------------------------------------------------------------------------------------------------------------------
       Omnipoint Corp. Wts., Exp. 11/00                                                          7,500               185,250
       ----------------------------------------------------------------------------------------------------------------------
       People's Choice TV Corp. Wts., Exp. 6/00                                                    250                   250
       ----------------------------------------------------------------------------------------------------------------------
       Protection One, Inc. Wts.:
       Exp. 11/03                                                                               28,000               416,500
       Exp. 6/05                                                                                 1,600                20,400
</TABLE>

                                       13

<PAGE>   31

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                      MARKET VALUE
                                                                                               UNITS                  (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                            <C>       <C>       
RIGHTS, WARRANTS AND CERTIFICATES (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
       SDW Holdings Corp., Cl. B Wts., Exp. 12/06                               (4)                       3,750     $   48,750
       --------------------------------------------------------------------------------------------------------------------------
       Terex Corp. Rts., Exp. 7/96                                              (4)                         744             37
       --------------------------------------------------------------------------------------------------------------------------
       Trizec Corp. Wts., Exp. 7/99                                                                       3,970          3,343
       --------------------------------------------------------------------------------------------------------------------------
       UGI Corp. Wts., Exp. 3/98                                                                          6,000            300
       --------------------------------------------------------------------------------------------------------------------------
       United International Securities Ltd. Wts., Exp. 11/99                                              1,440         41,760
                                                                                                                     ----------

       Total Rights, Warrants and Certificates (Cost $305,906)                                                       1,471,839
</TABLE>

<TABLE>
<CAPTION>
                                                                                                   PRINCIPAL
                                                                                                   AMOUNT(1)
- -----------------------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS - 2.6%
- -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                   <C>             <C>    
       Bayerische Landesbank Girozentrale, New York Branch, 14% CD                                  $   250,000        250,400
       Linked Nts., 12/17/96 (indexed to the cross currency rates
       of Greek Drachma and European Currency Unit)
       ----------------------------------------------------------------------------------------------------------------------
       Bayerische Landesbank Girozentrale, New York Branch, 5.60%                           NZD         905,113        671,814
       CD Linked Nts., 1/30/97 (indexed to the closing Nikkei 225
       Index on 1/23/97, 10 yr. Japanese Yen swap rate & New
       Zealand Dollar on 1/28/97)
       -----------------------------------------------------------------------------------------------------------------------
       Goldman, Sachs & Co., Argentina Local Market Securities                  (3)                     695,652        645,218
       Trust, 11.30%, 4/1/00 [representing debt of Argentina
       (Republic of) Bonos del Tesoro Bonds, Series 10, 5.469%,
       4/1/00 and an interest rate swap between Goldman Sachs and
       the Trust]
       -----------------------------------------------------------------------------------------------------------------------
       Internationale Nederlanden Bank NV, Prague Branch, Zero                  (7)         CZK       8,600,000        287,394
       Coupon Promissory Nts., 10.488%, 4/28/97
       -----------------------------------------------------------------------------------------------------------------------
       Internationale Nederlanden (U.S.) Capital Holdings Corp.,                (7)                     420,000        372,330
       Zero Coupon Chilean Peso Linked Nts.,  Zero Coupon, 11.813%,
       6/23/97
       -----------------------------------------------------------------------------------------------------------------------
       Internationale Nederlanden (U.S.) Capital Holdings Corp.,                (7)                     350,000        312,515
       Zero Coupon Czech Crown Linked Nts., 11.911%, 6/26/97
       -----------------------------------------------------------------------------------------------------------------------
       Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked              (7)                     800,000        754,160
       Nts., 12.638%, 1/3/97 (indexed to the Brazilian National
       Treasury Nts., Zero Coupon, 12.638, 1/2/97)
       -----------------------------------------------------------------------------------------------------------------------
       Swiss Bank Corp., New York Branch, 6.05% CD Linked Nts.,                                         450,000        454,568
       6/20/97 (indexed to the closing Nikkei 225 Index on 1/23/97
       5 yr. & 3 mos. Japanese Yen Swap rate & New Zealand Dollar)
       -----------------------------------------------------------------------------------------------------------------------
       United Mexican States Linked Nts. (indexed to the greater of                                     300,000        348,000
                                                                                                                    ----------
       Cetes Option Amount or USD LIBOR Option Amount, 11/27/96)

       Total Structured Instruments (Cost $4,022,363)                                                                4,096,399
</TABLE>

                                       14
<PAGE>   32





OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                   PRINCIPAL      MARKET VALUE
                                                                                                   AMOUNT(1)      (NOTE 1)
<S>                                                                                                <C>            <C>          
- --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 10.2%
- --------------------------------------------------------------------------------------------------------------------------------
       Repurchase agreement with Canadian Imperial Bank of Commerce,
       5.45%, dated 6/28/96, to be repurchased at $15,807,176 on 7/1/96,
       collateralized by U.S. Treasury Bonds, 9.125%-11.25%, 2/15/15-5/11/18,
       with a value of $5,585,108, and U.S. Treasury Nts., 5.25%-8.50%,
       1/11/97-11/15/04, with a value of $10,555,109 (Cost $15,800,000)                            $ 15,800,000   $  15,800,000
       -------------------------------------------------------------------------------------------------------------------------
       TOTAL INVESTMENTS, AT VALUE (COST $149,958,141)                                                   100.6%     156,651,526
       -------------------------------------------------------------------------------------------------------------------------
       LIABILITIES IN EXCESS OF OTHER ASSETS                                                              (0.6)        (944,376)
                                                                                                    ------------    ------------
       NET ASSETS                                                                                        100.0%   $ 155,707,150
                                                                                                    ============  ==============
</TABLE>

         1. Principal amount is reported in U.S. Dollars, except for those
         denoted in the following currencies:

         AUD - Australian Dollar           IEP - Irish Punt
         CAD - Canadian Dollar             ITL - Italian Lira
         CZK - Czech Koruna                JPY - Japanese Yen
         DEM - German Deutsche Mark        NZD - New Zealand Dollar
         DKK - Danish Krone                PLZ - Polish Zloty
         ESP - Spanish Peseta              PTE - Portuguese Escudo
         GBP - British Pound Sterling      SEK - Swedish Krona
         IDR - Indonesian Rupiah

         2. Represents the current interest rate for a variable rate security.

         3. Identifies issues considered to be illiquid - See applicable note of
         Notes to Financial Statements.

         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 $12,280,442 or
         7.89% of the Fund's net assets, at June 30, 1996.

         5. When-issued security to be delivered and settled after June 30,
         1996.

         6. Indexed instrument for which the principal amount and/or interest
         due at maturity is affected by the relative value of a foreign index.

         7. For zero coupon bonds, the interest rate shown is the effective
         yield on the date of purchase.

         8. Denotes a step bond: a zero coupon bond that converts to a fixed
         rate of interest at a designated future date.

         9. Non-income producing--issuer is in default of interest payment.

         10. 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.

         11. Represents the current interest rate for an increasing rate
         security.

         12. Non-income producing security.

         13. Interest or dividend is paid in kind.





                                       15
<PAGE>   33

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
       14.  A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:

                                                             CONTRACTS/
                                                             PRINCIPAL
                                                             SUBJECT       EXPIRATION     EXERCISE           PREMIUM    MARKET VALUE
                                                             TO CALL       DATE           PRICE              RECEIVED   (NOTE 1)
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>           <C>             <C>               <C>             <C>    
       Call option on Australian Dollar                      248,000       7/3/96          1.25 AUD          $ 1,885         $   198
       Call option on Czech Koruna                           280,000       9/6/96          28.357CZK           3,752           6,896
       Call option on Mexican Peso                           270,000       8/5/96          8.03MXP             7,263           9,611
       Call option on Morocco (Kingdom of) Loan                                                                             
       Participation Agreement, Tranche A,                                                                                  
       6.437%, 1/1/09                                        450,000      7/12/96          $71.25              4,275           5,536
                                                                                                             -------         -------
                                                                                                             $17,175         $22,241
                                                                                                             =======         =======
</TABLE>

See accompanying Notes to Financial Statements.

                                       16
<PAGE>   34
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 26.4%
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY - 21.0%
- ------------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED - 16.9%
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>         <C>                     <C>    
       Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg. Participation                  $          5,188,488    $    4,997,967
       Certificates, 7%, 4/1/26
       -----------------------------------------------------------------------------------------------------------------------------
       Federal National Mortgage Assn.:
       6.50%, 3/1/11-5/1/11                                                                            25,017,373        24,211,064
       7%, 4/1/04-11/1/25                                                                              10,090,581         9,725,799
       7.50%, 1/1/08-1/1/26                                                                             5,457,662         5,398,311
       8%, 5/1/17                                                                                         625,038           636,345
       Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment                                
       Conduit Pass-Through Certificates, 8.75%, 11/25/05                                               3,000,000         3,123,750
       Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,                              
       10.40%, 4/25/19                                                                                  1,793,536         1,914,026
       Interest-Only Stripped Mtg.-Backed Security:
       Trust 218, Cl. 2, 12.588%-13.20%, 4/1/23                                     (2)                 7,725,412         2,569,907
       Trust 257, Cl. 2, 11.448%-15.373%, 2/1/24                                    (2)                 3,529,536         1,219,897
                                                                                                                     ---------------
                                                                                                                         53,797,066
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED - 4.1%
       -----------------------------------------------------------------------------------------------------------------------------
       Government National Mortgage Assn.:
       6%, 10/20/25                                                                                     4,842,429         4,863,639
       7%, 1/15/09-10/20/24                                                                             8,199,401         8,049,413
                                                                                                                     ---------------
                                                                                                                         12,913,052
- ------------------------------------------------------------------------------------------------------------------------------------
PRIVATE - 5.4%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL - 3.8%
       -----------------------------------------------------------------------------------------------------------------------------
       FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass-Through 
       Certificates, Series 1994-C1:
       Cl. 2-D, 8.70%, 9/25/25                                                      (3)                 1,500,000         1,549,688
       Cl. 2-E, 8.70%, 9/25/25                                                      (3)                 1,500,000         1,537,031
       -----------------------------------------------------------------------------------------------------------------------------
       Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through                    (4)                   964,447           967,160
       Certificates, Series 1995-C2, Cl. C, 7.906%, 6/15/21
       -----------------------------------------------------------------------------------------------------------------------------
       Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through 
       Certificates, Series 1996-C1, Cl. D-1, 7.51%,
       2/1/28                                                                    (3)(4)                 1,000,000           951,250
       -----------------------------------------------------------------------------------------------------------------------------
       Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
       Series 1992-CHF, Cl. C, 8.25%, 12/25/20                                                          1,030,504         1,041,936
       Series 1994-C1, Cl. C, 8%, 6/25/26                                                               1,500,000         1,505,625
       Series 1995-C1, Cl. D, 6.90%, 2/25/27                                                            3,000,000         2,725,313
       -----------------------------------------------------------------------------------------------------------------------------
       Structured Asset Securities Corp., Multiclass Pass-Through
       Certificates, Series 1996-CFL, Cl. D, 7.034%, 2/25/28                                            1,800,000         1,713,375
                                                                                                                     ---------------
                                                                                                                         11,991,378
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURED HOUSING - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       Green Tree Financial Corp., Series 1994-6, Cl. A3, 7.70%, 1/15/20                                  738,000           750,679
</TABLE>

                                       17
<PAGE>   35


OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY - 1.1%
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>         <C>                     <C>           
       Countrywide Funding Corp., Series 1993-12, Cl. B1, 6.625%, 2/25/24                    $          1,000,000    $      875,547
       -----------------------------------------------------------------------------------------------------------------------------
       Merrill Lynch Trust, Collateralized Mtg. Obligations, Gtd.                                         
       Multiclass Mtg. Participation Certificates, Series 43, Cl. E, 6.50%,
       8/27/15                                                                                            500,000           471,715
       -----------------------------------------------------------------------------------------------------------------------------
       Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,                               2,092,478         2,152,637
       Series 1991-M5, Cl. A, 9%, 3/25/17                                                                            ---------------
                                                                                                                          3,499,899
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER - 0.0%
       -----------------------------------------------------------------------------------------------------------------------------
       Salomon Brothers Mortgage Securities VI:
       Interest-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. B,           (2)                   108,078            27,898
       9.549%, 10/23/17
       Principal-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. A,          (5)                   159,996           106,198
       9.489%, 10/23/17                                                                                              ---------------
                                                                                                                            134,096
- ------------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL - 0.3%
       -----------------------------------------------------------------------------------------------------------------------------
       Contimortgage Home Equity Loan Trust, Series 1995-2, Cl. A2, 7.95%,                               
       4/15/10                                                                                            554,000           559,367
       -----------------------------------------------------------------------------------------------------------------------------
       Ryland Mortgage Securities Corp. III, Sub. Bonds, Series 1992-A, Cl.         (4)                   293,427           291,502
       1A, 7.17%, 3/29/30                                                                                            ---------------
                                                                                                                            850,869
                                                                                                                     ---------------

       Total Mortgage-Backed Obligations (Cost $83,636,632)                                                              83,937,039
                                                                                                                      
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 31.5%
- ------------------------------------------------------------------------------------------------------------------------------------
TREASURY - 31.5%
- ------------------------------------------------------------------------------------------------------------------------------------
       U.S. Treasury Bonds:
       10.375%, 11/15/12                                                                                  365,000           463,550
       6.875%, 8/15/25                                                              (6)                 3,500,000         3,463,904
       7.125%, 2/15/23                                                                                  3,000,000         3,030,936
       7.50%, 11/15/16                                                                                  6,780,000         7,123,237
       8%, 11/15/21                                                                                     5,000,000         5,565,625
       8.125%, 8/15/19                                                                                  2,060,000         2,311,062
       8.875%, 8/15/17                                                                                    740,000           888,231
       9.25%, 2/15/16                                                                                     740,000           915,518
       STRIPS, Zero Coupon, 7.329%, 5/15/15                                         (7)                 1,107,000           292,936
       STRIPS, Zero Coupon, 7.341%, 8/15/14                                         (7)                 3,690,000         1,031,118
       -----------------------------------------------------------------------------------------------------------------------------
       U.S. Treasury Nts.:
       5.875%, 11/15/05                                                                                 3,000,000         2,826,561
       6%, 12/31/97                                                                                     3,000,000         3,000,936
       6.375%, 6/30/97                                                                                  1,000,000         1,005,625
       6.50%, 5/15/05-8/15/05                                                                          18,000,000        17,740,305
       6.75%, 6/30/99                                                                                  16,340,000        16,539,134
       7.25%, 5/15/04-8/15/04                                                                          11,980,000        12,406,787
       7.375%, 11/15/97                                                                                 2,000,000         2,035,626
       7.50%, 11/15/01-2/15/05                                                                         12,486,000        13,115,585
       7.75%, 12/31/99                                                                                  2,000,000         2,085,000
</TABLE>

                                       18
<PAGE>   36

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>         <C>                     <C>           
       U.S. Treasury Nts. (Continued)
       7.875%, 11/15/04                                                                      $          2,000,000    $    2,150,624
       9.25%, 8/15/98                                                                                   2,000,000         2,120,624
                                                                                                                     ---------------

       Total U.S. Government Obligations (Cost $99,580,053)                                                             100,112,924
                                                                                                                       
- ------------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 14.2%
- ------------------------------------------------------------------------------------------------------------------------------------
       Bonos de la Tesoreria de la Federacion, Zero Coupon, 37.779%, 3/6/97         (7) MXP             5,300,000           567,987
       -----------------------------------------------------------------------------------------------------------------------------
       Canada (Government of) Real Return Debs., 4.517%, 12/1/21                    (8) CAD             3,390,000         2,443,167
       -----------------------------------------------------------------------------------------------------------------------------
       CEZ AS, Zero Coupon Disc. Promissory Nts., 10.762%, 7/1/96                   (7) CZK            14,000,000           508,534
       -----------------------------------------------------------------------------------------------------------------------------
       Corporacion Andina de Fomento Sr. Unsec. Debs.:
       6.625%, 10/14/98                                                             (3)                 1,000,000           998,125
       7.25%, 4/30/98                                                               (3)                 1,000,000         1,004,688
       -----------------------------------------------------------------------------------------------------------------------------
       Denmark (Kingdom of) Bonds:
       8%, 3/15/06                                                                      DKK            17,000,000         3,014,340
       8%, 5/15/03                                                                      DKK            22,140,000         3,995,567
       -----------------------------------------------------------------------------------------------------------------------------
       Financiera Energetica Nacional SA, 9.375% Eurobonds, 6/15/06                 (3)                 2,350,000         2,355,875
       -----------------------------------------------------------------------------------------------------------------------------
       Germany (Republic of) Bonds:
       7.375%, 12/2/02                                                                  DEM             1,250,000           875,495
       8.25%, 9/20/01                                                                   DEM             1,950,000         1,424,830
       -----------------------------------------------------------------------------------------------------------------------------
       Italy (Republic of) Certificati di Credito del Tesoro Nts., 11.20%,          (4) ITL         2,835,000,000         1,893,759
       8/1/00
       -----------------------------------------------------------------------------------------------------------------------------
       National Treasury Management Agency (Irish Government) Bonds, 8%,                IEP             1,495,000         2,493,462
       10/18/00
       -----------------------------------------------------------------------------------------------------------------------------
       New South Wales Treasury Corp. Gtd. Bonds, 12%, 12/1/01                          AUD             3,490,000         3,120,520
       -----------------------------------------------------------------------------------------------------------------------------
       New Zealand (Republic of) Bonds, 8%, 2/15/01                                     NZD             2,760,000         1,817,748
       -----------------------------------------------------------------------------------------------------------------------------
       Ontario, Canada (Province of) Bonds, 8%, 10/17/01                                                  554,000           584,492
       -----------------------------------------------------------------------------------------------------------------------------
       Poland (Republic of):
       Disc. Bonds, 6.437%, 10/27/24                                                (4)                 5,250,000         4,935,000
       Treasury Bills, Zero Coupon:
       21.658%, 10/2/96                                                             (7) PLZ               720,000           251,334
       21.466%, 12/4/96                                                             (7) PLZ             2,250,000           759,038
       20.371%, 3/19/97                                                             (7) PLZ               800,000           255,785
       22.37%, 7/24/96                                                              (7) PLZ             3,000,000         1,088,816
       -----------------------------------------------------------------------------------------------------------------------------
       Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio Prazo,                PTE            65,000,000           464,182
       11.875%, 2/23/00
       -----------------------------------------------------------------------------------------------------------------------------
       South Africa (Republic of) Debs., 9.625%, 12/15/99                                               1,000,000         1,046,250
       -----------------------------------------------------------------------------------------------------------------------------
       Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado,                    ESP           100,000,000           884,090
       12.25%, 3/25/00
       -----------------------------------------------------------------------------------------------------------------------------
       Sweden (Kingdom of) Bonds, Series 1030, 13%, 6/15/01                             SEK            12,600,000         2,321,861
       -----------------------------------------------------------------------------------------------------------------------------
       United Kingdom Treasury Nts.:
       13%, 7/14/00                                                                     GBP             1,630,000         3,040,818
       7.50%, 12/7/06                                                                   GBP             2,000,000         3,020,201
                                                                                                                       -------------
       Total Foreign Government Obligations (Cost $44,880,690)                                                           45,165,964
</TABLE>

                                       19
<PAGE>   37

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>         <C>                     <C>           
       Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds,          
       6.563%, 7/1/01 (Cost $1,457,891)                                          (4)(9)      $          1,571,600    $    1,465,517
                                                                                                                        
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
       Dade County, Florida Educational Facilities Authority:
       Exchangeable Revenue Bonds, University of Miami, Prerefunded, MBIA                                 
       Insured, 7.65%, 4/1/10                                                                             175,000           196,550
       Revenue Bonds, University of Miami, MBIA Insured, 7.65%, 4/1/10                                    205,000           225,008
       Taxable Exchange Revenue Bonds, University of Miami, MBIA Insured,                                 
       9.70%, 4/1/10                                                                                      120,000           131,712
       -----------------------------------------------------------------------------------------------------------------------------
       Pinole, California Redevelopment Agency Tax Allocation Taxable                                     
       Bonds, Pinole Vista Redevelopment, Series B, 8.35%, 8/1/17                                         670,000           675,954
       -----------------------------------------------------------------------------------------------------------------------------
       Port of Portland, Oregon Special Obligation Taxable Revenue Bonds,                                 
       PAMCO Project, 9.20%, 5/15/22                                                                      500,000           537,055
                                                                                                                     ---------------

       Total Municipal Bonds and Notes (Cost $1,663,889)                                                                  1,766,279
                                                                                                                        
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - 16.7%
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.0%
       -----------------------------------------------------------------------------------------------------------------------------
       Lyondell Petrochemical Co., 8.25% Nts., 3/15/97                                                    738,000           748,040
       -----------------------------------------------------------------------------------------------------------------------------
       Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03                                          2,100,000         2,305,911
                                                                                                                     ---------------
                                                                                                                          3,053,951
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER - 1.1%
       -----------------------------------------------------------------------------------------------------------------------------
       Boise Cascade Corp., 9.90% Nts., 3/15/00                                                           750,000           817,223
       -----------------------------------------------------------------------------------------------------------------------------
       Noranda Forest, Inc., 11% Debs., 7/15/98                                         CAD             1,000,000           792,138
       -----------------------------------------------------------------------------------------------------------------------------
       Potlatch Corp., 9.46% Medium-Term Nts., 4/2/02                                                     369,000           409,524
       -----------------------------------------------------------------------------------------------------------------------------
       Scotia Pacific Holding Co., 7.95% Timber Collateralized Nts., 7/20/15                            1,508,981         1,484,643
                                                                                                                     ---------------
                                                                                                                          3,503,528
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 2.4%
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS - 0.7%
       -----------------------------------------------------------------------------------------------------------------------------
       Fletcher Challenge Capital Canada, Inc., 7.75% Nts.,
       6/20/06                                                                                          1,800,000         1,827,324
       -----------------------------------------------------------------------------------------------------------------------------
       Procter & Gamble Co., 9.36% Debs., 1/1/21                                                          369,000           441,729
                                                                                                                     ---------------
                                                                                                                          2,269,053
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.4%
       -----------------------------------------------------------------------------------------------------------------------------
       Bass America, Inc., 6.75% Gtd. Nts., 8/1/99                                                        554,000           555,700
       -----------------------------------------------------------------------------------------------------------------------------
       Philip Morris Cos., Inc., 8.875% Nts., 7/1/96                                                      500,000           500,000
       -----------------------------------------------------------------------------------------------------------------------------
       Unilever CR spol. s.r.o., guaranteed by Unilever NV, Rotterdam, The          
       Netherlands, Zero Coupon Promissory Nts., 11.189%, 10/11/96                  (7) CZK             7,000,000           246,639
                                                                                                                     ---------------
                                                                                                                          1,302,339
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 0.6%
       -----------------------------------------------------------------------------------------------------------------------------
       R.P. Scherer Corp., 6.75% Sr. Nts., 2/1/04                                                       1,250,000         1,195,314
</TABLE>

                                       20
<PAGE>   38

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>                     <C>           
       Roche Holdings, Inc., 2.75% Bonds, 4/14/00                                            $            920,000    $      811,325
                                                                                                                     ---------------
                                                                                                                          2,006,639
- ------------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING - 0.1%
       -----------------------------------------------------------------------------------------------------------------------------
       Circus Circus Enterprises, Inc., 6.75% Nts., 7/15/03                                               375,000           363,378
- ------------------------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL - 0.3%
       -----------------------------------------------------------------------------------------------------------------------------
       Fruit of the Loom, Inc., 7% Debs., 3/15/11                                                       1,097,000           985,410
- ------------------------------------------------------------------------------------------------------------------------------------
TOYS - 0.3%
       -----------------------------------------------------------------------------------------------------------------------------
       Mattel, Inc., 6.875% Sr. Nts., 8/1/97                                                            1,000,000         1,006,052
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
       BP America, Inc., 10.875% Nts., 8/1/01                                           CAD               650,000           540,231
       -----------------------------------------------------------------------------------------------------------------------------
       Coastal Corp.:
       8.75% Sr. Nts., 5/15/99                                                                            369,000           388,071
       9.75% Sr. Debs., 8/1/03                                                                            200,000           225,716
       -----------------------------------------------------------------------------------------------------------------------------
       Colorado International Gas Corp., 10% Sr. Debs., 6/15/05                                           369,000           431,634
       -----------------------------------------------------------------------------------------------------------------------------
       Enron Corp., 9.875% Debs., 6/15/03                                                                 375,000           429,130
       -----------------------------------------------------------------------------------------------------------------------------
       McDermott, Inc., 9.375% Nts., 3/15/02                                                              400,000           426,047
       -----------------------------------------------------------------------------------------------------------------------------
       Mitchell Energy & Development Corp., 9.25% Sr. Nts., 1/15/02                                     1,000,000         1,027,077
       -----------------------------------------------------------------------------------------------------------------------------
       Norsk Hydro AS, 8.75% Bonds, 10/23/01                                                              738,000           784,125
       -----------------------------------------------------------------------------------------------------------------------------
       Sonat, Inc., 9.50% Nts., 8/15/99                                                                   250,000           268,589
       -----------------------------------------------------------------------------------------------------------------------------
       Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02                                                500,000           549,655
       -----------------------------------------------------------------------------------------------------------------------------
       Texaco Capital, Inc., 8.875% Gtd. Debs., 9/1/21                                                    369,000           421,875
       -----------------------------------------------------------------------------------------------------------------------------
       TransCanada PipeLines Ltd., 9.875% Debs., 1/1/21                                                   554,000           680,090
                                                                                                                     ---------------
                                                                                                                          6,172,240
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 1.1%
       -----------------------------------------------------------------------------------------------------------------------------
       Banco Ganadero SA, 9.75% Sr. Unsub. Unsec. Nts., 8/26/99                     (3)                   185,000           190,781
       -----------------------------------------------------------------------------------------------------------------------------
       BankAmerica Corp.:
       7.50% Sr. Nts., 3/15/97                                                                            100,000           101,060
       7.75% Sub. Nts., 7/15/02                                                                           554,000           574,663
       -----------------------------------------------------------------------------------------------------------------------------
       Chase Manhattan Corp. (New), 10.125% Sub. Nts., 11/1/00                                            554,000           620,844
       -----------------------------------------------------------------------------------------------------------------------------
       First Chicago Corp.:
       11.25% Sub. Nts., 2/20/01                                                                          750,000           877,050
       9% Sub. Nts., 6/15/99                                                                              150,000           159,482
       -----------------------------------------------------------------------------------------------------------------------------
       First Fidelity Bancorporation, 8.50% Sub. Capital Nts., 4/1/98                                     654,000           675,462
                                                                                                                     ---------------
                                                                                                                          3,199,342
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 2.4%
       -----------------------------------------------------------------------------------------------------------------------------
       Allied-Lyons Finance BV, 6.50% Debs., 8/26/97                                                      369,000           368,539
       -----------------------------------------------------------------------------------------------------------------------------
       American Car Line Co., 8.25% Equipment Trust Certificates, Series                                  
       1993-A, 4/15/08                                                                                    578,000           585,004
       -----------------------------------------------------------------------------------------------------------------------------
       American General Finance Corp., 5.875% Sr. Nts., 7/1/00                                            554,000           536,764
       -----------------------------------------------------------------------------------------------------------------------------
       Associates Corp. of North America, 8.625% Sr. Nts.,
       6/15/97                                                                                            369,000           377,618
       -----------------------------------------------------------------------------------------------------------------------------
       AVCO Financial Services Asia Ltd., 5.875% Sr. Nts., 10/15/97                                       369,000           367,643
       -----------------------------------------------------------------------------------------------------------------------------
       Caterpillar Financial Services, Inc., 6.85% Medium-Term Nts., Series                               369,000           372,310
       D, 9/15/97
</TABLE>

                                       21
<PAGE>   39

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL (CONTINUED)
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>                     <C>           
       Chrysler Financial Corp., 6.65% Medium-Term Nts.,
       4/28/97                                                                               $            369,000    $      370,506
       -----------------------------------------------------------------------------------------------------------------------------
       Countrywide Funding Corp., 6.57% Gtd. Medium-Term Nts., Series A,                                  
       8/4/97                                                                                             554,000           556,366
       -----------------------------------------------------------------------------------------------------------------------------
       Fleet Mtg. Group, Inc., 6.50% Nts., 9/15/99                                                        369,000           366,900
       -----------------------------------------------------------------------------------------------------------------------------
       General Motors Acceptance Corp., 7.875% Medium-Term Nts., 2/27/97                                  369,000           373,702
       -----------------------------------------------------------------------------------------------------------------------------
       Golden West Financial Corp.:
       10.25% Sub. Nts., 5/15/97                                                                          369,000           381,747
       8.625% Sub. Nts., 8/30/98                                                                          185,000           192,463
       -----------------------------------------------------------------------------------------------------------------------------
       Household Finance Corp., 8.95% Debs., 9/15/99                                                      369,000           392,637
       -----------------------------------------------------------------------------------------------------------------------------
       Household International, BV, 6% Gtd. Sr. Nts., 3/15/99                                             369,000           362,139
       -----------------------------------------------------------------------------------------------------------------------------
       Lehman Brothers Holdings, Inc., 8.375% Nts., 2/15/99                                               700,000           726,461
       -----------------------------------------------------------------------------------------------------------------------------
       Penske Truck Leasing Co. LP, 7.75% Sr. Nts., 5/15/99                                               738,000           761,374
       -----------------------------------------------------------------------------------------------------------------------------
       U.S. Leasing International, 7% Nts., 11/1/97                                                       554,000           559,271
                                                                                                                     ---------------
                                                                                                                          7,651,444
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       SunAmerica, Inc., 9% Sr. Nts., 1/15/99                                                             554,000           581,652
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       British Aerospace PLC, 8% Debs., 5/27/97                                                           740,000           750,175
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE - 0.5%
       -----------------------------------------------------------------------------------------------------------------------------
       Chrysler Corp., 10.95% Debs., 8/1/17                                                               800,000           876,920
       -----------------------------------------------------------------------------------------------------------------------------
       General Motors Acceptance Corp., 7.75% Nts., 4/15/97                                               700,000           708,659
                                                                                                                     ---------------
                                                                                                                          1,585,579
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.8%
- ------------------------------------------------------------------------------------------------------------------------------------
BROADCASTING - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       Tele-Communications, Inc., 5.28% Medium-Term Nts., 8/20/96                                         701,000           700,546
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION - 1.3%
       -----------------------------------------------------------------------------------------------------------------------------
       Time Warner Entertainment LP/Time Warner, Inc., 8.375% Sr. Debs.,                                
       3/15/23                                                                                          1,850,000         1,801,214
       -----------------------------------------------------------------------------------------------------------------------------
       TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07                                                    2,200,000         2,449,365
                                                                                                                     ---------------
                                                                                                                          4,250,579
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA - 0.8%
       -----------------------------------------------------------------------------------------------------------------------------
       GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10                                 (3)                 1,142,150         1,286,062
       -----------------------------------------------------------------------------------------------------------------------------
       News America Holdings, Inc.:
       10.125% Sr. Gtd. Debs., 10/15/12                                                                   500,000           566,122
       12% Sr. Nts., 12/15/01                                                                             500,000           541,698
                                                                                                                     ---------------
                                                                                                                          2,393,882
- ------------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub. Nts., 2/1/98                                500,000           525,797
- ------------------------------------------------------------------------------------------------------------------------------------
PUBLISHING/PRINTING - 0.3%
       -----------------------------------------------------------------------------------------------------------------------------
       Reed Elsevier, Inc., 6.625% Nts., 10/15/23                                   (3)                   600,000           519,270
       -----------------------------------------------------------------------------------------------------------------------------
       Reed Publishing (USA), Inc., 7.24% Gtd. Medium-Term Nts., 2/10/97                                  500,000           503,640
                                                                                                                     ---------------
                                                                                                                          1,022,910
</TABLE>

                                       22
<PAGE>   40

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER - 0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 0.6%
       -----------------------------------------------------------------------------------------------------------------------------
       Tenneco, Inc.:
<S>                                                                                          <C>                     <C>           
       10% Debs., 3/15/08                                                                    $            400,000    $      472,077
       10% Debs., 8/1/98                                                                                  554,000           590,198
       7.875% Nts., 10/1/02                                                                               650,000           669,822
                                                                                                                     ---------------
                                                                                                                          1,732,097
- ------------------------------------------------------------------------------------------------------------------------------------
SERVICES - 0.1%
       -----------------------------------------------------------------------------------------------------------------------------
       PHH Corp., 6.50% Nts., 2/1/00                                                                      369,000           365,606
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL - 0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
DRUG STORES - 0.2%
       -----------------------------------------------------------------------------------------------------------------------------
       Hook-SupeRx, Inc., 10.125% Sr. Nts., 6/1/02                                                        600,000           641,269
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
RAILROADS - 0.1%
       -----------------------------------------------------------------------------------------------------------------------------
       Union Pacific Corp., 9.65% Medium-Term Nts., 4/17/00                                               400,000           435,511
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.7%
       -----------------------------------------------------------------------------------------------------------------------------
       Commonwealth Edison Co., 6.50% Nts., 7/15/97                                                       775,000           773,183
       -----------------------------------------------------------------------------------------------------------------------------
       HNG Internorth/Enron Corp., 9.625% Debs., 3/15/06                                                  369,000           419,709
       -----------------------------------------------------------------------------------------------------------------------------
       Long Island Lighting Co., 7% Nts., 3/1/04                                                          150,000           134,636
       -----------------------------------------------------------------------------------------------------------------------------
       Public Service Co. of Colorado, 8.75% First Mtg. Bonds, 3/1/22                                     750,000           792,497
                                                                                                                     ---------------
                                                                                                                          2,120,025
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.4%
       -----------------------------------------------------------------------------------------------------------------------------
       360 Communications Co.:
       7.125% Sr. Nts., 3/1/03                                                                          1,450,000         1,392,654
       7.50% Sr. Nts., 3/1/06                                                                           2,000,000         1,900,920
       -----------------------------------------------------------------------------------------------------------------------------
       GTE Corp.:
       8.85% Debs., 3/1/98                                                                                554,000           574,946
       9.375% Debs., 12/1/00                                                                              500,000           546,176
                                                                                                                     ---------------
                                                                                                                          4,414,696
                                                                                                                     ---------------

       Total Corporate Bonds and Notes (Cost $53,354,901)                                                                53,033,700
</TABLE>

                                                                                
<TABLE>
<CAPTION>
                                                                                             SHARES                    
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>                     <C>           
       BankAmerica Corp., 8.375%, Series K (Cost $1,177,404)                                               45,400         1,157,700

                                                                                             PRINCIPAL                 
                                                                                             AMOUNT(1)                 
- ------------------------------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS - 2.0%
- ------------------------------------------------------------------------------------------------------------------------------------
       -----------------------------------------------------------------------------------------------------------------------------
       Bayerische Landesbank Girozentrale, New York Branch, 14% CD Linked                    
       Nts., 12/17/96 (indexed to the cross currency rates of Greek Drachma
       and European Currency Unit)                                                           $          1,000,000         1,001,600
       -----------------------------------------------------------------------------------------------------------------------------
       Bayerische Landesbank Girozentrale, New York Branch, 5.60% CD Linked             
       Nts., 1/30/97 (indexed to the closing Nikkei 225 Index on 1/23/97,
       10 yr. Japanese Yen swap rate & New Zealand Dollar on 1/28/97)                   NZD             1,508,523         1,119,691
</TABLE>

                                       23
<PAGE>   41

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                             PRINCIPAL               MARKET VALUE
                                                                                             AMOUNT(1)               (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>                     <C>          
       Canadian Imperial Bank of Commerce, New York Branch, 14% CD Linked                    $            250,000    $     245,325
       Nts., 11/25/96 (indexed to the cross currency rates of Greek Drachma
       and European Currency Unit)
       ----------------------------------------------------------------------------------------------------------------------------
       Internationale Nederlanden Bank NV, Prague Branch, Zero Coupon              
       Promissory Nts., 10.488%, 4/28/97                                            (7) CZK            13,800,000          461,167
       ----------------------------------------------------------------------------------------------------------------------------
       Internationale Nederlanden (U.S.) Capital Holdings Corp., Zero Coupon 
       Chilean Peso Linked Nts.:
       11.813%, 6/23/97                                                             (7)                   900,000          797,850
       11.738%, 6/24/97                                                             (7)                   900,000          797,670
       ----------------------------------------------------------------------------------------------------------------------------
       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)                                        (9)                 1,000,000        1,138,200
       ----------------------------------------------------------------------------------------------------------------------------
       Swiss Bank Corp., New York Branch, 6.05% CD Linked Nts., 6/20/97                                  
       (indexed to the closing Nikkei 225 Index on 1/23/97 5 yr. & 3 mos.
       Japanese Yen Swap rate & New Zealand Dollar)                                                       800,000          808,120
                                                                                                                     --------------
                                                                                                                      
       Total Structured Instruments (Cost $6,218,844)                                                                    6,369,623
                                                                                                                      
- -----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.9%
- -----------------------------------------------------------------------------------------------------------------------------------
       Repurchase agreement with Canadian Imperial Bank of
       Commerce, 5.45%, dated 6/28/96, to be repurchased
       at $18,908,584 on 7/1/96, collateralized by U.S. Treasury
       Bonds, 9.125%-11.25%, 2/15/15-5/11/18, with a value
       of $6,680,920, and U.S. Treasury Nts., 5.25%-8.50%,
       1/11/97-11/15/04, with a value of $12,626,048
       (Cost $18,900,000)                                                                              18,900,000       18,900,000

       ----------------------------------------------------------------------------------------------------------------------------
       TOTAL INVESTMENTS, AT VALUE (COST $310,870,304)                                                      98.2%      311,908,746
       ----------------------------------------------------------------------------------------------------------------------------
       OTHER ASSETS NET OF LIABILITIES                                                                        1.8        5,708,154
                                                                                               -------------------   --------------
       NET ASSETS                                                                                          100.0%    $ 317,616,900
                                                                                               ===================   ==============
</TABLE>

         1. Principal amount is reported in U.S. Dollars, except for those
         denoted in the following currencies:

         AUD - Australian Dollar                        IEP - Irish Punt
         CAD - Canadian Dollar                          ITL - Italian Lira
         CZK - Czech Koruna                             MXP - Mexican Peso
         DEM - German Deutsche Mark                     NZD - New Zealand Dollar
         DKK - Danish Krone                             PLZ - Polish Zloty
         ESP - Spanish Peseta                           PTE - Portuguese Escudo
         GBP - British Pound Sterling                   SEK - Swedish Krona
     
         2. 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.

                                       24
<PAGE>   42

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Statement of Investments (Continued)

- --------------------------------------------------------------------------------
         3. 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 $10,392,770 or
         3.27% of the Fund's net assets, at June 30, 1996.

         4. Represents the current interest rate for a variable rate security.

         5. Principal-Only Strips represent the right to receive the monthly
         principal payments on an underlying pool of mortgage loans. The value
         of these securities generally increases as interest rates decline and
         prepayment rates rise. The price of these securities is typically more
         volatile than that of coupon-bearing bonds of the same maturity.
         Interest rates disclosed represent current yields based upon the
         current cost basis and estimated timing of future cash flows.

         6. A sufficient amount of liquid assets has been designated to cover
         outstanding written call options, as follows:

                                                                                
                                                          CONTRACTS             
<TABLE>
<CAPTION>
                                                          SUBJECT          EXPIRATION     EXERCISE          PREMIUM     MARKET VALUE
                                                          TO CALL          DATE           PRICE             RECEIVED    (NOTE 1)
       -----------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>            <C>           <C>              <C>             <C>      
       Call option on Australian Dollar                     352,000        7/3/96         1.25 AUD         $   2,675       $     282
       Call option on Czech Koruna                        1,190,000        9/6/96         28.357CZK           15,946          29,310
       Call option on Mexican Peso                          460,000        8/5/96         8.03MXP             12,374          16,374
                                                                                                            --------       ---------
                                                                                                            $ 30,995       $  45,966
                                                                                                            ========       =========
</TABLE>

         7. For zero coupon bonds, the interest rate shown is the effective
         yield on the date of purchase.

         8. Indexed instrument for which the principal amount and/or interest
         due at maturity is affected by the relative value of a foreign index.

         9. Identifies issues considered to be illiquid - See applicable note of
         Notes to Financial Statements.



       See accompanying Notes to Financial Statements.


                                       25
<PAGE>   43
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                   PRINCIPAL         MARKET VALUE
                                                                                                   AMOUNT            (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                     <C>                <C>        
SHORT-TERM NOTES - 2.1%
- ----------------------------------------------------------------------------------------------------------------------------------
        --------------------------------------------------------------------------------------------------------------------------
        Federal Home Loan Mortgage Corp., 5.27%, 7/1/96
        (Cost $10,000,000)                                                                         $10,000,000        $10,000,000

- ----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES - 0.6%
- ----------------------------------------------------------------------------------------------------------------------------------
        --------------------------------------------------------------------------------------------------------------------------
        Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02                                        800,000            950,000
        --------------------------------------------------------------------------------------------------------------------------
        United Waste Systems, Inc., 4.50% Cv. Sub. Nts., 6/1/01             (1)                      2,000,000          2,187,500
                                                                                                                   ---------------

        Total Convertible Corporate Bonds and Notes (Cost $2,800,000)                                                   3,137,500
        
                                                                                                     SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 81.2%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 16.9%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 1.2%
        --------------------------------------------------------------------------------------------------------------------------
        Alrenco, Inc.                                                       (2)                         72,000          1,296,000
        --------------------------------------------------------------------------------------------------------------------------
        ITI Technologies, Inc.                                              (2)                         80,000          2,640,000
        --------------------------------------------------------------------------------------------------------------------------
        NHP, Inc.                                                           (2)                        100,000          2,062,500
                                                                                                                   ---------------
                                                                                                                        5,998,500
- ----------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 4.9%
        --------------------------------------------------------------------------------------------------------------------------
        Apple South, Inc.                                                                              121,100          3,239,425
        --------------------------------------------------------------------------------------------------------------------------
        Applebee's International, Inc.                                                                  75,000          2,409,375
        --------------------------------------------------------------------------------------------------------------------------
        CKE Restaurants, Inc.                                                                          185,000          4,717,500
        --------------------------------------------------------------------------------------------------------------------------
        Landry's Seafood Restaurants, Inc.                                  (2)                        200,000          4,950,000
        --------------------------------------------------------------------------------------------------------------------------
        Longhorn Steaks, Inc.                                               (2)                         78,600          1,965,000
        --------------------------------------------------------------------------------------------------------------------------
        Quality Dining, Inc.                                                (2)                         74,500          2,439,875
        --------------------------------------------------------------------------------------------------------------------------
        Regal Cinemas, Inc.                                                 (2)                         56,600          2,589,450
        --------------------------------------------------------------------------------------------------------------------------
        Studio Plus Hotels, Inc.                                            (2)                         50,000          1,650,000
                                                                                                                   ---------------
                                                                                                                       23,960,625
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 2.0%
        --------------------------------------------------------------------------------------------------------------------------
        Chancellor Broadcasting Co., Cl. A                                  (2)                         58,900          1,840,625
        --------------------------------------------------------------------------------------------------------------------------
        Evergreen Media Corp., Cl. A                                        (2)                         60,000          2,565,000
        --------------------------------------------------------------------------------------------------------------------------
        Infinity Broadcasting Corp., Cl. A                                  (2)                         90,000          2,700,000
        --------------------------------------------------------------------------------------------------------------------------
        SFX Broadcasting, Inc., Cl. A                                       (2)                         63,200          2,464,800
                                                                                                                   ---------------
                                                                                                                        9,570,425
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 3.6%
        --------------------------------------------------------------------------------------------------------------------------
        Donna Karan International, Inc.                                                                102,200          2,861,600
        --------------------------------------------------------------------------------------------------------------------------
        Fila Holding SpA, ADR                                                                           40,000          3,450,000
        --------------------------------------------------------------------------------------------------------------------------
        Nautica Enterprises, Inc.                                           (2)                        105,000          3,018,750
        --------------------------------------------------------------------------------------------------------------------------
        Polymer Group, Inc.                                                 (2)                        100,000          1,750,000
        --------------------------------------------------------------------------------------------------------------------------
        Vans, Inc.                                                          (2)                        201,000          3,417,000
        --------------------------------------------------------------------------------------------------------------------------
        Wolverine World Wide, Inc.                                                                      89,000          2,892,500
                                                                                                                   ---------------
                                                                                                                       17,389,850
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 5.2%
        --------------------------------------------------------------------------------------------------------------------------
        Boise Cascade Office Products Corp.                                 (2)                        100,000          3,462,500
        --------------------------------------------------------------------------------------------------------------------------
        Copart, Inc.                                                        (2)                         78,100          1,288,650
        --------------------------------------------------------------------------------------------------------------------------
        Corporate Express, Inc.                                             (2)                         82,500          3,300,000
        --------------------------------------------------------------------------------------------------------------------------
        General Nutrition Cos., Inc.                                        (2)                         62,700          1,097,250
        --------------------------------------------------------------------------------------------------------------------------
        Gymboree Corp.                                                      (2)                         75,000          2,287,500

</TABLE>

                                       26
<PAGE>   44
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                   MARKET VALUE
                                                                                                       SHARES      (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                        <C>         <C>       
RETAIL:  SPECIALTY (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------------
        Men's Wearhouse, Inc. (The)                                         (2)                        100,100     $3,228,225
        ----------------------------------------------------------------------------------------------------------------------
        Moovies, Inc.                                                       (2)                         99,600        784,350
        ----------------------------------------------------------------------------------------------------------------------
        MSC Industrial Direct Co., Inc., Cl. A                              (2)                         35,000      1,128,750
        ----------------------------------------------------------------------------------------------------------------------
        Petco Animal Supplies, Inc.                                         (2)                        120,000      3,450,000
        ----------------------------------------------------------------------------------------------------------------------
        Staples, Inc.                                                       (2)                        101,250      1,974,375
        ----------------------------------------------------------------------------------------------------------------------
        Viking Office Products, Inc.                                        (2)                        110,000      3,451,250
                                                                                                                   -----------
                                                                                                                   25,452,850
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 21.7%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
FOOD - 1.0%
        ----------------------------------------------------------------------------------------------------------------------
        Safeway, Inc.                                                       (2)                        150,000      4,950,000
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 8.1%
        ----------------------------------------------------------------------------------------------------------------------
        Agouron Pharmaceuticals, Inc.                                       (2)                         40,000      1,560,000
        ----------------------------------------------------------------------------------------------------------------------
        Alpha-Beta Technology, Inc.                                         (2)                        140,000      1,242,500
        ----------------------------------------------------------------------------------------------------------------------
        Apache Medical Systems, Inc.                                                                   100,000      1,225,000
        ----------------------------------------------------------------------------------------------------------------------
        BioChem Pharma, Inc.                                                (2)                        105,000      3,937,500
        ----------------------------------------------------------------------------------------------------------------------
        CIMA Labs, Inc.                                                     (2)                         82,500        618,750
        ----------------------------------------------------------------------------------------------------------------------
        Corvas International, Inc.                                          (2)                            112            546
        ----------------------------------------------------------------------------------------------------------------------
        Dura Pharmaceuticals, Inc.                                          (2)                         75,000      4,200,000
        ----------------------------------------------------------------------------------------------------------------------
        Elan Corp. PLC, ADR                                                 (2)                         45,000      2,570,625
        ----------------------------------------------------------------------------------------------------------------------
        Ethical Holdings PLC, Sponsored ADR                                 (2)                         50,000        487,500
        ----------------------------------------------------------------------------------------------------------------------
        Genome Therapeutics Corp.                                           (2)                        110,000        990,000
        ----------------------------------------------------------------------------------------------------------------------
        Genzyme Corp.                                                       (2)                         50,000        587,500
        ----------------------------------------------------------------------------------------------------------------------
        Gilead Sciences, Inc.                                               (2)                         39,300        992,325
        ----------------------------------------------------------------------------------------------------------------------
        Guilford Pharmaceuticals, Inc.                                      (2)                         63,400      1,505,750
        ----------------------------------------------------------------------------------------------------------------------
        Incyte Pharmaceuticals, Inc.                                        (2)                         40,000      1,542,500
        ----------------------------------------------------------------------------------------------------------------------
        Integra LifeSciences Corp.                                          (2)                         53,000        516,750
        ----------------------------------------------------------------------------------------------------------------------
        Martek Biosciences Corp.                                            (2)                         40,000      1,170,000
        ----------------------------------------------------------------------------------------------------------------------
        Matrix Pharmaceutical, Inc.                                         (2)                         80,400      1,447,200
        ----------------------------------------------------------------------------------------------------------------------
        Mentor Corp.                                                                                    60,000      1,530,000
        ----------------------------------------------------------------------------------------------------------------------
        Millennium Pharmaceuticals, Inc.                                    (2)                         70,000      1,085,000
        ----------------------------------------------------------------------------------------------------------------------
        Nuerocrine Biosciences, Inc.                                        (2)                        105,000        931,875
        ----------------------------------------------------------------------------------------------------------------------
        Physician Support Systems, Inc.                                     (2)                        180,000      4,072,500
        ----------------------------------------------------------------------------------------------------------------------
        Protein Design Labs, Inc.                                           (2)                         57,500      1,293,750
        ----------------------------------------------------------------------------------------------------------------------
        QIAGEN NV                                                                                       60,000        907,500
        ----------------------------------------------------------------------------------------------------------------------
        SangStat Medical Corp.                                              (2)                        190,000      3,230,000
        ----------------------------------------------------------------------------------------------------------------------
        Watson Pharmaceuticals, Inc.                                        (2)                         35,000      1,325,625
                                                                                                                   -----------
                                                                                                                   38,970,696
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 12.6%
        ----------------------------------------------------------------------------------------------------------------------
        Aksys Ltd.                                                          (2)                         42,375        646,219
        ----------------------------------------------------------------------------------------------------------------------
        AmeriSource Health Corp., Cl. A                                     (2)                        115,500      3,840,375
        ----------------------------------------------------------------------------------------------------------------------
        Cardiovascular Dynamics, Inc.                                       (2)                         93,700      1,147,825
        ----------------------------------------------------------------------------------------------------------------------
        Compdent Corp.                                                      (2)                         40,000      1,860,000
        ----------------------------------------------------------------------------------------------------------------------
        ESC Medical Systems Ltd.                                            (2)                         62,100      1,754,325
        ----------------------------------------------------------------------------------------------------------------------
        Guidant Corp.                                                                                   95,000      4,678,750
        ----------------------------------------------------------------------------------------------------------------------
        Gulf South Medical Supply, Inc.                                     (2)                        108,400      4,227,600
        ----------------------------------------------------------------------------------------------------------------------
        HEALTHSOUTH Corp.                                                   (2)                        135,000      4,860,000
        ----------------------------------------------------------------------------------------------------------------------
        Hologic, Inc.                                                       (2)                         50,000      2,212,500
        ----------------------------------------------------------------------------------------------------------------------
        Impath, Inc.                                                        (2)                        100,000      1,800,000
</TABLE>

                                       27
<PAGE>   45
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                    MARKET VALUE
                                                                                                       SHARES       (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                        <C>         <C>      
HEALTHCARE/SUPPLIES & SERVICES (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------------
        Integ, Inc.                                                                                    150,000     $1,443,750
        ----------------------------------------------------------------------------------------------------------------------
        Mariner Health Group, Inc.                                          (2)                        100,000      1,837,500
        ----------------------------------------------------------------------------------------------------------------------
        National Surgery Centers, Inc.                                      (2)                         21,750        576,375
        ----------------------------------------------------------------------------------------------------------------------
        Novoste Corp.                                                       (2)                        150,000      1,481,250
        ----------------------------------------------------------------------------------------------------------------------
        OccuSystems, Inc.                                                   (2)                         45,000      1,681,875
        ----------------------------------------------------------------------------------------------------------------------
        Omnicare, Inc.                                                                                 153,600      4,070,400
        ----------------------------------------------------------------------------------------------------------------------
        Pediatrix Medical Group, Inc.                                       (2)                         85,000      4,122,500
        ----------------------------------------------------------------------------------------------------------------------
        PhyCor, Inc.                                                        (2)                        127,500      4,845,000
        ----------------------------------------------------------------------------------------------------------------------
        Physician Reliance Network, Inc.                                    (2)                        100,000      2,225,000
        ----------------------------------------------------------------------------------------------------------------------
        Physicians Resource Group, Inc.                                     (2)                        139,000      4,639,125
        ----------------------------------------------------------------------------------------------------------------------
        Renal Treatment Centers, Inc.                                       (2)                        125,000      3,593,750
        ----------------------------------------------------------------------------------------------------------------------
        Total Renal Care Holdings, Inc.                                     (2)                         87,600      3,701,100
                                                                                                                   -----------
                                                                                                                   61,245,219
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.7%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 2.7%
        ----------------------------------------------------------------------------------------------------------------------
        Diamond Offshore Drilling, Inc.                                     (2)                         86,900      4,975,025
        ----------------------------------------------------------------------------------------------------------------------
        Energy Ventures, Inc.                                               (2)                        100,200      3,256,500
        ----------------------------------------------------------------------------------------------------------------------
        Nabors Industries, Inc.                                             (2)                        150,000      2,437,500
        ----------------------------------------------------------------------------------------------------------------------
        NUMAR Corp.                                                         (2)                         51,000        777,750
        ----------------------------------------------------------------------------------------------------------------------
        Weatherford Enterra, Inc.                                           (2)                         50,000      1,500,000
                                                                                                                   -----------
                                                                                                                   12,946,775
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 2.5%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.2%
        ----------------------------------------------------------------------------------------------------------------------
        Advanta Corp., Cl. B                                                                            40,000      1,810,000
        ----------------------------------------------------------------------------------------------------------------------
        Associates First Capital Corp., Cl. A                               (2)                         56,000      2,107,000
        ----------------------------------------------------------------------------------------------------------------------
        Green Tree Financial Corp.                                                                      60,000      1,875,000
                                                                                                                   -----------
                                                                                                                    5,792,000
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.3%
        ----------------------------------------------------------------------------------------------------------------------
        Berkley (W.R.) Corp.                                                                            50,000      2,087,500
        ----------------------------------------------------------------------------------------------------------------------
        CapMAC Holdings, Inc.                                                                           85,600      2,439,600
        ----------------------------------------------------------------------------------------------------------------------
        Executive Risk, Inc.                                                                            50,000      1,912,500
                                                                                                                   -----------
                                                                                                                    6,439,600
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 11.2%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.4%
        ----------------------------------------------------------------------------------------------------------------------
        Honeywell, Inc.                                                                                 40,000      2,180,000
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.5%
        ----------------------------------------------------------------------------------------------------------------------
        BMC West Corp.                                                      (2)                        128,000      2,192,000
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 9.3%
        ----------------------------------------------------------------------------------------------------------------------
        Affiliated Computer Services, Inc., Cl. A                           (2)                         48,000      2,256,000
        ----------------------------------------------------------------------------------------------------------------------
        CIBER, Inc.                                                         (2)                        133,000      2,926,000
        ----------------------------------------------------------------------------------------------------------------------
        Computer Horizons Corp.                                             (2)                         62,500      2,468,750
        ----------------------------------------------------------------------------------------------------------------------
        CORT Business Services Corp.                                        (2)                         93,800      1,829,100
        ----------------------------------------------------------------------------------------------------------------------
        Danka Business Systems PLC, Sponsored ADR                                                       70,000      2,047,500
        ----------------------------------------------------------------------------------------------------------------------
        DecisionOne Holdings Corp.                                          (2)                         90,000      2,137,500
        ----------------------------------------------------------------------------------------------------------------------
        First USA Paymentech, Inc.                                          (2)                         88,100      3,524,000
        ----------------------------------------------------------------------------------------------------------------------
        Greenwich Air Services, Inc., B Shares                              (2)                        125,000      2,437,500
        ----------------------------------------------------------------------------------------------------------------------
        Kent Electronics Corp.                                              (2)                         56,600      1,768,750
        ----------------------------------------------------------------------------------------------------------------------
        May & Speh, Inc.                                                    (2)                         74,900      1,179,675

</TABLE>

                                       28
<PAGE>   46
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                      MARKET VALUE
                                                                                                       SHARES         (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                        <C>           <C>     
INDUSTRIAL SERVICES (CONTINUED)
        ------------------------------------------------------------------------------------------------------------------------
        NOVA Corp.                                                          (2)                         10,800         $364,500
        ------------------------------------------------------------------------------------------------------------------------
        PMT Services, Inc.                                                  (2)                         76,500        2,189,812
        ------------------------------------------------------------------------------------------------------------------------
        SITEL Corp.                                                         (2)                        118,600        4,981,200
        ------------------------------------------------------------------------------------------------------------------------
        Transaction Network Services, Inc.                                  (2)                         92,500        1,988,750
        ------------------------------------------------------------------------------------------------------------------------
        Transaction Systems Architects, Inc., Cl. A                         (2)                         46,000        3,082,000
        ------------------------------------------------------------------------------------------------------------------------
        United Waste Systems, Inc.                                          (2)                         74,000        2,386,500
        ------------------------------------------------------------------------------------------------------------------------
        USA Waste Services, Inc.                                            (2)                        171,300        5,074,762
        ------------------------------------------------------------------------------------------------------------------------
        Walsh International, Inc.                                           (2)                        130,000        1,202,500
        ------------------------------------------------------------------------------------------------------------------------
        Whittman-Hart, Inc.                                                 (2)                         42,300        1,522,800
                                                                                                                   -------------
                                                                                                                     45,367,599
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.5%
        ------------------------------------------------------------------------------------------------------------------------
        U.S. Filter Corp.                                                   (2)                         75,000        2,606,250
- --------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
        ------------------------------------------------------------------------------------------------------------------------
        Airborne Freight Corp.                                                                         100,000        2,600,000
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 25.8%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 0.6%
        ------------------------------------------------------------------------------------------------------------------------
        Encad, Inc.                                                         (2)                        160,000        2,720,000
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 12.1%
        ------------------------------------------------------------------------------------------------------------------------
        Adept Technology, Inc.                                                                         137,700        1,927,800
        ------------------------------------------------------------------------------------------------------------------------
        America Online, Inc.                                                                            40,000        1,750,000
        ------------------------------------------------------------------------------------------------------------------------
        Aspen Technologies, Inc.                                            (2)                         70,000        3,850,000
        ------------------------------------------------------------------------------------------------------------------------
        Business Objects SA, Sponsored ADR                                  (2)                         70,000        2,817,500
        ------------------------------------------------------------------------------------------------------------------------
        Centennial Technologies, Inc.                                       (2)                         90,000        2,688,750
        ------------------------------------------------------------------------------------------------------------------------
        Cylink Corp.                                                        (2)                         10,000          172,500
        ------------------------------------------------------------------------------------------------------------------------
        Enterprise Systems, Inc.                                            (2)                        104,100        2,862,750
        ------------------------------------------------------------------------------------------------------------------------
        FileNet Corp.                                                       (2)                         60,000        2,190,000
        ------------------------------------------------------------------------------------------------------------------------
        First Data Corp.                                                                                78,788        6,273,495
        ------------------------------------------------------------------------------------------------------------------------
        HBO & Co.                                                                                       70,000        4,742,500
        ------------------------------------------------------------------------------------------------------------------------
        Health Systems Design Corp.                                         (2)                         71,000        1,047,250
        ------------------------------------------------------------------------------------------------------------------------
        IMNET Systems, Inc.                                                 (2)                        106,300        3,242,150
        ------------------------------------------------------------------------------------------------------------------------
        Indus Group, Inc. (The)                                             (2)                         75,000        1,518,750
        ------------------------------------------------------------------------------------------------------------------------
        Legato Systems, Inc.                                                (2)                         20,000        1,100,000
        ------------------------------------------------------------------------------------------------------------------------
        Mecon, Inc.                                                         (2)                         95,000        2,149,375
        ------------------------------------------------------------------------------------------------------------------------
        Open Text Corp.                                                     (2)                         65,000          674,375
        ------------------------------------------------------------------------------------------------------------------------
        Oracle Corp.                                                        (2)                         97,500        3,845,156
        ------------------------------------------------------------------------------------------------------------------------
        PowerCerv Corp.                                                     (2)                         70,000          857,500
        ------------------------------------------------------------------------------------------------------------------------
        Project Software & Development, Inc.                                (2)                         49,500        2,320,313
        ------------------------------------------------------------------------------------------------------------------------
        Rational Software Corp.                                             (2)                         25,000        1,343,750
        ------------------------------------------------------------------------------------------------------------------------
        Software 2000, Inc.                                                 (2)                        121,800        1,964,025
        ------------------------------------------------------------------------------------------------------------------------
        Summit Medical Systems, Inc.                                        (2)                         55,000        1,072,500
        ------------------------------------------------------------------------------------------------------------------------
        Sunquest Information Systems, Inc.                                  (2)                        110,000        1,650,000
        ------------------------------------------------------------------------------------------------------------------------
        Transition Systems, Inc.                                            (2)                        100,000        2,850,000
        ------------------------------------------------------------------------------------------------------------------------
        Vantive Corp.                                                       (2)                         35,000        1,172,500
        ------------------------------------------------------------------------------------------------------------------------
        Verilink Corp.                                                      (2)                        120,000        3,060,000
                                                                                                                   -------------
                                                                                                                     59,142,939
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 2.0%
        ------------------------------------------------------------------------------------------------------------------------
        Affinity Technology Group, Inc.                                     (2)                         54,700          464,950
        ------------------------------------------------------------------------------------------------------------------------
        Itron, Inc.                                                         (2)                         75,000        2,128,125
</TABLE>

                                       29
<PAGE>   47
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                     MARKET VALUE
                                                                                                     SHARES          (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                 <C>            <C>       
ELECTRONICS (CONTINUED)
        ------------------------------------------------------------------------------------------------------------------------
        Sawtek, Inc.                                                              (2)                 95,100         $3,280,950
        ------------------------------------------------------------------------------------------------------------------------
        SDL, Inc.                                                                 (2)                135,000          3,746,250
                                                                                                                     -----------
                                                                                                                      9,620,275
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 11.1%
        ------------------------------------------------------------------------------------------------------------------------
        Arch Communications Group, Inc.                                           (2)                100,000          1,862,500
        ------------------------------------------------------------------------------------------------------------------------
        Cisco Systems, Inc.                                                       (2)                 50,000          2,831,250
        ------------------------------------------------------------------------------------------------------------------------
        Comverse Technology, Inc.                                                 (2)                150,000          4,575,000
        ------------------------------------------------------------------------------------------------------------------------
        Davox Corp.                                                               (2)                 60,000          1,770,000
        ------------------------------------------------------------------------------------------------------------------------
        Glenayre Technologies, Inc.                                                                  122,625          6,131,250
        ------------------------------------------------------------------------------------------------------------------------
        LCI International, Inc.                                                   (2)                132,600          4,160,325
        ------------------------------------------------------------------------------------------------------------------------
        MobileMedia Corp., Cl. A                                                  (2)                125,000          1,515,625
        ------------------------------------------------------------------------------------------------------------------------
        Newbridge Networks Corp.                                                  (2)                105,000          6,877,500
        ------------------------------------------------------------------------------------------------------------------------
        Octel Communications Corp.                                                (2)                100,000          1,975,000
        ------------------------------------------------------------------------------------------------------------------------
        PageMart Wireless, Inc., Cl. A                                            (2)                103,100          1,031,000
        ------------------------------------------------------------------------------------------------------------------------
        Pairgain Technologies, Inc.                                               (2)                 54,800          3,397,600
        ------------------------------------------------------------------------------------------------------------------------
        Periphonics Corp.                                                         (2)                100,400          3,413,600
        ------------------------------------------------------------------------------------------------------------------------
        ProNet, Inc.                                                              (2)                 50,000            612,500
        ------------------------------------------------------------------------------------------------------------------------
        Scientific-Atlanta, Inc.                                                                      80,000          1,240,000
        ------------------------------------------------------------------------------------------------------------------------
        Sterling Commerce, Inc.                                                   (2)                 45,500          1,689,188
        ------------------------------------------------------------------------------------------------------------------------
        Tel-Save Holdings, Inc.                                                   (2)                100,000          2,125,000
        ------------------------------------------------------------------------------------------------------------------------
        Tellabs, Inc.                                                             (2)                 75,000          5,015,625
        ------------------------------------------------------------------------------------------------------------------------
        Teltrend, Inc.                                                            (2)                100,000          3,875,000
                                                                                                                     -----------
                                                                                                                     54,097,963
- --------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.4%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.4%
        ------------------------------------------------------------------------------------------------------------------------
        ACC Corp., Cl. A                                                          (2)                 38,800          1,886,650
                                                                                                                    ------------

        Total Common Stocks (Cost $290,205,869)                                                                     395,130,216
</TABLE>

<TABLE>
<CAPTION>
                                                                                                   UNITS
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>      <C>            <C>                 <C>    
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- --------------------------------------------------------------------------------------------------------------------------------
        ------------------------------------------------------------------------------------------------------------------------
        Windmere Corp. Wts., Exp. 1/98 (Cost $0)                                                    381                      --

                                                                            DATE     STRIKE        CONTRACTS
- --------------------------------------------------------------------------------------------------------------------------------

PUT OPTIONS PURCHASED - 0.1%
- --------------------------------------------------------------------------------------------------------------------------------
        ------------------------------------------------------------------------------------------------------------------------
        NASDAQ 100 Index Put. Opt. (Cost $619,650)                          9/96     $630           300                 371,250

                                                                                                   PRINCIPAL
                                                                                                   AMOUNT
- --------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 18.0%
- --------------------------------------------------------------------------------------------------------------------------------
        Repurchase agreement with J. P. Morgan Securities,
        Inc., 5.45%, dated 6/28/96, to be repurchased at
        $87,839,876 on 7/1/96, collateralized by U.S. Treasury
        Bonds, 11.25%, 2/15/15, with a value of $81,980,431,
        and U.S. Treasury Nts., 8.50%, 5/15/97, with a value
        of $8,245,866 (Cost $87,800,000)                                                         $87,800,000         87,800,000
</TABLE>

                                       30
<PAGE>   48
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                MARKET VALUE
                                                                                                                (NOTE 1)
        ---------------------------------------------------------------------------------------------------------------------
<S>                                                                                                   <C>      <C>         
        TOTAL INVESTMENTS, AT VALUE (COST $391,425,519)                                                102.0%   $496,438,966
        ---------------------------------------------------------------------------------------------------------------------
        LIABILITIES IN EXCESS OF OTHER ASSETS                                                           (2.0)     (9,566,784)
                                                                                                     --------   -------------
        NET ASSETS                                                                                     100.0%   $486,872,182
                                                                                                     ========   =============
</TABLE>

        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 $2,187,500 or 0.45% of the
        Fund's net assets, at June 30, 1996.
        2.  Non-income producing security.

See accompanying Notes to Financial Statements.

                                       31
<PAGE>   49
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                           PRINCIPAL        MARKET VALUE
                                                                                             AMOUNT           (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>       <C>                <C>        
SHORT-TERM NOTES - 7.8%
- ------------------------------------------------------------------------------------------------------------------------
        Federal Home Loan Mortgage Corp., 5.27%, 7/1/96
        (Cost $11,250,000)                                                                $11,250,000        $11,250,000

                                                                                             SHARES
- ------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 80.2%
- ------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 4.8%
- ------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 3.9%
        ----------------------------------------------------------------------------------------------------------------
        FMC Corp.                                                               (1)             8,200            535,050
        ----------------------------------------------------------------------------------------------------------------
        IMC Global, Inc.                                                                       19,000            714,875
        ----------------------------------------------------------------------------------------------------------------
        Morton International, Inc.                                                             29,000          1,080,250
        ----------------------------------------------------------------------------------------------------------------
        PPG Industries, Inc.                                                                    3,200            156,000
        ----------------------------------------------------------------------------------------------------------------
        Praxair, Inc.                                                                          31,600          1,335,100
        ----------------------------------------------------------------------------------------------------------------
        Sterling Chemicals, Inc.                                                (1)            31,600            367,350
        ----------------------------------------------------------------------------------------------------------------
        Terra Industries, Inc.                                                                 51,000            631,125
        ----------------------------------------------------------------------------------------------------------------
        Union Carbide Corp.                                                                    19,000            755,250
                                                                                                             -----------
                                                                                                               5,575,000
- ------------------------------------------------------------------------------------------------------------------------
PAPER - 0.9%
        ----------------------------------------------------------------------------------------------------------------
        Boise Cascade Corp.                                                                    12,000            439,500
        ----------------------------------------------------------------------------------------------------------------
        Bowater, Inc.                                                                          14,000            526,750
        ----------------------------------------------------------------------------------------------------------------
        Willamette Industries, Inc.                                                             6,000            357,000
                                                                                                             -----------
                                                                                                               1,323,250
- ------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 12.2%
- ------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 1.2%
        ----------------------------------------------------------------------------------------------------------------
        AutoZone, Inc.                                                          (1)            12,000            417,000
        ----------------------------------------------------------------------------------------------------------------
        Pulte Corp.                                                                            22,000            588,500
        ----------------------------------------------------------------------------------------------------------------
        Toll Brothers, Inc.                                                     (1)            46,000            753,250
                                                                                                             -----------
                                                                                                               1,758,750
- ------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 4.4%
        ----------------------------------------------------------------------------------------------------------------
        Alaska Air Group, Inc.                                                  (1)            25,000            684,375
        ----------------------------------------------------------------------------------------------------------------
        AMR Corp.                                                                               5,000            455,000
        ----------------------------------------------------------------------------------------------------------------
        Callaway Golf Co.                                                                      25,000            831,250
        ----------------------------------------------------------------------------------------------------------------
        Delta Air Lines, Inc.                                                                   8,000            664,000
        ----------------------------------------------------------------------------------------------------------------
        Disney (Walt) Co.                                                                      25,000          1,571,875
        ----------------------------------------------------------------------------------------------------------------
        ITT Corp. (New)                                                         (1)             5,000            331,250
        ----------------------------------------------------------------------------------------------------------------
        McDonald's Corp.                                                                       11,000            514,250
        ----------------------------------------------------------------------------------------------------------------
        Outback Steakhouse, Inc.                                                (1)            20,000            689,687
        ----------------------------------------------------------------------------------------------------------------
        Wendy's International, Inc.                                                            35,800            666,775
                                                                                                             -----------
                                                                                                               6,408,462
- ------------------------------------------------------------------------------------------------------------------------
MEDIA - 0.1%
        ----------------------------------------------------------------------------------------------------------------
        Viacom, Inc., Cl. B                                                     (1)             3,667            142,555
- ------------------------------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 4.2%
        ----------------------------------------------------------------------------------------------------------------
        Donna Karan International, Inc.                                                        40,100          1,122,800
        ----------------------------------------------------------------------------------------------------------------
        Eckerd Corp.                                                            (1)            44,000            995,500
        ----------------------------------------------------------------------------------------------------------------
        Jones Apparel Group, Inc.                                               (1)            19,100            938,287
        ----------------------------------------------------------------------------------------------------------------
        Liz Claiborne, Inc.                                                                    11,000            380,875
        ----------------------------------------------------------------------------------------------------------------
        Nautica Enterprises, Inc.                                               (1)            20,000            575,000
        ----------------------------------------------------------------------------------------------------------------
        Tommy Hilfiger Corp.                                                    (1)            20,800          1,115,400
</TABLE>


                                       32
<PAGE>   50
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                            MARKET VALUE
                                                                                               SHARES         (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>       <C>                <C>        
RETAIL:  GENERAL (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------
        Wal-Mart Stores, Inc.                                                                  37,000        $   938,875
                                                                                                             -----------
                                                                                                               6,066,737
- ------------------------------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 2.3%
        ----------------------------------------------------------------------------------------------------------------
        Bed Bath & Beyond, Inc.                                                 (1)            18,000            481,500
        ----------------------------------------------------------------------------------------------------------------
        Gap, Inc. (The)                                                                        20,000            642,500
        ----------------------------------------------------------------------------------------------------------------
        General Nutrition Cos., Inc.                                            (1)            18,400            322,000
        ----------------------------------------------------------------------------------------------------------------
        Home Depot, Inc.                                                                       22,000          1,188,000
        ----------------------------------------------------------------------------------------------------------------
        Lands' End, Inc.                                                        (1)            28,000            693,000
                                                                                                             -----------
                                                                                                               3,327,000
- ------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 17.0%
- ------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.5%
        ----------------------------------------------------------------------------------------------------------------
        Boston Beer Co., Inc., Cl. A                                            (1)            13,000            312,000
        ----------------------------------------------------------------------------------------------------------------
        Coca-Cola Co. (The)                                                                    22,000          1,075,250
        ----------------------------------------------------------------------------------------------------------------
        PepsiCo, Inc.                                                                          20,000            707,500
        ----------------------------------------------------------------------------------------------------------------
        Whitman Corp.                                                                           5,000            120,625
                                                                                                             -----------
                                                                                                               2,215,375
- ------------------------------------------------------------------------------------------------------------------------
FOOD - 2.7%
        ----------------------------------------------------------------------------------------------------------------
        Casey's General Stores, Inc.                                                           13,000            258,375
        ----------------------------------------------------------------------------------------------------------------
        H.J. Heinz Co.                                                                         15,000            455,625
        ----------------------------------------------------------------------------------------------------------------
        JP Foodservice, Inc.                                                    (1)            25,600            640,000
        ----------------------------------------------------------------------------------------------------------------
        Kroger Co.                                                              (1)            25,000            987,500
        ----------------------------------------------------------------------------------------------------------------
        Richfood Holdings, Inc.                                                                16,000            520,000
        ----------------------------------------------------------------------------------------------------------------
        Safeway, Inc.                                                           (1)            32,000          1,056,000
                                                                                                             -----------
                                                                                                               3,917,500
- ------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 4.6%
        ----------------------------------------------------------------------------------------------------------------
        Abbott Laboratories                                                                    17,000            739,500
        ----------------------------------------------------------------------------------------------------------------
        Amgen, Inc.                                                             (1)             8,000            432,000
        ----------------------------------------------------------------------------------------------------------------
        Bristol-Myers Squibb Co.                                                                6,500            585,000
        ----------------------------------------------------------------------------------------------------------------
        Johnson & Johnson                                                                      28,516          1,411,542
        ----------------------------------------------------------------------------------------------------------------
        Pfizer, Inc.                                                                           26,500          1,891,437
        ----------------------------------------------------------------------------------------------------------------
        Schering-Plough Corp.                                                                  16,000          1,004,000
        ----------------------------------------------------------------------------------------------------------------
        Warner-Lambert Co.                                                                     10,000            550,000
                                                                                                             -----------
                                                                                                               6,613,479
- ------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 5.4%
        ----------------------------------------------------------------------------------------------------------------
        Boston Scientific Corp.                                                 (1)            21,000            945,000
        ----------------------------------------------------------------------------------------------------------------
        Columbia/HCA Healthcare Corp.                                                           8,000            427,000
        ----------------------------------------------------------------------------------------------------------------
        HealthCare COMPARE Corp.                                                (1)            20,000            975,000
        ----------------------------------------------------------------------------------------------------------------
        HEALTHSOUTH Corp.                                                       (1)            17,000            612,000
        ----------------------------------------------------------------------------------------------------------------
        Lincare Holdings, Inc.                                                  (1)            21,000            824,250
        ----------------------------------------------------------------------------------------------------------------
        Medtronic, Inc.                                                                        26,000          1,456,000
        ----------------------------------------------------------------------------------------------------------------
        Nellcor Puritan Bennett, Inc.                                           (1)            15,800            766,300
        ----------------------------------------------------------------------------------------------------------------
        Oxford Health Plans, Inc.                                               (1)            16,000            658,000
        ----------------------------------------------------------------------------------------------------------------
        Sofamor Danek Group, Inc.                                               (1)            17,000            471,750
        ----------------------------------------------------------------------------------------------------------------
        Ventritex, Inc.                                                         (1)            18,000            308,250
        ----------------------------------------------------------------------------------------------------------------
        VISX, Inc.                                                              (1)            11,000            375,375
                                                                                                             -----------
                                                                                                               7,818,925
- ------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.7%
        ----------------------------------------------------------------------------------------------------------------
        Procter & Gamble Co.                                                                   11,000            996,875
</TABLE>


                                       33
<PAGE>   51
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                            MARKET VALUE
                                                                                               SHARES         (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>       <C>                <C>        
TOBACCO - 2.1%
        ----------------------------------------------------------------------------------------------------------------
        Philip Morris Cos., Inc.                                                               15,000        $ 1,560,000
        ----------------------------------------------------------------------------------------------------------------
        UST, Inc.                                                                              41,000          1,404,250
                                                                                                             -----------
                                                                                                               2,964,250
- ------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.7%
- ------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.9%
        ----------------------------------------------------------------------------------------------------------------
        Global Marine, Inc.                                                     (1)            27,000            374,625
        ----------------------------------------------------------------------------------------------------------------
        Sonat Offshore Drilling, Inc.                                                          18,000            909,000
                                                                                                             -----------
                                                                                                               1,283,625
- ------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 0.8%
        ----------------------------------------------------------------------------------------------------------------
        Mobil Corp.                                                                             6,000            672,750
        ----------------------------------------------------------------------------------------------------------------
        Royal Dutch Petroleum Co.                                                               3,500            538,125
                                                                                                             -----------
                                                                                                               1,210,875
- ------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 15.9%
- ------------------------------------------------------------------------------------------------------------------------
BANKS - 4.2%
        ----------------------------------------------------------------------------------------------------------------
        Bank of Boston Corp.                                                                   23,000          1,138,500
        ----------------------------------------------------------------------------------------------------------------
        BankAmerica Corp.                                                                       7,500            568,125
        ----------------------------------------------------------------------------------------------------------------
        Chase Manhattan Corp. (New)                                                            15,240          1,076,325
        ----------------------------------------------------------------------------------------------------------------
        NationsBank Corp.                                                                      10,000            826,250
        ----------------------------------------------------------------------------------------------------------------
        PNC Bank Corp.                                                                         24,600            731,850
        ----------------------------------------------------------------------------------------------------------------
        State Street Boston Corp.                                                              18,600            948,600
        ----------------------------------------------------------------------------------------------------------------
        Wells Fargo & Co.                                                                       3,166            756,278
                                                                                                             -----------
                                                                                                               6,045,928
- ------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 8.5%
        ----------------------------------------------------------------------------------------------------------------
        Advanta Corp., Cl. A                                                                   15,000            765,000
        ----------------------------------------------------------------------------------------------------------------
        Associates First Capital Corp., Cl. A                                   (1)            15,000            564,375
        ----------------------------------------------------------------------------------------------------------------
        Federal Home Loan Mortgage Corp.                                                        8,000            684,000
        ----------------------------------------------------------------------------------------------------------------
        Federal National Mortgage Assn.                                                        32,000          1,072,000
        ----------------------------------------------------------------------------------------------------------------
        First USA, Inc.                                                                        25,000          1,375,000
        ----------------------------------------------------------------------------------------------------------------
        Franklin Resources, Inc.                                                               23,000          1,403,000
        ----------------------------------------------------------------------------------------------------------------
        Green Tree Financial Corp.                                                             56,000          1,750,000
        ----------------------------------------------------------------------------------------------------------------
        Price (T. Rowe) Associates                                                             43,200          1,328,400
        ----------------------------------------------------------------------------------------------------------------
        Salomon, Inc.                                                                          18,000            792,000
        ----------------------------------------------------------------------------------------------------------------
        Schwab (Charles) Corp. (New)                                                           29,000            710,500
        ----------------------------------------------------------------------------------------------------------------
        Travelers Group, Inc.                                                                  40,500          1,847,812
                                                                                                             -----------
                                                                                                              12,292,087
- ------------------------------------------------------------------------------------------------------------------------
INSURANCE - 3.2%
        ----------------------------------------------------------------------------------------------------------------
        Allstate Corp.                                                                         20,000            912,500
        ----------------------------------------------------------------------------------------------------------------
        Amerin Corp.                                                            (1)            18,500            494,875
        ----------------------------------------------------------------------------------------------------------------
        ITT Hartford Group, Inc.                                                                5,000            266,250
        ----------------------------------------------------------------------------------------------------------------
        Loews Corp.                                                                            11,000            867,625
        ----------------------------------------------------------------------------------------------------------------
        MGIC Investment Corp.                                                                  14,100            791,363
        ----------------------------------------------------------------------------------------------------------------
        SunAmerica, Inc.                                                                       24,000          1,356,000
                                                                                                             -----------
                                                                                                               4,688,613
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 6.7%
- ------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.8%
        ----------------------------------------------------------------------------------------------------------------
        Emerson Electric Co.                                                                   16,500          1,491,188
        ----------------------------------------------------------------------------------------------------------------
        General Electric Co.                                                                    9,000            778,500
</TABLE>


                                       34
<PAGE>   52

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                            MARKET VALUE
                                                                                               SHARES         (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>       <C>                <C>        
ELECTRICAL EQUIPMENT (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------
        Kemet Corp.                                                             (1)            20,000            400,000
                                                                                                             -----------
                                                                                                               2,669,688
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 1.5%
        ----------------------------------------------------------------------------------------------------------------
        Centex Corp.                                                                           21,000            653,625
        ----------------------------------------------------------------------------------------------------------------
        Fluor Corp.                                                                             6,000            392,250
        ----------------------------------------------------------------------------------------------------------------
        Rayonier, Inc.                                                                         23,400            889,200
        ----------------------------------------------------------------------------------------------------------------
        Wolverine Tube, Inc.                                                    (1)             5,000            175,000
                                                                                                             -----------
                                                                                                               2,110,075
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 1.0%
        ----------------------------------------------------------------------------------------------------------------
        Danka Business Systems PLC, Sponsored ADR                                              13,000            380,250
        ----------------------------------------------------------------------------------------------------------------
        DecisionOne Holdings Corp.                                              (1)            23,600            560,500
        ----------------------------------------------------------------------------------------------------------------
        Manpower, Inc.                                                                         12,500            490,625
                                                                                                             -----------
                                                                                                               1,431,375
- ------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.8%
        ----------------------------------------------------------------------------------------------------------------
        AGCO Corp.                                                                             19,200            532,800
        ----------------------------------------------------------------------------------------------------------------
        ITT Industries, Inc.                                                                    3,000             75,375
        ----------------------------------------------------------------------------------------------------------------
        Kulicke & Soffa Industries, Inc.                                        (1)            33,000            482,625
                                                                                                             -----------
                                                                                                               1,090,800
- ------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.6%
        ----------------------------------------------------------------------------------------------------------------
        Burlington Northern Santa Fe Corp.                                                      7,000            566,125
        ----------------------------------------------------------------------------------------------------------------
        Canadian Pacific Ltd.                                                                  62,000          1,364,000
        ----------------------------------------------------------------------------------------------------------------
        Illinois Central Corp.                                                                 15,000            425,625
                                                                                                             -----------
                                                                                                               2,355,750
- ------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 21.3%
- ------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.6%
        ----------------------------------------------------------------------------------------------------------------
        Goodrich (B.F.) Co.                                                                    24,000            897,000
- ------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 3.4%
        ----------------------------------------------------------------------------------------------------------------
        Adaptec, Inc.                                                           (1)            12,000            568,500
        ----------------------------------------------------------------------------------------------------------------
        Cabletron Systems, Inc.                                                 (1)            15,000          1,029,375
        ----------------------------------------------------------------------------------------------------------------
        Compaq Computer Corp.                                                   (1)            16,000            788,000
        ----------------------------------------------------------------------------------------------------------------
        EMC Corp.                                                               (1)            36,000            670,500
        ----------------------------------------------------------------------------------------------------------------
        Gateway 2000, Inc.                                                      (1)            30,800          1,047,200
        ----------------------------------------------------------------------------------------------------------------
        Seagate Technology, Inc.                                                (1)            19,000            855,000
                                                                                                             -----------
                                                                                                               4,958,575
- ------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 9.1%
        ----------------------------------------------------------------------------------------------------------------
        Automatic Data Processing, Inc.                                                        20,000            772,500
        ----------------------------------------------------------------------------------------------------------------
        BMC Software, Inc.                                                      (1)            22,000          1,314,500
        ----------------------------------------------------------------------------------------------------------------
        Computer Associates International, Inc.                                                 6,000            427,500
        ----------------------------------------------------------------------------------------------------------------
        First Data Corp.                                                                       29,000          2,309,125
        ----------------------------------------------------------------------------------------------------------------
        Informix Corp.                                                          (1)            35,000            787,500
        ----------------------------------------------------------------------------------------------------------------
        Microsoft Corp.                                                         (1)            33,000          3,964,125
        ----------------------------------------------------------------------------------------------------------------
        Oracle Corp.                                                            (1)            45,400          1,790,463
        ----------------------------------------------------------------------------------------------------------------
        PLATINUM Technology, Inc.                                               (1)            33,000            499,125
        ----------------------------------------------------------------------------------------------------------------
        Sterling Software, Inc.                                                 (1)            11,000            847,000
        ----------------------------------------------------------------------------------------------------------------
        System Software Associates, Inc.                                                       27,500            467,500
                                                                                                             -----------
                                                                                                              13,179,338
- ------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.9%
        ----------------------------------------------------------------------------------------------------------------
        Applied Materials, Inc.                                                 (1)            32,000            976,000
</TABLE>


                                       35
<PAGE>   53
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                            MARKET VALUE
                                                                                               SHARES         (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>       <C>                <C>        
ELECTRONICS (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------
        Arrow Electronics, Inc.                                                 (1)             8,000        $   345,000
        ----------------------------------------------------------------------------------------------------------------
        Cypress Semiconductor Corp.                                             (1)            55,000            660,000
        ----------------------------------------------------------------------------------------------------------------
        Intel Corp.                                                                            26,000          1,909,375
        ----------------------------------------------------------------------------------------------------------------
        LSI Logic Corp.                                                         (1)            16,000            416,000
        ----------------------------------------------------------------------------------------------------------------
        Motorola, Inc.                                                                         10,000            628,750
        ----------------------------------------------------------------------------------------------------------------
        Novellus Systems, Inc.                                                  (1)             8,200            295,200
        ----------------------------------------------------------------------------------------------------------------
        Philips Electronics NV, ADR                                                            11,000            358,875
        ----------------------------------------------------------------------------------------------------------------
        Tegal Corp.                                                             (1)            15,000            108,750
                                                                                                             -----------
                                                                                                               5,697,950
- ------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 4.3%
        ----------------------------------------------------------------------------------------------------------------
        3Com Corp.                                                              (1)             3,000            137,250
        ----------------------------------------------------------------------------------------------------------------
        Cisco Systems, Inc.                                                     (1)            23,000          1,302,375
        ----------------------------------------------------------------------------------------------------------------
        Hong Kong Telecommunications Ltd., Sponsored ADR                                       21,000            378,000
        ----------------------------------------------------------------------------------------------------------------
        L.M. Ericsson Telephone Co., Cl. B, ADR                                                42,000            903,000
        ----------------------------------------------------------------------------------------------------------------
        Lucent Technologies, Inc.                                                               6,200            234,825
        ----------------------------------------------------------------------------------------------------------------
        Newbridge Networks Corp.                                                (1)            23,000          1,506,500
        ----------------------------------------------------------------------------------------------------------------
        Telecom Corp. of New Zealand Ltd., Sponsored ADR                                        7,000            467,250
        ----------------------------------------------------------------------------------------------------------------
        Tellabs, Inc.                                                           (1)            19,800          1,324,125
                                                                                                             -----------
                                                                                                               6,253,325
- ------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.6%
- ------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.6%
        ----------------------------------------------------------------------------------------------------------------
        BellSouth Corp.                                                                         3,000            127,125
        ----------------------------------------------------------------------------------------------------------------
        Cincinnati Bell, Inc.                                                                  13,800            719,325
                                                                                                             -----------
                                                                                                                 846,450
                                                                                                             -----------
        Total Common Stocks (Cost $85,487,962)                                                               116,139,612
                                                                                           PRINCIPAL
                                                                                            AMOUNT
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 12.0%
- ------------------------------------------------------------------------------------------------------------------------
        Repurchase agreement with Canadian Imperial Bank of Commerce,
        5.45%, dated 6/28/96, to be repurchased at $17,407,903 on 7/1/96,
        collateralized by U.S. Treasury Bonds, 9.125%-11.25%, 2/15/15-5/11/18,
        with a value of $6,150,689, and U.S. Treasury Nts., 5.25%-8.50%,
        1/11/97-11/15/04, with a value of $11,623,981 (Cost $17,400,000)                  $17,400,000          17,400,000
        -----------------------------------------------------------------------------------------------------------------
        TOTAL INVESTMENTS, AT VALUE (COST $114,137,962)                                         100.0%        144,789,612
        -----------------------------------------------------------------------------------------------------------------
        LIABILITIES IN EXCESS OF OTHER ASSETS                                                    (0.0)            (67,404)
                                                                                          -----------        ------------
        NET ASSETS                                                                              100.0%       $144,722,208
                                                                                          ===========        ============

        1.  Non-income producing security.

        See accompanying Notes to Financial Statements.
</TABLE>

                                       36
<PAGE>   54
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                              PRINCIPAL             MARKET VALUE
                                                                                              AMOUNT(1)             (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                            <C>            <C>                      <C>       
MORTGAGE-BACKED OBLIGATIONS - 1.4%
- ----------------------------------------------------------------------------------------------------------------------------------
        Government National Mortgage Assn.:
        8%, 4/15/23                                                                           $    3,356,363           $3,398,352
        8%, 7/15/22                                                                                1,546,051            1,567,310
        --------------------------------------------------------------------------------------------------------------------------
        Resolution Trust Corp., Commercial Mtg. Pass-Through
        Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25                                             731,922              698,185
                                                                                                                       -----------

        Total Mortgage-Backed Obligations (Cost $5,728,187)                                                             5,663,847

- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 8.3%
- ----------------------------------------------------------------------------------------------------------------------------------
        U.S. Treasury Bonds, STRIPS, Zero Coupon:
        7.101%, 11/15/18                                                           (2)            24,500,000            5,033,891
        7.313%, 8/15/19                                                            (2)            26,800,000            5,221,387
        --------------------------------------------------------------------------------------------------------------------------
        U.S. Treasury Nts.:
        6.375%, 8/15/02                                                                            5,000,000            4,954,685
        6.75%, 5/31/97                                                                            10,300,000           10,390,125
        9.25%, 8/15/98                                                                             9,000,000            9,542,807
                                                                                                                  ----------------

        Total U.S. Government Obligations (Cost $34,746,543)                                                           35,142,895

- ----------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 16.4%
- ----------------------------------------------------------------------------------------------------------------------------------
        Argentina (Republic of):
        Bonds, Bonos de Consolidacion de Deudas, Series I, 5.445%,
        4/1/01                                                                  (3)(4)             2,411,806            2,163,275
        Par Bonds, 5.25%, 3/31/23                                                  (5)            14,000,000            7,691,179
        Past Due Interest Bonds, Series L, 6.312%, 3/31/05                         (4)             5,940,000            4,651,733
        --------------------------------------------------------------------------------------------------------------------------
        Bonos de la Tesoreria de la Federacion, Zero Coupon:
        13.124%, 10/3/96                                                           (2)MXP          5,615,100              684,836
        21.268%, 9/12/96                                                           (2)MXP          5,977,280              741,705
        --------------------------------------------------------------------------------------------------------------------------
        Brazil (Federal Republic of) Par Bonds, 5%, 4/15/24                        (5)             8,000,000            4,414,960
        --------------------------------------------------------------------------------------------------------------------------
        Canada (Government of) Bonds:
        8.50%, 4/1/02                                                                 CAD          1,500,000            1,168,974
        8.75%, 12/1/05                                                                CAD         12,200,000            9,634,964
        9.75%, 12/1/01                                                                CAD          3,000,000            2,459,850
        9.75%, 6/1/01                                                                 CAD          2,000,000            1,631,317
        --------------------------------------------------------------------------------------------------------------------------
        Denmark (Kingdom of) Bonds, 8%, 3/15/06                                       DKK         32,100,000            5,691,782
        --------------------------------------------------------------------------------------------------------------------------
        Eskom Depositary Receipts, Series E168, 11%, 6/1/08                           ZAR          8,570,000            1,563,255
        --------------------------------------------------------------------------------------------------------------------------
        Italy (Republic of) Treasury Bonds, Buoni del Tesoro
        Poliennali, 8.50%, 8/1/99                                                     ITL      2,700,000,000            1,765,008
        --------------------------------------------------------------------------------------------------------------------------
        New Zealand (Republic of) Bonds, 8%, 2/15/01                                  NZD         10,440,000            6,875,828
        --------------------------------------------------------------------------------------------------------------------------
        Poland (Republic of) Treasury Bills, Zero Coupon:
        24.131%, 11/13/96                                                          (2)PLZ          2,300,000              784,858
        21.811%, 7/3/96                                                            (2)PLZ          2,860,000            1,051,178
        24.426%, 9/4/96                                                            (2)PLZ          7,060,000            2,503,739
        --------------------------------------------------------------------------------------------------------------------------
        Queensland Treasury Corp. Exchangeable Gtd. Nts., 10.50%, 5/15/03             AUD          3,600,000            3,068,620
        --------------------------------------------------------------------------------------------------------------------------
        Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03                        AUD          6,000,000            4,548,184
        --------------------------------------------------------------------------------------------------------------------------
        United Kingdom Treasury Nts., 13%, 7/14/00                                    GBP          1,590,000            2,966,197
</TABLE>

                                       37
<PAGE>   55
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                PRINCIPAL       MARKET VALUE
                                                                                                AMOUNT(1)       (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>        <C>             <C>        
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
        Venezuela (Republic of) Front-Loaded Interest Reduction
        Bonds, Series B, 6.625%, 3/31/07                                             (4)        $4,000,000      $ 2,895,000
                                                                                                                ------------

        Total Foreign Government Obligations (Cost $66,770,851)                                                  68,956,442

- ----------------------------------------------------------------------------------------------------------------------------
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          537,055

- ----------------------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 12.8%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.6%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.5%
        --------------------------------------------------------------------------------------------------------------------
        NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03                                      1,350,000        1,383,750
        --------------------------------------------------------------------------------------------------------------------
        Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03                                    500,000          549,026
                                                                                                                ------------
                                                                                                                  1,932,776
- ----------------------------------------------------------------------------------------------------------------------------
METALS - 0.7%
        --------------------------------------------------------------------------------------------------------------------
        AK Steel Corp., 10.75% Sr. Gtd. Nts., 4/1/04                                             1,000,000        1,085,000
        --------------------------------------------------------------------------------------------------------------------
        Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01                                              200,000          198,000
        --------------------------------------------------------------------------------------------------------------------
        Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03                           1,000,000        1,072,500
        --------------------------------------------------------------------------------------------------------------------
        Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03                                          500,000          466,250
                                                                                                                ------------
                                                                                                                  2,821,750
- ----------------------------------------------------------------------------------------------------------------------------
PAPER - 0.4%
        --------------------------------------------------------------------------------------------------------------------
        Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01                                          500,000          515,000
        --------------------------------------------------------------------------------------------------------------------
        Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06                           1,000,000          892,500
        --------------------------------------------------------------------------------------------------------------------
        Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00                                   350,000          363,125
                                                                                                                ------------
                                                                                                                  1,770,625
- ----------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 4.9%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.5%
        --------------------------------------------------------------------------------------------------------------------
        Chrysler Financial Corp., 13.25% Nts., 10/15/99                                            500,000          594,385
        --------------------------------------------------------------------------------------------------------------------
        Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04                                             825,000          771,375
        --------------------------------------------------------------------------------------------------------------------
        Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec.
        Nts., Series B, 4/1/02                                                                     950,000          978,500
                                                                                                                ------------
                                                                                                                  2,344,260
- ----------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.6%
        --------------------------------------------------------------------------------------------------------------------
        Apple South, Inc., 9.75% Sr. Nts., 6/1/06                                                  400,000          395,000
        --------------------------------------------------------------------------------------------------------------------
        Foodmaker, Inc.:
        9.25% Sr. Nts., 3/1/99                                                                     450,000          444,375
        9.75% Sr. Sub. Nts., 6/1/02                                                                350,000          337,750
        --------------------------------------------------------------------------------------------------------------------
        Imax Corp., 7% Sr. Nts., 3/1/01                                              (5)           600,000          588,000
        --------------------------------------------------------------------------------------------------------------------
        Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03                                        750,000          738,750
                                                                                                                ------------
                                                                                                                  2,503,875
- ----------------------------------------------------------------------------------------------------------------------------
MEDIA - 3.3%
        --------------------------------------------------------------------------------------------------------------------
        American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04                (6)           749,948          524,964
</TABLE>

                                       38
<PAGE>   56
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                      PRINCIPAL       MARKET VALUE
                                                                                                      AMOUNT(1)       (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>        <C>             <C>        
MEDIA - 3.3%
        --------------------------------------------------------------------------------------------------------------------------
        Bell & Howell Co. (New), 0%/11.50% Sr. Disc. Debs.,
        Series B, 3/1/05                                                                   (6)        $1,000,000      $   687,500
        --------------------------------------------------------------------------------------------------------------------------
        Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04                             (6)           900,000          634,500
        --------------------------------------------------------------------------------------------------------------------------
        Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08                                  500,000          506,250
        --------------------------------------------------------------------------------------------------------------------------
        EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04                   (6)         1,100,000          803,000
        --------------------------------------------------------------------------------------------------------------------------
        EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec. Disc. Nts., 3/15/04     (6)(7)        500,000          312,500
        --------------------------------------------------------------------------------------------------------------------------
        Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., Series B, 11/1/03        (4)           650,000          646,750
        --------------------------------------------------------------------------------------------------------------------------
        International CableTel, Inc., 0%/10.875% Sr. Deferred Coupon Nts., 10/15/03        (6)           500,000          365,000
        --------------------------------------------------------------------------------------------------------------------------
        Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03                                                750,000          770,625
        --------------------------------------------------------------------------------------------------------------------------
        Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03                                      1,000,000        1,114,594
        --------------------------------------------------------------------------------------------------------------------------
        Panamsat LP/Panamsat Capital Corp.:
        0%/11.375% Sr. Sub. Disc. Nts., 8/1/03                                             (6)         1,000,000          875,000
        9.75% Sr. Sec. Nts., 8/1/00                                                                      500,000          520,000
        --------------------------------------------------------------------------------------------------------------------------
        People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04                        (6)           500,000          287,500
        --------------------------------------------------------------------------------------------------------------------------
        Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority Debs., 12/1/07                          1,000,000          977,500
        --------------------------------------------------------------------------------------------------------------------------
        SCI Television, Inc., 11% Sr. Nts., Series 1, 6/30/05                                            500,000          522,500
        --------------------------------------------------------------------------------------------------------------------------
        SFX Broadcasting, Inc., 10.75% Sr. Sub. Nts., 5/15/06                              (7)           540,000          540,000
        --------------------------------------------------------------------------------------------------------------------------
        Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05                                       500,000          487,500
        --------------------------------------------------------------------------------------------------------------------------
        TeleWest PLC, 9.625% Sr. Debs., 10/1/06                                                          500,000          486,250
        --------------------------------------------------------------------------------------------------------------------------
        Time Warner Entertainment LP/Time Warner, Inc.:
        10.15% Sr. Nts., 5/1/12                                                                          500,000          577,118
        8.375% Sr. Debs., 3/15/23                                                                        500,000          486,814
        --------------------------------------------------------------------------------------------------------------------------
        Time Warner, Inc., 9.125% Debs., 1/15/13                                                         500,000          523,539
        --------------------------------------------------------------------------------------------------------------------------
        TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07                                                  1,000,000        1,113,348
                                                                                                                      ------------
                                                                                                                       13,762,752
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 0.1%
        --------------------------------------------------------------------------------------------------------------------------
        Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02                                       600,000          637,500
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 0.4%
        --------------------------------------------------------------------------------------------------------------------------
        Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01                                            1,000,000        1,057,500
        --------------------------------------------------------------------------------------------------------------------------
        Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03                                              750,000          753,750
                                                                                                                      ------------
                                                                                                                        1,811,250
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 1.6%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD - 0.5%
        --------------------------------------------------------------------------------------------------------------------------
        Grand Union Co., 12% Sr. Nts., 9/1/04                                                          1,103,000        1,035,441
        --------------------------------------------------------------------------------------------------------------------------
        Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05                                                  500,000          361,250
        --------------------------------------------------------------------------------------------------------------------------
        Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99                                     300,000          324,375
        --------------------------------------------------------------------------------------------------------------------------
        RJR Nabisco, Inc., 8.625% Medium-Term Nts., 12/1/02                                              500,000          507,944
                                                                                                                      ------------
                                                                                                                        2,229,010
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 0.4%
        --------------------------------------------------------------------------------------------------------------------------
        Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02                                        1,000,000        1,115,000
</TABLE>

                                       39
<PAGE>   57
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                      PRINCIPAL       MARKET VALUE
                                                                                                      AMOUNT(1)       (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>         <C>             <C>      
HEALTHCARE/SUPPLIES & SERVICES (CONTINUED)
        --------------------------------------------------------------------------------------------------------------------------
        Magellan Health Services, Inc., 11.25% Sr. Sub. Nts.,
        Series A, 4/15/04                                                                             $  500,000      $  540,000
                                                                                                                      -----------
                                                                                                                       1,655,000
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.7%
        -------------------------------------------------------------------------------------------------------------------------
        Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
        Series B, 11.404%, 5/27/98                                                         (2)         1,500,000       1,263,750
        -------------------------------------------------------------------------------------------------------------------------
        Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02                               1,000,000       1,095,000
        -------------------------------------------------------------------------------------------------------------------------
        Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., 13.169%, 3/15/98          (2)           500,000         418,750
                                                                                                                      -----------
                                                                                                                       2,777,500
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.3%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.3%
        -------------------------------------------------------------------------------------------------------------------------
        OPI International, Inc., 12.875% Sr. Gtd. Nts., 7/15/02                                        1,000,000       1,110,000
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 0.3%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS - 0.1%
        -------------------------------------------------------------------------------------------------------------------------
        First Chicago Corp.:
        11.25% Sub. Nts., 2/20/01                                                                        250,000         292,350
        9% Sub. Nts., 6/15/99                                                                            250,000         265,803
                                                                                                                      -----------
                                                                                                                         558,153
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 0.2%
        -------------------------------------------------------------------------------------------------------------------------
        GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98                                                  1,000,000       1,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 1.5%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.7%
        -------------------------------------------------------------------------------------------------------------------------
        American Standard, Inc., 10.875% Sr. Nts., 5/15/99                                               500,000         528,750
        -------------------------------------------------------------------------------------------------------------------------
        Owens-Illinois, Inc.:
        10% Sr. Sub. Nts., 8/1/02                                                                        500,000         512,500
        11% Sr. Debs., 12/1/03                                                                           500,000         538,750
        -------------------------------------------------------------------------------------------------------------------------
        Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03                                                      425,000         415,438
        -------------------------------------------------------------------------------------------------------------------------
        Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03                                                  850,000         875,500
                                                                                                                      -----------
                                                                                                                       2,870,938
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.3%
        -------------------------------------------------------------------------------------------------------------------------
        EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03                                                    1,250,000       1,150,000
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.4%
        -------------------------------------------------------------------------------------------------------------------------
        Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05                       (6)         1,074,000         859,200
        -------------------------------------------------------------------------------------------------------------------------
        Terex Corp., 13.75% Sr. Sec. Nts., 5/15/02                                         (7)         1,000,000       1,040,000
                                                                                                                      -----------
                                                                                                                       1,899,200
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.1%
        -------------------------------------------------------------------------------------------------------------------------
        Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04                                        500,000         517,500
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 1.8%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.2%
        -------------------------------------------------------------------------------------------------------------------------
        Unisys Corp., 15% Credit Sensitive Nts., 7/1/97                                    (4)           650,000         693,875
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 1.6%
        -------------------------------------------------------------------------------------------------------------------------
        360 Communications Co., 7.50% Sr. Nts., 3/1/06                                                   500,000         475,230
        -------------------------------------------------------------------------------------------------------------------------
        Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts.,
        12/1/04                                                                            (6)           800,000         594,000
        -------------------------------------------------------------------------------------------------------------------------
        Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.829%, 3/5/00                 (2)         1,000,000         690,000
</TABLE>

                                       40
<PAGE>   58
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                    PRINCIPAL       MARKET VALUE
                                                                                                    AMOUNT(1)       (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                       <C>       <C>             <C>        
TELECOMMUNICATIONS-TECHNOLOGY (CONTINUED)
        ------------------------------------------------------------------------------------------------------------------------
        Horizon Cellular Telephone LP/Horizon Finance Corp.,
        0%/11.375% Sr. Sub. Disc. Nts., 10/1/00                                           (6)       $1,200,000      $ 1,131,000
        ------------------------------------------------------------------------------------------------------------------------
        IntelCom Group (USA), Inc., 0%/13.50% Sr. Disc. Nts., 9/15/05                     (6)        1,000,000          602,500
        ------------------------------------------------------------------------------------------------------------------------
        MFS Communications Co., Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04                   (6)        1,850,000        1,406,000
        ------------------------------------------------------------------------------------------------------------------------
        PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01                  (6)        1,000,000          910,000
        ------------------------------------------------------------------------------------------------------------------------
        USA Mobile Communications, Inc. II, 9.50% Sr. Nts., 2/1/04                                   1,000,000          930,000
                                                                                                                    ------------
                                                                                                                      6,738,730
- --------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.8%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.4%
        ------------------------------------------------------------------------------------------------------------------------
        First PV Funding Corp., 10.15% Lease Obligation Bonds,
        Series 1986B, 1/15/16                                                                        1,500,000        1,578,750    
- --------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.4%
        ------------------------------------------------------------------------------------------------------------------------
        Beaver Valley II Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17                       989,000          803,563
        ------------------------------------------------------------------------------------------------------------------------
        California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04                          (6)          750,000          735,000
                                                                                                                    ------------
                                                                                                                      1,538,563
                                                                                                                     -----------

        Total Non-Convertible Corporate Bonds and Notes (Cost $52,822,980)                                           53,902,007

- --------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES - 0.2%
- --------------------------------------------------------------------------------------------------------------------------------
        ------------------------------------------------------------------------------------------------------------------------
        Castorama Dubois Investments, 3.15% Cv. Bonds, 1/1/03                                FRF       165,000           38,461
        ------------------------------------------------------------------------------------------------------------------------
        MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03                                          1,000,000          850,000
                                                                                                                     -----------

        Total Convertible Corporate Bonds and Notes (Cost $966,302)                                                     888,461

                                                                                                    SHARES
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 42.7%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.1%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.6%
        -----------------------------------------------------------------------------------------------------------------------
        Agrium, Inc.                                                                                 80,000          1,048,750
        -----------------------------------------------------------------------------------------------------------------------
        ARCO Chemical Co.                                                                            17,900            930,800
        -----------------------------------------------------------------------------------------------------------------------
        Bayer AG, Sponsored ADR                                                                      70,000          2,471,847
        -----------------------------------------------------------------------------------------------------------------------
        Dow Chemical Co. (The)                                                                        8,000            608,000
        -----------------------------------------------------------------------------------------------------------------------
        Georgia Gulf Corp.                                                                           20,400            596,700
        -----------------------------------------------------------------------------------------------------------------------
        IMC Global, Inc.                                                                              7,600            285,950
        -----------------------------------------------------------------------------------------------------------------------
        Sybron Chemical Industries, Inc.                                                  (8)        48,000            696,000
                                                                                                                 --------------
                                                                                                                     6,638,047
- -------------------------------------------------------------------------------------------------------------------------------
GOLD - 0.2%
        -----------------------------------------------------------------------------------------------------------------------
        Santa Fe Pacific Gold Corp.                                                                  70,000            988,750
- -------------------------------------------------------------------------------------------------------------------------------
METALS - 0.6%
        -----------------------------------------------------------------------------------------------------------------------
        Brush Wellman, Inc.                                                                          69,300          1,316,700
        -----------------------------------------------------------------------------------------------------------------------
        Inco Ltd.                                                                                    15,200            490,200
        -----------------------------------------------------------------------------------------------------------------------
        J&L Specialty Steel, Inc.                                                                    45,500            676,812
                                                                                                                 --------------
                                                                                                                     2,483,712
</TABLE>

                                       41
<PAGE>   59
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                               MARKET VALUE
                                                                                          SHARES               (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                <C>            <C>    
PAPER - 0.7%
        ------------------------------------------------------------------------------------------------------------------
        Aracruz Celulose SA, Sponsored ADR, Cl. B                                                 121,000      $1,149,500
        ------------------------------------------------------------------------------------------------------------------
        MacMillan Bloedel Ltd.                                                                     76,830       1,018,309
        ------------------------------------------------------------------------------------------------------------------
        MacMillan Bloedel Ltd.                                                                      4,200          55,650
        ------------------------------------------------------------------------------------------------------------------
        Stone Container Corp.                                                                      54,000         742,500
                                                                                                               -----------
                                                                                                                2,965,959
- --------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 8.2%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 1.2%
        ------------------------------------------------------------------------------------------------------------------
        Chromcraft Revington, Inc.                                              (8)                18,500         432,437
        ------------------------------------------------------------------------------------------------------------------
        Eaton Corp.                                                                                14,000         820,750
        ------------------------------------------------------------------------------------------------------------------
        Excel Industries, Inc.                                                                     52,000         650,000
        ------------------------------------------------------------------------------------------------------------------
        Fiat SpA                                                                                  310,000       1,038,422
        ------------------------------------------------------------------------------------------------------------------
        General Motors Corp.                                                                       22,500       1,178,437
        ------------------------------------------------------------------------------------------------------------------
        IRSA Inversiones y Representaciones, SA                                                   214,506         730,355
                                                                                                               -----------
                                                                                                                4,850,401
- --------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 3.6%
        ------------------------------------------------------------------------------------------------------------------
        AMR Corp.                                                                                  16,700       1,519,700
        ------------------------------------------------------------------------------------------------------------------
        Carnival Corp., Cl. A                                                                      34,100         984,637
        ------------------------------------------------------------------------------------------------------------------
        Cheesecake Factory (The)                                                (8)                24,000         660,000
        ------------------------------------------------------------------------------------------------------------------
        Circus Circus Enterprises, Inc.                                         (8)(10)            34,000       1,394,000
        ------------------------------------------------------------------------------------------------------------------
        Cracker Barrel Old Country Store, Inc.                                                     64,000       1,552,000
        ------------------------------------------------------------------------------------------------------------------
        Disney (Walt) Co.                                                                          23,493       1,477,122
        ------------------------------------------------------------------------------------------------------------------
        Eastman Kodak Co.                                                       10)                18,000       1,399,500
        ------------------------------------------------------------------------------------------------------------------
        International Game Technology                                                              60,000       1,012,500
        ------------------------------------------------------------------------------------------------------------------
        King World Productions, Inc.                                            (8)(10)            31,000       1,127,625
        ------------------------------------------------------------------------------------------------------------------
        Mattel, Inc.                                                                               32,296         924,480
        ------------------------------------------------------------------------------------------------------------------
        Primadonna Resorts, Inc.                                                (8)                45,000       1,035,000
        ------------------------------------------------------------------------------------------------------------------
        Shimano, Inc.                                                                              70,000       1,250,895
        ------------------------------------------------------------------------------------------------------------------
        U S West Media Group                                                    (8)                45,700         834,025
                                                                                                               -----------
                                                                                                               15,171,484
- --------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.1%
        ------------------------------------------------------------------------------------------------------------------
        Bowne & Co., Inc.                                                                          39,100         806,437
        ------------------------------------------------------------------------------------------------------------------
        Comcast Corp., Cl. A Special                                                               75,000       1,387,500
        ------------------------------------------------------------------------------------------------------------------
        Dow Jones & Co., Inc.                                                                      19,400         809,950
        ------------------------------------------------------------------------------------------------------------------
        South China Morning Post Holdings Ltd.                                                  1,800,000       1,232,477
        ------------------------------------------------------------------------------------------------------------------
        Time Warner, Inc.                                                                          13,200         518,100
                                                                                                               -----------
                                                                                                                4,754,464
- --------------------------------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 1.1%
        ------------------------------------------------------------------------------------------------------------------
        Cone Mills Corp.                                                        (8)               162,300       1,825,875
        ------------------------------------------------------------------------------------------------------------------
        Price/Costco, Inc.                                                      (8)                58,900       1,273,712
        ------------------------------------------------------------------------------------------------------------------
        Tuesday Morning Corp.                                                   (8)                54,500         728,937
        ------------------------------------------------------------------------------------------------------------------
        Wal-Mart Stores, Inc.                                                                      33,700         855,137
                                                                                                               -----------
                                                                                                                4,683,661
- --------------------------------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 1.2%
        ------------------------------------------------------------------------------------------------------------------
        Books-A-Million, Inc.                                                   (8)                84,800         710,200
        ------------------------------------------------------------------------------------------------------------------
        Burlington Coat Factory Warehouse Corp.                                 (8)                62,000         651,000
        ------------------------------------------------------------------------------------------------------------------
        Castorama Dubois Investissements LP                                                         4,131         813,668
        ------------------------------------------------------------------------------------------------------------------
        Gymboree Corp.                                                          (8)(10)            28,900         881,450
        ------------------------------------------------------------------------------------------------------------------
        Toys 'R' Us, Inc.                                                       (8)                49,200       1,402,200
</TABLE>

                                       42
<PAGE>   60
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                  MARKET VALUE
                                                                                           SHARES                 (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>                  <C>         <C>        
RETAIL:  SPECIALTY (CONTINUED)
        ----------------------------------------------------------------------------------------------------------------------
        Tractor Supply Co.                                                       (8)                  30,000      $   682,500
                                                                                                                  ------------
                                                                                                                    5,141,018
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 7.8%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.5%
        ----------------------------------------------------------------------------------------------------------------------
        Buenos Aires Embotelladora SA, Sponsored ADR                                                  35,000          463,750
        ----------------------------------------------------------------------------------------------------------------------
        Guinness PLC                                                                                 100,000          727,179
        ----------------------------------------------------------------------------------------------------------------------
        Whitman Corp.                                                           (10)                  43,400        1,047,025
                                                                                                                  ------------
                                                                                                                    2,237,954
- ------------------------------------------------------------------------------------------------------------------------------
FOOD - 1.0%
        ----------------------------------------------------------------------------------------------------------------------
        Chiquita Brands International, Inc.                                                           18,880          245,440
        ----------------------------------------------------------------------------------------------------------------------
        Grand Union Co.                                                          (8)                   6,185           40,202
        ----------------------------------------------------------------------------------------------------------------------
        Groupe Danone                                                                                  5,013          758,559
        ----------------------------------------------------------------------------------------------------------------------
        IBP, Inc.                                                               (10)                  31,500          870,187
        ----------------------------------------------------------------------------------------------------------------------
        Nestle SA, Sponsored ADR                                                                      12,000          685,020
        ----------------------------------------------------------------------------------------------------------------------
        Sara Lee Corp.                                                          (10)                  43,800        1,418,025
                                                                                                                  ------------
                                                                                                                    4,017,433
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 3.8%
        ----------------------------------------------------------------------------------------------------------------------
        Abbott Laboratories                                                                           20,000          870,000
        ----------------------------------------------------------------------------------------------------------------------
        Agouron Pharmaceuticals, Inc.                                            (8)                  17,000          663,000
        ----------------------------------------------------------------------------------------------------------------------
        American Home Products Corp.                                                                  20,000        1,202,500
        ----------------------------------------------------------------------------------------------------------------------
        Astra AB Free, Series A                                                                       15,500          684,427
        ----------------------------------------------------------------------------------------------------------------------
        Bristol-Myers Squibb Co.                                                                      25,000        2,250,000
        ----------------------------------------------------------------------------------------------------------------------
        Ciba-Geigy AG                                                                                  2,700        3,289,681
        ----------------------------------------------------------------------------------------------------------------------
        Foundation Health Corp.                                                  (8)                  24,000          861,000
        ----------------------------------------------------------------------------------------------------------------------
        Genzyme Corp.                                                            (8)(10)              24,000        1,206,000
        ----------------------------------------------------------------------------------------------------------------------
        Johnson & Johnson                                                                             29,800        1,475,100
        ----------------------------------------------------------------------------------------------------------------------
        Mylan Laboratories, Inc.                                                                      43,000          741,750
        ----------------------------------------------------------------------------------------------------------------------
        NBTY, Inc.                                                               (8)                 167,000        1,680,438
        ----------------------------------------------------------------------------------------------------------------------
        SmithKline Beecham PLC, ADR                                                                   22,500        1,223,438
                                                                                                                  ------------
                                                                                                                   16,147,334
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.3%
        ----------------------------------------------------------------------------------------------------------------------
        Biomet, Inc.                                                             (8)                  45,100          648,313
        ----------------------------------------------------------------------------------------------------------------------
        Cardinal Health, Inc.                                                   (10)                   4,146          299,030
        ----------------------------------------------------------------------------------------------------------------------
        Manor Care, Inc.                                                        (10)                  24,985          983,784
        ----------------------------------------------------------------------------------------------------------------------
        Medtronic, Inc.                                                                               15,700          879,200
        ----------------------------------------------------------------------------------------------------------------------
        Nellcor Puritan Bennett, Inc.                                            (8)                   6,600          320,100
        ----------------------------------------------------------------------------------------------------------------------
        Sofamor Danek Group, Inc.                                                (8)                  15,000          416,250
        ----------------------------------------------------------------------------------------------------------------------
        U.S. Healthcare, Inc.                                                   (10)                  18,900        1,039,500
        ----------------------------------------------------------------------------------------------------------------------
        WellPoint Health Networks, Inc.                                          (8)(10)              30,481          952,531
                                                                                                                  ------------
                                                                                                                    5,538,708
- ------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 0.7%
        ----------------------------------------------------------------------------------------------------------------------
        Kimberly-Clark Corp.                                                                          13,100        1,011,975
        ----------------------------------------------------------------------------------------------------------------------
        Procter & Gamble Co.                                                    (10)                  12,000        1,087,500
        ----------------------------------------------------------------------------------------------------------------------
        Scott's Liquid Gold, Inc.                                                (8)                  57,200          121,550
        ----------------------------------------------------------------------------------------------------------------------
        Wella AG                                                                                       1,550          888,979
                                                                                                                  ------------
                                                                                                                    3,110,004
- ------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.5%
        ----------------------------------------------------------------------------------------------------------------------
        Philip Morris Cos., Inc.                                                                      21,300        2,215,200

</TABLE>

                                       43
<PAGE>   61
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                   MARKET VALUE
                                                                                           SHARES                  (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                    <C>         <C>        
ENERGY - 2.5%
- -------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 0.8%
        -----------------------------------------------------------------------------------------------------------------------
        Kerr-McGee Corp.                                                        (10)                   12,000      $   730,500
        -----------------------------------------------------------------------------------------------------------------------
        Landmark Graphics Corp.                                                  (8)                   59,200        1,139,600
        -----------------------------------------------------------------------------------------------------------------------
        Western Atlas, Inc.                                                      (8)                   22,000        1,281,500
                                                                                                                   ------------
                                                                                                                     3,151,600
- -------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 1.7%
        -----------------------------------------------------------------------------------------------------------------------
        Atlantic Richfield Co.                                                                         11,900        1,410,150
        -----------------------------------------------------------------------------------------------------------------------
        Enterprise Oil PLC                                                                            118,000          843,403
        -----------------------------------------------------------------------------------------------------------------------
        Louisiana Land & Exploration Co.                                                               23,100        1,331,138
        -----------------------------------------------------------------------------------------------------------------------
        Royal Dutch Petroleum Co.                                                                       9,500        1,460,625
        -----------------------------------------------------------------------------------------------------------------------
        Saga Petroleum AS, Cl. A                                                                       12,000          176,407
        -----------------------------------------------------------------------------------------------------------------------
        Saga Petroleum AS, Cl. B                                                                       19,000          257,376
        -----------------------------------------------------------------------------------------------------------------------
        Total SA, Sponsored ADR                                                 (10)                   21,701          805,650
        -----------------------------------------------------------------------------------------------------------------------
        Unocal Corp.                                                                                   22,000          742,500
        -----------------------------------------------------------------------------------------------------------------------
        Yukong Ltd., GDR                                                         (7)                   27,500          179,677
        -----------------------------------------------------------------------------------------------------------------------
        Yukong Ltd., GDR                                                                                  958            8,153
        -----------------------------------------------------------------------------------------------------------------------
        Yukong Ltd., GDR                                                                                2,336           19,879
                                                                                                                   ------------
                                                                                                                     7,234,958
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 5.4%
- -------------------------------------------------------------------------------------------------------------------------------
BANKS - 2.6%
        -----------------------------------------------------------------------------------------------------------------------
        Akbank T.A.S.                                                                               2,660,750          320,602
        -----------------------------------------------------------------------------------------------------------------------
        Banco Frances del Rio de la Plata SA                                                           87,000          838,127
        -----------------------------------------------------------------------------------------------------------------------
        Chase Manhattan Corp. (New)                                             (10)                   58,000        4,096,250
        -----------------------------------------------------------------------------------------------------------------------
        Citicorp                                                                (10)                   13,000        1,074,125
        -----------------------------------------------------------------------------------------------------------------------
        Deutsche Bank, Sponsored ADR                                                                   13,250          626,749
        -----------------------------------------------------------------------------------------------------------------------
        NationsBank Corp.                                                                              49,600        4,098,200
                                                                                                                   ------------
                                                                                                                    11,054,053
- -------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.1%
        -----------------------------------------------------------------------------------------------------------------------
        American Express Co.                                                                           35,000        1,561,875
        -----------------------------------------------------------------------------------------------------------------------
        Dean Witter, Discover & Co.                                                                    15,000          858,750
        -----------------------------------------------------------------------------------------------------------------------
        Federal Home Loan Mortgage Corp.                                                                9,700          829,350
        -----------------------------------------------------------------------------------------------------------------------
        H & R Block, Inc.                                                       (10)                   26,000          848,250
        -----------------------------------------------------------------------------------------------------------------------
        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)(11)               40,000          505,000
                                                                                                                   ------------
                                                                                                                     4,603,225
- -------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 1.7%
        -----------------------------------------------------------------------------------------------------------------------
        ACE Ltd.                                                                                       21,600        1,015,200
        -----------------------------------------------------------------------------------------------------------------------
        Aetna Life & Casualty Co.                                                                       4,400          314,600
        -----------------------------------------------------------------------------------------------------------------------
        American International Group, Inc.                                                             12,600        1,242,675
        -----------------------------------------------------------------------------------------------------------------------
        American Re Corp.                                                       (10)                   43,400        1,947,575
        -----------------------------------------------------------------------------------------------------------------------
        Berkley (W.R.) Corp.                                                                           21,000          876,750
        -----------------------------------------------------------------------------------------------------------------------
        Skandia Forsakrings AB                                                                         40,000        1,057,950
        -----------------------------------------------------------------------------------------------------------------------
        UNUM Corp.                                                                                     13,600          846,600
                                                                                                                   ------------
                                                                                                                     7,301,350
</TABLE>

                                       44
<PAGE>   62
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                MARKET VALUE
                                                                                           SHARES               (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                  <C>          <C>      
INDUSTRIAL - 4.3%
- ----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.5%
        --------------------------------------------------------------------------------------------------------------------
        Core Industries, Inc.                                                                        50,000      $  718,750
        --------------------------------------------------------------------------------------------------------------------
        General Electric Co.                                                    (10)                 18,000       1,557,000
                                                                                                                 -----------
                                                                                                                  2,275,750
- ----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 0.8%
        --------------------------------------------------------------------------------------------------------------------
        Insituform Technologies, Cl. A                                           (8)                 83,000         643,250
        --------------------------------------------------------------------------------------------------------------------
        Interpool, Inc.                                                                              37,500         684,375
        --------------------------------------------------------------------------------------------------------------------
        Owens Corning                                                                                30,000       1,290,000
        --------------------------------------------------------------------------------------------------------------------
        Walter Industries, Inc.                                                  (8)                  2,645          37,361
        --------------------------------------------------------------------------------------------------------------------
        Wolverine Tube, Inc.                                                     (8)                 24,200         847,000
                                                                                                                 -----------
                                                                                                                  3,501,986
- ----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.2%
        --------------------------------------------------------------------------------------------------------------------
        Ecolab, Inc.                                                            (10)                 23,400         772,200
- ----------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 1.6%
        --------------------------------------------------------------------------------------------------------------------
        Citic Pacific Ltd.                                                                          216,000         873,431
        --------------------------------------------------------------------------------------------------------------------
        Griffon Corp.                                                            (8)                 64,000         520,000
        --------------------------------------------------------------------------------------------------------------------
        Harnischfeger Industries, Inc.                                          (10)                 15,800         525,350
        --------------------------------------------------------------------------------------------------------------------
        Hutchison Whampoa Ltd.                                                                      128,000         805,322
        --------------------------------------------------------------------------------------------------------------------
        Mannesmann AG                                                                                 2,400         826,206
        --------------------------------------------------------------------------------------------------------------------
        Pacific Dunlop Ltd.                                                                         400,000         900,389
        --------------------------------------------------------------------------------------------------------------------
        Tenneco, Inc.                                                           (10)                 26,000       1,329,250
        --------------------------------------------------------------------------------------------------------------------
        Westinghouse Air Brake Co.                                                                   55,000         721,875
                                                                                                                 -----------
                                                                                                                  6,501,823
- ----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.2%
        --------------------------------------------------------------------------------------------------------------------
        Airborne Freight Corp.                                                  (10)                 37,000         962,000
        --------------------------------------------------------------------------------------------------------------------
        Burlington Northern Santa Fe Corp.                                      (10)                 15,600       1,261,650
        --------------------------------------------------------------------------------------------------------------------
        Canadian National Railway Co.                                                                38,000         699,828
        --------------------------------------------------------------------------------------------------------------------
        Consolidated Freightways, Inc.                                                               12,200         257,725
        --------------------------------------------------------------------------------------------------------------------
        Spartan Motors, Inc.                                                                         75,000         562,500
        --------------------------------------------------------------------------------------------------------------------
        Stolt-Nielsen SA                                                                             44,100         799,313
        --------------------------------------------------------------------------------------------------------------------
        Stolt-Nielsen SA, ADR                                                                        22,050         410,681
                                                                                                                 -----------
                                                                                                                  4,953,697
- ----------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 10.0%
- ----------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.3%
        --------------------------------------------------------------------------------------------------------------------
        Rockwell International Corp.                                            (10)                 17,900       1,024,775
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 1.6%
        --------------------------------------------------------------------------------------------------------------------
        Digital Equipment Corp.                                                  (8)                 17,000         765,000
        --------------------------------------------------------------------------------------------------------------------
        EMC Corp.                                                                (8)                 30,300         564,338
        --------------------------------------------------------------------------------------------------------------------
        International Business Machines Corp.                                   (10)                 17,500       1,732,500
        --------------------------------------------------------------------------------------------------------------------
        Moore Corp. Ltd.                                                                             31,600         596,450
        --------------------------------------------------------------------------------------------------------------------
        Seagate Technology, Inc.                                                 (8)                 11,700         526,500
        --------------------------------------------------------------------------------------------------------------------
        Silicon Graphics, Inc.                                                   (8)                 15,000         360,000
        --------------------------------------------------------------------------------------------------------------------
        Storage Technology Corp. (New)                                          (10)                 13,100         501,075
        --------------------------------------------------------------------------------------------------------------------
        Sun Microsystems, Inc.                                                  (10)                  7,000         412,125
        --------------------------------------------------------------------------------------------------------------------
        Xerox Corp.                                                             (10)                 25,500       1,364,250
                                                                                                                 -----------
                                                                                                                  6,822,238
- ----------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.3%
        --------------------------------------------------------------------------------------------------------------------
        American Software, Inc.                                                                     100,000         462,500
</TABLE>

                                       45
<PAGE>   63
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                 MARKET VALUE
                                                                                           SHARES                (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>                 <C>             <C>    
COMPUTER SOFTWARE (CONTINUED)
        ---------------------------------------------------------------------------------------------------------------------
        Computer Associates International, Inc.                                 (10)                 28,650      $ 2,041,313
        ---------------------------------------------------------------------------------------------------------------------
        Davidson & Associates, Inc.                                              (8)                 27,200          816,000
        ---------------------------------------------------------------------------------------------------------------------
        Electronic Arts, Inc.                                                    (8)                 41,300        1,104,775
        ---------------------------------------------------------------------------------------------------------------------
        Inference Corp., Cl. A                                                   (8)                 40,000          960,000
        ---------------------------------------------------------------------------------------------------------------------
        Informix Corp.                                                          (10)                 35,200          792,000
        ---------------------------------------------------------------------------------------------------------------------
        Microsoft Corp.                                                          (8)                  4,900          588,613
        ---------------------------------------------------------------------------------------------------------------------
        Nintendo Co. Ltd.                                                                            32,000        2,380,712
        ---------------------------------------------------------------------------------------------------------------------
        Novell, Inc.                                                             (8)                130,900        1,816,238
        ---------------------------------------------------------------------------------------------------------------------
        Structural Dynamics Research Corp.                                       (8)                 31,000          682,000
        ---------------------------------------------------------------------------------------------------------------------
        Sybase, Inc.                                                             (8)                 30,000          708,750
        ---------------------------------------------------------------------------------------------------------------------
        Symantec Corp.                                                           (8)                117,364        1,467,050
                                                                                                                 ------------
                                                                                                                  13,819,951
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.3%
        ---------------------------------------------------------------------------------------------------------------------
        CAE, Inc.                                                                                   115,433          959,392
        ---------------------------------------------------------------------------------------------------------------------
        Duracell International, Inc.                                                                 16,200          698,625
        ---------------------------------------------------------------------------------------------------------------------
        General Motors Corp., Cl. H                                             (10)                 16,600          998,075
        ---------------------------------------------------------------------------------------------------------------------
        Hewlett-Packard Co.                                                                          15,000        1,494,375
        ---------------------------------------------------------------------------------------------------------------------
        Intel Corp.                                                                                  55,400        4,068,438
        ---------------------------------------------------------------------------------------------------------------------
        Kyocera Corp.                                                                                14,000          989,228
        ---------------------------------------------------------------------------------------------------------------------
        LSI Logic Corp.                                                          (8)(10)             24,000          624,000
        ---------------------------------------------------------------------------------------------------------------------
        Nokia Corp., Preference                                                                      20,300          751,100
        ---------------------------------------------------------------------------------------------------------------------
        Proxima Corp.                                                            (8)                 70,000          848,750
        ---------------------------------------------------------------------------------------------------------------------
        Samsung Electronics, GDR                                                 (8)                  1,320           37,125
        ---------------------------------------------------------------------------------------------------------------------
        Samsung Electronics, GDR (New)                                           (8)                     33            1,687
        ---------------------------------------------------------------------------------------------------------------------
        Teradyne, Inc.                                                           (8)                 49,000          845,250
        ---------------------------------------------------------------------------------------------------------------------
        VLSI Technology, Inc.                                                    (8)                 58,300          808,913
        ---------------------------------------------------------------------------------------------------------------------
        Xilinx, Inc.                                                             (8)                 18,200          577,850
                                                                                                                 ------------
                                                                                                                  13,702,808
- -----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 1.5%
        ---------------------------------------------------------------------------------------------------------------------
        Airtouch Communications, Inc.                                            (8)(10)             50,000        1,412,500
        ---------------------------------------------------------------------------------------------------------------------
        Bay Networks, Inc.                                                       (8)(10)             16,607          427,630
        ---------------------------------------------------------------------------------------------------------------------
        ECI Telecommunications Ltd.                                             (10)                 51,000        1,185,750
        ---------------------------------------------------------------------------------------------------------------------
        Kinnevik Investments AB Free, Series B                                                       24,500          742,147
        ---------------------------------------------------------------------------------------------------------------------
        MCI Communications Corp.                                                                     47,000        1,204,375
        ---------------------------------------------------------------------------------------------------------------------
        NetCom Systems AB, B Shares                                              (8)                 24,500          276,921
        ---------------------------------------------------------------------------------------------------------------------
        Tellabs, Inc.                                                            (8)                 13,600          909,500
                                                                                                                 ------------
                                                                                                                   6,158,823
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.4%
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 0.5%
        ---------------------------------------------------------------------------------------------------------------------
        Public Service Enterprise Group, Inc.                                                        52,000        1,423,500
        ---------------------------------------------------------------------------------------------------------------------
        Verbund Oest Electriz                                                                         9,400          717,352
                                                                                                                 ------------
                                                                                                                   2,140,852
- -----------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.3%
        ---------------------------------------------------------------------------------------------------------------------
        Hong Kong & China Gas                                                                       232,512          370,974
        ---------------------------------------------------------------------------------------------------------------------
        Southwestern Energy Co.                                                                      72,500        1,024,063
                                                                                                                 ------------
                                                                                                                   1,395,037
- -----------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.6%
        ---------------------------------------------------------------------------------------------------------------------
        BCE, Inc.                                                                                    33,000        1,303,500
</TABLE>

                                       46
<PAGE>   64
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                    MARKET VALUE
                                                                                          SHARES                    (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                    <C>           <C>    
TELEPHONE UTILITIES (CONTINUED)
        -------------------------------------------------------------------------------------------------------------------------
        Portugal Telecom SA                                                                             15,900      $    415,321
        -------------------------------------------------------------------------------------------------------------------------
        U S West Communications Group                                                                   28,000           892,500
                                                                                                                    -------------
                                                                                                                       2,611,321
                                                                                                                    -------------

        Total Common Stocks (Cost $135,517,312)                                                                      179,970,576

- ---------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 1.2%
- ---------------------------------------------------------------------------------------------------------------------------------
        Alumax, Inc., $4.00 Cv., Series A                                                                8,000         1,043,000
        -------------------------------------------------------------------------------------------------------------------------
        Cyprus Amax Minerals Co., $4.00 Cv., Series A                                                   24,000         1,314,000
        -------------------------------------------------------------------------------------------------------------------------
        Delta Air Lines, Inc., $3.50 Cv. Depositary Shares, Series C                                    13,200           831,600
        -------------------------------------------------------------------------------------------------------------------------
        K-III Communications Corp., Sr. Exchangeable, Series A                                          20,000           527,500
        -------------------------------------------------------------------------------------------------------------------------
        Pantry Pride, Inc., $14.875 Exchangeable, Series B                                               8,000           802,000
        -------------------------------------------------------------------------------------------------------------------------
        Time Warner, Inc., 10.25% Cum., Series K, Exchangeable
        Preferred Stock                                                         (3)(7)                     700           686,000
                                                                                                                     ------------

        Total Preferred Stocks (Cost $4,753,627)                                                                       5,204,100

                                                                                          UNITS
- ---------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
        American Telecasting, Inc. Wts., Exp. 6/99                                                       6,000            36,000
        -------------------------------------------------------------------------------------------------------------------------
        Hong Kong & China Gas Wts., Exp. 9/97                                                           29,376             7,685
        -------------------------------------------------------------------------------------------------------------------------
        Gaylord Container Corp. Wts., Exp. 11/02                                                         9,232            72,125
        -------------------------------------------------------------------------------------------------------------------------
        Icon Health & Fitness, Inc. Wts., Exp. 11/99                            (7)                      1,000            25,000
        -------------------------------------------------------------------------------------------------------------------------
        People's Choice TV Corp. Wts., Exp. 6/00                                                           500               500
        -------------------------------------------------------------------------------------------------------------------------
        Terex Corp. Rts., Exp. 5/02                                             (7)                      4,000             9,000
                                                                                                                     ------------

        Total Rights, Warrants and Certificates (Cost $28,557)                                                           150,310

                                                                                          PRINCIPAL
                                                                                          AMOUNT(1)
- ---------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 16.9%
- ---------------------------------------------------------------------------------------------------------------------------------
        Repurchase agreement with J. P. Morgan Securities,
        Inc., 5.45%, dated 6/28/96, to be repurchased at
        $71,332,382 on 7/1/96, collateralized by U.S. Treasury
        Bonds, 11.25%, 2/15/15, with a value of $66,574,086,
        and U.S. Treasury Nts., 8.50%, 5/15/97, with a value
        of $6,696,244 (Cost $71,300,000)                                                             $71,300,000      71,300,000

        -------------------------------------------------------------------------------------------------------------------------
        TOTAL INVESTMENTS, AT VALUE (COST $373,134,359)                                                    100.0%    421,715,693
        -------------------------------------------------------------------------------------------------------------------------
        OTHER ASSETS NET OF LIABILITIES                                                                      0.0         210,621
                                                                                             ------------------     -------------
        NET ASSETS                                                                                         100.0%   $421,926,314
                                                                                             ==================     =============
</TABLE>

                                       47
<PAGE>   65
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

- --------------------------------------------------------------------------------

         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                        NZD - New Zealand Dollar
         FRF - French Franc                        PLZ - Polish Zloty
         GBP - British Pound Sterling              ZAR - South African Rand
         2. For zero coupon bonds, the interest rate shown is the effective
         yield on the date of purchase.
         3. Interest or dividend is paid in kind.
         4. Represents the current interest rate for a variable rate security.
         5. Represents the current interest rate for an increasing rate
         security.
         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 $2,792,177 or
         0.66% of the Fund's net assets, at June 30, 1996.
         8. Non-income producing security.
         9. Identifies issues considered to be illiquid - See applicable note of
         Notes to Financial Statements.


                                       48
<PAGE>   66
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Statement of Investments (Continued)

- --------------------------------------------------------------------------------
10. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:

<TABLE>
<CAPTION>
                                                SHARES
                                               SUBJECT       EXPIRATION     EXERCISE         PREMIUM             MARKET VALUE
                                               TO CALL       DATE           PRICE            RECEIVED            (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>          <C>            <C>              <C>                 <C>           
Airborne Freight Corp.                          13,000       8/96           $       30       $       22,645      $        3,250
Airtouch Communications, Inc.                   10,000       7/96                   35               14,190                 625
American Re Corp.                                9,600       7/96                   45               17,711              12,600
Bay Networks, Inc.                              10,000       9/96                   35               43,449               6,875
Burlington Northern Santa Fe Corp.               2,600       7/96                   85                9,997               1,625
Cardinal Health,  Inc.                          10,200       7/96                   18               16,268             119,850
Chase Manhattan Corp.  (New)                    11,600       9/96                   70               46,050              60,900
Circus Circus Enterprises, Inc.                  6,800       9/96                   33               21,045              64,600
Citicorp                                         2,600       7/96                   75                8,697              19,825
Computer Associates International, Inc.          5,600       7/96                   75               22,623               5,600
ECI Telecommunications Ltd.                     11,900       8/96                   30               19,830               2,975
Eastman Kodak Co.                                3,600       7/96                   75               14,742              13,500
Ecolab, Inc.                                     2,500       7/96                   35                2,987                 781
General Electric Co.                             3,600       9/96                   80               11,142              28,800
General Motors Corp., Cl. H                      3,200       9/96                   65               12,304               6,000
Genzyme Corp.                                    4,200       7/96                   80               21,528                 263
Gymboree Corp.                                   6,400       7/96                   20                9,408              69,600
H & R Block, Inc.                               10,000       7/96                   40               20,529                 625
Harnischfeger Industries, Inc.                  10,600       8/96                   35               48,955               9,275
Harnischfeger Industries, Inc.                   5,200       8/96                   40                5,694               1,300
IBP, Inc.                                       31,500       11/96                  25               69,928             110,250
Informix Corp.                                  19,000       8/96                   35               84,927               2,375
International Business Machines Corp.            3,000       7/96                   12               14,160                 375
Kerr-McGee Corp.                                 2,400       7/96                   70                2,478                 600
King World Productions, Inc.                     9,000       8/96                   45               15,479               2,250
LSI Logic Corp.                                  6,000       7/96                   35               19,319                 750
LSI Logic Corp.                                  6,000       7/96                   45               15,194                 375
Manor Care, Inc.                                 4,800       7/96                   45                4,656                 600
Procter & Gamble Co.                             2,400       7/96                   95                4,578                 900
Rockwell International Corp.                     3,400       7/96                   65                8,823                 425
Sara Lee Corp.                                  10,000       7/96                   35               13,449                 625
Storage Technology Corp. (New)                  13,100       9/96                   23               60,194             211,237
Sun Microsystems, Inc.                           7,000       7/96                   48               56,331              84,000
Tenneco, Inc.                                    5,200       8/96                   60                7,644                 975
Total SA, Sponsored ADR                          4,400       8/96                   40                4,268               2,475
U.S. Healthcare, Inc.                            4,000       7/96                   55                5,380               2,500
Wellpoint Health Networks, Inc.                  9,000       7/96                   40                9,162               2,250
Whitman Corp.                                   10,000       9/96                   25                9,700               7,500
Xerox Corp.                                      5,100       7/96                   50               13,973              20,400
                                                                                             ---------------     ---------------
                                                                                             $      809,437      $      879,731
                                                                                             ===============     ===============
</TABLE>

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.



See accompanying Notes to Financial Statements.


                                       49
<PAGE>   67
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                         PRINCIPAL    MARKET VALUE
                                                                         AMOUNT(1)      (NOTE 1)
- --------------------------------------------------------------------------------------------------
<S>                                                          <C>        <C>           <C>         
FOREIGN GOVERNMENT OBLIGATIONS - 0.9%
- --------------------------------------------------------------------------------------------------
     Bonos de la Tesoreria de la Federacion, Zero Coupon,    (2) MXP    41,760,000    $  4,379,166
     36.916%, 4/3/97 (Cost $4,362,431)

                                                                            SHARES
- --------------------------------------------------------------------------------------------------
COMMON STOCKS - 95.3%
- --------------------------------------------------------------------------------------------------
BASIC MATERIALS - 4.9%
- --------------------------------------------------------------------------------------------------
CHEMICALS - 1.1%
     ---------------------------------------------------------------------------------------------
     Hoechst AG                                                             50,000       1,688,413
     ---------------------------------------------------------------------------------------------
     Minerals Technologies, Inc.                                           100,000       3,425,000
                                                                                      ------------
                                                                                         5,113,413
- --------------------------------------------------------------------------------------------------
GOLD - 2.3%
     ---------------------------------------------------------------------------------------------
     Anglo American Corp. of South Africa Ltd., ADR                         30,000       1,897,500
     ---------------------------------------------------------------------------------------------
     Free State Consolidated Gold Mines Ltd., ADR                          174,000       1,609,500
     ---------------------------------------------------------------------------------------------
     Homestake Mining Co.                                                   80,000       1,370,000
     ---------------------------------------------------------------------------------------------
     Newmont Mining Corp.                                                   80,500       3,974,688
     ---------------------------------------------------------------------------------------------
     Placer Dome, Inc.                                                     100,000       2,387,500
                                                                                      ------------
                                                                                        11,239,188
- --------------------------------------------------------------------------------------------------
METALS - 1.5%
     ---------------------------------------------------------------------------------------------
     Companhia Vale Do Rio Doce, Preference                                 92,000       1,782,173
     ---------------------------------------------------------------------------------------------
     Compania de Minas Buenaventura SA, Sponsored ADR        (3)            46,000         914,250
     ---------------------------------------------------------------------------------------------
     Freeport-McMoRan Copper & Gold, Inc., Cl. B                           107,000       3,410,625
     ---------------------------------------------------------------------------------------------
     Gencor Ltd., Unsponsored ADR                                          250,000         923,700
                                                                                      ------------
                                                                                         7,030,748
- --------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 13.5%
- --------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.4%
     ---------------------------------------------------------------------------------------------
     Autobacs Seven Co. Ltd.                                                23,000       2,222,800
     ---------------------------------------------------------------------------------------------
     IRSA Inversiones y Representaciones, SA                             1,028,807       3,502,904
     ---------------------------------------------------------------------------------------------
     Mahindra & Mahindra Ltd., GDR                           (4)           200,000       2,150,000
     ---------------------------------------------------------------------------------------------
     Volkswagen AG                                                          10,000       3,721,736
                                                                                      ------------
                                                                                        11,597,440
- --------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 0.7%
     ---------------------------------------------------------------------------------------------
     Lusomundo SGPS SA                                                     205,200       1,271,573
     ---------------------------------------------------------------------------------------------
     Resorts World Berhad                                                  350,000       2,005,821
                                                                                      ------------
                                                                                         3,277,394
- --------------------------------------------------------------------------------------------------
MEDIA - 2.4%
     ---------------------------------------------------------------------------------------------
     Grupo Televisa SA, Sponsored ADR                        (4)            64,900       1,995,675
     ---------------------------------------------------------------------------------------------
     News Corp. Ltd., ADR                                                  150,000       3,525,000
     ---------------------------------------------------------------------------------------------
     Reuters Holdings PLC, Series B, ADR                                    20,000       1,450,000
     ---------------------------------------------------------------------------------------------
     Tele-Communications, Inc. (New), TCI Group, Series A    (3)           162,000       2,936,250
     ---------------------------------------------------------------------------------------------
     Time Warner, Inc.                                                      45,000       1,766,250
                                                                                      ------------
                                                                                        11,673,175
- --------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 0.2%
     ---------------------------------------------------------------------------------------------
     PT Matahari Putra Prima                                               439,500         802,550
- --------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 7.8%
     ---------------------------------------------------------------------------------------------
     adidas AG                                                              60,000       4,996,259
     ---------------------------------------------------------------------------------------------
     Benetton Group SpA                                                    194,500       2,512,214
     ---------------------------------------------------------------------------------------------
     Cifra SA de CV, Unsponsored ADR, B Shares               (3)         1,500,000       2,164,950
</TABLE>


                                       50
<PAGE>   68
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                      MARKET VALUE
                                                                            SHARES      (NOTE 1)
- --------------------------------------------------------------------------------------------------
<S>                                                          <C>        <C>           <C>         
RETAIL:  SPECIALTY (CONTINUED)
     ---------------------------------------------------------------------------------------------
     Circuit City Stores, Inc.                                          $   40,000    $  1,445,000
     ---------------------------------------------------------------------------------------------
     FamilyMart Co.                                                         49,500       2,202,377
     ---------------------------------------------------------------------------------------------
     Giordano International Ltd.                                         2,100,000       2,034,750
     ---------------------------------------------------------------------------------------------
     Jusco Co.                                                              85,000       2,782,147
     ---------------------------------------------------------------------------------------------
     Reebok International Ltd.                                             124,600       4,189,675
     ---------------------------------------------------------------------------------------------
     Wella AG                                                               19,000      11,103,125
     ---------------------------------------------------------------------------------------------
     Wolford AG                                                             16,400       4,011,083
                                                                                      ------------
                                                                                        37,441,580
- --------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 16.3%
- --------------------------------------------------------------------------------------------------
BEVERAGES - 2.7%
     ---------------------------------------------------------------------------------------------
     Allied Domecq PLC                                                     274,400       1,931,425
     ---------------------------------------------------------------------------------------------
     Buenos Aires Embotelladora SA, Sponsored ADR                          100,300       1,328,975
     ---------------------------------------------------------------------------------------------
     Hellenic Bottling Co., SA                                              35,000       1,161,592
     ---------------------------------------------------------------------------------------------
     LVMH Moet Hennessy Louis Vuitton                                        4,700       1,114,724
     ---------------------------------------------------------------------------------------------
     Panamerican Beverages, Inc., Cl. A                                     71,800       3,213,050
     ---------------------------------------------------------------------------------------------
     South African Breweries Ltd.                                          150,000       4,399,182
                                                                                      ------------
                                                                                        13,148,948
- --------------------------------------------------------------------------------------------------
FOOD - 1.0%
     ---------------------------------------------------------------------------------------------
     Disco SA, ADR                                           (3)            93,200       2,062,050
     ---------------------------------------------------------------------------------------------
     Molinos Rio de la Plata SA, Cl. B                                     205,600       2,213,334
     ---------------------------------------------------------------------------------------------
     Universal Robina Corp.                                                833,300         445,289
                                                                                      ------------
                                                                                         4,720,673
- --------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 8.3%
     ---------------------------------------------------------------------------------------------
     Amgen, Inc.                                             (3)           100,000       5,400,000
     ---------------------------------------------------------------------------------------------
     Astra AB Free, Series A                                               200,000       8,831,321
     ---------------------------------------------------------------------------------------------
     BioChem Pharma, Inc.                                    (3)            50,000       1,875,000
     ---------------------------------------------------------------------------------------------
     Ciba-Geigy AG                                                           4,000       4,873,602
     ---------------------------------------------------------------------------------------------
     Eisai Co. Ltd.                                                        100,000       1,887,283
     ---------------------------------------------------------------------------------------------
     Genzyme Corp.                                           (3)            60,000       3,015,000
     ---------------------------------------------------------------------------------------------
     Glaxo Wellcome PLC, Sponsored ADR                                     150,000       4,012,500
     ---------------------------------------------------------------------------------------------
     Johnson & Johnson                                                      23,000       1,138,500
     ---------------------------------------------------------------------------------------------
     Plant Genetics Systems                               (3)(5)            89,104         996,496
     ---------------------------------------------------------------------------------------------
     Sanofi SA                                                              60,000       4,496,426
     ---------------------------------------------------------------------------------------------
     Taisho Pharmaceutical Co.                                             100,000       2,160,802
     ---------------------------------------------------------------------------------------------
     Takeda Chemical Industries Ltd.                                        83,000       1,468,069
                                                                                      ------------
                                                                                        40,154,999
- --------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 3.3%
     ---------------------------------------------------------------------------------------------
     Gehe AG                                                                 6,999       4,754,471
     ---------------------------------------------------------------------------------------------
     Rhoen Klinikum AG, Preference, Non-vtg.                 (3)            17,920       2,066,145
     ---------------------------------------------------------------------------------------------
     United States Surgical Corp.                                          300,000       9,300,000
                                                                                      ------------
                                                                                        16,120,616
- --------------------------------------------------------------------------------------------------
TOBACCO - 1.0%
     ---------------------------------------------------------------------------------------------
     B.A.T. Industries PLC                                                 600,000       4,670,726
- --------------------------------------------------------------------------------------------------
ENERGY - 6.5%
- --------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 3.1%
     ---------------------------------------------------------------------------------------------
     Baker Hughes, Inc.                                                     80,000       2,630,000
     ---------------------------------------------------------------------------------------------
     Coflexip SA, Sponsored ADR                              (3)           105,000       1,824,375
     ---------------------------------------------------------------------------------------------
     Global Marine, Inc.                                     (3)           117,500       1,630,313
</TABLE>


                                       51
<PAGE>   69
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                      MARKET VALUE
                                                                            SHARES      (NOTE 1)
- --------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>            <C>         
ENERGY SERVICES & PRODUCERS (CONTINUED)
     ---------------------------------------------------------------------------------------------
     Transocean AS                                           (3)       $   292,360    $  7,583,150
     ---------------------------------------------------------------------------------------------
     Western Atlas, Inc.                                     (3)            19,300       1,124,225
                                                                                      ------------
                                                                                        14,792,063
- --------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 3.4%
     ---------------------------------------------------------------------------------------------
     British Petroleum Co. PLC, ADR                                         25,000       2,671,875
     ---------------------------------------------------------------------------------------------
     Elf Acquitaine SA                                                      30,000       2,206,256
     ---------------------------------------------------------------------------------------------
     Gulf Canada Resources Ltd.                              (3)           565,600       2,857,779
     ---------------------------------------------------------------------------------------------
     Norsk Hydro AS                                                         90,000       4,405,563
     ---------------------------------------------------------------------------------------------
     Total SA, B Shares                                                     30,000       2,224,903
     ---------------------------------------------------------------------------------------------
     Unocal Corp.                                                           64,000       2,160,000
                                                                                      ------------
                                                                                        16,526,376
- --------------------------------------------------------------------------------------------------
FINANCIAL - 14.5%
- --------------------------------------------------------------------------------------------------
BANKS - 4.9%
     ---------------------------------------------------------------------------------------------
     Banco Bradesco SA, Preference                                     455,260,951       3,718,063
     ---------------------------------------------------------------------------------------------
     Banco Frances del Rio de la Plata SA, ADR                              55,000       1,581,250
     ---------------------------------------------------------------------------------------------
     Banco Latinoamericano de Exportaciones SA, Cl. E                       24,800       1,395,000
     ---------------------------------------------------------------------------------------------
     Chase Manhattan Corp. (New)                                            52,000       3,672,500
     ---------------------------------------------------------------------------------------------
     Citicorp                                                               45,000       3,718,125
     ---------------------------------------------------------------------------------------------
     HSBC Holdings PLC                                                     126,101       1,906,053
     ---------------------------------------------------------------------------------------------
     Korea Exchange Bank                                                    30,000         388,659
     ---------------------------------------------------------------------------------------------
     Northern Trust Corp.                                                   18,700       1,079,925
     ---------------------------------------------------------------------------------------------
     PT Lippo Bank                                                         825,000       1,364,706
     ---------------------------------------------------------------------------------------------
     Standard Chartered Bank PLC                             (3)           203,000       2,021,853
     ---------------------------------------------------------------------------------------------
     Turkiye Garanti Bankasi (New), ADR                      (4)           389,250       2,653,011
                                                                                      ------------
                                                                                        23,499,145
- --------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 3.9%
     ---------------------------------------------------------------------------------------------
     ABN Amro Holding NV                                                    70,000       3,756,350
     ---------------------------------------------------------------------------------------------
     American Express Co.                                                   24,500       1,093,313
     ---------------------------------------------------------------------------------------------
     First NIS Regional Fund                                 (4)           180,000       1,890,000
     ---------------------------------------------------------------------------------------------
     ING Groep NV                                                           89,062       2,655,723
     ---------------------------------------------------------------------------------------------
     MBNA Corp.                                                            105,000       2,992,500
     ---------------------------------------------------------------------------------------------
     Merrill Lynch & Co., Inc.                                              30,000       1,953,750
     ---------------------------------------------------------------------------------------------
     Societe Generale de Paris                                              35,000       3,848,030
     ---------------------------------------------------------------------------------------------
     Taiwan Fund, Inc.                                                      18,400         441,600
                                                                                      ------------
                                                                                        18,631,266
- --------------------------------------------------------------------------------------------------
INSURANCE - 5.7%
     ---------------------------------------------------------------------------------------------
     American International Group, Inc.                                     35,000       3,451,875
     ---------------------------------------------------------------------------------------------
     Assicurazioni Generali SpA                                            150,000       3,459,015
     ---------------------------------------------------------------------------------------------
     Mapfre Vida Seguros                                                    50,000       2,807,874
     ---------------------------------------------------------------------------------------------
     Marschollek, Lautenschlaeger und Partner AG                             5,587       5,872,788
     ---------------------------------------------------------------------------------------------
     National Mutual Asia Ltd.                                           2,634,000       2,313,957
     ---------------------------------------------------------------------------------------------
     Reinsurance Australia Corp. Ltd.                                    2,283,000       6,648,318
     ---------------------------------------------------------------------------------------------
     Skandia Forsakrings AB                                                100,000       2,644,875
                                                                                      ------------
                                                                                        27,198,702
- --------------------------------------------------------------------------------------------------
INDUSTRIAL - 15.8%
- --------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.1%
     ---------------------------------------------------------------------------------------------
     Ushio, Inc.                                                           100,000       1,221,719
</TABLE>


                                       52
<PAGE>   70
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                      MARKET VALUE
                                                                            SHARES      (NOTE 1)
- --------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>            <C>         
ELECTRICAL EQUIPMENT (CONTINUED)
     ---------------------------------------------------------------------------------------------
     Yokogawa Electric Corp.                                           $   425,000    $  4,262,342
                                                                                      ------------
                                                                                         5,484,061
- --------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 5.9%
     ---------------------------------------------------------------------------------------------
     BIS SA                                                                 35,925       3,754,335
     ---------------------------------------------------------------------------------------------
     Boskalis Westminster                                                  150,000       2,680,178
     ---------------------------------------------------------------------------------------------
     Cordiant PLC                                            (3)         1,700,000       2,905,608
     ---------------------------------------------------------------------------------------------
     IHC Caland NV                                                          80,000       3,936,786
     ---------------------------------------------------------------------------------------------
     PT Citra Marga Nusaphala Persada                                    1,165,500       1,777,726
     ---------------------------------------------------------------------------------------------
     VBH-Vereinigter Baubeschlag Handel AG                                  24,700       6,490,866
     ---------------------------------------------------------------------------------------------
     WMX Technologies, Inc.                                                 80,000       2,620,000
     ---------------------------------------------------------------------------------------------
     WPP Group PLC                                                       1,200,000       4,008,807
                                                                                      ------------
                                                                                        28,174,306
- --------------------------------------------------------------------------------------------------
MANUFACTURING - 6.3%
     ---------------------------------------------------------------------------------------------
     Bic Corp.                                                              20,000       2,839,889
     ---------------------------------------------------------------------------------------------
     Bobst Bearers AG                                                        2,000       2,884,214
     ---------------------------------------------------------------------------------------------
     Bombardier, Inc., Cl. B                                               250,000       3,743,720
     ---------------------------------------------------------------------------------------------
     Chargeurs International SA                                             14,000         625,747
     ---------------------------------------------------------------------------------------------
     Consolidated Electric Power Asia Ltd., ADS                            800,000       1,322,911
     ---------------------------------------------------------------------------------------------
     Komatsu Ltd.                                                          398,000       3,918,984
     ---------------------------------------------------------------------------------------------
     Measurex Corp.                                                         63,800       1,866,150
     ---------------------------------------------------------------------------------------------
     Mitsubishi Heavy Industries Ltd.                                      530,000       4,605,061
     ---------------------------------------------------------------------------------------------
     Pathe SA                                                               14,000       3,285,102
     ---------------------------------------------------------------------------------------------
     Powerscreen International PLC                                         730,100       5,173,002
                                                                                      ------------
                                                                                        30,264,780
- --------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.5%
     ---------------------------------------------------------------------------------------------
     Brambles Industries Ltd.                                              180,000       2,504,718
     ---------------------------------------------------------------------------------------------
     East Japan Railway Co.                                                    400       2,096,981
     ---------------------------------------------------------------------------------------------
     Guangshen Railway Co. Ltd., ADS                         (3)           180,000       3,442,500
     ---------------------------------------------------------------------------------------------
     Kvaerner AS, Series B                                                  97,500       4,119,825
                                                                                      ------------
                                                                                        12,164,024
- --------------------------------------------------------------------------------------------------
TECHNOLOGY - 16.2%
- --------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 1.9%
     ---------------------------------------------------------------------------------------------
     Canon, Inc.                                                           150,000       3,118,120
     ---------------------------------------------------------------------------------------------
     Digital Equipment Corp.                                 (3)            90,000       4,050,000
     ---------------------------------------------------------------------------------------------
     International Business Machines Corp.                                  20,000       1,980,000
                                                                                      ------------
                                                                                         9,148,120
- --------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 6.4%
     ---------------------------------------------------------------------------------------------
     Baan Co. NV                                             (3)            60,000       2,040,000
     ---------------------------------------------------------------------------------------------
     First Data Corp.                                                       87,118       6,936,771
     ---------------------------------------------------------------------------------------------
     Ines Corp.                                                             60,000       1,121,429
     ---------------------------------------------------------------------------------------------
     Microsoft Corp.                                         (3)            35,000       4,204,375
     ---------------------------------------------------------------------------------------------
     Misys PLC                                                             200,000       2,414,607
     ---------------------------------------------------------------------------------------------
     Nintendo Co. Ltd.                                                     191,000      14,209,872
                                                                                      ------------
                                                                                        30,927,054
- --------------------------------------------------------------------------------------------------
ELECTRONICS - 4.6%
     ---------------------------------------------------------------------------------------------
     Advanced Semiconductor Engineering GDR                  (3)           102,420         934,070
     ---------------------------------------------------------------------------------------------
     Advantest Corp.                                                        33,000       1,308,790
     ---------------------------------------------------------------------------------------------
     General Motors Corp., Cl. H                                            40,000       2,405,000
</TABLE>


                                       53
<PAGE>   71
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                      MARKET VALUE
                                                                            SHARES      (NOTE 1)
- --------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>            <C>         
ELECTRONICS (CONTINUED)
     ---------------------------------------------------------------------------------------------
     Hewlett-Packard Co.                                               $    20,000    $  1,992,500
     ---------------------------------------------------------------------------------------------
     Intel Corp.                                                            20,000       1,468,750
     ---------------------------------------------------------------------------------------------
     Keyence Corp.                                                          25,000       3,396,197
     ---------------------------------------------------------------------------------------------
     Rohm Co.                                                               45,000       2,970,419
     ---------------------------------------------------------------------------------------------
     SGS-Thomson Microelectronics NV                         (3)           129,400       4,642,225
     ---------------------------------------------------------------------------------------------
     Sony Corp.                                              (3)            48,000       3,155,318
                                                                                      ------------
                                                                                        22,273,269
- --------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 3.3%
     ---------------------------------------------------------------------------------------------
     Airtouch Communications, Inc.                           (3)            70,000       1,977,500
     ---------------------------------------------------------------------------------------------
     Cisco Systems, Inc.                                     (3)            34,600       1,959,225
     ---------------------------------------------------------------------------------------------
     Korea Mobile Telecommunications Corp.                                   3,000       3,751,600
     ---------------------------------------------------------------------------------------------
     Millicom International Cellular SA                      (3)            90,000       4,286,250
     ---------------------------------------------------------------------------------------------
     Millicom, Inc.                                          (3)            25,000              --
     ---------------------------------------------------------------------------------------------
     Petersburg Long Distance, Inc.                          (3)           187,000       1,531,063
     ---------------------------------------------------------------------------------------------
     PT Telekomunikasi Indonesia, ADR                                       88,000       2,618,000
                                                                                      ------------
                                                                                        16,123,638
- --------------------------------------------------------------------------------------------------
UTILITIES - 7.6%
- --------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.1%
     ---------------------------------------------------------------------------------------------
     Empresa Nacional de Electricidad SA                                    30,000       1,869,576
     ---------------------------------------------------------------------------------------------
     Veba AG                                                                60,000       3,188,933
                                                                                      ------------
                                                                                         5,058,509
- --------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 6.5%
     ---------------------------------------------------------------------------------------------
     Compania de Telecommunicaciones de Chile SA, Sponsored ADR             31,500       3,090,938
     ---------------------------------------------------------------------------------------------
     CPT Telefonica del Peru SA, Cl. B                                   3,400,031       6,851,773
     ---------------------------------------------------------------------------------------------
     DDI Corp.                                                                 600       5,229,688
     ---------------------------------------------------------------------------------------------
     Portugal Telecom SA                                                   144,000       3,761,396
     ---------------------------------------------------------------------------------------------
     Telecom Italia Mobile SpA                                           2,000,000       4,468,506
     ---------------------------------------------------------------------------------------------
     Telecom Italia SpA                                                  2,000,000       4,298,898
     ---------------------------------------------------------------------------------------------
     Telecomunicacoes Brasileiras SA, Preference                        52,548,000       3,668,738
                                                                                      ------------
                                                                                        31,369,937
                                                                                      ------------

     Total Common Stocks (Cost $408,154,263)                                           458,626,700

                                                                            UNITS
- --------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- --------------------------------------------------------------------------------------------------
     American Satellite Network, Inc. Wts., Exp. 6/99                        6,250              --
     ---------------------------------------------------------------------------------------------
     Plant Genetics Systems Wts., Exp. 12/99                 (5)            60,000         112,128
                                                                                      ------------
     Total Rights, Warrants and Certificates (Cost $0)                                     112,128
</TABLE>


                                       54
<PAGE>   72
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                      PRINCIPAL    MARKET VALUE
                                                                                      AMOUNT(1)      (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>            <C>         
REPURCHASE AGREEMENT - 3.7%
- ---------------------------------------------------------------------------------------------------------------
     Repurchase agreement with Canadian Imperial Bank of Commerce, 5.45%, dated
     6/28/96, to be repurchased at $17,908,130 on 7/1/96, collateralized by U.S.
     Treasury Bonds, 9.125%-11.25%, 2/15/15-5/11/18, with a value of $6,327,433,
     and U.S. Treasury Nts., 5.25%-8.50%, 1/11/97-11/15/04, with a value of
     $11,958,003
     (Cost $17,900,000)                                                             $17,900,000    $ 17,900,000

     ----------------------------------------------------------------------------------------------------------
     TOTAL INVESTMENTS, AT VALUE (COST $430,416,694)                                       99.9%    481,017,994
     ----------------------------------------------------------------------------------------------------------
     OTHER ASSETS NET OF LIABILITIES                                                        0.1         325,182
                                                                                    -----------    ------------
     NET ASSETS                                                                           100.0%   $481,343,176
                                                                                    ===========    ============
</TABLE>

     1. Principal amount is reported in U.S. Dollars, except for those denoted
     in the following currency: MXP - Mexican Peso

     2. For zero coupon bonds, the interest rate shown is the effective yield on
     the date of purchase.

     3. Non-income producing security.

     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 $8,688,686 or 1.81% of the Fund's
     net assets, at June 30, 1996.

     5. Identifies issues considered to be illiquid - See applicable note of
     Notes to Financial Statements.

     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 June 30,
     1996. There were no affiliate securities held as of June 30, 1996.
     Transactions during the period in which the issuer was an affiliate are as
     follows:

<TABLE>
<CAPTION>
                      BALANCE                                                          BALANCE
                  DECEMBER 31, 1995     GROSS ADDITIONS      GROSS REDUCTIONS        JUNE 30, 1996   DIVIDEND
                  -------------------------------------     -----------------       --------------
                  SHARES       COST      SHARES    COST     SHARES       COST       SHARES    COST    INCOME
- ------------------------------------------------------------------------------------------------------------
<S>              <C>        <C>              <C>   <C>     <C>        <C>               <C>   <C>     <C>   
Pharmavit GDS    114,000    $1,401,000       --    $ --    114,000    $1,401,000        --    $ --    $   --
</TABLE>


                                       55
<PAGE>   73
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Statement of Investments (Continued)

- --------------------------------------------------------------------------------
     Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:

<TABLE>
<CAPTION>
     COUNTRY                        MARKET VALUE   PERCENT
     -----------------------------------------------------
<S>                                 <C>              <C>  
     United States                  $207,640,602     43.2%
     ----------------------------------------------------
     Japan                            63,338,400     13.2
     ----------------------------------------------------
     Germany                          43,882,737      9.1
     ----------------------------------------------------
     Great Britain                    31,260,402      6.5
     ----------------------------------------------------
     France                           30,862,012      6.4
     ----------------------------------------------------
     Italy                            14,738,633      3.1
     ----------------------------------------------------
     Australia                        12,678,036      2.6
     ----------------------------------------------------
     Mexico                           11,752,841      2.4
     ----------------------------------------------------
     Canada                           10,863,999      2.3
     ----------------------------------------------------
     Argentina                        10,688,513      2.2
     ----------------------------------------------------
     Brazil                            9,168,974      1.9
     ----------------------------------------------------
     Hong Kong                         7,577,671      1.6
     ----------------------------------------------------
     Indonesia                         6,562,982      1.4
     ----------------------------------------------------
     Korea, Republic of (South)        4,140,259      0.9
     ----------------------------------------------------
     Austria                           4,011,083      0.8
     ----------------------------------------------------
     China                             3,442,500      0.7
     ----------------------------------------------------
     Chile                             3,090,935      0.6
     ----------------------------------------------------
     India                             2,150,000      0.5
     ----------------------------------------------------
     Malaysia                          2,005,823      0.4
     ----------------------------------------------------
     Greece                            1,161,592      0.2
                                    ------------    -----
     Total                          $481,017,994    100.0%
                                    ============    =====
</TABLE>

See accompanying Notes to Financial Statements.


                                       56
<PAGE>   74
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                          PRINCIPAL          MARKET VALUE
                                                                          AMOUNT(1)          SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 17.8%
- -------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY - 15.3%
- -------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED - 1.8%
      -------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                    <C>        
      Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg.           
      Participation Certificates, Series 176, Cl. F, 8.95%, 3/15/20    $      21,257          $    21,377
      -------------------------------------------------------------------------------------------------------
      Federal National Mortgage Assn.:
      7.50%, 8/1/25                                                        1,094,148            1,080,209
      Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. 
      Investment Conduit Pass-Through Certificates, 10.50%,                 
      11/25/20                                                               130,000              145,518   
      Series 1994-83, Cl. Z, 7.50%, 6/25/24                                  185,806              168,503
                                                                                              ------------
                                                                                                1,415,607
- -------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED - 13.5%
      -------------------------------------------------------------------------------------------------------
      Government National Mortgage Assn.:
      6%, 11/20/25                                                           729,856              733,053
      7.50%, 8/15/25                                                       4,946,850            4,883,828
      8%, 11/15/25-5/15/26                                                 4,946,550            4,996,016
                                                                                              ------------
                                                                                               10,612,897
- -------------------------------------------------------------------------------------------------------------
PRIVATE - 2.5%
- -------------------------------------------------------------------------------------------------------------
COMMERCIAL - 1.6%
         ----------------------------------------------------------------------------------------------------
         FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass-  
         Through Certificates, Series 1994-C1, Cl. 2-G, 8.70%,
         9/25/25                                                     (2)     153,594              155,130  
         ----------------------------------------------------------------------------------------------------
         Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-          
         Through Certificates, Series 1995-C2, Cl. D, 8.266%, 6/15/21(3)     482,223              482,751
         ----------------------------------------------------------------------------------------------------
         Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-    
         Through Certificates, Series 1996-C1, Cl. F, 7.51%, 2/1/28 (2)(3)   162,744              104,055
         ----------------------------------------------------------------------------------------------------
         Resolution Trust Corp., Commercial Mtg. Pass-Through 
         Certificates:
         Series 1992-CHF, Cl. D, 8.25%, 12/25/20                             124,762              125,308
         Series 1993-C1, Cl. D, 9.45%, 5/25/24                                91,000               93,588
         Series 1994-C2, Cl. E, 8%, 4/25/25                                  228,725              218,183
         ----------------------------------------------------------------------------------------------------
         Structured Asset Securities Corp., Multiclass Pass-Through 
         Certificates, Series 1995-C4, Cl. E, 8.863%, 6/25/26       (2)(3)    46,290               37,625
                                                                                              ---------------
                                                                                                1,216,640
- -------------------------------------------------------------------------------------------------------------
MULTI-FAMILY - 0.1%
         ----------------------------------------------------------------------------------------------------
         DLJ Mortgage Acceptance Corp., Series 1996-CF1, Cl. B3,    
         8.269%, 3/13/28                                            (2)      100,000               78,719
         ----------------------------------------------------------------------------------------------------
         Resolution Trust Corp., Commercial Mtg. Pass-              
         Through Certificates, Series 1991-M6, Cl. B4, 7.145%,      
         6/25/21                                                    (3)       37,075               35,731
                                                                                              ---------------
                                                                                                  114,450
- -------------------------------------------------------------------------------------------------------------
RESIDENTIAL - 0.8%
         ----------------------------------------------------------------------------------------------------
         Mortgage Capital Funding, Inc., Multifamily Mortgage Pass- 
         Through Certificates, Series 1996-MC1, Cl. G, 7.15%,       
         6/15/06                                                    (2)(4)   800,000              598,000    
                                                                                              ---------------
         Total Mortgage-Backed Obligations (Cost $13,909,362)                                  13,957,594
</TABLE>

                                       57
<PAGE>   75
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                             PRINCIPAL          MARKET VALUE
                                                                              AMOUNT(1)          SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 13.2%
- ------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                <C>
         U.S. Treasury Bonds:
         11.625%, 11/15/02                                                 $  4,300,000       $    5,415,313
         13.125%, 5/15/01                                                     2,800,000            3,567,373
         6.875%, 8/15/25                                                      1,200,000            1,187,624
         8.125%, 8/15/19                                            (13)        163,000              182,866
                                                                                              ---------------

         Total U.S. Government Obligations (Cost $10,552,685)                                     10,353,176

- ------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 26.3%
- ------------------------------------------------------------------------------------------------------------
ARGENTINA - 0.2%
- ------------------------------------------------------------------------------------------------------------
         Banco Hipotecario Nacional (Argentina) Medium-Term Nts., 
         10.625%, 3/29/99                                         (2)          150,000              151,875
- ------------------------------------------------------------------------------------------------------------
AUSTRALIA - 3.8%
- ------------------------------------------------------------------------------------------------------------
         Australia (Commonwealth of) Bonds, 10%, 10/15/07              AUD     675,000              569,698
         ---------------------------------------------------------------------------------------------------
         Queensland Treasury Corp.:
         Exchangeable Gtd. Nts., 8%, 8/14/01                           AUD     603,000              460,652
         Gtd. Nts., 8%, 5/14/03                                        AUD     610,000              456,971
         ---------------------------------------------------------------------------------------------------
         Treasury Corp. of Victoria Gtd. Bonds: 10.25%, 11/15/06       AUD     665,000              561,164
         12.50%, 10/15/03                                              AUD     485,000              452,748
         ---------------------------------------------------------------------------------------------------
         Western Australia Treasury Corp. Gtd. Bonds, 10%,
         7/15/05                                                       AUD     450,000              372,439
                                                                                              --------------
                                                                                                  2,873,672
- ------------------------------------------------------------------------------------------------------------
BRAZIL - 1.5%
- ------------------------------------------------------------------------------------------------------------
         Banco Estado Minas Gerais, 8.25%, 2/10/00                             250,000              228,750
         ---------------------------------------------------------------------------------------------------
         Brazil (Federal Republic of):
         Capitalization Bonds, 8%, 4/15/14                                   1,407,159              870,680
         Nts., Banco Estado Minas Gerais, 7.875%, 2/10/99                       30,000               27,787
         ---------------------------------------------------------------------------------------------------
         Petroquimica do Nordeste Sr. Unsec. Unsub. Nts., 9.50%, 10/19/01       50,000               48,828
                                                                                          ------------------
                                                                                                  1,176,045
- ------------------------------------------------------------------------------------------------------------
BULGARIA - 0.8%
- ------------------------------------------------------------------------------------------------------------
         Bulgaria (Republic of):
         Front-Loaded Interest Reduction Bearer Bonds, Tranche A, 
         2%, 7/28/12                                              (3)          905,000              301,761
         Interest Arrears Bonds, 6.25%, 7/28/11                   (3)          720,000              342,000
                                                                                         -------------------
                                                                                                    643,761
- ------------------------------------------------------------------------------------------------------------
CANADA - 2.2%
- ------------------------------------------------------------------------------------------------------------
         Canada (Government of) Bonds:
         10.25%, 12/1/98                                     CAD               830,000              662,179
         9%, 12/1/04                                         CAD               680,000              543,618
         Series A33, 11.50%, 9/1/00                          CAD               610,000              521,566
                                                                                         -------------------
                                                                                                  1,727,363
- ------------------------------------------------------------------------------------------------------------
COSTA RICA - 0.3%
- ------------------------------------------------------------------------------------------------------------
         Central Bank of Costa Rica Interest Claim Bonds, Series B,
         6.328%, 5/21/05                                           (3)         262,123              242,464
</TABLE>

                                       58
<PAGE>   76
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                               PRINCIPAL        MARKET VALUE
                                                                               AMOUNT(1)         SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
CZECH REPUBLIC - 0.5%
- ------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>              <C>
          CEZ AS, Zero Coupon Disc. Promissory Nts., 10.768%,     
          7/1/96                                                  (5) CZK    10,000,000       $      363,238
- ------------------------------------------------------------------------------------------------------------
ECUADOR - 0.3%
- ------------------------------------------------------------------------------------------------------------
        Ecuador (Republic of):
        Disc. Bonds, 6.063%, 2/28/25                              (3)           190,000              107,825
        Interest Equalization Bearer Bonds, 6.625%, 12/21/04      (3)           185,000              135,512
                                                                                              ---------------
                                                                                                     243,337
- -------------------------------------------------------------------------------------------------------------
FINLAND - 1.3%
- -------------------------------------------------------------------------------------------------------------
        Finland (Republic of) Bonds, 10%, 9/15/01                     FIM     4,000,000            1,003,035
- -------------------------------------------------------------------------------------------------------------
GERMANY - 0.9%
- -------------------------------------------------------------------------------------------------------------
        Germany (Republic of) Bonds:
        7.75%, 10/1/04                                                DEM       480,000              338,429
        Series 86, 6%, 6/20/16                                        DEM       100,000               58,004
        Series 94, 7.50%. 11/11/04                                    DEM       240,000              167,985
        -----------------------------------------------------------------------------------------------------
        Landeskreditbank                                             
        Baden-Wurttemberg Gtd. Bonds, 6%, 
        1/25/06                                                       DEM       180,000              112,567
                                                                                             ----------------
                                                                                                     676,985
- -------------------------------------------------------------------------------------------------------------
GREAT BRITAIN - 2.2%
- -------------------------------------------------------------------------------------------------------------
        United Kingdom Treasury:
        Bonds, 10%, 9/8/03                                            GBP       500,000              875,227
        Debs., 8.50%, 12/7/05                                         GBP        75,000              121,524
        Nts., 10%, 2/26/01                                            GBP       210,000              360,254
        Nts., 12.50%, 11/21/05                                        GBP       158,000              309,561
        Nts., 8%, 6/10/03                                             GBP        60,000               95,209
                                                                                             ----------------
                                                                                                   1,761,775
- -------------------------------------------------------------------------------------------------------------
ITALY - 1.6%
- -------------------------------------------------------------------------------------------------------------
        Italy (Republic of) Treasury Bonds, Buoni del Tesoro 
        Poliennali:
        11.50%, 3/1/03                                                ITL   445,000,000              325,008
        10.50%, 4/1/00                                                ITL   490,000,000              338,280
        10.50%, 7/15/00                                               ITL   530,000,000              366,932
        10.50%, 7/15/98                                               ITL   380,000,000              257,605
                                                                                             ----------------
                                                                                                   1,287,825
- -------------------------------------------------------------------------------------------------------------
JAPAN - 0.1%
- -------------------------------------------------------------------------------------------------------------
        Japan (Government of) Bonds, Series 31, 3.50%, 3/21/16        JPY    12,800,000              112,127
- -------------------------------------------------------------------------------------------------------------
JORDON - 1.0%
- -------------------------------------------------------------------------------------------------------------
        Hashemite Kingdom of Jordan:
        Disc. Bonds, 6.625%, 12/23/23                             (3)           500,000              351,250
        Interest Arrears Bonds, 6.625%, 12/23/05                  (3)           500,000              403,750
                                                                                              ---------------
                                                                                                     755,000
- -------------------------------------------------------------------------------------------------------------
MEXICO - 1.4%
- -------------------------------------------------------
        Banco Nacional de Comercio Exterior SNC International 
        Finance BV Gtd. Bonds, 10.758%, 6/23/97                (2)(3)            250,000              258,750
        -----------------------------------------------------------------------------------------------------
        Bonos de la Tesoreria de la Federacion, Zero Coupon, 
        37.786%, 3/6/97                                        (5)    MXP      4,200,000              450,102
        -----------------------------------------------------------------------------------------------------
        United Mexican States:
        Bonds, 10.375%, 1/29/03                                       DEM        425,000              285,215
</TABLE>

                                       59
<PAGE>   77
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                              PRINCIPAL          MARKET VALUE
                                                                              AMOUNT(1)           SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
MEXICO (CONTINUED)
- -------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>             <C>    
     Petroleos Mexicanos Gtd. Unsec. Unsub. Nts., 7.875%,         
     3/2/99                                                       CAD           200,000         $    144,074
                                                                                                -------------
                                                                                                   1,138,141
- -------------------------------------------------------------------------------------------------------------
NEW ZEALAND - 1.6%
- -------------------------------------------------------------------------------------------------------------
     New Zealand (Republic of) Bonds:
     10%, 3/15/02                                                 NZD           780,000              558,060
     10%, 7/15/97                                                 NZD         1,045,000              719,166
                                                                                               --------------
                                                                                                   1,277,226
- -------------------------------------------------------------------------------------------------------------
PANAMA - 0.4%
- -------------------------------------------------------------------------------------------------------------
     Panama (Republic of):
     Debs., 6.629%, 5/10/02                                     (3)             230,770              216,924
     Past Due Interest Debs., 12/29/49                          (4)             125,000               76,602
                                                                                              ---------------
                                                                                                     293,526
- -------------------------------------------------------------------------------------------------------------
POLAND - 0.9%
- -------------------------------------------------------------------------------------------------------------
     Poland (Republic of) Treasury Bills, Zero Coupon:
     21.464%, 10/16/96                                          (5) PLZ         500,000              173,205
     21.641%, 10/2/96                                           (5) PLZ         720,000              251,334
     21.463%, 8/12/96                                           (5) PLZ         800,000              287,394
                                                                                               --------------
                                                                                                     711,933
- -------------------------------------------------------------------------------------------------------------
SPAIN - 1.7%
- -------------------------------------------------------------------------------------------------------------
     Spain (Kingdom of):
     Bonds, Bonos y Obligacion del Estado, 10.15%, 1/31/06          ESP     114,000,000              959,235
     Bonds, Bonos y Obligacion del Estado, 10.90%, 8/30/03          ESP      26,600,000              231,996
     Gtd. Bonds, Bonos y Obligacion del Estado, 11.45%,
     8/30/98                                                        ESP      22,000,000              181,124
                                                                                             ----------------
                                                                                                   1,372,355
- -------------------------------------------------------------------------------------------------------------
SUPRANATIONAL - 0.7%
- -------------------------------------------------------------------------------------------------------------
     European Bank for Reconstruction & Development Sr. 
     Unsec. Medium-Term Nts., 10%, 12/20/96                         CZK      10,000,000              357,940
     --------------------------------------------------------------------------------------------------------
     International Bank for Reconstruction & Development            
     Bonds, 12.50%, 7/25/97                                         NZD         325,000              229,061
                                                                                            -----------------
                                                                                                     587,001
- -------------------------------------------------------------------------------------------------------------
SWEDEN - 2.4%
- -------------------------------------------------------------------------------------------------------------
    Sweden (Kingdom of) Bonds:
    Series 1030, 13%, 6/15/01                                       SEK       5,500,000            1,013,511
    Series 1033, 10.25%, 5/5/03                                     SEK       3,500,000              591,107
    Series 1035, 6%, 2/9/05                                         SEK       2,100,000              274,332
                                                                                             ----------------
                                                                                                   1,878,950
- -------------------------------------------------------------------------------------------------------------
VENEZUELA - 0.5%
- -------------------------------------------------------------------------------------------------------------
    Venezuela (Republic of):
    Disc. Bonds, Series DL, 6.625%, 12/18/07                     (3)            500,000              353,750
    Front-Loaded Interest Reduction Bonds, Series A, 6.375%,     
    3/31/07                                                      (3)            100,000               72,375
                                                                                               --------------
                                                                                                     426,125
                                                                                               --------------

     Total Foreign Government Obligations (Cost $20,411,350)                                      20,703,759
</TABLE>

                                       60
<PAGE>   78
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                               PRINCIPAL         MARKET VALUE
                                                                               AMOUNT(1)          SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS - 2.8%
- -------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>              <C>    
         Algeria (Republic of) Reprofiled Debt Loan Participation, 
         Tranche A, 6.812%, 9/4/06                                  (3)(6)   $1,300,000       $      775,937
         ----------------------------------------------------------------------------------------------------
         Colombia (Republic of) 1989-1990 Integrated Loan Facility    
         Bonds, 6.563%, 7/1/01                                      (3)(6)      235,740              219,827
         ----------------------------------------------------------------------------------------------------
         Jamaica (Government of) 1990 Refinancing Agreement Nts.:
         Tranche A, 6.344%, 10/16/00                                (3)(6)       75,000               71,812
         Tranche B, 6.312%, 11/15/04                                (3)(6)      150,000              117,375
         ----------------------------------------------------------------------------------------------------
         Morocco (Kingdom of) Loan Participation Agreement:
         Tranche A, 6.437%, 1/1/09                                     (3)      530,000              381,766
         Tranche B, 6.437%, 1/1/04                                     (3)       47,058               37,765
         ---------------------------------------------------------------------------------------------------
         Pulsar Internacional SA de CV, 11.80% Nts.,                   
         9/19/96                                                       (6)      250,000              251,250 
         ----------------------------------------------------------------------------------------------------
         Trinidad & Tobago Loan Participation Agreement,
         Tranche A, 1.772%, 9/30/00                                 (3)(6)JPY35,999,998              280,631
         ----------------------------------------------------------------------------------------------------
         United Mexican States, Combined Facility 3, Loan  
         Participation Agreement, Tranche A, 6.563%, 9/20/97        (3)(6)       85,760               71,610
                                                                                              ---------------
         Total Loan Participations (Cost $2,173,204)                                               2,207,973
- -------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - 28.9%
- -------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 2.4%
- -------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.5%
        ----------------------------------------------------------------------------------------------------
        NL Industries, Inc.:                                           
        0%/13% Sr. Sec. Disc. Nts., 10/15/05                           (7)     200,000              157,000
        11.75% Sr. Sec. Nts., 10/15/03                                         100,000              102,500
        ----------------------------------------------------------------------------------------------------
        Texas Petrochemicals Corp., 11.125% Sr. Sub. Nts., 7/1/06   (2)(4)     100,000              102,031
                                                                                              --------------
                                                                                                    361,531
- ------------------------------------------------------------------------------------------------------------
METALS/MINING - 0.0%
       -----------------------------------------------------------------------------------------------------
       UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05                10,000               11,400
- ------------------------------------------------------------------------------------------------------------
PAPER - 1.4%
        ----------------------------------------------------------------------------------------------------
        Domtar, Inc., 11.25% Debs., 9/15/17                                    100,000              106,750
        ----------------------------------------------------------------------------------------------------
        Florida Coast Paper Co. LLC/Florida Coast Paper Finance                          
        Corp., 12.75% First Mtg. Nts., 6/1/03                          (2)     130,000              135,200
        ----------------------------------------------------------------------------------------------------
        Indah Kiat International Finance Co. BV, 12.50% Sr. Sec.               
        Gtd. Nts., Series C, 6/15/06                                           250,000              266,875
        ----------------------------------------------------------------------------------------------------
        Riverwood International Corp., 10.25% Sr. Nts., 4/1/06                 400,000              399,000
        ----------------------------------------------------------------------------------------------------
        Stone Container Corp., 10.75% First Mtg. Nts., 10/1/02                 190,000              192,850
                                                                                              --------------
                                                                                                  1,100,675
- ------------------------------------------------------------------------------------------------------------
STEEL - 0.5%
        ----------------------------------------------------------------------------------------------------
        Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00                       50,000               49,500
        ----------------------------------------------------------------------------------------------------
        Republic Engineered Steels, Inc., 9.875% First Mtg. Nts., 
        12/15/01                                                               250,000              234,375
        ----------------------------------------------------------------------------------------------------
        Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03                      150,000              139,875
                                                                                              --------------
                                                                                                    423,750
- ------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 6.1%
- ------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS - 1.0%
        ----------------------------------------------------------------------------------------------------
        Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,       
        Series B, 12.575%, 5/27/98                                     (5)      50,000               42,125
</TABLE>

                                       61
<PAGE>   79
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                               PRINCIPAL         MARKET VALUE
                                                                               AMOUNT(1)          SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
    ---------------------------------------------------------------------------------------------------------
<S>                                                                         <C>               <C>           
    Harman International Industries, Inc., 12% Sr. Sub. Nts.,               
    8/1/02                                                                  $   150,000       $      164,250    
    ---------------------------------------------------------------------------------------------------------
    International Semi-Tech Microelectronics, Inc., 0%/11.50%                          
    Sr. Sec. Disc. Nts., 8/15/03                                  (7)           400,000              238,000
    ---------------------------------------------------------------------------------------------------------
    TAG Heuer International SA, 12% Sr. Sub. Nts., 12/15/05       (2)           200,000              209,500
    ---------------------------------------------------------------------------------------------------------
    Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04                       100,000               98,750
                                                                                              ---------------
                                                                                                     752,625
- -------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.8%
    ---------------------------------------------------------------------------------------------------------
    Dr. Pepper Bottling Holdings, Inc., 0%/11.625% Sr. Disc.                              
    Nts., 2/15/03                                                 (7)           200,000              167,000
    ---------------------------------------------------------------------------------------------------------
    Unilever CR spol. s.r.o., guaranteed by Unilever NV,  
    Rotterdam, The Netherlands, Zero Coupon Promissory Nts.,
    11.184%, 10/11/96                                             (5) CZK    14,000,000              493,278
                                                                                             ----------------
                                                                                                     660,278
- -------------------------------------------------------------------------------------------------------------
HEALTHCARE - 0.9%
    ---------------------------------------------------------------------------------------------------------
    Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02                       200,000              255,000
    ---------------------------------------------------------------------------------------------------------
    Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02                     200,000              223,000
    ---------------------------------------------------------------------------------------------------------
    Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04   (7)           205,000              200,900
                                                                                               --------------
                                                                                                     678,900
- -------------------------------------------------------------------------------------------------------------
HOTEL/GAMING - 2.1%
    ---------------------------------------------------------------------------------------------------------
    Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03                  250,000              258,750
    ---------------------------------------------------------------------------------------------------------
    HMC Acquisition Properties, Inc., 9% Sr. Nts., 12/15/07                     150,000              138,375
    ---------------------------------------------------------------------------------------------------------
    Majestic Star Casino LLC (The), 12.75% Sr. Sec. Nts.,                        
    5/15/03                                                       (2)           100,000              108,500 
    ---------------------------------------------------------------------------------------------------------
    Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts.,                           
    11/15/02                                                      (2)           100,000              126,000 
    ---------------------------------------------------------------------------------------------------------
    Players International, Inc., 10.875% Sr. Nts., 4/15/05                      150,000              152,625
    ---------------------------------------------------------------------------------------------------------
    Showboat Marina Casino Partnership/Showboat Marina            
    Finance Corp., 13.50% First Mtg. Nts., 3/15/03                (2)           150,000              162,000 
    ---------------------------------------------------------------------------------------------------------
    Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03                         100,000               98,500
    ---------------------------------------------------------------------------------------------------------
    Trump Atlantic City Associates/Trump Atlantic City                          
    Funding, Inc., 11.25% First Mtg. Nts., 5/1/06                               600,000              606,000
                                                                                               --------------
                                                                                                   1,650,750
- -------------------------------------------------------------------------------------------------------------
RESTAURANTS - 0.6%
    ---------------------------------------------------------------------------------------------------------
    Carrols Corp., 11.50% Sr. Nts., 8/15/03                                     100,000              102,000
    ---------------------------------------------------------------------------------------------------------
    Foodmaker, Inc.:
    9.25% Sr. Nts., 3/1/99                                                      100,000               98,750
    9.75% Sr. Sub. Nts., 6/1/02                                                 300,000              289,500
                                                                                               --------------
                                                                                                     490,250
- -------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL - 0.7%
    ---------------------------------------------------------------------------------------------------------
    Clark-Schwebel, Inc., 10.50% Sr. Nts., 4/15/06                (2)           100,000              102,500
    ---------------------------------------------------------------------------------------------------------
    PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts.:
    17.90%, 10/23/96                                              (5) IDR   300,000,000              121,455
    19.348%, 4/29/97                                              (5) IDR   560,000,000              205,339
    ---------------------------------------------------------------------------------------------------------
    Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02                  100,000              106,250
                                                                                               --------------
                                                                                                     535,544
- -------------------------------------------------------------------------------------------------------------
ENERGY - 1.9%
- -------------------------------------------------------------------------------------------------------------
    Chesapeake Energy Corp., 10.50% Sr. Nts., 6/1/02                            150,000              157,500
</TABLE>

                                       62
<PAGE>   80
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                PRINCIPAL         MARKET VALUE
                                                                                                AMOUNT(1)         SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                            <C>                <C>       
ENERGY (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------
     Falcon Drilling, Inc., 8.875% Sr. Nts., Series B, 3/15/03                                 $      200,000       $  193,250
     -------------------------------------------------------------------------------------------------------------------------
     Mesa Operating Co., 10.625% Gtd. Sr. Sub. Nts., 7/1/06                       (4)                 250,000          253,906
     -------------------------------------------------------------------------------------------------------------------------
     Petroleum Heat & Power Co., Inc.:
     12.25% Sub. Debs., 2/1/05                                                                         64,000           70,720
     9.375% Sub. Debs., 2/1/06                                                                        200,000          189,000
     -------------------------------------------------------------------------------------------------------------------------
     Plains Resources, Inc., 10.25% Sr. Sub. Nts., 3/15/06                        (2)                 200,000          200,000
     -------------------------------------------------------------------------------------------------------------------------
     Triton Energy Corp., Zero Coupon Sr. Sub. Disc. Nts.,
     10.493%, 11/1/97                                                             (5)                 100,000           90,500
     -------------------------------------------------------------------------------------------------------------------------
     United Meridian Corp., 10.375% Sr. Sub. Nts., 10/15/05                                           200,000          205,750
     -------------------------------------------------------------------------------------------------------------------------
     Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05                                              100,000           94,500
                                                                                                                     ---------
                                                                                                                     1,455,126
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.0%
- ------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 2.0%
     -------------------------------------------------------------------------------------------------------------------------
     Banco Bamerindus do Brasil SA:
     10.50% Debs., 6/23/97                                                                            100,000           96,750
     11% Sr. Unsub. Unsec. Bonds, 10/6/97                                                             100,000           96,750
     -------------------------------------------------------------------------------------------------------------------------
     Banco Ganadero SA, Zero Coupon Nts., 9.931%, 7/1/96                          (2)(5)              100,000          100,000
     -------------------------------------------------------------------------------------------------------------------------
     Banco Mexicano SA, 8% Sr. Unsub. Unsec. Exchangeable
     Medium-Term Nts., 11/4/98                                                                        200,000          190,000
     -------------------------------------------------------------------------------------------------------------------------
     First Nationwide (Parent) Holdings, Inc., 12.50% Sr. Nts.,
     4/15/03                                                                                          200,000          209,500
     -------------------------------------------------------------------------------------------------------------------------
     PT Hutama Karya, Zero Coupon Medium-Term Nts.,
     17.514%, 3/19/97                                                            IDR              400,000,000          152,578
     -------------------------------------------------------------------------------------------------------------------------
     PT Inti Indorayon Utama, Zero Coupon Promissory Nts.,
     22.098%, 2/12/97                                                        (5) IDR            1,400,000,000          543,688
     -------------------------------------------------------------------------------------------------------------------------
     Transpower Finance Ltd., 8% Gtd. Unsec. Unsub. Bonds:
     2/15/01                                                                 (6) NZD                  125,000           80,952
     3/15/02                                                                     NZD                  125,000           81,007
                                                                                                                     ---------
                                                                                                                     1,551,225
- ------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 0.9%
     -------------------------------------------------------------------------------------------------------------------------
     Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98                                                320,000          301,200
     -------------------------------------------------------------------------------------------------------------------------
     GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98                                                    300,000          300,000
     -------------------------------------------------------------------------------------------------------------------------
     Olympic Financial Ltd., 13% Sr. Nts., 5/1/00                                                     100,000          108,000
                                                                                                                     ---------
                                                                                                                       709,200
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.1%
     -------------------------------------------------------------------------------------------------------------------------
     Terra Nova Insurance (UK) Holdings PLC, 10.75% Sr. Nts.,
     7/1/05                                                                                           100,000          111,500
- ------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS - 0.1%
     -------------------------------------------------------------------------------------------------------------------------
     Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03                                                      100,000           97,750
- ------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL ESTATE - 0.4%
     -------------------------------------------------------------------------------------------------------------------------
     Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec 
     Nts., Series B, 4/1/02                                                                           100,000          103,000
     -------------------------------------------------------------------------------------------------------------------------
     Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A,
     12/1/11                                                                      (2)                 250,000          190,000
                                                                                                                     ---------
                                                                                                                       293,000
</TABLE>


                                       63
<PAGE>   81
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                           PRINCIPAL     MARKET VALUE
                                                                                           AMOUNT(1)     SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>           <C>       
MANUFACTURING - 0.8%
- ---------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 0.5%
     ----------------------------------------------------------------------------------------------------------------
     Communications & Power Industries, Inc., 12% Sr. Sub. 
     Nts., 8/1/05                                                                           $ 200,000      $  212,500
     ----------------------------------------------------------------------------------------------------------------
     Rohr, Inc., 11.625% Sr. Nts., 5/15/03                                                    100,000         110,500
     ----------------------------------------------------------------------------------------------------------------
     Unisys Corp., 15% Credit Sensitive Nts., 7/1/97                           (3)             50,000          53,375
                                                                                                           ----------
                                                                                                              376,375
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE - 0.3%
     ----------------------------------------------------------------------------------------------------------------
     Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02                                 100,000         103,500
     ----------------------------------------------------------------------------------------------------------------
     Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04                                           150,000         140,250
                                                                                                           ----------
                                                                                                              243,750
- ---------------------------------------------------------------------------------------------------------------------
MEDIA - 5.6%
- ---------------------------------------------------------------------------------------------------------------------
BROADCASTING - 1.3%
     ----------------------------------------------------------------------------------------------------------------
     Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05                                    100,000          94,250
     ----------------------------------------------------------------------------------------------------------------
     New City Communications, Inc., 11.375% Sr. Sub. Nts.,
     11/1/03                                                                                   50,000          55,250
     ----------------------------------------------------------------------------------------------------------------
     Paxson Communications Corp., 11.625% Sr. Sub. Nts.,
     10/1/02                                                                                  250,000         261,250
     ----------------------------------------------------------------------------------------------------------------
     SFX Broadcasting, Inc., 10.75% Sr. Sub. Nts., 5/15/06                     (2)            300,000         300,000
     ----------------------------------------------------------------------------------------------------------------
     Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 12/15/03                              100,000          96,500
     ----------------------------------------------------------------------------------------------------------------
     Young Broadcasting, Inc., 9% Sr. Sub. Nts., 1/15/06                                      200,000         179,000
                                                                                                           ----------
                                                                                                              986,250
- ---------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION - 3.1%
     ----------------------------------------------------------------------------------------------------------------
     American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts.,
     6/15/04                                                                   (7)            322,737         225,916
     ----------------------------------------------------------------------------------------------------------------
     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)                           (7)(8)         600,000         360,000
     ----------------------------------------------------------------------------------------------------------------
     Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04                    (7)            200,000         141,000
     ----------------------------------------------------------------------------------------------------------------
     Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04                                 100,000         103,500
     ----------------------------------------------------------------------------------------------------------------
     Continental Cablevision, Inc., 11% Sr. Sub. Debs., 6/1/07                                300,000         339,955
     ----------------------------------------------------------------------------------------------------------------
     EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts.,
     6/1/04                                                                    (7)            200,000         146,000
     ----------------------------------------------------------------------------------------------------------------
     Fundy Cable Ltd./Ltee, 11% Sr. Sec. Second Priority Nts.,
     11/15/05                                                                                 100,000         101,750
     ----------------------------------------------------------------------------------------------------------------
     International CableTel, Inc., 0%/11.50% Sr. Deferred
     Coupon Nts., Series A, 2/1/06                                             (7)            360,000         203,400
     ----------------------------------------------------------------------------------------------------------------
     Marcus Cable Operating Co. LP/Marcus Cable Capital
     Corp., 0%/13.50% Sr. Sub. Gtd. Disc. Nts., Series II, 8/1/04              (7)            200,000         144,000
     ----------------------------------------------------------------------------------------------------------------
     Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority
     Debs., 12/1/07                                                                           300,000         293,250
     ----------------------------------------------------------------------------------------------------------------
     TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07                             (7)            200,000         119,000
     ----------------------------------------------------------------------------------------------------------------
     United International Holdings, Inc., Zero Coupon Sr. Sec 
     Disc. Nts., 12.544%, 11/15/99                                             (5)            200,000         132,000
     ----------------------------------------------------------------------------------------------------------------
     Videotron Holdings PLC, 0%/11% Sr. Disc. Nts., 8/15/05                    (7)            150,000          98,250
                                                                                                           ----------
                                                                                                            2,408,021
- ---------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA - 1.0%
     ----------------------------------------------------------------------------------------------------------------
     Ackerley Communications, Inc., 10.75% Sr. Sec. Nts.,
     Series A, 10/1/03                                                                        200,000         208,250
</TABLE>


                                       64
<PAGE>   82
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                           PRINCIPAL     MARKET VALUE
                                                                                           AMOUNT(1)     SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>           <C>       
DIVERSIFIED MEDIA (CONTINUED)
     ----------------------------------------------------------------------------------------------------------------
     Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03                                     $   150,000      $ 154,125
     ----------------------------------------------------------------------------------------------------------------
     Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03                                           100,000        104,000
     ----------------------------------------------------------------------------------------------------------------
     Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts.,                                             
     8/1/00                                                                                    150,000        156,000
     ----------------------------------------------------------------------------------------------------------------
     Time Warner Entertainment LP/Time Warner, Inc., 8.375%                                               
     Sr. Debs., 3/15/23                                                                        200,000        194,726
                                                                                                            ---------
                                                                                                              817,101
- ---------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM - 0.2%                                                                                   
     ----------------------------------------------------------------------------------------------------------------
     Imax Corp., 7% Sr. Nts., 3/1/01                                             (9)           200,000        196,000
- ---------------------------------------------------------------------------------------------------------------------
OTHER - 0.4%                                                                                                
- ---------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 0.3%                                                                                        
     ----------------------------------------------------------------------------------------------------------------
     MacAndrews & Forbes Holdings, Inc., 13% Sub. Debs.,                                                  
     3/1/99                                                                                    175,000        172,594
     ----------------------------------------------------------------------------------------------------------------
     Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05                (7)            86,000         68,800
                                                                                                            ---------
                                                                                                              241,394
- ---------------------------------------------------------------------------------------------------------------------
SERVICES - 0.1%                                                                                             
     ----------------------------------------------------------------------------------------------------------------
     Borg-Warner Security Corp., 9.125% Sr. Sub. Nts., 5/1/03                                  100,000         93,750
- ---------------------------------------------------------------------------------------------------------------------
RETAIL - 0.8%                                                                                               
- ---------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 0.2%                                                                                  
     ----------------------------------------------------------------------------------------------------------------
     Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03                                   70,000         72,450
     ----------------------------------------------------------------------------------------------------------------
     Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03                                       100,000        100,500
                                                                                                            ---------
                                                                                                              172,950
- ---------------------------------------------------------------------------------------------------------------------
SUPERMARKETS - 0.6%                                                                                         
     ----------------------------------------------------------------------------------------------------------------
     Grand Union Co., 12% Sr. Nts., 9/1/04                                                     200,000        187,750
     ----------------------------------------------------------------------------------------------------------------
     Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99                              100,000        108,125
     ----------------------------------------------------------------------------------------------------------------
     Ralph's Grocery Co., 10.45% Sr. Nts., 6/15/04                               (2)           200,000        192,500
                                                                                                            ---------
                                                                                                              488,375
- ---------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.6%                                                                                       
- ---------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.4%                                                                                   
     ----------------------------------------------------------------------------------------------------------------
     American International Group, Inc., 11.70% Unsec. Unsub                                              
     Bonds, 12/4/01                                                             ITL         90,000,000         65,756
     ----------------------------------------------------------------------------------------------------------------
     Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02                                250,000        273,125
                                                                                                            ---------
                                                                                                              338,881
- ---------------------------------------------------------------------------------------------------------------------
RAILROADS - 0.2%                                                                                            
     ----------------------------------------------------------------------------------------------------------------
     Transtar Holdings LP/Transtar Capital Corp., 0%/13.375%                                              
     Sr. Disc. Nts., Series B, 12/15/03                                          (7)           200,000        138,000
- ---------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.8%                                                                                            
- ---------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.0%                                                                                   
     ----------------------------------------------------------------------------------------------------------------
     Beaver Valley II Funding Corp., 9% Second Lease                                                      
     Obligation Bonds, 6/1/17                                                                  199,000        161,688
     ----------------------------------------------------------------------------------------------------------------
     El Paso Electric Co., 9.40% First Mtg. Bonds, Series E,                                              
     5/1/11                                                                                    250,000        249,375
     ----------------------------------------------------------------------------------------------------------------
     First PV Funding Corp., 10.30% Lease Obligation Bonds,                                               
     Series 1986A, 1/15/14                                                                     200,000        210,500
     ----------------------------------------------------------------------------------------------------------------
     New Zealand Electric Corp., 10% Debs., 10/15/01                            NZD            250,000        175,739
                                                                                                            ---------
                                                                                                              797,302
- ---------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 5.8%                                                                                   
     ----------------------------------------------------------------------------------------------------------------
     A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05                                          200,000        208,000
</TABLE>


                                       65
<PAGE>   83
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                           PRINCIPAL    MARKET VALUE
                                                                                           AMOUNT(1)    SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                 <C>           <C>       
TELECOMMUNICATIONS (CONTINUED)
     ---------------------------------------------------------------------------------------------------------------
     American Communications Services, Inc., 0%/12.75% Sr 
     Disc. Nts., 4/1/06                                                      (7)           $ 300,000     $   157,500
     ---------------------------------------------------------------------------------------------------------------
     Arch Communications Group, Inc., 0%/10.875% Sr. Disc 
     Nts., 3/15/08                                                           (7)             200,000         104,000
     ---------------------------------------------------------------------------------------------------------------
     Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts.,
     12/1/04                                                                 (7)             200,000         148,500
     ---------------------------------------------------------------------------------------------------------------
     Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04                          (7)             150,000         123,375
     ---------------------------------------------------------------------------------------------------------------
     Cellular Communications International, Inc., Zero Coupon
     Sr. Disc. Nts., 22.83%, 8/15/00                                         (5)             550,000         343,750
     ---------------------------------------------------------------------------------------------------------------
     Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03                   (7)              50,000          39,250
     ---------------------------------------------------------------------------------------------------------------
     Comunicacion Celular SA, 0%/13.125% Sr. Deferred
     Coupon Bonds, 11/15/03                                                  (7)             200,000         129,000
     ---------------------------------------------------------------------------------------------------------------
     Geotek Communications, Inc.:
      0%/15% Sr. Sec. Disc. Nts., 7/15/05                                    (7)             250,000         159,375
     12% Cv. Sr. Sub. Nts., 2/15/01                                                          250,000         350,000
     ---------------------------------------------------------------------------------------------------------------
     GST Telecommunications, Inc., 0%/13.875% Cv. Sr. Sub. 
     Disc. Nts., 12/15/05                                                 (2)(7)              25,000          24,781
     ---------------------------------------------------------------------------------------------------------------
     GST USA, Inc., 0%/13.875% Bonds, 12/15/05                               (7)             200,000         116,000
     ---------------------------------------------------------------------------------------------------------------
     Horizon Cellular Telephone LP/Horizon Finance Corp.,
     0%/11.375% Sr. Sub. Disc. Nts., 10/1/00                                 (7)             250,000         235,625
     ---------------------------------------------------------------------------------------------------------------
     Hyperion Telecommunications, Inc., Units (each unit
     consists of $1,000 principal amount of 0%/13% sr. disc 
     nts., 4/15/03 and one warrant to purchase 1.8645 shares
     of common stock)                                                  (2)(7)(8)             300,000         169,500
     ---------------------------------------------------------------------------------------------------------------
     In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02                   (7)             200,000          71,500
     ---------------------------------------------------------------------------------------------------------------
     IntelCom Group (USA), Inc.:
     0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06                                (2)(7)             370,000         202,575
     0%/13.50% Sr. Disc. Nts., 9/15/05                                       (7)             250,000         150,625
     ---------------------------------------------------------------------------------------------------------------
     InterCel, Inc., 0%/12% Sr. Disc. Nts., 5/1/06                           (7)             300,000         165,000
     ---------------------------------------------------------------------------------------------------------------
     MFS Communications Co., Inc.:
     0%/8.875% Sr. Disc. Nts., 1/15/06                                       (7)             550,000         334,125
     0%/9.375% Sr. Disc. Nts., 1/15/04                                       (7)             200,000         152,000
     ---------------------------------------------------------------------------------------------------------------
     NEXTLINK Communications LLC/NEXTLINK Capital,
     Inc., 12.50% Sr. Nts., 4/15/06                                          (2)             200,000         200,000
     ---------------------------------------------------------------------------------------------------------------
     Occidente y Caribe Celular SA, Units (each unit consists of
     $1,000 principal amount of 0%/14% sr. disc. nts., 3/15/04
     and one warrant to purchase 5.709 ordinary shares)                (2)(7)(8)             200,000         103,500
     ---------------------------------------------------------------------------------------------------------------
     Petersburg Long Distance, Inc., Units (each unit consists of
     $1,000 principal amount of 0%/14% sr. disc. nts., 6/1/04 and
     one warrant to purchase 34 ordinary shares)                       (2)(7)(8)             300,000         237,000
     ---------------------------------------------------------------------------------------------------------------
     PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts.,
     11/15/01                                                                (7)             300,000         273,000
     ---------------------------------------------------------------------------------------------------------------
     Teleport Communications Group, Inc., 0%/11.125% Sr 
     Disc. Nts., 7/1/07                                                   (4)(7)             300,000         174,750
     ---------------------------------------------------------------------------------------------------------------
     USA Mobile Communications, Inc. II, 14% Sr. Nts., 11/1/04                               150,000         173,250
                                                                                                         -----------
                                                                                                           4,545,981
                                                                                                         -----------

     Total Corporate Bonds and Notes (Cost $22,332,402)                                                   22,727,634
</TABLE>


                                       66
<PAGE>   84
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                                       MARKET VALUE
                                                                                               SHARES                  SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>           <C>                      <C>       
COMMON STOCKS - 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
       ----------------------------------------------------------------------------------------------------------------------------
       Celcaribe SA                                                             (2)(10)        24,390                    $   41,463
       ----------------------------------------------------------------------------------------------------------------------------
       EchoStar Communications Corp., Cl. A                                     (10)            1,750                        49,438
       ----------------------------------------------------------------------------------------------------------------------------
       El Paso Electric Co.                                                     (10)            4,954                        29,724
       ----------------------------------------------------------------------------------------------------------------------------
       Gillett Holdings, Inc.                                                   (6)(10)        15,000                       450,000
       ----------------------------------------------------------------------------------------------------------------------------
       GST Telecommunications, Inc.                                             (10)            2,800                        36,750
       ----------------------------------------------------------------------------------------------------------------------------
       IntelCom Group, Inc.                                                     (10)            1,400                        35,000
       ----------------------------------------------------------------------------------------------------------------------------
       United International Holdings, Inc., Cl. A                               (10)            1,000                        13,750
                                                                                                                         ----------

       Total Common Stocks (Cost $485,351)                                                                                  656,125

- -----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 2.3%
- -----------------------------------------------------------------------------------------------------------------------------------
       BankAmerica Corp., 8.375%, Series K                                                      7,000                       178,500
       ----------------------------------------------------------------------------------------------------------------------------
       Cablevision Systems Corp., 8.50% Cum. Cv., Series I                                      6,000                       156,000
       ----------------------------------------------------------------------------------------------------------------------------
       California Federal Bank, 10.625% Non-Cum., Series B                                      2,000                       219,000
       ----------------------------------------------------------------------------------------------------------------------------
       Earthwatch, Inc., 12% Cv. Sr. Preferred Stock, Series C                  (2)(11)        10,000                       103,500
       ----------------------------------------------------------------------------------------------------------------------------
       El Paso Electric Co., 11.40% Series A Preferred Stock                    (10)(11)        1,000                       105,000
       ----------------------------------------------------------------------------------------------------------------------------
       First Nationwide Bank, 11.50% Non-Cum                                                    2,000                       219,000
       ----------------------------------------------------------------------------------------------------------------------------
       Glendale Federal Bank, F.S.B., 8.75% Non-Cum. Cv., Series E                              1,000                        48,000
       ----------------------------------------------------------------------------------------------------------------------------
       Kelley Oil & Gas Corp., $2.625 Cv                                                        1,000                        22,250
       ----------------------------------------------------------------------------------------------------------------------------
       Prime Retail, Inc., $19.00 Cv., Series B                                                 6,000                       108,000
       ----------------------------------------------------------------------------------------------------------------------------
       SDW Holdings Corp., 15% Cum. Sr. Exchangeable Preferred Stock            (2)(10)         3,750                       118,125
       ----------------------------------------------------------------------------------------------------------------------------
       Time Warner, Inc., 10.25% Cum., Series K, Exchangeable Preferred Stock   (2)(11)           250                       245,000
       ----------------------------------------------------------------------------------------------------------------------------
       Walden Residential Properties, Inc., 9.16% Cv., Series A                                10,000                       247,500
                                                                                                                         ----------

       Total Preferred Stocks (Cost $1,737,693)                                                                           1,769,875

                                                                                               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                         4,500
       -----------------------------------------------------------------------------------------------------------------------------
       Communication Cellular SA Wts., Exp. 11/03                               (2)               200                         1,000
       -----------------------------------------------------------------------------------------------------------------------------
       Eye Care Centers of America, Inc. Wts., Exp. 10/03                       (2)                70                           350
       -----------------------------------------------------------------------------------------------------------------------------
       Geotek Communications, Inc. Wts., Exp. 7/05                              (2)             7,500                        52,500
       -----------------------------------------------------------------------------------------------------------------------------
       Icon Health & Fitness, Inc. Wts., Exp. 11/99                             (2)               200                         5,000
       -----------------------------------------------------------------------------------------------------------------------------
       In-Flight Phone Corp. Wts., Exp. 8/02                                    (2)               200                            --
       -----------------------------------------------------------------------------------------------------------------------------
       IntelCom Group, Inc. Wts., Exp. 9/05                                     (2)               825                        15,881
       -----------------------------------------------------------------------------------------------------------------------------
       SDW Holdings Corp., Cl. B Wts., Exp. 12/06                               (2)               375                         4,875
       -----------------------------------------------------------------------------------------------------------------------------
       Terex Corp. Rts., Exp. 7/96                                              (2)                36                             2
       -----------------------------------------------------------------------------------------------------------------------------
       United International Securities Ltd. Wts., Exp. 11/99                                      200                         5,800
                                                                                                                         ----------

       Total Rights, Warrants and Certificates (Cost $11,014)                                                                98,908
</TABLE>

                                       67
<PAGE>   85
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                  PRINCIPAL             MARKET VALUE
                                                                                                  AMOUNT(1)              SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                      <C>                   <C>
STRUCTURED INSTRUMENTS - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
       Bayerische Landesbank Girozentrale, New York Branch, 
       14% CD Linked Nts., 12/17/96 (indexed to the cross                                         $  650,000            $   651,040
       currency rates of Greek Drachma and European Currency 
       Unit)
       -----------------------------------------------------------------------------------------------------------------------------
       Bayerische Landesbank Girozentrale, New York Branch, 
       5.60% CD Linked Nts., 1/30/97 (indexed to the closing             NZD                          60,340                 44,788
       Nikkei 225 Index on 1/23/97, 10 yr. Japanese Yen swap rate 
       & New Zealand Dollar on 1/28/97)
       -----------------------------------------------------------------------------------------------------------------------------
       Canadian Imperial Bank of Commerce, New York Branch, 
       14% CD Linked Nts., 11/25/96 (indexed to the cross                                            150,000                147,195
       currency rates of Greek Drachma and European Currency
       Unit)
       -----------------------------------------------------------------------------------------------------------------------------
       Goldman, Sachs & Co., Argentina Local Market Securities
       Trust, 11.30%, 4/1/00 (representing debt of Argentina             (6)                         208,695                193,565
       (Republic of) Bonos del Tesoro Bonds, Series 10, 5.469%,
       4/1/00 and an interest rate swap between Goldman Sachs and
       the Trust)
       -----------------------------------------------------------------------------------------------------------------------------
       Swiss Bank Corp., New York Branch, 6.60% CD Linked 
       Nts., 1/30/97 (indexed to the closing Nikkei 225 Index on         NZD                         362,428                273,240
       1/23/97)
       -----------------------------------------------------------------------------------------------------------------------------
       United Mexican States Linked Nts. (indexed to the greater of 
       Cetes Option Amount or USD LIBOR Option Amount,                   (2)                         300,000                348,000
       11/27/96)
                                                                                                                        -----------

       Total Structured Instruments (Cost $1,588,826)                                                                     1,657,828

- ------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.7%
- ------------------------------------------------------------------------------------------------------------------------------------
       Repurchase agreement with First Chicago Capital Markets, 5.45%, 
       dated 6/28/96, to be repurchased at $4,502,044 on 7/1/96, 
       collateralized by U.S. Treasury Bonds, 6.25%-11.25%, 
       2/15/07-8/15/23, with a value of $3,016,773, and U.S. Treasury Nts., 
       4.75%-7.875%, 9/30/97-2/15/05, with a value of $1,574,324
       (Cost $4,500,000)                                                                           4,500,000              4,500,000

       -----------------------------------------------------------------------------------------------------------------------------
       TOTAL INVESTMENTS, AT VALUE (COST $77,701,887)                                                  100.0%            78,632,872
       -----------------------------------------------------------------------------------------------------------------------------
       LIABILITIES IN EXCESS OF OTHER ASSETS                                                            (0.0)                (6,707)
                                                                                                   ---------            -----------
       NET ASSETS                                                                                      100.0%           $78,626,165
                                                                                                   =========            ===========
</TABLE>


       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                    ITL - Italian Lira 
       CZK - Czech Koruna                       JPY - Japanese Yen 
       DEM - German Deutsche Mark               MXP - Mexican Peso 
       ESP - Spanish Peseta                     NZD - New Zealand Dollar 
       FIM - Finnish Markka                     PLZ - Polish Zloty
       GBP - British Pound Sterling             SEK - Swedish Krona

                                       68
<PAGE>   86
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND
Statement of Investments (Continued)

       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 $5,185,437 or 6.60% of the
       Fund's net assets, at June 30, 1996. 
       3. Represents the current interest rate for a variable rate security. 
       4. When-issued security to be delivered and settled after June 30, 1996.
       5. For zero coupon bonds, the interest rate shown is the effective yield
       on the date of purchase. 
       6. Identifies issues considered to be illiquid - See applicable note of
       Notes to Financial Statements. 
       7. Denotes a step bond: a zero coupon bond that converts to a fixed rate
       of interest at a designated future date. 
       8. Units may be comprised of several components, such as debt and equity
       and/or warrants to purchase equity at some point in the future. For units
       which represent debt securities, principal amount disclosed represents
       total underlying principal. 
       9. Represents the current interest rate for an increasing rate security.
       10. Non-income producing security. 
       11. Interest or dividend is paid in kind. 
       12. A sufficient amount of liquid assets has been designated to cover
       outstanding written call options, as follows: 

<TABLE>
<CAPTION>
                                              CONTRACTS/
                                              PRINCIPAL
                                               SUBJECT         EXPIRATION       EXERCISE           PREMIUM     MARKET VALUE 
                                               TO CALL            DATE            PRICE            RECEIVED      (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>             <C>              <C>               <C>          <C>     
       Call option on Czech Koruna             1,200,000          9/6/96         28.357(CZK)       $ 16,080       $ 29,556
       Call option on Mexican Peso               630,000          8/5/96           8.03(MXP)         16,947         22,425
       Call option on Morocco 
       (Kingdom of) Loan 
       Participation Agreement, Tranche A,
       6.437%, 1/1/09                            150,000          7/12/96       $ 71.25               1,425          1,845
                                                                                                   --------       --------
                                                                                                   $ 34,452       $ 53,826
                                                                                                   ========       ========
</TABLE>


       13. Securities with an aggregate market value of $182,866 are held in
       collateralized accounts to cover initial margin requirements on open
       futures sales contracts. See applicable note of Notes to Financial
       Statements.




See accompanying Notes to Financial Statements.

                                       69
<PAGE>   87
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                        PRINCIPAL   MARKET VALUE
                                                                                          AMOUNT      (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>    <C>        <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 0.7%
- ----------------------------------------------------------------------------------------------------------------
            Penn Traffic Co., 11.50% Sr. Nts., 4/15/06 (Cost $154,500)                   $150,000  $  139,875

- ----------------------------------------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS AND NOTES - 9.0%
- ----------------------------------------------------------------------------------------------------------------
            ALZA Corp., 5% Cv. Sub. Debs., 5/1/06                                         200,000     194,500
            ----------------------------------------------------------------------------------------------------
            Apple Computer, Inc., 6% Cv. Sub. Nts., 6/1/01                       (1)      200,000     196,750
            ----------------------------------------------------------------------------------------------------
            Continental Airlines, Inc., 6.75% Cv. Sub. Nts., 4/15/06             (1)      150,000     180,000
            ----------------------------------------------------------------------------------------------------
            Corporate Express, Inc., 4.50% Cv. Nts., 7/1/00                      (1)      200,000     199,000
            ----------------------------------------------------------------------------------------------------
            Jacor Communications, Inc., Zero Coupon Cv. Sr. Nts., 
            5.50%, 6/12/11                                                       (2)      250,000     116,562
            ----------------------------------------------------------------------------------------------------
            Nabors Industries, Inc., 5% Cv. Sub. Nts., 5/15/06                            200,000     224,000
            ----------------------------------------------------------------------------------------------------
            Softkey International, Inc., 5.50% Cv. Sr. Nts., 11/1/00                      150,000     120,750
            ----------------------------------------------------------------------------------------------------
            Time Warner, Inc., Zero Coupon Cv. Sr. Sub. Nts., 5.124%, 
            6/22/13                                                              (2)      500,000     205,625
            ----------------------------------------------------------------------------------------------------
            U.S. Office Products Co., 5.50% Cv. Sub. Nts., 5/15/03               (1)      250,000     253,125
            ----------------------------------------------------------------------------------------------------
            Williams-Sonoma, Inc., 5.25% Cv. Sub. Nts., 4/15/03                  (1)      225,000     240,188
                                                                                                   ------------- 

            Total Convertible Corporate Bonds and Notes (Cost $1,875,865)                           1,930,500  

<CAPTION>
                                                                                        SHARES
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>    <C>        <C>
COMMON STOCKS - 65.7%
- ----------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 4.0%
- ----------------------------------------------------------------------------------------------------------------
CHEMICALS - 3.1%
            ----------------------------------------------------------------------------------------------------
            IMC Global, Inc.                                                                6,000     225,750
            ----------------------------------------------------------------------------------------------------
            Monsanto Co.                                                                    2,500      81,250
            ----------------------------------------------------------------------------------------------------
            Potash Corp. of Saskatchewan, Inc.                                              2,000     132,500
            ----------------------------------------------------------------------------------------------------
            W.R. Grace & Co.                                                                3,000     212,625
                                                                                                   -------------  
                                                                                                      652,125
- ----------------------------------------------------------------------------------------------------------------
METALS - 0.9%
            ----------------------------------------------------------------------------------------------------
            Allegheny Ludlum Corp.                                                          2,000      37,750
            ----------------------------------------------------------------------------------------------------
            Century Aluminum Co.                                                 (3)       10,000     157,500
                                                                                                   -------------   
                                                                                                      195,250
- ----------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 12.3%
- ----------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 0.8%
            ----------------------------------------------------------------------------------------------------
            Ford Motor Co.                                                                  1,500      48,562
            ----------------------------------------------------------------------------------------------------
            ITI Technologies, Inc.                                               (3)        4,000     132,000
                                                                                                   -------------   
                                                                                                      180,562
- ----------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 5.5%
            ----------------------------------------------------------------------------------------------------
            Delta Air Lines, Inc.                                                           3,500     290,500
            ----------------------------------------------------------------------------------------------------
            Disney (Walt) Co.                                                               1,250      78,594
            ----------------------------------------------------------------------------------------------------
            Eastman Kodak Co.                                                               1,500     116,625
            ----------------------------------------------------------------------------------------------------
            Gaylord Entertainment Co., Cl. A                                                2,100      59,325
            ----------------------------------------------------------------------------------------------------
            Grand Casinos, Inc.                                                  (3)        2,000      51,500
            ----------------------------------------------------------------------------------------------------
            ITT Corp. (New)                                                      (3)        2,500     165,625
            ----------------------------------------------------------------------------------------------------
            Suburban Lodges of America, Inc.                                     (3)        2,000      46,250
            ----------------------------------------------------------------------------------------------------
            U S West Media Group                                                 (3)        8,000     146,000
            ----------------------------------------------------------------------------------------------------
            Wendy's International, Inc.                                                     5,000      93,125
</TABLE>


                                       70
<PAGE>   88
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments (Continued)
 
<TABLE>
<CAPTION>
                                                                                                    MARKET VALUE
                                                                                           SHARES     (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>       <C>      <C>    
LEISURE & ENTERTAINMENT (CONTINUED)
            ----------------------------------------------------------------------------------------------------
            Western Pacific Airlines, Inc.                                       (3)        8,250   $  117,562
                                                                                                    ------------
                                                                                                     1,165,106
- ----------------------------------------------------------------------------------------------------------------
MEDIA - 3.6%
            ----------------------------------------------------------------------------------------------------
            Comcast Corp., Cl. A Special                                                    8,000      148,000
            ----------------------------------------------------------------------------------------------------
            Infinity Broadcasting Corp., Cl. A                                   (3)        3,500      105,000
            ----------------------------------------------------------------------------------------------------
            Viacom, Inc., Cl. B                                                  (3)        8,250      320,719
            ----------------------------------------------------------------------------------------------------
            World Color Press, Inc.                                              (3)        7,500      190,312
                                                                                                    ------------
                                                                                                       764,031
- ----------------------------------------------------------------------------------------------------------------
RETAIL:  GENERAL - 1.0%
            ----------------------------------------------------------------------------------------------------
            Dillard Department Stores, Inc., Cl. A                                          1,500       54,750
            ----------------------------------------------------------------------------------------------------
            Donna Karan International, Inc.                                                 3,600      100,800
            ----------------------------------------------------------------------------------------------------
            Warnaco Group, Inc. (The), Cl. A                                                2,000       51,500
                                                                                                    ------------
                                                                                                       207,050
- ----------------------------------------------------------------------------------------------------------------
RETAIL:  SPECIALTY - 1.4%
            ----------------------------------------------------------------------------------------------------
            Circuit City Stores, Inc.                                                       1,500       54,187
            ----------------------------------------------------------------------------------------------------
            MicroAge, Inc.                                                       (3)        8,500      115,812
            ----------------------------------------------------------------------------------------------------
            Neostar Retail Group, Inc.                                           (3)       10,000       51,250
            ----------------------------------------------------------------------------------------------------
            The Limited, Inc.                                                               3,500       75,250
                                                                                                    ------------
                                                                                                       296,499
- ----------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 11.4%
- ----------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.4%
            ----------------------------------------------------------------------------------------------------
            Cott Corp.                                                                     10,000       93,750
- ----------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 1.2%
            ----------------------------------------------------------------------------------------------------
            Astra AB Free, Series A                                                         1,500       66,235
            ----------------------------------------------------------------------------------------------------
            Schering-Plough Corp.                                                           3,000      188,250
                                                                                                    ------------
                                                                                                       254,485
- ----------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 6.2%
            ----------------------------------------------------------------------------------------------------
            American Medical Response, Inc.                                                 2,750       96,937
            ----------------------------------------------------------------------------------------------------
            Arterial Vascular Engineering, Inc.                                  (3)        2,000       72,500
            ----------------------------------------------------------------------------------------------------
            Baxter International, Inc.                                                      3,000      141,750
            ----------------------------------------------------------------------------------------------------
            Boston Scientific Corp.                                              (3)        4,500      202,500
            ----------------------------------------------------------------------------------------------------
            Columbia/HCA Healthcare Corp.                                                   3,500      186,812
            ----------------------------------------------------------------------------------------------------
            Mid Atlantic Medical Services                                        (3)        2,500       35,625
            ----------------------------------------------------------------------------------------------------
            St. Jude Medical, Inc.                                               (3)        4,000      134,000
            ----------------------------------------------------------------------------------------------------
            Tenet Healthcare Corp.                                               (3)       10,500      224,437
            ----------------------------------------------------------------------------------------------------
            United Healthcare Corp.                                                         4,500      227,250
                                                                                                    ------------
                                                                                                     1,321,811
- ----------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.5%
            ----------------------------------------------------------------------------------------------------
            Kimberly-Clark Corp.                                                            3,500      270,375
            ----------------------------------------------------------------------------------------------------
            Premark International, Inc.                                                     1,000       18,500
            ----------------------------------------------------------------------------------------------------
            Tupperware Corp.                                                     (3)        1,000       42,250
                                                                                                    ------------
                                                                                                       331,125
- ----------------------------------------------------------------------------------------------------------------
TOBACCO - 2.1%
            ----------------------------------------------------------------------------------------------------
            Philip Morris Cos., Inc.                                                        4,250      442,000
- ----------------------------------------------------------------------------------------------------------------
ENERGY - 1.7%
- ----------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 1.1%
            ----------------------------------------------------------------------------------------------------
            Apache Corp.                                                                    4,000      131,500
</TABLE>


                                       71
<PAGE>   89
Apache Training 

OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                    MARKET VALUE
                                                                                           SHARES     (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>       <C>      <C>
ENERGY SERVICES & PRODUCERS (CONTINU
            ----------------------------------------------------------------------------------------------------
            GeoScience Corp.                                                     (3)        7,500    $ 105,000
                                                                                                       
                                                                                                       236,500
- ----------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 0.6%
            ----------------------------------------------------------------------------------------------------
            Chevron Corp.                                                                   1,000       59,000
            ----------------------------------------------------------------------------------------------------
            USX-Marathon Group                                                              4,000       80,500
                                                                                                     -----------
                                                                                                       139,500
- ----------------------------------------------------------------------------------------------------------------
FINANCIAL - 13.0%
- ----------------------------------------------------------------------------------------------------------------
BANKS - 5.6%
            ----------------------------------------------------------------------------------------------------
            Chase Manhattan Corp. (New)                                                     4,000      282,500
            ----------------------------------------------------------------------------------------------------
            Citicorp                                                                        2,500      206,562
            ----------------------------------------------------------------------------------------------------
            Coast Savings Financial, Inc.                                        (3)        5,000      163,750
            ----------------------------------------------------------------------------------------------------
            Commercial Federal Corp.                                                        1,250       47,812
            ----------------------------------------------------------------------------------------------------
            CoreStates Financial Corp.                                                      2,500       96,250
            ----------------------------------------------------------------------------------------------------
            First Chicago NBD Corp.                                                         1,250       48,906
            ----------------------------------------------------------------------------------------------------
            Fleet Financial Group, Inc.                                                     5,750      250,125
            ----------------------------------------------------------------------------------------------------
            Great Western Financial Corp.                                                   4,000       95,500
                                                                                                    ------------
                                                                                                     1,191,405
- ----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 3.4%
            ----------------------------------------------------------------------------------------------------
            American Express Co.                                                             5,000     223,125
            ----------------------------------------------------------------------------------------------------
 
            Associates First Capital Corp., Cl. A                                (3)           500      18,812
            ----------------------------------------------------------------------------------------------------
            Countrywide Credit Industries, Inc.                                              2,500      61,875
            ----------------------------------------------------------------------------------------------------
            Dean Witter, Discover & Co.                                                      1,250      71,563
            ----------------------------------------------------------------------------------------------------
            Federal National Mortgage Assn.                                                  1,500      50,250
            ----------------------------------------------------------------------------------------------------
            PMI Group, Inc. (The)                                                            3,000     127,500
            ----------------------------------------------------------------------------------------------------
            Travelers Group, Inc.                                                            3,750     171,094
                                                                                                     -----------
                                                                                                       724,219
- ----------------------------------------------------------------------------------------------------------------
INSURANCE - 4.0%
            ----------------------------------------------------------------------------------------------------
            Allstate Corp.                                                                   8,000     365,000
            ----------------------------------------------------------------------------------------------------
            Equitable of Iowa Cos., Inc.                                                       750      26,625
            ----------------------------------------------------------------------------------------------------
            Everest Reinsurance Holdings, Inc.                                              10,000     258,750
            ----------------------------------------------------------------------------------------------------
            IPC Holdings Ltd.                                                               10,000     201,250
                                                                                                     -----------
                                                                                                       851,625
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 4.1%
- ----------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.4%
            ----------------------------------------------------------------------------------------------------
            Honeywell, Inc.                                                                  1,750      95,375
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS - 1.0%
            ----------------------------------------------------------------------------------------------------
            BMC West Corp.                                                       (3)        12,000     205,500
- ----------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 0.5%
            ----------------------------------------------------------------------------------------------------
            DecisionOne Holdings Corp.                                           (3)         5,000     118,750
- ----------------------------------------------------------------------------------------------------------------
MANUFACTURING - 1.7%
            ----------------------------------------------------------------------------------------------------
            American Standard Cos., Inc.                                         (3)        11,000     363,000
- ----------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.5%
            ----------------------------------------------------------------------------------------------------
            Tranz Rail Holdings Ltd., Sponsored ADR                              (3)         7,500     104,063
- ----------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 18.2%
- ----------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 2.9%
            ----------------------------------------------------------------------------------------------------
            Boeing Co.                                                                       1,600     139,400
            ----------------------------------------------------------------------------------------------------
            Northrop Grumman Corp.                                                           1,700     115,813
            ----------------------------------------------------------------------------------------------------
            Rockwell International Corp.                                                     3,000     171,750
</TABLE>


                                       72
<PAGE>   90
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                    MARKET VALUE
                                                                                            SHARES     (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>        <C>     <C>
AEROSPACE/DEFENSE (CONTINUED)
            ----------------------------------------------------------------------------------------------------
            TRW, Inc.                                                                        2,100   $ 188,738
                                                                                                     -----------
                                                                                                       615,701
- ----------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 7.4%
            ----------------------------------------------------------------------------------------------------
            Cabletron Systems, Inc.                                              (3)         2,500     171,563
            ----------------------------------------------------------------------------------------------------
            Compaq Computer Corp.                                                (3)         1,250      61,563
            ----------------------------------------------------------------------------------------------------
            Digital Equipment Corp.                                              (3)         6,750     303,750
            ----------------------------------------------------------------------------------------------------
            International Business Machines Corp.                                            5,000     495,000
            ----------------------------------------------------------------------------------------------------
            Lexmark International Group, Inc., Cl. A                             (3)         5,000     100,625
            ----------------------------------------------------------------------------------------------------
            Seagate Technology, Inc.                                             (3)         6,500     292,500
            ----------------------------------------------------------------------------------------------------
            Sun Microsystems, Inc.                                               (3)         2,500     147,188
                                                                                                     -----------
                                                                                                     1,572,189
- ----------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.4%
            ----------------------------------------------------------------------------------------------------
            Nintendo Co. Ltd.                                                                2,900     215,752
            ----------------------------------------------------------------------------------------------------
            PLATINUM Technology, Inc.                                            (3)         8,000     121,000
            ----------------------------------------------------------------------------------------------------
            Structural Dynamics Research Corp.                                   (3)        11,000     242,000
            ----------------------------------------------------------------------------------------------------
            Sybase, Inc.                                                         (3)         1,500      35,438
            ----------------------------------------------------------------------------------------------------
            Worldtalk Corp.                                                      (3)        10,000     122,500
                                                                                                     -----------
                                                                                                       736,690
- ----------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.6%
            ----------------------------------------------------------------------------------------------------
            DuPont Photomasks, Inc.                                              (3)         5,800     118,900
            ----------------------------------------------------------------------------------------------------
            Hewlett-Packard Co.                                                              1,000      99,625
            ----------------------------------------------------------------------------------------------------
            Intel Corp.                                                                      1,500     110,156
            ----------------------------------------------------------------------------------------------------
            LSI Logic Corp.                                                      (3)         4,000     104,000
            ----------------------------------------------------------------------------------------------------
            Nokia Corp., Preference                                                          2,500      92,500
            ----------------------------------------------------------------------------------------------------
            Teradyne, Inc.                                                       (3)         2,750      47,438
            ----------------------------------------------------------------------------------------------------
            Texas Instruments, Inc.                                              (4)           750      37,406
            ----------------------------------------------------------------------------------------------------
            Waters Corp.                                                         (3)         5,000     165,000
                                                                                                     -----------
                                                                                                       775,025
- ----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 0.9%
            ----------------------------------------------------------------------------------------------------
            Bay Networks, Inc.                                                   (3)         1,000      25,750
            ----------------------------------------------------------------------------------------------------
            Cisco Systems, Inc.                                                  (3)         2,000     113,250
            ----------------------------------------------------------------------------------------------------
            Mobile Telecommunication Technologies Corp.                          (3)         3,000      43,875
                                                                                                     -----------
                                                                                                       182,875
- ----------------------------------------------------------------------------------------------------------------
UTILITIES - 1.0%
- ----------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 1.0%
            ----------------------------------------------------------------------------------------------------
            Teleport Communications Group, Inc., Cl. A                                       7,100     135,788
            ----------------------------------------------------------------------------------------------------
            Western Wireless Corp.                                               (3)         3,500      74,813
                                                                                                     -----------
                                                                                                       210,601
                                                                                                     -----------
                          
            Total Common Stocks (Cost $13,523,070)                                                  14,026,812


- ----------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 6.2%
- ----------------------------------------------------------------------------------------------------------------
            Cablevision Systems Corp., 8.50% Cum. Cv., Series I                              4,000     104,000
            ----------------------------------------------------------------------------------------------------
            K-Mart Financing I, 7.75% Cv. Preferred Stock                        (3)         5,000     271,250
            ----------------------------------------------------------------------------------------------------
            Noram Financing I, 6.25% Cv. Preferred Stock                                     5,000     271,250
            ----------------------------------------------------------------------------------------------------
            SFX Broadcasting, Inc., 6.50% Cv. Preferred                       (1)(3)         5,000     261,250
</TABLE>


                                       73
<PAGE>   91
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments (Continued)

<TABLE>
<CAPTION>
                                                                                                    MARKET VALUE
                                                                                            SHARES    (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>        <C>     <C>   
PREFERRED STOCKS (CONTINUED)
            ----------------------------------------------------------------------------------------------------
            Trans World Airlines, Inc., 8% Cum. Cv. Exchangeable 
            Preferred Stock                                                      (1)         8,500    $ 415,437
                                                                                                    ------------   
                                                                                                                   

            Total Preferred Stocks (Cost $1,285,064)                                                  1,323,187
 
- ----------------------------------------------------------------------------------------------------------------
OTHER SECURITIES - 6.0%
- ----------------------------------------------------------------------------------------------------------------

            Alco Standard Corp., $5.04 Depositary Shares each 
            representing 1/100 of a share of Conversion 
            Preferred Stock, Series BB, Automatically Convertible Equity 
            Securities                                                                      1,250       103,750
            ----------------------------------------------------------------------------------------------------
            AnnTaylor Finance Trust, 8.50% Cv. Trust Originated 
            Preferred Securities                                              (1)(3)        5,000       298,125
            ----------------------------------------------------------------------------------------------------
            Elsag Bailey Financing Trust, 5.50% Cv. Trust Originated 
            Preferred Securities                                                 (1)        2,000        99,000
            ----------------------------------------------------------------------------------------------------
            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                                                               3,000        75,750
            ----------------------------------------------------------------------------------------------------
            Merrill Lynch & Co., 7.25% Structured Yield Product Exchangeable 
            for Stock                                                            (3)        4,000       226,500
            ----------------------------------------------------------------------------------------------------
            Merrill Lynch & Co., Inc., 6% Cv. Preferred, Structured 
            Yield Product Exchangeable for Cox Communications, Inc., 
            Common Stock                                                         (3)        5,000       110,625
            ----------------------------------------------------------------------------------------------------
            Salomon, Inc., 7.625% Cv. Preferred, Debt Exchangeable for 
            Common Stock                                                                    6,800       187,000
            ----------------------------------------------------------------------------------------------------
            Westinghouse Electric Corp., Participating Equity
            Preferred Shares, $1.30 Cv., Series C                                (1)       10,000       176,250
                                                                                                                         
                                                                                                    ------------
           Total Other Securities (Cost $1,220,258)                                                   1,277,000

                                                                                       PRINCIPAL
                                                                                         AMOUNT
- ----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 15.5%
- ----------------------------------------------------------------------------------------------------------------

            Repurchase agreement with First Chicago Capital Markets, 5.45%,
            dated 6/28/96, to be repurchased at $3,301,499 on 7/1/96,
            collateralized by U.S. Treasury Bonds, 6.25%-11.25%,
            2/15/07-8/15/23, with a value of $2,212,300 and U.S. Treasury Nts.,
            4.75%-7.875%, 9/30/97-2/15/05, with a value of $1,154,505
            (Cost $3,300,000)                                                          $3,300,000     3,300,000

            ---------------------------------------------------------------------------------------------------- 
            TOTAL INVESTMENTS, AT VALUE (COST $21,358,757)                                  103.1%   21,997,374
            ----------------------------------------------------------------------------------------------------
            LIABILITIES IN EXCESS OF OTHER ASSETS                                            (3.1)     (664,683)
                                                                                       ----------   ------------
            NET ASSETS                                                                      100.0%  $21,332,691   
                                                                                       ==========   ============
</TABLE>

            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
            $2,319,125 or 10.87% of the Fund's net assets, at June 30, 1996.


                                       74
<PAGE>   92
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Statement of Investments (Continued)

            
            -------------------------------------------------------------------
                2. For zero coupon bonds, the interest rate shown is the
                effective yield on the date of purchase.

                3. Non-income producing security.

                4. A sufficient amount of liquid assets has been designated to
                cover outstanding written call options, as follows: 
<TABLE>
<CAPTION>
                                                         SHARES
                                                         SUBJECT     EXPIRATION    EXERCISE     PREMIUM        MARKET VALUE
                                                         TO CALL        DATE         PRICE      RECEIVED        (NOTE 1)
                --------------------------------------------------------------------------------------------------------------
                <S>                                        <C>         <C>           <C>         <C>            <C>
                Texas Instruments, Inc., Call Opt.         700         7/96          $50         $4,537         $ 1,138

</TABLE>


                See accompanying Notes to Financial Statements.


                                       75
<PAGE>   93
Oppenheimer Variable Account Funds
Statements of Assets and Liabilities
June 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Oppenheimer
                                                          Oppenheimer     Oppenheimer     Oppenheimer    Capital     Oppenheimer
                                                             Money        High Income        Bond      Appreciation    Growth      
                                                             Fund            Fund            Fund         Fund          Fund
                                                       ----------------------------------------------------------------------------
<S>                                                    <C>             <C>             <C>            <C>           <C>    <C>
ASSETS:                     
Investments, at value (cost * ) (including repurchase
   agreements **) - see accompanying statements        $115,072,969    $156,651,526    $311,908,746   $496,438,966  $144,789,612
Unrealized appreciation on forward foreign currency
   exchange contracts - See applicable note                      --          86,396          44,513             --            --
Cash                                                         19,755         239,189          33,484      1,171,411       231,093
Receivables:
   Closed forward foreign currency exchange contracts            --          28,112           4,502             --            --
   Dividends and interest                                   174,385       2,102,997       5,038,216         89,350         92,377   
   Shares of beneficial interest sold                        36,125         327,796         173,827      1,379,023        188,713
   Investments sold                                              --         611,959       1,426,309      3,904,622      1,096,302
Other                                                         2,633           3,814           4,736          6,546          3,708
                                                       ----------------------------------------------------------------------------
  Total assets                                          115,305,867     160,051,789     318,634,333    502,989,918    146,401,805
                                                       ----------------------------------------------------------------------------
LIABILITIES:
Options written, at value (premiums received ***)
   - see accompanying statements and notes                       --          22,241          45,966             --              --
Unrealized depreciation on forward foreign currency
   exchange contracts - See applicable note                      --           8,511          15,592             --              --
Payables and other liabilities:
   Closed forward foreign currency exchange contracts            --          11,240          18,999             --              --
   Daily variation on futures contracts - See notes              --              --              --             --              --
   Dividends                                                158,183              --              --             --              --
   Investments purchased (including those purchased 
   on a when-issued basis ****) - Note 1                         --       4,275,977         759,038     16,011,339       1,655,939
   Shares of beneficial interest redeemed                   544,471              --         142,079         52,678             644
   Custodian fees                                             3,308           9,098          14,005          9,821           3,287
   Other                                                     13,647          17,572          21,754         43,898          19,727
                                                       ----------------------------------------------------------------------------
      Total liabilities                                     719,609       4,344,639       1,017,433     16,117,736       1,679,597
                                                       ----------------------------------------------------------------------------
NET ASSETS                                             $114,586,258    $155,707,150    $317,616,900   $486,872,182    $144,722,208
                                                       ============================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital                                        $114,602,218    $150,590,951    $315,750,262   $357,898,519    $107,561,054
Undistributed net investment income                              --         624,260         901,640         98,398         684,501
Accumulated net realized gain (loss) from investments 
   and foreign currency transactions                        (15,960)     (2,275,267)        (92,383)    23,861,818       5,825,003
Net unrealized appreciation on investments and
   translation of assets and liabilities denominated           
   in foreign currencies                                         --       6,767,206       1,057,381    105,013,447      30,651,650
                                                       ----------------------------------------------------------------------------
NET ASSETS                                             $114,586,258    $155,707,150    $317,616,900   $486,872,182    $144,722,208
                                                       ============================================================================
SHARES OF BENEFICIAL INTEREST
OUTSTANDING                                             114,602,218      14,510,103      27,823,143     12,713,932       5,972,737
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE                                      $1.00          $10.73          $11.42         $38.29          $24.23
*Cost                                                  $115,072,969    $149,958,141    $310,870,304   $391,425,519    $114,137,962
**Repurchase agreements                                          --     $15,800,000     $18,900,000    $87,800,000     $17,400,000
***Premiums received                                             --         $17,175         $30,995             --              --
****When-issued basis                                            --      $3,235,962              --             --              --
</TABLE>
           

See accompanying Notes to Financial Statements.


                                       76
<PAGE>   94
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Assets and Liabilities (Continued)
JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                            OPPENHEIMER          OPPENHEIMER        OPPENHEIMER       OPPENHEIMER
                                                              MULTIPLE              GLOBAL           STRATEGIC          GROWTH &
                                                             STRATEGIES           SECURITIES            BOND             INCOME
                                                                FUND                 FUND               FUND              FUND
                                                            ----------------------------------------------------------------------
<S>                                                         <C>                 <C>               <C>                <C>          
ASSETS:                                                                                                                       
Investments, at value (cost * ) (including repurchase
   agreements **) - see accompanying statements             $ 421,715,693       $ 481,017,994     $  78,632,872      $  21,997,374
Unrealized appreciation on forward foreign currency
   exchange contracts - See applicable note                          --             2,092,219            34,104               --
Cash                                                              190,678           1,178,720           134,233             99,773
Receivables:
   Closed forward foreign currency exchange contracts                --                  --              18,995               --
   Dividends and interest                                       3,113,392           1,159,071         1,144,202             31,638
   Shares of beneficial interest sold                             239,641           1,154,637           130,475            160,670
   Investments sold                                               471,269           3,499,164           635,623            393,763
Other                                                               7,460               6,374             2,460              1,295
                                                            ----------------------------------------------------------------------
  Total assets                                                425,738,133         490,108,179        80,732,964         22,684,513
                                                            ----------------------------------------------------------------------
LIABILITIES:
Options written, at value (premiums received ***)
   - see accompanying statements and notes                        879,731                --              53,826              1,138
Unrealized depreciation on forward foreign currency
   exchange contracts - See applicable note                          --                21,657            36,086               --
Payables and other liabilities:
   Closed forward foreign currency exchange contracts                --                  --                --                 --
   Daily variation on futures contracts - See notes                  --                  --               3,094               --
   Dividends                                                         --                  --                --                 --
   Investments purchased (including those purchased
   on a when-issued basis ****) - Note 1                        2,873,028           8,584,203         1,999,087          1,332,856
   Shares of beneficial interest redeemed                          13,965               1,038             1,616               --
   Custodian fees                                                  27,847             108,084             2,328              5,406
   Other                                                           17,248              50,021            10,762             12,422
                                                            ----------------------------------------------------------------------
      Total liabilities                                         3,811,819           8,765,003         2,106,799          1,351,822
                                                            ----------------------------------------------------------------------
NET ASSETS                                                  $ 421,926,314       $ 481,343,176     $  78,626,165      $  21,332,691
                                                            ======================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital                                             $ 366,114,884       $ 450,940,815     $  77,920,709      $  19,093,273
Undistributed net investment income                               853,394           3,185,134           652,100              1,351
Accumulated net realized gain (loss) from investments
   and foreign currency transactions                            6,442,997         (25,451,676)         (851,495)         1,596,051
Net unrealized appreciation on investments and
   translation of assets and liabilities denominated
   in foreign currencies                                       48,515,039          52,668,903           904,851            642,016
                                                            ----------------------------------------------------------------------
NET ASSETS                                                  $ 421,926,314       $ 481,343,176     $  78,626,165      $  21,332,691
                                                            ======================================================================
SHARES OF BENEFICIAL INTEREST
OUTSTANDING                                                    28,714,076          29,630,799        15,990,133          1,444,474
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE                                    $       14.69       $       16.24     $        4.92      $       14.77
*Cost                                                       $ 373,134,359       $ 430,416,694     $  77,701,887      $  21,358,757
**Repurchase agreements                                     $  71,300,000       $  17,900,000     $   4,500,000      $   3,300,000
***Premiums received                                        $     809,437                --       $      34,452      $       4,537
****When-issued basis                                                --                  --       $   1,244,208               --
</TABLE>



See accompanying Notes to Financial Statements.

                                       77
<PAGE>   95
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Operations
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                                                                     OPPENHEIMER
                                                        OPPENHEIMER    OPPENHEIMER    OPPENHEIMER      CAPITAL         OPPENHEIMER
                                                           MONEY       HIGH INCOME        BOND       APPRECIATION         GROWTH
                                                           FUND           FUND           FUND            FUND              FUND
                                                      ------------------------------------------------------------------------------
<S>                                                     <C>           <C>            <C>            <C>               <C>        
INVESTMENT INCOME:
Interest (net of withholding taxes of *)                $ 2,079,835   $ 6,828,844    $ 8,882,639    $ 1,540,454       $   619,167
Dividends (net of withholding taxes of **)                     --         275,031         47,527        106,666           593,891
                                                      ------------------------------------------------------------------------------
   Total income                                           2,079,835     7,103,875      8,930,166      1,647,120         1,213,058
                                                      ------------------------------------------------------------------------------
EXPENSES:
Management fees - See applicable note                       169,884       535,556        874,928      1,464,761           488,805
Custodian fees and expenses                                   2,230        34,329         18,960         24,420             5,212
Legal and auditing fees                                       6,597         8,332          6,595          6,494             5,513
Insurance expenses                                            1,769         2,443          2,887          2,099             2,251
Trustees' fees and expenses                                   1,177         1,746          1,790          2,433             1,103
Registration and filing fees                                   --           8,598         14,607         30,591             5,888
Other                                                         1,713           919            590            899               229
                                                      ------------------------------------------------------------------------------
   Total expenses                                           183,370       591,923        920,357      1,531,697           509,001
                                                      ------------------------------------------------------------------------------
NET INVESTMENT INCOME                                     1,896,465     6,511,952      8,009,809        115,423           704,057
                                                      ------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments:
   Unaffiliated companies                                     2,387     1,161,443        104,747     24,183,340         5,982,807
   Affiliated companies                                        --            --             --             --                --
Closing of futures contracts                                   --            --          (67,865)          --                --
Closing and expiration of options written                      --          33,013         83,599           --                --
Foreign currency transactions                                  --         (62,140)       (85,215)          --                --
Net change in unrealized appreciation or
   depreciation on:
Investments                                                    --       1,128,846     (7,873,177)    42,038,100         7,033,727
Translation of assets and liabilities denominated
    in foreign currencies                                      --         (86,883)       104,084           --                --
                                                      ------------------------------------------------------------------------------

Net realized and unrealized gain (loss)                       2,387     2,174,279     (7,733,827)    66,221,440        13,016,534
                                                      ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS                               $ 1,898,852   $ 8,686,231    $   275,982    $66,336,863       $13,720,591
                                                      ==============================================================================

*Interest                                                      --          13,605    $    36,464           --                --
**Dividends                                                    --            --             --             --                --
</TABLE>




See accompanying Notes to Financial Statements.

                                       78
<PAGE>   96
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Operations (Continued)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
                                                       OPPENHEIMER        OPPENHEIMER           OPPENHEIMER           OPPENHEIMER
                                                         MULTIPLE            GLOBAL              STRATEGIC              GROWTH &
                                                        STRATEGIES         SECURITIES               BOND                 INCOME
                                                           FUND               FUND                  FUND                  FUND
                                                       ----------------------------------------------------------------------------
<S>                                                     <C>              <C>                 <C>                 <C>         
INVESTMENT INCOME:
Interest (net of withholding taxes of *)                $  9,684,176     $  1,229,932        $  3,178,234        $     60,155
Dividends (net of withholding taxes of **)                 2,439,305        3,698,778              36,922              66,087
                                                       ----------------------------------------------------------------------------
   Total income                                           12,123,481        4,928,710           3,215,156             126,242
                                                       ----------------------------------------------------------------------------
EXPENSES:
Management fees - See applicable note                      1,477,367        1,541,026             251,463              39,407
Custodian fees and expenses                                   40,788          152,700              21,499              14,821
Legal and auditing fees                                       11,188           11,848               6,299               6,550
Insurance expenses                                             4,756            3,529                --                   886
Trustees' fees and expenses                                    5,005            2,328                 458               1,287
Registration and filing fees                                  14,779           29,472               6,516               5,218
Other                                                          1,846            1,605                 431               1,603
                                                       ----------------------------------------------------------------------------
   Total expenses                                          1,555,729        1,742,508             286,666              69,772
                                                       ----------------------------------------------------------------------------
NET INVESTMENT INCOME                                     10,567,752        3,186,202           2,928,490              56,470
                                                       ----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments:
   Unaffiliated companies                                  6,574,588        3,725,263             688,881           1,598,305
   Affiliated companies                                         --             20,580                --                  --
Closing of futures contracts                                    --               --                18,778                --
Closing and expiration of options written                    765,694             --               (24,449)              1,764
Foreign currency transactions                                (22,836)      (3,023,567)            113,470                --
Net change in unrealized appreciation or
   depreciation on:
Investments                                                7,003,866       31,486,881            (903,801)            144,321
Translation of assets and liabilities denominated
    in foreign currencies                                   (648,298)      (2,628,229)            (32,399)             (7,480)
                                                       ----------------------------------------------------------------------------

Net realized and unrealized gain (loss)                   13,673,014       29,580,928            (139,520)          1,736,910
                                                       ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS                               $ 24,240,766     $ 32,767,130        $  2,788,970        $  1,793,380
                                                       ============================================================================

*Interest                                               $      9,155             --          $     21,403                --
**Dividends                                             $     65,226     $    228,319                --          $        561
</TABLE>

See accompanying Notes to Financial Statements.

                                       79
<PAGE>   97
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Changes in Net Assets
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited) AND THE YEAR ENDED 
DECEMBER 31, 1995

<TABLE>
<CAPTION>
                                                              OPPENHEIMER                      OPPENHEIMER                 
                                                                 MONEY                         HIGH INCOME                 
                                                                  FUND                             FUND                    
                                                        ----------------------------------------------------------------
                                                             1996             1995            1996             1995      
                                                        ----------------------------------------------------------------
<S>                                                    <C>              <C>              <C>             <C> 
OPERATIONS:
Net investment income                                   $   1,896,465    $   4,149,627    $   6,511,952    $  11,343,977 
Net realized gain (loss)                                        2,387            5,356        1,132,316          622,733 
Net change in unrealized appreciation or depreciation              --               --        1,041,963        9,413,001 
                                                        ----------------------------------------------------------------

Net increase in net assets resulting from operations        1,898,852        4,154,983        8,686,231       21,379,711 
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income                       (1,896,465)      (4,149,626)      (7,360,821)     (12,039,383)
Distributions from net realized gain                               --               --               --               -- 
Distributions in excess of net realized gain                       --               --               --               -- 
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
   beneficial interest transactions - Note 2               49,197,411      (24,289,814)      20,930,960       28,412,143 
                                                       -----------------------------------------------------------------         
NET ASSETS:
Total increase (decrease)                                  49,199,798      (24,284,457)      22,256,370       37,752,471 
Beginning of period                                        65,386,460       89,670,917      133,450,780       95,698,309 
                                                       -----------------------------------------------------------------           
End of period                                           $ 114,586,258    $  65,386,460    $ 155,707,150    $ 133,450,780 
                                                       =================================================================
</TABLE>


<TABLE>
<CAPTION>
                                                                               OPPENHEIMER            
                                                                                  BOND                
                                                                                  FUND                
                                                                      ------------------------------    
                                                                           1996             1995       
                                                                      ------------------------------    
<S>                                                                  <C>               <C>
OPERATIONS:                                                                                           
Net investment income                                                  $   8,009,809    $  11,813,502 
Net realized gain (loss)                                                      35,266        1,310,131 
Net change in unrealized appreciation or depreciation                     (7,769,093)      13,318,419 
                                                                       ------------------------------ 
                                                                                                      
Net increase in net assets resulting from operations                         275,982       26,442,052 
DIVIDENDS AND DISTRIBUTIONS TO                                                                        
SHAREHOLDERS:                                                                                         
Dividends from net investment income                                      (8,450,650)     (11,209,883)
Distributions from net realized gain                                        (133,010)              -- 
Distributions in excess of net realized gain                                      --               -- 
BENEFICIAL INTEREST TRANSACTIONS:                                                                     
Net increase (decrease) in net assets resulting from                                                  
   beneficial interest transactions - Note 2                             114,692,808       60,932,217 
                                                                       ------------------------------ 
NET ASSETS:                                                                                           
Total increase (decrease)                                                106,385,130       76,164,386 
Beginning of period                                                      211,231,770      135,067,384 
                                                                       ------------------------------ 
End of period                                                          $ 317,616,900    $ 211,231,770 
                                                                       ==============================                         
</TABLE>

See accompanying Notes to Financial Statements.


                                       80
<PAGE>   98
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Changes in Net Assets(Continued)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited) AND THE YEAR ENDED 
DECEMBER 31, 1995

<TABLE>
<CAPTION>
                                                              OPPENHEIMER                                               
                                                                CAPITAL                        OPPENHEIMER              
                                                              APPRECIATION                        GROWTH                
                                                                  FUND                             FUND                 
                                                       --------------------------------------------------------------
                                                             1996            1995            1996             1995       
                                                       --------------------------------------------------------------
<S>                                                   <C>               <C>              <C>              <C>

OPERATIONS:
Net investment income                                   $   115,423      $ 1,123,451      $  704,057      $ 1,297,719 
Net realized gain (loss)                                 24,183,340       22,379,477       5,982,807        8,674,291 
Net change in unrealized appreciation or depreciation    42,038,100       47,042,428       7,033,727       16,396,856 
                                                       --------------------------------------------------------------

Net increase in net assets resulting from operations     66,336,863       70,545,356      13,720,591       26,368,866 
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income                     (1,132,964)        (719,183)     (1,310,185)        (821,641)
Distributions from net realized gain                    (21,289,430)        (363,458)     (8,706,724)        (973,385)
Distributions in excess of net realized gain                     --               --              --               --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
   beneficial interest transactions - Note 2            117,553,622       70,167,835      23,308,636       29,852,876 
                                                       --------------------------------------------------------------
NET ASSETS:
Total increase (decrease)                               161,468,091      139,630,550      27,012,318       54,426,716 
Beginning of period                                     325,404,091      185,773,541     117,709,890       63,283,174 
                                                       --------------------------------------------------------------
End of period                                          $486,872,182     $325,404,091    $144,722,208     $117,709,890 
                                                       ==============================================================
</TABLE>


<TABLE>
<CAPTION>
                                                                    OPPENHEIMER            
                                                                      MULTIPLE             
                                                                     STRATEGIES            
                                                                        FUND               
                                                            ------------------------------
                                                                 1996             1995       
                                                              ----------------------------
<S>                                                          <C>               <C>
OPERATIONS:               
Net investment income                                         $10,567,752      $16,593,514 
Net realized gain (loss)                                        7,317,446        8,275,324 
Net change in unrealized appreciation or depreciation           6,355,568       39,976,755 
                                                              ----------------------------
Net increase in net assets resulting from operations           24,240,766       64,845,593                             
DIVIDENDS AND DISTRIBUTIONS TO                                                             
SHAREHOLDERS:                                     
Dividends from net investment income                          (11,075,637)     (16,066,432)
Distributions from net realized gain                           (9,273,310)      (8,717,288)
Distributions in excess of net realized gain                           --               --         
BENEFICIAL INTEREST TRANSACTIONS:                                                          
Net increase (decrease) in net assets resulting from 
   beneficial interest transactions - Note 2                   36,771,331       49,134,087 
                                                             -----------------------------
                                                                                         
NET ASSETS:                                             
Total increase (decrease)                                      40,663,150       89,195,960 
Beginning of period                                           381,263,164      292,067,204 
                                                             -----------------------------
End of period                                                $421,926,314     $381,263,164
                                                             =============================
</TABLE>

                                                            
See accompanying Notes to Financial Statements.








                                       81
<PAGE>   99
OPPENHEIMER VARIABLE ACCOUNT FUNDS
Statements of Changes in Net Assets(Continued)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited) AND THE YEAR ENDED 
DECEMBER 31, 1995

<TABLE>
<CAPTION>
                                                              OPPENHEIMER                      OPPENHEIMER                
                                                                 GLOBAL                         STRATEGIC                 
                                                               SECURITIES                          BOND                   
                                                                  FUND                             FUND                   
                                                       --------------------------------------------------------------
                                                            1996             1995             1996             1995   
                                                       --------------------------------------------------------------
<S>                                                    <C>              <C>              <C>              <C>   
OPERATIONS:
Net investment income                                   $ 3,186,202     $  2,845,513      $2,928,490       $3,514,505 
Net realized gain (loss)                                    722,276      (25,767,883)        796,680         (869,176)
Net change in unrealized appreciation or depreciation    28,858,652       31,653,008        (936,200)       2,877,343 
                                                       --------------------------------------------------------------

Net increase in net assets resulting from operations     32,767,130        8,730,638       2,788,970        5,522,672 
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income                             --               --      (2,760,328)      (3,151,540)
Distributions from net realized gain                             --       (8,174,158)             --               -- 
Distributions in excess of net realized gain                     --               --              --               -- 
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
   beneficial interest transactions - Note 2             87,597,213       62,580,432      18,499,910       37,406,166 
                                                       --------------------------------------------------------------
NET ASSETS:
Total increase (decrease)                               120,364,343       63,136,912      18,528,552       39,777,298 
Beginning of period                                     360,978,833      297,841,921      60,097,613       20,320,315 
                                                       --------------------------------------------------------------
End of period                                          $481,343,176     $360,978,833     $78,626,165      $60,097,613 
                                                       ==============================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                   OPPENHEIMER             
                                                                    GROWTH &               
                                                                     INCOME                
                                                                      FUND                 
                                                            ----------------------------   
                                                                  1996           1995(1)   
                                                            ----------------------------   
<S>                                                        <C>                  <C>

OPERATIONS:                                                                                                                       
Net investment income                                        $   56,470         $  4,573   
Net realized gain (loss)                                      1,600,069           27,238   
Net change in unrealized appreciation or depreciation           136,841          505,175   
                                                            ----------------------------   
                                                                                           
Net increase in net assets resulting from operations          1,793,380          536,986   
DIVIDENDS AND DISTRIBUTIONS TO                                                             
SHAREHOLDERS:                                                                              
Dividends from net investment income                            (54,801)          (4,891)  
Distributions from net realized gain                            (31,219)              --   
Distributions in excess of net realized gain                         --              (37)  
BENEFICIAL INTEREST TRANSACTIONS:                                                          
Net increase (decrease) in net assets resulting from                                       
   beneficial interest transactions - Note 2                 15,336,880        3,756,393   
                                                            ----------------------------   
NET ASSETS:                                                                                
Total increase (decrease)                                    17,044,240        4,288,451   
Beginning of period                                           4,288,451               --   
                                                            ----------------------------   
End of period                                               $21,332,691       $4,288,451   
                                                            ============================   
</TABLE>

                                                            

1.  For the period from July 5, 1995 (commencement of operations) to 
    December 31, 1995.









                                       82
<PAGE>   100
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND
Financial Highlights
JUNE 30, 1996

<TABLE>
<CAPTION>
                                           SIX MONTHS
                                           ENDED
                                           JUNE 30, 1996       YEAR ENDED DECEMBER 31,
                                           (UNAUDITED)            1995          1994          1993            1992          1991
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>          <C>               <C>          <C>           <C>          <C>

PER SHARE OPERATING DATA:
Net asset value, beginning of period          $   1.00           $  1.00      $  1.00        $  1.00         $  1.00        $  1.00
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations - net
investment income and net realized gain            .02               .06          .04            .03             .04            .06
Dividends and distributions to shareholders       (.02)             (.06)        (.04)          (.03)           (.04)          (.06)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                $   1.00           $  1.00      $  1.00        $  1.00         $   1.00        $ 1.00
                                              =====================================================================================

- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)               2.52%             5.62%        4.25%          3.09%           3.93%          6.18%
- ----------------------------------------------------------------------------------------------------------------------------------- 
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)      $114,586           $65,386      $89,671       $ 61,221         $58,266        $58,709
- ----------------------------------------------------------------------------------------------------------------------------------- 
Average net assets (in thousands)             $ 76,205           $75,136      $90,264       $ 57,654         $61,317        $75,747
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                             4.99%(2)          5.52%        4.18%          3.12%          3.76%          5.97%
Expenses                                          0.48%(2)          0.51%        0.43%          0.43%          0.50%          0.49%
</TABLE>


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.
2. Annualized.


                                      

See accompanying Notes to Financial Statements.

                                       83
<PAGE>   101
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                    SIX MONTHS
                                                    ENDED
                                                    JUNE 30, 1996      YEAR ENDED DECEMBER 31,
                                                    (UNAUDITED)               1995            1994         1993       
- ---------------------------------------------------------------------------------------------------------------
<S>                                                 <C>               <C>                  <C>            <C>   

PER SHARE OPERATING DATA:
Net asset value, beginning of period                      $10.63             $9.79          $11.02        $9.74 
- ---------------------------------------------------------------------------------------------------------------
                                                                                  
Income (loss) from investment operations:
Net investment income                                        .49               .98             .94          .82 
Net realized and unrealized gain (loss)                      .17               .94          (1.27)         1.65 
- ---------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations               .66              1.92           (.33)         2.47 
- ---------------------------------------------------------------------------------------------------------------
 
Dividends and distributions to shareholders:
Dividends from net investment income                        (.56)            (1.08)           (.66)       (1.19)
Distributions from net realized gain                          --                --            (.24)          -- 
- ---------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                             (.56)            (1.08)           (.90)       (1.19)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period                            $10.73            $10.63           $9.79       $11.02 
                                                    ===========================================================
                                                    

- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                         6.30%            20.37%          (3.18)%      26.34%
- ---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)                $155,707          $133,451         $95,698      $93,011 
- ---------------------------------------------------------------------------------------------------------------
                                                                                   
Average net assets (in thousands)                       $143,730          $115,600        $101,096      $67,000 
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                                       9.06% (2)         9.81%           9.15%       10.50%
Expenses                                                    0.82% (2)         0.81%           0.67%        0.68%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                                  57.0%            107.1%          110.1%       135.7%
</TABLE> 







<TABLE>                                 
<CAPTION>                               
                                                    1992         1991                                                     
- ---------------------------------------------------------------------
<S>                                                <C>         <C>   
                                                                     
PER SHARE OPERATING DATA:                                            
Net asset value, beginning of period               $9.40        $7.90
- ---------------------------------------------------------------------
                                                                     
Income (loss) from investment operations                             
Net investment income                               1.19         1.28
Net realized and unrealized gain (loss)              .43         1.30
- ---------------------------------------------------------------------
Total income (loss) from investment operations      1.62         2.58
- ---------------------------------------------------------------------
                                                                     
Dividends and distributions to sharehold                             
Dividends from net investment income               (1.28)       (1.08)
Distributions from net realized gain                  --           --
- ---------------------------------------------------------------------
Total dividends and distributions                                    
to shareholders                                    (1.28)       (1.08)
- ---------------------------------------------------------------------
Net asset value, end of period                     $9.74        $9.40
                                                 ====================
- ---------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                17.92%       33.91
- ---------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:                                            
Net assets, end of period (in thousands)         $40,817      $27,308
- ---------------------------------------------------------------------
                                                                     
Average net assets (in thousands)                $36,861      $23,663
- ---------------------------------------------------------------------
Ratios to average net assets:                                        
Net investment income                              12.08%       14.26%
Expenses                                            0.73%        0.75%
- ---------------------------------------------------------------------
Portfolio turnover rate(3)                         144.2%       108.0
</TABLE>

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.  Annualized.
3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $81,578,215 and $73,441,819, respectively.


                                      

See accompanying Notes to Financial Statements.

                                       84
<PAGE>   102
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER BOND FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                    SIX MONTHS
                                                    ENDED
                                                    JUNE 30, 1996     YEAR ENDED DECEMBER 31,
                                                    (UNAUDITED)            1995            1994           1993       
- ---------------------------------------------------------------------------------------------------------------    
<S>                                                <C>               <C>                 <C>            <C>

PER SHARE OPERATING DATA:
Net asset value, beginning of period                      $11.84           $10.78         $11.65         $10.99    
- ---------------------------------------------------------------------------------------------------------------
                                                                                  ---
Income (loss) from investment operations:
Net investment income                                        .33              .72            .76            .65    
Net realized and unrealized gain (loss)                     (.37)             1.07          (.98)           .76    
- ---------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations              (.04)             1.79          (.22)          1.41    
- ---------------------------------------------------------------------------------------------------------------
                                                                                 
Dividends and distributions to shareholders:
Dividends from net investment income                        (.37)            (.73)          (.62)          (.75)   
Distributions from net realized gain                        (.01)                           (.03)            --    
                                                              
- ---------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                             (.38)            (.73)          (.65)          (.75)   
- ---------------------------------------------------------------------------------------------------------------    
Net asset value, end of period                            $11.42           $11.84         $10.78         $11.65    
                                                    ===========================================================
                                                    


- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                        (0.33)%          17.00%        (1.94)%        13.04%    
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)                $317,617         $211,232       $135,067      $111,846     
- --------------------------------------------------------------------------------------------------------------

Average net assets (in thousands)                       $236,650         $170,929       $121,884       $87,215     
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                                       6.79% (2)        6.91%          7.30%         7.20%    
Expenses                                                    0.78% (2)        0.80%          0.57%         0.46%    
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                                  40.2%            79.4%          35.1%        36.3%     
</TABLE>

<TABLE>
<CAPTION>
                                                          1992         1991   
                                                       ---------------------- 
<S>                                                   <C>            <C> 

PER SHARE OPERATING DATA:                                                     
Net asset value, beginning of period                    $11.15         $10.33 
- ----------------------------------------------------------------------------- 
                                                                              
Income (loss) from investment operations:                                     
Net investment income                                      .87            .95 
Net realized and unrealized gain (loss)                   (.17)           .80 
- ----------------------------------------------------------------------------- 
Total income (loss) from investment operation               .70          1.75 
- ----------------------------------------------------------------------------- 
                                                                              
Dividends and distributions to shareholders:                                  
Dividends from net investment income                      (.86)          (.93)
Distributions from net realized gain                        --             -- 
                                                                              
- ----------------------------------------------------------------------------- 
Total dividends and distributions                                             
to shareholders                                           (.86)          (.93)
- ----------------------------------------------------------------------------- 
Net asset value, end of period                          $10.99         $11.15 
                                                       ====================== 
                                                                              
                                                                              
                                                                              
- ----------------------------------------------------------------------------- 
TOTAL RETURN, AT NET ASSET VALUE(1)                       6.50%         17.63%
- ----------------------------------------------------------------------------- 
RATIOS/SUPPLEMENTAL DATA:                                                     
Net assets, end of period (in thousands)               $63,354        $32,762 
- -----------------------------------------------------------------------------  
                                                                              
Average net assets (in thousands)                      $45,687        $22,169 
- ----------------------------------------------------------------------------- 
Ratios to average net assets:                                                 
Net investment income                                     7.81%          8.73%
Expenses                                                  0.56%          0.64%
- ----------------------------------------------------------------------------- 
Portfolio turnover rate(3)                                41.3%           7.6%
</TABLE>




                                                       



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.  Annualized.
3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $194,115,687 and $84,471,602, respectively.

See accompanying Notes to Financial Statements.

                                       85
<PAGE>   103
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER CAPITAL APPRECIATION FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                 SIX MONTHS
                                                 ENDED
                                                 JUNE 30, 1996     YEAR ENDED DECEMBER 31,
                                                 (UNAUDITED)         1995         1994          1993         1992        1991
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>              <C>          <C>           <C>           <C>         <C>   
PER SHARE OPERATING DATA:
Net asset value, beginning of period              $  34.21        $  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)               6.26            8.29       (2.22)          6.71         3.43        8.18
- ------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations                                            6.26            8.40       (2.12)          6.76         3.49        8.26
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income                  (.11)           (.09)        (.04)         (.06)        (.14)       (.26)
Distributions from net realized gain                 (2.07)           (.05)       (3.53)        (1.10)        (.55)         --
- ------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                      (2.18)           (.14)       (3.57)        (1.16)        (.69)       (.26)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                    $  38.29        $  34.21     $  25.95      $  31.64      $ 26.04     $ 23.24
                                                  ============================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                  18.92%          32.52%       (7.59)%       27.32%       15.42%      54.72%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)          $486,872        $325,404     $185,774      $136,885      $83,335     $49,371
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands)                 $402,843        $240,730     $153,832      $ 98,228      $56,371     $34,887
Ratios to average net assets:
Net investment income                                 0.06%(2)        0.47%        0.50%         0.23%        0.30%       0.81%
Expenses                                              0.76%(2)        0.78%        0.57%         0.47%        0.54%       0.63%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                            54.6%          125.5%        96.5%        122.8%        78.9%      122.3%
Average brokerage commission rate(4)              $ 0.0677        $ 0.0577          --            --           --           --
</TABLE>

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. Annualized.
3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $232,545,916 and $191,854,268, respectively.
4. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total of related shares
purchased and sold.





See accompanying Notes to Financial Statements.



                                       86
<PAGE>   104
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                 SIX MONTHS
                                                 ENDED
                                                 JUNE 30, 1996     YEAR ENDED DECEMBER 31,
                                                 (UNAUDITED)         1995         1994          1993         1992        1991
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>               <C>           <C>          <C>         <C>           <C>   
PER SHARE OPERATING DATA:
Net asset value, beginning of period               $  23.55        $  17.68      $ 17.70      $ 16.96     $ 15.17       $12.54
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                   .11             .25          .22          .46         .16          .30
Net realized and unrealized gain (loss)                2.49            6.10         (.05)         .74        1.99         2.82
- ------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations                                             2.60            6.35          .17         1.20        2.15         3.12
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income                   (.25)           (.22)        (.15)        (.14)       (.36)        (.49)
Distributions from net realized gain                  (1.67)           (.26)        (.04)        (.32)         --           --
- ------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                       (1.92)           (.48)        (.19)        (.46)       (.36)        (.49)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                     $  24.23        $  23.55      $ 17.68      $ 17.70     $ 16.96      $ 15.17
                                                   ===========================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                   11.37%          36.65%        0.97%        7.25%      14.53%       25.54%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)           $144,722        $117,710      $63,283      $56,701     $36,494      $22,032
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands)                  $131,211        $ 88,803      $59,953      $46,389     $25,750      $18,810
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                                  1.08%(2)        1.46%        1.38%        1.13%       1.36%        2.82%
Expenses                                               0.78%(2)        0.79%        0.58%        0.50%       0.61%        0.70%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                             27.7%           58.2%        53.8%        12.6%       48.7%       133.9%
Average brokerage commission rate(4)               $ 0.0572        $ 0.0590           --           --          --           --
</TABLE>


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. Annualized.
3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $38,780,897 and $30,005,422, respectively.
4. Total brokerage commissions paid on applicable 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.



                                       87
<PAGE>   105
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MULTIPLE STRATEGIES FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                     SIX MONTHS
                                                     ENDED
                                                     JUNE 30, 1996     YEAR ENDED DECEMBER 31,
                                                     (UNAUDITED)        1995          1994         1993        1992        1991
- ---------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>               <C>           <C>          <C>         <C>         <C>   
PER SHARE OPERATING DATA:
Net asset value, beginning of period                    $14.55          $12.91       $13.88       $12.47      $11.96      $10.90
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                      .37             .66          .63          .55         .55         .69
Net realized and unrealized gain (loss)                    .52            2.00         (.90)        1.41         .50        1.15
- ---------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations                                                 .89            2.66         (.27)        1.96        1.05        1.84
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income                     (.40)           (.65)         (.60)        (.55)       (.54)       (.78)
Distributions from net realized gain                     (.35)           (.37)         (.10)          --          --          --
- ---------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                          (.75)          (1.02)         (.70)        (.55)       (.54)       (.78)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                         $14.69          $14.55        $12.91       $13.88      $12.47      $11.96
                                                    =============================================================================

- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1)                      6.18%          21.36%        (1.95%)      15.95%       8.99%      17.48%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)             $421,926        $381,263      $292,067     $250,290    $159,464    $124,634
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands)                    $404,869        $344,745      $279,949     $199,954    $139,011    $117,000
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                                    5.25%(2)        4.81%         4.90%        4.44%       4.63%       5.95%
Expenses                                                 0.77%(2)        0.77%         0.56%        0.48%       0.55%       0.54%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                               15.7%           39.0%        31.4%        32.4%        57.8%       80.3%
Average brokerage commission rate(4)                  $0.0310         $0.0329          --           --           --          --
</TABLE>


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. Annualized. 

3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $76,723,721 and $53,523,995, respectively.

4. Total brokerage commissions paid on applicable 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.



                                       88
<PAGE>   106
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GLOBAL SECURITIES FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>


                                                     SIX MONTHS    
                                                     ENDED
                                                     JUNE 30, 1996    YEAR ENDED DECEMBER 31,
                                                     (UNAUDITED)        1995         1994         1993        1992        1991
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>              <C>          <C>           <C>        <C>         <C>   
PER SHARE OPERATING DATA:
Net asset value, beginning of period                    $15.00         $15.09      $16.30        $9.57      $10.38      $10.04
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss)                               .11            .12         .04         (.02)        .07         .04
Net realized and unrealized gain (loss)                   1.13            .19        (.96)        6.75        (.80)        .30
- ------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations            1.24            .31        (.92)        6.73        (.73)        .34
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income                      --               --        (.04)         --         (.04)         --
Distributions from net realized gain                      --             (.40)       (.25)         --         (.04)         --
- ------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                           --             (.40)       (.29)         --         (.08)         --
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                          $16.24         $15.00      $15.09       $16.30       $9.57      $10.38
                                                 =============================================================================

==============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1)                       8.27%          2.24%      (5.72)%      70.32%      (7.11)%      3.39%
==============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)              $481,343       $360,979    $297,842      $96,425     $13,537      $7,339
- ---------------------------------------------------------------------------  -------------------------------------------------
Average net assets (in thousands)                     $423,899       $332,336    $214,545      $31,696     $11,181      $3,990
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income                                     1.51(2)        0.86%       0.54%        0.72%       1.04%       0.75%
Expenses                                                  0.83(2)        0.89%       0.91%        0.92%       1.06%       1.32%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3)                                48.1%         131.3%       70.4%        65.1%       34.1%       29.5%
Average brokerage commission rate(4)                   $0.0047        $0.0092         --           --          --          --
</TABLE>

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.  Annualized.

3. 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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $289,298,449 and $193,923,292, respectively.

4. Total brokerage commissions paid on applicable 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.


                                       89




<PAGE>   107
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER STRATEGIC BOND FUND      
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                                       SIX MONTHS
                                                                          ENDED
                                                                      JUNE 30, 1996      YEAR ENDED DECEMBER 31,
                                                                       (Unaudited)        1995            1994         1993(1)   
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>             <C>            <C>            <C>

PER SHARE OPERATING DATA:
Net asset value, beginning of period                                     $  4.91         $  4.60        $  5.12        $ 5.00
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                                        .21             .38            .35           .10
Net realized and unrealized gain (loss)                                     (.01)            .30           (.54)          .11
- --------------------------------------------------------------------------------------------------------------------------------  
Total income (loss) from investment operations                               .20             .68           (.19)          .21
- --------------------------------------------------------------------------------------------------------------------------------  
Dividends and distributions to shareholders:
Dividends from net investment income                                        (.19)           (.37)          (.32)         (.09)
Distributions from net realized gain                                          --              --             --            --
Distributions in excess of net realized gain                                  --              --           (.01)           --
- --------------------------------------------------------------------------------------------------------------------------------  
Total dividends and distributions to shareholders                           (.19)           (.37)          (.33)         (.09)
- --------------------------------------------------------------------------------------------------------------------------------  
Net asset value, end of period                                           $  4.92         $  4.91        $  4.60        $ 5.12
                                                                         =======================================================
- --------------------------------------------------------------------------------------------------------------------------------  
Total Return, at Net Asset Value(2)                                         4.14%          15.33%         (3.78)%        4.25%
- --------------------------------------------------------------------------------------------------------------------------------  
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)                                 $78,626         $60,098        $20,320        $9,887
- --------------------------------------------------------------------------------------------------------------------------------  
Average net assets (in thousands)                                        $67,533         $37,698        $15,389        $4,259
- --------------------------------------------------------------------------------------------------------------------------------  
Ratios to average net assets:
Net investment income                                                       8.67%(3)        9.32%          8.36%         5.67%(3)
Expenses                                                                    0.85%(3)        0.85%          0.87%         0.96%(3)
- --------------------------------------------------------------------------------------------------------------------------------  
Portfolio turnover rate(4)                                                  46.1%           87.0%         136.6%         10.9%


</TABLE>


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 of less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended June 30, 1996 were $44,216,010 and $25,961,308,
respectively. 

See accompanying Notes to Financial Statements.

                                       90
<PAGE>   108
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER GROWTH & INCOME FUND
Financial Highlights (Continued)

<TABLE>
<CAPTION>
                                                                         SIX MONTHS
                                                                         ENDED                                     YEAR ENDED
                                                                         JUNE 30, 1996                             DECEMBER 31,
                                                                         (UNAUDITED)                                 1995(1)
==============================================================================================================================
<S>                                                                      <C>                                          <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period                                     $  12.51                                     $  10.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income                                                         .04                                          .01
Net realized and unrealized gain                                             2.31                                         2.52
- ------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations                                      2.35                                         2.53
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income                                         (.04)                                        (.02)
Distributions from net realized gain                                         (.05)                                          --
- ------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders                                                              (.09)                                        (.02)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                                           $  14.77                                     $  12.51
                                                                         =====================================================
==============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2)                                         18.81%                                       25.25%
==============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)                                 $ 21,333                                     $  4,288
==============================================================================================================================
Average net assets (in thousands)                                        $ 10,659                                     $  1,809
==============================================================================================================================
Ratios to average net assets:
Net investment income                                                        1.06%(3)                                     0.50%(3)
Expenses                                                                     1.32%(3)                                     2.07%(3)
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4)                                                   80.1%                                        23.7%
Average brokerage commission rate(5)                                     $ 0.0603                                     $ 0.0598
</TABLE>

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. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1996 were $21,134,121 and $7,698,850, respectively.

5.   Total brokerage commissions paid on applicable 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.


                                       91
<PAGE>   109
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)

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.

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. 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. 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.

                                       92
<PAGE>   110
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

1. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS.

   Delivery and payment for securities that have been purchased by OHIF, OBF and
   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. The Funds maintain, in segregated accounts
   with the custodian, assets with a market value equal to the amount of their
   purchase commitments. The purchase of securities on a when-issued or forward
   commitment basis may increase the volatility of the Funds' net asset values
   to the extent the Funds make such purchases while remaining substantially
   fully invested.

   In connection with their ability to purchase securities on a when-issued or
   forward commitment basis, OHIF, OBF and OSBF may enter into mortgage
   "dollar-rolls" in which the Funds sell securities for delivery in the current
   month and simultaneously contract with the same counterparty to repurchase
   similar (same type, coupon and maturity) but not identical securities on a
   specified future date. The Funds record each dollar-roll as a sale and a new
   purchase transaction. As of June 30, 1996, OHIF and OSBF had entered into
   outstanding when-issued or forward commitments of $3,235,962 and $1,244,208,
   respectively.

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.

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.

   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.

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.


                                       93
<PAGE>   111
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

1. SIGNIFICANT ACCOUNTING POLICIES (continued)
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.

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, 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.

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:


<TABLE>
<CAPTION>
                                    OPPENHEIMER MONEY FUND                       
                -------------------------------------------------------------
                       SIX MONTHS ENDED                   YEAR ENDED             
                        JUNE 30, 1996                 DECEMBER 31, 1995          
                -------------------------------------------------------------
                     SHARES         AMOUNT          SHARES          AMOUNT       
                -------------------------------------------------------------
<S>             <C>             <C>              <C>            <C>            
Sold               191,400,358  $ 191,400,358     202,748,102   $ 202,748,102
Dividends and
distributions
reinvested           1,901,540      1,901,540       4,222,747       4,222,747   
Redeemed          (144,104,487)  (144,104,487)   (231,260,663)   (231,260,663)   
                -------------------------------------------------------------
  Net increase
    (decrease)      49,197,411  $  49,197,411    (24,289,814)   $(24,289,814)   
                =============================================================
</TABLE>


<TABLE>
<CAPTION>
                             OPPENHEIMER HIGH INCOME FUND
                ---------------------------------------------------------
                    SIX MONTHS ENDED                 YEAR ENDED
                      JUNE 30, 1996               DECEMBER 31, 1995
                ---------------------------------------------------------
                    SHARES           AMOUNT         SHARES         AMOUNT
                ---------------------------------------------------------
<S>             <C>           <C>              <C>          <C>        
Sold             4,915,849    $  53,378,895      5,873,231  $  60,932,670
Dividends and
distributions
reinvested         688,571        7,360,821      1,162,957     12,040,152
Redeemed        (3,645,899)     (39,808,756)    (4,263,757)   (44,560,679)
                ---------------------------------------------------------
  Net increase
    (decrease)   1,958,521    $ 20,930,960      2,772,431   $ 28,412,143
                =========================================================
</TABLE>

<TABLE>
<CAPTION>
                                       OPPENHEIMER BOND FUND                          
                    -------------------------------------------------------------
                            SIX MONTHS ENDED                   YEAR ENDED          
                             JUNE 30, 1996                 DECEMBER 31, 1995       
                    -------------------------------------------------------------
                        SHARES            AMOUNT          SHARES           AMOUNT  
                    -------------------------------------------------------------
<S>                 <C>           <C>                 <C>           <C>            
Sold                10,641,027    $ 122,534,894        7,311,733    $  83,544,442  
Dividends and
distributions
reinvested             754,523        8,583,660          976,291       11,209,883  
Redeemed            (1,414,825)     (16,425,746)      (2,972,687)     (33,822,108) 
                    -------------------------------------------------------------
  Net increase       9,980,725    $ 114,692,808        5,315,337    $  60,932,217  
                    =============================================================
</TABLE>

<TABLE>
<CAPTION>
                                 OPPENHEIMER CAPITAL APPRECIATION FUND
                      --------------------------------------------------------------
                             SIX MONTHS ENDED                      YEAR ENDED
                              JUNE 30, 1996                    DECEMBER 31, 1995
                      --------------------------------------------------------------
                          SHARES           AMOUNT           SHARES            AMOUNT
                      --------------------------------------------------------------
<S>                   <C>           <C>                 <C>           <C>          
Sold                   5,914,854    $ 217,106,599        8,882,212    $ 260,650,476
Dividends and
distributions
reinvested               643,582       22,422,394           40,594        1,082,642
Redeemed              (3,357,155)    (121,975,371)      (6,567,729)    (191,565,283)
                      -------------------------------------------------------------
  Net increase         3,201,281    $ 117,553,622        2,355,077    $  70,167,835
                      =============================================================
</TABLE>



                                       94
<PAGE>   112
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

2.  SHARES OF BENEFICIAL INTEREST (continued)

<TABLE>
<CAPTION>
                                   OPPENHEIMER GROWTH FUND                           OPPENHEIMER MULTIPLE STRATEGIES FUND
                   --------------------------------------------------------------------------------------------------------------
                          SIX MONTHS ENDED               YEAR ENDED              SIX MONTHS ENDED                YEAR ENDED
                           JUNE 30, 1996             DECEMBER 31, 1995            JUNE 30, 1996               DECEMBER 31, 1995
                   --------------------------------------------------------------------------------------------------------------
                       SHARES          AMOUNT      SHARES          AMOUNT      SHARES          AMOUNT      SHARES          AMOUNT
                   --------------------------------------------------------------------------------------------------------------
<S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>         
Sold                2,328,692    $ 56,424,038   4,302,304    $ 89,007,340   2,802,404    $ 41,511,453   6,445,242    $ 88,771,497
Dividends and
distributions
reinvested            430,280      10,016,909      95,991       1,795,026   1,394,718      20,348,946   1,818,313      24,783,721
Redeemed           (1,783,960)    (43,132,311) (2,980,080)    (60,949,490) (1,695,281)    (25,089,068) (4,671,097)    (64,421,131)
                   --------------------------------------------------------------------------------------------------------------
  Net increase        975,012    $ 23,308,636   1,418,215    $ 29,852,876   2,501,841    $ 36,771,331   3,592,458    $ 49,134,087
                   ==============================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                           OPPENHEIMER GLOBAL SECURITIES FUND                          OPPENHEIMER STRATEGIC BOND FUND
               ------------------------------------------------------------------------------------------------------------------
                       SIX MONTHS ENDED                YEAR ENDED                SIX MONTHS ENDED               YEAR ENDED
                        JUNE 30, 1996               DECEMBER 31, 1995             JUNE 30, 1996              DECEMBER 31, 1995
               ------------------------------------------------------------------------------------------------------------------
                    SHARES          AMOUNT      SHARES            AMOUNT     SHARES            AMOUNT     SHARES           AMOUNT
               ------------------------------------------------------------------------------------------------------------------
<S>            <C>           <C>            <C>           <C>             <C>          <C>             <C>          <C>          
Sold            6,846,766    $ 107,662,261  11,235,722    $ 166,766,446   5,018,279    $  24,850,711   9,417,090    $  44,897,472
Dividends and
distributions
reinvested           --               --       585,961        8,174,158     565,134        2,760,329     661,301        3,151,540
Redeemed       (1,283,788)     (20,065,048) (7,497,205)    (112,360,172) (1,844,209)      (9,111,130) (2,245,623)     (10,642,846)
               ------------------------------------------------------------------------------------------------------------------
  Net increase  5,562,978    $  87,597,213   4,324,478    $  62,580,432   3,739,204    $  18,499,910   7,832,768    $  37,406,166
               ==================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                 OPPENHEIMER GROWTH & INCOME FUND
                      ---------------------------------------------------------
                          SIX MONTHS ENDED                    YEAR ENDED
                            JUNE 30, 1996                 DECEMBER 31, 1995(1)
                      ---------------------------------------------------------
                         SHARES         AMOUNT          SHARES          AMOUNT
                      ---------------------------------------------------------
<S>                   <C>          <C>                  <C>          <C>       
Sold                  1,194,344    $ 16,678,916         358,253      $3,933,459
Dividends and
distributions
reinvested                6,082          86,020             404           4,928
Redeemed                (98,746)     (1,428,056)        (15,863)       (181,994)
                      ---------------------------------------------------------
  Net increase        1,101,680    $ 15,336,880         342,794      $3,756,393
                      =========================================================
</TABLE>

(1)   For the period from July 5, 1995 (commencement of operations) to December
      31, 1995.



                                       95
<PAGE>   113
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

3.  UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At June 30, 1996, net unrealized appreciation or depreciation on investments and
options written consisted of the following:

<TABLE>
<CAPTION>
                                                                        OPPENHEIMER
                              OPPENHEIMER          OPPENHEIMER            CAPITAL            OPPENHEIMER
                              HIGH INCOME              BOND            APPRECIATION            GROWTH
                                  FUND                 FUND                FUND                 FUND
                          ----------------------------------------------------------------------------------
<S>                       <C>                      <C>                 <C>                   <C>         
Gross appreciation                 $ 8,794,461         $ 4,733,340        $ 117,871,439         $ 32,672,573
Gross depreciation                 (2,106,142)         (3,709,869)         (12,857,992)          (2,020,923)
                          ----------------------------------------------------------------------------------
Net unrealized
appreciation                       $ 6,688,319         $ 1,023,471        $ 105,013,447         $ 30,651,650
                          ==================================================================================
</TABLE>



<TABLE>
<CAPTION>
                              OPPENHEIMER                              OPPENHEIMER
                                MULTIPLE           OPPENHEIMER          STRATEGIC            OPPENHEIMER
                               STRATEGIES       GLOBAL SECURITIES          BOND            GROWTH & INCOME
                                  FUND                FUND                 FUND                 FUND
                          ----------------------------------------------------------------------------------
<S>                       <C>                   <C>                    <C>                 <C>        
Gross appreciation                $ 56,500,149        $ 61,150,793          $ 1,988,083          $ 1,171,212
Gross depreciation                 (7,989,109)        (10,549,493)          (1,076,472)            (529,196)
                          ----------------------------------------------------------------------------------
Net unrealized
appreciation                      $ 48,511,040        $ 50,601,300         $    911,611         $    642,016
                          ==================================================================================
</TABLE>

4.  OPTION ACTIVITY

The Funds (except OMF) may buy and sell put and call options, or write put and
covered 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 Statements of Investments. Options written are reported as a
liability in the Statements of Assets and Liabilities. Gains and losses are
reported in the Statements 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.


                                       96
<PAGE>   114
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

4.  OPTION ACTIVITY (continued)
OHIF option activity for the six months ended June 30, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                   CALL OPTIONS
                                                     ----------------------------------------
                                                         NUMBER OF            AMOUNT OF
                                                          OPTIONS             PREMIUMS
                                                     ----------------------------------------
<S>                                                  <C>                      <C>
Options outstanding at December 31, 1995                            100              $  1,430
Options written                                               2,995,422                60,892
Options canceled in closing transactions                       (990,415)              (27,918)
Options expired prior to exercise                              (711,177)              (13,160)
Options exercised                                              (495,479)               (4,069)
                                                     ----------------------------------------
  Options outstanding at June 30, 1996                          798,451              $ 17,175
                                                     ========================================
</TABLE>

OBF option activity for the six months ended June 30, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                   CALL OPTIONS
                                                     -----------------------------------------
                                                         NUMBER OF            AMOUNT OF
                                                          OPTIONS             PREMIUMS
                                                     -----------------------------------------
<S>                                                  <C>                      <C>
Options outstanding at December 31, 1995                             --              $     --
Options written                                                6,637,802               115,114
Options canceled in closing transactions                      (1,980,331)              (47,726)
Options expired prior to exercise                             (1,460,029)              (26,575)
Options exercised                                             (1,195,442)               (9,818)
                                                     -----------------------------------------
  Options outstanding at June 30, 1996                         2,002,000              $ 30,995
                                                     =========================================
</TABLE>


OMSF option activity for the six months ended June 30, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                   CALL OPTIONS
                                                     ----------------------------------------
                                                         NUMBER OF            AMOUNT OF
                                                          OPTIONS             PREMIUMS
                                                     ----------------------------------------
<S>                                                  <C>                      <C>
Options outstanding at December 31, 1995                          3,603            $1,100,095
Options written                                                   3,584               937,173
Options canceled in closing transactions                         (1,003)             (338,500)
Options expired prior to exercise                                (2,521)             (692,359)
Options exercised                                                  (678)             (196,972)
                                                     ----------------------------------------
  Options outstanding at June 30, 1996                            2,985            $  809,437
                                                     ========================================
</TABLE>


OSBF option activity for the six months ended June 30, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                   CALL OPTIONS
                                                     ---------------------------------------
                                                          NUMBER OF           AMOUNT OF
                                                           OPTIONS            PREMIUMS
                                                     ---------------------------------------
<S>                                                  <C>                      <C>
Options outstanding at December 31, 1995                           1,000            $ 14,299
Options written                                                4,625,262              66,992
Options canceled in closing transactions                          (1,150)            (16,925)
Options expired prior to exercise                             (1,616,402)            (21,688)
Options exercised                                             (1,178,560)             (8,226)
                                                     ---------------------------------------
  Options outstanding at June 30, 1996                         1,830,150            $ 34,452
                                                     =======================================
</TABLE>

                                       97
<PAGE>   115
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

4.  OPTION ACTIVITY (continued)
OGIF option activity for the six months ended June 30, 1996 was as follows:

<TABLE>
<CAPTION>
                                                                  CALL OPTIONS
                                                     ---------------------------------------
                                                          NUMBER OF           AMOUNT OF
                                                           OPTIONS            PREMIUMS
                                                     ---------------------------------------
<S>                                                  <C>                      <C>
Options outstanding at December 31, 1995                               --            $    --
Options written                                                       19               6,301
Options expired prior to exercise                                    (12)             (1,764)
                                                     ---------------------------------------
  Options outstanding at June 30, 1996                                 7             $ 4,537
                                                     =======================================
</TABLE>

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.

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 June 30, 1996, outstanding forward contracts to purchase and sell foreign
currencies were as follows:

<TABLE>
<CAPTION>
OPPENHEIMER HIGH INCOME FUND
- ----------------------------
                                                CONTRACT AMOUNT          VALUATION AS OF      UNREALIZED          UNREALIZED
CONTRACTS TO PURCHASE       EXPIRATION DATE     (000'S)                  JUNE 30, 1996        APPRECIATION       DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                 <C>        <C>            <C>
Italian Lira (ITL)                   5/9/97     628,510    ITL            $   402,139         $   7,865            $      --
German Deutsche Mark (DEM)           7/1/96         181    DEM                118,685               321                   --
                                                                          -----------         ---------            ---------
                                                                          $   520,824             8,186                   --
                                                                          ===========         ---------            ---------

CONTRACTS TO SELL
- -----------------
Swiss Franc (CHF)           7/18/96-6/26/97       3,145    CHF            $ 2,550,344         $  18,427            $   8,511
Japanese Yen (JPY)          8/26/96-4/14/97      94,375    JPY                886,549            59,783                   --
                                                                          -----------         ---------            ---------
                                                                          $ 3,436,893            78,210                8,511
                                                                          ===========         ---------            ---------
Total Unrealized 
Appreciation and 
Depreciation                                                                                  $  86,396            $   8,511
                                                                                              =========            =========
</TABLE>


<TABLE>
<CAPTION>
OPPENHEIMER BOND FUND
- ---------------------
                                                CONTRACT AMOUNT          VALUATION AS OF      UNREALIZED             UNREALIZED
CONTRACTS TO PURCHASE       EXPIRATION DATE     (000'S)                  JUNE 30, 1996        APPRECIATION         DEPRECIATION
- -------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                 <C>        <C>           <C>                   <C>                  <C>
Italian Lira (ITL)                  5/9/97      671,747    ITL           $     429,803         $  7,629             $        --

CONTRACTS TO SELL
Japanese Yen (JPY)                 8/26/96       43,000    JPY           $     396,015         $  4,749             $        --
Swiss Franc (CHF)           7/18/96-5/6/97       12,703    CHF              10,233,684           32,135                  15,592
                                                                         -------------         --------             -----------
                                                                         $  10,629,699           36,884                  15,592
                                                                         =============         --------             -----------
Total Unrealized 
Appreciation and 
Depreciation                                                                                   $ 44,513             $    15,592
                                                                                               ========             ===========
</TABLE>


                                       98
<PAGE>   116
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

5.  FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS (continued)

<TABLE>
<CAPTION>
OPPENHEIMER GLOBAL SECURITIES FUND
- ----------------------------------
                                                CONTRACT AMOUNT          VALUATION AS OF      UNREALIZED      UNREALIZED
CONTRACTS TO PURCHASE       EXPIRATION DATE     (000'S)                  JUNE 30, 1996        APPRECIATION    DEPRECIATION
- --------------------------------------------------------------------------------------------------------------------------
<S>                         <C>                 <C>                      <C>                 <C>               <C>
Austrian Schilling (ATS)           7/8/96        10,939    ATS           $  1,021,486        $      587        $       --
Indonesian Rupiah (IDR)           7/19/96       577,500    IDR                247,097                --                14
Italian Lira (ITL)                 7/4/96       641,785    ITL                418,477                --               410
Japanese Yen (JPY)          7/1/96-7/3/96       120,146    JPY              1,095,678                --             3,702
Norwegian Krone (NOK)       7/1/96-7/2/96         2,268    NOK                349,071                --               399
South African Rand (ZAR)           7/1/96        15,406    ZAR              3,557,698             3,159                --
Swedish Krona (SEK)                7/1/96         3,726    SEK                561,597                --             1,058
                                                                         ------------        ----------        ----------
                                                                         $ 7,251,104              3,746             5,583
                                                                         ============        ----------        ----------

CONTRACTS TO SELL

Argentine Peso (ARP)        7/1/96-7/2/96           267    ARP           $   267,003         $       --        $      511
French Franc (FRF)                7/31/96        10,133    FRF             1,972,699                 --            15,563
German Deutsche Mark (DEM)         1/8/97        28,680    DEM            19,070,993            929,007                --
Japanese Yen (JPY)                9/30/96     1,475,100    JPY            13,646,090             12,244                --
Swiss Franc (CHF)                 10/8/96        17,204    CHF            13,852,778          1,147,222                --
                                                                         -----------         ----------        ----------
                                                                         $48,809,563          2,088,473            16,074
                                                                         ===========         ----------        ----------
Total Unrealized 
Appreciation and 
Depreciation                                                                                 $2,092,219        $   21,657
                                                                                             ==========        ==========
</TABLE>

<TABLE>
<CAPTION>
OPPENHEIMER STRATEGIC BOND FUND
- -------------------------------
                                                CONTRACT AMOUNT          VALUATION AS OF      UNREALIZED      UNREALIZED
CONTRACTS TO PURCHASE       EXPIRATION DATE     (000'S)                  JUNE 30, 1996        APPRECIATION    DEPRECIATION
- --------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                   <C>       <C>           <C>                  <C>             <C>
Japanese Yen (JPY)                  7/5/96       12,467    JPY           $   113,774          $        --     $      1,713
                                                                         ============         -----------     ------------
CONTRACTS TO SELL

Australian Dollar (AUD)             7/3/96           22    AUD           $     17,022         $        --     $        36
Finnish Markka (FIM)                8/4/96        4,679    FIM              1,012,159                  --          12,146
Japanese Yen (JPY)         9/5/96-12/18/96       45,175    JPY                421,276              34,104              --
Swiss Franc (CHF)           7/8/96-8/28/96        3,316    CHF              2,656,791                  --          22,191
                                                                         ------------         -----------     -----------
                                                                         $ 4,107,248               34,104          34,373
                                                                         ============         -----------     -----------
Total Unrealized 
Appreciation and 
Depreciation                                                                                  $    34,104     $   36,086
                                                                                              ===========     ==========
</TABLE>

6.  FUTURES CONTRACTS

The Funds (except OMF) may buy and sell interest rate futures contracts in order
to gain exposure to or protect against changes in interest rates. The Funds may
also buy or write put or call options on these futures contracts.

The Funds generally sell futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Funds may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.

Upon entering into a futures contract, the Funds are required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Funds each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Funds recognize a realized gain or loss when the contract is closed
or expires.

Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statements of Investments. The
Statements of Assets and Liabilities reflect a receivable or payable for the
daily mark to market for variation margin.

Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.

                                       99
<PAGE>   117
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

6.  FUTURES CONTRACTS (continued)
At June 30, 1996, OSBF had outstanding futures contracts to sell debt securities
as follows:

<TABLE>
<CAPTION>
                                                Number of        Valuation as of     Unrealized
                         Expiration Date    Futures Contracts     June 30, 1996     Depreciation
- ------------------------------------------------------------------------------------------------
<S>                      <C>                <C>                   <C>               <C>   
U.S. Treasury Nts.            9/96                 6                $634,500           $6,750
</TABLE>


7.  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 0.75% of the first $200 million of net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million and 0.60% of net assets in excess of $800 million. In
addition, management fees for OHIF, OBF and OSBF are 0.50% of net assets in
excess of $1 billion. Management fees for OMF are 0.45% of the first $500
million, 0.425% of the next $500 million, 0.40% of the next $500 million and
0.375% 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.

8.  ILLIQUID AND RESTRICTED SECURITIES

At June 30, 1996, 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. A security may also be considered
illiquid if its valuation has not changed for a certain period of time. The
Funds intend to invest no more than 10% of net assets (determined at the time of
purchase and reviewed from time to time) in illiquid or restricted securities.
Information concerning these securities is as follows:

OPPENHEIMER HIGH INCOME FUND

<TABLE>
<CAPTION>
                                                                                             VALUATION PER
                                                           ACQUISITION        COST              UNIT AS OF
SECURITY                                                       DATE          PER UNIT         JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------
<S>                                                    <C>                   <C>              <C>       
Algeria (Republic of) Reprofiled Debt Loan
Participation, Tranche A, 6.812%, 9/4/06                       3/13/96        $   54.75           $   59.69

Ames Department Stores, Inc.:
  Excess Cash Flow Payment Certificates, Series               12/30/92        $    0.00           $    0.01
    AG-7A
  Litigation Trust                                            12/30/92        $    0.00           $    0.01

Australis Media Ltd. Common Stock                      1/16/96-1/25/96        $    1.19           $    0.34
                                                               
Berg Electronics Corp. Common Stock                    4/28/93-8/11/93        $    4.89           $   22.56
                                                               
CBA Mortgage Corp., Mtg. Pass-Through
  Certificates, Series 1993-C1, Cl. F, 7.153%,                 8/23/95        $   72.52           $   74.81
  12/25/03

Colombia (Republic of) 1989-1990 Integrated Loan
Facility Bonds, 6.563%, 7/1/01                                12/05/95        $   92.00           $   93.25

ECM Fund, L.P.I.:
  Common Stock                                                 4/14/92        $1,000.00           $1,000.00

  14% Sub. Nts., 6/10/02                                       4/14/92        $  100.00           $  110.00

Equitable Bag, Inc. Common Stock                              12/16/94        $    1.50           $    2.50

Farley, Inc., Zero Coupon Sub. Debs., 14.143%,           1/1/93-3/6/95        $    7.44           $   10.60
  12/30/12

Foamex LP/JPS Automotive Corp. Wts., Exp. 7/99                 6/21/94        $    0.00           $    5.00

Gillett Holdings, Inc.:
  Common Stock                                         12/1/92-1/18/96        $   16.27           $   30.00
                                                                              
  12.25% Sr. Sub. Nts., Series A, 6/30/02                     12/23/92        $  101.87           $  105.37

Goldman, Sachs & Co., Argentina Local Market
  Securities Trust, 11.30%, 4/1/00                             8/24/94        $  100.00           $   92.75

Omnipoint Corp. Common Stock                                   1/26/96        $   16.00           $   24.70

Pulsar Internacional SA de CV, 11.80% Nts.,                    9/14/95        $  100.00           $  100.50
  9/19/96
</TABLE>


                                       100
<PAGE>   118
OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

8.  ILLIQUID AND RESTRICTED SECURITIES (continued)
OPPENHEIMER HIGH INCOME FUND (continued)

<TABLE>
<CAPTION>
                                                                                   VALUATION PER
                                                     ACQUISITION           COST      UNIT AS OF
SECURITY                                                DATE             PER UNIT  JUNE 30, 1996
- ------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>       <C>   
Triangle Wire & Cable, Inc. Common Stock                       5/2/94     $9.50       $ 1.00

Trinidad & Tobago Loan Participation Agreement,
Tranche B, 1.772%, 9/30/00                           12/13/95- 4/1/96     $0.82       $0 .78
</TABLE>


The aggregate value of illiquid or restricted securities subject to this 10%
limitation at June 30, 1996 was $6,685,781, or 4.29% 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 BOND FUND

<TABLE>
<CAPTION>
                                                                                   VALUATION PER
                                                     ACQUISITION           COST      UNIT AS OF
SECURITY                                                DATE             PER UNIT  JUNE 30, 1996
- ------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>       <C>   
Colombia (Republic of) 1989-1990 Integrated Loan
Facility Bonds, 6.563%, 7/1/01                                12/5/95     $ 92.00     $ 93.25

Merrill Lynch & Co., Inc.
Units, 9.75%, 6/15/99                                         5/15/95     $110.05     $113.82
</TABLE>


The aggregate value of illiquid or restricted securities subject to this 10%
limitation at June 30, 1996 was $2,603,717, or 0.82% 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

<TABLE>
<CAPTION>
                                                                                   VALUATION PER
                                                     ACQUISITION           COST      UNIT AS OF
SECURITY                                                DATE             PER UNIT  JUNE 30, 1996
- ------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>       <C>   
Santa Anita Realty Enterprises, Inc., Units          5/28/93- 2/9/95     $16.99       $12.63
</TABLE>


The aggregate value of illiquid or restricted securities subject to this 10%
limitation at June 30, 1996 was $505,000, 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
<TABLE>
<CAPTION>
                                                                                   VALUATION PER
                                                     ACQUISITION           COST      UNIT AS OF
SECURITY                                                DATE             PER UNIT  JUNE 30, 1996
- ------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>       <C>   
Plant Genetics Systems Common Stock                  5/27/92-3/7/95      $13.77       $11.18
                                                                                
Plant Genetics Systems Wts., Exp. 12/99                      3/7/95      $ 0.00       $ 1.87
</TABLE>


The aggregate value of illiquid or restricted securities subject to this 10%
limitation at June 30, 1996, was $1,108,624, or 0.23% 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.





                                       101
<PAGE>   119

OPPENHEIMER VARIABLE ACCOUNT FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

8.  ILLIQUID AND RESTRICTED SECURITIES (continued)
OPPENHEIMER STRATEGIC BOND FUND

<TABLE>
<CAPTION>
                                                                                                         VALUATION PER
                                                           ACQUISITION                 COST                UNIT AS OF
SECURITY                                                      DATE                  PER UNIT              JUNE 30, 1996
- -----------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>                      <C>                  <C>   
Algeria (Republic of) Reprofiled Debt Loan
Participation, Tranche A, 6.812%, 9/4/06                    3/13/96-3/21/96          $ 55.04                 $ 59.69
                                                                
Colombia (Republic of) 1989-1990 Integrated Loan
Facility Bonds, 6.563%, 7/1/01                                      12/5/95          $ 92.00                 $ 93.25

Gillett Holdings, Inc. Common Stock                                 1/18/96          $ 21.25                 $ 30.00

Goldman, Sachs & Co., Argentina Local Market
Securities Trust, 11.30%, 4/1/00                                    8/24/94          $100.00                 $ 92.75

Jamaica (Government of) 1990 Refinancing Agreement  
Nts.:                                                               8/15/95          $ 89.75                 $ 95.75
  Tranche A, 6.344%, 10/16/00
  Tranche B, 6.312%, 11/15/04                                        5/8/96          $ 75.88                 $ 78.25

Pulsar Internacional SA de CV, 11.80% Nts.,                         9/15/95          $100.00                 $100.50
9/19/96

Transpower Finance Ltd., 8% Gtd. Unsec. Unsub.
Bonds, 2/15/01                                                      5/17/96          $ 66.17                 $ 64.76

Trinidad & Tobago Loan Participation Agreement,           12/13/95-12/18/95          $  0.84                 $  0.78   
Tranche A, 1.772%, 9/30/00                                                           

United Mexican States, Combined Facility 3, Loan
Participation Agreement, Tranche A, 6.563%,                        10/25/94          $ 89.00                 $ 83.50
9/20/97
</TABLE>

The aggregate value of illiquid or restricted securities subject to this 10%
limitation at June 30, 1996, was $2,512,959, or 3.20% 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.




                                       102
<PAGE>   120
OPPENHEIMER VARIABLE ACCOUNT FUNDS

OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, President and Trustee
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Paul LaRocco, Vice President
Robert J. Milnamow, Vice President
David P. Negri, Vice President
Jane Putnam, Vice President
Richard H. Rubinstein, Vice President
Arthur P. Steinmetz, Vice President
Dorothy G. Warmack, Vice President
William Wilby, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. 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.

The financial statements included herein have been taken from the records of the
Funds without examination by the independent auditors.

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.



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