-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, LaI7b7n89KhJXTvXALERRcl9eIUafaD7n2VVzVa214DRE9W09KlGjibEcgASX84b Avm+BNvVBt+vguIqyjX/sA== 0000950146-94-000053.txt : 19940311 0000950146-94-000053.hdr.sgml : 19940311 ACCESSION NUMBER: 0000950146-94-000053 CONFORMED SUBMISSION TYPE: ARS PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 840860234 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: ARS SEC ACT: 34 SEC FILE NUMBER: 811-04108 FILM NUMBER: 94515471 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 ARS 1 OPPENHEIMER VARIABLE ACCOUNT FUNDS Oppenheimer Variable Account Funds 3410 South Galena Street Denver, Colorado 80231 Dear MultiVest Plan Contract Owner: We are pleased to provide for Confederation Life Insurance & Annuity Company this annual report of Oppenheimer Variable Account Funds. On the following pages, you'll find our current outlook and portfolio strategy for each of the Funds. We'd like to thank you for the trust you've placed in the OppenheimerFunds team as manager of your Oppenheimer Variable Account Funds investment under the MultiVest plan. We look forward to continuing to help you reach your investment goals in the years to come. Sincerely, James C. Swain Chairman--Oppenheimer Variable Account Funds Jon S. Fossel President--Oppenheimer Variable Account Funds January 21, 1994 Oppenheimer Capital Appreciation Fund During the past year, low interest rates in the U.S. supported a strong market for small companies. A low interest rate environment encourages the expansion of smaller companies because of the low cost of capital. Given the positive overall market environment, our strategy is to seek well- managed companies offering innovative products and services--a combination that supports our expectation of stock price appreciation. In selecting individual stocks, Fund managers search for excellent opportunities in different sectors. The current balance of sector investments diversifies the portfolio and helps reduce the Fund's overall volatility. Recent portfolio changes include a consolidation of healthcare holdings. After taking profits in several drug and medical company stocks, the Fund now holds a core position in companies that we believe offer cost-effective solutions to healthcare problems and can succeed under anticipated versions of healthcare reform legislation. In the financial area, the Fund's managers made two new purchases: Mid Ocean, a property and casualty reinsurer with experienced management, and Servicios, a Mexican financing firm with an expanding business base. Technology continues to be a major area of Fund investment. In networking, the growing business for the linking of computers, we purchased Cabletron Systems and Cheyenne Software, two firms with solid growth potential. The managers also found exciting opportunities in the telecommunications area. The Fund remains strongly invested in the specialty retailing industry, in which small companies can expand very rapidly with innovative, customer-oriented concepts. Recently, the managers increased the Fund's position in General Nutrition, a retail chain offering vitamins and health food. We also bought PetsMart, a growing pet accessories superstore operation, and O'Reilly Automotive, a well-managed auto parts chain in the Midwest. Going forward, your Fund's managers are optimistic that an improving economy will support the prospects for stocks of small companies, and they will continue to search for new opportunities that represent significant potential for growth. Oppenheimer Growth Fund With both the U.S. and global economies showing strong signs of improvement and with inflation and interest rates holding at very low levels, we weren't distracted by energy or utility stocks that might have given a short-lived boost to performance during the year. Instead, we stuck to our basic discipline, focusing on stocks with above-average long-term prospects. During the period, we profitably sold several consumer and technology stocks whose prices appeared to have peaked, reducing positions in Reebok, Dell Computer and Philip Morris. We used the proceeds of these sales, in turn, to invest in companies whose earnings momentum isn't, in our view, fully reflected in their stock prices. For example, the broad sell-off in financial services stocks, driven by what we feel are unfounded fears over rising interest rates, created opportunities to add to positions in financial companies positioned to benefit from what remains a very low interest-rate environment, such as First Interstate Bancorp, Countrywide Credit Industries and Green Tree Financial. Likewise, the broad decline in healthcare stocks stemming from uncertainties over the Clinton Administration's reform proposals allowed your managers to buy shares of companies positioned to prosper under any reform scenario. Our largest holdings in this sector include U.S. Healthcare, Cordis Corporation and United Healthcare. Finally, with the improving global economy, we continued to look for values in overseas markets, where declining interest rates and improving economies set the stage for future gains. At December 31, our largest foreign stock holdings were in French and British companies. As we enter 1994, the improving U.S. and global economies, low interest and inflation rates, and solid gains in corporate earnings, driven by rising sales rather than cost-cutting, all suggest that the kinds of high-potential companies in which the Fund invests should do well in the months ahead. Oppenheimer Global Securities Fund The international stock markets staged a powerful comeback in 1993 and Oppenheimer Global Securities Fund participated in the gains. In fact, the Fund was ranked #1 of all variable annuity funds tracked by Lipper Analytical Services, Inc. for 1993.* We expect the factors behind the global-market gains--a changing tax and regulatory environment in the U.S. and low interest rates and improving economies abroad--to continue into 1994 and beyond. We believe the key to performance going forward is careful, stock-by-stock evaluation of investment opportunities. Portfolio changes during the year were aimed at taking advantage of the most attractive opportunities worldwide. For example, we shifted a significant portion of the Fund's assets into Asia and Latin America, where both business and consumer markets are developing at a rapid and, in our view, sustainable pace. Investments in these emerging markets now account for approximately 40% of the Fund's investments. A second shift involved the Fund's sector distribution. Fund managers shifted assets into what they believe to be promising areas, such as: o Capital market development--Events such as the fall of the Iron Curtain and the awakening of China and Latin America create a need for capital to support free enterprise development across formerly closed borders. We believe this need should fuel the growth of banks and financial services in emerging markets, as well as financial institutions in developed countries. o Emerging consumer markets--Populations of emerging economies in areas such as the Far East and Latin America are experiencing substantial growth of income. As their standard of living rises, these people will create more demand for consumer products. The Fund is investing in companies like Philips, CIADEA and Sears de Mexico, which should benefit from these powerful trends. *Source: Lipper Analytical Services, Inc., an independent mutual fund monitoring service. The Fund ranked 1 out of 530 variable annuity/underlying funds for the 1-year period ended 12/31/93. Ranking is based on changes in net asset value with dividends and capital gains reinvested, but without considering charges or fees associated with MultiVest Plan. o Telecommunications--We've taken major positions in Europe's undervalued--and fast-growing--telephone companies, SIP and Telefonica de Espana. o Energy logistics--Efficient energy production and transportation operations are expected to benefit as petrochemicals continue to be integral to world productivity. Reflecting this, we've invested in YPF Sociedad, Argentina's largest integrated oil company. Going forward, we believe the Fund is positioned to take full advantage of the anticipated pickup in global markets. Oppenheimer Multiple Strategies Fund As in the past, the key to Oppenheimer Multiple Strategies Fund's performance was the ability to allocate assets among stocks, government securities and corporate bonds, both domestically and internationally. This investment diversification was particularly important in 1993's fourth quarter, as a strengthening economy gave rise to short-lived concerns about possible increases in inflation and interest rates. While those concerns have since subsided with the realization that inflation remains well under control, they did lead to a modest increase in interest rate levels in November. The Fund's fixed income portfolio, which accounted for approximately 41% of the Fund's total portfolio as of December 31, 1993, generated attractive returns throughout the period, despite those slightly higher rates, as a result of our holdings of both high-yield corporate issues and foreign bonds, notably from Canadian, Australian and Latin American issuers. These two sectors benefitted from the improving global economy, and both are less sensitive to changes in U.S. interest rates than other types of bonds. On the equity side, we realigned the Fund's healthcare holdings significantly, focusing on issues that should contribute to the Fund's performance, such as companies with innovative delivery systems (notably HMOs), important new products or attractive dividend yields. We also increased our holdings of technology stocks, where innovative companies are leading the way to major gains in business productivity. In addition to traditional technology investments, we also found attractive opportunities in interactive technologies, adding to our position in AT&T and initiating a position in NEXTEL, companies in the process of creating powerful interactive communications groups. Finally, we continued to build the Fund's international position, both to control risk through diversification and to capitalize on the prospects for strong economic growth offshore. While most of our holdings are in Europe, where economies are poised for recovery, we recently took advantage of opportunities in the Pacific Rim. Oppenheimer High Income Fund High yield, lower-rated bonds continued to be the best performing sector of the fixed-income market, with gains in bond prices more than offsetting modest declines in yields as interest rates moved generally lower during the period. The strengthening of the U.S. economy and continued low inflation and interest rate levels played a significant role in that performance. The managers continued to focus on value investing--the selection of individual bonds whose yields and prices seem especially attractive when compared with other bonds in the market. During the period, many high yield bond issuers continued to take advantage of the opportunity to call outstanding bonds and replace them with lower-yielding issues. The Fund's managers used the bond-call proceeds to take advantage of many emerging investment opportunities in an effort to further diversify the Fund's portfolio, which can help to reduce risk. The Fund continued to focus on bonds issued by companies positioned to perform well as the economy improves. For example, we profitably sold several broadcast communications and media issues whose prices appeared to have peaked. We used the proceeds to buy bonds of cyclical companies in the automotive, paper and metals industries which should benefit from stronger U.S. economic growth. These companies will also benefit once the recovery takes hold in Europe and Japan. Looking ahead, while we aren't expecting interest rates to rise significantly in the months ahead, declines appear to be behind us, and the Fund should continue to provide an attractive high current yield. At the same time, the economy is strengthening and corporations continue to enhance their balance sheets, making high yield issues extremely attractive. Oppenheimer Strategic Bond Fund The Fund seeks high current income from a portfolio of U.S. government securities, higher-yielding, lower-rated corporate bonds and foreign fixed income securities. The strategic investing approach has enabled the Fund's managers to seek high yields in different economic environments, by shifting assets among three fixed income sectors. The three sectors tend to react differently to economic events, so that weak performance in one sector is often offset by strong performance in another. As U.S. interest rates continued to decline throughout 1993, economic growth slowly accelerated. Many economies overseas also appear poised to rebound from recession, and in Europe, there is a strong likelihood that interest rates will continue to fall, causing additional price appreciation in the Fund's bond investments. In this low-interest-rate environment, the Fund's managers continue to emphasize corporate bonds and foreign fixed income securities more heavily than U.S. government securities. In addition to offering attractive yields, many of the high yield corporate bonds in the portfolio have appreciated in price as the U.S. economic recovery has helped corporations increase profits and strengthen balance sheets. In particular, as the U.S. recovery has strengthened, the Fund has shifted its emphasis from broadcast and media companies to companies in more cyclical industries, such as building materials. We continue to expand the Fund's diversification in foreign markets, particularly in emerging markets where growth rates, in many cases, are higher than in the U.S. Our holdings are distributed across three broad regions-- Europe; the "Dollar bloc" countries of Australia, Canada and New Zealand; and emerging markets including Latin America, Indonesia and Eastern Europe. We are maintaining a relatively short average maturity in these investments to help guard against the risks of arise in interest rates, which would cause the value of bond investments to fall. We took advantage of the rise in price of long-term U.S. Treasuries and sold a portion of the Fund's investments in these securities. This strategy reduced the average maturity of the Fund's U.S. government investments, helping to limit the risks associated with a rise in interest rates. We will continue to monitor market conditions closely to seek out the best fixed income opportunities for the Fund worldwide. Oppenheimer Bond Fund Given the recent economic environment, marked by slow growth and low inflation and interest rates, we continued to emphasize corporate bonds during the past year. Over that period, as the economy began to improve, many corporate bond issuers experienced an improvement in earnings growth and cash flow which, in turn, helped improve overall credit ratings. The Fund's corporate sector continues to be diversified among a variety of industries, especially focusing on areas which are expected to experience high growth rates, such as telecommunications, or are undervalued, such as oil and gas companies. At the end of the third quarter of last year, we took profits on some of the Fund's long-term U.S. Treasury securities and purchased intermediate-term securities to position the Fund for a potential increase in interest rates. As we expect a further slight increase in rates in 1994 as the economy expands, we anticipate keeping the U.S. Treasury exposure shorter than it was for most of 1993. The Fund's mortgage sector continued to be affected by low interest rates which encourage homeowners to refinance their mortgages. As a result, the Fund's position in mortgage-related securities was decreased during the year, as prepayments of principal on mortgages accelerated beyond expectation. Based on the outlook for a strong U.S. dollar, the Fund has kept its foreign currency exposure relatively low. However, there are very attractive opportunities in foreign bond markets and the portfolio has added investments in dollar-denominated investment-grade bonds of Latin American countries, such as Colombia and Chile, as well as other emerging markets, such as Indonesia and the Czech Republic. Going forward, we continue to see especially attractive opportunities in the corporate and foreign sectors of the investment grade bond market. Oppenheimer Money Fund During the past year, the market for money market securities was characterized by stable short-term interest rates. With the economy sluggish throughout most of the year, interest rates remained low, which made it attractive for companies to issue long-term debt. Therefore, the supply of short-term money market securities was lower than usual. Inflation remained under control which led to a neutral stance by the Federal Reserve regarding interest rate adjustments. The net result is that current short-term interest rates are at essentially the same level as at the beginning of 1993. The Fund continued to invest all of its assets in Tier 1 securities, which are the highest quality money market instruments. The Fund's portfolio was concentrated in the corporate sector of the market to gain additional yield. Within this area, a portion of holdings were invested in floating rate instruments, which have yields tied to various indices, such as the prime rate or U.S. Treasury bill rate. The Fund received higher yields from these securities when short-term interest rates increased in October. In selecting money market securities, the Fund's manager diversifies the portfolio's holdings by market sector and issuer. Each security is carefully analyzed to ensure that it meets the high quality standards of the Fund and can provide a competitive return. Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds- Money Fund
Face Market Amount Value-Note 1 Repurchase Agreements -11.6% $ 7,100,000 Repurchase agreement with J.P Morgan Securities, Inc., 3.23%, dated 12/31/93 and maturing 1/3/94, collateralized by Federal National Mortgage Assn. Participation Certificates, 5.50%, 12/1/08, with a value of $7,277,496 (Cost $7,100,000)....... $ 7,100,000 Direct Bank Obligations and Letters of Credit -7.3% Abbey National PLC, guaranteeing commercial paper of: 2,500,000 Abbey National North America Corp., 3.28%, 3/18/94............. 2,482,952 ABN Amro Bank NV, guaranteeing commercial paper of: 2,000,000 ABN AMRO Bank Canada, 3.31%, 3/7/94............................ 1,988,228 Total Direct Bank Obligations (Cost $4,471,180)...................... 4,471,180 Short-Term Notes -71.4% Asset-Backed -10.6% 2,000,000 Beta Finance, Inc., 3.27%, 2/16/94(3)................................ 1,991,643 2,000,000 Corporate Asset Funding Co., Inc., 3.15%, 1/18/94.................... 1,997,025 2,500,000 CXC, Inc., 3.40%, 1/21/94............................................ 2,495,278 6,483,946 Broker/Dealers -19.2% 2,500,000 Bear Stearns Cos., Inc., 3.375%, 1/3/94(1)........................... 2,500,000 2,500,000 Goldman Sachs Group L.P., 3.35%, 2/1/94.............................. 2,492,896 700,000 Lehman Brothers Holdings, Inc., 3.375%, 1/3/94(1).................... 700,000 1,400,000 Merrill Lynch & Co., Inc., 3.045%, 1/3/94(1)......................... 1,399,936 2,635,000 Morgan Stanley Group, Inc., 2.82%, 1/3/94(1)......................... 2,635,000 2,000,000 Shearson Lehman Brothers Holdings, Inc., 3.58%, 1/7/94(1)............ 2,000,000 11,727,832 Commercial Finance -5.9% 1,000,000 CIT Group Holdings, Inc., 3.59%, 5/9/94(2)........................... 1,000,000 2,600,000 Heller Financial, Inc., 3.32%, 1/4/94(1)............................. 2,600,000 3,600,000 Consumer Non-Cyclicals -3.3% 2,000,000 American Brands, Inc., 3.34%, 1/21/94................................ 1,996,289 Diversified Finance -7.4% 2,000,000 Ford Motor Credit Corp., 9.40%-9.45%, 5/20/94-5/26/94................ 2,043,963 2,500,000 General Electric Capital Corp., 3.35%, 1/24/94....................... 2,494,649 4,538,612 Financial Services: Miscellaneous -8.9% 3,000,000 Countrywide Funding Corp., 3.32%-3.40%, 1/13/94-3/28/94.............. 2,983,005 2,500,000 Fleet Mortgage Group, Inc., 3.45%, 1/13/94........................... 2,497,125 5,480,130 Statement of Investments (Continued) Oppenheimer Variable Account Funds- Money Fund Face Market Amount Value-Note 1 Industrial -4.1% $ 2,500,000 BICC Cables Corp., guaranteed by BICC PLC, 3.55%, 1/4/94............. $ 2,499,260 Municipal -4.1% 2,500,000 North Slope Borough Alaska, 4.35%, 6/30/94........................... 2,500,000 Oil: Integrated International -3.2% 2,000,000 Petrofina (DE), Inc., 3.37%, 4/18/94................................. 1,979,968 Telecommunications -4.7% 2,900,000 NYNEX Corp., 3.40%, 3/28/94 ......................................... 2,876,445 Total Short-Term Notes (Cost $43,682,482)............................ 43,682,482 Short - Term U.S. Government Obligations -9.5% 5,453,090 Small Business Administration, 6.875%-7.875%, 1/1/94(1) (Cost $5,815,623) ................................................. 5,815,623 Total Investments, at Value (Cost $61,069,285)............................... 99.8 61,069,285 Other Assets Net of Liabilities.............................................. .2 152,334 Net Assets...................................................................100.0 $ 61,221,619 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. 1. Variable rate security. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 1993. 2. Put obligation redeemable at full face value on the date reported. 3. Security purchased in private placement transaction, without registration under the Securities Act of 1933 (the Act). The security was acquired on August 19, 1993, is carried at amortized cost, and amounts to $1,991,643, or 3.25% of the Fund's net assets. See accompanying Notes to Financial Statements.
Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds-High Income Fund
Face Market Amount Repurchase Agreements--6.8% Value-Note 1 $ 6,300,000 Repurchase agreement with J.P. Morgan Securities, Inc., 3.15%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Bills, 2.93%, 2/3/94, with a value of $6,437,138 (Cost $6,300,000).................................................................... $ 6,300,000 Short-Term Corporate Bonds and Notes--1.0% 1,000,000 (1) Citibank CD, 17.30%, 7/29/94 (4) (Cost $1,004,761)................................................... 947,137 Long-Term Government Obligations--5.5% Argentina (Republic of): 470,000 Bonds, Bonos del Tesoro, Series II, 3.50%, 9/1/97 (3).............................................. 387,762 1,239,875 (1) Bonds, Bonos de Consolidacion de Deudas, Series I, 4.25%, 4/1/01 (3) (5)................................................................................... 983,769 1,000,000 Past Due Interest Bonds, 4.1875%, 3/31/05 (3)...................................................... 878,750 2,000,000 (1) Bank Negara Indonesia Bonds, 0%, 5/12/95 ............................................................ 778,117 1,000,000 Bariven SA Bonds, 10.75%, 7/8/97 (6)................................................................. 608,984 150,000,000 (1) Spain (Kingdom of) Bonds, 10.25%, 11/30/98 (6)....................................................... 1,156,550 500,000 Venezuela (Republic of) Front-Loaded Interest Reduction Bonds, Series B, 6%, 3/31/07 (3)................................................................... 382,500 Total Long-Term Government Obligations (Cost $4,860,148) ................................................................................. 5,176,432 Long-Term Corporate Bonds and Notes--76.2% Aerospace/Defense --2.0% 1,750,000 GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98........................................................ 1,345,313 500,000 Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03.......................................................... 505,000 1,850,313 Airlines --1.6% 825,000 AMR Corp., 10% Debs., 4/15/21........................................................................ 952,092 500,000 Trism, Inc., 10.75% Gtd. Sr. Sub. Nts., 12/15/00.................................................... 515,000 1,467,092 Broadcast Media/Cable TV--18.8% 750,000 Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03 (7)....................................................................................... 783,750 1,000,000 Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 ............................. 1,020,000 Cablevision Systems Corp.: 500,000 9.875% Sr. Sub. Debs., 2/15/13..................................................................... 583,750 500,000 9.875% Sr. Sub. Debs., 4/1/23...................................................................... 585,000 500,000 Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01.................................................. 497,500 500,000 Continental Broadcasting Ltd./Continental Broadcasting Capital Corp., 10.625% Sr. Sub. Nts., 7/1/03....................................................... 513,750 Continental Cablevision, Inc.: 1,000,000 11% Sr. Sub. Debs., 6/1/07 ........................................................................ 1,177,500 700,000 9% Sr. Debs., 9/1/08 .............................................................................. 780,500 500,000 9.50% Sr. Debs., 8/1/13 ........................................................................... 560,000 500,000 General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00 (7)............................................. 512,500 1,000,000 Helicon Group LP/Helicon Capital Corp., 0%/9.50% Sr. Sec. Nts., 11/1/03 (2) (7)......................................................................... 977,500 2,000,000 International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts., 10/15/03 (2)................................................................................. 1,280,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund Face Market Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1 Broadcast Media/Cable TV (Continued) $ 500,000 Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03....................................................$ 531,250 1,000,000 New City Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 .... 1,035,000 500,000 Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03............................................ 516,250 Panamsat LP/Panamsat Capital Corp.: 500,000 9.75% Sr. Sec. Nts., 8/1/00........................................................................ 531,250 2,500,000 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (2)......................................................... 1,675,000 SCI Television, Inc.: 486,000 7.50% Sr. Sec. Nts., Series 1, 6/30/98............................................................. 473,546 750,000 11% Sr. Sec. Nts., 6/30/05......................................................................... 780,000 500,000 SFX Broadcasting, Inc., 11.375% Sr. Sub. Nts., 10/1/00............................................... 526,250 500,000 Sinclair Broadcasting Group, 10% Sr. Sub. Nts., 12/15/03............................................. 513,750 700,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07........................................................ 854,000 700,000 Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01 ..................................... 780,500 17,488,546 Building Materials --2.4% 1,000,000 Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03.......................................................... 1,037,500 1,000,000 Pt Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 .................................................. 1,003,750 500,000 Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02* (7)........................................... 190,000 2,231,250 Chemicals/Plastics --2.8% Harris Chemical North America, Inc.: 1,000,000 0%/10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01 (2).................................................... 858,750 750,000 10.75% Sr. Gtd. Sub. Nts., 10/15/03................................................................ 793,125 1,600,000 Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05 (2)..................................... 936,000 2,587,875 Consumer Goods: Manufacturing--3.7% 850,000 Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97......................................................... 871,250 2,000,000 Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 ................................... 1,295,000 1,000,000 Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 .................................... 1,120,000 350,000 Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., Series B, 3/15/98.................................... 180,250 3,466,500 Containers: Paper -- 0.3% 300,000 Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02....................................................... 261,000 Financial/Insurance -- 8.0% 750,000 Banco do Nordeste do Brasil, 10.375% Sr. Debs, 11/6/95 (7)........................................... 761,250 1,000,000 Banco Nacional de Mexico SA, 7% Exch. Sub. Debs., 12/15/99 (7)....................................................................................... 1,245,000 500,000 Blue Bell Funding, Inc., 11.85% Extd. Sec. Nts., 5/1/99 (3).......................................... 552,500 1,600,000 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 (7) ................................... 1,672,000 497,387 ECM Fund L.P.I., 14% Sub. Nts., 6/10/02 (7).......................................................... 557,819 493,943 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (7)...................................................... 602,610 1,206,215 Residential Funding Corp., 7.97% Real Estate Trust Pass-Through Ctfs., Series 1993-J2, Cl. B 1, 6/15/23 (7)............... 1,032,068 1,000,000 Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (7)..................................... 1,031,250 7,454,497 Food and Restaurants --2.6% 700,000 Di Giorgio Corp., 12% Sr. Nts., 2/15/03.............................................................. 761,250 Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund Face Market Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1 Food and Restaurants (Continued) Restaurant Enterprises Group, Inc.: $ 650,000 12.25% Sr. Sub. Nts., 12/15/96*....................................................................$ 640,250 1,500,000 12.75% Sub. Nts., 12/15/98*........................................................................ 990,000 2,391,500 Gaming/Hotels --2.0% 500,000 Casino America, Inc., Units.......................................................................... 517,500 500,000 Santa Fe Hotel, Inc., Units.......................................................................... 482,500 875,000 Treasure Bay Gaming & Resorts, Inc., Units (7)....................................................... 888,125 1,888,125 Healthcare/Medical Products--2.4% 500,000 Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02........................................... 513,125 1,000,000 Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05 (5)........................................ 1,002,813 700,000 Eye Care Centers of America, Inc., Units (7)......................................................... 717,500 2,233,438 Home Building/Development-- 3.0% 750,000 Dal-Tile International, Inc., 0% Sr. Sec. Nts., 7/15/98.............................................. 453,750 1,000,000 NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03................................................................ 1,057,500 640,000 Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01............................................... 736,000 Trizec Corp. Ltd.: 500,000 (1) 11.125% Sr. Debs., 6/18/96* (6).................................................................... 272,847 500,000 (1) 10.25% Sr. Debs., 6/22/99* (6)..................................................................... 276,624 2,796,721 Information Technology-- 0.6% 500,000 Dell Computer Corp., 11% Sr. Nts., 8/15/00 (7)....................................................... 526,250 Leisure/Entertainment -- 0.6% 521,305 Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 ..................................... 570,829 Manufacturing: Diversified--2.1% 500,000 Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 ........................................ 515,000 400,000 Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 ............................................ 438,000 1,000,000 Itel Corp., 13% Sr. Sub. Nts., 1/15/99............................................................... 1,043,750 1,996,750 Metals/Mining -- 3.5% 1,000,000 Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03.......................................... 1,072,500 500,000 Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00.................................................... 536,875 500,000 Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02 (7)................................................. 515,000 Stelco, Inc.: 500,000 (1) 10.875% Debs., 9/15/94 (6)......................................................................... 378,588 500,000 (1) 9.75% Debs., 4/1/95 (6)............................................................................ 374,811 500,000 (1) 10.40% Debs., 11/30/09 (6) ........................................................................ 369,147 3,246,921 Oil and Gas: Equipment and Services -- 0.6% 500,000 OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02................................... 582,500 Oil and Gas: Exploration and Production -- 4.7% 350,000 (1) BP America, Inc., 10.875% Nts., 8/1/01 (6)........................................................... 315,578 Maxus Energy Corp.: 1,000,000 8.50% Debs., 4/1/08................................................................................ 950,000 800,000 11.50% Debs., 11/15/15............................................................................. 844,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund Face Market Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1 Oil and Gas: Exploration and Production (Continued) Mesa Capital Corp.: $ 1,000 0%/12.75% Disc. Nts., 6/30/96 (2)..................................................................$ 798 75,000 0%/12.75% Cv. Disc. Nts., 6/30/98 (2).............................................................. 107,063 957,000 0%/12.75% Sec. Disc. Nts., 6/30/98 (2)............................................................. 813,450 Presidio Oil Co.: 700,000 13.25% Sr. Sub. Gas Indexed Nts., 2/15/99 (3) (7).................................................. 742,000 525,000 11.50% Sr. Sec. Nts., Series A, 9/15/00............................................................ 552,563 4,325,452 Publishing --2.3% 1,700,000 Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05 (2)............................................................................... 943,500 1,750,000 Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., 4/15/98...................................... 1,150,625 2,094,125 Railroads/Equipment -- 0.6% 500,000 Southern Pacific Transportation Co., 10.50% Sr. Sec. Nts., Series B, 7/1/99 .................................................................................. 555,625 Retail: Food and Drug--1.6% 500,000 Duane Reade, 12% Sr. Nts., Series B, 9/15/02......................................................... 542,500 1,000,000 Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 ........................................ 985,000 1,527,500 Retail: Specialty --3.1% 500,000 AnnTaylor, Inc., 0%/14.375% Sr. Sub. Disc. Nts., 7/15/99 (2)......................................... 535,000 250,000 Comtroladora Commercial Mexicano SA, 8.75% Gtd. Nts., 4/21/98 (7)............................................................................. 262,188 1,000,000 Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B, 12/6/00 (7) ......................................... 1,065,000 500,000 Musicland Group, Inc. (The), 9% Sr. Sub. Nts., 6/15/03............................................... 509,375 500,000 Zale Delaware Corp., 11% Sr. Sec. Nts., 6/1/00....................................................... 517,500 2,889,063 Services --1.0% 1,000,000 Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., 11/1/03 (7)......................................................................................... 920,000 Telecommunications --2.0% 2,000,000 Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (2)............................................ 1,360,000 650,000 Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (2) (7).................................................... 471,250 1,831,250 Textiles/Apparel --0.0% 115,000 Farley, Inc., 0% Sub. Debs., 12/30/12................................................................ 12,650 Transportation--3.4% Sea Containers Ltd.: 250,000 9.50% Sr. Nts., 7/1/03 ............................................................................ 251,563 500,000 12.50% Sr. Sub. Debs., Series A, 12/1/04........................................................... 565,625 350,000 12.50% Sr. Sub. Debs., Series B, 12/1/04........................................................... 386,750 1,500,000 Tiphook Financial Corp., 8% Gtd. Nts., 3/15/00....................................................... 1,230,000 1,500,000 Transtar Holdings LP, 0%/13.375% Sr. Disc. Nts., Series A, 12/15/08 (2)............................................................................. 746,250 3,180,188 Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund Face Market Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1 Utilities --0.5% $ 500,000 Subic Power Corp., 9.50% Debs., 12/28/08 (7).........................................................$ 510,000 Total Long-Term Corporate Bonds and Notes (Cost $67,518,869)................................................................................. 70,885,960 Derivative Securities --0.6% Lehman Brothers Holdings, Inc., 3.20% S & P 500 Index-Linked 500,000 Nts., 2/9/94 (7) (Cost $625,000)................................................................... 542,900 Municipal Bonds and Notes--2.5% 975,000 Pinole, California Redevelopment Agency Tax Allocation Taxable Bonds, Pinole Vista Redevelopment, Series B, 7.65%, 8/1/07...................................................................................... 1,040,368 500,000 Port of Portland, Oregon Taxable Special Obligation Revenue Bonds, PAMCO Project, 9.20%, 5/15/22....................................................... 549,472 12,500,000 San Joaquin Hills, California Transportation Corridor Agency Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, 0%, 1/1/28......................................................................................... 754,312 Total Municipal Bonds and Notes (Cost $2,086,187).................................................... 2,344,152 Shares Common Stocks --3.5% 46,220 Berg Electronics Holdings Corp.* (7)................................................................. 73,952 150 ECM Fund L.P.I. (7) ................................................................................ 150,000 2,000 Finlay Enterprises, Inc., CI. A*..................................................................... 30,000 10,355 Gillett Holdings, Inc., Cl. 1* (7)................................................................... 225,221 300 Host Marriott Corp. ................................................................................. 2,738 19,212 Insilco Corp.*....................................................................................... 259,362 67,142 Leaseway Transportation Corp.*....................................................................... 1,141,409 8,400 LFC Holding Corp.*................................................................................... 140,700 300 Marriott International, Inc. ........................................................................ 8,700 45,360 Petrolane, Inc., Cl. B .............................................................................. 459,270 4,964 SCI Television, Inc.*................................................................................ 53,053 5,567 USG Corp.*........................................................................................... 162,835 56,802 Zale Corp. .......................................................................................... 525,419 Total Common Stocks (Cost $2,750,626)................................................................ 3,232,659 Preferred Stocks --3.8% 10,000 AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A (7)............................................ 525,000 10,429 Berg Electronics Holdings Corp., $3.4687 Exch., Series D*............................................ 273,761 3,500 Dell Computer Corp., 7% Cv.(7)....................................................................... 379,750 20,000 Glendale Federal Bank, $2.1875 Cv., Series E......................................................... 510,000 5,973 K-III Communications Corp., $11.625 Exch., Series B (5).............................................. 610,728 10,000 Navistar International Corp, $6.00 Cv., Series G..................................................... 535,000 10,000 Offshore Pipelines, Inc., $2.25 Cum. Cv. Exch. ...................................................... 402,500 50,000 Trizec Ltd., Sr. Cl. B, Series 3*.................................................................... 64,199 5,000 Unisys Corp., $3.75 Cv., Series A.................................................................... 241,875 Total Preferred Stocks (Cost $3,404,880)............................................................. 3,542,813 Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund Market Units Rights, Warrants and Certificates -- 0.9% Value-Note 1 12,400 Ames Department Stores, Inc., Excess Cash Flow Payments Ctfs. .......................................$ 124 39,658 Ames Department Stores, Inc., Litigation Trust Units ................................................ 397 4,699 Digicon, Inc. Wts., Exp. 7/96........................................................................ 1,762 71,950 Gaylord Container Corp. Wts., Exp. 7/96.............................................................. 260,819 500 General Media, Inc. Wts., Exp. 12/00 (7)............................................................. 8,000 1,905 Hollywood Casino Corp. Wts., Exp. 4/98............................................................... 403,809 28,000 Protection One, Inc. Wts., Exp. 11/03 (7)............................................................ 89,880 2,599 Purity Supreme, Inc. Wts., Exp. 8/97 (7)............................................................. 52 50 Santa Fe Hotel, Inc. Wts., Exp. 12/96................................................................ 35,375 400 Southland Corp. Wts., Exp. 3/96...................................................................... 2,000 5,000 Triangle Wire & Cable, Inc. Wts., Exp. 1/98 (7)...................................................... 50 6,000 UGI Corp. Wts., Exp 3/98 ............................................................................ 10,200 Total Rights, Warrants and Certificates (Cost $313,508).............................................. 812,468 Total Investments, at Value (Cost $88,863,979)......................................................... 100.8% 93,784,521 Liabilities in Excess of Other Assets.................................................................. (.8) (773,188) Net Assets............................................................................................. 100.0% $ 93,011,333 * Non-income producing security. 1. Face amount is reported in foreign currency. 2. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date. 3. Represents the current interest rate for a variable rate security. 4. Indexed instrument for which the principal amount due at maturity is affected by the relative value of a foreign security. 5. Interest or dividend is paid in kind. 6. Securities with an aggregate market value of $3,753,129 are segregated to collateralize outstanding forward currency exchange contracts. See Note 5 of Notes to Financial Statements. 7. The Fund owns securities purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securities, excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines. Restricted and illiquid securities amount to $2,731,042, or 2.94% of the Fund's net assets, at December 31, 1993.
Valuation Per Acquisition Cost Unit as of Security Date Per Unit December 31, 1993 Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A, 10/1/03(8)....................................................... 10/1/93 $ 100.00 $ 104.50 AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A Preferred Stock(8)......................................................... 12/2/93 $ 52.88 $ 52.50 Banco do Nordeste do Brasil, 10.375% Sr. Debs., 11/6/95(8)................... 4/26/93 $ 99.80 $ 101.50 Banco Nacional de Mexico SA, 7% Exch. Sub. Debs., 12/15/99(8)... 12/1/92-5/24/93 $ 102.40 $ 124.50 Berg Electronics Holdings Corp. Common Stock(8).............................. 4/28/93-8/11/93 $ 11.90 $ 1.60 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(8)............. 10/5/93-12/1/93 $ 101.34 $ 104.50 Comtroladora Commercial Mexicano SA, 8.75% Gtd. Nts., 4/21/98(8)................................................................. 4/2/93 $ 99.34 $ 104.88 Dell Computer Corp., 7% Cv. Preferred Stock (8).............................. 8/19/93 $ 100.00 $ 108.50 Dell Computer Corp., 11% Sr. Nts., 8/15/00(8)................................ 10/27/93 $ 101.00 $ 105.25 ECM Fund L.P.I. Common Stock................................................. 4/14/92 $1,000.00 $1,000.00 ECM Fund L.P.I., 14% Sub. Nts., 6/10/02...................................... 4/14/92 $ 100.00 $ 112.15
Statement of Investments (Continued) Oppenheimer Variable Account Funds-High Income Fund
Valuation Per Acquisition Cost Unit as of Security Date Per Unit December 31, 1993 Eye Care Centers of America, Inc., Units(8).................................. 9/28/93 $ 100.00 $ 102.50 General Media, Inc., 10.625% Sr. Sec Nts., 12/31/00(8)....................... 12/14/93 $ 97.39 $ 102.50 General Media, Inc. Wts., Exp. 12/00(8)...................................... 12/14/93 $ .01 $ 16.00 Gillett Holdings, Inc., Cl. 1 Common Stock................................... 12/1/92 $ 10.50 $ 21.75 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10(8)............................... 1/29/93 $ 102.40 $ 122.00 Helicon Group LP/ Helicon Capital Corp., 0%/9.50% Sr. Sec. Nts., 11/1/03(8)...................................................... 10/20/93 $ 95.01 $ 97.75 Horizon Cellular Telephone LP/Horizon Finance Corp., 0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(8)................................ 9/24/93 $ 64.24 $ 72.50 Lehman Brothers Holdings, Inc., 3.20% S&P 500 Index-Linked Nts., 2/9/94............................................................... 11/9/93 $ 125.00 $ 108.58 Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B, 12/6/00...................... 12/11/92-3/22/93 $ 106.50 $ 106.50 Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02(8).......................... 12/3/93 $ 100.00 $ 103.00 Presidio Oil Co., 13.25% Sr. Sub. Gas Indexed Nts., 2/15/99(8)................................................................. 2/23/93 $ 80.00 $ 106.00 Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts., 11/1/03(8)................................................................. 11/04/93 $ 91.10 $ 92.00 Protection One Alarm Monitoring, Inc., Wts., Exp. 11/03(8)................... 11/04/93 $ 3.18 $ 3.21 Purity Supreme, Inc. Wts., Exp. 8/97......................................... 7/29/92 $ -- $ .02 Residential Funding Corp., 7.97% Real Estate Trust Pass-Through Ctfs., Series 1993-J2, Cl. B1, 6/15/23(8).................................. 6/29/93 $ 83.97 $ 85.56 Subic Power Corp., 9.50% Debs., 12/28/08(8).................................. 12/20/93 $ 99.93 $ 102.00 Treasure Bay Gaming & Resorts, Inc., Units(8)................................ 11/10/93 $ 100.00 $ 101.50 Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02........................ 1/13/92 $ 100.00 $ 38.00 Triangle Wire & Cable, Inc. Wts., Exp. 1/98.................................. 1/13/92 $ -- $ .01 Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (8)............. 11/8/93 $ 100.00 $ 103.13
8 Transferable under Rule 144A of the Act. See accompanying Notes to Financial Statements. Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds -- Bond Fund
Face Market Amount Repurchase Agreements--17.9% Value-Note 1 $20,000,000 Repurchase agreement with First Chicago Capital Markets, Inc., 3.125%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Nts., 3.875%, 3/31/95, with a value of $20,406,039 (Cost $20,000,000).................................... $ 20,000,000 Short-Term Corporate Bonds and Notes--0.8% Citibank CD: 500,000 (1) 17.35%, 7/28/94 (3) .............................................. 476,603 500,000 (1) 17.30%, 7/29/94 (3) .............................................. 473,569 Total Short-Term Corporate Bonds and Notes (Cost $1,007,367) ................................................ 950,172 Long-Term Government Obligations--28.3% 3,000,000 (1) Bank Negara Indonesia Bonds, 0%, 5/12/95 ........................... 1,167,176 Corporacion Andina de Fomento: 1,000,000 Bonds, 6.625%, 10/14/98 (4) ..................................... 992,500 1,000,000 Nts., 7.25%, 4/30/98 (4) ........................................ 1,020,625 1,000,000 Czechoslovakia National Bank Nts., 7%, 4/16/96 (4) ................. 1,017,500 1,250,000 Empresa Columbiana de Petroleos Nts., 7.25%, 7/8/98 (4) ............ 1,270,313 Federal National Mortgage Assn. Gtd. Real Estate Mortgage Investment Conduit Pass-Through Ctfs.: 3,000,000 8.75%, 11/25/05 .................................................. 3,214,830 2,000,000 10.40%, 4/25/19 .................................................. 2,239,800 1,450,000 Financiera Energetica Nacional Nts., 6.625%, 12/13/96 .............. 1,446,375 1,000,000 Petroliam Nasional Berhad Nts., 6.875%, 7/1/03(4) .................. 1,012,500 1,000,000 (1) Treasury Corp. of Victoria Gtd. Sr. Nts., 8.25%, 10/15/03 .......... 733,060 U.S. Treasury Bonds: 5,000,000 8%, 11/15/21 ..................................................... 5,923,399 1,000,000 7.25%, 8/15/22 ................................................... 1,091,560 U.S. Treasury Nts.: 1,000,000 6.875%, 8/15/94 .................................................. 1,020,930 3,000,000 5.875%, 5/15/95 .................................................. 3,075,930 1,000,000 7.875%, 6/30/96 .................................................. 1,087,180 1,000,000 6.375%, 6/30/97 .................................................. 1,052,490 3,000,000 6%, 12/31/97 ..................................................... 3,116,220 1,000,000 8.25%, 7/15/98 ................................................... 1,125,620 Total Long-Term Government Obligations (Cost $29,898,884) ............................................... 31,608,008 Long-Term Corporate Bonds and Notes--44.7% Airlines --1.0% 975,000 AMR Corp., 10% Debs., 4/15/21 ...................................... 1,125,200 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Bond Fund Face Market Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1 Automobiles, Trucks and Parts --0.9% $ 800,000 Chrysler Corp., 10.95% Debs., 8/1/17 ............................... $ 964,874 Banks/Savings and Loans --1.8% 200,000 Chemical New York Corp., 9.75% Sub. Cap. Nts., 6/15/99 ............. 235,515 750,000 First Chicago Corp., 11.25% Sub. Nts., 2/20/01 ..................... 964,171 100,000 First Fidelity Bancorporation, 8.50% Sub. Cap. Nts., 4/1/98 ........ 109,444 475,000 Heller Financial, Inc., 7.75% Nts., 5/15/97 ........................ 508,995 165,000 NBD Bancorp, Inc., 7.25% Sub. Debs., 8/15/04 ....................... 175,922 1,994,047 Broadcast Media/Cable TV -- 7.4% News America Holdings, Inc.: 500,000 12% Sr. Nts., 12/15/01 ........................................... 607,500 100,000 8.625% Sr. Nts., 2/1/03 .......................................... 110,375 500,000 10.125% Gtd. Sr. Debs., 10/15/12 ................................. 606,875 1,500,000 Time Warner Entertainment Co. LP, 8.375% Sr. Debs., 3/15/23 ........ 1,582,500 Time Warner, Inc.: 800,000 7.45% Nts., 2/1/98 ............................................... 842,000 220,000 7.95% Nts., 2/1/00 ............................................... 235,400 3,500,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 ...................... 4,270,000 8,254,650 Chemicals/Plastics --2.3% 2,100,000 Quantum Chemical Corp., 10.375% Fst. Mtg. Bonds, 6/1/01 ............ 2,560,341 Financial/Insurance --9.7% 1,000,000 Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20 (2) ........... 1,537,500 700,000 Conseco, Inc., 8.125% Sr. Nts., 2/15/03 ............................ 733,106 2,000,000 First Boston Mortgage Securities Corp., 7.04% Mtg. Pass- Through Ctfs., 10/25/02 .......................................... 1,976,250 General Motors Acceptance Corp.: 700,000 8% Nts., 10/1/96 ................................................. 746,928 700,000 7.75% Nts., 4/15/97 .............................................. 744,556 300,000 5.50% Nts., 12/15/01 ............................................. 278,091 1,185,462 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (4) .................... 1,446,264 450,000 PaineWebber Group, Inc., 7.75% Sub. Nts., 9/1/02 ................... 474,652 1,250,000 Republic American Corp., 9.50% Sub. Debs., 8/1/02 .................. 1,298,695 1,171,405 Resolution Trust Corp., 8.25% Mtg. Pass-Through Ctfs., Series 1992-CHF, Cl. C, 12/25/20 ................................. 1,218,994 350,000 Shearson Lehman Brothers Holdings, Inc., 8.375% Nts., 2/15/99 ...... 382,999 10,838,035 Food and Restaurants --1.5% 500,000 Philip Morris Cos., Inc., 8.875% Nts., 7/1/96 ...................... 546,917 1,000,000 RJR Nabisco, Inc., 10.50% Sr. Nts., 4/15/98 ........................ 1,105,000 1,651,917 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Bond Fund Face Market Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1 Gaming/Hotels --1.9% $ 1,225,000 Circus Circus Enterprises, Inc., 6.75% Sr. Sub. Nts., 7/15/03 ...... $ 1,226,491 Host Marriott Hospitality, Inc.: 228,000 10.125% Sr. Nts., Series F, 1/15/99 .............................. 235,980 190,000 10.625% Sr. Nts., Series B, 2/1/00 ............................... 195,700 475,000 11% Sr. Nts., Series L, 5/1/07 ................................... 488,656 2,146,827 Healthcare/Medical Products -- 1.2% 1,178,824 Epic Properties, Inc., 11.50% Gtd. Fst. Priority Mtg. Nts., Cl. B-2, 7/15/01 ................................................. 1,326,176 Home Building/Development -- 2.3% 1,000,000 (1) Noranda Forest, Inc., 11% Debs., 7/15/98 ........................... 849,037 1,664,470 Scotia Pacific Holding Co., 7.95% Timber Collateralized Nts., 7/20/15 .......................................................... 1,738,329 2,587,366 Leisure/Entertainment --1.4% 500,000 Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub. Nts., 2/1/98 ........................................................... 571,450 250,000 Eastman Kodak Co., 10% Nts., 6/15/01 ............................... 278,036 700,000 Mattel, Inc., 6.875% Sr. Nts., 8/1/97 .............................. 732,533 1,582,019 Oil and Gas: Equipment and Services -- 1.2% 400,000 McDermott, Inc., 9.375% Nts., 3/15/02 .............................. 454,866 250,000 Sonat, Inc., 9.50% Nts., 8/15/99 ................................... 286,861 500,000 Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 ................ 558,759 1,300,486 Oil and Gas: Exploration and Production -- 0.4% 375,000 Atlantic Richfield Co., 10.375% Nts., 7/15/95 ...................... 408,525 Oil and Gas: Integrated -- 1.1% Tenneco, Inc.: 650,000 7.875% Nts., 10/1/02 ............................................. 696,255 400,000 10% Debs., 3/15/08 ............................................... 503,748 1,200,003 Railroads/Equipment --1.1% 700,000 American Car Line Co., 8.25% Equipment Trust Ctfs., Series 1993-A, 4/15/08 ........................................... 731,500 400,000 Union Pacific Corp., 9.65% Medium-Term Nts., 4/17/00 ............... 475,256 1,206,756 Telecommunications --0.5% 500,000 GTE Corp., 9.375% Debs., 12/1/00 ................................... 594,612 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Bond Fund Face Market Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1 Textiles/Apparel --1.0% $ 1,097,000 Fruit of the Loom, Inc., 7% Debs., 3/15/11 ......................... $ 1,066,833 Transportation --1.2% Tiphook Financial Corp.: 1,000,000 8% Gtd. Nts., 3/15/00 ............................................ 820,000 600,000 10.75% Sr. Gtd. Nts., 11/1/02 .................................... 531,000 1,351,000 Utilities --6.8% 750,000 Boise Cascade Corp., 9.90% Nts., 3/15/00 ........................... 847,162 650,000 (1) BP America, Inc., 10.875% Nts., 8/1/01 ............................. 586,073 Coastal Corp.: 700,000 8.75% Sr. Nts., 5/15/99 .......................................... 763,508 2,000,000 11.75% Sr. Debs., 6/15/06 ........................................ 2,320,000 Commonwealth Edison Co.: 550,000 6.50% Nts., 7/15/97 .............................................. 564,060 275,000 6.40% Nts., 10/15/05 ............................................. 260,512 500,000 Long Island Lighting Co., 7% Debs., 3/1/04 ......................... 485,454 1,000,000 Mitchell Energy & Development Corp., 9.25% Sr. Nts., 1/15/02 ....... 1,122,500 750,000 Public Service Company of Colorado, 8.75% Fst. Mtg. Bonds, 3/1/22 ........................................................... 841,434 7,790,703 Total Long-Term Corporate Bonds and Notes (Cost $47,992,177)................................................ 49,950,370 Municipal Bonds and Notes -- 6.3% City of New York Taxable General Obligation Bonds, Series D: 500,000 9%, 2/1/13 ....................................................... 564,632 500,000 9.90%, 2/1/15 .................................................... 588,588 650,000 Connecticut State Taxable General Obligation Bonds, 6.625%, 12/15/97 ......................................................... 686,732 Dade County, Florida Educational Facilities Authority Taxable Exchange Revenue Bonds, University of Miami, MBIA Insured: 175,000 7.65%, 4/1/10 ................................................... 202,488 325,000 9.70%, 4/1/10 ................................................... 388,893 New York State Environmental Facilities Corp. State Service Contract Taxable Revenue Bonds: 375,000 Series A, 9.625%, 3/15/21 ....................................... 431,862 Series B: 200,000 7.30%, 3/15/97 ............................................... 209,186 800,000 8.15%, 3/15/02 ............................................... 871,697 1,320,000 Pinole, California Redevelopment Agency Tax Allocation Taxable Bonds, Pinole Vista Redevelopment, Series B, 8.35%, 8/1/17 ....... 1,419,890 1,500,000 Port of Portland, Oregon Taxable Special Obligation Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 ............................. 1,648,415 Total Municipal Bonds and Notes (Cost $6,306,380) .................. $ 7,012,383 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Bond Fund Market Shares Common Stocks --0.0% Value-Note 1 1,413 Host Marriott Corp. ................................................ 12,894 1,413 Marriott International, Inc. ....................................... 40,977 Total Common Stocks (Cost $46,982) ................................. 53,871 Total Investments, at Value (Cost $105,251,790) ...................... 98.0% 109,574,804 Other Assets Net of Liabilities ...................................... 2.0 2,271,317 Net Assets ........................................................... 100.0% $ 111,846,121 1. Face amount is reported in foreign currency. 2. Represents the current interest rate for a variable rate security. 3. Indexed instrument for which the principal amount due at maturity is affected by the relative value of a foreign security. 4. The Fund owns securities purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than more than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securit excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines.
Valuation Per Acquistion Cost Unit as of Security Date Per Unit December Corporacion Andina de Fomento: Bonds, 6.625%, 10/14/98 (5).............................. 9/23/93 $ 99.95 $ 99.25 Nts., 7.25%, 4/30/98 (5)................................. 4/15/93 $ 99.38 $102.06 Czechoslovakia National Bank Nts., 7%, 4/16/96 (5).......... 3/11/93 $ 99.70 $101.75 Empresa Columbiana de Petroleos Nts., 7.25%, 7/8/98 (5)..... 6/24/93 $ 99.63 $101.63 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (5)............. 1/29/93 $102.40 $122.00 Petroliam Nasional Berhad Nts., 6.875%, 7/1/03 (5).......... 7/28/93 $100.60 $101.25
5. Transferable under Rule 144A of the Act. See accompanying Notes to Financial Statements. Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds - Capital Appreciation Fund
Face Market Amount Repurchase Agreements--13.9% Value-Note 1 $19,000,000 Repurchase agreement with J.P. Morgan Securities, Inc., 3.15%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Bills, 2.93%, 2/3/94, with a value of $19,399,169 (Cost $19,000,000) ............................... $ 19,000,000 Corporate Bonds and Notes--4.1% 1,250,000 Aspect Telecommunications Corp., 5% Cv. Sub. Debs., 10/15/03 (1) ................................................. 1,518,750 1,000,000 Intelcom Group, Inc., 7% Cv. Sub. Nts., 10/30/98 (1) ............. 777,840 1,000,000 Medaphis Corp., 6.50% Cv. Sub. Debs., 1/1/00 (1) ................. 1,225,000 750,000 RHI Entertainment, Inc., 6.50% Cv. Sub. Debs., 6/1/03 ............ 986,250 2,000,000 Solectron Corp., 0% Liq. Yld. Opt. Sub. Nts., 5/5/12 ............. 1,170,000 Total Corporate Bonds and Notes (Cost $4,604,064) ................ 5,677,840 Units Rights, Warrants and Certificates--0.1% 120,000 Tapistron International, Inc. Wts., Exp. 6/97 * .................. 135,000 381 Windmere Corp. Wts., Exp. 1/98 * ................................. - Total Rights, Warrants and Certificates (Cost $52,860) ........... 135,000 Shares Common Stocks --84.9% Basic Materials --0.8% Metals: Miscellaneous --0.3% 20,000 Custom Chrome, Inc. * ............................................ 445,000 Steel --0.5% 17,000 Huntco, Inc., Cl. A .............................................. 716,125 Consumer Cyclicals --31.9% Airlines --1.0% 40,000 Atlantic Southeast Airlines, Inc. ................................ 1,370,000 Auto Parts: After Market--2.7% 40,000 AutoZone, Inc. * ................................................. 2,290,000 20,000 Bailey Corp. * ................................................... 275,000 20,000 O'Reilly Automotive, Inc. * ...................................... 580,000 27,000 Stant Corp. ...................................................... 546,750 3,691,750 Broadcast Media--1.9% 25,200 EZ Communications, Inc., Cl. A ................................... 396,900 25,000 IDB Communications Group, Inc. * ................................. 1,375,000 50,000 Valuevision International, Inc., Cl. A * ......................... 768,750 2,540,650 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Cyclicals (Continued) Entertainment --2.9% 21,000 Autotote Corp. * ................................................. $ 462,000 30,000 Hollywood Park, Inc. * ........................................... 900,000 47,000 Iwerks Entertainment, Inc. * ..................................... 1,257,250 40,000 Players International, Inc. * .................................... 990,000 24,000 RIO HOTEL & CASINO, INC. * ....................................... 384,000 3,993,250 Hotels / Motels--2.6% 30,000 Circus Circus Enterprises, Inc. * ................................ 1,110,000 50,000 Mirage Resorts, Inc. * ........................................... 1,193,750 26,000 Promus Cos., Inc. (The) * ........................................ 1,189,500 3,493,250 Household Furnishings and Applliances--1.4% 32,500 Heilig-Meyers Co. ................................................ 1,267,500 35,000 Rhodes, Inc. * ................................................... 586,250 1,853,750 Leisure Time--2.3% 20,000 Caesar's World, Inc. * ........................................... 1,067,500 32,000 Funco, Inc. * .................................................... 480,000 20,000 International Game Technology .................................... 590,000 20,000 Showboat, Inc. ................................................... 322,500 25,000 Sodak Gaming, Inc. * ............................................. 750,000 3,210,000 Restaurants--2.6% 45,000 Apple South, Inc. ................................................ 945,000 22,500 Brinker International, Inc. * .................................... 1,035,000 20,000 HomeTown Buffet, Inc. * .......................................... 565,000 27,000 Outback Steakhouse, Inc. * ....................................... 1,036,125 3,581,125 Retail: Specialty--9.7% 10,500 Barnes & Noble, Inc. ............................................. 261,188 30,000 Bed Bath & Beyond, Inc. * ........................................ 1,035,000 70,000 Blockbuster Entertainment Corp. .................................. 2,143,750 45,000 Bombay Co., Inc. (The) * ......................................... 2,025,000 35,000 CellStar Corp. * ................................................. 586,250 58,000 CML Group, Inc. .................................................. 1,370,250 72,000 General Nutrition Cos., Inc. * ................................... 2,052,000 12,000 Insurance Auto Auctions, Inc. * .................................. 447,000 33,500 Musicland Stores Corp. * ......................................... 695,125 20,000 Office Depot, Inc. * ............................................. 672,500 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Cyclicals (Continued) Retail: Specialty (Continued) 16,000 PetsMart, Inc. * ................................................. $ 436,000 45,000 Rex Stores Corp. * ............................................... 1,018,125 30,000 Spiegel, Inc., Cl. A ............................................. 675,000 13,417,188 Retail: Specialty Apparel--0.2% 12,000 Urban Outfitters, Inc. * ......................................... 321,000 Retail Stores: Department Stores--1.1% 30,000 Kohls Corp. * .................................................... 1,507,500 Retail Stores: General Merchandise Chains--0.6% 35,000 Damark International, Inc. * ..................................... 796,250 Shoes--0.3% 20,000 Baker (J.), Inc. ................................................. 350,000 Textiles: Apparel Manufacturers--2.6% 30,000 Mohawk Industries, Inc. * ........................................ 1,027,500 25,000 Phillips-Van Heusen Corp. ........................................ 937,500 60,000 Tapistron International, Inc. * .................................. 300,000 41,000 Tommy Hilfiger Corp. * ........................................... 1,281,250 3,546,250 Consumer Non-Cyclicals--14.5% Beverages: Soft Drinks--1.2% 36,000 Cott Corp. ....................................................... 877,500 30,000 Snapple Beverage Corp. * ......................................... 787,500 1,665,000 Drugs--3.9% 6,361 Copley Pharmaceutical, Inc. * .................................... 251,260 50,000 Ethical Holdings Ltd., ADR * ..................................... 437,500 62,500 Nature's Bounty, Inc. * .......................................... 1,296,875 40,000 Perrigo Co. * .................................................... 1,370,000 15,000 R.P. Scherer Corp. * ............................................. 566,250 35,000 Roberts Pharmaceutical Corp. * ................................... 1,391,250 5,313,135 Food Wholesalers--0.5% 40,000 Ridgefield * ..................................................... 650,000 Healthcare: Diversified--1.2% 30,000 IVAX Corp. ....................................................... 862,500 25,500 Value Health, Inc. * ............................................. 803,250 1,665,750 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Non-Cyclicals (Continued) Healthcare: Miscellaneous--3.6% 20,000 Athena Neurosciences, Inc. * ..................................... $ 165,000 20,000 Celtrix Pharmaceuticals, Inc. * .................................. 220,000 10,000 Cygnus Therapeutic Systems * ..................................... 112,500 20,000 Elan Corp. PLC * ................................................. 847,500 25,000 Genesis Health Ventures, Inc. * .................................. 587,500 30,000 Genetic Therapy, Inc. * .......................................... 487,500 20,000 Intergroup Healthcare Corp. * .................................... 960,000 20,000 Isis Pharmaceuticals, Inc. * ..................................... 135,000 50,000 Martek Biosciences Corp. * ....................................... 450,000 20,000 Matrix Pharmaceutical, Inc. * .................................... 210,000 10,000 Medimmune, Inc. * ................................................ 110,000 15,000 PerSeptive Biosystems, Inc. * .................................... 431,250 10,000 Vertex Pharmaceuticals, Inc. * ................................... 185,000 4,901,250 Hospital Management--2.8% 15,000 American Medical Response, Inc. * ................................ 375,000 80,000 Horizon Healthcare Corp. ......................................... 1,610,000 50,000 Lincare Holdings, Inc. * ......................................... 1,243,750 30,000 Mariner Health Group, Inc. * ..................................... 648,750 3,877,500 Medical Products--1.3% 9,486 Applied Immune Sciences, Inc. * .................................. 94,860 10,000 Molecular Dynamics, Inc. * ....................................... 117,500 20,000 Ventritex, Inc. * ................................................ 785,000 25,000 Zoll Medical Corp. * ............................................. 750,000 1,747,360 Energy--2.4% Natural Gas: Processing--0.7% 35,400 Louis Dreyfus Natural Gas Corp. * ................................ 566,400 20,000 Newfield Exploration Co. * ....................................... 352,500 918,900 Oil: Integrated Domestic--0.3% 40,000 Trident NGL Holding, Inc. * ...................................... 470,000 Oil and Gas Drilling--1.4% 12,500 Alexander Energy Corp. * ......................................... 60,938 30,800 Cross Timbers Oil Co. ............................................ 438,900 25,000 International Colin Energy Corp. * ............................... 318,750 7,083 International Pedco Energy Corp. * ............................... 11,181 50,000 St. Mary Land & Exploration Co. .................................. 612,500 35,000 Stone Energy Corp. * ............................................. 472,500 1,914,769 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Financial--8.0% Financial Services: Miscellaneous--4.5% 30,000 Advanta Corp., Cl. B ............................................. $ 870,000 25,000 BHC Financial, Inc. * ............................................ 687,500 38,000 Countrywide Credit Industries, Inc. .............................. 954,750 48,400 First USA, Inc. .................................................. 1,730,300 41,000 Foothill Group, Inc. (The), Cl. A ................................ 681,625 10,000 Insignia Financial Group, Inc., Cl. A * .......................... 230,000 20,000 Servicios Financieros Quadrum SA, Sponsored ADR .................. 647,500 30,000 Vallicorp Holdings, Inc. ......................................... 375,000 6,176,675 Insurance: Life--0.6% 40,000 Bankers Life Holding Corp. ....................................... 860,000 Insurance: Multi-Line--1.2% 60,000 CCP Insurance, Inc. .............................................. 1,672,500 Insurance: Property and Casualty--1.6% 16,500 ACE Ltd. ......................................................... 513,563 25,000 Mid Ocean Ltd. * ................................................. 706,250 20,000 PartnerRe Holdings Ltd. .......................................... 435,000 45,000 Philadelphia Consolidated Holding Co. * .......................... 540,000 2,194,813 Savings and Loans/Holding Cos.--0.1% 2,733 Pacific Crest Capital, Inc. * .................................... 19,473 Industrial--4.9% Conglomerates--1.1% 70,000 Grupo Carso SA, ADS * ............................................ 1,531,250 Electrical Equipment--0.9% 52,000 AER Energy Resources, Inc. * ..................................... 533,000 24,000 Kent Electronics Corp. * ......................................... 684,000 1,217,000 Machinery: Diversified--1.0% 23,000 Duracraft Corp. .................................................. 569,250 43,000 FSI International, Inc. * ........................................ 516,000 20,500 Quickturn Design System, Inc. * .................................. 256,250 1,341,500 Manufacturing: Diversified Industrials--1.7% 30,000 Johnstown America Industries, Inc. * ............................. 735,000 20,000 Trinity Industries, Inc. ......................................... 862,500 110,000 Zoltek Cos., Inc. * .............................................. 701,250 2,298,750 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Industrial (Continued) Railroads--0.2% 11,300 RailTex, Inc. * .................................................. $ 313,575 Technology--22.4% Communication: Equipment/Manufacturers--1.9% 26,800 Antec Corp. * .................................................... 670,000 15,000 BroadBand Technologies, Inc. * ................................... 476,250 15,000 Glenayre Technologies, Inc. * .................................... 652,500 15,000 Newbridge Networks Corp. * ....................................... 821,250 2,620,000 Computer Software and Services--10.5% 25,000 Acclaim Entertainment, Inc. * .................................... 531,250 30,000 Cheyenne Software, Inc. * ........................................ 828,750 22,000 Compuware Corp. * ................................................ 572,000 34,200 Cornerstone Imaging, Inc. * ...................................... 504,450 41,000 CUC International, Inc. * ........................................ 1,476,000 11,100 Danka Business System PLC, Sponsored ADR ......................... 444,000 39,000 Davidson & Associates, Inc. * .................................... 702,000 20,000 Electronic Arts, Inc. * .......................................... 600,000 90,000 EMC Corp. * ...................................................... 1,485,000 25,000 Fourth Shift Corp. * ............................................. 210,938 17,000 FTP Software, Inc. * ............................................. 450,500 12,000 GTECH Holdings Corp. * ........................................... 393,000 20,000 HBO & Co. ........................................................ 920,000 12,500 Information Resources, Inc. * .................................... 481,250 30,000 Lotus Development Corp. * ........................................ 1,650,000 24,000 Mercury Interactive Corp. * ...................................... 414,000 30,000 Pairgain Technologies, Inc. * .................................... 412,500 944 Sap AG, Preference ............................................... 877,933 16,000 SOFTIMAGE, Inc. * ................................................ 256,000 4,500 SPS Transaction Services, Inc. * ................................. 271,125 20,000 Sybase, Inc. * ................................................... 840,000 14,320,696 Computer Systems--4.7% 10,000 Cabletron Systems, Inc. * ........................................ 1,125,000 9,000 Cisco Systems, Inc. * ............................................ 581,625 25,000 First Data Corp. ................................................. 1,018,750 48,000 Golden Systems, Inc. * ........................................... 411,000 30,000 Pyxis Corp. * .................................................... 2,242,500 69,000 Union Switch & Signal, Inc. * .................................... 1,086,750 6,465,625 Electronics--0.4% 30,500 Itron, Inc. * .................................................... 549,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Capital Appreciation Fund Market Shares Common Stocks (Continued) Value-Note 1 Technology (Continued) Electronics: Instrumentation--1.5% 60,000 American Power Conversion Corp. * ................................ $ 1,425,000 75,000 CMC Industries, Inc. * ........................................... 637,500 2,062,500 Electronics: Semiconductors--0.6% 80,000 Advanced Technology Materials, Inc. * ............................ 470,000 32,100 MRS Technology, Inc. * ........................................... 417,300 887,300 Telecommunications--2.8% 20,000 Cencall Communications Corp. * ................................... 560,000 40,000 Davel Communications Group, Inc. ................................. 615,000 20,000 LCI International, Inc. * ........................................ 740,000 33,177 LDDS Communications, Inc. * ...................................... 1,600,790 45,000 WCT Communications, Inc. * ....................................... 264,373 3,780,163 Total Common Stocks (Cost $91,474,536) ........................... 116,267,572 Total Investments, at Value (Cost $115,131,460) ..................... 103.0% 141,080,412 Liabilities in Excess of Other Assets ............................... (3.0) (4,195,309) Net Assets .......................................................... 100.0% $136,885,103 * Non-income producing security. 1 The Fund owns securities purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securities, excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines. Restricted and illiquid securities amount to $777,840, or .57% of the Fund's net assets, at December 31, 1993. Valuation Per Acquisition Cost Unit as of Security Date Per Unit 12/31/93 Aspect Telecommunications Corp., 5% Cv. Sub Debs., 10/15/03(2) 9/14/93 $100.00 $121.50 Intelcom Group, Inc., 7% Cv. Sub. Nts., 10/30/98 ............ 11/2/93 $100.00 $ 77.78 Medaphis Corp., 6.50% Cv. Sub. Debs., 1/1/00 (2) ............ 12/22/92 $100.00 $122.50 2 Transferable under Rule 144A of the Act. See accompanying Notes to Financial Statements.
Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds - Growth Fund
Face Market Amount Repurchase Agreements --12.9% Value-Note 1 $ 7,300,000 Repurchase agreement with J.P. Morgan Securities, Inc., 3.15%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Bills, 2.93%, 2/3/94, with a value of $7,454,315 (Cost $7,300,000) ............................... $ 7,300,000 Shares Common Stocks --86.2% Basic Materials --1.4% Chemicals --0.9% 7,000 Great Lakes Chemical Corp. ................................... 522,375 Chemicals: Diversified --0.5% 6,000 FMC Corp. * .................................................. 282,750 Consumer Cyclicals --15.3% Auto Parts: After Market --1.3% 15,000 Goodyear Tire & Rubber Co. ................................... 686,250 2,700 SPX Corp. .................................................... 47,925 734,175 Automobiles --1.0% 13,000 Harley-Davidson, Inc. ........................................ 573,625 Broadcast Media --1.6% 12,000 Multimedia, Inc. * ........................................... 411,000 17,000 Tele-Communications, Inc., Cl. A * ........................... 514,250 925,250 Entertainment --1.1% 16,000 King World Productions, Inc. * ............................... 614,000 Leisure Time --1.1% 7,000 Caesar's World, Inc. * ....................................... 373,625 8,000 International Game Technology ................................ 236,000 609,625 Publishing --0.2% 4,000 Marvel Entertainment Group, Inc. * ........................... 109,000 Restaurants --1.6% 4,500 McDonald's Corp. ............................................. 256,500 28,000 Shoney's, Inc. * ............................................. 647,500 904,000 Retail: Specialty --5.5% 14,000 Blockbuster Entertainment Corp. .............................. 428,750 18,000 Circuit City Stores, Inc. .................................... 391,500 17,000 CML Group, Inc. .............................................. 401,620 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Growth Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Cyclicals (Continued) Retail: Specialty (Continued) 14,000 Home Depot, Inc. (The) ....................................... $ 553,000 23,000 Michaels Stores, Inc. * ...................................... 822,250 8,000 Pier 1 Imports, Inc. ......................................... 78,000 7,000 QVC Network, Inc. * .......................................... 274,750 14,600 Service Merchandise Co., Inc. * .............................. 146,000 3,095,870 Retail Stores: General Merchandise Chains --0.7% 5,000 Mac Frugal's Bargains Close-Outs, Inc. *...................... 98,125 11,000 Wal-Mart Stores, Inc. ........................................ 275,000 373,125 Shoes --0.1% 3,000 Reebok International Ltd. .................................... 90,000 Textiles: Apparel Manufacturers --0.6% 14,000 Fruit of the Loom, Inc., Cl. A * ............................. 337,750 Toys --0.5% 11,000 Mattel, Inc. ................................................. 303,875 Consumer Non-Cyclicals --19.0% Beverages: Soft Drinks --1.4% 10,000 Coca-Cola Co. (The) .......................................... 446,250 9,000 PepsiCo, Inc. ................................................ 367,875 814,125 Drugs --3.0% 6,500 Forest Laboratories, Inc. * .................................. 309,563 4,000 Marion Merrell Dow, Inc. ..................................... 72,000 7,500 Merck & Co., Inc. ............................................ 257,813 3,000 Mylan Laboratories, Inc. ..................................... 76,125 5,000 Pfizer, Inc. ................................................. 345,000 6,000 Schering-Plough Corp. ........................................ 411,000 4,000 Syntex Corp. ................................................. 63,500 6,000 Upjohn Co. ................................................... 174,750 1,709,751 Food Processing --0.9% 4,000 ConAgra, Inc. ................................................ 105,500 3,000 General Mills, Inc. .......................................... 182,250 6,000 Heinz (H.J.) Co. ............................................. 215,250 1,000 Tyson Foods, Inc., Cl. A ..................................... 24,000 527,000 Healthcare: Diversified --3.6% 13,000 Abbott Laboratories .......................................... 383,500 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Growth Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Non-Cyclicals (Continued) Healthcare: Diversified (Continued) 4,500 American Home Products Corp. ................................. $ 291,375 4,500 Bristol-Myers Squibb Co. ..................................... 261,563 16,500 IVAX Corp. ................................................... 474,375 6,000 Johnson & Johnson ............................................ 268,500 4,000 Smithkline Beecham PLC, ADR .................................. 109,500 4,000 Warner-Lambert Co. ........................................... 270,000 2,058,813 Healthcare: Miscellaneous --3.9% 3,500 Amgen, Inc. * ................................................ 173,250 8,000 HealthCare COMPARE Corp. * ................................... 197,000 21,000 National Health Laboratories, Inc. ........................... 299,250 11,000 United Healthcare Corp. ...................................... 834,625 12,000 U.S. Healthcare, Inc. ........................................ 691,500 Hospital Management --0.4% 4,000 Healthtrust, Inc.-The Hospital Co. * ......................... 106,500 8,000 Novacare, Inc. * ............................................. 122,000 228,500 Household Products --1.2% 6,000 Colgate-Palmolive Co. ........................................ 374,250 5,500 Procter & Gamble Co. ......................................... 313,500 Medical Products --3.3% 13,000 Cordis Corp. * ............................................... 641,875 6,000 Medtronic, Inc. .............................................. 492,750 3,500 Rhone-Poulenc Rorer, Inc. .................................... 127,750 12,000 Sci-Med Life Systems, Inc. * ................................. 471,000 5,000 St. Jude Medical, Inc. ....................................... 132,500 1,865,875 Tobacco --1.3% 6,000 American Brands, Inc. ........................................ 199,500 5,500 Philip Morris Cos., Inc. ..................................... 306,625 6,000 UST, Inc. .................................................... 166,500 672,625 Energy --3.7% Coal --.5% 10,000 Pittston Co. ................................................. 288,750 Oil: Exploration and Production --0.5% 52,000 Maxus Energy Corp. * ......................................... 286,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Growth Fund Market Shares Common Stocks (Continued) Value-Note 1 Energy (Continued) Oil: Integrated Domestic --0.7% 3,500 Pennzoil Co. ................................................. $ 186,375 15,500 Quaker State Corp. ........................................... 207,313 393,688 Oil: Integrated International --1.1% 3,000 Chevron Corp. ................................................ 261,375 3,500 Royal Dutch Petroleum Co. .................................... 365,313 626,688 Oil Well Services and Equipment --0.9% 15,000 McDermott International, Inc. ................................ 397,500 10,000 Western Co. of North America * ............................... 128,750 526,250 Financial --23.3% Financial Services: Miscellaneous --9.7% 17,000 Advanta Corp., Cl. A ......................................... 565,250 25,994 Bear Stearns Cos., Inc. (The) ................................ 568,619 22,000 Countrywide Credit Industries, Inc. * ........................ 552,750 8,250 Credit Local de France ....................................... 684,368 5,700 Federal National Mortgage Assn. .............................. 447,450 16,000 Green Tree Financial Corp. ................................... 768,000 5,000 MBIA, Inc. ................................................... 314,375 19,500 PaineWebber Group, Inc. ...................................... 526,500 20,000 Primerica Corp. .............................................. 777,500 7,000 Student Loan Marketing Assn. ................................. 314,125 5,518,937 Insurance: Life --2.4% 11,250 AFLAC, Inc. .................................................. 320,625 14,000 Conseco, Inc. ................................................ 777,000 6,000 Torchmark Corp. .............................................. 270,000 Insurance: Multi-Line --0.6% 12,000 CCP Insurance, Inc. .......................................... 334,500 Insurance: Property and Casualty --1.8% 15,200 Progressive Corp. ............................................ 615,600 29,000 USF&G Corp. .................................................. 427,750 1,043,350 Insurance Brokers --0.2% 5,000 Alexander & Alexander Services, Inc. ......................... 97,500 Major Banks: Other --1.7% 21,000 Bank of Boston Corp. ......................................... 483,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Growth Fund Market Shares Common Stocks (Continued) Value-Note 1 Financial (Continued) Major Banks: Other (Continued) 9,000 Mellon Bank Corp. ............................................ $ 477,000 960,000 Major Banks: Regional --6.5% 11,625 BANC ONE CORP. ............................................... 454,828 5,000 First Fidelity Bancorporation ................................ 227,500 9,000 First Interstate Bancorp. .................................... 577,125 15,000 KeyCorp ...................................................... 530,625 19,000 Midlantic Corp. * ............................................ 484,500 18,000 Shawmut National Corp. ....................................... 391,500 20,000 Signet Banking Corp. ......................................... 695,000 9,000 UJB Financial Corp. .......................................... 213,750 4,000 Washington Mutual Savings Bank of Seattle .................... 96,500 3,671,328 Money Center Banks --.4% 6,000 Chase Manhattan Corp. ........................................ 203,250 Industrial --3.1% Commercial Services --0.5% 30,000 ADT Ltd., ADR * .............................................. 270,000 Electrical Equipment --1.2% 6,000 Amphenol Corp., Cl. A * ...................................... 99,000 5,500 General Electric Co. ......................................... 576,813 675,813 Machine Tools --0.1% 2,000 Cincinnati Milacron, Inc. .................................... 44,000 Machinery: Diversified --0.8% 11,000 Varity Corp. * ............................................... 492,250 Transportation: Miscellaneous --0.5% 5,000 American President Cos. Ltd. ................................. 286,250 Technology --20.0% Aerospace/Defense --0.4% 6,000 Northrop Corp. ............................................... 224,250 Computer Software and Services --5.5% 5,000 BMC Software, Inc. * ......................................... 240,000 14,600 Ceridian Corp. * ............................................. 277,400 16,000 Computer Associates International, Inc. ..................... 640,000 2,000 Computer Sciences Corp. * .................................... 199,000 26,000 EMC Corp. * .................................................. 429,000 8,000 General Motors Corp., Cl. E .................................. 234,000 6,200 Microsoft Corp. * ............................................ 499,875 20,000 Novell, Inc. * ............................................... 415,000 4,000 Oracle Systems Corp. * ....................................... 115,000 10,000 SHL Systemhouse, Inc. * ...................................... 72,500 3,121,775 Statement of Investments (Continued) Oppenheimer Variable Account Funds - Growth Fund Market Shares Common Stocks (Continued) Value-Note 1 Technology (Continued) Computer Systems --6.8% 7,400 Applied Magnetics Corp. * .................................... $ 40,700 13,000 AST Research, Inc. * ......................................... 295,750 8,000 Cabletron Systems, Inc. * .................................... 900,000 12,500 Cisco Systems, Inc. * ........................................ 807,813 3,500 Compaq Computer Corp. * ...................................... 259,000 15,000 QMS, Inc. * .................................................. 135,000 7,000 Scitex Corp. Ltd. * .......................................... 173,250 20,000 Seagate Technology * ......................................... 475,000 9,000 Synoptics Communications, Inc. * ............................. 250,875 40,500 Unisys Corp. * ............................................... 511,313 3,848,701 Electronics: Defense --0.6% 8,500 General Motors Corp., Cl. H .................................. 330,438 Electronics: Instrumentation --2.3% 32,000 American Power Conversion Corp. * ............................ 760,000 30,000 Belden, Inc. * ............................................... 558,750 1,318,750 Electronics: Semiconductors --1.6% 12,000 Intel Corp. .................................................. 744,000 10,000 National Semiconductor Co. ................................... 161,250 905,250 Telecommunications --2.8% 4,800 American Telephone & Telegraph Co. ........................... 252,000 20,300 PacTel Corp. * ............................................... 504,963 12,000 Telefonos de Mexico SA, Sponsored ADR ........................ 810,000 1,566,963 Utilities --0.4% Electric Cos. --0.1% 4,000 Niagara Mohawk Power Corp. ................................... 81,000 Telephone (New) --0.3% 2,500 BellSouth Corp. .............................................. 144,688 Total Common Stocks (Cost $39,727,358) ....................... 48,863,478 Total Investments, at Value (Cost $47,027,358) ..................... 99.1% $56,163,478 Other Assets Net of Liabilities .................................... 0.9 537,570 Net Assets ......................................................... 100.0% $56,701,048 *Non-income producing security. See accompanying Notes to Financial Statements.
Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds-Multiple Strategies Fund
Face Market Amount Repurchase Agreements--10.0% Value-Note 1 $ 25,000,000 Repurchase agreement with First Chicago Markets, 3.125%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Bills, 3.875%, 3/31/95, with a value of $25,506,287 (Cost $25,000,000) .................................. $ 25,000,000 Long-Term Government Obligations--25.9% 1,678,950 Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas, Series I, 3.1875%, 4/1/01 (2)(3) ........................ 1,458,977 + 1,400,000 Australia (Government of) Bonds, 12%, 5/15/06 .................... 1,298,435 Canada (Government of) Bonds: + 3,000,000 9.75%, 12/1/01 .................................................. 2,723,565 + 1,500,000 8.50%, 4/1/02 ................................................... 1,277,379 Government National Mortgage Assn.: 2,450,763 8%, 7/15/22 ..................................................... 2,583,569 4,500,662 8%, 4/15/23 ..................................................... 4,748,199 + 3,600,000 Queensland (Government of) Development Authority Global Transferable Registered Nts., 10.50%, 5/15/03 ............ 3,068,564 Spain (Kingdom of) Bonds: +175,000,000 13.45%, 4/15/96 ................................................. 1,363,388 + 50,000,000 11.45%, 8/30/98 ................................................. 398,915 2,000,000 United Mexican States Gtd. Cv. Bonds, Series B, 6.25%, 12/31/19 ........................................................ 1,671,250 U.S. Treasury Bonds, STRIPS: 3,900,000 0%, 8/15/02 ..................................................... 2,359,086 2,500,000 0%, 8/15/03 ..................................................... 1,409,322 U.S. Treasury Nts.: 12,500,000 7.625%, 5/31/96 ................................................. 13,425,749 10,300,000 6.75%, 5/31/97 .................................................. 10,946,942 9,000,000 9.25%, 8/15/98 .................................................. 10,513,080 5,000,000 6.375%, 8/15/02 ................................................. 5,215,600 500,000 Venezuela (Republic of) Collateralized Par Bonds, Series W-A, 6.75%, 3/31/20 ............................................. 372,188 Total Long-Term Government Obligations (Cost $60,924,336) ............................................. 64,834,208 Corporate Bonds and Notes--14.4% Adelphia Communications Corp.: 500,000 10.25% Sr. Debs., 7/15/00 (4) ................................... 530,000 500,000 12.50% Sr. Nts., 5/15/02 ........................................ 582,500 500,000 9.875% Sr. Debs., 3/1/05 ....................................... 552,500 750,000 Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05 (3) .................................................... 752,110 500,000 American Medical International, Inc., 13.50% Sr. Sub. Nts., 8/15/01 ................................................... 585,625 500,000 American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01 ............ 525,625 800,000 Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 ..................... 820,000 Armco, Inc.: 351,000 13.50% Sr. Nts., 6/15/94 ........................................ 360,214 200,000 8.50% SF Debs., 9/1/01 ......................................... 195,000 400,000 Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20 (2) ........ 615,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Face Market Amount Corporate Bonds and Notes (Continued) Value-Note 1 $ 475,000 Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 .......................... $ 484,500 500,000 Baldwin Co., 10.375% Sr. Nts., 8/1/03 (4)......................... 482,500 1,000,000 Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05 (1) ............................................ 555,000 500,000 Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 ............................................... 520,000 500,000 Calmar, Inc., 12% Sr. Sec. Nts., 12/15/97 ........................ 500,000 1,000,000 Card Establishment Services, Inc., 10% Sr. Sub Nts., 10/1/03 (4) ..................................................... 1,045,000 500,000 Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 .............. 497,500 500,000 Chrysler Financial Corp., 13.25% Sr. Nts., 10/15/99 .............. 667,690 500,000 Coastal Corp., 11.75% Sr. Debs., 6/15/06 ......................... 580,000 1,000,000 Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., 5/27/98 .......... 647,500 600,000 Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 ........... 672,000 250,000 Di Giorgio Corp., 12% Sr. Nts., 2/15/03 .......................... 271,875 500,000 Envirosource, Inc., 9.75% Sr. Nts., 6/15/03 ...................... 487,500 875,000 Epic Holdings, Inc., 0%/12% Sr. Def. Cpn. Nts., 3/15/02 (1) ..................................................... 638,750 491,176 Epic Properties, Inc., 11.50% Gtd. Fst. Priority Mtg. Nts., Cl. B-2, 7/15/01 .......................................... 552,574 750,000 Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 ....................... 796,875 750,000 Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 .............. 776,250 First Chicago Corp.: 250,000 9% Sub. Nts., 6/15/99 ........................................... 285,850 250,000 11.25% Sub. Nts., 2/20/01 ....................................... 321,391 400,000 Flagstar Corp., 10.875% Sr. Nts., 12/1/02 ........................ 415,000 Foodmaker, Inc.: 500,000 14.25% Sr. Sub. Nts., 5/15/98 ................................... 536,875 500,000 9.25% Sr. Nts., 3/1/99 .......................................... 511,250 500,000 Gaylord Container Corp., 11.50% Sr. Sub. Disc. Debs., 5/15/01 ......................................................... 535,000 500,000 GNF Corp., 10.625% Gtd. Fst. Mtg. Nts., 4/1/03 ................... 482,500 400,000 Grand Union Co., 11.25% Sr. Nts., 7/15/00 ........................ 422,000 500,000 Harmon International Industries, Inc. 12% Sr. Sub. Nts., 8/1/02 .......................................................... 560,000 Harris Chemical North America, Inc.: 1,000,000 10.25% Sr. Sec. Disc. Nts., 7/15/01 ............................. 858,750 600,000 10.75% Sr. Sub. Nts., 10/15/03 .................................. 634,500 400,000 Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 ................ 366,000 800,000 International Cabletel, Inc., 10.875% Sr. Def. Cpn. Nts., 10/15/03 ........................................................ 512,000 750,000 Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 ................ 796,875 500,000 Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03 ..................... 480,625 Mesa Capital Corp.: 772,000 0%/12.75% Sec. Disc. Nts., 6/30/98 (1) .......................... 656,200 40,000 0%/12.75% Cv. Disc. Nts. 6/30/98 (1)............................. 57,100 900,000 Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03 .................... 814,500 500,000 NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 ............................ 528,750 500,000 Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 .................. 533,125 925,000 Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 ...................... 959,687 Panamsat LP/Panamsat Capital Corp.: 500,000 9.75% Sr. Sec. Nts., 8/1/00 ..................................... 531,250 250,000 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (1) ...................... 167,500 500,000 Quantum Chemical Corp., 10.375% Fst. Mtg. Nts., 6/1/03 .......................................................... 609,605 800,000 Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., 3/15/98 .......... 412,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Face Market Amount Corporate Bonds and Notes (Continued) Value-Note 1 RJR Nabisco, Inc.: $ 400,000 10.50% Sr. Nts., 4/15/98 ........................................ $ 442,000 136,000 15% Sub. Debs., 5/15/01 ......................................... 149,260 500,000 8.625% Medium-Term Nts., 12/1/02 ................................ 492,149 500,000 SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05 ................. 520,000 500,000 Sealed Power Technologies LP, 14.50% Sr. Sub. Debs., 5/15/99 ......................................................... 545,000 750,000 Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 .............. 761,250 300,000 Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 ....... 330,000 1,000,000 Talley Industries, Inc., 12.25% Sr. Disc. Debs., 10/15/05 ........ 585,000 500,000 Time Warner, Inc./Time Warner Entertainment LP, 10.15% Sr. Nts., 5/1/12 ................................................ 620,000 500,000 Tiphook Finance Corp., 10.75% Sr. Gtd. Nts., 11/1/02 ............. 442,500 500,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 .................... 610,000 Unisys Corp.: 500,000 15% Credit Sensitive Nts., 7/1/97 ............................... 570,000 500,000 9.75% Sr. Nts., 9/15/16 ......................................... 510,000 USG Corp.: 500,000 10.25% Sr. Sec. Nts., 12/15/02 .................................. 515,000 300,000 8.75% Debs., 3/1/17 ............................................. 277,500 Total Corporate Bonds and Notes (Cost $ 34,881,201) .............. 36,052,080 Municipal Bonds--0.2% 500,000 Port of Portland, Oregon Special Obligation Taxable Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 (Cost $500,000) ................................................. 549,472 Units Rights, Warrants and Certificates--0.0% 16,412 Gaylord Container Corp. Wts., Exp. 7/96 (Cost $36,927) .................................................. 59,494 Shares Preferred Stocks --0.9.% 3,000 Alumax, Inc., $4.00 Cv., Series A ................................ 295,500 26,000 Chiquita Brands International, Inc., $1.28 Depositary Shares * ............................................ 354,250 6,000 Cyprus Amax Minerals Co., $4.00 Cv., Series A .................... 390,000 20 Dairy Farm International Holdings Ltd., $65.00 Cv. (4) ........... 30,800 10,000 Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C* .... 535,000 20,000 K-III Communications Corp., Sr. Exch. ............................ 552,500 10,000 Liposome Co., Inc. (The), $1.9375 Cum. Cv. Exch. Depositary Shares, Series A .................................... 187,500 Total Preferred Stocks (Cost $2,137,265) ......................... 2,345,550 Common Stocks --48.1% Basic Materials --3.9% Chemicals --1.4% 10,000 Air Products and Chemicals, Inc. ................................. 442,500 16,000 ARCO Chemical Corp. .............................................. 692,000 40,000 biosys * ......................................................... 230,000 8,500 Dow Chemical Co. (The) ........................................... 482,375 31,000 Hauser Chemical Research, Inc. * ................................. 248,000 29,700 Praxair, Inc. .................................................... 493,763 32,500 Sybron Chemical Industries, Inc. * ............................... 784,062 3,372,700 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Basic Materials (Continued) Chemicals: Diversified--0.4% 4,850 Bayer AG, ADR .................................................... $ 1,023,350 Chemicals: Specialty --0.1% 750 Goldschmidt (T.H.) AG ............................................ 300,167 Gold--0.1% 85,000 Arimetco International, Inc. * ................................... 118,769 Metals: Miscellaneous --1.2% 60,500 Brush Wellman, Inc. .............................................. 862,125 48,100 Custom Chrome, Inc. * ............................................ 1,070,225 22,700 Inco Ltd. ........................................................ 610,063 11,000 Phelps Dodge Corp. (5) ........................................... 536,250 3,078,663 Paper and Forest Products--0.2% 30,000 Kimberly Clark de Mexico, Series A * ............................. 562,138 Steel --0.5% 20,000 Allegheny Ludlum Corp. ........................................... 477,500 20,600 Inland Steel Industries, Inc. * .................................. 682,375 1,159,875 Consumer Cyclicals --10.0% Auto Parts: After Market--0.4% 30,000 Excel Industries, Inc. ........................................... 551,250 45,000 Hi-Lo Automotive, Inc. * ......................................... 444,375 995,625 Broadcast Media --1.5% 1,000 Capital Cities/ABC, Inc. ......................................... 619,500 49,500 Comcast Corp., Cl. A Special ..................................... 1,782,000 12,800 Grupo Televisa SA, ADS (4) ....................................... 896,000 42,000 SFX Broadcasting, Inc., Cl. A * .................................. 535,500 3,833,000 Entertainment --1.1% 20,000 Disney (Walt) Co. (5) ............................................ 852,500 19,000 King World Productions, Inc. * (5) ............................... 729,125 7,000 Paramount Communications, Inc. (5) ............................... 541,625 21,000 WMS Industries, Inc. * (5) ....................................... 603,750 2,727,000 Home Building --0.1% 50,000 Miles Homes, Inc. * .............................................. 300,000 Household Furnishings and Appliances--0.4% 50,000 Chromcraft Revington, Inc. * ..................................... 1,100,000 Leisure Time --0.9% 13,600 Caesar's World, Inc. * ........................................... 725,900 10,500 Eastman Kodak Co. * .............................................. 588,000 35,000 Funco, Inc. * .................................................... 525,000 17,000 International Game Technology .................................... 501,500 2,340,400 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Cyclicals (Continued) Publishing --1.2% 40,000 Bowne & Co., Inc. ................................................ $ 870,000 8,500 McGraw-Hill, Inc. ................................................ 574,813 20,000 Time Warner, Inc. ................................................ 885,000 10,167 Wolters Kluwer NV ................................................ 642,282 2,972,095 Restaurants --0.4% 79,000 Quantum Restaurant Group, Inc. ................................... 967,750 Retail Stores: General Merchandise Chains --0.3% 8,000 Centros Comerciales Pryca ........................................ 105,790 30,000 Price/Costco, Inc. * ............................................. 577,500 683,290 Retail: Specialty --1.5% 15,300 Blockbuster Entertainment Corp. (5) .............................. 468,562 4,086 Castorama Dubois Investissements LP .............................. 610,357 22,000 CML Group, Inc. .................................................. 519,750 40,000 Inacom Corp. * ................................................... 540,000 30,000 Service Merchandise Co., Inc. * .................................. 300,000 38,700 Venture Stores, Inc. ............................................. 904,613 38,000 Waban, Inc., * ................................................... 517,750 3,861,032 Shoes --0.7% 64,000 Baker (J.), Inc. ................................................. 1,120,000 43,000 Justin Industries, Inc. .......................................... 634,250 1,754,250 Textiles: Apparel Manufacturers --0.8% 30,000 Authentic Fitness Corp. * ........................................ 843,750 21,000 Fruit of the Loom, Inc., Cl. A * ................................. 506,625 20,000 Warnaco Group, Inc. (The), Cl. A * ............................... 607,500 1,957,875 Toys --0.7% 47,000 Mattel, Inc. ..................................................... 1,298,375 7,000 Nintendo Co. ..................................................... 450,338 1,748,713 Consumer Non-Cyclicals--8.6% Beverages: Alcoholic --0.3% 100,000 Guiness PLC ...................................................... 706,461 Beverages: Soft Drinks--0.3% 51,700 Whitman Corp. .................................................... 840,125 Cosmetics --0.7% 24,000 Avon Products, Inc. (5) .......................................... 1,167,000 30,000 Neutrogena Corp. ................................................. 615,000 1,782,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Non-Cyclicals (Continued) Drugs --1.1% 22,000 Agouron Pharmaceuticals, Inc. * .................................. $ 258,500 15,500 Astra AB Free, Series A .......................................... 353,319 950 Ciba-Geigy AG .................................................... 575,746 13,700 Lilly (Eli) & Co. ................................................ 813,438 300 Sandoz AG ........................................................ 835,337 2,836,340 Food Processing --0.8% 1,541 Chiquita Brands International, Inc. .............................. 17,722 967,000 CP Pokphand Co. .................................................. 425,468 23,600 Nestle SA, Sponsored ADR ......................................... 1,020,700 40,000 Sanfilippo (John B.) & Son, Inc. ................................. 580,000 2,043,890 Healthcare: Diversified--1.3% 18,000 Abbott Laboratories .............................................. 531,000 16,500 Bristol-Myers Squibb Co. ......................................... 959,063 23,000 Carter-Wallace, Inc. ............................................. 491,625 1,025 Schering AG ...................................................... 669,941 7,000 Warner-Lambert Co. ............................................... 472,500 3,124,129 Healthcare: Miscellaneous--2.5% 9,000 Amgen, Inc. * (5) ................................................ 445,500 12,000 Biogen, Inc. * ................................................... 478,500 6,000 Chiron Corp. * ................................................... 504,000 50,000 FHP International Corp. * (5) .................................... 1,350,000 20,100 Genzyme Corp. * .................................................. 552,750 45,785 Manor Care, Inc. ................................................. 1,116,009 18,000 Matrix Pharmaceutical, Inc. * .................................... 189,000 14,000 Protein Design Labs, Inc. * ...................................... 339,500 23,400 U.S. Healthcare, Inc. (5) ........................................ 1,348,425 6,323,684 Hospital Management --0.2% 26,000 Medical Care America, Inc. * (5) ................................. 594,750 Medical Products --0.8% 18,500 Bard (C.R.), Inc. (5) ............................................ 467,125 9,000 Medtronic, Inc. (5) .............................................. 739,125 15,000 Molecular Dynamics, Inc. * ....................................... 176,250 20,000 Nellcor, Inc. * .................................................. 495,000 1,877,500 Retail Stores: Food Chains--0.3% 164,026 Dairy Farm International Holdings Ltd. ........................... 326,885 17,900 Giant Food, Inc., Cl. A .......................................... 460,925 787,810 Tobacco --0.3% 13,700 Philip Morris Cos., Inc. ......................................... 763,775 Energy --2.6% Coal --0.3% 22,000 Ashland Coal, Inc. ............................................... 665,500 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Energy (Continued) Oil: Exploration and Production--0.2% 29,600 Oryx Energy Co. .................................................. $ 510,600 Oil and Gas Drilling--0.2% 60,500 Santa Fe Energy Resources, Inc. .................................. 544,500 Oil: Integrated Domestic--0.7% 15,000 Ashland Oil, Inc. ................................................ 511,875 7,000 Atlantic Richfield Co. ........................................... 736,750 17,000 Unocal Corp. (5) ................................................. 473,875 1,722,500 Oil: Integrated International--0.9% 7,700 Amoco Corp. ...................................................... 407,137 10,000 Royal Dutch Petroleum Co. ........................................ 1,043,750 12,000 Saga Petroleum AS, Cl. A ......................................... 119,667 19,000 Saga Petroleum AS, Cl. B ......................................... 184,421 15,373 Total SA, Sponsored ADR .......................................... 416,993 2,171,968 Oil Well Services and Equipment--0.3% 12,400 McDermott International, Inc. (5) ................................ 328,600 52,700 Tuboscope Vetco International Corp. * ............................ 322,787 651,387 Financial --5.5% Financial Services: Miscellaneous--1.9% 25,200 Bear Stearns Cos., Inc. (The) .................................... 551,250 96,100 Catellus Development Corp. * ..................................... 744,775 15,000 Dean Witter, Discover & Co. (5) .................................. 519,375 17,800 Merrill Lynch & Co., Inc. ........................................ 747,600 200,000 Peregrine Investment Holdings Ltd. ............................... 491,752 35,000 Plaza Home Mortgage Corp. * ...................................... 293,125 20,000 Salomon, Inc. (5) ................................................ 952,500 30,000 Santa Anita Realty Enterprises, Inc. (4) ......................... 521,250 4,821,627 Insurance: Life --0.5% 26,000 Bankers Life Holding Corp. ....................................... 559,000 27,000 First Colony Corp. ............................................... 685,125 1,244,125 Insurance: Multi-Line--0.6% 7,000 American International Group, Inc. ............................... 614,250 29,600 American Re Corp. * .............................................. 839,900 1,454,150 Insurance: Property and Casualty--0.2% 6,000 Loews Corp. * .................................................... 558,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Financial (Continued) Major Banks: Other --0.5% 13,300 BankAmerica Corp. ................................................ $ 616,788 1,325 Deutsche Bank AG, ADR ............................................ 679,062 1,295,850 Major Banks: Regional--0.5% 24,200 NationsBank Corp. ................................................ 1,185,800 Money Center Banks --1.0% 13,000 Bank of New York Co., Inc. (The) (5) ............................. 741,000 12,000 Bankers Trust New York Corp. ..................................... 949,500 18,700 Chemical Banking Corp. ........................................... 750,337 Savings and Loans/Holding Cos.--0.3% 17,000 Golden West Financial Corp. ...................................... 663,000 Industrial --6.0% Building Materials Group--0.6% 15,000 Masco Corp. ...................................................... 555,000 21,000 Owens-Corning Fiberglas Corp. * (5) .............................. 931,875 3,200 Thomas Industries, Inc. .......................................... 42,000 1,528,875 Commercial Services --0.3% 65,000 Mail Boxes Etc. * ................................................ 771,875 Conglomerates --0.4% 17,500 Tenneco, Inc. .................................................... 920,938 Electrical Equipment --1.1% 80,000 Amphenol Corp., Cl. A * .......................................... 1,320,000 10,000 ASEA AB, Sponsored ADR ........................................... 710,000 8,000 General Electric Co. ............................................. 839,000 2,869,000 Engineering and Construction--0.7% 25,000 Foster Wheeler Corp. ............................................. 837,500 44,150 Huarte SA ........................................................ 528,224 35,000 Insituform Mid-America, Inc., Cl. A .............................. 490,000 1,855,724 Heavy Duty Trucks and Parts--0.2% 24,000 Spartan Motors, Inc. (5) ......................................... 408,000 Machine Tools --0.1% 7,000 FANUC Ltd. ....................................................... 230,814 Machinery: Diversified--0.3% 45,000 Cognex Corp. * ................................................... 663,750 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Industrial (Continued) Manufacturing-Diversified Industrials--0.9% 65,000 Instrument Systems Corp. * ....................................... $ 576,875 3,287 Mannesmann AG .................................................... 794,998 10,000 Siemens AG, ADR .................................................. 913,750 2,285,623 Pollution Control --0.3% 28,400 WMX Technologies, Inc. ........................................... 749,050 Railroads --0.4% 15,400 Burlington Northern, Inc. (5) .................................... 891,275 Transportation: Miscellaneous--0.7% 10 Dampskibsselskabet Svendborg, Cl. B .............................. 275,205 105,000 OMI Corp. ........................................................ 721,875 40,000 Stolt-Nielsen SA ................................................. 670,000 1,667,080 Technology --9.4% Aerospace/Defense --1.0% 9,000 Allied-Signal, Inc. .............................................. 711,000 6,400 General Dynamics Corp. (5) ....................................... 590,400 4,000 McDonnell Douglas Corp. .......................................... 428,000 50,000 Methode Electronics, Inc., Cl. A ................................. 718,750 2,448,150 Communication: Equipment/Manufacturers--0.2% 7,500 QUALCOMM, Inc. * (5) ............................................. 397,500 Computer Software and Services--2.8% 11,000 BMC Software, Inc. ............................................... 528,000 12,000 Computer Associates International, Inc. .......................... 480,000 23,000 LEGENT Corp. * ................................................... 520,375 26,500 Lotus Development Corp. * (5) .................................... 1,457,500 46,000 Marcam Corp. * ................................................... 448,500 6,300 Microsoft Corp. .................................................. 507,938 50,000 Network General Corp. * (5) ...................................... 893,750 28,500 Novell, Inc. ..................................................... 591,375 500 Sap AG, Preference ............................................... 465,007 50,000 Structural Dynamics Research Corp. ............................... 862,500 45,000 Wild River Systems * ............................................. 286,875 7,041,820 Computer Systems --1.5% 11,000 International Business Machines Corp. * .......................... 621,500 70,000 Micropolis Corp. * ............................................... 490,000 60,000 Radius, Inc. * ................................................... 457,500 25,000 Seagate Technology * (5) ......................................... 593,750 31,700 Synoptics Communications, Inc. ................................... 883,637 59,400 Tandem Computers, Inc. ........................................... 645,975 3,692,362 Electronics: Defense --0.2% 115,000 CAE, Inc. * ...................................................... 618,882 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund Market Shares Common Stocks (Continued) Value-Note 1 Technology (Continued) Electronics: Instrumentation--0.4% 14,000 Hewlett-Packard Co. (5) .......................................... $ 1,106,000 Electronics: Semiconductors--1.4% 8,000 Cirrus Logic, Inc. * (5) ......................................... 296,000 32,800 Intel Corp. (5) .................................................. 2,033,600 11,500 Samsung Electronics Co. Ltd., Sponsored GDR * .................... 592,250 12,200 Xilinx, Inc. * (5) ............................................... 582,550 3,504,400 Office Equipment and Supplies--0.4% 10,500 Xerox Corp. (5) .................................................. 938,437 Telecommunications --1.5% 14,500 American Telephone & Telegraph Co. * ............................. 761,250 26,000 MCI Communications Corp. ......................................... 734,500 18,000 NEXTEL Communications, Inc., Cl. A ............................... 670,500 33,900 Rogers Cantel Mobile Communications, Inc., Cl. B, Sub. Vtg. * .......................................................... 915,300 9,000 Telefonos de Mexico SA, Sponsored ADR ............................ 607,500 3,689,050 Utilities --2.1% Electric Cos. --.6% 30,000 Public Service Enterprise Group, Inc. ............................ 960,000 9,400 Verbund Oest Electriz ........................................... 572,057 1,532,057 Natural Gas --0.2% 204,000 Hong Kong & China Gas ............................................ 591,344 Telephone (New) --1.3% 22,000 BCE, Inc. ........................................................ 767,250 25,000 Pacific Telesis Group ............................................ 1,350,000 26,300 US West Communications, Inc. ..................................... 1,206,513 3,323,763 Total Common Stocks (Cost $95,247,361) ........................... 120,192,769 Total Investments, at Value (Cost $218,727,090) ....................... 99.5% 249,033,573 Other Assets Net of Liabilities ....................................... .5 1,256,475 Net Assets ............................................................ 100.0% $250,290,048 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Multiple Strategies Fund + Face amount is reported in foreign currency. * Non-income producing security. 1. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date. 2. Represents the current interest rate for a variable rate security. 3. Interest is paid in kind. 4. The Fund owns securities purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securities, excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines. Restricted and illiquid securities amount to $521,250, or .20% of the Fund's net assets, at December 31, 1993. Valuation Per Acquisition Cost Unit as of Security Date Per Unit December 31, 1993 Adelphia Communications Corp., 10.25% Sr. Debs., 7/15/00 ** ......... 7/21/93 $ 98.80 $ 106.00 Baldwin Co., 10.375% Sr. Nts., 8/1/03 ** ............................ 7/19/93 $ 100.88 $ 96.50 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 ** .... 12/1/93 $ 104.00 $ 104.50 Dairy Farm International Holdings Ltd., $65.00 Cv. ** ............... 4/30/93 $1,000.00 $1,540.00 Grupo Televisa 8/20/92- SA, ADS ** ......................................................... 8/26/92 $ 27.80 $ 70.00 Santa Anita Realty 5/28/93- Enterprises, Inc. .................................................. 11/29/93 $ 17.96 $ 17.38 ** Transferable under Rule 144A of the Act.
Statement of Investments (Continued) Oppenheimer Variable Account Funds - Multiple Strategies Fund 5. Securities with an aggregate market value of $23,979,725 are held to cover outstanding call options, as follows:
Shares Expira- Subject tion Exercise Premium Market Value - to Call Date Price Received Note 1 Amgen, Inc. .......................... 1,500 1/94 $ 50.00 $ 2,205 $ 2,062 Avon Products, Inc. .................. 4,800 4/94 55.00 5,280 4,200 Bank of New York Co., Inc. (The) ..... 2,000 1/94 60.00 5,190 750 Bard (C.R.), Inc. .................... 9,200 1/94 25.00 15,823 7,475 Bard (C.R.), Inc. .................... 9,300 4/94 30.00 13,089 4,650 Blockbuster Entertainment Corp. ...... 5,600 1/94 25.00 5,810 31,500 Blockbuster Entertainment Corp. ...... 5,700 3/94 30.00 6,241 12,825 Blockbuster Entertainment Corp. ...... 4,000 6/94 30.00 12,880 13,000 Burlington Northern, Inc. ............ 1,400 1/94 55.00 6,608 4,200 Burlington Northern, Inc. ............ 1,400 1/94 60.00 3,370 875 Cirrus Logic, Inc. ................... 4,000 3/94 30.00 17,379 31,500 Cirrus Logic, Inc. ................... 4,000 3/94 35.00 20,379 17,500 Dean Witter, Discover & Co. .......... 7,500 1/94 40.00 20,400 469 Dean Witter, Discover & Co. .......... 7,500 1/94 45.00 10,087 469 Disney (Walt) Co. .................... 4,000 4/94 40.00 10,380 17,500 FHP International Corp. .............. 5,000 3/94 25.00 20,449 15,625 General Dynamics Corp. ............... 1,600 2/94 95.00 6,744 3,800 Hewlett-Packard Co. .................. 2,800 2/94 85.00 5,929 3,500 Intel, Inc. .......................... 4,000 1/94 65.00 8,380 4,250 Intel, Inc. .......................... 3,000 4/94 70.00 12,285 7,500 King World Productions, Inc. ......... 3,800 2/94 45.00 7,624 3,325 Lotus Development Corp. .............. 4,000 1/94 40.00 18,379 62,000 Lotus Development Corp. .............. 4,000 4/94 50.00 26,879 34,000 Lotus Development Corp. .............. 5,200 4/94 60.00 24,543 15,600 McDermott International, Inc. ........ 6,200 2/94 30.00 11,051 1,550 McDermott International, Inc. ........ 6,200 5/94 35.00 6,045 1,550 Medtronic, Inc. ...................... 1,800 1/94 85.00 3,996 1,800 Medical Care America, Inc. ........... 13,000 4/94 25.00 35,359 22,750 Network General Corp. ................ 16,800 1/94 15.00 28,895 48,300 Network General Corp. ................ 8,400 7/94 20.00 19,697 19,950 Owens-Corning Fiberglas Corp. ........ 4,200 3/94 50.00 8,536 3,150 Paramount Communications, Inc. ....... 2,500 1/94 80.00 7,112 2,969 Paramount Communications, Inc. ....... 2,000 3/94 80.00 11,559 5,000 Paramount Communications, Inc. ....... 2,500 3/94 85.00 4,769 2,500 Phelps Dodge Corp. ................... 5,500 1/94 50.00 11,866 5,156 QUALCOMM, Inc. ....................... 4,000 1/94 50.00 26,379 20,000 QUALCOMM, Inc. ....................... 3,500 1/94 60.00 26,582 1,750 Salomon, Inc. ........................ 5,000 1/94 45.00 16,724 15,000 Salomon, Inc. ........................ 5,000 1/94 50.00 9,225 2,188 Salomon, Inc. ........................ 5,000 4/94 55.00 5,260 3,750 Seagate Technology ................... 12,500 3/94 20.00 40,249 51,562 Spartan Motors, Inc. ................. 4,000 3/94 22.50 9,130 1,500 Unocal Corp. ......................... 1,500 1/94 30.00 5,017 188 Unocal Corp. ......................... 1,500 1/94 35.00 2,017 281 U.S. Healthcare, Inc. ................ 5,700 1/94 55.00 24,616 23,512 WMS Industries, Inc. ................. 5,000 5/94 35.00 17,974 7,500 Xerox Corp. ......................... 2,000 4/94 85.00 5,690 14,000 Xilinx, Inc. ......................... 3,200 3/94 45.00 11,503 18,000 Xilinx, Inc. ......................... 3,200 3/94 50.00 11,104 10,400 Xilinx, Inc. ......................... 3,000 3/94 55.00 8,160 6,000 $ 654,848 $ 588,881 See accompanying Notes to Financial Statements.
Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds-Global Securities Fund
Face Market Amount Repurchase Agreements--14.7% Value-Note 1 $ 14,200,000 Repurchase agreement with First Chicago Capital Markets, 3.125%, dated 12/31/93 and maturing 1/3/94, collateralized by U.S. Treasury Nts., 8.875%, 2/15/99, with a value of $14,501,606 (Cost $14,200,000) .......... $ 14,200,000 Corporate Bonds and Notes--0.9% 300,000 Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99 (2) .................. 389,250 375,000 Scici Ltd., 3.50% Cv. Bonds, 4/1/04 (2) ............................ 499,219 Total Corporate Bonds and Notes (Cost $675,000) .................... 888,469 Units Rights, Warrants and Certificates--1.4% 480,000 China Aerospace International Holdings Ltd. Wts., Exp. 12/95 ............................................ 93,173 100 Ciba-Geigy AG Wts., Exp. 6/95 (1) .................................. 926 30,000 Eurotunnel SA Wts., Exp. 10/95 (1) ................................. 13,515 2,500 RWE AG Wts., Exp. 3/96 (1) ......................................... 319,602 6,980 Shinawatra Computer Communications Co. Ltd. Rts., Exp 1/94 .............................................. 224,059 76,000 Societa Finanziora Telefonica SPA Wts., Exp. 9/94 (1) .............. 641,471 Total Rights, Warrants and Certificates (Cost $809,292) ............ 1,292,746 Shares Common Stocks--86.8% Basic Materials--4.4% Aluminum --0.6% 3,200 Wanderer-Werke AG (1) .............................................. 552,826 Chemicals: Diversified--0.3% 200,000 National Petrochemical Co. (2) ..................................... 258,366 Chemicals: Specialty--0.3% 180,000 Kurnia Kapuas Utama Glue ........................................... 341,030 Metals: Miscellaneous--0.4% 12,000 Hindalco Units ..................................................... 384,000 Paper and Forest Products--1.1% 40,000 Enso-Gutzeit Oy, Cl. A Free (1) .................................... 253,487 200,000 Indah Kiat ......................................................... 272,350 825,000 Rottneros Bruks AB, Free (1) ....................................... 593,863 Steel--1.7% 60,000 Dofasco, Inc. * .................................................... 1,053,656 6,300 Grupo Simec SA, ADR ................................................ 207,900 2,000 Maruichi Malaysia Steel Tube Berhad ................................ 5,085 5,000 Pohang Iron & Steel Co. Ltd. * ..................................... 398,005 Consumer Cyclicals--14.4% Airlines--0.2% 3,500 Vienna International Airport (1) ................................... 166,496 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Cyclicals (Continued) Automobiles--4.6% 20,000 Compania Interamerican de Auto ..................................... $ 1,062,124 20,000 CONSORCIO G GRUPO DINA SA, Sponsored ADR ........................... 557,500 120,000 Mahindra & Mahindra Ltd., GDR ...................................... 1,167,000 7,000 STE Fonciere Financiere ET de Participations SA (1) ................ 397,155 20,000 Volvo AB, Series B Free (1) ........................................ 1,293,303 4,477,082 Broadcast Media--2.2% 375,000 Sistem Televisyen Malaysia Berhad .................................. 1,071,819 100,000 Television Broadcast ............................................... 414,107 3,500 Television Francaise I (1) ......................................... 291,049 10,000 United International Holdings, Inc., Cl. A * ....................... 342,500 2,119,475 Entertainment--0.5% 20,000 Iwerks Entertainment, Inc. * ....................................... 535,000 Hardware and Tools--0.8% 10,000 La Brosse et Dupont (1) ............................................ 740,283 Household Furnishings and Appliances--2.0% 2,500 Moulinex Espana (1) ................................................ 51,076 65,000 Philips Gloeilamp NV (1) ........................................... 1,338,634 15,000 Singer Co. NV (The) * .............................................. 560,625 1,950,335 Publishing--1.5% 500,000 Oriental Press Group ............................................... 446,459 40,000 Roto Smeets de Boer (1) ............................................ 947,341 1,393,800 Retail: Specialty--1.1% 50,000 PT Modern Photo Film Co. ........................................... 619,159 1,000 Vereinigte Baubeschlag (1) ......................................... 423,257 1,042,416 Retail Stores: General Merchandise Chains--1.5% 200,000 Berjaya Singar Berhad .............................................. 527,094 20,000 Modelo Supermercados SA ............................................ 445,953 5,000 Sears Roebuck de Mexico SA, ADR * (2) .............................. 192,500 16,000 Sears Roebuck de Mexico SA * ....................................... 308,049 1,473,596 Consumer Non-Cyclicals--11.0% Beverages: Alcoholic--0.8% 19,000 Jinro Ltd. ......................................................... 461,376 8,000 Remy Cointreau (1) ................................................. 319,756 781,132 Beverages: Soft Drinks--0.9% 8,000 Coca-Cola FEMSA SA de CV * ......................................... 262,000 90,000 Fomento Economico Mexicano SA, Sponsored Cl. B ADR * ........................................ 585,000 847,000 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Consumer Non-Cyclicals (Continued) Drugs--1.5% 40,750 Astra AB, Series A Free (1) ........................................ $ 928,887 12,000 Yuhan Corp. ........................................................ 490,615 1,419,502 Food Processing--2.4% 700,000 Grupo Herdez SA .................................................... 896,973 15,000 Hutamaki OY (1) .................................................... 468,814 170,000 PT Sinar Mass Agro Resources & Technology .......................... 567,673 130,000 United Foods Co., Inc. ............................................. 330,788 2,264,248 Healthcare: Diversified--0.3% 400 Schering AG (1) .................................................... 261,441 Healthcare: Miscellaneous--0.4% 11,000 Genzyme Corp. * .................................................... 302,500 9,104 Plant Genetics Systems International NV * (2) ...................... 140,931 443,431 Hospital Management--2.0% 25,000 Community Psychiatric Centers ...................................... 350,000 120 Rhoen Klinikum AG (1) .............................................. 71,176 660 Rhoen Klinikum AG, Preference (1) .................................. 347,762 300,000 Takare PLC (1) ..................................................... 1,167,326 1,936,264 Household Products--0.5% 90,000 Battery Technologies, Inc. * ....................................... 526,828 Medical Products--0.6% 41,200 Arjo AB * (1) ...................................................... 603,029 Retail Stores: Food Chains--1.6% 105,000 PT Fast Food Indonesia ............................................. 475,320 4,500 Spar Handels AG (1) ................................................ 1,033,957 1,509,277 Energy--5.9% Natural Gas: Processing--0.8% 6,083 Voest-Alpine Eisenbahnsysteme AG (1) ............................... 790,778 Oil: Integrated International--0.7% 11,605 YuKong Ltd. ........................................................ 425,581 8,000 YPF Sociedad Anonima, Sponsored ADR * ............................. 208,000 633,581 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Energy (Continued) Oil and Gas Drilling--3.5% 33,600 Ampolex Ltd. (1) ................................................... $ 126,570 100,000 Compania Naviera Perez Co., Cl. A .................................. 623,446 4,000 Elf Gabon (1) ...................................................... 670,675 15,000 Global Marine, Inc. * .............................................. 61,875 75,000 Morgan Hydrocarbons, Inc. * ........................................ 249,245 30,000 Petroleum Geo-Services AS * (1) .................................... 977,283 33,800 Ross Offshore AS (1) ............................................... 247,179 69,400 Transocean Drilling AS (1) ......................................... 415,245 3,371,518 Oil Well Services and Equipment--0.9% 25,000 Coflexip SA, Sponsored ADR * (1) ................................... 406,250 85,000 Th Loy Industries Berhad ........................................... 495,357 901,607 Financial--13.8% Financial Services: Miscellaneous--6.4% 12,000 BIS SA (1) ......................................................... 495,893 19,070 Central Investment & Finance Corp. ................................. 396,922 10,000 Coryo Securities Corp. ............................................. 218,051 5,000 Credit Local de France (1) ......................................... 414,769 10,000 Hyundai Securities Co. ............................................. 294,865 240,000 Industrial Finance Corp. of Thailand ............................... 582,500 10,000 Korea Investment and Securities .................................... 253,980 230,000 Peregrine Investment Holdings Ltd. ................................. 565,515 10,000 Sangyoug Investment & Securities ................................... 281,236 16,000 Servicios Financieros Quadrum SA, Sponsored ADR .................... 518,000 130,000 Sturge Holdings PLC (1) ............................................ 130,788 1,000,000 Sun Hung Kai and Co. ............................................... 808,802 8 Taipei Fund (2) .................................................... 668,000 14,800 Taiwan Fund, Inc. .................................................. 579,050 6,208,371 Major Banks: Other--7.4% 57,500 Banco de Galicia, Series B ......................................... 579,033 9,000 Banco de Santander SA (1) .......................................... 418,121 34,326 Banco Frances del Rio de la Plata SA ............................... 453,446 4,500 Banco LatinoAmericano de Exportaciones SA, Cl. E ................... 204,188 100,000 Commonwealth Bank of Australia ..................................... 648,189 55,000 Den Norske Bank, Cl. A Free (1) .................................... 140,775 80,000 Grupo Financiero Bancomer, Series C * .............................. 168,448 24,000 Grupo Financiero Bancomer, Series L ................................ 50,534 40,000 Korea First Bank ................................................... 594,685 370,000 PT Panin Bank (2) .................................................. 961,737 17,080 Shin Han Bank Ltd. ................................................. 287,788 100,000 Skandinaviska Enskilda Banken Group (1) ............................ 677,844 17,130 Standard Chartered Bank PLC (1) .................................... 314,770 57,500 Svenska Handelsbanken Inc., Cl. A (1) .............................. 779,521 80,000 Turkiye Garanti Bankasi AS, Sponsored ADR * (2) .................... 560,000 1,000 Verwalt & Privat-Bank AG-PC (1) .................................... 235,686 7,074,765 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Industrial--22.6% Building Materials Group--.9% 10,000 Internacional de Ceramica SA, Series B ADR * (2) ................... $ 321,958 25,000 Internacional de Ceramica SA, Series B ............................. 160,979 90,000 Sungei Way Holdings ................................................ 397,547 880,484 Capital Goods--0.2% 90,000 Ceramicas Carabobo CA, Sponsored Series B ADR * ......................................... 194,940 Commercial Services--0.6% 100,000 PT Intraco Penta ................................................... 408,878 10,000 Serco Group (1) .................................................... 189,080 Conglomerates--4.0% 100,000 Brambles Industries Ltd. ........................................... 894,569 1,258 Compagnie Generale des Eaux (1) .................................... 622,768 30,000 Grupo Carso SA, ADS * .............................................. 656,250 350,000 Hopewell Holdings Ltd. ............................................. 457,458 80,000 Hutchison Whampoa Ltd. ............................................. 398,578 20,000 Kinnevik Investments AB, Series B Free (1) ......................... 436,700 6,200 Nederlandse Participatie Maatschappij NV (1) ....................... 176,205 2,500 Sophus Berendsen AS, Series B ...................................... 197,942 3,840,470 Containers: Metal and Glass--0.1% 100,000 M C Packaging Corp. Ltd. ........................................... 52,410 Containers: Paper--0.4% 164,000 PT Trias Sentosa ................................................... 421,409 Electrical Equipment--1.9% 1,004 Brown, Boveri & Co. Ltd., Part. Cert. (1) .......................... 734,224 80,000 Kabelmetal Indonesia PT * .......................................... 378,922 945 LEM Holdings SA (1) ................................................ 190,905 150,000 PT Trafindo Perkasa ................................................ 255,773 50,000 Supreme Cable Manufacturing (1) .................................... 274,719 1,834,543 Engineering and Construction--5.5% 10,000 BAU Holdings AF, Preference (1) .................................... 954,685 298 BAU Holdings AG * (1) .............................................. 28,841 15,000 Boskalis Westminster Koniniije (1) ................................. 356,798 14,000 Cubiertas Y Mzov SA Compania General (1) ........................... 1,048,102 2,850 Deutsche Babcock AG (1) ............................................ 413,583 6,732 Grontmij NV (1) .................................................... 237,423 30,000 Grupo Mexicano de Desarrollo SA, Sponsored Series B ADR * ................................................... 720,000 30,000 Grupo Mexicano de Desarrollo SA, Sponsored Series L ADR * ................................................... 738,750 18,000 IHC Caland NV (1) .................................................. 360,505 284,512 Leighton Holdings Ltd. ............................................. 438,354 5,297,041 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Industrial (Continued) Machinery: Diversified--4.5% 1,106 Bobst Bearers AG (1) ............................................... $ 1,340,580 900 Klein, Schanjlin & Becker AG, Preference (1) ....................... 193,835 150 Maschinenfabrik Berthold Hermle AG (1) ............................. 17,103 254,000 Powerscreen International PLC (1) .................................. 1,183,748 125 Schweizerische Industrie GmbH (1) .................................. 237,369 25 Schweizerische Industrie GmbH, Bearer (1) .......................... 47,474 300,000 Tampella OY AG (1) ................................................. 1,295,065 4,315,174 Manufacturing: Diversified Industrials--1.1% 20,000 Aalberts Industries NV (1) ......................................... 616,802 650 Siemens AG (1) ..................................................... 296,640 6,000 Welna NV (1) ....................................................... 138,394 1,051,836 Pollution Control--0.0% 100,000 Environmental Technologies International, Inc. * ................... 26,435 Transportation: Miscellaneous--3.4% 90,000 Eurotunnel SA (1) .................................................. 800,238 9,802 Kvaerner Industrier AS, Series B Free (1) .......................... 475,708 125,000 Lisnave-Estal Naval Lisboa ......................................... 834,748 150,000 Malaysian International Shipping Corp. ............................. 556,789 150,000 Singmarine Industries Ltd. ......................................... 454,944 10,000 Unitor Ships Service AS (1) ........................................ 168,864 3,291,291 Technology--11.8% Aerospace/Defense--1.0% 2,400,000 China Aerospace International Holdings Ltd. ........................ 1,001,618 Computer Software and Services--0.9% 6,500 Sligos SA (1) ...................................................... 607,673 50,000 Virtuality Group PLC ............................................... 244,857 852,530 Electronics: Semiconductors--1.5% 19,000 Austia Mikro Systems AG * (1) ...................................... 807,218 11,500 Samsung Electronics Co. Ltd., Sponsored GDR * ...................... 592,250 1,399,468 Telecommunications--8.4% 2,600 Advanced Information Services Ltd. ................................. 114,606 16,000 Atlantic Tele-Network, Inc. ........................................ 228,000 11,000 Carlton Communications PLC, ADR (1) ................................ 154,282 32,185 Millicom, Inc. * ................................................... 756,348 600,000 Netas Telekomunik .................................................. 1,077,000 6,980 Shinawatra Computer Communications Co. Ltd. ........................ 234,989 400,000 SIP International * (1) ............................................ 840,186 115,000 Societa Finanziora Telefonica SPA (1) .............................. 295,762 140,000 Technology Resources Industries * ................................. 732,734 15,500 Telecomasia Corp. PLC, Sponsored GDR ............................... 817,625 90,000 Telecommunication de Argentina, Cl. B .............................. 566,333 4,500 Telefonica de Argentina SA, Cl. B ADR .............................. 327,375 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Global Securities Fund Market Shares Common Stocks (Continued) Value-Note 1 Technology (Continued) Telecommunications (Continued) 100,000 Telefonica de Espana SA, ADR (1) ................................... $ 1,304,880 3,000 Telefonos de Mexico SA, Sponsored ADR .............................. 202,500 15,000 United Communication Industries (2) ................................ 135,934 34,769 Vodafone Group, ADR (1) ............................................ 305,558 8,094,112 Utilities--2.9% Electric Cos.--2.9% 20,000 Central Puerto SA, ADR * ........................................... 690,000 40,000 Consolidated Electric Power Asia Ltd., Sponsored ADR * ............. 720,000 25,000 Enersis SA, ADR * .................................................. 587,500 20,000 Korea Electric Power Co. * ......................................... 542,650 3,000 Verbund Oest Electriz (1) .......................................... 182,571 2,722,721 Total Common Stocks (Cost $68,312,122) ............................. 83,802,197 Total Investments, at Value (Cost $83,996,414) ........................ 103.8% 100,047,478 Liabilities in Excess of Other Assets ................................. (3.8) (3,622,967) Net Assets ............................................................ 100.0% $ 96,424,511 * Non-income producing security. 1. Securities with an aggregate market value of $37,803,067 are segregated to collateralize outstanding forward foreign currency exchange contracts. See Note 5 of Notes to Financial Statements. 2. The Fund owns securites purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more that 10% of its net assets (determined at the time of purchase) in restricted and illiquid securities, excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines. Restricted and illiquid securities amount to $808,931, or .8% of the Fund's net assets, at December 31, 1993. Valuation Acquisition Cost Per Unit as of Security Date Per Unit December 31, 1993 Internacional de Ceramica SA, Series B ADR(3) ................ 2/10/93-2/11/93 $ 25.40 $ 32.20 Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99(3) ............. 11/9/93 $ 100.00 $ 129.75 National Petrochemical Co.(3) ................................ 11/30/93 $ 1.30 $ 1.29 Plant Genetics Systems International NV ...................... 5/27/92 $ 11.18 $ 15.48 PT Panin Bank(3) ............................................. 7/28/93 $ .86 $ 2.60 Scici Ltd., 3.50% Cv. Bonds, 4/1/04(3) ....................... 10/19/93 $ 100.00 $ 133.13 Sears Roebuck de Mexico SA, ADR(3) ........................... 3/16/92 $ 15.50 $ 38.50 Taipei Fund .................................................. 12/29/93 $80,000.00 $83,500.00 Turkiye Garanti Bankasi AS, Sponsored ADR(3) ................. 10/29/93 $ 7.19 $ 7.00 United Communication Industries(3) ........................... 12/3/93 $ 9.06 $ 9.06 3. Transferable under Rule 144A of the Act. See accompanying Notes to Financial Statements.
Statement of Investments December 31, 1993 Oppenheimer Variable Account Funds-Strategic Bond Fund
Face Market Amount Government Obligations --47.7% Value-Note 1 $ 300,000 Argentina (Republic of) Bonds, Bonos del Tesoro, Series II, 3.50%, 9/1/97 (3)...........................................$ 247,507 300,000 (1) Bariven SA Bonds, 10.75%, 7/8/97 (6)............................................... 182,695 240,000 BEMGE Bonds, 10%, 1/15/96 .......................................................... 240,900 250,000 (1) Hydro-Ontario Global Bonds, 9%, 6/24/02 (6)....................................................... 212,165 250,000,000 (1) Italy (Republic of) Treasury Bonds, 11%, 6/1/03 (6)......................................................... 166,253 100,000 (1) New South Wales Treasury Corp. Bonds, 9.25%, 2/18/03 .................................................. 76,929 30,000,000 (1) Spain (Kingdom of) Bonds, 9%, 2/28/97 (6)......................................................... 215,124 100,000 (1) Treasury Corp. of Victoria Gtd. Sr. Bonds, 9.25%, 9/18/03 ......................................................... 75,549 500,000 U.S. Treasury Bonds, 7.125%, 2/15/23 ........................................................ 541,245 U.S. Treasury Nts: 100,000 3.875%, 4/30/95 ........................................................ 99,968 2,350,000 4.25%, 5/15/96 ......................................................... 2,343,373 120,000 5.125%, 4/30/98 ........................................................ 120,337 250,000 Venezuela (Republic of) Front-Loaded Interest Reduction Bonds, Series B, 6%, 3/31/07 (5)............................................................. 191,250 Total Government Obligations (Cost $4,730,529)....................................................... 4,713,295 Corporate Bonds and Notes --46.1% Banks/Saving and Loans --1.1% 100,000 Bancomext Trust Division, 8% Nts., 8/5/03 ....................................................... 103,000 Broadcast Media/Cable TV --10.3% 150,000 Cablevision Systems Corp., 9.875% Sr. Sub. Debs., 2/15/13 ................................................................ 175,125 350,000 Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 ................................................................. 392,000 200,000 International CabelTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts., 10/15/03 (2)...................................................... 128,000 150,000 Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 ................................................. 159,375 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Strategic Bond Fund Face Market Amount Corporate Bonds and Notes (Continued) Value-Note 1 Broadcast Media/Cable TV (Continued) $ 150,000 Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts., 8/1/00 .....................................................$ 159,375 1,013,875 Building Materials--2.5% 250,000 PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 ............................................. 250,937 Chemicals/Plastics --3.0% 130,000 Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 ...................................................... 137,150 150,000 Harris Chemical North America, Inc., 10.75% Sr. Gtd. Sub. Nts., 10/15/03 .................................................... 158,625 295,775 Consumer Goods: Manufacturing --7.0% 200,000 Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 ..................................................... 205,000 150,000 Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 ...................................................... 168,000 175,000 MacAndrews & Forbes Holdings, Inc., 13% Sub. Debs., 3/1/99 .......................................................... 176,094 150,000 Revlon Consumer Products Corp., 9.375% Sr. Nts., Series B, 4/1/01 ....................................................... 147,375 696,469 Financial/Insurance --6.8% 200,000 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 (7) ................................................. 209,000 200,000 Reliance Group Holdings, Inc., 9.75% Sr. Sub. Debs., 11/15/03 ............................................................... 206,500 250,000 Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (7)................................. 257,813 673,313 Gaming/Hotels--1.5% 150,000 Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 ................................................................. 152,250 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Strategic Bond Fund Face Market Amount Corporate Bonds and Notes (Continued) Value-Note 1 Healthcare/Medical Products--1.5% $ 150,000 Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05 (4) ...........................................................$ 150,422 Home Building/Development--1.6% 150,000 NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 .......................................................... 158,625 Office Equipment --1.4% 150,000 Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03 ...................................................... 135,750 Oil and Gas : Exploration and Production --1.5% 150,000 Maxus Energy Corp., 9.875% Nts., 10/15/02 ......................................................... 150,375 Publishing --1.1% 200,000 Bell & Howell Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05 (2) ............................................................. 111,000 Retail : Food and Drug--1.6% 150,000 Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 ...................................................... 159,375 Retail : Specialty --1.6% 150,000 Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 ............................................... 155,250 Transportation--1.0% 100,000 Transportacion Maritima Mexicana SA, 8.50% Nts., 10/15/00 ............................................................... 102,875 Utilities --2.6% 250,000 Subic Power Corp., 9.50% Debs., 12/28/08 (7)..................................................... 255,000 Total Corporate Bonds and Notes (Cost $4,476,279) ................................................ 4,564,291 Total Investments, at Value (Cost $9,206,808).............................. 93.8% 9,277,586 Other Assets Net of Liabilities ........................................... 6.2 608,932 Net Assets ................................................................ 100.0% $ 9,886,518 Statement of Investments (Continued) Oppenheimer Variable Account Funds-Strategic Bond Fund 1. Face amount is reported in foreign currency. 2. Represents a zero cupon bond that converts to a fixed rate of interest at a designated future date. 3. Represents the current interest rate for a variable rate security. 4. Interest or dividend is paid in kind. 5. Represents the current interest rate for a variable rate security. 6. Securities with an aggregate market value of $776,237 are segregated to collateralize outstanding forward foreign currency exchange contracts. See note 5 of Notes to Financial Statements. 7. The Fund owns securities purchased in private placement transactions, without registration under the Securities Act of 1933 (the Act). The securities are valued under methods approved by the Board of Trustees as reflecting fair value. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securities, excluding securities eligible for resale pursuant to Rule 144A of the Act that are determined to be liquid by the Board of Trustees or by the Manager under Board-approved guidelines. Valuation Per Acquisition Cost Unit as of Security Date Per Unit 12/31/93 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 (8) 10/6/93 $102.00 $104.50 Subic Power Corp., 9.50% Debs., 12/28/08 (8) 12/20/93 $99.93 $102.00 Tribasa Toll Road Trust 1, 10.50% Nts., Series 1993-A, 12/1/11 (8) 11/8/93 $100.00 $103.13 8. Transferable under Rule 144A of the Act. See accompanying Notes to Financial Statements
Statements of Assets and Liabilities December 31, 1993 Oppenheimer Variable Account Funds
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic Money High Income Bond Appreciation Growth Strategies Securities Bond Fund Fund Fund Fund Fund Fund Fund Fund ASSETS: Investments, at value (cost*)-see accompanying statements $61,069,285 $93,784,521 $109,574,804 $141,080,412 $56,163,478 $249,033,573 $100,047,478 $9,277,586 Unrealized appreciation on forward foreign currency exchange contracts-Note 5 - 21,075 9,773 - - - 121,554 13,803 Cash 24,247 - 217,997 135,607 62,630 237,293 2,847,588 193,222 Receivables: Dividends and interest 159,311 1,526,923 1,743,940 86,279 51,306 1,937,521 89,294 179,525 Shares of beneficial interest sold 56,131 79,874 354,834 2,096,404 499,157 500,839 1,193,039 226,388 Investments sold 50,893 369,789 - 972,382 - 805,320 489,055 - Other 6,099 6,041 2,912 8,155 6,359 14,748 6,850 5,503 Total assets 61,365,966 95,788,223 111,904,260 144,379,239 56,782,930 252,529,294 104,794,858 9,896,027 LIABILITIES: Bank overdraft - 642,665 - - - - - - Options written, at value (premiums received $654,848) - see accompanying statements-Note 4 - - - - - 588,881 - - Payables and other liabilities: Dividends 77,910 - - - - - - - Investments purchased - 645,000 - 6,225,965 58,750 1,601,677 7,647,135 - Shares of beneficial interest redeemed 47,596 1,447,251 33,445 1,246,838 363 813 718,335 - Other 18,841 41,974 24,694 21,333 22,769 47,875 4,877 9,509 Total liabilities 144,347 2,776,890 58,139 7,494,136 81,882 2,239,246 8,370,347 9,509 NET ASSETS $61,221,619 $93,011,333 $111,846,121 $136,885,103 $56,701,048 $250,290,048 $ 96,424,511 $9,886,518 COMPOSITION OF NET ASSETS: Paid-in capital $61,220,647 $86,718,526 $107,660,538 $ 93,658,242 $47,524,055 $217,836,036 $ 77,586,765 $9,771,635 Undistributed (distributions in excess of) net investment income - (525,482) 61,656 234,158 524,266 598,176 339,434 6,384 Accumulated net realized gain (loss) from investment, written option and foreign currency transactions 972 1,876,672 (208,860) 17,043,751 (483,393) 1,483,386 2,325,694 23,918 Net unrealized appreciation on investments and options written- Note 3 - 5,023,676 4,415,577 25,948,952 9,136,120 30,372,450 16,172,618 75,918 Net unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies - (82,059) (82,790) - - - - 8,663 NET ASSETS $61,221,619 $93,011,333 $111,846,121 $136,885,103 $56,701,048 $250,290,048 $ 96,424,511 $9,886,518 SHARES OF BENEFICIAL INTEREST OUTSTANDING 61,220,647 8,442,958 9,601,796 4,325,853 3,202,704 18,025,972 5,917,113 1,929,958 NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $ 1.00 $ 11.02 $ 11.65 $ 31.64 $ 17.70 $ 13.88 $ 16.30 $ 5.12 *Cost $61,069,285 $88,863,979 $105,251,790 $115,131,460 $47,027,358 $218,727,090 $ 83,996,414 $9,206,808 See accompanying Notes to Financial Statements. Statements of Operations For the Year Ended December 31, 1993 Oppenheimer Variable Account Funds
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic Money High Income Bond Appreciation Growth Strategies Securities Bond Fund Fund Fund Fund Fund Fund Fund Fund INVESTMENT INCOME: Interest $2,043,327 $ 6,932,131 $6,683,478 $ 478,491 $ 196,602 $ 8,165,314 $ 91,732 $188,838 Dividends - 554,337 99 204,562 555,809 1,655,585 429,261 - Total income 2,043,327 7,486,468 6,683,577 683,053 752,411 9,820,899 520,993 188,838 EXPENSES: Management fees-Note 6 212,358 382,629 361,258 407,611 193,110 831,139 227,226 18,509 Legal and auditing fees 16,544 13,808 11,714 10,939 11,756 18,510 5,937 3,201 Custodian fees and expenses 13,412 41,798 10,374 19,120 17,239 61,089 31,983 1,391 Trustees' fees and expenses 2,032 1,699 1,606 2,557 1,642 7,291 2,342 189 Registration and filing fees - 11,796 14,102 17,383 5,310 24,121 20,481 3,280 Other 3,309 2,317 2,605 3,600 1,441 7,469 4,562 797 Total expenses 247,655 454,047 401,659 461,210 230,498 949,619 292,531 27,367 NET INVESTMENT INCOME 1,795,672 7,032,421 6,281,918 221,843 521,913 8,871,280 228,462 161,471 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND OPTIONS WRITTEN: Net realized gain (loss) on investments and options written (including premiums on options exercised) 972 2,997,007 595,806 17,171,028 (416,658) 2,955,823 2,546,181 9,787 Net realized gain on closing and expiration of option contracts written- Note 4 - - - - - 219,623 - 7,110 Net realized gain (loss) 972 2,997,007 595,806 17,171,028 (416,658) 3,175,446 2,546,181 16,897 Net change in unrealized appreciation (depreciation) on investments and options written: Beginning of year - 93,026 1,393,576 17,936,209 5,758,542 12,654,079 (781,639) - End of year-Note 3 - 5,023,676 4,415,577 25,948,952 9,136,120 30,372,450 16,172,618 75,918 Net change - 4,930,650 3,022,001 8,012,743 3,377,578 17,718,371 16,954,257 75,918 NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND OPTIONS WRITTEN 972 7,927,657 3,617,807 25,183,771 2,960,920 20,893,817 19,500,438 92,815 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS BEFORE FOREIGN EXCHANGE GAIN (LOSS) 1,796,644 14,960,078 9,899,725 25,405,614 3,482,833 29,765,097 19,728,900 254,286 REALIZED AND UNREALIZED FOREIGN EXCHANGE GAIN (LOSS): Net realized gain (loss) on foreign currency transactions - (126,242) (164,183) - - - - 7,021 Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies: Beginning of year - (88,389) (240,141) - - - - - End of year - (82,059) (82,790) - - - - 8,663 Net change - 6,330 157,351 - - - - 8,663 NET REALIZED AND UNREALIZED FOREIGN EXCHANGE GAIN (LOSS) - (119,912) (6,832) - - - - 15,684 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,796,644 $14,840,166 $9,892,893 $25,405,614 $3,482,833 $29,765,097 $19,728,900 $269,970
See accompanying Notes to Financial Statements. Statements of Changes in Net Assets Oppenheimer Variable Account Funds
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Money High Income Bond Capital Appreciation Fund Fund Fund Fund 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1) OPERATIONS: Net investment income $ 1,795,672 $ 2,307,212 $ 7,032,421 $ 4,453,990 $ 6,281,918 $ 3,568,280 $ 221,843 $ 168,695 Net realized gain (loss) on investments and options written 972 72,940 2,997,007 2,174,668 595,806 (110,978) 17,171,028 3,471,235 Net realized gain (loss) on foreign currency transactions - - (126,242) (165,639) (164,183) (437,791) - - Net change in unrealized appreciation or depreciation on investments and options written - - 4,930,650 (823,806) 3,022,001 (99,126) 8,012,743 7,083,362 Net change in unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies - - 6,330 (40,785) 157,351 (82,013) - - Net increase in net assets resulting from operations 1,796,644 2,380,152 14,840,166 5,598,428 9,892,893 2,838,372 25,405,614 10,723,292 NET CHANGE IN EQUALIZATION - - 1,194,413 590,409 747,196 458,394 - - DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income (1,795,672) (2,307,212) (7,933,113) (4,895,490) (6,021,196) (3,674,661) (173,608) (274,327) Distributions from net realized gain on investments and options written - (79,555) - - - - (3,478,465) (1,117,628) BENEFICIAL INTEREST TRANSACTIONS: Net increase (decrease) in net assets resulting from beneficial interest transactions-Note 2 2,954,149 (436,361) 44,092,559 12,216,279 43,872,915 30,970,048 31,796,464 24,632,437 NET ASSETS: Total increase (decrease) 2,955,121 (442,976) 52,194,025 13,509,626 48,491,808 30,592,153 53,550,005 33,963,774 Beginning of year 58,266,498 58,709,474 40,817,308 27,307,682 63,354,313 32,762,160 83,335,098 49,371,324 End of year $61,221,619 $58,266,498 $93,011,333 $ 40,817,308 $111,846,121 $63,354,313 $136,885,103 $83,335,098
1. For the year ended December 31. See accompanying Notes to Financial Statements. Statements of Changes in Net Assets (Continued) Oppenheimer Variable Account Funds
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Growth Multiple Strategies Global Securities Strategic Bond Fund Fund Fund Fund 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) OPERATIONS: Net investment income $ 521,913 $ 350,171 $ 8,871,280 $ 6,430,572 $ 228,462 $ 116,252 $ 161,471 Net realized gain (loss) on investments and options written (416,658) 1,452,406 3,175,446 1,920,255 2,546,181 (213,298) 16,897 Net realized gain on foreign currency transactions - - - - - - 7,021 Net change in unrealized appreciation or depreciation on investments and options written 3,377,578 2,410,316 17,718,371 3,761,960 16,954,257 (990,204) 75,918 Net change in unrealized appreciation or depreciation on translation of assets and liabilities denominated in foreign currencies - - - - - - 8,663 Net increase (decrease) in net assets resulting from operations 3,482,833 4,212,893 29,765,097 12,112,787 19,728,900 (1,087,250) 269,970 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income (339,216) (532,602) (8,601,104) (6,262,811) - (35,139) (155,087) Distributions from net realized gain on investments and options written (768,083) - - - - (35,139) - BENEFICIAL INTEREST TRANSACTIONS: Net increase in net assets resulting from beneficial interest transactions 17,831,569 10,781,610 69,662,484 28,980,030 63,158,438 7,355,765 9,771,635 NET ASSETS: Total increase 20,207,103 14,461,901 90,826,477 34,830,006 82,887,338 6,198,237 9,886,518 Beginning of year 36,493,945 22,032,044 159,463,571 124,633,565 13,537,173 7,338,936 - End of year $ 56,701,048 $ 36,493,945 $250,290,048 $159,463,571 $96,424,511 $13,537,173 $9,886,518
1. For the year ended December 31. 2. For the period from May 3, 1993 (commencement of operations) to December 31, 1993. See accompanying Notes to Financial Statements. Financial Highlights Oppenheimer Variable Account Funds
Oppenheimer Money Fund 1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations-net investment income and net realized gain on investments .03 .04 .06 .08 .09 .07 .06 .06 .05 Dividends and distributions to shareholders (.03) (.04) (.06) (.08) (.09) (.07) (.06) (.06) (.05) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $61,221 $58,266 $58,709 $89,143 $68,440 $69,468 $42,538 $28,218 $2,506 Average net assets (in thousands) $57,654 $61,317 $75,747 $82,966 $67,586 $60,241 $35,138 $12,914 $2,080 Number of shares outstanding at end of period (in thousands) 61,221 58,266 58,703 89,141 68,439 69,468 42,538 28,218 2,506 Ratios to average net assets: Net investment income 3.12% 3.76% 5.97% 7.80% 8.82% 7.31% 6.33% 5.68% 7.25%(3) Expenses .43% .50% .49% .51% .53% .55% .59% .75% .75%(3)
1. For the period from April 3, 1985 (commencement of operations) to December 31, 1985. 2. For the year ended December 31. 3. Annualized. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer High Income Fund 1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 9.74 $ 9.40 $ 7.90 $ 8.59 $ 9.30 $ 9.14 $ 10.04 $ 10.00 Income from investment operations: Net investment income .82 1.19 1.28 1.21 1.09 1.12 1.30 .72 Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.65 .43 1.30 (.82) (.65) .23 (.51) (.24) Total income from investment operations 2.47 1.62 2.58 .39 .44 1.35 .79 .48 Dividends and distributions to shareholders: Dividends from net investment income (1.19) (1.28) (1.08) (1.08) (1.08) (1.07) (1.55) (.44) Distributions from net realized gain on investments - - - - (.07) (.12) (.14) - Total dividends and distributions to shareholders (1.19) (1.28) (1.08) (1.08) (1.15) (1.19) (1.69) (.44) Net asset value, end of period $ 11.02 $ 9.74 $ 9.40 $ 7.90 $ 8.59 $ 9.30 $ 9.14 $ 10.04 TOTAL RETURN, AT NET ASSET VALUE(3) 26.34% 17.92% 33.91% 4.65% 4.84% 15.58% 8.07% 4.73% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $93,011 $40,817 $27,308 $19,172 $23,698 $25,551 $21,768 $14,833 Average net assets (in thousands) $67,000 $36,861 $23,663 $21,493 $26,040 $24,530 $20,637 $ 8,036 Number of shares outstanding at end of period (in thousands) 8,443 4,189 2,905 2,427 2,760 2,746 2,382 1,478 Ratios to average net assets: Net investment income 10.50% 12.08% 14.26% 14.32% 11.52% 11.94% 13.13% 11.18%(4) Expenses .68% .73% .75% .75% .75% .75% .75% .75%(4) Portfolio turnover rate(5) 135.7% 144.2% 108.0% 95.1% 78.7% 57.9% 42.1% 18.3%
1. For the period from April 30, 1986 (commencement of operations) to December 31, 1986. 2. For the year ended December 31. 3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additionalshares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. 4. Annualized. 5. 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 periodSecurities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Bond Fund 1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 10.99 $ 11.15 $ 10.33 $ 10.49 $ 10.15 $ 10.19 $ 11.15 $11.27 $10.00 Income from investment operations: Net investment income .65 .87 .95 .97 .98 .94 .97 .97 .86 Net realized and unrealized gain (loss) on investments and foreign currency transactions .76 (.17) .80 (.18) .32 (.05) (.71) .09 .99 Total income from investment operations 1.41 .70 1.75 .79 1.30 .89 .26 1.06 1.85 Dividends and distributions to shareholders: Dividends from net investment income (.75) (.86) (.93) (.95) (.96) (.93) (1.17) (1.03) (.58) Distributions from net realized gain on investments - - - - - - (.05) (.15) - Total dividends and distributions to shareholders (.75) (.86) (.93) (.95) (.96) (.93) (1.22) (1.18) (.58) Net asset value, end of period $ 11.65 $ 10.99 $ 11.15 $ 10.33 $ 10.49 $ 10.15 $ 10.19 $11.15 $11.27 TOTAL RETURN, AT NET ASSET VALUE(3) 13.04% 6.50% 17.63% 7.92% 13.32% 8.97% 2.53% 10.12% 18.82% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $111,846 $63,354 $32,762 $16,576 $13,422 $ 9,989 $10,415 $7,377 $2,725 Average net assets (in thousands) $ 87,215 $45,687 $22,169 $15,088 $11,167 $11,028 $ 8,748 $4,647 $1,614 Number of shares outstanding at end ofperiod (in thousands) 9,602 5,766 2,939 1,604 1,280 984 1,022 662 242 Ratios to average net assets: Net investment income 7.20% 7.81% 8.73% 9.30% 9.34% 9.08% 9.17% 8.71% 10.52%(4) Expenses .46% .56% .64% .61% .64% .70% .75% .75% .75%(4) Portfolio turnover rate(5) 36.3% 41.3% 7.6% 7.4% 5.4% 36.3% 5.9% 27.7% 101.3%
1. For the period from April 3, 1985 (commencement of operations) to December 31, 1985. 2. For the year ended December 31. 3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additionalshares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. 4. Annualized. 5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Capital Appreciation Fund 1993(2) 1992(3) 1991(3) 1990(3) 1989(3) 1988(3) 1987(3) 1986(2) 1986(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 26.04 $ 23.24 $ 15.24 $ 20.40 $ 16.31 $ 14.39 $13.12 $16.21 $13.71 Income (loss) from investment operations: Net investment income .05 .06 .08 .32 .50 .33 .21 .12 .09 Net realized and unrealized gain (loss) on investments 6.71 3.43 8.18 (3.54) 3.93 1.60 1.67 (1.24) 3.40 Total income (loss) from investment operations 6.76 3.49 8.26 (3.22) 4.43 1.93 1.88 (1.12) 3.49 Dividends and distributions to shareholders: Dividends from net investment income (.06) (.14) (.26) (.53) (.34) - (.34) (.21) (.20) Distributions from net realized gain on investments (1.10) (.55) - (1.41) - (.01) (.27) (1.76) (.79) Total dividends and distributions to shareholders (1.16) (.69) (.26) (1.94) (.34) (.01) (.61) (1.97) (.99) Net asset value, end of period $ 31.64 $ 26.04 $ 23.24 $ 15.24 $ 20.40 $ 16.31 $14.39 $13.12 $16.21 TOTAL RETURN, AT NET ASSET VALUE(4) 27.32% 15.42% 54.72% (16.82)% 27.57% 13.41% 14.34% (1.65)% N/A RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $136,885 $83,335 $49,371 $23,295 $27,523 $13,667 $9,692 $4,549 $3,852 Average net assets (in thousands) $ 98,228 $56,371 $34,887 $24,774 $21,307 $13,239 $8,598 $3,099 $2,292 Number of shares outstanding at end of period (in thousands) 4,326 3,201 2,125 1,528 1,349 838 674 347 238 Ratios to average net assets: Net investment income .23% .30% .81% 1.93% 3.27% 2.13% 1.68% 2.36%(5) 2.27% Expenses .47% .54% .63% .71% .68% .73% .75% 1.01%(5) 2.17% Portfolio turnover rate(6) 122.8% 78.9% 122.3% 222.0% 130.5% 128.7% 138.7% 100.1% 464.8%
1. For the year ended June 30, 1986Operating results were achieved by Centennial Capital Appreciation Fund, a separate investment company acquired by OCAP on August14, 1986. 2. For the six months ended December 31, 1986Operating results prior to August 15, 1986 were achieved by Centennial Capital Appreciation Fund, a separate investmentcompany acquired by OCAP on August 14, 1986. 3. For the year ended December 31. 4. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additionalshares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. 5. Annualized. 6. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Growth Fund 1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 16.96 $ 15.17 $ 12.54 $ 16.38 $ 13.64 $ 11.21 $ 12.53 $10.95 $10.00 Income (loss) from investment operations: Net investment income .46 .16 .30 .56 .66 .29 .20 .13 .16 Net realized and unrealized gain (loss) on investments .74 1.99 2.82 (1.79) 2.50 2.19 .24 1.76 .79 Total income (loss) from investment operations 1.20 2.15 3.12 (1.23) 3.16 2.48 .44 1.89 .95 Dividends and distributions to shareholders: Dividends from net investment income (.14) (.36) (.49) (.62) (.35) - (.34) (.15) - Distributions from net realized gain on investments (.32) - - (1.99) (.07) (.05) (1.42) (.16) - Total dividends and distributions to shareholders (.46) (.36) (.49) (2.61) (.42) (.05) (1.76) (.31) - Net asset value, end of period $ 17.70 $ 16.96 $ 15.17 $ 12.54 $ 16.38 $ 13.64 $ 11.21 $12.53 $10.95 TOTAL RETURN, AT NET ASSET VALUE(3) 7.25% 14.53% 25.54% (8.21)% 23.59% 22.09% 3.32% 17.76% 9.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $56,701 $36,494 $22,032 $15,895 $19,301 $17,746 $14,692 $8,287 $ 820 Average net assets (in thousands) $46,389 $25,750 $18,810 $17,235 $18,596 $15,585 $15,121 $3,744 $ 388 Number of shares outstanding at end of period (in thousands) 3,203 2,152 1,453 1,267 1,179 1,301 1,311 661 75 Ratios to average net assets: Net investment income 1.13% 1.36% 2.82% 4.09% 3.72% 2.39% 1.56% 2.62% 4.25%(4) Expenses .50% .61% .70% .71% .70% .70% .75% .75% .75%(4) Portfolio turnover rate(5) 12.6% 48.7% 133.9% 267.9% 148.0% 132.5% 191.0% 100.9% 132.9%
1. For the period from April 3, 1985 (commencement of operations) to December 31, 1985. 2. For the year ended December 31. 3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additionalshares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period 4. Annualized. 5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Multiple Strategies Fund 1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 12.47 $ 11.96 $ 10.90 $ 12.30 $ 11.58 $ 10.04 $ 10.00 Income (loss) from investment operations: Net investment income .55 .55 .69 .73 .73 .66 .44 Net realized and unrealized gain (loss) on investments and options written 1.41 .50 1.15 (.97) 1.04 1.53 .07 Total income (loss) from investment operations 1.96 1.05 1.84 (.24) 1.77 2.19 .51 Dividends and distributions to shareholders: Dividends from net investment income (.55) (.54) (.78) (.70) (.68) (.65) (.43) Distributions from net realized gain on investments and options written - - - (.46) (.37) - (.04) Total dividends and distributions to shareholders (.55) (.54) (.78) (1.16) (1.05) (.65) (.47) Net asset value, end of period $ 13.88 $ 12.47 $ 11.96 $ 10.90 $ 12.30 $ 11.58 $ 10.04 TOTAL RETURN, AT NET ASSET VALUE(3) 15.95% 8.99% 17.48% (1.91)% 15.76% 22.15% 3.97% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $250,290 $159,464 $124,634 $118,888 $121,286 $78,386 $53,291 Average net assets (in thousands) $199,954 $139,011 $117,000 $123,231 $101,057 $64,298 $34,256 Number of shares outstanding at end of period (in thousands) 18,026 12,792 10,421 10,908 9,860 6,766 5,306 Ratios to average net assets: Net investment income 4.44% 4.63% 5.95% 6.53% 6.36% 6.18% 6.12%(4) Expenses .48% .55% .54% .55% .57% .58% .65%(4) Portfolio turnover rate(5) 32.4% 57.8% 80.3% 99.2% 66.9% 110.0% 46.9%
1. For the period from February 9, 1987 (commencement of operations) to December 31, 1987. 2. For the year ended December 31. 3. 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. 4. Annualized. 5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Global Securities Fund 1993(2) 1992(2) 1991(2) 1990(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 9.57 $ 10.38 $10.04 $10.00 Income (loss) from investment operations: Net investment income (.02) .07 .04 - Net realized and unrealized gain (loss) on investments 6.75 (.80) .30 .04 Total income (loss) from investment operations 6.73 (.73) .34 .04 Dividends and distributions to shareholders: Dividends from net investment income - (.04) - - Distributions from net realized gain on investments - (.04) - - Total dividends and distributions to shareholders - (.08) - - Net asset value, end of period $ 16.30 $ 9.57 $10.38 $10.04 TOTAL RETURN, AT NET ASSET VALUE(3) 70.32% (7.11)% 3.39% .40% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $96,425 $13,537 $7,339 $ 432 Average net assets (in thousands) $31,696 $11,181 $3,990 $ 263 Number of shares outstanding at end of period (in thousands) 5,917 1,415 707 43 Ratios to average net assets: Net investment income .72% 1.04% .75% .08%(4) Expenses .92% 1.06% 1.32% 6.84%(4) Portfolio turnover rate(5) 65.1% 34.1% 29.5% 0.0%
1. For the period from November 12, 1990 (commencement of operations) to December 31, 1990. 2. For the year ended December 31. 3. 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. 4. Annualized. 5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Financial Highlights (Continued) Oppenheimer Variable Account Funds
Oppenheimer Strategic Bond Fund 1993(1) PER SHARE OPERATING DATA: Net asset value, beginning of period $ 5.00 Income from investment operations: Net investment income .10 Net realized and unrealized gain on investments and foreign currency transactions .11 Total income from investment operations .21 Dividends and distributions to shareholders: Dividends from net investment income (.09) Distributions from net realized gain on investments - Total dividends and distributions to shareholders (.09) Net asset value, end of period $ 5.12 TOTAL RETURN, AT NET ASSET VALUE(2) 4.25% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $9,887 Average net assets (in thousands) $4,259 Number of shares outstanding at end of period (in thousands) 1,930 Ratios to average net assets: Net investment income 5.67%(3) Expenses .96%(3) Portfolio turnover rate(4) 10.9%
1. For the period from May 3, 1993 (commencement of operations) to December 31, 1993. 2. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested inadditional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. 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 theperiodof acquisition of one year or less are excluded from the calculation. See accompanying Notes to Financial Statements. Notes to Financial Statements Oppenheimer Variable Account Funds 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) and Oppenheimer Strategic Bond Fund (OSBF) (collectively, the Funds) are separate funds 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 adviser is Oppenheimer Management Corporation (the Manager). The following is a summary of significant accounting policies consistently followed by the Funds. 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 and OSBF are valued at 4:00 p.m. (New Yorktime) 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 debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Long-term debt securities which cannot be valued by the approved portfolio pricing service are valued by averaging the mean between the bid and asked prices obtained from two active market makers in such securities. Short-term 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. Securities for which market quotes are not readily available are valued under procedures established by the Board of Trustees to determine fair value in good faith. A call option is valued based upon the last sales price on the principal exchange on which the option is traded or, in the absence of any transactions that day, the value is based upon the last sale on the prior trading date if it is within the spread between the closing bid and asked prices. If the last sale price is outside the spread, the closing bid or asked price closest to the last reported sale price is used. Forward foreign currency contracts are valued at the forward rate on a daily basis. Security Credit Risk-OHIF invests 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 Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. At December 31, 1993, securities with an aggregate market value of $2,369,721, representing 2.47% of the Fund's total assets, were in default. Foreign Currency Translation-The accounting records of the Funds are maintained in U.S. dollars. Prices of securities purchased by OHIF, OBF, OCAP, OGF, OMSF, OGSF and OSBF 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. Forward foreign currency exchange contracts are generally entered into as a hedge, upon the purchase or sale of a security denominated in a foreign currency. In addition, OHIF, OBF, OGSF and OSBF may enter into such contracts as a hedge against changes in foreign currency exchange rates on portfolio positions. A forward exchange contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. Risks may arise from the potential inability of the counterparty to meet the terms of the contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. OCAP, OGF, OMSF and OGSF account for gains and losses on foreign currency transactions with the transactions that gave rise to the exchange gain or loss. The net gain or loss resulting from changes in foreign currency exchange rates is reported separately in the Statement of Operations by OHIF, OBF and OSBF. 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. 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. Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds Call Options Written-OHIF, OCAP, OGF, OMSF, OGSF and OSBF may write covered call options. When an option is written by a Fund, the Fund receives a premium and becomes obligated to sell the underlying security at a fixed price, upon exercise of the option. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Fund could result in the Fund selling a security at a price different from the current market value. All securities covering call options written are held in escrow by the custodian bank. Federal Income 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 tax provision is required. Equalization-Prior to September 25, 1993, OHIF and OBF followed the accounting practice of equalization, by which a portion of the proceeds from sales and costs of redemptions of Fund shares equivalent on a per share basis to the amount of undistributed net investment income were credited or charged to undistributed income. The cumulative effect of the change in accounting practice resulted in a reclassification of $2,119,310 and $1,577,200 for OHIF and OBF, respectively, from undistributed net investment income to paid-in capital. Distributions to Shareholders-Dividends and distributions to shareholders of OHIF, OBF, OCAP, OGF, OMSF, OGSF and OSBF are recorded on the ex-dividend date. OMF intends to declare dividends from net investment income each regular business day 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. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date) and dividend income is recorded on the ex-dividend date. Discount on securities purchased by OHIF, OBF, OCAP, OGF, OMSF, OGSF and OSBF 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. Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds 2. Shares of Beneficial Interest The Funds have authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Oppenheimer Money Fund Oppenheimer High Income Fund Year Ended Year Ended Year Ended Year Ended December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992 Shares Amount Shares Amount Shares Amount Shares Amount Sold 102,985,240 $ 102,985,240 108,040,063 $ 108,040,063 10,942,819 $113,254,844 4,550,213 $ 43,344,229 Dividends and distributions reinvested 1,805,107 1,805,107 2,400,795 2,400,795 743,446 7,814,552 503,051 4,788,432 Redeemed (101,836,198) (101,836,198) (110,877,219) (110,877,219)(7,432,492) (76,976,837) (3,769,287) (35,916,382) Net increase (decrease) 2,954,149 $ 2,954,149 (436,361) $ (436,361) 4,253,773 $ 44,092,559 1,283,977 $ 12,216,279
Oppenheimer Bond Fund Oppenheimer Capital Appreciation Fund Year Ended Year Ended Year Ended Year Ended December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992 Shares Amount Shares Amount Shares Amount Shares Amount Sold 4,694,025 $ 53,668,794 4,231,648 $ 46,316,359 4,925,361 $ 134,864,285 5,202,028 $117,665,463 Dividends and distributions reinvested 518,084 5,957,407 333,812 3,653,072 151,099 3,652,073 61,185 1,391,955 Redeemed (1,375,924) (15,753,286) (1,739,301) (18,999,383) (3,951,312) (106,719,894) (4,187,015) (94,424,981) Net increase 3,836,185 $ 43,872,915 2,826,159 $ 30,970,048 1,125,148 $ 31,796,464 1,076,198 $ 24,632,437
Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds
Oppenheimer Growth Fund Oppenheimer Multiple Strategies Fund Year Ended Year Ended Year Ended Year Ended December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992 Shares Amount Shares Amount Shares Amount Shares Amount Sold 3,164,464 $ 53,547,991 3,914,464 $ 59,289,671 6,332,739 $ 84,477,261 3,370,345 $ 41,125,816 Dividends and distributions reinvested 66,987 1,107,299 36,133 532,602 644,161 8,601,104 517,276 6,262,811 Redeemed (2,180,502) (36,823,721) (3,251,618) (49,040,663) (1,742,975) (23,415,881) (1,516,315) (18,408,597) Net increase 1,050,949 $ 17,831,569 698,979 $ 10,781,610 5,233,925 $ 69,662,484 2,371,306 $ 28,980,030
Oppenheimer Strategic Oppenheimer Global Securities Fund Bond Fund Year Ended Year Ended Year Ended December 31, 1993 December 31, 1992 December 31, 1993(1) Shares Amount Shares Amount Shares Amount Sold 4,921,273 $68,947,505 904,052 $ 9,354,667 2,316,566 $11,749,598 Dividends and distributions reinvested - - 6,630 70,278 30,366 155,087 Redeemed (419,042) (5,789,067) (203,135) (2,069,180) (416,974) (2,133,050) Net increase 4,502,231 $63,158,438 707,547 $ 7,355,765 1,929,958 $ 9,771,635
1. For the period from May 3, 1993 (commencement of operations) to December 31, 1993. Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds 3 Unrealized Gains and Losses on Investments and Options Written At December 31, 1993, net unrealized appreciation on investments and options written consisted of the following:
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic High Income Bond Appreciation Growth Strategies Securities Bond Fund Fund Fund Fund Fund Fund Fund Gross appreciation $ 5,972,717 $ 4,941,642 $ 28,473,570 $11,310,180 $ 35,083,777 $17,370,800 $ 137,575 Gross depreciation (949,041) (526,065) (2,524,618) (2,174,060) (4,711,327) (1,198,182) (61,657) Net unrealized appreciation $ 5,023,676 $ 4,415,577 $ 25,948,952 $ 9,136,120 $ 30,372,450 $16,172,618 $ 75,918
Purchases and sales of investment securities (excluding short-term securities) for the year ended December 31, 1993 were as follows:
Purchases $122,623,355 $61,383,497 $135,905,785 $20,752,925 $109,074,871 $74,160,213 $14,669,367 Sales $ 83,369,171 $28,260,510 $110,913,591 $ 5,059,824 $ 60,759,536 $20,095,636 $ 5,485,104
4 Call Option Activity Call option activity for the year ended December 31, 1993 was as follows:
Oppenheimer Multiple Strategies Fund Oppenheimer Strategic Bond Fund Number of Amount of Number of Amount of Options Premiums Options Premiums Options outstanding at December 31, 1992 1,314 $ 250,967 - $ - Options written 5,764 1,484,776 500 7,110 Options cancelled in closing purchase transactions (1,564) (438,445) - - Options expired prior to exercise (1,431) (295,659) (500) (7,110) Options exercised (1,698) (346,791) - - Options outstanding at December 31, 1993 2,385 $ 654,848 - $ -
The cost of cancelling options in closing purchase transactions was $514,481, resulting in a net short-term capital loss of $76,036 for OMSF Premiums received on expired options resulted in short-term capital gains of $295,659 and $7,110 for OMSF and OSBF, respectively. Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds 5 Forward Foreign Currency Exchange Contracts At December 31, 1993, outstanding forward exchange currency contracts to purchase and sell foreign currencies were as follows:
Oppenheimer High Income Fund Contract Valuation Contracts to Purchase Expiration Date Amount as of December 31, 1993 Unrealized Appreciation Canadian Dollar 1/10/94 $ 179,198 $ 181,246 $ 2,048 Contracts to Sell Spanish Peseta 1/05/94 $1,092,780 $1,090,596 2,184 Canadian Dollar 1/10/94 2,198,670 2,198,059 611 Deutsche Mark 1/13/94 585,138 568,906 16,232 $3,876,588 $3,857,561 $21,075
Oppenheimer Bond Fund Contract Valuation Contracts to Purchase Expiration Date Amount as of December 31, 1993 Unrealized Appreciation Canadian Dollar 1/10/94 $834,716 $844,254 $9,538 Contracts to Sell Canadian Dollar 1/10/94 $844,489 $844,254 235 $9,773
Oppenheimer Global Securities Fund Contract Valuation Unrealized Appreciation Contracts to Sell Expiration Date Amount as of December 31, 1993 (Depreciation) Austrian Schilling 1/20/94 $ 2,009,452 $ 1,981,062 $ 28,390 British Pound 1/20/94 1,992,023 1,997,666 (5,643) Deutsche Mark 1/20/94 2,712,762 2,672,717 40,045 Finnish Markka 1/20/94 989,034 1,003,039 (14,005) French Franc 1/20/94 3,166,097 3,181,513 (15,416) Italian Lira 1/20/94 1,010,246 989,836 20,410 Netherlands Guilder 1/20/94 1,403,058 1,387,215 15,843 Norwegian Krone 1/20/94 1,409,615 1,388,872 20,743 Spanish Peseta 1/20/94 1,020,784 986,678 34,106 Swedish Krona 1/20/94 3,164,686 3,148,612 16,074 Swiss Franc 1/20/94 1,265,522 1,284,515 (18,993) $20,143,279 $20,021,725 $121,554
Oppenheimer Strategic Bond Fund Contract Valuation Contracts to Sell Expiration Date Amount as of December 31, 1993 Unrealized Appreciation Canadian Dollar 1/10/94 $199,879 $199,778 $ 101 Deutsche Mark 1/13/94 175,541 170,671 4,870 Italian Lira 1/13/94 156,527 152,791 3,736 Spanish Peseta 1/13/94 199,636 194,540 5,096 $731,583 $717,780 $13,803
Notes to Financial Statements (Continued) Oppenheimer Variable Account Funds 6. Management Fees and Other Transactions with Affiliates Management fees paid to the Manager were in accordance with the investment advisory agreements with the Trust. Except as stated below, the annual fees are .50% on the first $250 million of aggregate Trust net assets, .45% on the next $50 million, .40% on the next $100 million, .35% on the next $400 million and .30% on net assets in excess of $800 million. OMF fees are reduced by .05% on the first $250 million of Fund net assets, as well as on Fund net assets in excess of $4 billion. OHIF pays an additional management fee of .15% of its net assets annually. OGSF fees are .75% on the first $200 million of aggregate Trust net assets with a reduction of .03% on each $200 million thereafter to $800 million, and .60% on net assets in excess of $800 million. OSBF fees are .65% of net assets annually. Fees are allocated ratably to each Fund based on the relative value of Fund net assets to total Trust net assets as of the close of business each day. The Manager has agreed to reimburse OMF, OHIF, OBF, OCAP, OGF, OMSF and OSBF if aggregate Fund expenses (with specified exceptions) exceed 2% of the first $10 million of average annual net assets, 1.50% of the next $20 million and 1% of average annual net assets in excess of $30 million. The Manager and Monarch Life Insurance Company, Bankers Security Life Insurance Society (Bankers) and Confederation Life Insurance and Annuity Company have also voluntarily undertaken to limit the expenses of OMF, OHIF, OBF, OCAP, OGF and OMSF to .75% of average annual net assets, after any other reimbursement by the Manager. The reimbursement is based on the proportionate number of shares in the accounts of the respective insurance companies. The undertaking by Bankers extends to OMSF only. Independent Auditors' Report Oppenheimer Variable Account Funds The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds: We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Oppenheimer Money Fund, Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer Capital Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple Strategies Fund, Oppenheimer Global Securities Fund and Oppenheimer Strategic Bond Fund (all of which are series of Oppenheimer Variable Account Funds) as of December 31, 1993, the related statements of operations for the year then ended, the statements of changes in net assets for the periods ended December 31, 1993 and 1992, and the financial highlights for the applicable periods ended December 31, 1993, 1992, 1991, 1990, 1989, 1988, 1987, and 1986, June 30, 1986 and December 31, 1985. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 1993 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Oppenheimer Money Fund, Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer Capital Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple Strategies Fund, Oppenheimer Global Securities Fund and Oppenheimer Strategic Bond Fund at December 31, 1993, the results of their operations, the changes in their net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE Denver, Colorado January 21, 1994 Oppenheimer Variable Account Funds Officers and Trustees James C. Swain, Chairman and Chief Executive Officer William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee and President Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Robert C. Doll, Jr., Vice President Andrew J. Donohue, Vice President George R. Evans, Vice President David P. Negri, Vice President Richard H. Rubinstein, Vice President Arthur J. Zimmer, Vice President George C. Bowen, Vice President, Secretary and Treasurer Lynn M. Coluccy, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Advisor Oppenheimer Management Corporation Transfer Agent Oppenheimer Shareholder Services Custodian of Portfolio Securities The Bank of New York Independent Auditors Deloitte & Touche Legal Counsel Myer, Swanson & Adams, P.C. This is a copy of a report to shareholders of Oppenheimer Variable Account Funds. This report must be preceded or accompanied by a Prospectus of Oppenheimer Variable Account Funds. For material information concerning the Funds, see the Prospectus. -----END PRIVACY-ENHANCED MESSAGE-----