-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UP4aTOOePfPyEJCX9v1vT4x3CZVmgmopnj6o8jl+5PelWvnpNM9qJiWQeFN6VHz0 /C8KcQ6Xdro4spnGgeoBqw== /in/edgar/work/20000907/0001086144-00-000074/0001086144-00-000074.txt : 20000922 0001086144-00-000074.hdr.sgml : 20000922 ACCESSION NUMBER: 0001086144-00-000074 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000907 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04108 FILM NUMBER: 717808 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 N-30D 1 0001.txt OPPENHEIMER MONEY FUND/VA SAR Semiannual Report June 30, 2000 Oppenheimer Money Fund/VA A Series of Oppenheimer Variable Account Funds [logo]OppenheimerFunds(R) The Right Way to Invest Oppenheimer Variable Account Funds--Oppenheimer Money Fund/VA ================================================================================ Objective Oppenheimer Money Fund/VA, a series of Oppenheimer Variable Account Funds, seeks maximum current income in "money market" securities consistent with low capital risk and the maintenance of liquidity. Money market securities may include short-term government securities, certificates of deposit (CDs), bankers' acceptances and commercial paper. ================================================================================ Narrative by Carol E. Wolf, Portfolio Manager A series of three short-term interest-rate hikes initiated by the Federal Reserve Board ("Fed") marked the six-month period that ended June 30, 2000. Prompted by ongoing inflation concerns, Fed Chairman Alan Greenspan continued to employ a gradual approach to slowing a domestic economy, identified as overheated, by raising rates by a quarter point on two occasions, then concluding with a more aggressive half-point increase. Although this measured course of action, which followed three prior rate hikes in the second half of 1999, at first appeared to produce no tangible signs of cooling, reports toward the end of the period suggested a slight moderation in economic growth. Against this backdrop, Oppenheimer Money Fund/VA produced an annualized yield of 5.43%, and an annualized yield including the effects of compounding of 5.53%, for the half-year period. The Fund's seven-day and compounded seven-day yields on June 30, 2000 were 6.20% and 6.39%, respectively.(1) While the Fund is managed to emphasize liquidity and safety, these returns were generally higher than those reported six months ago, due primarily to higher short-term interest rates during the period. In anticipation of these higher rates, we kept our average maturity short. This enabled us to respond more effectively to changing conditions without incurring undue risk. However, because rates were rising at fairly frequent intervals, there was unprecedented demand for securities with shorter maturities. As supply came under pressure, spreads or differences in yields within our investment universe narrowed significantly. Whereas we had favored these variable-rate vehicles in the past, they proved relatively unattractive throughout most of the period. We were able to find attractive yields in asset-backed commercial paper. The asset-backed programs purchased by our Fund are limited to well-structured, highly liquid programs. These investments typically offered a three- to five-basis-point advantage over comparable commercial paper issued by corporations. All told, asset-backed securities comprised 18.6% of invested assets at period end, constituting our largest area of concentration.(2) Other investments focused on commercial paper issued by high quality financial-services companies, insurers, banks and brokerage firms. Going forward, it's unclear whether the Federal Reserve will need to continue to pursue a tight monetary policy. In our view, investors have already factored in an additional half-point rate increase. The Fed will probably continue to keep a close eye on stock market performance and consumer confidence. We have recently started to purchase securities with maturities in excess of 90 days. We expect to maintain the average maturity of the Fund between 35 and 45 days. Furthermore, we have a significant amount of securities maturing in late June and early July; and, in the event of another rate hike, this should position us to capitalize on the ensuing income opportunity. In closing, we'd like thank you for your continued confidence and participation in Oppenheimer Money Fund/VA. We look forward to helping you reach your financial goals, while seeking to maintain the liquidity and safety of your investment. An investment in money market funds is neither insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. 1. Compounded yields assume reinvestment of dividends, and do not include the charges associated with the separate account products that offer this Fund. Past performance is not indicative of future results. 2. Based on total market value of net assets. 2 Oppenheimer Money Fund/VA Statement of Investments June 30, 2000 (Unaudited)
Principal Value Amount Note 1 ======================================================================================================================= Direct Bank Obligations--2.6% - ----------------------------------------------------------------------------------------------------------------------- Canadian Imperial Bank of Commerce: 6.26%, 7/14/00 $5,000,000 $ 5,000,000 ======================================================================================================================= Letters of Credit--14.5% - ----------------------------------------------------------------------------------------------------------------------- ABN Amro Bank NV, guaranteeing commercial paper of LaSalle Bank NA: 6.78%, 8/30/00 5,000,000 5,000,000 - ----------------------------------------------------------------------------------------------------------------------- Barclays Bank plc, guaranteeing commercial paper of Banco Bradesco SA-Grand Cayman Branch, Series B: 6.61%, 9/19/00 4,000,000 3,941,244 - ----------------------------------------------------------------------------------------------------------------------- Credit Local de France, guaranteeing commercial paper of Dexia CLF Finance Co.: 6.59%, 9/13/00(1) 2,000,000 1,972,908 - ----------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG, guaranteeing commercial paper of Deutsche Bank Financial, Inc.: 6.19%, 7/26/00 5,000,000 4,978,507 - ----------------------------------------------------------------------------------------------------------------------- First Union Corp., guaranteeing commercial paper of First Union National Bank: 6.94%, 5/17/01(2) 5,000,000 5,000,000 - ----------------------------------------------------------------------------------------------------------------------- Keycorp, guaranteeing commercial paper of Key Bank NA: 6.94%, 5/11/01(2) 5,000,000 4,999,140 - ----------------------------------------------------------------------------------------------------------------------- Societe Generale, guaranteeing commercial paper of Societe Generale North America: 6.60%, 9/8/00 2,000,000 1,974,700 ----------- Total Letters of Credit 27,866,499 ======================================================================================================================= Short-Term Notes--85.3% - ----------------------------------------------------------------------------------------------------------------------- Asset-Backed--19.0% AriesOne Metafolio Corp.: 6.56%, 7/6/00(1) 3,000,000 2,997,267 - ----------------------------------------------------------------------------------------------------------------------- Asset Backed Capital Finance, Inc.: 6.63%, 9/11/00(1) 3,000,000 2,960,220 - ----------------------------------------------------------------------------------------------------------------------- Barton Capital Corp.: 6.60%, 7/13/00(1) 4,300,000 4,290,540 - ----------------------------------------------------------------------------------------------------------------------- Breeds Hill Capital Co. LLC, Series A: 6.57%, 7/19/00(1) 3,000,000 2,990,145 - ----------------------------------------------------------------------------------------------------------------------- Corporate Receivables Corp.: 6.57%, 8/11/00(1) 3,000,000 2,977,552 - ----------------------------------------------------------------------------------------------------------------------- Lexington Parker Capital Co. LLC: 6.60%, 7/25/00(1) 4,000,000 3,982,400 - ----------------------------------------------------------------------------------------------------------------------- Moriarty Ltd.: 6.40%, 7/5/00(1) 5,000,000 4,996,444 - ----------------------------------------------------------------------------------------------------------------------- New Center Asset Trust: 6.24%, 7/17/00 5,000,000 4,986,133 - ----------------------------------------------------------------------------------------------------------------------- Scaldis Capital LLC: 6.62%, 9/14/00(1) 3,000,000 2,958,625 - ----------------------------------------------------------------------------------------------------------------------- Sigma Finance, Inc.: 6.39%, 7/3/00(1) 3,500,000 3,498,758 ----------- 36,638,084 - ----------------------------------------------------------------------------------------------------------------------- Beverages--2.6% Coca-Cola Enterprises, Inc.: 6.07%, 7/12/00(1) 5,000,000 4,990,711 Oppenheimer Money Fund/VA 3 Statement of Investments (Unaudited) (Continued) Principal Value Amount Note 1 - ----------------------------------------------------------------------------------------------------------------------- Broker/Dealers--10.0% Banc of America Securities LLC: 7.325%, 8/5/28(2) $5,000,000 $ 5,000,000 - ----------------------------------------------------------------------------------------------------------------------- Bear Stearns Cos., Inc.: 6.699%, 2/14/01(2) 4,000,000 4,000,000 - ----------------------------------------------------------------------------------------------------------------------- Goldman Sachs Group LP, Promissory Nt.: 6.78%, 9/13/00(3) 4,500,000 4,500,000 - ----------------------------------------------------------------------------------------------------------------------- Morgan Stanley, Dean Witter & Co.: 7.125%, 6/8/01(2) 2,800,000 2,800,000 - ----------------------------------------------------------------------------------------------------------------------- Salomon Smith Barney Holdings, Inc.: 6.50%, 8/3/00 3,000,000 2,982,125 ----------- 19,282,125 - ----------------------------------------------------------------------------------------------------------------------- Commercial Finance--5.2% Countrywide Home Loans, Series H: 6.717%, 5/21/01(2) 5,000,000 4,999,566 - ----------------------------------------------------------------------------------------------------------------------- Homeside Lending, Inc.: 6.55%, 7/7/00 5,000,000 4,994,542 ----------- 9,994,108 - ----------------------------------------------------------------------------------------------------------------------- Consumer Services--1.6% Block Financial Corp.: 6.63%, 7/27/00(1) 3,000,000 2,985,635 - ----------------------------------------------------------------------------------------------------------------------- Diversified Financial--12.8% Associates Corp. of North America: 6.94%, 7/3/00 5,330,000 5,327,957 - ----------------------------------------------------------------------------------------------------------------------- General Electric Capital Corp.: 6.68%, 8/30/00 5,000,000 4,944,333 - ----------------------------------------------------------------------------------------------------------------------- Household International, Inc.: 6.61%, 8/18/00(1) 4,900,000 4,856,815 - ----------------------------------------------------------------------------------------------------------------------- National Rural Utilities Cooperative Finance Corp.: 6.18%, 7/18/00 5,000,000 4,985,408 - ----------------------------------------------------------------------------------------------------------------------- Textron Financial Corp.: 6.61%, 8/23/00 4,500,000 4,456,209 ----------- 24,570,722 - ----------------------------------------------------------------------------------------------------------------------- Diversified Media--2.3% Omnicom Finance, Inc.: 6.67%, 7/26/00(1) 4,500,000 4,479,156 - ----------------------------------------------------------------------------------------------------------------------- Electric Utilities--2.1% Edison International: 6.60%, 7/5/00(1) 4,098,000 4,094,995 - ----------------------------------------------------------------------------------------------------------------------- Insurance--14.8% Aegon Funding Corp.: 6.59%, 9/8/00(1) 2,000,000 1,974,700 - ----------------------------------------------------------------------------------------------------------------------- AIG Life Insurance Co.: 6.13%, 5/31/01(2)(3) 3,000,000 3,000,000 - ----------------------------------------------------------------------------------------------------------------------- American General Corp.: 6.50%, 7/14/00 5,000,000 4,988,264 - ----------------------------------------------------------------------------------------------------------------------- Cooperative Assn. of Tractor Dealers, Inc., Series A: 6.63%, 9/15/00 3,000,000 2,958,010 4 Oppenheimer Money Fund/VA Statement of Investments (Unaudited) (Continued) Principal Value Amount Note 1 - ----------------------------------------------------------------------------------------------------------------------- Insurance (continued) Cooperative Assn. of Tractor Dealers, Inc., Series B: 6.67%, 7/25/00 $3,000,000 $ 2,986,660 - ----------------------------------------------------------------------------------------------------------------------- Metropolitan Life Insurance Co.: 6.86%, 12/31/22(2) 3,500,000 3,500,000 - ----------------------------------------------------------------------------------------------------------------------- Pacific Life Insurance Co.: 6.661%, 2/14/03(2)(3) 4,000,000 4,000,000 - ----------------------------------------------------------------------------------------------------------------------- Teachers Insurance & Annuity Assn. of America: 6.62%, 8/1/00(1) 3,000,000 2,982,898 - ----------------------------------------------------------------------------------------------------------------------- Travelers Insurance Co.: 6.615%, 9/16/00(2)(3) 2,000,000 2,000,000 ------------ 28,390,532 - ----------------------------------------------------------------------------------------------------------------------- Leasing & Factoring--2.6% American Honda Finance Corp.: 6.17%, 7/19/00 5,000,000 4,984,575 - ----------------------------------------------------------------------------------------------------------------------- Manufacturing--2.3% Eaton Corp.: 6.70%, 11/8/00(1) 4,500,000 4,391,125 - ----------------------------------------------------------------------------------------------------------------------- Publishing--2.6% Tribune Co.: 6.18%, 7/17/00(1) 5,000,000 4,986,267 - ----------------------------------------------------------------------------------------------------------------------- Special Purpose Financial--1.8% Forrestal Funding Master Trust, Series 2000-A: 6.63%, 7/28/00(4) 3,500,000 3,482,596 - ----------------------------------------------------------------------------------------------------------------------- Telecommunications: Technology--5.6% Alcatel SA: 6.60%, 9/7/00(1) 2,000,000 1,975,067 - ----------------------------------------------------------------------------------------------------------------------- GTE Corp.: 6.60%, 7/19/00(1) 2,000,000 1,993,400 6.64%, 7/28/00(1) 1,850,000 1,840,787 - ----------------------------------------------------------------------------------------------------------------------- SBC Communications, Inc.: 6.17%, 7/17/00(1) 5,000,000 4,986,289 ------------ 10,795,543 ------------ Total Short-Term Notes 164,066,174 - ----------------------------------------------------------------------------------------------------------------------- Total Investments, at Value 102.4% 196,932,673 - ----------------------------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (2.4) (4,528,708) ---------- ------------ Net Assets 100.0% $192,403,965 ========== ============
Short-term notes, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $80,162,704, or 41.66% of the Fund's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. 2. Represents the current interest rate for a variable or increasing rate security. 3. Represents a restricted security which is considered illiquid, by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale. Such securities amount to $13,500,000, or 7.02% of the Fund's net assets. The Fund may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 4. Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $3,482,596 or 1.81% of the Fund's net assets as of June 30, 2000. See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 5 Statement of Assets and Liabilities June 30, 2000 (Unaudited) ============================================================================================== Assets Investments, at value--see accompanying statement $196,932,673 - ---------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 545,454 Interest 334,345 Other 35,725 ------------ Total assets 197,848,197 ============================================================================================== Liabilities Bank overdraft 70,469 - ---------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 4,970,528 Dividends 397,916 Transfer and shareholder servicing agent fees 972 Trustees' compensation 513 Other 3,834 ------------ Total liabilities 5,444,232 ============================================================================================== Net Assets $192,403,965 ============ ============================================================================================== Composition of Net Assets Paid-in capital $192,418,588 - ---------------------------------------------------------------------------------------------- Accumulated net realized loss on investment transactions (14,623) ------------ Net assets--applicable to 192,418,609 shares of beneficial interest outstanding $192,403,965 ============ ============================================================================================== Net Asset Value, Redemption Price and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements. 6 Oppenheimer Money Fund/VA Statement of Operations For the Six Months Ended June 30, 2000 (Unaudited) ========================================================================= Investment Income Interest $6,171,973 ========================================================================= Expenses Management fees 447,236 - ------------------------------------------------------------------------- Custodian fees and expenses 4,801 - ------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 1,835 - ------------------------------------------------------------------------- Trustees' compensation 1,059 - ------------------------------------------------------------------------- Other 20,004 ---------- Total expenses 474,935 Less expenses paid indirectly (4,508) ---------- Net expenses 470,427 ========================================================================= Net Investment Income 5,701,546 ========================================================================= Net Realized Gain on Investments 2,185 ========================================================================= Net Increase in Net Assets Resulting from Operations $5,703,731 ==========
See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 7 Statements of Changes in Net Assets
Six Months Ended Year Ended June 30, 2000 December 31, (Unaudited) 1999 ============================================================================================== Operations Net investment income $ 5,701,546 $ 8,116,875 - ---------------------------------------------------------------------------------------------- Net realized gain 2,185 1,540 ------------ ------------ Net increase in net assets resulting from operations 5,703,731 8,118,415 ============================================================================================== Dividends and/or Distributions to Shareholders (5,701,546) (8,128,189) ============================================================================================== Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions (8,663,877) 49,276,631 ============================================================================================== Net Assets Total increase (decrease) (8,661,692) 49,266,857 - ---------------------------------------------------------------------------------------------- Beginning of period 201,065,657 151,798,800 ------------ ------------ End of period $192,403,965 $201,065,657 ============ ============
See accompanying Notes to Financial Statements. 8 Oppenheimer Money Fund/VA Financial Highlights
Six Months Ended June 30, 2000 Year Ended December 31, (Unaudited) 1999 1998 1997 1996 1995 ========================================================================================================================= Per Share Operating Data Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 - ------------------------------------------------------------------------------------------------------------------------- Income from investment operations--net investment income and net realized gain .03 .05 .05 .05 .05 .06 Dividends and/or distributions to shareholders (.03) (.05) (.05) (.05) (.05) (.06) - ------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== ===== ========================================================================================================================= Total Return(1) 3.04% 4.96% 5.25% 5.31% 5.13% 5.62% ========================================================================================================================= Ratios/Supplemental Data Net assets, end of period (in thousands) $192,404 $201,066 $151,799 $126,782 $129,719 $65,386 - ------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $199,842 $166,727 $137,633 $133,707 $ 99,263 $75,136 - ------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:(2) Net investment income 5.74% 4.87% 5.12% 5.19% 5.01% 5.52% Expenses 0.47% 0.48% 0.50%(3) 0.48%(3) 0.49%(3) 0.51%(3)
1. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 2. Annualized for periods of less than one full year. 3. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 9 Notes to Financial Statements (Unaudited) ================================================================================ 1. Significant Accounting Policies Oppenheimer Money Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek maximum current income from investments in "money market" securities consistent with low capital risk and the maintenance of liquidity. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- Securities Valuation. Portfolio securities are valued on the basis of amortized cost, which approximates market value. - -------------------------------------------------------------------------------- Repurchase Agreements. The Fund requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. - -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. - -------------------------------------------------------------------------------- Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- Other. Investment transactions are accounted for as of trade date. Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. ================================================================================ 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended June 30, 2000 Year Ended December 31, 1999 ------------------------------------- --------------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------------------- Sold 372,522,720 $ 372,522,720 381,258,296 $ 381,258,296 Dividends and/or distributions reinvested 5,760,940 5,760,940 7,983,593 7,983,593 Redeemed (386,947,537) (386,947,537) (339,965,258) (339,965,258) ------------ ------------- ------------ ------------- Net increase (decrease) (8,663,877) $ (8,663,877) 49,276,631 $ 49,276,631 ============ ============= ============ =============
10 Oppenheimer Money Fund/VA Notes to Financial Statements (Unaudited) (Continued) ================================================================================ 3. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust. The annual fees are 0.45% of the first $500 million of average annual net assets, 0.425% of the next $500 million, 0.40% of the next $500 million and 0.375% of average annual net assets in excess of $1.5 billion. The Fund's management fee for the six months ended June 30, 2000, was an annualized rate of 0.45%, before any waiver by the Manager. - -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, is the transfer agent for the Fund and is responsible for maintaining the shareholder registry and shareholder accounting records for the Fund. OFS provides these services for cost. Oppenheimer Money Fund/VA 11 Oppenheimer Money Fund/VA A Series of Oppenheimer Variable Account Funds ==================================================================================================================================== Officers and Trustees James C. Swain, Trustee and Chairman of the Board Bridget A. Macaskill, Trustee and President William L. Armstrong, Trustee Robert G. Avis, Trustee William A. Baker, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Carol E. Wolf, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary ==================================================================================================================================== Investment Advisor OppenheimerFunds, Inc. ==================================================================================================================================== Transfer Agent OppenheimerFunds Services ==================================================================================================================================== Custodian of Portfolio Securities The Bank of New York ==================================================================================================================================== Independent Auditors Deloitte & Touche LLP ==================================================================================================================================== Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent auditors. This is a copy of a report to shareholders of Oppenheimer Money Fund/VA. For other material information concerning the Fund, see its prospectus. This report must be preceded or accompanied by the Fund's prospectus, the separate account prospectus, and current standardized average annual total returns for the separate account being offered. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved. 12 Oppenheimer Money Fund/VA -----END PRIVACY-ENHANCED MESSAGE-----