-----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, GOo+HYl5t5W/Vr8DIinCBbPhw+TSl6DMxv9fifMGXfzCxm2Ou//wW55HB8CQNlx7 /VfMQy02VS+8GqLl+16SGA== 0001086144-99-000050.txt : 19990823 0001086144-99-000050.hdr.sgml : 19990823 ACCESSION NUMBER: 0001086144-99-000050 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990820 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04108 FILM NUMBER: 99696536 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 SEMIANNUAL REPORT ------------------------------- Semiannual Report June 30, 1999 ------------------------------- O P P E N H E I M E R Multiple Strategies Fund/VA A Series of Oppenheimer Variable Account Funds [Graphic of Monthly Budget] [OppenheimerFunds(R) Logo] OppenheimerFunds(R) THE RIGHT WAY TO INVEST - -------------------------------------------------------------------------------- Oppenheimer Variable Account Funds--Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- ================================================================================ Objective Oppenheimer Multiple Strategies Fund/VA, a series of Oppenheimer Variable Account Funds, seeks a total investment return, which includes current income and capital appreciation, from investments in common stocks and other equity securities, bonds and other debt securities and money market securities. ================================================================================ Narrative by Richard Rubinstein, Co-Portfolio Manager The Fund's performance during the six-month period that ended June 30, 1999, was strong, reflecting a change in market psychology during the last quarter. Performance improved as the stock market began to demonstrate broad-based strength and several emerging market economies showed signs of stabilization. As a result, for the six-month reporting period, the Fund provided a cumulative total return of 8.47%.(1) Until recently, the U.S. stock market's performance had been dominated by stocks with the largest capitalizations, which continue to sell at historically high prices relative to earnings. Most stocks in the broader market, however, have been selling at relatively low prices relative to earnings. We took advantage of last year's sharp market declines to upgrade our stock portfolio. We focused on technology companies, financial services firms and healthcare companies that, in our opinion, lead their markets. We established these positions with the expectation that the investment environment would be better in the future. In fact, some of these holdings quickly retraced their declines and produced excellent returns. We have since sold some of these holdings, redeploying assets to more attractively valued stocks. In the U.S. stock market, one area that has not worked well is manufacturing and industrial companies. This sector has been adversely affected by the recession in Asia. With recession in Asia, demand has failed to materialize, and much of the new capacity remains unutilized in the chemical, steel, and paper industries, among others. This has created enormous pressure on U.S. manufacturers, who have had to reduce prices to compete with overseas producers. However, we were seeing the beginning of an economic recovery in Asia and conditions remain strong in the United States and Europe. As such, manufacturing and industrial companies should benefit. Therefore, during the period, we acquired stock in several manufacturing and industrial companies that we believe are fundamentally sound and represent attractive values. These include dominant companies in the industrial gases, cement and farm machinery businesses. Bond diversification worked for the portfolio. Treasury prices declined as yields increased, reflecting strong U.S. economic growth. The decline in the U.S. Treasury portion of the portfolio was offset by better performance in high yield bonds and emerging market debts. This reflected a reversal of the trend of the previous six months when demand for Treasuries had forced prices to unprecedented highs compared to other bonds. Though the period has been difficult, the Fund's diversified approach has helped to reduce volatility. Nevertheless, we sense that many investors are frustrated that the multi-sector approach has lagged the performance of large, U.S. growth stocks. In our view, when the marketplace is highly stratified, as it has been over the past several years, that is exactly when you need diversification the most. That's why we believe maintaining a disciplined, diversified approach under a variety of market conditions is part of what makes Oppenheimer Multiple Strategies Fund/VA part of The Right Way to Invest. Because the stock market can be volatile, the Fund's performance may be subject to substantial short-term changes. For updates on the Fund's performance, please contact your financial advisor, call us at 1-800-525-7048 or visit our website, www.oppenheimerfunds.com. 1. Includes changes in net asset value per share and does not include the charges associated with the separate account products, which offer this Fund. Such performance is not annualized and would have been lower if such charges were taken into account. 2 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments June 30, 1999 (Unaudited) - --------------------------------------------------------------------------------
Market Value Shares Note 1 ================================================================================================================================ Common Stocks--49.0% ================================================================================================================================ Basic Materials--2.0% - -------------------------------------------------------------------------------------------------------------------------------- Chemicals--1.1% Bayer AG, Sponsored ADR 34,000 $ 1,414,798 - -------------------------------------------------------------------------------------------------------------------------------- Du Pont (E.I.) De Nemours & Co.(1) 27,000 1,844,437 - -------------------------------------------------------------------------------------------------------------------------------- Goodrich (B.F.) Co. 19,300 820,250 - -------------------------------------------------------------------------------------------------------------------------------- Potash Corp. of Saskatchewan, Inc.(1) 29,500 1,526,625 - -------------------------------------------------------------------------------------------------------------------------------- Praxair, Inc. 23,000 1,125,562 ----------- 6,731,672 - -------------------------------------------------------------------------------------------------------------------------------- Metals--0.3% De Beers Consolidated Mines Ltd., ADR 80,000 1,910,000 - -------------------------------------------------------------------------------------------------------------------------------- Paper--0.6% MacMillan Bloedel Ltd. 130,883 2,330,172 - -------------------------------------------------------------------------------------------------------------------------------- Wausau-Mosinee Paper Corp. 84,000 1,512,000 ----------- 3,842,172 ================================================================================================================================ Capital Goods--1.4% - -------------------------------------------------------------------------------------------------------------------------------- Electrical Equipment--0.2% Honeywell, Inc. 10,500 1,216,687 - -------------------------------------------------------------------------------------------------------------------------------- Industrial Services--0.3% Service Corp. International 100,000 1,925,000 - -------------------------------------------------------------------------------------------------------------------------------- Manufacturing--0.9% Deere & Co. 18,000 713,250 - -------------------------------------------------------------------------------------------------------------------------------- Hexcel Corp.(2) 140,000 1,417,500 - -------------------------------------------------------------------------------------------------------------------------------- Pall Corp. 115,000 2,551,562 - -------------------------------------------------------------------------------------------------------------------------------- Tenneco, Inc. 43,000 1,026,625 ----------- 5,708,937 ================================================================================================================================ Communication Services--2.0% - -------------------------------------------------------------------------------------------------------------------------------- Telecommunications: Long Distance--1.2% AT&T Corp. 20,000 1,116,250 - -------------------------------------------------------------------------------------------------------------------------------- MCI WorldCom, Inc.(2) 49,195 4,233,845 - -------------------------------------------------------------------------------------------------------------------------------- Qwest Communications International, Inc.(1)(2) 50,000 1,653,125 ----------- 7,003,220 - -------------------------------------------------------------------------------------------------------------------------------- Telephone Utilities--0.7% GTE Corp. 15,000 1,136,250 - -------------------------------------------------------------------------------------------------------------------------------- SBC Communications, Inc. 44,000 2,552,000 - -------------------------------------------------------------------------------------------------------------------------------- Tele Norte Leste Participacoes SA 26,250,000 238,374 - -------------------------------------------------------------------------------------------------------------------------------- Telesp Participacoes SA 19,200,000 243,662 ----------- 4,170,286 - -------------------------------------------------------------------------------------------------------------------------------- Telecommunications: Wireless--0.1% Intermedia Communications, Inc.(2) 2,630 78,900 - -------------------------------------------------------------------------------------------------------------------------------- Telesp Celular Participacoes SA 49,150,000 255,044 ----------- 333,944
Oppenheimer Multiple Strategies Fund/VA 3 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Shares Note 1 ================================================================================================================================ Consumer Cyclicals--7.1% - -------------------------------------------------------------------------------------------------------------------------------- Autos & Housing--1.9% Dana Corp. 41,500 $ 1,911,594 - -------------------------------------------------------------------------------------------------------------------------------- IRSA Inversiones y Representaciones SA 288,877 889,854 - -------------------------------------------------------------------------------------------------------------------------------- Lear Corp.(2) 55,000 2,736,250 - -------------------------------------------------------------------------------------------------------------------------------- Owens Corning 68,000 2,337,500 - -------------------------------------------------------------------------------------------------------------------------------- Southdown, Inc. 17,500 1,124,375 - -------------------------------------------------------------------------------------------------------------------------------- Toll Brothers, Inc.(2) 61,000 1,307,687 - -------------------------------------------------------------------------------------------------------------------------------- Wolverine Tube, Inc.(2) 48,000 1,206,000 ----------- 11,513,260 - -------------------------------------------------------------------------------------------------------------------------------- Consumer Services--0.3% Alterra Healthcare Corp.(2) 115,000 1,581,250 - -------------------------------------------------------------------------------------------------------------------------------- Intermedia Communications, Inc.(2)(3) 201 4,824 ----------- 1,586,074 - -------------------------------------------------------------------------------------------------------------------------------- Leisure & Entertainment--2.5% Berjaya Sports Toto Berhad(3) 410,000 949,474 - -------------------------------------------------------------------------------------------------------------------------------- Brunswick Corp. 56,000 1,561,000 - -------------------------------------------------------------------------------------------------------------------------------- Callaway Golf Co. 137,000 2,003,625 - -------------------------------------------------------------------------------------------------------------------------------- Host Marriott Corp. 125,000 1,484,375 - -------------------------------------------------------------------------------------------------------------------------------- International Game Technology 192,500 3,561,257 - -------------------------------------------------------------------------------------------------------------------------------- Mirage Resorts, Inc.(2) 55,000 921,250 - -------------------------------------------------------------------------------------------------------------------------------- Nintendo Co. Ltd. 16,000 2,248,584 - -------------------------------------------------------------------------------------------------------------------------------- Shimano, Inc. 100,000 2,367,061 ----------- 15,096,626 - -------------------------------------------------------------------------------------------------------------------------------- Media--0.2% South China Morning Post Holdings Ltd. 2,258,000 1,265,987 - -------------------------------------------------------------------------------------------------------------------------------- Retail: General--1.0% Federated Department Stores, Inc.(1)(2) 42,500 2,249,844 - -------------------------------------------------------------------------------------------------------------------------------- Neiman Marcus Group, Inc.(2) 79,000 2,029,312 - -------------------------------------------------------------------------------------------------------------------------------- Saks, Inc.(2) 63,000 1,819,125 ----------- 6,098,281 - -------------------------------------------------------------------------------------------------------------------------------- Retail: Specialty--0.8% AutoZone, Inc.(2) 43,000 1,295,375 - -------------------------------------------------------------------------------------------------------------------------------- Barnes & Noble, Inc.(2) 27,000 739,125 - -------------------------------------------------------------------------------------------------------------------------------- Borders Group, Inc.(2) 63,000 996,187 - -------------------------------------------------------------------------------------------------------------------------------- General Nutrition Cos., Inc.(2) 86,000 2,004,875 ----------- 5,035,562 - -------------------------------------------------------------------------------------------------------------------------------- Textile/Apparel & Home Furnishings--0.4% Jones Apparel Group, Inc.(1)(2) 77,000 2,642,062 ================================================================================================================================ Consumer Staples--5.2% - -------------------------------------------------------------------------------------------------------------------------------- Beverages--0.4% Diageo plc 125,800 1,313,728 - -------------------------------------------------------------------------------------------------------------------------------- Whitman Corp. 62,000 1,116,000 ----------- 2,429,728
4 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Shares Note 1 - -------------------------------------------------------------------------------------------------------------------------------- Broadcasting--2.1% CBS Corp.(1)(2) 110,000 $ 4,778,125 - -------------------------------------------------------------------------------------------------------------------------------- MediaOne Group, Inc.(2) 35,000 2,603,125 - -------------------------------------------------------------------------------------------------------------------------------- RCN Corp.(1)(2) 120,000 4,995,000 ----------- 12,376,250 - -------------------------------------------------------------------------------------------------------------------------------- Entertainment--0.9% CBRL Group, Inc. 79,500 1,376,344 - -------------------------------------------------------------------------------------------------------------------------------- Luby's, Inc. 90,000 1,350,000 - -------------------------------------------------------------------------------------------------------------------------------- Time Warner, Inc. 36,000 2,646,000 ----------- 5,372,344 - -------------------------------------------------------------------------------------------------------------------------------- Food--0.4% Groupe Danone 7,500 1,933,638 - -------------------------------------------------------------------------------------------------------------------------------- Nestle SA, Sponsored ADR 6,000 540,529 ----------- 2,474,167 - -------------------------------------------------------------------------------------------------------------------------------- Food & Drug Retailers--0.1% Cia Brasileira de Distribuicao Grupo Pao de Acucar, Sponsored ADR 14,000 261,625 - -------------------------------------------------------------------------------------------------------------------------------- Household Goods--0.7% Fort James Corp. 45,000 1,704,375 - -------------------------------------------------------------------------------------------------------------------------------- Rexall Sundown, Inc.(2) 96,000 1,170,000 - -------------------------------------------------------------------------------------------------------------------------------- Wella AG 2,150 1,390,208 - -------------------------------------------------------------------------------------------------------------------------------- Wella AG, Preference 200 142,316 ----------- 4,406,899 - -------------------------------------------------------------------------------------------------------------------------------- Tobacco--0.6% Philip Morris Cos., Inc. 95,000 3,817,812 ================================================================================================================================ Energy--2.5% - -------------------------------------------------------------------------------------------------------------------------------- Energy Services--1.0% Input/Output, Inc.(2) 193,000 1,459,562 - -------------------------------------------------------------------------------------------------------------------------------- Santa Fe International Corp. 87,000 2,001,000 - -------------------------------------------------------------------------------------------------------------------------------- Schlumberger Ltd.(1) 22,500 1,432,969 - -------------------------------------------------------------------------------------------------------------------------------- Transocean Offshore, Inc. 39,000 1,023,750 ----------- 5,917,281 - -------------------------------------------------------------------------------------------------------------------------------- Oil: Domestic--0.8% Comstock Resources, Inc.(2) 175,000 579,687 - -------------------------------------------------------------------------------------------------------------------------------- Kerr-McGee Corp. 35,000 1,756,562 - -------------------------------------------------------------------------------------------------------------------------------- Unocal Corp. 65,000 2,575,625 ----------- 4,911,874 - -------------------------------------------------------------------------------------------------------------------------------- Oil: International--0.7% Petroleo Brasileiro SA, Preference 3,330,000 512,756 - -------------------------------------------------------------------------------------------------------------------------------- Talisman Energy, Inc.(2) 95,510 2,584,494 - -------------------------------------------------------------------------------------------------------------------------------- Total Fina SA, Sponsored ADR(2) 16,000 1,031,000 ----------- 4,128,250
Oppenheimer Multiple Strategies Fund/VA 5 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Shares Note 1 ================================================================================================================================ Financial--11.0% - -------------------------------------------------------------------------------------------------------------------------------- Banks--6.7% ABN Amro Holding NV 62,700 $ 1,357,878 - -------------------------------------------------------------------------------------------------------------------------------- Banco Frances del Rio de la Plata SA 95,000 631,830 - -------------------------------------------------------------------------------------------------------------------------------- Bank of America Corp. 167,500 12,279,844 - -------------------------------------------------------------------------------------------------------------------------------- Bank One Corp. 38,000 2,263,375 - -------------------------------------------------------------------------------------------------------------------------------- Chase Manhattan Corp.(1) 140,500 12,170,813 - -------------------------------------------------------------------------------------------------------------------------------- Credito Italiano SpA 414,000 1,818,795 - -------------------------------------------------------------------------------------------------------------------------------- J.P. Morgan & Co., Inc.(1) 13,000 1,826,500 - -------------------------------------------------------------------------------------------------------------------------------- Societe Generale 24,000 4,229,871 - -------------------------------------------------------------------------------------------------------------------------------- UBS AG 4,175 1,246,117 - -------------------------------------------------------------------------------------------------------------------------------- Wells Fargo Co. 70,000 2,992,500 ----------- 40,817,523 - -------------------------------------------------------------------------------------------------------------------------------- Diversified Financial--1.2% American Express Co.(1) 10,000 1,301,250 - -------------------------------------------------------------------------------------------------------------------------------- ICICI Ltd., GDR(4) 35,500 368,313 - -------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. 26,000 2,078,375 - -------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co.(1) 25,000 2,562,500 - -------------------------------------------------------------------------------------------------------------------------------- Simon Property Group, Inc. 37,500 951,563 ----------- 7,262,001 - -------------------------------------------------------------------------------------------------------------------------------- Insurance--0.6% ACE Ltd. 55,000 1,553,750 - -------------------------------------------------------------------------------------------------------------------------------- Skandia Forsakrings AB 115,000 2,150,735 ----------- 3,704,485 - -------------------------------------------------------------------------------------------------------------------------------- Real Estate Investment Trusts--2.5% Archstone Communities Trust 52,000 1,140,750 - -------------------------------------------------------------------------------------------------------------------------------- Avalonbay Communities, Inc. 30,732 1,137,084 - -------------------------------------------------------------------------------------------------------------------------------- Brandywine Realty Trust 56,000 1,109,500 - -------------------------------------------------------------------------------------------------------------------------------- Camden Property Trust 40,000 1,110,000 - -------------------------------------------------------------------------------------------------------------------------------- CarrAmerica Realty Corp. 48,000 1,200,000 - -------------------------------------------------------------------------------------------------------------------------------- Chastain Capital Corp. 134,000 887,750 - -------------------------------------------------------------------------------------------------------------------------------- Chelsea GCA Realty, Inc. 32,000 1,188,000 - -------------------------------------------------------------------------------------------------------------------------------- Cornerstone Properties, Inc. 68,000 1,079,500 - -------------------------------------------------------------------------------------------------------------------------------- Developers Diversified Realty Corp. 62,000 1,030,750 - -------------------------------------------------------------------------------------------------------------------------------- JDN Realty Corp. 60,000 1,342,500 - -------------------------------------------------------------------------------------------------------------------------------- Manufactured Home Communities, Inc. 44,000 1,144,000 - -------------------------------------------------------------------------------------------------------------------------------- Post Properties, Inc. 28,000 1,148,000 - -------------------------------------------------------------------------------------------------------------------------------- Shurgard Storage Centers, Inc. 44,000 1,193,500 - -------------------------------------------------------------------------------------------------------------------------------- Sunstone Hotel Investors, Inc. 80,000 680,000 ----------- 15,391,334
6 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Shares Note 1 ================================================================================================================================ Healthcare--4.2% - -------------------------------------------------------------------------------------------------------------------------------- Healthcare/Drugs--3.2% Abbott Laboratories 38,000 $ 1,729,000 - -------------------------------------------------------------------------------------------------------------------------------- American Home Products Corp. 48,500 2,788,750 - -------------------------------------------------------------------------------------------------------------------------------- AstraZeneca Group plc 60,540 2,357,015 - -------------------------------------------------------------------------------------------------------------------------------- Centocor, Inc.(2) 75,000 3,496,875 - -------------------------------------------------------------------------------------------------------------------------------- Merck & Co., Inc. 20,000 1,480,000 - -------------------------------------------------------------------------------------------------------------------------------- Mylan Laboratories, Inc. 105,000 2,782,500 - -------------------------------------------------------------------------------------------------------------------------------- Novartis AG 1,700 2,482,328 - -------------------------------------------------------------------------------------------------------------------------------- Pliva d.d., Sponsored GDR(4) 20,000 301,000 - -------------------------------------------------------------------------------------------------------------------------------- SmithKline Beecham plc, Cl. A, Sponsored ADR 30,000 1,981,875 ----------- 19,399,343 - -------------------------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services--1.0% Acuson Corp.(2) 125,000 2,148,438 - -------------------------------------------------------------------------------------------------------------------------------- HCR Manor Care, Inc.(2) 50,000 1,209,375 - -------------------------------------------------------------------------------------------------------------------------------- Innovasive Devices, Inc.(2) 110,000 357,500 - -------------------------------------------------------------------------------------------------------------------------------- United Healthcare Corp. 32,800 2,054,100 ----------- 5,769,413 ================================================================================================================================ Technology--11.7% - -------------------------------------------------------------------------------------------------------------------------------- Computer Hardware--4.1% 3Com Corp.(2) 63,000 1,681,313 - -------------------------------------------------------------------------------------------------------------------------------- Canon, Inc. 50,000 1,437,587 - -------------------------------------------------------------------------------------------------------------------------------- Cognex Corp.(2) 70,000 2,209,375 - -------------------------------------------------------------------------------------------------------------------------------- Compaq Computer Corp. 22,500 532,969 - -------------------------------------------------------------------------------------------------------------------------------- Hewlett-Packard Co.(1) 36,000 3,618,000 - -------------------------------------------------------------------------------------------------------------------------------- International Business Machines Corp.(1) 118,000 15,251,500 ----------- 24,730,744 - -------------------------------------------------------------------------------------------------------------------------------- Computer Services--0.3% First Data Corp.(1) 35,000 1,712,813 - -------------------------------------------------------------------------------------------------------------------------------- Computer Software--2.3% Computer Associates International, Inc. 53,999 2,969,973 - -------------------------------------------------------------------------------------------------------------------------------- Compuware Corp.(2) 49,100 1,561,994 - -------------------------------------------------------------------------------------------------------------------------------- Electronic Arts, Inc.(1)(2) 25,000 1,356,250 - -------------------------------------------------------------------------------------------------------------------------------- Novell, Inc.(1)(2) 126,000 3,339,000 - -------------------------------------------------------------------------------------------------------------------------------- Peoplesoft, Inc.(2) 51,000 879,750 - -------------------------------------------------------------------------------------------------------------------------------- Rational Software Corp.(1)(2) 44,000 1,449,250 - -------------------------------------------------------------------------------------------------------------------------------- Sabre Group Holdings, Inc.(1)(2) 34,500 2,371,875 - -------------------------------------------------------------------------------------------------------------------------------- Structural Dynamics Research Corp.(2) 167 3,100 ----------- 13,931,192
Oppenheimer Multiple Strategies Fund/VA 7 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Shares Note 1 - -------------------------------------------------------------------------------------------------------------------------------- Communications Equipment--0.4% Cisco Systems, Inc.(1)(2) 41,000 $ 2,641,938 - -------------------------------------------------------------------------------------------------------------------------------- Electronics--4.1% Analog Devices, Inc.(1)(2) 84,000 4,215,750 - -------------------------------------------------------------------------------------------------------------------------------- ASM Lithography Holding NV(1)(2) 23,400 1,389,375 - -------------------------------------------------------------------------------------------------------------------------------- Coherent, Inc.(2) 70,000 1,303,750 - -------------------------------------------------------------------------------------------------------------------------------- General Motors Corp., Cl. H(2) 30,200 1,698,750 - -------------------------------------------------------------------------------------------------------------------------------- Intel Corp.(1) 156,000 9,282,000 - -------------------------------------------------------------------------------------------------------------------------------- Keyence Corp. 8,000 1,399,912 - -------------------------------------------------------------------------------------------------------------------------------- Methode Electronics, Inc., Cl. A 104,000 2,379,000 - -------------------------------------------------------------------------------------------------------------------------------- STMicroelectronics NV, NY Shares 26,400 1,831,500 - -------------------------------------------------------------------------------------------------------------------------------- Teradyne, Inc.(2) 14,000 1,004,500 ------------ 24,504,537 - -------------------------------------------------------------------------------------------------------------------------------- Photography--0.5% Xerox Corp.(1) 48,000 2,835,000 ================================================================================================================================ Transportation--0.9% - -------------------------------------------------------------------------------------------------------------------------------- Air Transportation--0.4% Alaska Air Group, Inc.(1)(2) 29,500 1,231,625 - -------------------------------------------------------------------------------------------------------------------------------- AMR Corp.(2) 16,000 1,092,000 ------------ 2,323,625 - -------------------------------------------------------------------------------------------------------------------------------- Railroads & Truckers--0.3% Burlington Northern Santa Fe Corp. 67,000 2,077,000 - -------------------------------------------------------------------------------------------------------------------------------- Shipping--0.2% Stolt-Nielsen SA 73,000 1,113,250 - -------------------------------------------------------------------------------------------------------------------------------- Stolt-Nielsen SA, Sponsored ADR 17,650 302,256 ------------ 1,415,506 ================================================================================================================================ Utilities--1.0% - -------------------------------------------------------------------------------------------------------------------------------- Electric Utilities--1.0% Allegheny Energy, Inc. 50,500 1,619,156 - -------------------------------------------------------------------------------------------------------------------------------- Reliant Energy, Inc. 80,000 2,210,000 - -------------------------------------------------------------------------------------------------------------------------------- Southern Co. 90,000 2,385,000 - -------------------------------------------------------------------------------------------------------------------------------- 6,214,156 ------------ Total Common Stocks (Cost $197,582,459) 296,906,610 ================================================================================================================================ Preferred Stocks--0.7% - -------------------------------------------------------------------------------------------------------------------------------- Budget Group, Inc., 6.25% Cum. Cv., Non-Vtg.(2)(4) 20,000 695,000 - -------------------------------------------------------------------------------------------------------------------------------- ICG Communications, Inc., 6.75% Cum. Cv., Non-Vtg.(2) 45,000 2,368,125 - -------------------------------------------------------------------------------------------------------------------------------- Intermedia Communications, Inc.: Depositary Shares Representing one one-hundredth 7% Cum. Cv. Jr. Preferred Stock, Series D, Non-Vtg. 30,000 1,233,750 7% Cv. Preferred Securities(4) 5,000 118,125 ------------ Total Preferred Stocks (Cost $5,472,031) 4,415,000 ================================================================================================================================ Other Securities--0.2% - -------------------------------------------------------------------------------------------------------------------------------- Monsanto Co., 6.50% Cv. Adjustable Conversion-rate Equity Security (Cost $1,400,000) 35,000 1,404,375
8 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Market Value Units Note 1 ================================================================================================================================ Rights, Warrants and Certificates--0.0% - -------------------------------------------------------------------------------------------------------------------------------- Banco Frances del Rio de la Plata SA Rts., Exp. 7/99 95,000 $ 190 - -------------------------------------------------------------------------------------------------------------------------------- Covergent Communications, Inc. Wts., Exp. 4/08(3) 2,000 15,250 - -------------------------------------------------------------------------------------------------------------------------------- Gaylord Container Corp. Wts., Exp. 11/02 9,232 69,240 - -------------------------------------------------------------------------------------------------------------------------------- IHF Capital, Inc. Series I Wts., Exp. 11/99(3) 1,000 10 - -------------------------------------------------------------------------------------------------------------------------------- PE Corp. Wts., Cl. G, Exp. 9/03 249 3,237 - -------------------------------------------------------------------------------------------------------------------------------- Terex Corp. Rts., Exp. 5/02(3) 4,000 56,500 ----------- Total Rights, Warrants and Certificates (Cost $20,772) 144,427 Principal Amount(5) ================================================================================================================================ Mortgage-Backed Obligations--2.0% - -------------------------------------------------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg. Participation Certificates, 7%, 5/1/29 $ 4,999,502 4,949,058 - -------------------------------------------------------------------------------------------------------------------------------- Federal National Mortgage Assn., 6.50%, 11/1/27-12/1/27 4,324,490 4,173,307 - -------------------------------------------------------------------------------------------------------------------------------- Government National Mortgage Assn., 8%, 7/15/22-4/15/23 2,340,542 2,411,765 - -------------------------------------------------------------------------------------------------------------------------------- Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 645,042 634,308 ----------- Total Mortgage-Backed Obligations (Cost $12,215,245) 12,168,438 ================================================================================================================================ U.S. Government Obligations--11.5% - -------------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Bonds: 8.875%, 8/15/17 2,900,000 3,694,783 STRIPS, 6.30%, 8/15/25(6) 12,900,000 2,637,237 STRIPS, 6.53%, 8/15/15(6) 7,100,000 2,571,017 STRIPS, 7.10%, 11/15/18(6) 16,000,000 4,721,808 STRIPS, 7.26%, 11/15/18(6) 10,000,000 2,951,130 STRIPS, 7.31%, 8/15/19(6) 18,000,000 5,076,162 - -------------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Nts.: 5.875%, 9/30/02 15,000,000 15,093,750 6.125%, 9/30/00 15,000,000 15,121,875 6.25%, 2/15/07 8,800,000 8,967,754 6.375%, 8/15/02 5,000,000 5,096,875 6.50%, 10/15/06 3,710,000 3,829,417 ----------- Total U.S. Government Obligations (Cost $67,611,608) 69,761,808 ================================================================================================================================ Foreign Government Obligations--22.8% - -------------------------------------------------------------------------------------------------------------------------------- Argentina--6.0% Argentina (Republic of) Bonds: Series BT06, 11.25%, 5/24/04 1,178,000 1,101,724 Series L, 6.04%, 3/31/05(7) 8,556,000 7,293,990 - -------------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of) Nts., 14.25%, 11/30/02(7) 13,125,000 12,796,875 - -------------------------------------------------------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 6%, 3/31/23(7) 23,750,000 15,140,625 ----------- 36,333,214 - -------------------------------------------------------------------------------------------------------------------------------- Australia--0.6% New South Wales Treasury Corp. Gtd. Bonds, 7%, 4/1/04(AUD) 3,160,000 2,157,782 - -------------------------------------------------------------------------------------------------------------------------------- Queensland Treasury Corp. Exchangeable Gtd. Nts., 10.50%, 5/15/03(AUD) 1,800,000 1,374,267 ----------- 3,532,049
Oppenheimer Multiple Strategies Fund/VA 9 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Principal Market Value Amount (5) Note 1 - -------------------------------------------------------------------------------------------------------------------------------- Brazil--4.3% Brazil (Federal Republic of) Capitalization Bonds, 8%, 4/15/14 $21,395,512 $ 13,933,827 - -------------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Eligible Interest Bonds, 5.97%, 4/15/06(7) 15,627,500 12,208,984 ------------ 26,142,811 - -------------------------------------------------------------------------------------------------------------------------------- Canada--2.8% Canada (Government of) Bonds: 8.50%, 4/1/02(CAD) 1,500,000 1,095,492 8.75%, 12/1/05(CAD) 12,200,000 9,691,761 9.75%, 12/1/01(CAD) 3,000,000 2,230,772 9.75%, 6/1/01(CAD) 2,000,000 1,462,196 Series WL43, 5.75%, 6/1/29(CAD) 3,670,000 2,546,054 ------------ 17,026,275 - -------------------------------------------------------------------------------------------------------------------------------- Denmark--0.9% Denmark (Kingdom of) Bonds, 8%, 3/15/06(DKK) 32,100,000 5,328,443 - -------------------------------------------------------------------------------------------------------------------------------- Great Britain--1.2% United Kingdom Treasury Bonds, 6.75%, 11/26/04(GBP) 2,680,000 4,492,739 - -------------------------------------------------------------------------------------------------------------------------------- United Kingdom Treasury Nts., 13%, 7/14/00(GBP) 1,590,000 2,701,810 ------------ 7,194,549 - -------------------------------------------------------------------------------------------------------------------------------- Ireland--0.3% Ireland (Government of) Bonds, 9.25%, 7/11/03(EUR) 1,409,409 1,756,538 - -------------------------------------------------------------------------------------------------------------------------------- Mexico--0.5% United Mexican States Collateralized Fixed Rate Par Bonds, Series W-A, 6.25%, 12/31/19 4,450,000 3,248,500 - -------------------------------------------------------------------------------------------------------------------------------- New Zealand--5.1% New Zealand (Government of) Bonds: 10%, 3/15/02(NZD) 16,800,000 9,848,585 8%, 2/15/01(NZD) 19,440,000 10,728,429 - -------------------------------------------------------------------------------------------------------------------------------- New Zealand (Government of) Nts., 6.50%, 2/15/00(NZD) 18,600,000 9,968,851 ------------ 30,545,865 - -------------------------------------------------------------------------------------------------------------------------------- Philippines--0.4% Philippines (Republic of) Bonds, 8.60%, 6/15/27 1,500,000 1,222,500 - -------------------------------------------------------------------------------------------------------------------------------- Philippines (Republic of) Par Bonds, Series B, 6.50%, 12/1/17(3)(8) 1,675,000 1,444,688 ------------ 2,667,188 - -------------------------------------------------------------------------------------------------------------------------------- Poland--0.4% Poland (Republic of) Bonds, 15%, 10/12/99(PLZ) 9,000,000 2,303,206 - -------------------------------------------------------------------------------------------------------------------------------- South Africa--0.3% Eskom Depositary Receipts, Series E168, 11%, 6/1/08(ZAR) 12,570,000 1,634,453 ------------ Total Foreign Government Obligations (Cost $141,295,441) 137,713,091 ================================================================================================================================ Non-Convertible Corporate Bonds and Notes--5.9% ================================================================================================================================ Basic Materials--1.1% - -------------------------------------------------------------------------------------------------------------------------------- Chemicals--0.4% Lyondell Chemical Co., 10.875% Sr. Sub. Nts., 5/1/09(4) 700,000 731,500 - -------------------------------------------------------------------------------------------------------------------------------- NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 85,000 89,675 - -------------------------------------------------------------------------------------------------------------------------------- Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 500,000 487,500 - -------------------------------------------------------------------------------------------------------------------------------- Sterling Chemicals, Inc., 11.75% Sr. Unsec. Sub. Nts., 8/15/06 535,000 409,275 - -------------------------------------------------------------------------------------------------------------------------------- ZSC Specialty Chemical plc, 11% Sr. Nts., 7/1/09(4) 500,000 506,875 ------------ 2,224,825
10 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Principal Market Value Amount(5) Note 1 - -------------------------------------------------------------------------------------------------------------------------------- Metals--0.4% AK Steel Corp., 9.125% Sr. Nts., 12/15/06 $1,015,000 $1,050,525 - -------------------------------------------------------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 1,000,000 1,025,000 - -------------------------------------------------------------------------------------------------------------------------------- Metallurg, Inc., 11% Sr. Nts., 12/1/07 450,000 434,250 ---------- 2,509,775 - -------------------------------------------------------------------------------------------------------------------------------- Paper--0.3% Aracruz Celulose SA, 10.375% Debs., 1/31/02(3) 430,000 414,950 - -------------------------------------------------------------------------------------------------------------------------------- Riverwood International Corp., 10.625% Sr. Unsec. Nts., 8/1/07 500,000 515,000 - -------------------------------------------------------------------------------------------------------------------------------- SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 750,000 806,250 ---------- 1,736,200 ================================================================================================================================ Capital Goods--0.2% - -------------------------------------------------------------------------------------------------------------------------------- Aerospace/Defense--0.1% Amtran, Inc., 10.50% Sr. Nts., 8/1/04 500,000 502,500 - -------------------------------------------------------------------------------------------------------------------------------- Manufacturing--0.1% International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 500,000 521,250 ================================================================================================================================ Communication Services--1.6% - -------------------------------------------------------------------------------------------------------------------------------- Telecommunications: Long Distance--1.1% Convergent Communications, Inc., 13% Sr. Nts., 4/1/08 500,000 438,125 - -------------------------------------------------------------------------------------------------------------------------------- Global Crossing Ltd., 9.625% Sr. Nts., 5/15/08 750,000 768,750 - -------------------------------------------------------------------------------------------------------------------------------- GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(9) 415,000 342,375 - -------------------------------------------------------------------------------------------------------------------------------- Intermedia Communications, Inc., 8.50% Sr. Nts., Series B, 1/15/08 500,000 460,000 - -------------------------------------------------------------------------------------------------------------------------------- Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts., Series B, 11/15/08 750,000 774,375 - -------------------------------------------------------------------------------------------------------------------------------- NTL, Inc., 0%/9.75% Sr. Deferred Coupon Nts., Series B, 4/1/08(9) 500,000 345,000 - -------------------------------------------------------------------------------------------------------------------------------- PSINet, Inc., 10% Sr. Unsec. Nts., Series B, 2/15/05 1,250,000 1,262,500 - -------------------------------------------------------------------------------------------------------------------------------- Telewest Communications plc: 0%/11% Sr. Disc. Debs., 10/1/07(9) 1,000,000 895,000 9.625% Sr. Debs., 10/1/06 500,000 517,500 - -------------------------------------------------------------------------------------------------------------------------------- Verio, Inc., 11.25% Sr. Nts., 12/1/08 600,000 631,500 ---------- 6,435,125 - -------------------------------------------------------------------------------------------------------------------------------- Telecommunications: Wireless--0.5% Millicom International Cellular SA, 0%/13.50% Sr. Disc. Nts., 6/1/06(9) 750,000 555,000 - -------------------------------------------------------------------------------------------------------------------------------- Omnipoint Corp.: 11.625% Sr. Nts., 8/15/06 535,000 548,375 11.625% Sr. Nts., Series A, 8/15/06 90,000 92,250 - -------------------------------------------------------------------------------------------------------------------------------- ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04 200,000 195,000 - -------------------------------------------------------------------------------------------------------------------------------- Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 750,000 757,500 - -------------------------------------------------------------------------------------------------------------------------------- USA Mobile Communications, Inc. II, 9.50% Sr. Nts., 2/1/04 1,000,000 815,000 ---------- 2,963,125
Oppenheimer Multiple Strategies Fund/VA 11 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Principal Market Value Amount(5) Note 1 ================================================================================================================================ Consumer Cyclicals--0.8% - -------------------------------------------------------------------------------------------------------------------------------- Autos & Housing--0.4% Building Materials Corp. of America, 8.625% Sr. Nts., Series B, 12/15/06 $ 100,000 $ 98,000 - -------------------------------------------------------------------------------------------------------------------------------- Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., Series B, 7/15/07 300,000 246,000 - -------------------------------------------------------------------------------------------------------------------------------- Chrysler Financial LLC, 13.25% Debs., 10/15/99 500,000 509,927 - -------------------------------------------------------------------------------------------------------------------------------- Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 500,000 543,750 - -------------------------------------------------------------------------------------------------------------------------------- Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., Series B, 7/15/02 610,000 460,550 - -------------------------------------------------------------------------------------------------------------------------------- Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04 400,000 390,000 ---------- 2,248,227 - -------------------------------------------------------------------------------------------------------------------------------- Consumer Services--0.0% Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 150,000 155,250 - -------------------------------------------------------------------------------------------------------------------------------- Leisure & Entertainment--0.2% Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05 500,000 473,750 - -------------------------------------------------------------------------------------------------------------------------------- Meristar Hospitality Corp., 8.75% Sr. Sub. Nts., 8/15/07(4) 500,000 477,500 - -------------------------------------------------------------------------------------------------------------------------------- Premier Parks, Inc., 9.75% Sr. Nts., 6/15/07 500,000 507,500 ---------- 1,458,750 - -------------------------------------------------------------------------------------------------------------------------------- Media--0.2% Time Warner Entertainment Co. LP, 10.15% Sr. Nts., 5/1/12 500,000 613,381 - -------------------------------------------------------------------------------------------------------------------------------- Time Warner, Inc., 9.125% Debs., 1/15/13 500,000 571,060 ---------- 1,184,441 ================================================================================================================================ Consumer Staples--1.4% - -------------------------------------------------------------------------------------------------------------------------------- Broadcasting--1.1% American Telecasting, Inc., 14.50% Sr. Disc. Nts., 6/15/04 129,908 137,053 - -------------------------------------------------------------------------------------------------------------------------------- Capstar Broadcasting Partners, Inc., 9.25% Sr. Sub. Nts., 7/1/07 400,000 408,000 - -------------------------------------------------------------------------------------------------------------------------------- Chancellor Media Corp., 8.75% Sr. Unsec. Sub. Nts., Series B, 6/15/07 1,000,000 1,001,250 - -------------------------------------------------------------------------------------------------------------------------------- CSC Holdings, Inc., 9.875% Sr. Sub. Nts., 5/15/06 250,000 266,250 - -------------------------------------------------------------------------------------------------------------------------------- Falcon Holding Group LP, 0%/9.285% Sr. Disc. Debs., Series B, 4/15/10(9) 600,000 423,000 - -------------------------------------------------------------------------------------------------------------------------------- Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts., Series B, 11/1/03(7) 550,000 577,500 - -------------------------------------------------------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 1,000,000 1,076,250 - -------------------------------------------------------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8.75% Sr. Sub. Nts., 12/15/07 500,000 487,500 9% Sr. Unsec. Sub. Nts., 7/15/07 375,000 372,188 - -------------------------------------------------------------------------------------------------------------------------------- TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,063,732 - -------------------------------------------------------------------------------------------------------------------------------- Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 900,000 877,500 ---------- 6,690,223 - -------------------------------------------------------------------------------------------------------------------------------- Food & Drug Retailers--0.2% Fleming Cos., Inc.: 10.50% Sr. Sub. Nts., Series B, 12/1/04 300,000 283,500 10.625% Sr. Sub. Nts., Series B, 7/31/07 560,000 522,200 - -------------------------------------------------------------------------------------------------------------------------------- Randall's Food Markets, Inc., 9.375% Sr. Sub. Nts., Series B, 7/1/07 500,000 527,500 ---------- 1,333,200
12 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - --------------------------------------------------------------------------------
Principal Market Value Amount(5) Note 1 - -------------------------------------------------------------------------------------------------------------------------------- Household Goods--0.1% Revlon Consumer Products Corp.: 8.625% Sr. Unsec. Sub. Nts., 2/1/08 $ 500,000 $ 470,000 9% Sr. Nts., 11/1/06 70,000 69,300 - -------------------------------------------------------------------------------------------------------------------------------- Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., Series B, 10.09%, 3/15/01(6) 260,000 170,300 ------------ 709,600 ================================================================================================================================ Energy--0.1% - -------------------------------------------------------------------------------------------------------------------------------- Energy Services--0.1% Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05(4) 950,000 840,750 ================================================================================================================================ Financial--0.1% - -------------------------------------------------------------------------------------------------------------------------------- Banks--0.1% First Chicago Corp., 11.25% Sub. Nts., 2/20/01 250,000 269,285 ================================================================================================================================ Healthcare--0.0% - -------------------------------------------------------------------------------------------------------------------------------- Healthcare/Drugs--0.0% Integrated Health Services, Inc., 9.50% Sr. Sub. Nts., 9/15/07 170,000 124,950 - -------------------------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services--0.0% Sun Healthcare Group, Inc., 9.375% Sr. Sub. Nts., 5/1/08(4)(10) 1,000,000 180,000 ================================================================================================================================ Transportation--0.2% - -------------------------------------------------------------------------------------------------------------------------------- Air Transportation--0.2% Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 1,000,000 886,250 - -------------------------------------------------------------------------------------------------------------------------------- Shipping--0.0% Navigator Gas Transport plc, 10.50% First Priority Ship Mtg. Nts., 6/30/07(4) 500,000 247,500 ================================================================================================================================ Utilities--0.4% - -------------------------------------------------------------------------------------------------------------------------------- Electric Utilities--0.2% Calpine Corp.: 8.75% Sr. Nts., 7/15/07 400,000 396,000 10.50% Sr. Nts., 5/15/06 800,000 856,000 ------------ 1,252,000 - -------------------------------------------------------------------------------------------------------------------------------- Gas Utilities--0.2% Beaver Valley II Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17 989,000 1,033,505 ------------ Total Non-Convertible Corporate Bonds and Notes (Cost $37,483,215) 35,506,731 ================================================================================================================================ Repurchase Agreements--7.4% - -------------------------------------------------------------------------------------------------------------------------------- Repurchase agreement with First Chicago Capital Markets, 4.80%, dated 6/30/99, to be repurchased at $44,705,960 on 7/1/99, collateralized by U.S. Treasury Nts., 5.50%-8%, 11/30/99-7/15/06, with a value of $37,735,795, U.S. Treasury Bonds, 6%-9.25%, 2/15/16-2/15/26, with a value of $7,902,182 (Cost $44,700,000) 44,700,000 44,700,000 - -------------------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $507,780,770) 99.5% 602,720,480 - -------------------------------------------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.5 3,082,238 ---------- ------------ Net Assets 100.0% $605,802,718 ========== ============
Oppenheimer Multiple Strategies Fund/VA 13 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited)(Continued) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. A sufficient amount of liquid assets has been designated to cover outstanding written options, as follows:
Shares Expiration Exercise Premium Market Value Subject to Call Date Price Received Note 1 - -------------------------------------------------------------------------------------------------------------------------------- ASM Lithography Holding NV 10,000 10/99 $ 55.00 $ 37,128 $ 92,500 Alaska Air Group, Inc. 14,500 10/99 55.00 66,625 9,063 American Express Co. 4,000 10/99 140.00 52,378 31,500 American Express Co. 6,000 10/99 145.00 57,568 33,000 Analog Devices, Inc. 16,800 9/99 45.00 21,545 121,800 CBS Corp. 33,000 10/99 50.00 114,506 53,625 Chase Manhattan Corp. 21,000 9/99 95.00 117,491 57,750 Cisco Systems, Inc. 6,000 10/99 65.00 28,784 36,750 Cisco Systems, Inc. 5,000 10/99 67.50 24,299 20,625 Du Pont (E. I.) De Nemours & Co. 7,000 7/99 65.00 44,415 31,500 Electronic Arts, Inc. 17,400 9/99 55.00 87,050 87,000 Federated Department Stores, Inc. 13,500 8/99 55.00 31,656 31,219 First Data Corp. 13,500 11/99 45.00 48,531 96,187 Hewlett-Packard Co. 5,000 8/99 100.00 29,850 30,000 Hewlett-Packard Co. 10,000 8/99 90.00 26,699 120,000 Intel Corp. 34,000 10/99 75.00 126,477 42,500 International Business Machines Corp. 4,000 10/99 100.00 23,439 124,000 International Business Machines Corp. 40,000 10/99 115.00 33,939 80,500 International Business Machines Corp. 10,000 7/99 115.00 39,099 150,000 J.P. Morgan & Co., Inc. 6,000 9/99 135.00 64,050 78,750 Jones Apparel Group, Inc. 25,000 8/99 35.00 49,248 56,250 Morgan Stanley Dean Witter & Co. 5,000 10/99 120.00 38,600 25,000 Novell, Inc. 37,000 11/99 30.00 105,262 83,250 Potash Corp. of Saskatchewan, Inc. 5,800 9/99 75.00 5,142 363 Qwest Communications International, Inc. 20,000 7/99 37.50 90,947 8,750 Qwest Communications International, Inc. 30,000 10/99 50.00 198,293 22,500 RCN Corp. 16,000 9/99 50.00 91,520 40,000 Rational Software Corp. 22,300 10/99 35.00 117,028 97,562 Sabre Group Holdings, Inc. 10,800 11/99 60.00 109,404 144,450 Schlumberger Ltd. 11,000 11/99 70.00 45,043 46,750 Xerox Corp. 8,000 10/99 65.00 40,759 24,000 ---------- ---------- $1,966,775 $1,877,144 ========== ==========
2. Non-income producing security. 3. Identifies issues considered to be illiquid or restricted--See Note 6 of Notes to Financial Statements. 4. Represents securities sold under Rule 144A, which are 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 $4,466,563 or 0.74% of the Fund's net assets as of June 30, 1999. 5. Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD -- Australian Dollar GBP -- British Pound Sterling CAD -- Canadian Dollar NZD -- New Zealand Dollar DKK -- Danish Krone PLZ -- Polish Zloty EUR -- Euro ZAR -- South African Rand 6. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase. 7. Represents the current interest rate for a variable rate security. 8. Represents the current interest rate for an increasing rate security. 9. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 10. Non-income producing--issuer is in default. See accompanying Notes to Financial Statements. 14 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statement of Assets and Liabilities June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- ================================================================================================= Assets Investments, at value (cost $507,780,770)--see accompanying statement $602,720,480 - ------------------------------------------------------------------------------------------------- Cash 14,720 - ------------------------------------------------------------------------------------------------- Receivables and other assets: Interest 4,838,221 Investments sold 1,789,637 Shares of beneficial interest sold 61,770 Other 3,648 ------------ Total assets 609,428,476 ================================================================================================= Liabilities Options written, at value (premiums received $1,966,775)--see accompanying statement--Note 5 1,877,144 - ------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 1,106,962 Investments purchased 601,638 Shareholder reports 14,596 Custodian fees 12,094 Trustees' compensation 1,009 Transfer and shareholder servicing agent fees 179 Other 12,136 ------------ Total liabilities 3,625,758 ================================================================================================= Net Assets $605,802,718 ============ ================================================================================================= Composition of Net Assets Paid-in capital $475,821,319 - ------------------------------------------------------------------------------------------------- Undistributed net investment income 13,291,371 - ------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions 21,700,792 - ------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 94,989,236 ------------ Net assets--applicable to 35,760,827 shares of beneficial interest outstanding $605,802,718 ============ ================================================================================================= Net Asset Value, Redemption Price Per Share and Offering Price Per Share $16.94
See accompanying Notes to Financial Statements. Oppenheimer Multiple Strategies Fund/VA 15 - -------------------------------------------------------------------------------- Statement of Operations For the Six Months Ended June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- ============================================================================================= Investment Income Interest $12,912,665 - --------------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $7,319) 2,634,175 ----------- Total income 15,546,840 ============================================================================================= Expenses Management fees--Note 4 2,170,040 - --------------------------------------------------------------------------------------------- Custodian fees and expenses 44,114 - --------------------------------------------------------------------------------------------- Legal, auditing and other professional fees 13,707 - --------------------------------------------------------------------------------------------- Trustees' compensation 4,315 - --------------------------------------------------------------------------------------------- Registration and filing fees 3,678 - --------------------------------------------------------------------------------------------- Insurance expenses 2,414 - --------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees--Note 4 1,051 - --------------------------------------------------------------------------------------------- Other 995 ----------- Total expenses 2,240,314 Less expenses paid indirectly--Note 1 (2,136) ----------- Net expenses 2,238,178 ============================================================================================= Net Investment Income 13,308,662 ============================================================================================= Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (including premiums on options exercised) 22,953,159 Closing and expiration of option contracts written--Note 5 (459,293) ----------- Net realized gain 22,493,866 - --------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation on: Investments 15,446,834 Translation of assets and liabilities denominated in foreign currencies (1,968,902) ----------- Net change 13,477,932 ----------- Net realized and unrealized gain 35,971,798 ============================================================================================= Net Increase in Net Assets Resulting from Operations $49,280,460 ===========
See accompanying Notes to Financial Statements. 16 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Statements of Changes in Net Assets - --------------------------------------------------------------------------------
Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ================================================================================================================================ Operations Net investment income $ 13,308,662 $ 25,911,095 - -------------------------------------------------------------------------------------------------------------------------------- Net realized gain 22,493,866 29,540,227 - -------------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation or depreciation 13,477,932 (15,895,873) ------------ ------------ Net increase in net assets resulting from operations 49,280,460 39,555,449 ================================================================================================================================ Dividends and Distributions to Shareholders Dividends from net investment income (20,765,472) (5,964,037) - -------------------------------------------------------------------------------------------------------------------------------- Distributions from net realized gain (30,037,334) (34,591,414) ================================================================================================================================ Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions--Note 2 (15,008,237) (14,211,527) ================================================================================================================================ Net Assets Total decrease (16,530,583) (15,211,529) - -------------------------------------------------------------------------------------------------------------------------------- Beginning of period 622,333,301 637,544,830 ------------ ------------ End of period (including undistributed net investment income of $13,291,371 and $20,748,181, respectively) $605,802,718 $622,333,301 ============ ============
See accompanying Notes to Financial Statements. Oppenheimer Multiple Strategies Fund/VA 17 - -------------------------------------------------------------------------------- Financial Highlights - --------------------------------------------------------------------------------
Six Months Ended June 30, 1999 Year Ended December 31, (Unaudited) 1998 1997 1996 1995 1994 ================================================================================================================================== Per Share Operating Data Net asset value, beginning of period $17.05 $17.01 $15.63 $14.55 $12.91 $13.88 - ---------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .39 .71 .62 .72 .66 .63 Net realized and unrealized gain (loss) .95 .42 1.95 1.45 2.00 (.90) - ---------------------------------------------------------------------------------------------------------------------------------- Total income (loss) from investment operations 1.34 1.13 2.57 2.17 2.66 (.27) - ---------------------------------------------------------------------------------------------------------------------------------- Dividends and distributions to shareholders: Dividends from net investment income (.59) (.16) (.61) (.74) (.65) (.60) Distributions from net realized gain (.86) (.93) (.58) (.35) (.37) (.10) - ---------------------------------------------------------------------------------------------------------------------------------- Total dividends and distributions to shareholders (1.45) (1.09) (1.19) (1.09) (1.02) (.70) - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $16.94 $17.05 $17.01 $15.63 $14.55 $12.91 ====== ====== ====== ====== ====== ====== ================================================================================================================================== Total Return, at Net Asset Value(1) 8.47% 6.66% 17.22% 15.50% 21.36% (1.95)% ================================================================================================================================== Ratios/Supplemental Data Net assets, end of period (in thousands) $605,803 $622,333 $637,545 $484,285 $381,263 $292,067 - ---------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $608,451 $640,131 $564,369 $428,277 $344,745 $279,949 - ---------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:(2) Net investment income 4.41% 4.05% 3.86% 4.89% 4.81% 4.90% Expenses(3) 0.74% 0.76% 0.75% 0.77% 0.77% 0.56% - ---------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate(4) 8% 43% 42% 40% 39% 31%
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 are not annualized for periods of less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 2. Annualized for periods less than one full year. 3. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses paid indirectly by the Fund. Prior year expense ratios have not been adjusted. 4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the period ended June 30, 1999, were $45,249,469 and $77,316,061, respectively. See accompanying Notes to Financial Statements. 18 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) - -------------------------------------------------------------------------------- ================================================================================ 1. Significant Accounting Policies Oppenheimer Multiple Strategies Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), a diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund operated under the name Oppenheimer Multiple Strategies Fund through April 30, 1999. The Fund's investment objective is to seek a high total investment return, which includes current income and capital appreciation in the value of its shares. 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 at the close of the New York Stock Exchange on each trading day. Listed and unlisted securities for which such information is regularly reported are valued at the last sale price of the day or, in the absence of sales, at values based on the closing bid or the last sale price on the prior trading day. Long-term and short-term "non-money market" debt securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities which cannot be valued by an approved portfolio pricing service are valued using dealer-supplied valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the quotes reflect current market value, or are valued under consistently applied procedures established by the Board of Trustees to determine fair value in good faith. Short-term "money market type" debt securities having a remaining maturity of 60 days or less are valued at cost (or last determined market value) adjusted for amortization to maturity of any premium or discount. Options are valued based upon the last sale price on the principal exchange on which the option is traded or, in the absence of any transactions that day, the value is based upon the last sale on the prior trading date if it is within the spread between the closing bid and asked prices. If the last sale price is outside the spread, the closing bid is used. - -------------------------------------------------------------------------------- Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- 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, including any net realized gain on investments not offset by loss carryovers, to shareholders. - -------------------------------------------------------------------------------- Distributions to Shareholders. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. - -------------------------------------------------------------------------------- Classification of Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund. Oppenheimer Multiple Strategies Fund/VA 19 - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited)(Continued) - -------------------------------------------------------------------------------- ================================================================================ 1. Significant Accounting Policies (continued) 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 and dividend income is recorded on the ex-dividend date. Realized gains and losses on investments and options written and unrealized appreciation and depreciation 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, 1999 Year Ended December 31, 1998 ---------------------------------- -------------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------------------- Sold 697,552 $ 11,730,045 3,352,415 $ 56,547,384 Dividends and distributions reinvested 3,209,274 50,802,806 2,387,019 40,555,451 Redeemed (4,643,548) (77,541,088) (6,714,957) (111,314,362) ---------- ------------ ---------- ------------- Net decrease (736,722) $(15,008,237) (975,523) $ (14,211,527) ========== ============ ========== =============
================================================================================ 3. Unrealized Gains and Losses on Securities As of June 30, 1999, net unrealized appreciation on investments and options written of $95,029,341 was composed of gross appreciation of $117,281,001, and gross depreciation of $22,251,660. ================================================================================ 4. Management Fees and Other Transactions with Affiliates Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee of 0.75% of the first $200 million of average annual net assets, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million and 0.60% of average annual net assets over $800 million. The Fund's management fee for the six months ended June 30, 1999 was 0.71% of average annual net assets. 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 at cost. 20 Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) (Continued) - -------------------------------------------------------------------------------- ================================================================================ 5. Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the six months ended June 30, 1999, was as follows:
Call Options ------------------------------------ Number of Amount of Options Premiums - --------------------------------------------------------------------------------------------- Options outstanding as of December 31, 1998 5,871 $1,686,387 Options written 5,036 2,154,702 Options closed or expired (3,911) (893,057) Options exercised (2,680) (981,257) ------ ---------- Options outstanding as of June 30, 1999 4,316 $1,966,775 ====== ==========
================================================================================ 6. Illiquid or Restricted Securities As of June 30, 1999, investments in securities included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of June 30, 1999, was $2,885,696, which represents 0.48% of the Fund's net assets, of which $4,824 is considered restricted. Information concerning restricted securities is as follows:
Valuation Per Acquisition Cost Per Unit as of Security Date Unit June 30, 1999 - -------------------------------------------------------------------------------------------------- Intermedia Communications, Inc. 9/29/98 $21.69 $24.00
Oppenheimer Multiple Strategies Fund/VA 21 - -------------------------------------------------------------------------------- Oppenheimer Multiple Strategies Fund/VA - -------------------------------------------------------------------------------- A Series of Oppenheimer Variable Account Fund
================================================================================================================================= Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, President Robert G. Avis, Trustee William A. Baker, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee John P. Doney, Vice President Michael S. Levine, Vice President Richard H. Rubinstein, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Vice President and Treasurer Robert G. Zack, Assistant Secretary Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer ================================================================================================================================= 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 the independent auditors. This is a copy of a report to shareholders of Oppenheimer Multiple Strategies Fund/VA. This report must be preceded or accompanied by a Prospectus of Oppenheimer Multiple Strategies Fund/VA. For material information concerning the Fund, see the Prospectus. 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.
22 Oppenheimer Multiple Strategies Fund/VA -----END PRIVACY-ENHANCED MESSAGE-----