-----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, DF/t+RgkR3rZvzfEC7BOkLscrRmtH4KBU4NaKH3lgcA/Xg+lYUZdmchmaSdenHhq pRVDiSCzS4bP/42ryifjcw== 0001110538-01-500125.txt : 20010907 0001110538-01-500125.hdr.sgml : 20010907 ACCESSION NUMBER: 0001110538-01-500125 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04108 FILM NUMBER: 1732495 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 mainstreet_smallcap.txt [GRAPHIC] Semiannual Report June 30, 2001 Oppenheimer Main Street(R) Small Cap Fund/VA A Series of Oppenheimer Variable Account Funds [LOGO] Oppenheimer Funds(R) The Right Way to Invest - -------------------------------------------------------------------------------- Oppenheimer Variable Account Funds--Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- ================================================================================ Objective Oppenheimer Main Street(R) Small Cap Fund/VA, a series of Oppenheimer Variable Account Funds, seeks capital appreciation. In seeking its objective, the Fund emphasizes investments of securities in companies with market capitalizations of less than $2.5 billion. ================================================================================ Narrative by Charles Albers and Mark Zavanelli, Co-Portfolio Managers For the six-month period ended June 30, 2001, Oppenheimer Main Street Small Cap Fund/VA provided a cumulative total return of -1.35%.(1) We attribute the disappointing returns to the investment environment, which had changed quickly from one that favored growth-oriented investments to one in which value-oriented companies did best. As of May 1, 2001, a new investment team with a somewhat different approach to stock selection became the new managers of the Fund. We employ a disciplined investment process that combines quantitative and fundamental analysis. On the quantitative side, we use sophisticated mathematical models to evaluate statistics related to more than 2,000 individual small-cap stocks. Our stock scoring system looks at a variety of data to determine which areas of the small-cap stock market offer the best prospects. Further quantitative analysis assigns a ranking to each of the 2,000 stocks according to its prospects over the next six to 12 months. We also evaluate the costs associated with trading each stock under consideration. Of course, small-cap companies are relatively young, and while these stocks may offer greater opportunities for long-term capital appreciation than larger, more established companies, you should be aware that they involve substantially greater risks of loss and price fluctuations. At the beginning of 2001, the previous management team found the most attractive opportunities in momentum stocks; that is, companies whose stock prices are moving higher in response to increasing investor enthusiasm. However, by the time the second quarter of 2001 began, an economic slowdown triggered a major change in which growth stocks fell out of favor. Technology and healthcare stock losses weighed particularly heavily on performance. In healthcare, biotechnology stocks fared poorly. There were some bright spots during the first half of the period, however. The Fund's limited exposure to telecommunications equipment, increased exposure to natural gas companies and several strong stock picks in retail contributed positively to the Fund's performance. During the second quarter of this year, as we began managing the Fund, energy investments did particularly well. Our models detected positive changes in these companies' corporate earnings, so we emphasized energy businesses such as exploration and production companies, oil drillers, refiners and other small energy service businesses. Higher energy prices enabled large integrated oil companies to channel more business to these smaller service companies. Our healthcare investments also prospered, benefiting from greater investor interest in the stocks of companies with lower--but more consistent--earnings growth records. The Fund received particularly good results from health services companies such as hospitals, HMOs, laboratories and physician management companies. On the other hand, the Fund had relatively little exposure to the highly volatile biotechnology area during the second half of the period, primarily because most of these companies did not meet our valuation criteria.(2) In reviewing performance, please remember that past performance cannot guarantee future results. Because of ongoing market volatility, the Fund's performance may be subject to fluctuations, and current performance may be less than the results shown. (1) Includes changes in net asset value per share and reinvestment of dividends and capital gains distributions 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) The Fund's portfolio is subject to change. 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. 2 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Oppenheimer Variable Account Funds--Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- ================================================================================ While the Fund received competitive results from financial services stocks, including insurance companies and asset managers, the financial area's impact on performance was relatively limited because we held a relatively small percentage of these stocks. The Fund also did not participate in strong returns produced by utilities because our models suggested that there were better opportunities elsewhere. Looking forward, we are optimistic about the long-term prospects for small-cap stocks. The shift in market sentiment toward smaller companies should persist, in our view. Valuations of many small-cap stocks continue to be lower than their large-cap counterparts, and we believe that small-cap stock prices will rise as that gap narrows. In light of varying investment environments, and regardless of whether growth or value stocks are in favor at any given moment, we are confident that our quantitative models should respond effectively by identifying the small companies likely to prosper. In our opinion, this flexibility is a very important part of what makes Oppenheimer Main Street Small Cap Fund/VA The Right Way to Invest. Oppenheimer Main Street Small Cap Fund/VA 3 - -------------------------------------------------------------------------------- Statement of Investments June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 =============================================================================== Common Stocks--98.3% - ------------------------------------------------------------------------------- Basic Materials--4.0% - ------------------------------------------------------------------------------- Chemicals--1.8% Airgas, Inc.(1) 1,500 $ 17,850 - ------------------------------------------------------------------------------- Arch Chemicals, Inc. 900 19,647 - ------------------------------------------------------------------------------- Cabot Corp. 1,300 46,826 - ------------------------------------------------------------------------------- Cabot Microelectronics Corp.(1) 300 18,600 - ------------------------------------------------------------------------------- Calgon Carbon Corp. 500 3,925 - ------------------------------------------------------------------------------- ChemFirst, Inc. 1,100 28,820 - ------------------------------------------------------------------------------- H.B. Fuller Co. 700 34,930 - ------------------------------------------------------------------------------- Lubrizol Corp. (The) 500 15,525 - ------------------------------------------------------------------------------- Minerals Technologies, Inc. 1,000 42,920 - ------------------------------------------------------------------------------- Octel Corp.(1) 700 11,375 - ------------------------------------------------------------------------------- SCP Pool Corp.(1) 900 30,996 - ------------------------------------------------------------------------------- Universal Corp. 700 27,762 ----------- 299,176 - ------------------------------------------------------------------------------- Gold & Precious Minerals--0.3% Stillwater Mining Co.(1) 1,400 40,950 - ------------------------------------------------------------------------------- Metals--1.1% Aviall, Inc.(1) 2,200 24,134 - ------------------------------------------------------------------------------- Century Aluminum Co. 1,900 30,476 - ------------------------------------------------------------------------------- CIRCOR International, Inc. 1,600 28,880 - ------------------------------------------------------------------------------- NS Group, Inc.(1) 1,700 22,695 - ------------------------------------------------------------------------------- Titanium Metal Corp.(1) 2,800 28,000 - ------------------------------------------------------------------------------- UCAR International, Inc.(1) 2,200 26,290 - ------------------------------------------------------------------------------- Walter Industries, Inc. 2,200 26,180 ----------- 186,655 - ------------------------------------------------------------------------------- Paper--0.8% Glatfelter (P.H.) Co. 2,000 28,520 - ------------------------------------------------------------------------------- Louisiana-Pacific Corp. 700 8,211 - ------------------------------------------------------------------------------- Pactiv Corp.(1) 4,100 54,940 - ------------------------------------------------------------------------------- Rayonier, Inc. 700 32,515 ----------- 124,186 - ------------------------------------------------------------------------------- Capital Goods--10.2% - ------------------------------------------------------------------------------- Aerospace/Defense--0.9% American Axle & Manufacturing Holdings, Inc.(1) 400 6,800 - ------------------------------------------------------------------------------- DRS Technologies, Inc.(1) 1,700 39,066 - ------------------------------------------------------------------------------- Intermagnetics General Corp. 800 25,920 - ------------------------------------------------------------------------------- Moog, Inc., Cl. A(1) 800 31,160 - ------------------------------------------------------------------------------- Precision Castparts Corp. 1,100 41,162 ----------- 144,108 4 Oppenheimer Main Street Small Cap FunD/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Electrical Equipment--0.9% BEI Technologies, Inc. 1,700 $ 45,917 - ------------------------------------------------------------------------------- CLARCOR, Inc. 300 8,055 - ------------------------------------------------------------------------------- EMCOR Group, Inc.(1) 1,200 43,380 - ------------------------------------------------------------------------------- Encore Wire Corp.(1) 400 4,748 - ------------------------------------------------------------------------------- Genlyte Group, Inc. (The)(1) 1,000 30,910 - ------------------------------------------------------------------------------- Interlogix, Inc.(1) 300 10,950 - ------------------------------------------------------------------------------- Lennox International, Inc. 500 5,475 ----------- 149,435 - ------------------------------------------------------------------------------- Industrial Services--4.0% Coinstar, Inc.(1) 2,400 53,400 - ------------------------------------------------------------------------------- Corporate Executive Board Co.(1) 900 37,800 - ------------------------------------------------------------------------------- Exponent, Inc.(1) 3,900 42,042 - ------------------------------------------------------------------------------- Granite Construction, Inc. 1,200 30,504 - ------------------------------------------------------------------------------- ICT Group, Inc.(1) 1,000 17,400 - ------------------------------------------------------------------------------- Lincoln Electric Holdings, Inc. 1,300 33,150 - ------------------------------------------------------------------------------- McDermott International, Inc. 3,700 43,105 - ------------------------------------------------------------------------------- Mobile Mini, Inc.(1) 600 19,788 - ------------------------------------------------------------------------------- National Processing, Inc.(1) 1,500 42,000 - ------------------------------------------------------------------------------- Navigant Consulting, Inc.(1) 4,700 38,540 - ------------------------------------------------------------------------------- Pittston Brink's Group 1,300 28,977 - ------------------------------------------------------------------------------- Planar Systems, Inc.(1) 900 23,310 - ------------------------------------------------------------------------------- Right Management Consultants, Inc.(1) 900 23,490 - ------------------------------------------------------------------------------- Stericycle, Inc.(1) 700 32,865 - ------------------------------------------------------------------------------- Sylvan Learning Systems, Inc.(1) 2,200 53,460 - ------------------------------------------------------------------------------- Teekay Shipping Corp. 600 24,012 - ------------------------------------------------------------------------------- Tetra Technologies, Inc.(1) 1,800 44,010 - ------------------------------------------------------------------------------- TRC Cos., Inc.(1) 400 16,068 - ------------------------------------------------------------------------------- URS Corp.(1) 1,300 35,100 - ------------------------------------------------------------------------------- Wackenhut Corrections Corp.(1) 1,700 22,270 ----------- 661,291 - ------------------------------------------------------------------------------- Manufacturing--4.4% AEP Industries, Inc. 600 21,204 - ------------------------------------------------------------------------------- Albany International Corp., Cl. A 1,000 18,900 - ------------------------------------------------------------------------------- American Woodmark Corp. 300 11,526 - ------------------------------------------------------------------------------- Ameron International Corp. 300 20,025 - ------------------------------------------------------------------------------- AptarGroup, Inc. 1,400 45,402 - ------------------------------------------------------------------------------- Astronics Corp. 1,000 15,230 - ------------------------------------------------------------------------------- Ball Corp. 1,000 47,560 - ------------------------------------------------------------------------------- Columbia Sportswear Co.(1) 450 22,945 - ------------------------------------------------------------------------------- Donaldson Co., Inc. 1,200 37,380 - ------------------------------------------------------------------------------- Flowserve Corp.(1) 1,600 49,200 - ------------------------------------------------------------------------------- Interpool, Inc. 600 9,420 Oppenheimer Main Street Small Cap Fund/VA 5 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Manufacturing (continued) Ivex Packaging Corp.(1) 2,900 $ 55,100 - ------------------------------------------------------------------------------- Knight Transportation, Inc.(1) 1,650 33,907 - ------------------------------------------------------------------------------- Matthews International Corp., Cl. A 900 39,571 - ------------------------------------------------------------------------------- Maverick Tube Corp.(1) 700 11,865 - ------------------------------------------------------------------------------- NACCO Industries, Inc., Cl. A 500 38,995 - ------------------------------------------------------------------------------- NCH Corp. 500 19,550 - ------------------------------------------------------------------------------- Oakley, Inc.(1) 2,100 38,850 - ------------------------------------------------------------------------------- Paxar Corp.(1) 500 7,200 - ------------------------------------------------------------------------------- Roper Industries, Inc. 200 8,350 - ------------------------------------------------------------------------------- Silgan Holdings, Inc.(1) 300 5,268 - ------------------------------------------------------------------------------- Stewart & Stevenson Services, Inc. 1,500 49,500 - ------------------------------------------------------------------------------- Tecumseh Products Co., Cl. A 600 29,700 - ------------------------------------------------------------------------------- Tennant Co. 700 28,000 - ------------------------------------------------------------------------------- Woodward Governor Co. 600 50,610 - ------------------------------------------------------------------------------- Zygo Corp.(1) 600 13,350 ----------- 728,608 - ------------------------------------------------------------------------------- Communication Services--2.1% - ------------------------------------------------------------------------------- Telecommunications: Long Distance--2.1% Boston Communications Group, Inc.(1) 3,100 44,640 - ------------------------------------------------------------------------------- General Cable Corp. 2,900 53,795 - ------------------------------------------------------------------------------- General Communication, Inc., Cl. A(1) 2,500 30,250 - ------------------------------------------------------------------------------- Illuminet Holdings, Inc.(1) 2,500 78,625 - ------------------------------------------------------------------------------- Lightbridge, Inc.(1) 2,600 50,440 - ------------------------------------------------------------------------------- Metro One Telecommunication, Inc.(1) 600 38,922 - ------------------------------------------------------------------------------- SymmetriCom, Inc.(1) 2,700 39,528 ----------- 336,200 - ------------------------------------------------------------------------------- Consumer Cyclicals--19.7% - ------------------------------------------------------------------------------- Autos & Housing--4.4% Apogee Enterprises, Inc. 1,300 16,237 - ------------------------------------------------------------------------------- Applica, Inc.(1) 2,000 15,920 - ------------------------------------------------------------------------------- Beazer Homes USA, Inc.(1) 200 12,698 - ------------------------------------------------------------------------------- Centex Corp. 200 8,150 - ------------------------------------------------------------------------------- Crossmann Communities, Inc. 800 31,752 - ------------------------------------------------------------------------------- Dal-Tile International, Inc.(1) 2,800 51,940 - ------------------------------------------------------------------------------- Direct Focus, Inc.(1) 2,400 114,000 - ------------------------------------------------------------------------------- Group 1 Automotive, Inc.(1) 700 20,720 - ------------------------------------------------------------------------------- Hovnanian Enterprises, Inc., Cl. A(1) 500 7,255 - ------------------------------------------------------------------------------- Kennametal, Inc. 1,100 40,590 - ------------------------------------------------------------------------------- Lancaster Colony Corp. 900 29,682 - ------------------------------------------------------------------------------- M.D.C. Holdings, Inc. 800 28,320 - ------------------------------------------------------------------------------- NVR, Inc.(1) 200 29,600 - ------------------------------------------------------------------------------- Pep Boys-Manny, Moe & Jack 800 8,984 - ------------------------------------------------------------------------------- Polaris Industries, Inc. 400 18,320 6 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Consumer Cyclicals (continued) Pulte Homes, Inc. 700 $ 29,841 - ------------------------------------------------------------------------------- Ryland Group, Inc. (The) 900 45,540 - ------------------------------------------------------------------------------- Schuler Homes, Inc.(1) 800 10,832 - ------------------------------------------------------------------------------- Selective Insurance Group, Inc. 1,100 29,348 - ------------------------------------------------------------------------------- Superior Industries International, Inc. 1,000 38,300 - ------------------------------------------------------------------------------- Toro Co. (The) 900 40,455 - ------------------------------------------------------------------------------- Universal Forest Products, Inc. 1,800 40,500 - ------------------------------------------------------------------------------- Watsco, Inc. 700 9,870 - ------------------------------------------------------------------------------- York International Corp. 1,400 49,028 ----------- 727,882 - ------------------------------------------------------------------------------- Consumer Services--1.6% Ambassadors International, Inc. 1,100 27,170 - ------------------------------------------------------------------------------- AmeriPath, Inc.(1) 1,100 32,230 - ------------------------------------------------------------------------------- Boron, LePore & Associates, Inc.(1) 1,900 26,182 - ------------------------------------------------------------------------------- Dun & Bradstreet Corp.(1) 1,100 31,020 - ------------------------------------------------------------------------------- Expedia, Inc., Cl. A(1) 1,000 46,600 - ------------------------------------------------------------------------------- FTI Consulting, Inc.(1) 1,500 32,700 - ------------------------------------------------------------------------------- Midas, Inc. 1,000 12,600 - ------------------------------------------------------------------------------- Rent-A-Center, Inc.(1) 300 15,780 - ------------------------------------------------------------------------------- Rightchoice Managed Care, Inc.(1) 500 22,200 - ------------------------------------------------------------------------------- Watson Wyatt & Co. Holdings(1) 1,000 23,380 ----------- 269,862 - ------------------------------------------------------------------------------- Leisure & Entertainment--3.6% Action Performance Cos., Inc.(1) 1,200 30,000 - ------------------------------------------------------------------------------- Activision, Inc.(1) 900 35,325 - ------------------------------------------------------------------------------- Alliance Gaming Corp.(1) 400 15,708 - ------------------------------------------------------------------------------- Anchor Gaming(1) 800 51,696 - ------------------------------------------------------------------------------- Arctic Cat, Inc. 400 5,800 - ------------------------------------------------------------------------------- Argosy Gaming Co.(1) 1,600 44,416 - ------------------------------------------------------------------------------- Boyd Gaming Corp.(1) 1,500 8,625 - ------------------------------------------------------------------------------- Callaway Golf Co. 1,700 26,860 - ------------------------------------------------------------------------------- Choice Hotels International, Inc.(1) 1,900 28,500 - ------------------------------------------------------------------------------- Galileo International, Inc. 1,200 39,000 - ------------------------------------------------------------------------------- GTech Holdings Corp.(1) 1,300 46,163 - ------------------------------------------------------------------------------- Handleman Co.(1) 2,500 41,875 - ------------------------------------------------------------------------------- MTR Gaming Group, Inc.(1) 2,500 33,750 - ------------------------------------------------------------------------------- Pegasus Solutions, Inc.(1) 800 9,240 - ------------------------------------------------------------------------------- Penn National Gaming, Inc.(1) 2,700 68,580 - ------------------------------------------------------------------------------- ResortQuest International, Inc.(1) 1,200 13,800 - ------------------------------------------------------------------------------- Shuffle Master, Inc.(1) 2,700 56,700 - ------------------------------------------------------------------------------- WMS Industries, Inc.(1) 1,200 38,604 ----------- 594,642 Oppenheimer Main Street Small Cap Fund/VA 7 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Media--1.2% Banta Corp. 1,700 $ 49,810 - ------------------------------------------------------------------------------- Deluxe Corp. 1,700 49,130 - ------------------------------------------------------------------------------- Harland (John H.) Co. 1,600 37,280 - ------------------------------------------------------------------------------- Lee Enterprises, Inc. 600 19,800 - ------------------------------------------------------------------------------- R.H. Donnelley Corp.(1) 1,500 48,000 ----------- 204,020 - ------------------------------------------------------------------------------- Retail: General--0.6% Dress Barn, Inc. (The)(1) 1,200 27,300 - ------------------------------------------------------------------------------- Stein Mart, Inc.(1) 1,900 19,646 - ------------------------------------------------------------------------------- Stoneridge, Inc.(1) 1,200 12,900 - ------------------------------------------------------------------------------- Tuesday Morning Corp.(1) 2,200 29,150 - ------------------------------------------------------------------------------- Value City Department Stores, Inc.(1) 800 9,200 ----------- 98,196 - ------------------------------------------------------------------------------- Retail: Specialty--6.1% 1-800 CONTACTS, Inc.(1) 1,400 34,706 - ------------------------------------------------------------------------------- American Eagle Outfitters, Inc.(1) 1,100 38,764 - ------------------------------------------------------------------------------- Buckle, Inc. (The)(1) 400 7,560 - ------------------------------------------------------------------------------- Burlington Coat Factory Warehouse Corp. 1,000 20,000 - ------------------------------------------------------------------------------- Cato Corp., Cl. A 2,500 48,800 - ------------------------------------------------------------------------------- Charlotte Russe Holding, Inc.(1) 1,800 48,240 - ------------------------------------------------------------------------------- Chico's FAS, Inc.(1) 850 25,288 - ------------------------------------------------------------------------------- Christopher & Banks Corp.(1) 1,100 35,860 - ------------------------------------------------------------------------------- Circuit City Stores, Inc.-CarMax Group(1) 2,900 46,284 - ------------------------------------------------------------------------------- Copart, Inc.(1) 1,800 52,650 - ------------------------------------------------------------------------------- Elizabeth Arden, Inc.(1) 1,100 26,851 - ------------------------------------------------------------------------------- Fossil, Inc.(1) 2,300 47,725 - ------------------------------------------------------------------------------- Fred's, Inc. 1,375 35,406 - ------------------------------------------------------------------------------- Genesco, Inc.(1) 1,000 33,600 - ------------------------------------------------------------------------------- Guitar Center, Inc.(1) 1,500 31,695 - ------------------------------------------------------------------------------- Hibbett Sporting Goods, Inc.(1) 800 29,648 - ------------------------------------------------------------------------------- Hot Topic, Inc.(1) 1,300 40,430 - ------------------------------------------------------------------------------- J. Jill Group, Inc.(1) 2,300 46,575 - ------------------------------------------------------------------------------- Lands' End, Inc.(1) 500 20,075 - ------------------------------------------------------------------------------- Michaels Stores, Inc.(1) 700 28,700 - ------------------------------------------------------------------------------- Movado Group, Inc. 500 10,100 - ------------------------------------------------------------------------------- O'Reilly Automotive, Inc.(1) 1,600 45,920 - ------------------------------------------------------------------------------- Reebok International Ltd.(1) 1,700 54,315 - ------------------------------------------------------------------------------- Regis Corp. of Minnesota 1,500 31,485 - ------------------------------------------------------------------------------- Ross Stores, Inc. 1,300 31,135 - ------------------------------------------------------------------------------- Skechers U.S.A., Inc., Cl. A(1) 1,600 46,768 - ------------------------------------------------------------------------------- Smart & Final, Inc.(1) 2,600 28,600 - ------------------------------------------------------------------------------- UniFirst Corp. 1,200 22,800 - ------------------------------------------------------------------------------- Wet Seal, Inc., Cl. A(1) 600 20,766 - ------------------------------------------------------------------------------- Wolverine World Wide, Inc. 1,000 17,870 ----------- 1,008,616 8 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Textile/Apparel & Home Furnishings--2.2% bebe stores, inc.(1) 200 $ 5,832 - ------------------------------------------------------------------------------- Coach, Inc.(1) 400 15,220 - ------------------------------------------------------------------------------- Deb Shops, Inc. 2,000 37,540 - ------------------------------------------------------------------------------- Hancock Fabrics, Inc. 1,400 12,530 - ------------------------------------------------------------------------------- Nautica Enterprises, Inc.(1) 2,300 46,989 - ------------------------------------------------------------------------------- OshKosh B'Gosh, Inc., Cl. A 400 13,300 - ------------------------------------------------------------------------------- Phillips-Van Heusen Corp. 2,400 34,560 - ------------------------------------------------------------------------------- Polo Ralph Lauren Corp.(1) 1,100 28,380 - ------------------------------------------------------------------------------- Quaker Fabric Corp.(1) 4,200 43,050 - ------------------------------------------------------------------------------- Quicksilver, Inc.(1) 1,300 32,500 - ------------------------------------------------------------------------------- Too, Inc.(1) 2,100 57,540 - ------------------------------------------------------------------------------- Vans, Inc.(1) 1,400 32,900 ----------- 360,341 - ------------------------------------------------------------------------------- Consumer Staples--8.9% - ------------------------------------------------------------------------------- Beverages--0.4% Constellation Brands, Inc., Cl. A(1) 800 32,800 - ------------------------------------------------------------------------------- Cott Corp.(1) 2,900 32,016 ----------- 64,816 - ------------------------------------------------------------------------------- Broadcasting--0.4% Crown Media Holdings, Inc., Cl. A(1) 1,500 27,825 - ------------------------------------------------------------------------------- Saga Communications, Inc., Cl. A(1) 200 4,748 - ------------------------------------------------------------------------------- Salem Communications Corp., Cl. A(1) 1,700 37,196 ----------- 69,769 - ------------------------------------------------------------------------------- Education--1.2% Corinthian Colleges, Inc.(1) 700 32,949 - ------------------------------------------------------------------------------- ITT Educational Services, Inc.(1) 1,700 76,500 - ------------------------------------------------------------------------------- New Horizons Worldwide, Inc.(1) 2,000 29,880 - ------------------------------------------------------------------------------- Strayer Education, Inc. 1,000 48,750 ----------- 188,079 - ------------------------------------------------------------------------------- Entertainment--3.8% AFC Enterprises, Inc.(1) 1,000 19,150 - ------------------------------------------------------------------------------- Applebee's International, Inc. 1,500 48,000 - ------------------------------------------------------------------------------- Aztar Corp.(1) 2,200 26,620 - ------------------------------------------------------------------------------- Bob Evans Farms, Inc. 700 12,600 - ------------------------------------------------------------------------------- Buca, Inc.(1) 1,500 32,625 - ------------------------------------------------------------------------------- CBRL Group, Inc. 1,500 25,425 - ------------------------------------------------------------------------------- CEC Entertainment, Inc.(1) 800 39,480 - ------------------------------------------------------------------------------- Cheesecake Factory, Inc. (The)(1) 1,050 29,715 - ------------------------------------------------------------------------------- Landry's Restaurants, Inc. 1,300 22,100 - ------------------------------------------------------------------------------- LodgeNet Entertainment Corp.(1) 600 10,500 - ------------------------------------------------------------------------------- Lone Star Steakhouse & Saloon, Inc. 2,400 31,176 - ------------------------------------------------------------------------------- P.F. Chang's China Bistro, Inc.(1) 1,100 41,690 - ------------------------------------------------------------------------------- Panera Bread Co., Cl. A 1,400 44,198 Oppenheimer Main Street Small Cap Fund/VA 9 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Entertainment (continued) Papa John's International, Inc.(1) 700 $ 17,745 - ------------------------------------------------------------------------------- Rare Hospitality International, Inc.(1) 1,400 31,640 - ------------------------------------------------------------------------------- Ruby Tuesday, Inc. 2,300 39,330 - ------------------------------------------------------------------------------- Ryan's Family Steak Houses, Inc.(1) 2,400 29,400 - ------------------------------------------------------------------------------- Sonic Corp.(1) 1,600 50,768 - ------------------------------------------------------------------------------- THQ, Inc.(1) 1,300 77,519 ------------ 629,681 - ------------------------------------------------------------------------------- Food--1.4% American Italian Pasta Co.(1) 1,500 69,600 - ------------------------------------------------------------------------------- Dreyer's Grand Ice Cream, Inc. 200 5,580 - ------------------------------------------------------------------------------- Fresh Del Monte Produce, Inc.(1) 2,200 24,266 - ------------------------------------------------------------------------------- Green Mountain Coffee, Inc.(1) 400 11,952 - ------------------------------------------------------------------------------- J & J Snack Foods Corp.(1) 200 4,430 - ------------------------------------------------------------------------------- Lance, Inc. 3,000 40,500 - ------------------------------------------------------------------------------- Nash Finch Co. 1,500 35,400 - ------------------------------------------------------------------------------- Nature's Sunshine Products, Inc. 1,000 11,830 - ------------------------------------------------------------------------------- O'Charley's, Inc.(1) 1,400 27,132 ----------- 230,690 - ------------------------------------------------------------------------------- Food & Drug Retailers--0.6% Duane Reade, Inc.(1) 800 26,000 - ------------------------------------------------------------------------------- Fleming Cos., Inc. 1,000 35,700 - ------------------------------------------------------------------------------- Pathmark Stores, Inc.(1) 1,500 36,900 ----------- 98,600 - ------------------------------------------------------------------------------- Household Goods--0.8% Church & Dwight Co., Inc. 1,500 38,175 - ------------------------------------------------------------------------------- Dial Corp. (The) 2,900 41,325 - ------------------------------------------------------------------------------- Nu Skin Asia Pacific, Inc., Cl. A 3,900 33,150 - ------------------------------------------------------------------------------- Ruddick Corp. 1,000 16,950 ----------- 129,600 - ------------------------------------------------------------------------------- Tobacco--0.3% DIMON, Inc. 3,300 33,000 - ------------------------------------------------------------------------------- Standard Commercial Corp. 500 8,530 ----------- 41,530 - ------------------------------------------------------------------------------- Energy--7.6% - ------------------------------------------------------------------------------- Energy Services--2.8% Arch Coal, Inc. 200 5,174 - ------------------------------------------------------------------------------- Cal Dive International, Inc.(1) 1,300 31,980 - ------------------------------------------------------------------------------- Covanta Energy Corp.(1) 2,300 42,458 - ------------------------------------------------------------------------------- Ensign Resource Service Group, Inc. 6,000 59,502 - ------------------------------------------------------------------------------- Grey Wolf, Inc.(1) 11,800 47,200 - ------------------------------------------------------------------------------- Headwaters, Inc.(1) 2,300 36,800 10 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Energy Services (continued) National-Oilwell, Inc.(1) 700 $ 18,760 - ------------------------------------------------------------------------------- Oceaneering International, Inc.(1) 1,900 39,425 - ------------------------------------------------------------------------------- Patterson-UTI Energy, Inc.(1) 2,900 51,823 - ------------------------------------------------------------------------------- Peabody Energy Corp.(1) 100 3,275 - ------------------------------------------------------------------------------- Piedmont Natural Gas Co., Inc. 1,200 42,624 - ------------------------------------------------------------------------------- Superior Energy Services, Inc.(1) 3,900 30,810 - ------------------------------------------------------------------------------- Tesco Corp.(1) 3,000 33,803 - ------------------------------------------------------------------------------- Tidewater, Inc. 600 22,620 ------------ 466,254 - ------------------------------------------------------------------------------- Oil: Domestic--2.8% Brown (Tom), Inc.(1) 600 14,400 - ------------------------------------------------------------------------------- Carbo Ceramics, Inc. 800 29,640 - ------------------------------------------------------------------------------- Denbury Resources, Inc.(1) 400 3,760 - ------------------------------------------------------------------------------- FMC Technologies, Inc.,(1) 600 12,390 - ------------------------------------------------------------------------------- Frontier Oil Corp. 2,600 34,450 - ------------------------------------------------------------------------------- Holly Corp. 700 25,725 - ------------------------------------------------------------------------------- HS Resources, Inc.(1) 600 38,880 - ------------------------------------------------------------------------------- Ocean Energy, Inc. 1,600 27,920 - ------------------------------------------------------------------------------- Patina Oil & Gas Corp. 600 15,900 - ------------------------------------------------------------------------------- Pennzoil-Quaker State Co. 1,400 15,680 - ------------------------------------------------------------------------------- Quicksilver Resources, Inc.(1) 1,300 23,400 - ------------------------------------------------------------------------------- Spinnaker Exploration Co.(1) 600 23,916 - ------------------------------------------------------------------------------- Sunoco, Inc. 800 29,304 - ------------------------------------------------------------------------------- Swift Energy Co.(1) 1,200 36,156 - ------------------------------------------------------------------------------- Tesoro Petroleum Corp.(1) 1,900 23,940 - ------------------------------------------------------------------------------- Ultramar Diamond Shamrock Corp. 1,000 47,250 - ------------------------------------------------------------------------------- Unit Corp.(1) 3,300 52,305 ----------- 455,016 - ------------------------------------------------------------------------------- Oil: International--2.0% Canadian Hunter Exploration Ltd.(1) 1,600 39,009 - ------------------------------------------------------------------------------- Compton Petroleum Corp.(1) 8,000 23,089 - ------------------------------------------------------------------------------- Lufkin Industries, Inc. 400 11,040 - ------------------------------------------------------------------------------- Paramount Resources Ltd.(1) 4,000 39,273 - ------------------------------------------------------------------------------- Penn West Petroleum Ltd.(1) 700 17,989 - ------------------------------------------------------------------------------- Rio Alto Exploration Ltd.(1) 1,800 31,135 - ------------------------------------------------------------------------------- Talisman Energy, Inc. 600 22,832 - ------------------------------------------------------------------------------- Torch Offshore, Inc.(1) 1,600 15,920 - ------------------------------------------------------------------------------- Trican Well Service Ltd.(1) 3,000 37,065 - ------------------------------------------------------------------------------- Varco International, Inc.(1) 1,200 22,332 - ------------------------------------------------------------------------------- Velvet Exploration Ltd.(1) 14,000 74,077 ----------- 333,761 Oppenheimer Main Street Small Cap Fund/VA 11 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Financial--20.0% - ------------------------------------------------------------------------------- Banks--11.2% 1st Source Corp. 1,500 $ 42,000 - ------------------------------------------------------------------------------- American Financial Holdings, Inc. 1,400 33,040 - ------------------------------------------------------------------------------- American Home Mortgage Holdings, Inc. 2,000 23,810 - ------------------------------------------------------------------------------- Arrow Financial Corp. 100 2,525 - ------------------------------------------------------------------------------- Associated Banc-Corp 600 21,594 - ------------------------------------------------------------------------------- BancFirst Corp. 700 28,175 - ------------------------------------------------------------------------------- BancorpSouth, Inc. 1,000 17,000 - ------------------------------------------------------------------------------- Banner Corp. 900 19,800 - ------------------------------------------------------------------------------- BOK Financial Corp. 800 21,520 - ------------------------------------------------------------------------------- Boston Private Financial Holdings, Inc. 600 13,440 - ------------------------------------------------------------------------------- Capitol Federal Financial 1,800 34,794 - ------------------------------------------------------------------------------- City National Corp. 700 31,003 - ------------------------------------------------------------------------------- Coastal Bancorp, Inc. 1,500 47,940 - ------------------------------------------------------------------------------- Commerce Bancshares, Inc. 700 25,830 - ------------------------------------------------------------------------------- Commercial Federal Corp. 1,300 30,030 - ------------------------------------------------------------------------------- Community Banks, Inc. 400 11,940 - ------------------------------------------------------------------------------- Community First Bankshares, Inc. 1,000 23,000 - ------------------------------------------------------------------------------- Connecticut Bancshares, Inc. 300 7,854 - ------------------------------------------------------------------------------- Cullen/Frost Bankers, Inc. 700 23,695 - ------------------------------------------------------------------------------- Dime Community Bancshares 1,500 50,880 - ------------------------------------------------------------------------------- Downey Financial Corp. 200 9,452 - ------------------------------------------------------------------------------- F.N.B. Corp. 1,700 50,150 - ------------------------------------------------------------------------------- First BanCorp 1,700 45,883 - ------------------------------------------------------------------------------- First Commonwealth Financial Corp. 2,400 36,000 - ------------------------------------------------------------------------------- First Financial Bankshares, Inc. 1,000 31,000 - ------------------------------------------------------------------------------- First Indiana Corp. 1,200 31,236 - ------------------------------------------------------------------------------- First Midwest Bancorp, Inc. 1,000 29,650 - ------------------------------------------------------------------------------- First Republic Bank(1) 1,300 31,850 - ------------------------------------------------------------------------------- First Sentinel Bancorp, Inc. 3,900 52,923 - ------------------------------------------------------------------------------- Frontier Financial Corp. 400 11,200 - ------------------------------------------------------------------------------- Glacier Bancorp, Inc. 1,800 34,200 - ------------------------------------------------------------------------------- Harbor Florida Bancshares, Inc. 2,700 51,705 - ------------------------------------------------------------------------------- Hibernia Corp., Cl. A 2,700 48,060 - ------------------------------------------------------------------------------- Independence Community Bank Corp. 1,800 35,532 - ------------------------------------------------------------------------------- Independent Bank Corp.-Massachusetts 1,800 35,532 - ------------------------------------------------------------------------------- Independent Bank Corp.-Michigan 1,800 44,190 - ------------------------------------------------------------------------------- International Bancshares Corp. 1,000 42,000 - ------------------------------------------------------------------------------- Irwin Financial Corp. 2,200 55,330 12 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Banks (continued) MAF Bancorp, Inc. 1,500 $ 46,050 - ------------------------------------------------------------------------------- Main Street Banks, Inc. 500 8,840 - ------------------------------------------------------------------------------- Mississippi Valley Bancshares, Inc. 800 31,920 - ------------------------------------------------------------------------------- NBT Bancorp, Inc. 1,800 34,740 - ------------------------------------------------------------------------------- Pacific Northwest Bancorp 2,500 62,475 - ------------------------------------------------------------------------------- Prosperity Bancshares, Inc. 2,000 47,860 - ------------------------------------------------------------------------------- Provident Bankshares Corp. 1,300 32,422 - ------------------------------------------------------------------------------- R & G Financial Corp., Cl. B 1,500 24,075 - ------------------------------------------------------------------------------- Republic Bancorp, Inc. 3,100 43,090 - ------------------------------------------------------------------------------- Roslyn Bancorp, Inc. 1,700 44,710 - ------------------------------------------------------------------------------- S&T Bancorp, Inc. 1,300 35,100 - ------------------------------------------------------------------------------- Sandy Spring Bancorp, Inc. 1,000 32,200 - ------------------------------------------------------------------------------- Second Bancorp, Inc. 500 11,450 - ------------------------------------------------------------------------------- South Financial Group, Inc. (The) 1,200 22,656 - ------------------------------------------------------------------------------- St. Francis Capital Corp. 100 2,185 - ------------------------------------------------------------------------------- Staten Island Bancorp, Inc. 1,200 33,420 - ------------------------------------------------------------------------------- Sterling Bancorp 400 12,240 - ------------------------------------------------------------------------------- UCBH Holdings, Inc. 1,500 45,525 - ------------------------------------------------------------------------------- Umpqua Holdings Corp. 100 1,281 - ------------------------------------------------------------------------------- United Bankshares, Inc. 1,900 50,920 - ------------------------------------------------------------------------------ United National Bancorp 1,400 31,752 ----------- 1,840,674 - ------------------------------------------------------------------------------- Diversified Financial--2.7% Actrade Financial Technologies Ltd.(1) 1,400 33,096 - ------------------------------------------------------------------------------- American Capital Strategies Ltd. 1,400 39,284 - ------------------------------------------------------------------------------- AmeriCredit Corp.(1) 200 10,390 - ------------------------------------------------------------------------------- Centennial Bancorp 1,300 10,725 - ------------------------------------------------------------------------------- Doral Financial Corp. 1,400 48,020 - ------------------------------------------------------------------------------- eFunds Corp.(1) 1,500 27,900 - ------------------------------------------------------------------------------- Federal Agricultural Mortgage Corp., Non-Vtg.(1) 1,100 35,178 - ------------------------------------------------------------------------------- Financial Federal Corp.(1) 1,200 34,740 - ------------------------------------------------------------------------------- First American Corp. (The) 800 15,152 - ------------------------------------------------------------------------------- IBERIABANK Corp. 900 26,595 - ------------------------------------------------------------------------------- Jefferies Group, Inc. 900 29,160 - ------------------------------------------------------------------------------- Jones Lang LaSalle, Inc.(1) 2,300 30,360 - ------------------------------------------------------------------------------- Resource America, Inc., Cl. A 800 10,480 - ------------------------------------------------------------------------------- Resource Bancshares Mortgage Group, Inc. 3,800 27,740 - ------------------------------------------------------------------------------- Student Loan Corp. 400 27,900 - ------------------------------------------------------------------------------- WFS Financial, Inc.(1) 1,400 43,050 ----------- 449,770 Oppenheimer Main Street Small Cap Fund/VA 13 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Insurance--3.4% AmerUs Group Co. 1,400 $ 49,658 - ------------------------------------------------------------------------------- Annuity & Life RE Holdings Ltd. 700 25,025 - ------------------------------------------------------------------------------- Commerce Group, Inc. (The) 1,300 47,827 - ------------------------------------------------------------------------------- Everest Re Group Ltd. 500 37,400 - ------------------------------------------------------------------------------- Fidelity National Financial, Inc. 1,200 29,484 - ------------------------------------------------------------------------------- Gallagher (Arthur J.) & Co. 1,100 28,600 - ------------------------------------------------------------------------------- Harleysville Group, Inc. 1,600 47,600 - ------------------------------------------------------------------------------- HealthExtras, Inc.(1) 700 6,636 - ------------------------------------------------------------------------------- Hilb, Rogal & Hamilton Co. 700 30,625 - ------------------------------------------------------------------------------- Kansas City Life Insurance Co. 800 32,000 - ------------------------------------------------------------------------------- LandAmerica Financial Group, Inc. 900 28,665 - ------------------------------------------------------------------------------- Leucadia National Corp. 300 9,735 - ------------------------------------------------------------------------------- Old Republic International Corp. 1,000 29,000 - ------------------------------------------------------------------------------- Phoenix Cos., Inc. (The)(1) 400 7,440 - ------------------------------------------------------------------------------- RenaissanceRe Holdings Ltd. 300 22,230 - ------------------------------------------------------------------------------- StanCorp Financial Group, Inc. 1,000 47,390 - ------------------------------------------------------------------------------- Trenwick Group Ltd. 1,400 32,088 - ------------------------------------------------------------------------------- Vesta Insurance Group, Inc. 1,400 15,330 - ------------------------------------------------------------------------------- Willis Group Holdings Ltd.(1) 1,300 23,075 ------------ 549,808 - ------------------------------------------------------------------------------- Real Estate Investment Trusts--0.2% Indymac Mortgage Holdings, Inc. 1,300 34,840 - ------------------------------------------------------------------------------- Savings & Loans--2.5% BankAtlantic Bancorp, Inc. 4,100 35,629 - ------------------------------------------------------------------------------- BankUnited Financial Corp., Cl. A(1) 900 12,645 - ------------------------------------------------------------------------------- CFS Bancorp, Inc. 1,000 13,830 - ------------------------------------------------------------------------------- Commonwealth Bancorp, Inc. 700 12,509 - ------------------------------------------------------------------------------- Fidelity Bankshares, Inc. 2,416 34,766 - ------------------------------------------------------------------------------- First Essex Bancorp, Inc. 900 22,248 - ------------------------------------------------------------------------------- First Financial Holdings, Inc. 1,400 32,200 - ------------------------------------------------------------------------------- First Niagara Financial Group, Inc. 2,300 35,719 - ------------------------------------------------------------------------------- FirstFed Financial Corp.(1) 1,000 29,800 - ------------------------------------------------------------------------------- Flagstar Bancorp, Inc. 1,900 39,710 - ------------------------------------------------------------------------------- Flushing Financial Corp. 700 16,737 - ------------------------------------------------------------------------------- Hudson River Bancorp, Inc. 1,300 23,530 - ------------------------------------------------------------------------------- Local Financial Corp.(1) 1,400 18,060 - ------------------------------------------------------------------------------- Washington Federal, Inc. 1,500 36,780 - ------------------------------------------------------------------------------- Webster Financial Corp. 1,200 39,336 ------------ 403,499 14 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Healthcare--13.6% - ------------------------------------------------------------------------------- Healthcare/Drugs--4.7% AmSurg Corp., Cl. A(1) 1,000 $ 29,550 - ------------------------------------------------------------------------------- Arena Pharmaceuticals, Inc.(1) 1,000 30,490 - ------------------------------------------------------------------------------- ArQule, Inc.(1) 600 12,996 - ------------------------------------------------------------------------------- Charles River Laboratories International, Inc.(1) 700 24,325 - ------------------------------------------------------------------------------- CIMA Labs, Inc.(1) 400 31,400 - ------------------------------------------------------------------------------- Cubist Pharmaceuticals, Inc.(1) 300 11,400 - ------------------------------------------------------------------------------- CV Therapeutics, Inc.(1) 400 22,800 - ------------------------------------------------------------------------------- Delta & Pine Land Co. 200 3,930 - ------------------------------------------------------------------------------- Diagnostic Products Corp. 800 26,560 - ------------------------------------------------------------------------------- Edwards Lifesciences Corp.(1) 1,900 50,084 - ------------------------------------------------------------------------------- Idexx Laboratories, Inc.(1) 900 28,125 - ------------------------------------------------------------------------------- Impax Laboratories, Inc.(1) 600 7,320 - ------------------------------------------------------------------------------- Kos Pharmaceuticals, Inc.(1) 100 3,950 - ------------------------------------------------------------------------------- OSI Pharmaceuticals, Inc.(1) 200 10,518 - ------------------------------------------------------------------------------- Owens & Minor, Inc. 800 15,200 - ------------------------------------------------------------------------------- Perrigo Co.(1) 3,600 60,084 - ------------------------------------------------------------------------------- Respironics, Inc.(1) 1,400 41,664 - ------------------------------------------------------------------------------- SangStat Medical Corp.(1) 1,200 19,656 - ------------------------------------------------------------------------------- Scios-Nova, Inc.(1) 2,000 50,020 - ------------------------------------------------------------------------------- Serologicals Corp.(1) 2,300 49,082 - ------------------------------------------------------------------------------- Sicor, Inc.(1) 1,900 43,890 - ------------------------------------------------------------------------------- Syncor International Corp.(1) 700 21,700 - ------------------------------------------------------------------------------- Taro Pharmaceutical Industries Ltd.(1) 500 43,780 - ------------------------------------------------------------------------------- U.S. Physical Therapy, Inc.(1) 3,000 47,910 - ------------------------------------------------------------------------------- V.I. Technologies, Inc.(1) 600 7,710 - ------------------------------------------------------------------------------- ViroPharma, Inc.(1) 800 27,200 - ------------------------------------------------------------------------------- XOMA Ltd.(1) 3,100 52,886 ----------- 774,230 - ------------------------------------------------------------------------------- Healthcare/Supplies & Services--8.9% Accredo Health, Inc.(1) 850 31,612 - ------------------------------------------------------------------------------- AdvancePCS(1) 700 44,835 - ------------------------------------------------------------------------------- Apria Healthcare Group, Inc.(1) 1,600 46,160 - ------------------------------------------------------------------------------- Beverly Enterprises, Inc.(1) 4,300 46,010 - ------------------------------------------------------------------------------- Brown & Brown, Inc. 700 29,393 - ------------------------------------------------------------------------------- Cantel Medical Corp.(1) 1,000 26,860 - ------------------------------------------------------------------------------- Caremark RX, Inc.(1) 2,700 44,415 - ------------------------------------------------------------------------------- CONMED Corp.(1) 1,000 26,050 - ------------------------------------------------------------------------------- Cooper Cos., Inc. (The) 700 35,980 Oppenheimer Main Street Small Cap Fund/VA 15 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - -------------------------------------------------------------------------------- Healthcare/Supplies & Services (continued) CorVel Corp.(1) 1,200 $ 44,700 - ------------------------------------------------------------------------------- Covance, Inc.(1) 3,300 74,745 - ------------------------------------------------------------------------------- Cytyc Corp.(1) 1,200 27,660 - ------------------------------------------------------------------------------- Datascope Corp. 800 36,872 - ------------------------------------------------------------------------------- DaVita, Inc.(1) 2,400 48,792 - ------------------------------------------------------------------------------- DIANON Systems, Inc.(1) 300 13,650 - ------------------------------------------------------------------------------- Dynacq International, Inc.(1) 1,300 24,999 - ------------------------------------------------------------------------------- First Health Group Corp.(1) 1,400 33,768 - ------------------------------------------------------------------------------- Gentiva Health Services, Inc.(1) 2,300 41,400 - ------------------------------------------------------------------------------- Haemonetics Corp.(1) 1,300 39,650 - ------------------------------------------------------------------------------- ICU Medical, Inc.(1) 1,000 41,280 - ------------------------------------------------------------------------------- Ladish Co., Inc.(1) 2,600 34,762 - ------------------------------------------------------------------------------- Landauer, Inc. 400 12,000 - ------------------------------------------------------------------------------ Longs Drug Stores, Inc. 1,000 21,550 - ------------------------------------------------------------------------------- Manor Care, Inc.(1) 1,800 57,150 - ------------------------------------------------------------------------------- Mid Atlantic Medical Services, Inc.(1) 2,200 39,446 - ------------------------------------------------------------------------------- Ocular Sciences, Inc.(1) 1,600 40,640 - ------------------------------------------------------------------------------- Option Care, Inc.(1) 1,800 27,360 - ------------------------------------------------------------------------------- Oxford Health Plans, Inc.(1) 900 25,740 - ------------------------------------------------------------------------------- Pediatrix Medical Group, Inc.(1) 900 29,880 - ------------------------------------------------------------------------------- Pharmaceutical Product Development, Inc.(1) 1,200 36,612 - ------------------------------------------------------------------------------- ResMed, Inc.(1) 700 35,385 - ------------------------------------------------------------------------------- Schein (Henry), Inc.(1) 1,200 48,072 - ------------------------------------------------------------------------------- Sola International, Inc.(1) 2,500 35,275 - ------------------------------------------------------------------------------- SRI/Surgical Express, Inc.(1) 700 21,287 - ------------------------------------------------------------------------------- SurModics, Inc.(1) 600 35,280 - ------------------------------------------------------------------------------- Sybron Dental Specialities, Inc.(1) 1,900 38,931 - ------------------------------------------------------------------------------- Theragenics Corp.(1) 2,000 22,340 - ------------------------------------------------------------------------------- Unilab Corp.(1) 400 10,080 - ------------------------------------------------------------------------------- United Surgical Partners International, Inc.(1) 700 16,800 - ------------------------------------------------------------------------------- Universal Health Services, Inc., Cl. B(1) 500 22,750 - ------------------------------------------------------------------------------- Urocor, Inc.(1) 400 6,260 - ------------------------------------------------------------------------------- Urologix, Inc.(1) 1,000 18,310 - ------------------------------------------------------------------------------- Varian Medical Systems, Inc.(1) 500 35,750 - ------------------------------------------------------------------------------- Vital Signs, Inc. 1,100 36,355 ----------- 1,466,846 16 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Technology--7.9% - ------------------------------------------------------------------------------- Computer Hardware--1.1% 3D Systems Corp.(1) 2,600 $ 44,200 - ------------------------------------------------------------------------------- Daktronics, Inc.(1) 2,400 36,936 - ------------------------------------------------------------------------------- Integral Systems, Inc.(1) 300 7,239 - ------------------------------------------------------------------------------- Intergraph Corp.(1) 3,000 46,200 - ------------------------------------------------------------------------------- Mentor Graphics Corp.(1) 600 10,500 - ------------------------------------------------------------------------------- Mercury Computer Systems, Inc.(1) 400 17,640 - ------------------------------------------------------------------------------- MTS Systems Corp. 400 5,516 - ------------------------------------------------------------------------------- Pixelworks, Inc.(1) 400 14,296 - ------------------------------------------------------------------------------- Wilson Greatbatch Technologies, Inc.(1) 100 2,900 ----------- 185,427 - ------------------------------------------------------------------------------- Computer Services--1.8% American Management Systems, Inc.(1) 700 16,520 - ------------------------------------------------------------------------------- CACI International, Inc., Cl. A(1) 1,300 61,100 - ------------------------------------------------------------------------------- F.Y.I., Inc.(1) 600 24,600 - ------------------------------------------------------------------------------- FactSet Research Systems, Inc. 600 21,420 - ------------------------------------------------------------------------------- Global Payments, Inc. 2,000 60,200 - ------------------------------------------------------------------------------- MedQuist, Inc.(1) 1,600 47,488 - ------------------------------------------------------------------------------- SkillSoft Corp.(1) 400 13,700 - ------------------------------------------------------------------------------- Travelocity.com, Inc.(1) 400 12,280 - ------------------------------------------------------------------------------- Websense, Inc.(1) 1,600 32,000 ----------- 289,308 - ------------------------------------------------------------------------------- Computer Software--3.1% Ansoft Corp.(1) 3,000 51,000 - ------------------------------------------------------------------------------- ANSYS, Inc.(1) 1,000 18,720 - ------------------------------------------------------------------------------- Axcelis Technologies, Inc.(1) 2,900 42,920 - ------------------------------------------------------------------------------- Catapult Communications Corp.(1) 1,700 38,250 - ------------------------------------------------------------------------------- Century Business Services, Inc.(1) 4,400 23,760 - ------------------------------------------------------------------------------- EPIQ Systems, Inc.(1) 1,200 30,828 - ------------------------------------------------------------------------------- Fair, Isaac & Co., Inc. 700 43,274 - ------------------------------------------------------------------------------- IDX Systems Corp.(1) 1,400 16,814 - ------------------------------------------------------------------------------- Innodata Corp.(1) 4,800 14,784 - ------------------------------------------------------------------------------- Manhattan Associates, Inc.(1) 100 3,975 - ------------------------------------------------------------------------------- MSC.Software Corp.(1) 300 5,625 - ------------------------------------------------------------------------------- Numerical Technologies, Inc.(1) 700 14,700 - ------------------------------------------------------------------------------- Open Text Corp.(1) 1,700 39,899 - ------------------------------------------------------------------------------- PEC Solutions, Inc.(1) 1,300 28,730 - ------------------------------------------------------------------------------- PLATO Learning, Inc.(1) 900 27,855 - ------------------------------------------------------------------------------- ProQuest Co.(1) 300 9,300 - ------------------------------------------------------------------------------- Schawk, Inc. 1,000 10,200 - ------------------------------------------------------------------------------- Structural Dynamics Research Corp.(1) 1,000 24,500 - ------------------------------------------------------------------------------- Sunquest Information Systems, Inc.(1) 600 14,274 - ------------------------------------------------------------------------------- TALX Corp. 1,400 55,930 ------------ 515,338 Oppenheimer Main Street Small Cap Fund/VA 17 - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Communications Equipment--0.4% Anixter International, Inc.(1) 1,100 $ 33,770 - ------------------------------------------------------------------------------- Black Box Corp.(1) 100 6,736 - ------------------------------------------------------------------------------- ESCO Technologies, Inc.(1) 700 21,105 ------------ 61,611 - ------------------------------------------------------------------------------- Electronics--1.5% Analogic Corp. 500 22,775 - ------------------------------------------------------------------------------- Bio-Rad Laboratories, Inc., Cl. A(1) 300 14,940 - ------------------------------------------------------------------------------- Checkpoint Systems, Inc.(1) 1,100 19,580 - ------------------------------------------------------------------------------- EDO Corp. 1,000 15,950 - ------------------------------------------------------------------------------- Electro Scientific Industries, Inc.(1) 900 34,290 - ------------------------------------------------------------------------------- Engineered Support Systems, Inc. 500 19,595 - ------------------------------------------------------------------------------- InterCept Group, Inc. (The)(1) 1,400 53,200 - ------------------------------------------------------------------------------- Itron, Inc.(1) 1,200 22,764 - ------------------------------------------------------------------------------- Monolithic System Technology, Inc.(1) 2,600 28,730 - ------------------------------------------------------------------------------- Universal Electronics, Inc.(1) 1,200 21,600 ----------- 253,424 - ------------------------------------------------------------------------------- Transportation--2.1% - ------------------------------------------------------------------------------- Air Transportation--0.4% Atlantic Coast Airlines Holdings, Inc.(1) 2,000 59,980 - ------------------------------------------------------------------------------- Railroads & Truckers--1.3% Arnold Industries, Inc. 2,200 42,592 - ------------------------------------------------------------------------------- Heartland Express, Inc.(1) 2,500 57,000 - ------------------------------------------------------------------------------- Quixote Corp. 1,500 42,855 - ------------------------------------------------------------------------------- RailAmerica, Inc.(1) 2,800 31,976 - ------------------------------------------------------------------------------- Werner Enterprises, Inc. 1,400 33,950 ----------- 208,373 - ------------------------------------------------------------------------------- Shipping--0.4% OMI Corp.(1) 3,900 21,879 - ------------------------------------------------------------------------------- Overseas Shipholding Group, Inc. 900 27,486 - ------------------------------------------------------------------------------- Roadway Corp. 300 7,131 ----------- 56,496 - ------------------------------------------------------------------------------- Utilities--2.2% - ------------------------------------------------------------------------------- Electric Utilities--0.7% Black Hills Corp. 300 12,069 - ------------------------------------------------------------------------------- Energen Corp. 800 22,080 - ------------------------------------------------------------------------------- NorthWestern Corp. 1,200 26,880 - ------------------------------------------------------------------------------- South Jersey Industries, Inc. 900 28,035 - ------------------------------------------------------------------------------- UniSource Energy Corp. 800 18,376 ----------- 107,440 18 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Investments (Unaudited) (Continued) - -------------------------------------------------------------------------------- Market Value Shares See Note 1 - ------------------------------------------------------------------------------- Gas Utilities--1.5% Cascade Natural Gas Corp. 1,500 $ 31,950 - ------------------------------------------------------------------------------- Equitable Resources, Inc. 1,200 39,972 - ------------------------------------------------------------------------------- NICOR, Inc. 700 27,286 - ------------------------------------------------------------------------------- Questar Corp. 1,500 37,140 - ------------------------------------------------------------------------------- UGI Corp. 1,100 29,700 - ------------------------------------------------------------------------------- Western Gas Resources, Inc. 2,500 81,500 ----------- 247,548 ----------- Total Common Stocks (Cost $14,715,785) 16,146,576
Principal Amount =============================================================================================================== Repurchase Agreements--3.5% - --------------------------------------------------------------------------------------------------------------- Repurchase agreement with Banque Nationale De Paris, 3.96%, dated 6/29/01, to be repurchased at $575,190 on 7/2/01, collateralized by U.S. Treasury Bonds, 5.50%-8.75%, 5/15/20-8/15/28, with a value of $288,526, U.S. Treasury Nts., 4%-6.375%, 12/31/01-11/15/04, with a value of $157,026 and U.S. Treasury Bills, 9/27/01, with a value of $142,431 (Cost $575,000) $575,000 575,000 - --------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $15,290,785) 101.8% 16,721,576 - --------------------------------------------------------------------------------------------------------------- Liabilities in Excess of Other Assets (1.8) (298,057) -------- ----------- Net Assets 100.0% $16,423,519 ======== ===========
(1) Non-income-producing security. See accompanying Notes to Financial Statements. Oppenheimer Main Street Small Cap Fund/VA 19 - -------------------------------------------------------------------------------- Statement of Assets and Liabilities June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- ========================================================================================================= Assets Investments, at value (cost $15,290,785)--see accompanying statement $16,721,576 - --------------------------------------------------------------------------------------------------------- Cash 756 - --------------------------------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 4 - --------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 245,223 Shares of beneficial interest sold 113,381 Interest and dividends 8,524 Other 686 ----------- Total assets 17,090,150 ========================================================================================================= Liabilities Payables and other liabilities: Shares of beneficial interest redeemed 340,779 Investments purchased 294,533 Shareholder reports 26,017 Trustees' compensation 1 Other 5,301 ----------- Total liabilities 666,631 ========================================================================================================= Net Assets $16,423,519 =========== ========================================================================================================= Composition of Net Assets Par value of shares of beneficial interest $ 1,501 - --------------------------------------------------------------------------------------------------------- Additional paid-in capital 18,182,886 - --------------------------------------------------------------------------------------------------------- Accumulated net investment income 19,572 - --------------------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) on investments and foreign currency transactions (3,211,209) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies 1,430,769 ----------- Net assets--applicable to 1,500,734 shares of beneficial interest outstanding $16,423,519 =========== ========================================================================================================= Net Asset Value, Redemption Price Per Share and Offering Price Per Share $10.94
See accompanying Notes to Financial Statements. 20 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Statement of Operations For the Six Months Ended June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- =============================================================================== Investment Income Interest $ 61,255 - ------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $84) 31,684 --------- Total income 92,939 =============================================================================== Expenses Management fees 52,918 - ------------------------------------------------------------------------------- Shareholder reports 13,114 - ------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 2,352 - ------------------------------------------------------------------------------- Custodian fees and expenses 1,624 - ------------------------------------------------------------------------------- Trustees' compensation 749 - ------------------------------------------------------------------------------- Other 3,091 --------- Total expenses 73,848 Less reduction to custodian expenses (481) --------- Net expenses 73,367 =============================================================================== Net Investment Income 19,572 =============================================================================== Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (399,712) Foreign currency transactions (1,791) --------- Net realized gain (loss) (401,503) - ------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 280,835 Translation of assets and liabilities denominated in foreign currencies 2,054 --------- Net change 282,889 Net realized and unrealized gain (loss) (118,614) =============================================================================== Net Decrease in Net Assets Resulting from Operations $ (99,042) ========= See accompanying Notes to Financial Statements. Oppenheimer Main Street Small Cap Fund/VA 21 - -------------------------------------------------------------------------------- Statements of Changes in Net Assets - --------------------------------------------------------------------------------
Six Months Ended Year Ended June 30, 2001 December 31, (Unaudited) 2000 ====================================================================================================================== Operations Net investment income (loss) $ 19,572 $ (36,566) - ---------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) (401,503) (2,795,826) - ---------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 282,889 (548,679) ----------- ------------ Net increase (decrease) in net assets resulting from operations (99,042) (3,381,071) ====================================================================================================================== Dividends and/or Distributions to Shareholders Distributions from net realized gain -- (478,809) ====================================================================================================================== Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions 1,923,289 11,532,556 ====================================================================================================================== Net Assets Total increase 1,824,247 7,672,676 - ---------------------------------------------------------------------------------------------------------------------- Beginning of period 14,599,272 6,926,596 ------------ ------------ End of period (including accumulated net investment income of $19,572 for the six months ended June 30, 2001) $16,423,519 $14,599,272 =========== ===========
See accompanying Notes to Financial Statements. 22 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Financial Highlights - --------------------------------------------------------------------------------
Six Months Ended June 30, 2001 Year Ended December 31, (Unaudited) 2000 1999 1998(1) ======================================================================================================================= Per Share Operating Data Net asset value, beginning of period $11.09 $14.07 $ 9.60 $10.00 - ----------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) .01 (.03) (.02) (.02) Net realized and unrealized gain (loss) (.16) (2.35) 4.49 (.38) - ----------------------------------------------------------------------------------------------------------------------- Total income (loss) from investment operations (.15) (2.38) 4.47 (.40) - ----------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- (.60) -- -- - ----------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $10.94 $11.09 $14.07 $ 9.60 ====== ====== ====== ====== ======================================================================================================================= Total Return, at Net Asset Value(2) (1.35)% (18.34)% 46.56% (4.00)% ======================================================================================================================= Ratios/Supplemental Data Net assets, end of period (in thousands) $16,424 $14,599 $6,927 $994 - ----------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $14,240 $12,576 $2,738 $441 - ----------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:(3) Net investment gain (loss) 0.28% (0.29)% (0.37)% (0.79)% Expenses 1.04% 1.37% 1.83% 0.87%(4) Expenses, net of reduction to excess and custodian expenses N/A 1.35% 1.34% N/A - ----------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 141% 162% 176% 61%
(1) For the period from May 1, 1998 (inception of offering) to December 31, 1998. (2) Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period (or inception of offering), with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. (3) Annualized for periods of less than one full year. (4) Expense ratio reflects the reduction to custodian expenses. See accompanying Notes to Financial Statements. Oppenheimer Main Street Small Cap Fund/VA 23 - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) - -------------------------------------------------------------------------------- ================================================================================ 1. Significant Accounting Policies Oppenheimer Main Street Small Cap Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), which operated under the name of Oppenheimer Small Cap Growth Fund/VA through April 30, 2001, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation. 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. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- 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 its custodian bank 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. As of June 30, 2001, the Fund had available for federal income tax purposes an estimated unused capital loss carryover of $3,206,391. This estimated capital loss carryover represents carryover as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. As of June 30, 2001, the Fund had available for federal income tax purposes an unused capital loss carryover as follows:
Expiring ---------------------------- 2008 $1,795,693
- -------------------------------------------------------------------------------- Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. 24 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) (Continued) - -------------------------------------------------------------------------------- ================================================================================ 1. Significant Accounting Policies (continued) Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and 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. - -------------------------------------------------------------------------------- Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. - -------------------------------------------------------------------------------- Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended June 30, 2001 Year Ended December 31,2000 ------------------------------ --------------------------- Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------- Sold 438,851 $4,508,880 1,168,713 $15,913,312 Dividends and/or distributions reinvested -- -- 28,757 478,809 Redeemed (254,403) (2,585,591) (373,385) (4,859,565) -------- ---------- --------- ----------- Net increase (decrease) 184,448 $1,923,289 824,085 $11,532,556 ======== ========== ========= ===========
================================================================================ 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended June 30, 2001, were $22,415,713 and $17,592,124, respectively. ================================================================================ 4. Fees and Other Transactions with Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust 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, 2001, was an annualized rate of 0.75%. - -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS an agreed-upon per account fee. Oppenheimer Main Street Small Cap Fund/VA 25 - -------------------------------------------------------------------------------- Notes to Financial Statements (Unaudited) (Continued) - -------------------------------------------------------------------------------- ================================================================================ 5. Foreign Currency Contracts A foreign currency exchange contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency exchange contracts for operational purposes and to seek to protect against adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates as provided by a reliable bank, dealer or pricing service. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities. The Fund may realize a gain or loss upon the closing or settlement of the forward transaction. Realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. Securities denominated in foreign currency to cover net exposure on outstanding foreign currency contracts are noted in the Statement of Investments where applicable. As of June 30, 2001, the Fund had outstanding foreign currency contracts as follows:
Expiration Contract Valuation as of Unrealized Contract Description Date Amount (000s) June 30, 2001 appreciation - -------------------------------------------------------------------------------------------- Contracts to Purchase - --------------------- Canadian Dollar (CAD) 7/5/01 8,792 CAD $5,793 $4
26 Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- Oppenheimer Main Street Small Cap Fund/VA - -------------------------------------------------------------------------------- A Series of Oppenheimer Variable Account Funds ================================================================================ Officers and Trustees James C. Swain, Trustee, CEO and Chairman of the Board Bridget A. Macaskill, Trustee and President William L. Armstrong, Trustee Robert G. Avis, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee F. William Marshall, Jr., Trustee Charles Albers, Vice President Mark Zavanelli, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary ================================================================================ Investment Advisor OppenheimerFunds, Inc. ================================================================================ Transfer Agent OppenheimerFunds Services ================================================================================ Custodian of Portfolio Securities The Bank of New York ================================================================================ Independent Auditors Deloitte & Touche LLP ================================================================================ Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent auditors. For more complete information about Oppenheimer Main Street Small Cap Fund/VA, please refer to the Prospectus. To obtain a copy, call your financial advisor, or call OppenheimerFunds, Inc. at 1.800.981.2871. (C)Copyright 2001 OppenheimerFunds, Inc. All rights reserved. Oppenheimer Main Street Small Cap Fund/VA 27 -----END PRIVACY-ENHANCED MESSAGE-----