N-30D 1 opp220056.txt MAIN DOCUMENT Annual Report December 31, 2001 -------------------------------------------------------------------------------- Oppenheimer Main Street(R) Growth & Income Fund/VA A Series of Oppenheimer Variable Account Funds [logo]OppenheimerFunds(R) The Right Way to Invest Oppenheimer Variable Account Funds--Oppenheimer Main Street(R) Growth & Income Fund/VA ================================================================================ Objective Oppenheimer Main Street Growth & Income Fund/VA, a series of Oppenheimer Variable Account Funds, seeks high total returns, which include growth in the value of shares as well as current income from equity and debt securities. ================================================================================ Narrative by Charles Albers and Nikolaos Monoyios, Co-portfolio Managers For the 12-month period ended December 31, 2001, Oppenheimer Main Street Growth(R) & Income Fund/VA's Non-Service shares provided a total return of -10.16%. This return includes changes in net asset value per share, but does not reflect any charges imposed by the separate accounts that offer the Fund. The Fund's return would have been lower if such charges were taken into account. In comparison, the Fund's benchmark, the Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index), provided a -12.0% total return over the same period. While we are never satisfied with negative returns, we are nonetheless pleased that the Fund produced better performance over the past year than its benchmark, the S&P 500 Index, and its peer group, the Lipper Large-Cap Core Funds category average. The stock market's generally poor performance during 2001 was primarily the result of a weakening economy and negative investor sentiment, which adversely affected corporate earnings and stock prices. We attribute the Fund's strong relative performance to our highly disciplined investment approach, which enabled us to disregard emotion and market "noise" in favor of objective investment criteria. In early 2001, the U.S. economy had started to slow, and large-cap stock prices had already fallen substantially. In that environment, our models suggested a number of technology and telecommunications stocks that had reached relatively depressed price levels compared to their earnings. We received good performance from these stocks when they rebounded in January and early February. We trimmed or sold many of those growth-oriented holdings in mid-February, a move that proved fortuitous when technology and telecommunications stocks resumed their sharp descent. As the economy continued to weaken throughout 2001, our stock selection model tended to award higher scores to smaller companies within the large-cap range. This tilt proved especially beneficial during the middle of 2001, when smaller stocks outperformed larger ones by a substantial margin. In addition, the average stock in the Fund was generally more value- oriented than the average stock in the S&P 500 Index. At the same time, the Fund and Index were roughly equal in terms of growth characteristics such as historical and expected earnings growth rates. This modest bias toward value benefited the Fund's overall performance as value stocks provided better overall returns than growth stocks during 2001. Finally, our models recommended a relatively large number of companies in traditionally defensive industry groups such as healthcare and consumer staples. These types of companies tend to hold up better than others during market downturns because consumers need their products and services regardless of the state of the economy. The Fund also received good performance from its energy holdings, especially from smaller exploration and production companies that were acquired at attractive prices by large, integrated oil companies. Fortunately, we trimmed the Fund's energy exposure when oil prices began to deteriorate in mid year, and we avoided the price declines that later roiled the energy group. 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. 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 Growth & Income Fund/VA Oppenheimer Variable Account Funds--Oppenheimer Main Street(R) Growth & Income Fund/VA =============================================================================== The Fund benefited from above-average exposure to defensive groups and from below-average exposure to aggressive ones. By reducing the Fund's technology holdings to a lower percentage of total assets than their representation in the S&P 500 Index, we helped the Fund avoid much of the weakness in the technology group overall. And by focusing our reductions on hardware manufacturers, we managed to avoid the full brunt of the declines that plagued such companies throughout the year. As of the end of December 2001, our models have continued to assign high rankings to smaller companies in relatively defensive industry groups, including the healthcare, financials, utilities and consumer staples areas. The technology and telecommunications sectors have generally continued to receive low scores. Looking forward, we have no way to predict where the economy or stock market will be in six months, nor do we attempt to try. Instead, we rely on the statistical models that we have used and fine-tuned over nearly 30 years of investment management experience. During that time, our models have helped us objectively identify the most attractive stocks in the large-cap stock market, regardless of the prevailing environment, and that remains central to what makes Oppenheimer Main Street Growth & Income Fund/VA an important part of The Right Way to Invest. ------------------------------------------------------------------------------- Management discussion of performance. During the fiscal year that ended December 31, 2001, Oppenheimer Main Street Growth & Income Fund/VA's performance was strongly influenced by a weakening economy and negative investor sentiment, which adversely affected corporate earnings and stock prices. However, the Fund's returns were higher than those of its benchmark, the S & P 500 Index, which can be attributed to the portfolio managers' highly disciplined investment approach, which enabled them to disregard emotion and market "noise" in favor of objective investment criteria. Based on bottom-up evaluations performed by the Fund's statistical models, the Fund generally favored traditionally defensive areas, such as the consumer staples, healthcare and financial sectors, while underweighting more aggressive areas, such as technology and telecommunications services. The Fund also benefited from its focus on smaller companies within the large-capitalization range. ------------------------------------------------------------------------------- Comparing the Fund's performance to the market. The graphs that follow show the performance of a hypothetical $10,000 investment in each class of shares of the Fund held until December 31, 2001. In the case of Non-Service shares, performance is measured since inception of the class on July 5, 1995. In the case of Service shares, performance is measured from inception of the class on July 13, 2000. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares. The Fund's performance is compared to the performance of the S&P 500 Index, a broad-based index of equity securities widely regarded as a general measure of the performance of the U.S. equity securities market. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs. The Fund's performance reflects the effects of the Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the index. Oppenheimer Main Street Growth & Income Fund/VA 3 Oppenheimer Variable Account Funds--Oppenheimer Main Street(R) Growth & Income Fund/VA Non-Service shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [Line Chart]
OVAF/Oppenheimer Main Street Growth & Income Fund/ VA Non-Service shares S&P 500 Index 7/05/95 10000 10000 9/30/95 10850 10794 2/31/95 12525 11443 3/31/96 13383 12058 6/30/96 14881 12598 9/30/96 15506 12988 2/31/96 16598 14069 3/31/97 16756 14447 6/30/97 18900 16967 9/30/97 21410 18238 2/31/97 21988 18761 3/31/98 24742 21376 6/30/98 24865 22086 9/30/98 19301 19894 2/31/98 23022 24127 3/31/99 23913 25328 6/30/99 26393 27110 9/30/99 25073 25422 2/31/99 28020 29202 3/31/00 28879 29870 6/30/00 28073 29077 9/30/00 28362 28795 2/31/00 25561 26544 3/31/01 23012 23399 6/30/01 24040 24767 9/30/01 21295 21133 2/31/01 22964 23391
Average Annual Total Returns of Non-Service shares of the Fund at 12/31/01 1-Year -10.16% 5-Year 6.71% Since Inception 13.67% [End Line Chart] Service shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [Line Chart]
OVAF/Oppenheimer Main Street Growth & Income Fund/ VA Service shares S&P 500 Index 07/13/00 10000 10000 09/30/00 9813 9903 12/31/00 8839 9129 03/31/01 7952 8047 06/30/01 8308 8518 09/30/01 7353 7268 12/31/01 7931 8045
Average Annual Total Returns of Service shares of the Fund at 12/31/01 1-Year -10.27% Since Inception -14.62% [End Line Chart] Because of ongoing market volatility, the Fund's performance has been subject to fluctuations and current performance may be less than the results shown. For updates on the Fund's performance, please call us at 1.800.981.2871. Past performance is not predictive of future performance. The inception dates of the Fund were 7/5/95 for the Non-Service shares and 7/13/00 for its Service class. The performance information in the graphs for the S&P 500 Index begins on 6/30/95 in the first graph and on 6/30/00 for the second graph. Total returns include changes in net asset value per share and do not include the charges associated with the separate account products which offer this Fund. Such performance would have been lower if such charges were taken into account. Total returns and the ending account value in the graph show change in share value and include reinvestment of all dividends and capital gains distributions. Graphs are not drawn to same scale. An explanation of the calculation of the performance is in the Statement of Additional Information. 4 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments December 31, 2001
Market Value Shares See Note 1 ================================================================================================================ Common Stocks--96.6% ---------------------------------------------------------------------------------------------------------------- Basic Materials--1.2% ---------------------------------------------------------------------------------------------------------------- Chemicals--0.7% Air Products & Chemicals, Inc. 28,800 $ 1,351,008 ---------------------------------------------------------------------------------------------------------------- Cabot Corp. 5,100 182,070 ---------------------------------------------------------------------------------------------------------------- Cabot Microelectronics Corp.(1) 22,200 1,759,350 ---------------------------------------------------------------------------------------------------------------- Du Pont (E.I.) de Nemours & Co. 55,400 2,355,054 ---------------------------------------------------------------------------------------------------------------- Goodrich Corp. 23,800 633,556 ---------------------------------------------------------------------------------------------------------------- International Flavors & Fragrances, Inc. 10,900 323,839 ---------------------------------------------------------------------------------------------------------------- Praxair, Inc. 5,300 292,825 ---------------------------------------------------------------------------------------------------------------- Universal Corp. 5,500 200,255 ----------- 7,097,957 ---------------------------------------------------------------------------------------------------------------- Gold & Precious Minerals--0.0% Barrick Gold Corp. 11,700 186,615 ---------------------------------------------------------------------------------------------------------------- Metals--0.3% Alcan, Inc. 83,900 3,014,527 ---------------------------------------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., Cl. A(1) 2,000 25,800 ---------------------------------------------------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc., Cl. B(1) 21,800 291,902 ---------------------------------------------------------------------------------------------------------------- Inco Ltd.(1) 8,400 142,296 ----------- 3,474,525 ---------------------------------------------------------------------------------------------------------------- Paper--0.2% Georgia-Pacific Corp. 7,500 207,075 ---------------------------------------------------------------------------------------------------------------- Rayonier, Inc. 6,800 343,196 ---------------------------------------------------------------------------------------------------------------- Smurfit-Stone Container Corp.(1) 7,100 113,387 ---------------------------------------------------------------------------------------------------------------- Weyerhaeuser Co. 28,400 1,535,872 ----------- 2,199,530 ---------------------------------------------------------------------------------------------------------------- Capital Goods--5.8% ---------------------------------------------------------------------------------------------------------------- Aerospace/Defense--0.5% DRS Technologies, Inc.(1) 6,000 213,900 ---------------------------------------------------------------------------------------------------------------- General Dynamics Corp. 11,700 931,788 ---------------------------------------------------------------------------------------------------------------- Lockheed Martin Corp. 60,000 2,800,200 ---------------------------------------------------------------------------------------------------------------- Precision Castparts Corp. 5,300 149,725 ---------------------------------------------------------------------------------------------------------------- Raytheon Co. 19,800 642,906 ---------------------------------------------------------------------------------------------------------------- Rockwell Collins, Inc. 45,500 887,250 ----------- 5,625,769 ---------------------------------------------------------------------------------------------------------------- Electrical Equipment--2.9% AVX Corp. 20,600 485,954 ---------------------------------------------------------------------------------------------------------------- EMCOR Group, Inc.(1) 4,300 195,220 ---------------------------------------------------------------------------------------------------------------- General Electric Co. 748,000 29,979,840 ---------------------------------------------------------------------------------------------------------------- Integrated Device Technology, Inc.(1) 14,100 374,919 ---------------------------------------------------------------------------------------------------------------- Kemet Corp.(1) 6,800 120,700 ---------------------------------------------------------------------------------------------------------------- Molex, Inc., Cl. A 20,750 561,287 ---------------------------------------------------------------------------------------------------------------- Rockwell International Corp. 20,600 367,916 ----------- 32,085,836
Oppenheimer Main Street Growth & Income Fund/VA 5 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Industrial Services--0.5% Administaff, Inc.(1) 2,600 $ 71,266 ---------------------------------------------------------------------------------------------------------------- Allied Waste Industries, Inc.(1) 19,100 268,546 ---------------------------------------------------------------------------------------------------------------- CONSOL Energy, Inc. 11,400 283,176 ---------------------------------------------------------------------------------------------------------------- Manpower, Inc. 5,000 168,550 ---------------------------------------------------------------------------------------------------------------- Miller (Herman), Inc. 6,000 141,960 ---------------------------------------------------------------------------------------------------------------- NDCHealth Corp. 1,400 48,370 ---------------------------------------------------------------------------------------------------------------- Peabody Energy Corp. 10,500 295,995 ---------------------------------------------------------------------------------------------------------------- Right Management Consultants, Inc.(1) 1,650 28,545 ---------------------------------------------------------------------------------------------------------------- Robert Half International, Inc.(1) 3,300 88,110 ---------------------------------------------------------------------------------------------------------------- Teekay Shipping Corp. 6,600 230,010 ---------------------------------------------------------------------------------------------------------------- Viad Corp. 3,900 92,352 ---------------------------------------------------------------------------------------------------------------- Waste Management, Inc. 124,500 3,972,795 ----------- 5,689,675 ---------------------------------------------------------------------------------------------------------------- Manufacturing--1.9% Avery-Dennison Corp. 12,300 695,319 ---------------------------------------------------------------------------------------------------------------- Ball Corp. 3,900 275,730 ---------------------------------------------------------------------------------------------------------------- Caterpillar, Inc. 33,400 1,745,150 ---------------------------------------------------------------------------------------------------------------- Cooper Industries, Inc. 23,400 817,128 ---------------------------------------------------------------------------------------------------------------- Dover Corp. 5,500 203,885 ---------------------------------------------------------------------------------------------------------------- Hillenbrand Industries, Inc. 2,000 110,540 ---------------------------------------------------------------------------------------------------------------- Mettler-Toledo International, Inc.(1) 2,300 119,255 ---------------------------------------------------------------------------------------------------------------- Minnesota Mining & Manufacturing Co. 25,700 3,037,997 ---------------------------------------------------------------------------------------------------------------- Oakley, Inc.(1) 3,000 48,780 ---------------------------------------------------------------------------------------------------------------- Packaging Corp. of America(1) 1,800 32,670 ---------------------------------------------------------------------------------------------------------------- Pactiv Corp.(1) 33,100 587,525 ---------------------------------------------------------------------------------------------------------------- Ryder Systems, Inc. 1,300 28,795 ---------------------------------------------------------------------------------------------------------------- Sanmina-SCI Corp.(1) 27,200 541,280 ---------------------------------------------------------------------------------------------------------------- Tektronix, Inc.(1) 4,900 126,322 ---------------------------------------------------------------------------------------------------------------- Textron, Inc. 10,600 439,476 ---------------------------------------------------------------------------------------------------------------- Tyco International Ltd. 200,466 11,807,447 ----------- 20,617,299 ---------------------------------------------------------------------------------------------------------------- Communication Services--4.0% ---------------------------------------------------------------------------------------------------------------- Telecommunications: Long Distance--2.4% ALLTEL Corp. 17,800 1,098,794 ---------------------------------------------------------------------------------------------------------------- AT&T Corp. 501,300 9,093,582 ---------------------------------------------------------------------------------------------------------------- Corvis Corp.(1) 15,800 51,034 ---------------------------------------------------------------------------------------------------------------- Sprint Corp.(Fon Group) 183,100 3,676,648 ---------------------------------------------------------------------------------------------------------------- Verizon Communications, Inc. 256,356 12,166,656 ----------- 26,086,714 ---------------------------------------------------------------------------------------------------------------- Telephone Utilities--1.1% BellSouth Corp. 133,900 5,108,285 ---------------------------------------------------------------------------------------------------------------- SBC Communications, Inc. 171,800 6,729,406 ----------- 11,837,691
6 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Telecommunications: Wireless--0.5% Amdocs Ltd.(1) 52,300 $ 1,776,631 ---------------------------------------------------------------------------------------------------------------- AT&T Wireless Services, Inc.(1) 77,794 1,117,900 ---------------------------------------------------------------------------------------------------------------- Metro One Telecommunication, Inc.(1) 12,100 366,025 ---------------------------------------------------------------------------------------------------------------- Sprint Corp. (PCS Group)(1) 90,600 2,211,546 ---------------------------------------------------------------------------------------------------------------- Williams Communications Group, Inc.(1) 80,400 188,940 ----------- 5,661,042 ---------------------------------------------------------------------------------------------------------------- Consumer Cyclicals--11.3% ---------------------------------------------------------------------------------------------------------------- Autos & Housing--2.1% Beazer Homes USA, Inc.(1) 1,200 87,804 ---------------------------------------------------------------------------------------------------------------- Centex Construction Products, Inc. 1,000 32,050 ---------------------------------------------------------------------------------------------------------------- Centex Corp. 24,800 1,415,832 ---------------------------------------------------------------------------------------------------------------- Delphi Automotive Systems Corp. 18,900 258,174 ---------------------------------------------------------------------------------------------------------------- Direct Focus, Inc.(1) 3,800 118,560 ---------------------------------------------------------------------------------------------------------------- Ford Motor Co. 295,915 4,651,784 ---------------------------------------------------------------------------------------------------------------- Fortune Brands, Inc. 13,700 542,383 ---------------------------------------------------------------------------------------------------------------- General Motors Corp. 90,000 4,374,000 ---------------------------------------------------------------------------------------------------------------- Group 1 Automotive, Inc.(1) 1,100 31,361 ---------------------------------------------------------------------------------------------------------------- Harman International Industries, Inc. 1,500 67,650 ---------------------------------------------------------------------------------------------------------------- KB Home 32,100 1,287,210 ---------------------------------------------------------------------------------------------------------------- Kennametal, Inc. 1,000 40,270 ---------------------------------------------------------------------------------------------------------------- Lafarge North America, Inc. 2,800 105,196 ---------------------------------------------------------------------------------------------------------------- Lear Corp.(1) 14,100 537,774 ---------------------------------------------------------------------------------------------------------------- Lennar Corp. 6,800 318,376 ---------------------------------------------------------------------------------------------------------------- Masco Corp. 56,700 1,389,150 ---------------------------------------------------------------------------------------------------------------- NVR, Inc.(1) 9,100 1,856,400 ---------------------------------------------------------------------------------------------------------------- Pep Boys--Manny, Moe & Jack 3,200 54,880 ---------------------------------------------------------------------------------------------------------------- Polaris Industries, Inc. 1,400 80,850 ---------------------------------------------------------------------------------------------------------------- Pulte Homes, Inc. 4,644 207,447 ---------------------------------------------------------------------------------------------------------------- Ryland Group, Inc.(The) 17,500 1,281,000 ---------------------------------------------------------------------------------------------------------------- St. Joe Co.(The) 13,700 380,175 ---------------------------------------------------------------------------------------------------------------- Toll Brothers, Inc.(1) 33,500 1,470,650 ---------------------------------------------------------------------------------------------------------------- Visteon Corp. 4,500 67,680 ---------------------------------------------------------------------------------------------------------------- Whirlpool Corp. 26,200 1,921,246 ---------------------------------------------------------------------------------------------------------------- York International Corp. 5,000 190,650 ----------- 22,768,552 ---------------------------------------------------------------------------------------------------------------- Consumer Services--0.8% Boron, LePore & Associates, Inc.(1) 2,200 30,338 ---------------------------------------------------------------------------------------------------------------- Cendant Corp.(1) 162,200 3,180,742 ---------------------------------------------------------------------------------------------------------------- H&R Block, Inc. 54,800 2,449,560 ---------------------------------------------------------------------------------------------------------------- IMS Health, Inc. 115,600 2,255,356 ---------------------------------------------------------------------------------------------------------------- Omnicom Group, Inc. 7,300 652,255 ---------------------------------------------------------------------------------------------------------------- Travelocity.com, Inc.(1) 3,400 97,614 ----------- 8,665,865
Oppenheimer Main Street Growth & Income Fund/VA 7 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Leisure & Entertainment--0.8% Action Performance Cos., Inc.(1) 1,700 $ 52,037 ---------------------------------------------------------------------------------------------------------------- Activision, Inc.(1) 35,700 928,557 ---------------------------------------------------------------------------------------------------------------- Argosy Gaming Co.(1) 1,200 39,024 ---------------------------------------------------------------------------------------------------------------- Brunswick Corp. 14,600 317,696 ---------------------------------------------------------------------------------------------------------------- GTech Holdings Corp.(1) 9,800 443,842 ---------------------------------------------------------------------------------------------------------------- Harley-Davidson, Inc. 62,600 3,399,806 ---------------------------------------------------------------------------------------------------------------- Hasbro, Inc. 23,900 387,897 ---------------------------------------------------------------------------------------------------------------- Hilton Hotels Corp. 19,800 216,216 ---------------------------------------------------------------------------------------------------------------- Mandalay Resort Group(1) 6,600 141,240 ---------------------------------------------------------------------------------------------------------------- Marriott International, Inc., Cl. A 49,400 2,008,110 ---------------------------------------------------------------------------------------------------------------- MGM Mirage, Inc.(1) 8,000 230,960 ---------------------------------------------------------------------------------------------------------------- Starwood Hotels & Resorts Worldwide, Inc. 18,800 561,180 ---------------------------------------------------------------------------------------------------------------- WMS Industries, Inc.(1) 7,000 140,000 ----------- 8,866,565 ---------------------------------------------------------------------------------------------------------------- Media--1.0% AOL Time Warner, Inc.(1) 252,280 8,098,188 ---------------------------------------------------------------------------------------------------------------- Deluxe Corp. 4,500 187,110 ---------------------------------------------------------------------------------------------------------------- Harland (John H.) Co. 10,000 221,000 ---------------------------------------------------------------------------------------------------------------- Harte-Hanks, Inc. 8,500 239,445 ---------------------------------------------------------------------------------------------------------------- Havas Advertising SA, ADR 5,055 36,649 ---------------------------------------------------------------------------------------------------------------- Imagistics International, Inc. 1,160 14,326 ---------------------------------------------------------------------------------------------------------------- McGraw-Hill Cos., Inc.(The) 4,300 262,214 ---------------------------------------------------------------------------------------------------------------- R.H. Donnelley Corp.(1) 13,500 392,175 ---------------------------------------------------------------------------------------------------------------- Readers Digest Assn., Inc.(The), Cl. A 18,600 429,288 ---------------------------------------------------------------------------------------------------------------- USA Networks, Inc.(1) 20,200 551,662 ----------- 10,432,057 ---------------------------------------------------------------------------------------------------------------- Retail: General--3.2% Costco Wholesale Corp.(1) 50,700 2,250,066 ---------------------------------------------------------------------------------------------------------------- Dillard's, Inc., Cl. A 8,200 131,200 ---------------------------------------------------------------------------------------------------------------- Dollar General Corp. 5,200 77,480 ---------------------------------------------------------------------------------------------------------------- Federated Department Stores, Inc.(1) 31,200 1,276,080 ---------------------------------------------------------------------------------------------------------------- Foot Locker, Inc.(1) 39,900 624,435 ---------------------------------------------------------------------------------------------------------------- Kohl's Corp.(1) 33,700 2,373,828 ---------------------------------------------------------------------------------------------------------------- May Department Stores Co. 70,500 2,607,090 ---------------------------------------------------------------------------------------------------------------- Sears Roebuck & Co. 101,500 4,835,460 ---------------------------------------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 366,600 21,097,830 ----------- 35,273,469
8 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Retail: Specialty--3.0% American Eagle Outfitters, Inc.(1) 22,500 $ 588,825 ---------------------------------------------------------------------------------------------------------------- AutoNation, Inc.(1) 15,700 193,581 ---------------------------------------------------------------------------------------------------------------- Bed Bath & Beyond, Inc.(1) 40,100 1,359,390 ---------------------------------------------------------------------------------------------------------------- BJ's Wholesale Club, Inc.(1) 25,000 1,102,500 ---------------------------------------------------------------------------------------------------------------- Borders Group, Inc.(1) 3,500 69,440 ---------------------------------------------------------------------------------------------------------------- Chico's FAS, Inc.(1) 17,800 706,660 ---------------------------------------------------------------------------------------------------------------- Circuit City Stores, Inc./CarMax Group(1) 2,700 61,398 ---------------------------------------------------------------------------------------------------------------- Electronics Boutique Holdings Corp.(1) 8,800 351,472 ---------------------------------------------------------------------------------------------------------------- Gap, Inc. 223,000 3,108,620 ---------------------------------------------------------------------------------------------------------------- Genesco, Inc.(1) 2,000 41,520 ---------------------------------------------------------------------------------------------------------------- Home Depot, Inc. 214,500 10,941,645 ---------------------------------------------------------------------------------------------------------------- Hot Topic, Inc.(1) 20,400 640,356 ---------------------------------------------------------------------------------------------------------------- Lands' End, Inc.(1) 1,300 65,208 ---------------------------------------------------------------------------------------------------------------- Michaels Stores, Inc.(1) 5,200 171,340 ---------------------------------------------------------------------------------------------------------------- Nike, Inc., Cl. B 48,700 2,738,888 ---------------------------------------------------------------------------------------------------------------- Office Depot, Inc.(1) 53,200 986,328 ---------------------------------------------------------------------------------------------------------------- Pier 1 Imports, Inc. 2,018 34,992 ---------------------------------------------------------------------------------------------------------------- Reebok International Ltd.(1) 5,000 132,500 ---------------------------------------------------------------------------------------------------------------- Rite Aid Corp.(1) 26,800 135,608 ---------------------------------------------------------------------------------------------------------------- Ross Stores, Inc. 50,100 1,607,208 ---------------------------------------------------------------------------------------------------------------- Talbots, Inc.(The) 33,100 1,199,875 ---------------------------------------------------------------------------------------------------------------- Target Corp. 58,900 2,417,845 ---------------------------------------------------------------------------------------------------------------- Tech Data Corp.(1) 9,200 398,176 ---------------------------------------------------------------------------------------------------------------- TJX Cos., Inc.(The) 101,500 4,045,790 ----------- 33,099,165 ---------------------------------------------------------------------------------------------------------------- Textile, Apparel & Home Furnishings--0.4% Abercrombie & Fitch Co., Cl. A(1) 35,300 936,509 ---------------------------------------------------------------------------------------------------------------- bebe stores, inc.(1) 1,600 29,856 ---------------------------------------------------------------------------------------------------------------- Coach, Inc.(1) 28,924 1,127,458 ---------------------------------------------------------------------------------------------------------------- Deb Shops, Inc. 700 16,975 ---------------------------------------------------------------------------------------------------------------- Jones Apparel Group, Inc.(1) 11,000 364,870 ---------------------------------------------------------------------------------------------------------------- Liz Claiborne, Inc. 25,000 1,243,750 ---------------------------------------------------------------------------------------------------------------- Mohawk Industries, Inc.(1) 7,500 411,600 ---------------------------------------------------------------------------------------------------------------- Tommy Hilfiger Corp.(1) 6,500 89,375 ---------------------------------------------------------------------------------------------------------------- Too, Inc.(1) 13,657 375,567 ----------- 4,595,960 ---------------------------------------------------------------------------------------------------------------- Consumer Staples--9.5% ---------------------------------------------------------------------------------------------------------------- Beverages-1.6% Adolph Coors Co., Cl. B 3,400 181,560 ---------------------------------------------------------------------------------------------------------------- Anheuser-Busch Cos., Inc. 110,300 4,986,663 ---------------------------------------------------------------------------------------------------------------- Coca-Cola Co.(The) 194,400 9,165,960 ---------------------------------------------------------------------------------------------------------------- PepsiCo, Inc. 68,450 3,332,830 ----------- 17,667,013
Oppenheimer Main Street Growth & Income Fund/VA 9 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Broadcasting--0.3% Comcast Corp., Cl. A Special 36,600 $ 1,317,600 ---------------------------------------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A(1) 4,400 120,868 ---------------------------------------------------------------------------------------------------------------- Fox Entertainment Group, Inc., A Shares(1) 4,200 111,426 ---------------------------------------------------------------------------------------------------------------- Gemstar-TV Guide International, Inc.(1) 52,700 1,459,790 ---------------------------------------------------------------------------------------------------------------- Hispanic Broadcasting Corp.(1) 2,600 66,300 ---------------------------------------------------------------------------------------------------------------- Univision Communications, Inc., Cl. A(1) 15,600 631,176 ----------- 3,707,160 ---------------------------------------------------------------------------------------------------------------- Education--0.0% Corinthian Colleges, Inc.(1) 2,300 94,047 ---------------------------------------------------------------------------------------------------------------- Education Management Corp.(1) 1,700 61,625 ---------------------------------------------------------------------------------------------------------------- ITT Educational Services, Inc.(1) 4,700 173,289 ----------- 328,961 ---------------------------------------------------------------------------------------------------------------- Entertainment--1.7% Applebee's International, Inc. 7,700 263,340 ---------------------------------------------------------------------------------------------------------------- Brinker International, Inc.(1) 65,500 1,949,280 ---------------------------------------------------------------------------------------------------------------- CBRL Group, Inc. 2,700 79,488 ---------------------------------------------------------------------------------------------------------------- CEC Entertainment, Inc.(1) 12,300 533,697 ---------------------------------------------------------------------------------------------------------------- Darden Restaurants, Inc. 59,500 2,106,300 ---------------------------------------------------------------------------------------------------------------- Disney (Walt) Co. 125,900 2,608,648 ---------------------------------------------------------------------------------------------------------------- Landry's Restaurants, Inc. 1,500 27,975 ---------------------------------------------------------------------------------------------------------------- Liberty Media Corp., Cl. A(1) 58,900 824,600 ---------------------------------------------------------------------------------------------------------------- McDonald's Corp. 118,800 3,144,636 ---------------------------------------------------------------------------------------------------------------- P.F. Chang's China Bistro, Inc.(1) 7,100 335,830 ---------------------------------------------------------------------------------------------------------------- Papa John's International, Inc.(1) 1,200 32,976 ---------------------------------------------------------------------------------------------------------------- Pixar, Inc.(1) 600 21,576 ---------------------------------------------------------------------------------------------------------------- Royal Caribbean Cruises Ltd. 10,500 170,100 ---------------------------------------------------------------------------------------------------------------- Ruby Tuesday, Inc. 45,200 932,476 ---------------------------------------------------------------------------------------------------------------- Ryan's Family Steak Houses, Inc.(1) 8,300 179,695 ---------------------------------------------------------------------------------------------------------------- Sonic Corp.(1) 2,000 72,000 ---------------------------------------------------------------------------------------------------------------- THQ, Inc.(1) 19,200 930,624 ---------------------------------------------------------------------------------------------------------------- Tricon Global Restaurants, Inc.(1) 6,900 339,480 ---------------------------------------------------------------------------------------------------------------- Viacom, Inc., Cl. B(1) 60,830 2,685,644 ---------------------------------------------------------------------------------------------------------------- Wendy's International, Inc. 38,800 1,131,796 ----------- 18,370,161 ---------------------------------------------------------------------------------------------------------------- Food--2.1% Archer-Daniels-Midland Co. 18,925 271,574 ---------------------------------------------------------------------------------------------------------------- Campbell Soup Co. 106,800 3,190,116 ---------------------------------------------------------------------------------------------------------------- ConAgra Foods, Inc. 109,400 2,600,438 ---------------------------------------------------------------------------------------------------------------- Interstate Bakeries Corp. 1,800 43,524 ---------------------------------------------------------------------------------------------------------------- Kellogg Co. 15,100 454,510 ---------------------------------------------------------------------------------------------------------------- Kraft Foods, Inc., Cl. A 153,000 5,206,590 ---------------------------------------------------------------------------------------------------------------- Performance Food Group Co.(1) 3,200 112,544
10 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Food (continued) Sara Lee Corp. 154,138 $ 3,426,488 ---------------------------------------------------------------------------------------------------------------- Sysco Corp. 21,400 561,108 ---------------------------------------------------------------------------------------------------------------- Tyson Foods, Inc., Cl. A 13,200 152,460 ---------------------------------------------------------------------------------------------------------------- Unilever NV, NY Shares 78,100 4,499,341 ---------------------------------------------------------------------------------------------------------------- Wrigley William Jr. Co. 55,600 2,856,172 ----------- 23,374,865 ---------------------------------------------------------------------------------------------------------------- Food & Drug Retailers--1.1% Albertson's, Inc. 65,100 2,049,999 ---------------------------------------------------------------------------------------------------------------- CVS Corp. 97,100 2,874,160 ---------------------------------------------------------------------------------------------------------------- Duane Reade, Inc.(1) 2,700 81,945 ---------------------------------------------------------------------------------------------------------------- Fleming Cos., Inc. 27,500 508,750 ---------------------------------------------------------------------------------------------------------------- Kroger Co.(The)(1) 71,000 1,481,770 ---------------------------------------------------------------------------------------------------------------- Safeway, Inc.(1) 69,700 2,909,975 ---------------------------------------------------------------------------------------------------------------- Walgreen Co. 70,800 2,383,128 ----------- 12,289,727 ---------------------------------------------------------------------------------------------------------------- Household Goods--1.3% Avon Products, Inc. 31,000 1,441,500 ---------------------------------------------------------------------------------------------------------------- Colgate-Palmolive Co. 40,600 2,344,650 ---------------------------------------------------------------------------------------------------------------- Dial Corp.(The) 4,700 80,605 ---------------------------------------------------------------------------------------------------------------- Gillette Co. 82,300 2,748,820 ---------------------------------------------------------------------------------------------------------------- Plum Creek Timber Co., Inc. 41,200 1,168,020 ---------------------------------------------------------------------------------------------------------------- Procter & Gamble Co. 86,900 6,876,397 ----------- 14,659,992 ---------------------------------------------------------------------------------------------------------------- Tobacco--1.4% Philip Morris Cos., Inc. 247,100 11,329,535 ---------------------------------------------------------------------------------------------------------------- R.J. Reynolds Tobacco Holdings, Inc. 63,700 3,586,310 ----------- 14,915,845 ---------------------------------------------------------------------------------------------------------------- Energy--9.5% ---------------------------------------------------------------------------------------------------------------- Energy Services--0.6% Baker Hughes, Inc. 24,900 908,103 ---------------------------------------------------------------------------------------------------------------- ENSCO International, Inc. 45,700 1,135,645 ---------------------------------------------------------------------------------------------------------------- Halliburton Co. 75,300 986,430 ---------------------------------------------------------------------------------------------------------------- Headwaters, Inc.(1) 2,700 30,942 ---------------------------------------------------------------------------------------------------------------- Helmerich & Payne, Inc. 7,600 253,688 ---------------------------------------------------------------------------------------------------------------- Massey Energy Co. 11,100 230,103 ---------------------------------------------------------------------------------------------------------------- Nabors Industries, Inc.(1) 17,900 614,507 ---------------------------------------------------------------------------------------------------------------- PanCanadian Energy Corp. 8,100 209,566 ---------------------------------------------------------------------------------------------------------------- Precision Drilling Corp.(1) 4,000 103,280 ---------------------------------------------------------------------------------------------------------------- Progress Energy, Inc., Contingent Value Obligation(1) 32,000 13,600 ---------------------------------------------------------------------------------------------------------------- Schlumberger Ltd. 20,700 1,137,465 ---------------------------------------------------------------------------------------------------------------- Stolt Offshore SA, ADR(1) 48,400 435,600 ---------------------------------------------------------------------------------------------------------------- Varco International, Inc.(1) 14,200 212,716 ----------- 6,271,645
Oppenheimer Main Street Growth & Income Fund/VA 11 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Oil: Domestic--6.9% Amerada Hess Corp. 32,200 $ 2,012,500 ---------------------------------------------------------------------------------------------------------------- Anadarko Petroleum Corp. 44,300 2,518,455 ---------------------------------------------------------------------------------------------------------------- Ashland, Inc. 13,300 612,864 ---------------------------------------------------------------------------------------------------------------- Brown (Tom), Inc.(1) 97,500 2,633,475 ---------------------------------------------------------------------------------------------------------------- Burlington Resources, Inc. 22,500 844,650 ---------------------------------------------------------------------------------------------------------------- Cabot Oil & Gas Corp., Cl. A 10,900 262,145 ---------------------------------------------------------------------------------------------------------------- Chesapeake Energy Corp.(1) 10,800 71,388 ---------------------------------------------------------------------------------------------------------------- ChevronTexaco Corp. 144,450 12,944,164 ---------------------------------------------------------------------------------------------------------------- Conoco, Inc. 172,600 4,884,580 ---------------------------------------------------------------------------------------------------------------- EOG Resources, Inc. 52,100 2,037,631 ---------------------------------------------------------------------------------------------------------------- Exxon Mobil Corp. 581,916 22,869,299 ---------------------------------------------------------------------------------------------------------------- Frontier Oil Corp. 154,800 2,575,872 ---------------------------------------------------------------------------------------------------------------- GlobalSantaFe Corp. 71,076 2,027,088 ---------------------------------------------------------------------------------------------------------------- Murphy Oil Corp. 52,500 4,412,100 ---------------------------------------------------------------------------------------------------------------- Newfield Exploration Co.(1) 10,000 355,100 ---------------------------------------------------------------------------------------------------------------- Occidental Petroleum Corp. 111,800 2,966,054 ---------------------------------------------------------------------------------------------------------------- Ocean Energy, Inc. 5,600 107,520 ---------------------------------------------------------------------------------------------------------------- Phillips Petroleum Co. 83,080 5,006,401 ---------------------------------------------------------------------------------------------------------------- Stone Energy Corp.(1) 15,900 628,050 ---------------------------------------------------------------------------------------------------------------- Sunoco, Inc. 29,700 1,108,998 ---------------------------------------------------------------------------------------------------------------- Tesoro Petroleum Corp.(1) 20,600 270,066 ---------------------------------------------------------------------------------------------------------------- Ultramar Diamond Shamrock Corp. 4,900 242,452 ---------------------------------------------------------------------------------------------------------------- Unocal Corp. 52,100 1,879,247 ---------------------------------------------------------------------------------------------------------------- USX-Marathon Group, Inc. 83,100 2,493,000 ----------- 75,763,099 ---------------------------------------------------------------------------------------------------------------- Oil: International--2.0% Baytex Energy Ltd.(1) 107,400 294,016 ---------------------------------------------------------------------------------------------------------------- Canadian 88 Energy Corp.(1) 580,000 654,012 ---------------------------------------------------------------------------------------------------------------- Canadian Natural Resources Ltd. 136,884 3,285,113 ---------------------------------------------------------------------------------------------------------------- Compton Petroleum Corp.(1) 240,000 631,460 ---------------------------------------------------------------------------------------------------------------- Paramount Resources Ltd.(1) 147,700 1,304,623 ---------------------------------------------------------------------------------------------------------------- Rio Alto Exploration Ltd.(1) 63,150 739,776 ---------------------------------------------------------------------------------------------------------------- Royal Dutch Petroleum Co., NY Shares 219,000 10,735,380 ---------------------------------------------------------------------------------------------------------------- Talisman Energy, Inc. 102,900 3,899,925 ----------- 21,544,305 ---------------------------------------------------------------------------------------------------------------- Financial--25.0% ---------------------------------------------------------------------------------------------------------------- Banks--5.4% American Home Mortgage Holdings, Inc. 1,200 14,520 ---------------------------------------------------------------------------------------------------------------- AmSouth Bancorp 3,300 62,370 ---------------------------------------------------------------------------------------------------------------- Astoria Financial Corp. 29,800 788,508 ---------------------------------------------------------------------------------------------------------------- Bank of America Corp. 203,300 12,797,735 ---------------------------------------------------------------------------------------------------------------- Bank of New York Co., Inc.(The) 61,500 2,509,200 ---------------------------------------------------------------------------------------------------------------- Bank One Corp. 124,400 4,857,820
12 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Banks (continued) Banknorth Group, Inc. 4,700 $ 105,844 ---------------------------------------------------------------------------------------------------------------- BB&T Corp. 60,100 2,170,211 ---------------------------------------------------------------------------------------------------------------- Charter One Financial, Inc. 41,070 1,115,050 ---------------------------------------------------------------------------------------------------------------- City National Corp. 1,700 79,645 ---------------------------------------------------------------------------------------------------------------- Comerica, Inc. 40,600 2,326,380 ---------------------------------------------------------------------------------------------------------------- Commerce Bancorp, Inc. 5,400 212,436 ---------------------------------------------------------------------------------------------------------------- Compass Bancshares, Inc. 1,800 50,940 ---------------------------------------------------------------------------------------------------------------- Cullen/Frost Bankers, Inc. 700 21,616 ---------------------------------------------------------------------------------------------------------------- Downey Financial Corp. 1,500 61,875 ---------------------------------------------------------------------------------------------------------------- FleetBoston Financial Corp. 12,000 438,000 ---------------------------------------------------------------------------------------------------------------- Hibernia Corp., Cl. A 8,900 158,331 ---------------------------------------------------------------------------------------------------------------- Independence Community Bank Corp. 8,000 182,080 ---------------------------------------------------------------------------------------------------------------- J.P. Morgan Chase & Co. 213,100 7,746,185 ---------------------------------------------------------------------------------------------------------------- KeyCorp 65,000 1,582,100 ---------------------------------------------------------------------------------------------------------------- Knight Trading Group, Inc.(1) 12,800 141,056 ---------------------------------------------------------------------------------------------------------------- Marshall & Ilsley Corp. 3,800 240,464 ---------------------------------------------------------------------------------------------------------------- Mellon Financial Corp. 75,100 2,825,262 ---------------------------------------------------------------------------------------------------------------- National City Corp. 125,300 3,663,772 ---------------------------------------------------------------------------------------------------------------- New York Community Bancorp, Inc. 5,500 125,785 ---------------------------------------------------------------------------------------------------------------- Northern Trust Corp. 10,700 644,354 ---------------------------------------------------------------------------------------------------------------- Pacific Century Financial Corp. 6,500 168,285 ---------------------------------------------------------------------------------------------------------------- PNC Financial Services Group 58,900 3,310,180 ---------------------------------------------------------------------------------------------------------------- Prosperity Bancshares, Inc. 67,500 1,821,825 ---------------------------------------------------------------------------------------------------------------- Regions Financial Corp. 1,800 53,892 ---------------------------------------------------------------------------------------------------------------- SunTrust Banks, Inc. 64,000 4,012,800 ---------------------------------------------------------------------------------------------------------------- U.S. Bancorp 30,070 629,365 ---------------------------------------------------------------------------------------------------------------- Union Planters Corp. 6,100 275,293 ---------------------------------------------------------------------------------------------------------------- UnionBanCal Corp. 9,000 342,000 ---------------------------------------------------------------------------------------------------------------- Wachovia Corp. 44,800 1,404,928 ---------------------------------------------------------------------------------------------------------------- Wachovia Corp.(1) 6,000 -- ---------------------------------------------------------------------------------------------------------------- Wells Fargo Co. 55,900 2,428,855 ----------- 59,368,962 ---------------------------------------------------------------------------------------------------------------- Diversified Financial--13.0% Affiliated Managers Group, Inc.(1) 10,700 754,136 ---------------------------------------------------------------------------------------------------------------- American Express Co. 136,700 4,878,823 ---------------------------------------------------------------------------------------------------------------- AmeriCredit Corp.(1) 25,600 807,680 ---------------------------------------------------------------------------------------------------------------- Bear Stearns Cos., Inc.(The) 45,200 2,650,528 ---------------------------------------------------------------------------------------------------------------- Capital One Financial Corp. 72,300 3,900,585 ---------------------------------------------------------------------------------------------------------------- Certegy, Inc.(1) 1,750 59,885 ---------------------------------------------------------------------------------------------------------------- Citigroup, Inc. 354,066 17,873,252 ---------------------------------------------------------------------------------------------------------------- Concord EFS, Inc.(1) 10,000 327,800 ---------------------------------------------------------------------------------------------------------------- Countrywide Credit Industries, Inc. 56,500 2,314,805 ---------------------------------------------------------------------------------------------------------------- Doral Financial Corp. 1,000 31,210 ---------------------------------------------------------------------------------------------------------------- eFunds Corp.(1) 8,213 112,929
Oppenheimer Main Street Growth & Income Fund/VA 13 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Diversified Financial (continued) Fannie Mae 119,500 $ 9,500,250 ---------------------------------------------------------------------------------------------------------------- First American Corp.(The) 3,400 63,716 ---------------------------------------------------------------------------------------------------------------- Freddie Mac 103,900 6,795,060 ---------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc.(The) 68,300 6,334,825 ---------------------------------------------------------------------------------------------------------------- Household International, Inc. 91,000 5,272,540 ---------------------------------------------------------------------------------------------------------------- Instinet Group, Inc.(1) 11,800 118,590 ---------------------------------------------------------------------------------------------------------------- iShares Russell 2000 Index Fund 495,000 47,693,250 ---------------------------------------------------------------------------------------------------------------- iShares Russell 2000 Value Index Fund 26,000 3,328,000 ---------------------------------------------------------------------------------------------------------------- iShares S&P SmallCap 600 Index Fund 30,000 3,432,000 ---------------------------------------------------------------------------------------------------------------- John Hancock Financial Services, Inc. 86,500 3,572,450 ---------------------------------------------------------------------------------------------------------------- Lehman Brothers Holdings, Inc. 70,800 4,729,440 ---------------------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc. 10,600 552,472 ---------------------------------------------------------------------------------------------------------------- Metris Cos., Inc. 19,600 503,916 ---------------------------------------------------------------------------------------------------------------- MGIC Investment Corp. 46,300 2,857,636 ---------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co. 100,600 5,627,564 ---------------------------------------------------------------------------------------------------------------- PMI Group, Inc.(The) 34,300 2,298,443 ---------------------------------------------------------------------------------------------------------------- Providian Financial Corp. 60,500 214,775 ---------------------------------------------------------------------------------------------------------------- Prudential Financial, Inc.(1) 22,400 743,456 ---------------------------------------------------------------------------------------------------------------- SEI Investments Co. 7,300 329,303 ---------------------------------------------------------------------------------------------------------------- Simon Property Group, Inc. 11,300 331,429 ---------------------------------------------------------------------------------------------------------------- Stilwell Financial, Inc. 62,300 1,695,806 ---------------------------------------------------------------------------------------------------------------- USA Education, Inc. 37,000 3,108,740 ------------ 142,815,294 ---------------------------------------------------------------------------------------------------------------- Insurance--5.2% AFLAC, Inc. 139,500 3,426,120 ---------------------------------------------------------------------------------------------------------------- Allmerica Financial Corp. 2,400 106,920 ---------------------------------------------------------------------------------------------------------------- Allstate Corp. 157,500 5,307,750 ---------------------------------------------------------------------------------------------------------------- American International Group, Inc. 191,740 15,224,156 ---------------------------------------------------------------------------------------------------------------- Cigna Corp. 57,600 5,336,640 ---------------------------------------------------------------------------------------------------------------- Cincinnati Financial Corp. 8,200 312,830 ---------------------------------------------------------------------------------------------------------------- Fidelity National Financial, Inc. 58,380 1,447,824 ---------------------------------------------------------------------------------------------------------------- First Health Group Corp.(1) 11,200 277,088 ---------------------------------------------------------------------------------------------------------------- Hilb, Rogal & Hamilton Co. 3,300 184,965 ---------------------------------------------------------------------------------------------------------------- Jefferson-Pilot Corp. 26,450 1,223,842 ---------------------------------------------------------------------------------------------------------------- Lincoln National Corp. 62,200 3,021,054 ---------------------------------------------------------------------------------------------------------------- Loews Corp. 16,900 935,922 ---------------------------------------------------------------------------------------------------------------- Marsh & McLennan Cos., Inc. 18,300 1,966,335 ---------------------------------------------------------------------------------------------------------------- MBIA, Inc. 38,350 2,056,711 ---------------------------------------------------------------------------------------------------------------- MetLife, Inc. 193,600 6,133,248 ---------------------------------------------------------------------------------------------------------------- Ohio Casualty Corp.(1) 2,700 43,335 ---------------------------------------------------------------------------------------------------------------- Old Republic International Corp. 100 2,801 ---------------------------------------------------------------------------------------------------------------- Phoenix Cos., Inc.(The)(1) 24,500 453,250
14 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Insurance (continued) Principal Financial Group, Inc.(The)(1) 23,700 $ 568,800 ---------------------------------------------------------------------------------------------------------------- Progressive Corp. 27,800 4,150,540 ---------------------------------------------------------------------------------------------------------------- Radian Group, Inc. 27,900 1,198,305 ---------------------------------------------------------------------------------------------------------------- St. Paul Cos., Inc. 53,950 2,372,182 ---------------------------------------------------------------------------------------------------------------- UnumProvident Corp. 16,700 442,717 ---------------------------------------------------------------------------------------------------------------- XL Capital Ltd., Cl. A 14,500 1,324,720 ----------- 57,518,055 ---------------------------------------------------------------------------------------------------------------- Real Estate Investment Trusts--0.2% Equity Office Properties Trust 59,700 1,795,776 ---------------------------------------------------------------------------------------------------------------- Equity Residential Properties Trust 3,700 106,227 ---------------------------------------------------------------------------------------------------------------- Indymac Mortgage Holdings, Inc.(1) 11,500 268,870 ----------- 2,170,873 ---------------------------------------------------------------------------------------------------------------- Savings & Loans--1.2% Dime Bancorp, Inc. 37,000 1,334,960 ---------------------------------------------------------------------------------------------------------------- Golden State Bancorp, Inc. 92,600 2,421,490 ---------------------------------------------------------------------------------------------------------------- Golden West Financial Corp. 55,400 3,260,290 ---------------------------------------------------------------------------------------------------------------- Greenpoint Financial Corp. 34,200 1,222,650 ---------------------------------------------------------------------------------------------------------------- Washington Mutual, Inc. 143,750 4,700,625 ---------------------------------------------------------------------------------------------------------------- Webster Financial Corp. 1,100 34,683 ----------- 12,974,698 ---------------------------------------------------------------------------------------------------------------- Healthcare--11.8% ---------------------------------------------------------------------------------------------------------------- Healthcare/Drugs--9.0% Abbott Laboratories 54,700 3,049,525 ---------------------------------------------------------------------------------------------------------------- American Home Products Corp. 43,400 2,663,024 ---------------------------------------------------------------------------------------------------------------- Amgen, Inc.(1) 87,600 4,944,144 ---------------------------------------------------------------------------------------------------------------- Barr Laboratories, Inc.(1) 4,700 372,992 ---------------------------------------------------------------------------------------------------------------- Biogen, Inc.(1) 14,200 814,370 ---------------------------------------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 94,900 4,839,900 ---------------------------------------------------------------------------------------------------------------- Chiron Corp.(1) 52,100 2,284,064 ---------------------------------------------------------------------------------------------------------------- CIMA Labs, Inc.(1) 5,300 191,595 ---------------------------------------------------------------------------------------------------------------- COR Therapeutics, Inc.(1) 4,000 95,720 ---------------------------------------------------------------------------------------------------------------- CV Therapeutics, Inc.(1) 6,900 358,938 ---------------------------------------------------------------------------------------------------------------- Diagnostic Products Corp. 1,100 48,345 ---------------------------------------------------------------------------------------------------------------- Edwards Lifesciences Corp.(1) 1,700 46,971 ---------------------------------------------------------------------------------------------------------------- Forest Laboratories, Inc.(1) 48,000 3,933,600 ---------------------------------------------------------------------------------------------------------------- Genentech, Inc.(1) 75,400 4,090,450 ---------------------------------------------------------------------------------------------------------------- Genta, Inc.(1) 7,100 101,033 ---------------------------------------------------------------------------------------------------------------- HCA, Inc. 121,900 4,698,026 ---------------------------------------------------------------------------------------------------------------- Humana, Inc.(1) 5,400 63,666 ---------------------------------------------------------------------------------------------------------------- Incyte Pharmaceuticals, Inc.(1) 6,800 132,192 ---------------------------------------------------------------------------------------------------------------- Isis Pharmaceuticals, Inc.(1) 1,300 28,847 ---------------------------------------------------------------------------------------------------------------- IVAX Corp.(1) 28,250 568,955
Oppenheimer Main Street Growth & Income Fund/VA 15 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Healthcare/Drugs (continued) Johnson & Johnson 219,206 $12,955,075 ---------------------------------------------------------------------------------------------------------------- LifePoint Hospitals, Inc.(1) 11,700 398,268 ---------------------------------------------------------------------------------------------------------------- Lilly (Eli) & Co. 105,800 8,309,532 ---------------------------------------------------------------------------------------------------------------- Merck & Co., Inc. 199,900 11,754,120 ---------------------------------------------------------------------------------------------------------------- Myriad Genetics, Inc.(1) 5,900 310,576 ---------------------------------------------------------------------------------------------------------------- Pfizer, Inc. 482,200 19,215,670 ---------------------------------------------------------------------------------------------------------------- Respironics, Inc.(1) 3,000 103,920 ---------------------------------------------------------------------------------------------------------------- Schering-Plough Corp. 124,800 4,469,088 ---------------------------------------------------------------------------------------------------------------- Sepracor, Inc.(1) 9,200 524,952 ---------------------------------------------------------------------------------------------------------------- Serologicals Corp.(1) 3,000 64,500 ---------------------------------------------------------------------------------------------------------------- Sicor, Inc.(1) 15,100 236,768 ---------------------------------------------------------------------------------------------------------------- Taro Pharmaceutical Industries Ltd.(1) 23,700 946,815 ---------------------------------------------------------------------------------------------------------------- UnitedHealth Group, Inc. 75,100 5,314,827 ---------------------------------------------------------------------------------------------------------------- Vertex Pharmaceuticals, Inc.(1) 4,600 113,114 ---------------------------------------------------------------------------------------------------------------- XOMA Ltd.(1) 300 2,955 ---------------------------------------------------------------------------------------------------------------- Zimmer Holdings, Inc.(1) 21,010 641,645 ----------- 98,688,182 ---------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services--2.8% Accredo Health, Inc.(1) 2,400 95,280 ---------------------------------------------------------------------------------------------------------------- Allergan, Inc. 25,900 1,943,795 ---------------------------------------------------------------------------------------------------------------- Apria Healthcare Group, Inc.(1) 7,900 197,421 ---------------------------------------------------------------------------------------------------------------- Baxter International, Inc. 35,700 1,914,591 ---------------------------------------------------------------------------------------------------------------- Becton, Dickinson & Co. 51,600 1,710,540 ---------------------------------------------------------------------------------------------------------------- Biosite, Inc.(1) 400 7,348 ---------------------------------------------------------------------------------------------------------------- Caremark Rx, Inc.(1) 109,500 1,785,945 ---------------------------------------------------------------------------------------------------------------- Cooper Cos., Inc.(The) 2,300 114,954 ---------------------------------------------------------------------------------------------------------------- Covance, Inc.(1) 10,600 240,620 ---------------------------------------------------------------------------------------------------------------- DaVita, Inc.(1) 11,600 283,620 ---------------------------------------------------------------------------------------------------------------- Health Net, Inc.(1) 15,900 346,302 ---------------------------------------------------------------------------------------------------------------- HEALTHSOUTH Corp.(1) 7,000 103,740 ---------------------------------------------------------------------------------------------------------------- Laboratory Corp. of America Holdings, Inc.(1) 23,300 1,883,805 ---------------------------------------------------------------------------------------------------------------- Lincare Holdings, Inc.(1) 22,300 638,895 ---------------------------------------------------------------------------------------------------------------- Manor Care, Inc.(1) 59,100 1,401,261 ---------------------------------------------------------------------------------------------------------------- Medtronic, Inc. 10,900 558,189 ---------------------------------------------------------------------------------------------------------------- Mid Atlantic Medical Services, Inc.(1) 1,900 43,130 ---------------------------------------------------------------------------------------------------------------- Option Care, Inc.(1) 3,500 68,425 ---------------------------------------------------------------------------------------------------------------- Orthodontic Centers of America, Inc.(1) 1,500 45,750 ---------------------------------------------------------------------------------------------------------------- Oxford Health Plans, Inc.(1) 82,700 2,492,578 ---------------------------------------------------------------------------------------------------------------- Patterson Dental Co.(1) 4,500 184,185 ---------------------------------------------------------------------------------------------------------------- Pediatrix Medical Group, Inc.(1) 5,400 183,168 ---------------------------------------------------------------------------------------------------------------- Quest Diagnostics, Inc.(1) 12,200 874,862 ---------------------------------------------------------------------------------------------------------------- RehabCare Group, Inc.(1) 2,900 85,840
16 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Healthcare/Supplies & Services (continued) Schein (Henry), Inc.(1) 9,500 $ 351,785 ---------------------------------------------------------------------------------------------------------------- Stryker Corp.(1) 20,100 1,173,237 ---------------------------------------------------------------------------------------------------------------- SurModics, Inc.(1) 1,300 47,398 ---------------------------------------------------------------------------------------------------------------- Techne Corp.(1) 5,500 202,675 ---------------------------------------------------------------------------------------------------------------- Tenet Healthcare Corp.(1) 90,300 5,302,416 ---------------------------------------------------------------------------------------------------------------- Trigon Healthcare, Inc.(1) 20,800 1,444,560 ---------------------------------------------------------------------------------------------------------------- Universal Health Services, Inc., Cl. B(1) 42,600 1,822,428 ---------------------------------------------------------------------------------------------------------------- WellPoint Health Networks, Inc.(1) 24,400 2,851,140 ----------- 30,399,883 ---------------------------------------------------------------------------------------------------------------- Technology--12.0% ---------------------------------------------------------------------------------------------------------------- Computer Hardware--3.0% Adaptec, Inc.(1) 11,300 163,850 ---------------------------------------------------------------------------------------------------------------- Agilent Technologies, Inc.(1) 7,928 226,027 ---------------------------------------------------------------------------------------------------------------- Compaq Computer Corp. 403,200 3,935,232 ---------------------------------------------------------------------------------------------------------------- Dell Computer Corp.(1) 215,800 5,865,444 ---------------------------------------------------------------------------------------------------------------- Handspring, Inc.(1) 11,500 77,510 ---------------------------------------------------------------------------------------------------------------- Hewlett-Packard Co. 29,900 614,146 ---------------------------------------------------------------------------------------------------------------- Ingram Micro, Inc., Cl. A(1) 3,400 58,888 ---------------------------------------------------------------------------------------------------------------- International Business Machines Corp. 147,400 17,829,504 ---------------------------------------------------------------------------------------------------------------- Juniper Networks, Inc.(1) 89,500 1,696,025 ---------------------------------------------------------------------------------------------------------------- Lexmark International, Inc., Cl. A(1) 14,500 855,500 ---------------------------------------------------------------------------------------------------------------- Mentor Graphics Corp.(1) 3,500 82,495 ---------------------------------------------------------------------------------------------------------------- Mercury Computer Systems, Inc.(1) 1,600 62,576 ---------------------------------------------------------------------------------------------------------------- Microtune, Inc.(1) 2,700 63,342 ---------------------------------------------------------------------------------------------------------------- Network Appliance, Inc.(1) 29,500 645,165 ---------------------------------------------------------------------------------------------------------------- Storage Technology Corp.(1) 9,100 188,097 ----------- 32,363,801 ---------------------------------------------------------------------------------------------------------------- Computer Services--0.7% CACI International, Inc., Cl. A(1) 3,200 126,352 ---------------------------------------------------------------------------------------------------------------- Emulex Corp.(1) 39,300 1,552,743 ---------------------------------------------------------------------------------------------------------------- First Data Corp. 56,900 4,463,805 ---------------------------------------------------------------------------------------------------------------- Foundry Networks, Inc.(1) 21,700 176,855 ---------------------------------------------------------------------------------------------------------------- Kronos, Inc.(1) 2,100 101,598 ---------------------------------------------------------------------------------------------------------------- Openwave Systems, Inc.(1) 26,900 263,351 ---------------------------------------------------------------------------------------------------------------- Overture Services, Inc.(1) 8,400 297,612 ---------------------------------------------------------------------------------------------------------------- Paychex, Inc. 22,350 778,898 ---------------------------------------------------------------------------------------------------------------- Sonus Networks, Inc.(1) 18,300 84,546 ---------------------------------------------------------------------------------------------------------------- Unisys Corp.(1) 13,700 171,798 ---------------------------------------------------------------------------------------------------------------- Websense, Inc.(1) 4,800 153,936 ----------- 8,171,494
Oppenheimer Main Street Growth & Income Fund/VA 17 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Computer Software--4.5% Acclaim Entertainment, Inc.(1) 10,600 $ 56,180 ---------------------------------------------------------------------------------------------------------------- Adobe Systems, Inc. 65,000 2,018,250 ---------------------------------------------------------------------------------------------------------------- Cadence Design Systems, Inc.(1) 32,000 701,440 ---------------------------------------------------------------------------------------------------------------- Citrix Systems, Inc.(1) 77,500 1,756,150 ---------------------------------------------------------------------------------------------------------------- CSG Systems International, Inc.(1) 4,300 173,935 ---------------------------------------------------------------------------------------------------------------- Electronic Arts, Inc.(1) 9,100 545,545 ---------------------------------------------------------------------------------------------------------------- Fair, Isaac & Co., Inc. 1,600 100,832 ---------------------------------------------------------------------------------------------------------------- Interwoven, Inc.(1) 7,000 68,180 ---------------------------------------------------------------------------------------------------------------- McDATA Corp., Cl. A(1) 4,887 119,732 ---------------------------------------------------------------------------------------------------------------- McDATA Corp., Cl. B(1) 11,400 286,254 ---------------------------------------------------------------------------------------------------------------- Mercury Interactive Corp.(1) 25,200 856,296 ---------------------------------------------------------------------------------------------------------------- Micromuse, Inc.(1) 22,900 343,500 ---------------------------------------------------------------------------------------------------------------- Microsoft Corp.(1) 451,500 29,911,875 ---------------------------------------------------------------------------------------------------------------- Oracle Corp.(1) 583,800 8,062,278 ---------------------------------------------------------------------------------------------------------------- Retek, Inc.(1) 7,700 229,999 ---------------------------------------------------------------------------------------------------------------- RSA Security, Inc.(1) 12,100 211,266 ---------------------------------------------------------------------------------------------------------------- Sabre Holdings Corp.(1) 11,200 474,320 ---------------------------------------------------------------------------------------------------------------- StorageNetworks, Inc.(1) 20,600 127,308 ---------------------------------------------------------------------------------------------------------------- VeriSign, Inc.(1) 37,000 1,407,480 ---------------------------------------------------------------------------------------------------------------- Veritas Software Corp.(1) 38,100 1,708,023 ----------- 49,158,843 ---------------------------------------------------------------------------------------------------------------- Communications Equipment--0.6% Cisco Systems, Inc.(1) 311,700 5,644,887 ---------------------------------------------------------------------------------------------------------------- Enterasys Networks, Inc.(1) 14,600 129,210 ---------------------------------------------------------------------------------------------------------------- Scientific-Atlanta, Inc. 13,700 327,978 ---------------------------------------------------------------------------------------------------------------- Tellium, Inc.(1) 22,000 137,060 ----------- 6,239,135 ---------------------------------------------------------------------------------------------------------------- Electronics--2.9% Advanced Micro Devices, Inc.(1) 70,700 1,121,302 ---------------------------------------------------------------------------------------------------------------- Altera Corp.(1) 18,700 396,814 ---------------------------------------------------------------------------------------------------------------- Analog Devices, Inc.(1) 88,900 3,946,271 ---------------------------------------------------------------------------------------------------------------- Arrow Electronics, Inc.(1) 4,700 140,530 ---------------------------------------------------------------------------------------------------------------- Engineered Support Systems, Inc. 9,000 307,890 ---------------------------------------------------------------------------------------------------------------- Fairchild Semiconductor International, Inc., Cl. A(1) 10,700 301,740 ---------------------------------------------------------------------------------------------------------------- FLIR Systems, Inc.(1) 3,200 121,344 ---------------------------------------------------------------------------------------------------------------- General Motors Corp., Cl. H(1) 16,700 258,015 ---------------------------------------------------------------------------------------------------------------- Genesis Microchip, Inc.(1) 18,800 1,243,056 ---------------------------------------------------------------------------------------------------------------- Integrated Circuit Systems, Inc.(1) 10,000 225,900 ---------------------------------------------------------------------------------------------------------------- Intel Corp. 400,100 12,583,145 ---------------------------------------------------------------------------------------------------------------- KLA-Tencor Corp.(1) 72,800 3,607,968 ---------------------------------------------------------------------------------------------------------------- Lam Research Corp.(1) 15,800 366,876
18 Oppenheimer Main Street Growth & Income Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Electronics (continued) Linear Technology Corp. 68,100 $ 2,658,624 ---------------------------------------------------------------------------------------------------------------- Maxim Integrated Products, Inc.(1) 12,300 645,873 ---------------------------------------------------------------------------------------------------------------- Rambus, Inc.(1) 16,000 127,840 ---------------------------------------------------------------------------------------------------------------- Semtech Corp.(1) 10,000 356,900 ---------------------------------------------------------------------------------------------------------------- TriQuint Semiconductor, Inc.(1) 24,000 294,240 ---------------------------------------------------------------------------------------------------------------- Xilinx, Inc.(1) 83,500 3,260,675 ----------- 31,965,003 ---------------------------------------------------------------------------------------------------------------- Photography--0.3% Eastman Kodak Co. 103,500 3,046,005 ---------------------------------------------------------------------------------------------------------------- Transportation--1.5% ---------------------------------------------------------------------------------------------------------------- Air Transportation--0.5% Continental Airlines, Inc., Cl. B(1) 53,258 1,395,892 ---------------------------------------------------------------------------------------------------------------- Southwest Airlines Co. 206,700 3,819,816 ---------------------------------------------------------------------------------------------------------------- UAL Corp. 13,300 179,550 ---------------------------------------------------------------------------------------------------------------- US Airways Group, Inc.(1) 8,100 51,354 ----------- 5,446,612 ---------------------------------------------------------------------------------------------------------------- Railroads & Truckers--0.5% Burlington Northern Santa Fe Corp. 84,300 2,405,079 ---------------------------------------------------------------------------------------------------------------- CSX Corp. 1,800 63,090 ---------------------------------------------------------------------------------------------------------------- Union Pacific Corp. 52,300 2,981,100 ----------- 5,449,269 ---------------------------------------------------------------------------------------------------------------- Shipping--0.5% United Parcel Service, Inc., Cl. B 92,000 5,014,000 ---------------------------------------------------------------------------------------------------------------- Utilities--5.0% ---------------------------------------------------------------------------------------------------------------- Electric Utilities--4.4% ALLETE, Inc. 5,900 148,680 ---------------------------------------------------------------------------------------------------------------- American Electric Power Co., Inc. 104,500 4,548,885 ---------------------------------------------------------------------------------------------------------------- Cinergy Corp. 8,500 284,155 ---------------------------------------------------------------------------------------------------------------- CMS Energy Corp. 5,900 141,777 ---------------------------------------------------------------------------------------------------------------- Conectiv, Inc. 11,900 291,431 ---------------------------------------------------------------------------------------------------------------- Consolidated Edison Co. of New York, Inc. 29,000 1,170,440 ---------------------------------------------------------------------------------------------------------------- Dominion Resources, Inc. 77,000 4,627,700 ---------------------------------------------------------------------------------------------------------------- DPL, Inc. 4,000 96,320 ---------------------------------------------------------------------------------------------------------------- DTE Energy Co. 57,900 2,428,326 ---------------------------------------------------------------------------------------------------------------- Duke Energy Corp. 127,496 5,005,493 ---------------------------------------------------------------------------------------------------------------- Entergy Corp. 59,600 2,330,956 ---------------------------------------------------------------------------------------------------------------- Exelon Corp. 99,324 4,755,633 ---------------------------------------------------------------------------------------------------------------- FirstEnergy Corp. 120,300 4,208,094 ---------------------------------------------------------------------------------------------------------------- FPL Group, Inc. 42,300 2,385,720 ---------------------------------------------------------------------------------------------------------------- KeySpan Corp. 100 3,465 ---------------------------------------------------------------------------------------------------------------- Mirant Corp.(1) 116,155 1,860,803 ---------------------------------------------------------------------------------------------------------------- Pinnacle West Capital Corp. 6,300 263,655
Oppenheimer Main Street Growth & Income Fund/VA 19 Statement of Investments (Continued)
Market Value Shares See Note 1 ---------------------------------------------------------------------------------------------------------------- Electric Utilities (continued) PPL Corp. 56,000 $ 1,951,600 ---------------------------------------------------------------------------------------------------------------- Public Service Enterprise Group, Inc. 64,700 2,729,693 ---------------------------------------------------------------------------------------------------------------- Reliant Energy, Inc. 3,100 82,212 ---------------------------------------------------------------------------------------------------------------- Southern Co. 137,800 3,493,230 ---------------------------------------------------------------------------------------------------------------- Teco Energy, Inc. 3,000 78,720 ---------------------------------------------------------------------------------------------------------------- TXU Corp. 94,900 4,474,535 ---------------------------------------------------------------------------------------------------------------- Xcel Energy, Inc. 46,800 1,298,232 -------------- 48,659,755 ---------------------------------------------------------------------------------------------------------------- Gas Utilities--0.6% Dynegy, Inc. 8,000 204,000 ---------------------------------------------------------------------------------------------------------------- El Paso Corp. 35,151 1,568,086 ---------------------------------------------------------------------------------------------------------------- Enron Corp. 74,500 44,700 ---------------------------------------------------------------------------------------------------------------- Kinder Morgan, Inc. 46,300 2,578,447 ---------------------------------------------------------------------------------------------------------------- NICOR, Inc. 5,900 245,676 ---------------------------------------------------------------------------------------------------------------- NiSource, Inc. 14,600 336,676 ---------------------------------------------------------------------------------------------------------------- Western Gas Resources, Inc. 4,500 145,440 ---------------------------------------------------------------------------------------------------------------- Williams Cos., Inc. (The) 76,600 1,954,832 -------------- 7,077,857 -------------- Total Common Stocks (Cost $1,029,645,008) 1,059,684,780 Units ================================================================================================================ Rights, Warrants and Certificates--0.0% ---------------------------------------------------------------------------------------------------------------- Dime Bancorp, Inc. Wts., Exp. 1/2/10(1) (Cost $0) 31,900 4,785 Principal Amount ================================================================================================================= Repurchase Agreements--3.1% ---------------------------------------------------------------------------------------------------------------- Repurchase agreement with PaineWebber, Inc.,1.70%, dated 12/31/01, to be repurchased at $33,864,198 on 1/2/02, collateralized by Federal Home Loan Mtg. Corp., 5.50%-6.50%,12/1/16-12/1/31, with a value of $28,547,794 and Federal National Mortgage Assn., 6.50%, 5/1/31, with a value of $6,073,429 (Cost $33,861,000) $33,861,000 33,861,000 ---------------------------------------------------------------------------------------------------------------- Total Investments, at Value (Cost $1,063,506,008) 99.7% 1,093,550,565 ---------------------------------------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.3 2,940,160 ----------- -------------- Net Assets 100.0% $1,096,490,725 =========== ==============
1. Non-income-producing security. See accompanying Notes to Financial Statements. 20 Oppenheimer Main Street Growth & Income Fund/VA Statement of Assets and Liabilities December 31, 2001 ================================================================================================================ Assets Investments, at value (cost $1,063,506,008)--see accompanying statement $1,093,550,565 ---------------------------------------------------------------------------------------------------------------- Cash 15,943 ---------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 7,154,460 Shares of beneficial interest sold 1,132,258 Interest and dividends 1,069,525 Other 6,700 -------------- Total assets 1,102,929,451 ================================================================================================================ Liabilities Payables and other liabilities: Investments purchased 6,009,683 Shares of beneficial interest redeemed 260,297 Shareholder reports 94,639 Distribution and service plan fees 6,634 Trustees'compensation 822 Transfer and shareholder servicing agent fees 137 Other 66,514 -------------- Total liabilities 6,438,726 ================================================================================================================ Net Assets $1,096,490,725 ============== ================================================================================================================ Composition of Net Assets Par value of shares of beneficial interest $ 57,733 ---------------------------------------------------------------------------------------------------------------- Additional paid-in capital 1,240,366,732 ---------------------------------------------------------------------------------------------------------------- Undistributed (overdistributed) net investment income 7,557,571 ---------------------------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) on investments and foreign currency transactions (181,535,729) ---------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies 30,044,418 -------------- Net Assets $1,096,490,725 ============== ================================================================================================================ Net Asset Value Per Share Non-Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $1,074,945,488 and 56,595,502 shares of beneficial interest outstanding) $18.99 ---------------------------------------------------------------------------------------------------------------- Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $21,545,237 and 1,137,080 shares of beneficial interest outstanding) $18.95 See accompanying Notes to Financial Statements.
Oppenheimer Main Street Growth & Income Fund/VA 21 Statement of Operations For the Year Ended December 31, 2001 ================================================================================================================ Investment Income Dividends (net of foreign withholding taxes of $75,167) $ 13,156,369 ---------------------------------------------------------------------------------------------------------------- Interest 1,923,777 ------------- Total income 15,080,146 ================================================================================================================ Expenses Management fees 7,073,905 ---------------------------------------------------------------------------------------------------------------- Distribution and service plan fees: Service shares 15,379 ---------------------------------------------------------------------------------------------------------------- Shareholder reports 223,415 ---------------------------------------------------------------------------------------------------------------- Custodian fees and expenses 30,900 ---------------------------------------------------------------------------------------------------------------- Trustees'compensation 14,022 ---------------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 12,943 ---------------------------------------------------------------------------------------------------------------- Other 115,066 ------------- Total expenses 7,485,630 Less reduction to custodian expenses (12,943) ------------- Net expenses 7,472,687 ================================================================================================================ Net Investment Income 7,607,459 ================================================================================================================ Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (145,944,479) Foreign currency transactions (521,744) ------------- Net realized gain (loss) (146,466,223) ---------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 27,649,658 Translation of assets and liabilities denominated in foreign currencies (568,143) ------------- Net change 27,081,515 ------------- Net realized and unrealized gain (loss) (119,384,708) ================================================================================================================ Net Decrease in Net Assets Resulting from Operations $(111,777,249) ============= See accompanying Notes to Financial Statements.
22 Oppenheimer Main Street Growth & Income Fund/VA Statements of Changes in Net Assets
Year Ended December 31, 2001 2000 =========================================================================================================== Operations Net investment income (loss) $ 7,607,459 $ 5,587,981 ----------------------------------------------------------------------------------------------------------- Net realized gain (loss) (146,466,223) (33,564,078) ----------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) 27,081,515 (63,504,788) -------------- -------------- Net increase (decrease) in net assets resulting from operations (111,777,249) (91,480,885) =========================================================================================================== Dividends and/or Distributions to Shareholders Dividends from net investment income: Non-Service shares (5,518,418) (2,497,726) Service shares (19,362) - ----------------------------------------------------------------------------------------------------------- Distributions from net realized gain: Non-Service shares - (32,976,915) Service shares - - =========================================================================================================== Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions: Non-Service shares 181,776,278 581,387,859 Service shares 20,508,172 1,777,939 =========================================================================================================== Net Assets Total increase 84,969,421 456,210,272 ----------------------------------------------------------------------------------------------------------- Beginning of period 1,011,521,304 555,311,032 -------------- -------------- End of period [including undistributed (overdistributed) net investment income of $7,557,571 and $5,513,216, respectively] $1,096,490,725 $1,011,521,304 ============== ============== See accompanying Notes to Financial Statements.
Oppenheimer Main Street Growth & Income Fund/VA 23 Financial Highlights
Year Ended December 31, Non-Service shares 2001 2000 1999 1998 1997 =================================================================================================================== Per Share Operating Data Net asset value, beginning of period $21.26 $24.63 $20.48 $20.58 $16.37 ------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .13 .10 .11 .13 .19 Net realized and unrealized gain (loss) (2.29) (2.14) 4.29 .92 4.91 ------------------------------------------------------------------------------------------------------------------- Total income (loss) from investment operations (2.16) (2.04) 4.40 1.05 5.10 ------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.11) (.09) (.09) (.05) (.17) Distributions from net realized gain - (1.24) (.16) (1.10) (.72) ------------------------------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.11) (1.33) (.25) (1.15) (.89) ------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $18.99 $21.26 $24.63 $20.48 $20.58 ====== ====== ====== ====== ====== =================================================================================================================== Total Return, at Net Asset Value(1) (10.16)% (8.78)% 21.71% 4.70% 32.48% =================================================================================================================== Ratios/Supplemental Data Net assets, end of period (in thousands) $1,074,945 $1,009,823 $555,311 $308,353 $155,368 ------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $1,028,913 $ 809,662 $391,063 $234,306 $ 94,906 ------------------------------------------------------------------------------------------------------------------- Ratios to average net assets:(2) Net investment income 0.73% 0.69% 0.63% 0.74% 1.15% Expenses 0.73% 0.73% 0.78% 0.79%(3) 0.83%(3) ------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 69% 63% 118% 86% 79%
1. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 24 Oppenheimer Main Street Growth & Income Fund/VA Financial Highlights (Continued)
Year Ended December 31, Service shares 2001 2000(1) ========================================================================================================== Per Share Operating Data Net asset value, beginning of period $21.24 $24.04 ---------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .14 .02 Net realized and unrealized gain (loss) (2.32) (2.82) ---------------------------------------------------------------------------------------------------------- Total gain (loss) from investment operations (2.18) (2.80) ---------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.11) - Distributions from net realized gain - - ---------------------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.11) - ---------------------------------------------------------------------------------------------------------- Net asset value, end of period $18.95 $21.24 ====== ====== ========================================================================================================== Total Return, at Net Asset Value(2) (10.27)% (11.61)% ========================================================================================================== Ratios/Supplemental Data Net assets, end of period (in thousands) $21,545 $1,698 ---------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $10,306 $ 543 ---------------------------------------------------------------------------------------------------------- Ratios to average net assets:(3) Net investment income 0.66% 0.50% Expenses 0.88% 0.88% ---------------------------------------------------------------------------------------------------------- Portfolio turnover rate 69% 63%
1. For the period from July 13, 2000 (inception of offering) to December 31, 2000. 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 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. See accompanying Notes to Financial Statements. Oppenheimer Main Street Growth & Income Fund/VA 25 Notes to Financial Statements =============================================================================== 1. Significant Accounting Policies Oppenheimer Main Street Growth & Income Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's objective is to seek high total return (which includes growth in the value of its shares as well as current income) from equity and debt securities. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Fund. The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. ------------------------------------------------------------------------------- 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. ------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. 26 Oppenheimer Main Street Growth & Income Fund/VA Notes to Financial Statements (Continued) ================================================================================ 1. Significant Accounting Policies (continued) 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 December 31, 2001, the Fund had available for federal income tax purposes unused capital loss carryovers as follows:
Expiring ---------------------------------------- 2008 $ 28,801,633 2009 140,898,750 ------------ Total $169,700,383 ============
As of December 31, 2001, the Fund had approximately $4,713,000 of post-October losses available to offset future capital gains, if any. Such losses, if unutilized, will expire in 2010. Additionally, the Fund had approximately $9,000 of post-October foreign currency losses which were deferred. If unutilized by the Fund in the following fiscal year, such losses will expire. ------------------------------------------------------------------------------- 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. ------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily because of the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes. The character of 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. The Fund adjusts the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended December 31, 2001, amounts have been reclassified to reflect a decrease in undistributed net investment income of $25,324. Accumulated net realized loss on investments was decreased by the same amount. Net assets of the Fund were unaffected by the reclassifications. ------------------------------------------------------------------------------- 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. Oppenheimer Main Street Growth & Income Fund/VA 27 Notes to Financial Statements (Continued) =============================================================================== 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:
Year Ended December 31, 2001 Year Ended December 31, 2000(1) ---------------------------------- ------------------------------------ Shares Amount Shares Amount ---------------------------------------------------------------------------------------------------------------------------- Non-Service shares Sold 14,383,759 $ 283,714,091 27,605,948 $641,709,139 Dividends and/or distributions reinvested 289,225 5,518,418 1,515,363 35,474,641 Redeemed (5,577,498) (107,456,231) (4,166,298) (95,795,921) ---------- -------------- ---------- ----------- Net increase (decrease) 9,095,486 $ 181,776,278 24,955,013 $581,387,859 ========== ============== ========== ============ Service shares Sold 1,070,886 $ 20,739,629 79,978 $ 1,778,724 Dividends and/or distributions reinvested 1,016 19,362 - - Redeemed (14,766) (250,819) (34) (785) ---------- -------------- --------- ------------ Net increase (decrease) 1,057,136 $ 20,508,172 79,944 $ 1,777,939 ========== ============== ========= ============
1. For the year ended December 31, 2000, for Non-Service shares and for the period from July 13, 2000 (inception of offering) to December 31, 2000, for Service shares. ============================================================================== 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended December 31, 2001, were $913,390,643 and $683,818,428, respectively. As of December 31, 2001, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $1,070,618,566 was: Gross unrealized appreciation $ 93,137,776 Gross unrealized depreciation (70,205,777) ------------ Net unrealized appreciation (depreciation) $ 22,931,999 ============
28 Oppenheimer Main Street Growth & Income Fund/VA Notes to Financial Statements (Continued) =============================================================================== 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. The annual fees are 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 year ended December 31, 2001, was an annualized rate of 0.68%. ------------------------------------------------------------------------------- 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. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Fund is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees to 0.25% per annum of funds offered in variable annuity separate accounts, effective January 1, 2001. This undertaking may be amended or withdrawn at any time. ------------------------------------------------------------------------------- Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan for Service shares to pay OppenheimerFunds Distributor, Inc., the Distributor, for distribution-related services for the Fund's Service shares. Although the plan allows for payment to be made quarterly at an annual rate of up to 0.25% of the average annual net assets of Service shares of the Fund, that rate is currently reduced to 0.15%. The Board of Trustees may increase that rate to no more than 0.25% per annum, without notification in advance. The Distributor currently uses all of those fees to compensate sponsor(s) of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. The impact of the service plan is to increase operating expenses of the Service shares, which results in lower performance compared to the Fund's shares that are not subject to a service fee. Oppenheimer Main Street Growth & Income Fund/VA 29 Independent Auditors' Report =============================================================================== The Board of Trustees and Shareholders of Oppenheimer Main Street Growth & Income Fund/VA: We have audited the accompanying statement of assets and liabilities of Oppenheimer Main Street Growth & Income Fund/VA (which is a series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2001, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2001, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Main Street Growth & Income Fund/VA, results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Denver, Colorado January 23, 2002 30 Oppenheimer Main Street Growth & Income Fund/VA Federal Income Tax Information (Unaudited) =============================================================================== In early 2002 shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2001. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. Dividends of $0.1107 and $0.1085 per share were paid to Non-Service and Service shareholders, respectively, on March 16, 2001, all of which was designated as ordinary income for federal income tax purposes. Dividends paid by the Fund during the fiscal year ended December 31, 2001, which are not designated as capital gain distributions should be multiplied by 100% to arrive at the amount eligible for the corporate dividend received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. Oppenheimer Main Street Growth & Income Fund/VA 31 Officers and Trustees ================================================================================================================================= Officers and Trustees James C. Swain, Trustee, CEO and Chairman of the Board John V. Murphy, President and Trustee William L. Armstrong, Trustee Robert G. Avis, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee F. William Marshall, Jr., Trustee Charles Albers, Vice President Nikolaos Monoyios, Vice President Robert G. Zack, Vice President and Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Katherine P. Feld, Assistant Secretary Kathleen T. Ives, Assistant Secretary Denis R. Molleur, Assistant Secretary ================================================================================================================================= Name, Address,(1) Age, Position(s) Held with Fund and Length of Time Served(2) Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee --------------------------------------------------------------------------------------------------------------------------------- James C. Swain, Chairman, Formerly Vice Chairman of OppenheimerFunds, Inc.(the "Manager") (September Chief Executive Officer and Trustee 1988-January 2,2002); President and a director of Centennial Asset Management (since 1985). Age: 68 Corporation, a wholly owned subsidiary of the Manager and Chairman of the Board of Shareholder Services, Inc., a transfer agent subsidiary of the Manager. --------------------------------------------------------------------------------------------------------------------------------- John V. Murphy,(3) President and Trustee Chairman, Chief Executive Officer and Director (since June 30,2001) and President (since (since 2001). Age: 52 September 2000) of the Manager; President and a trustee of other Oppenheimer funds; President and a director (since July 2001) of Oppenheimer Acquisition Corp., the Manager's parent holding company, and of Oppenheimer Partnership Holdings, Inc., a holding company subsidiary of the Manager; Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc., transfer agent sub-sidiaries of the Manager; President and a director (since July 2001) of OppenheimerFunds Legacy Program, a charitable trust program established by the Manager; a director of the following investment advisory subsidiaries of the Manager:OAM Institutional, Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments Inc. (since July 2002); President (since November 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc., an investment advisor subsidiary of the Manager; a director (since November 2001) of Trinity Investment Management Corp. and TremontAdvisers, Inc., investment advisory affiliates of the Manager. Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company, the Manager's parent company; a director (since June 1995) of DBL Acquisition Corporation; formerly Chief Operating Officer (September 2000-June 2001) of the Manager; President and Trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds, open-end investment companies; a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and Director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank, wholly owned subsidiary of Emerald Isle Bancorp; Executive Vice President, Director and Chief Operating Officer (June 1995-January 1997) of David L. Babson & Co., Inc., an investment advisor; Chief Operating Officer (March 1993-December 1996) of Concert Capital Management, Inc., an investment advisor.
32 Oppenheimer Main Street Growth & Income Fund/VA Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length of Time Served(2) Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee --------------------------------------------------------------------------------------------------------------------------------- William L. Armstrong, Trustee Chairman of the following private mortgage banking companies:Cherry Creek Mortgage (since 1999). Age: 64 Company (since 1991), Centennial State Mortgage Company (since 1994), The El Paso Mortgage Company (since 1993), Transland Financial Services, Inc.(since 1997); Chairman of the following private companies:Great Frontier Insurance (insurance agency) (since 1995) and Ambassador Media Corporation (since 1984); Director of the following public companies:Storage Technology Corporation (computer equipment company) (since 1991), Helmerich & Payne, Inc.(oil and gas drilling/production company) (since 1992), UNUMProvident (insurance company) (since 1991). Formerly Director of International Family Entertainment (television channel) (1992-1997) and Natec Resources, Inc.(air pollution control equipment and services company) (1991-1995), Frontier Real Estate, Inc.(residential real estate brokerage) (1994-1999), and Frontier Title (title insurance agency) (1995-June 1999); formerly U.S. Senator (January 1979-January 1991). --------------------------------------------------------------------------------------------------------------------------------- Robert G. Avis, Trustee Formerly (until February 2001) Director and President of A.G. Edwards Capital, Inc. (since 1993). Age: 70 (General Partner of private equity funds), formerly (until March 2000) Chairman, President and Chief Executive Officer of A.G. Edwards Capital, Inc.; formerly (until March 1999) Vice Chairman and Director of A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards & Sons, Inc.(its brokerage company subsidiary); (until March 1999) Chairman of A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor); (until March 2000), a director of A.G. Edwards & Sons and A.G. Edwards Trust Company. --------------------------------------------------------------------------------------------------------------------------------- George C. Bowen, Trustee Formerly (until April 1999) Mr. Bowen held the following positions:Senior Vice President (since 1998). Age: 65 (from September 1987) and Treasurer (from March 1985) of the Manager; Vice President (from June 1983) and Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc., a subsidiary of the Manager and the Fund's Distributor; Senior Vice President (since February 1992), Treasurer (since July 1991) Assistant Secretary and a director (since December 1991) of Centennial Asset Management Corporation; Vice President (since October 1989) and Treasurer (since April 1986) of HarbourView Asset Management Corporation; President, Treasurer and a director of Centennial Capital Corporation (since June 1989); Vice President and Treasurer (since August 1978) and Secretary (since April 1981) of Shareholder Services, Inc.; Vice President, Treasurer and Secretary of Shareholder Financial Services, Inc.(since November 1989); Assistant Treasurer of Oppenheimer Acquisition Corp. (since March 1998); Treasurer of Oppenheimer Partnership Holdings, Inc. (since November 1989); Vice President and Treasurer of Oppenheimer Real Asset Management, Inc.(since July 1996); Treasurer of OppenheimerFunds International Ltd. and Oppenheimer Millennium Funds plc (since October 1997). --------------------------------------------------------------------------------------------------------------------------------- Edward L. Cameron, Trustee Formerly (1974-1999) a partner with PricewaterhouseCoopers LLP (an accounting (since 1999). Age: 63 firm) and Chairman, Price Waterhouse LLP Global Investment Management Industry Services Group (1994-1998). --------------------------------------------------------------------------------------------------------------------------------- Jon S. Fossel, Trustee (since 1990). Formerly (until October 1996) Chairman and a director of the Manager; President and a Age: 59 director of Oppenheimer Acquisition Corp., Shareholder Services, Inc. and Shareholder Financial Services, Inc. --------------------------------------------------------------------------------------------------------------------------------- Sam Freedman, Trustee (since 1996). Formerly (until October 1994) Chairman and Chief Executive Officer of OppenheimerFunds Age: 61 Services; Chairman, Chief Executive Officer and a director of Shareholder Services, Inc.; Chairman, Chief Executive Officer and Director of Shareholder Financial Services, Inc.; Vice President and Director of Oppenheimer Acquisition Corp. and a director of OppenheimerFunds, Inc. --------------------------------------------------------------------------------------------------------------------------------- C. Howard Kast, Trustee (since 1988). Formerly Managing Partner of Deloitte, Haskins & Sells (an accounting firm). Age: 80 --------------------------------------------------------------------------------------------------------------------------------- Robert M. Kirchner, Trustee President of The Kirchner Company (management consultants). (since 1985). Age: 80
Oppenheimer Main Street Growth & Income Fund/VA 33 Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length of Time Served(2) Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee ----------------------------------------------------------------------------------------------------------------------------------- F. William Marshall, Jr., Trustee Formerly (until 1999) Chairman of SIS & Family Bank, F.S.B. (since 2000). Age: 59 (formerly SIS Bank); President, Chief Executive Officer and Director of SIS Bankcorp., Inc. and SIS Bank (formerly Springfield Institution for Savings) (1993-1999); Executive Vice President (until 1999) of Peoples Heritage Financial Group, Inc.; Chairman and Chief Executive Office of Bank of Ireland First Holdings, Inc. and First New Hampshire Banks (1990-1993); Trustee (since 1996) of MassMutual Institutional Funds and of MML Series Investment Fund (open-end investment companies). ----------------------------------------------------------------------------------------------------------------------------------- Charles Albers, Vice President and Portfolio Senior Vice President (since April 1998) of the Manager; a Certified Financial Manager of Oppenheimer Main Street(R) Analyst; an officer and portfolio manager of other Oppenheimer funds; formerly a Small Cap Fund/VA and Main Street(R) vice president and portfolio manager for Guardian Investor Services, the investment Growth & Income Fund/VA management subsidiary of The Guardian Life Insurance Company (1972-April 1998). (since 1999). Age:61 ----------------------------------------------------------------------------------------------------------------------------------- Bruce L. Bartlett, Vice President and Senior Vice President (since January 1999) of the Manager; an officer and portfolio Portfolio Manager of Oppenheimer manager of other Oppenheimer funds, prior to joining the Manager in April 1995, Aggressive Growth Fund/VA he was a vice president and senior portfolio manager at First of America Investment (since 1998). Age: 51 Corp. (September 1986-April 1995). ----------------------------------------------------------------------------------------------------------------------------------- George Evans, Vice President and Vice President of the Manager (since October 1993) and of HarbourView Asset Portfolio Manager of Oppenheimer Management Corporation (since July 1994); an officer and portfolio manager of other Multiple Strategies Fund/VA Oppenheimer funds. (since 2001). Age: 42 ----------------------------------------------------------------------------------------------------------------------------------- John S. Kowalik, Vice President and Senior Vice President of the Manager (since July 1998) and of HarbourView Asset Portfolio Manager of Oppenheimer Management Corporation (since April 2000); an officer and portfolio manager of other Bond Fund/VA (since 1998). Oppenheimer funds; formerly Managing Director and Senior Portfolio Manager at Age: 44 Prudential Global Advisors (June 1989-June 1998). ----------------------------------------------------------------------------------------------------------------------------------- Michael Levine, Vice President and Vice President (since June 1998) of the Manager; an officer and portfolio manager of Portfolio Manager of Oppenheimer other Oppenheimer funds; formerly Assistant Vice President and Portfolio Manager of Multiple Strategies Fund/VA the Manager (April 1996-June 1998); prior to joining the Manager in June 1994, he (since 1998). Age: 36 was a portfolio manager and research associate for Amas Securities, Inc.(February 1990-February 1994). ----------------------------------------------------------------------------------------------------------------------------------- Nikolaos Monoyios, Vice President and Vice President of the Manager (since April 1998); an officer and portfolio manager of Portfolio Manager of Oppenheimer other Oppenheimer funds; a Certified Financial Analyst; formerly a vice president and Main Street(R) Growth & Income Fund/VA portfolio manager for Guardian Investor Services, the investment management (since 1999). Age: 52 subsidiary of The Guardian Life Insurance Company (1979-March 1998). ----------------------------------------------------------------------------------------------------------------------------------- David P. Negri, Vice President and Portfolio Senior Vice President of the Manager (since May 1998) and of HarbourView Asset Manager of Oppenheimer Bond Fund/VA, Management Corporation (since April 1999); an officer and portfolio manager of other High Income Fund/VA, Multiple Strategies Oppenheimer funds; formerly Vice President of the Manager (July 1988-May 1998). Fund/VA and Strategic Bond Fund/VA (since 1990). Age: 47 ----------------------------------------------------------------------------------------------------------------------------------- Jane Putnam, Vice President and Vice President of the Manager (since October 1995); an officer and portfolio manager Portfolio Manager of Oppenheimer of another Oppenheimer fund; before joining the Manager in May 1994, she was a Capital Appreciation Fund/VA portfolio manager and equity research analyst for Chemical Bank (June 1989-May 1994). (since 1994). Age: 40 ----------------------------------------------------------------------------------------------------------------------------------- Thomas P. Reedy, Vice President and Vice President of the Manager (since June 1993) and of HarbourView Asset Management Portfolio Manager of Oppenheimer Corporation (since April 1999); an officer and portfolio manager of other Oppenheimer High Income Fund/VA funds. (since 1998). Age: 39 ----------------------------------------------------------------------------------------------------------------------------------- Richard H. Rubinstein, Vice President and Senior Vice President (since October 1995) of the Manager; an officer and portfolio Portfolio Manager of Oppenheimer Multiple manager of another Oppenheimer fund; formerly a vice president of the Manager Strategies Fund/VA (since 1991). Age: 53 (June 1990-October 1995).
34 Oppenheimer Main Street Growth & Income Fund/VA Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length of Time Served(2) Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee ----------------------------------------------------------------------------------------------------------------------------------- Arthur P. Steinmetz, Vice President and Senior Vice President of the Manager (since March 1993) and of HarbourView Asset Portfolio Manager of Oppenheimer Strategic Management Corporation (since March 2000); an officer and portfolio manager of other Bond Fund/VA (since 1993). Age: 43 Oppenheimer funds. ----------------------------------------------------------------------------------------------------------------------------------- Susan Switzer, Vice President and Portfolio Vice President of the Manager (since December 2000); Assistant Vice President of the Manager of Oppenheimer Multiple Manager (December 1997-December 2000). Prior to joining the Manager, she was a Strategies Fund/VA (since 2001). Age: 35 portfolio manager at Neuberger Berman (November 1994-November 1997). ----------------------------------------------------------------------------------------------------------------------------------- James F. Turner, II, Vice President and Vice President and Portfolio Manager of the Manager since March 26,2001; Portfolio Portfolio Manager of Oppenheimer Manager for Technology Crossover Ventures (May 2000-March 2001); Assistant Vice Aggressive Growth Fund/VA President and Associate Portfolio Manager of the Manager (August 1999-May 2000); (since 2001). Age: 34 Securities Analyst for the Manager (October 1996-August 1999); and a securities analyst with First of America Investment Company (May 1994-October 1996). ----------------------------------------------------------------------------------------------------------------------------------- Barry Weiss, Vice President and Portfolio Vice President of the Manager (since July 2001); an officer and portfolio manager of Manager of Oppenheimer Money Fund/VA other Oppenheimer funds; formerly Assistant Vice President and Senior Credit Analyst (since 2001). Age: 37 of the Manager (February 2000-June 2001). Prior to joining the Manager in February 2000, he was Associate Director, Structured Finance, Fitch IBCA Inc.(April 1998 -February 2000); News Director, Fitch Investors Service (September 1996-April 1998); and Senior Budget Analyst, City of New York, Office of Management & Budget (February 1990-September 1996). ----------------------------------------------------------------------------------------------------------------------------------- William L. Wilby, Vice President and Senior Vice President of the Manager (since July 1994) and of HarbourView Asset Portfolio Manager of Oppenheimer Management Corporation (since May 1999); Senior Investment Officer, Director of Global Securities Fund/VA (since 1995). International Equities (since May 2000) of the Manager; an officer and portfolio Age: 57 manager of another Oppenheimer fund; formerly Vice President of the Manager (October 1991-July 1994) and of HarbourView Asset Management Corporation (June 1992-May 1999). ----------------------------------------------------------------------------------------------------------------------------------- Carol E. Wolf, Vice President and Portfolio Senior Vice President of the Manager; an officer and portfolio manager of other Manager of Oppenheimer Money Fund/VA Oppenheimer funds; formerly Vice President of the Manager (June 1990-June 2000). (since 1998). Age: 50 ----------------------------------------------------------------------------------------------------------------------------------- Mark Zavanelli, Vice President and Assistant Vice President (since May 1998) of the Manager; a Chartered Financial Portfolio Manager of Oppenheimer Analyst; an officer and portfolio manager of other Oppenheimer funds. Prior to joining Main Street Small Cap Fund/VA the Manager in May 1998 he was President of Waterside Capital Management, a registered (since 2001). Age: 31 investment advisor (August 1995-April 1998) and a financial research analyst for Elder Research (June 1997-April 1998). ----------------------------------------------------------------------------------------------------------------------------------- Robert G. Zack, Vice President and Senior Vice President (since May 1985) and Acting General Counsel (since November Secretary (since 2001). Age: 53 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc.(since May 1985), Share-holder Financial Services, Inc.(since November 1989); OppenheimerFunds International Ltd. and Oppenheimer Millennium Fund plc (since October 1997); an officer of other Oppenheimer funds. Formerly Associate General Counsel (May 1981-November 2001). ----------------------------------------------------------------------------------------------------------------------------------- Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer Treasurer (since 1999). Age: 42 (since March 1999) of HarbourView Asset Management Corporation, Shareholder Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder Financial Services, Inc. and Oppenheimer Partnership Holdings, Inc., of OFI Private Investments, Inc. (since March 2000) and of OppenheimerFunds International Ltd. and Oppenheimer Millennium Funds plc (since May 2000); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer Trust Company; Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp.; an officer of other Oppenheimer funds; formerly Principal and Chief Operating Officer, Bankers Trust Company--Mutual Fund Services Division (March 1995-March 1999); Vice President and Chief Financial Officer of CS First Boston Investment Management Corp.(September 1991-March 1995). ----------------------------------------------------------------------------------------------------------------------------------- Robert J. Bishop, Assistant Treasurer Vice President of the Manager/Mutual Fund Accounting (since May 1996); an officer of (since 1996). Age: 43 other Oppenheimer funds; formerly an assistant vice president of the Manager/Mutual Fund Accounting (April 1994-May 1996) and a fund controller of the Manager.
Oppenheimer Main Street Growth & Income Fund/VA 35 OVAF Trustees and Officers (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length of Time Served(2) Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee ----------------------------------------------------------------------------------------------------------------------------------- Scott T. Farrar, Assistant Treasurer Vice President of the Manager/Mutual Fund Accounting (since May 1996); Assistant (since 1996). Age: 36 Treasurer of Oppenheimer Millennium Funds plc (since October 1997); an officer of other Oppenheimer funds; formerly an assistant vice president of the Manager/Mutual Fund Accounting (April 1994-May 1996), and a fund controller of the Manager. ----------------------------------------------------------------------------------------------------------------------------------- Katherine P. Feld, Assistant Secretary Vice President and Senior Counsel of the Manager (since July 1999); Vice President of (since 2001). Age: 43 OppenheimerFunds Distributor, Inc.(since June 1990); an officer of other Oppenheimer funds; formerly a vice president and associate counsel of the Manager (June 1990- July 1999). ----------------------------------------------------------------------------------------------------------------------------------- Kathleen T. Ives, Assistant Secretary Vice President and Assistant Counsel of the Manager (since June 1998); an officer of other (since 2001). Age: 36 Oppenheimer funds; formerly an assistant vice president and assistant counsel of the Manager (August 1994-August 1997). ----------------------------------------------------------------------------------------------------------------------------------- Denis R. Molleur, Assistant Secretary Vice President and Senior Counsel of the Manager (since July 1999); an officer of other (since 2001). Age: 44 Oppenheimer funds; formerly a vice president and associate counsel of the Manager (September 1991-July 1999).
The Fund's Statement of Additional Information contains additional information about the Fund's Trustees and is available without charge upon request. Each Trustee is a Trustee, Director or Managing General Partner of 41 other portfolios in the Oppenheimer Fund complex, except as follows: Messrs. Armstrong and Fossel (40 portfolios), Messrs. Bowen, Cameron and Marshall (36 portfolios), and Mr. Murphy (62 portfolios). 1. The address of each Trustee and Officer is 6803 S. Tucson Way, Englewood, CO 80112-3924, except as follows: the address for the following officers is 498 Seventh Avenue, New York, NY 10018: Messrs. Albers, Bartlett, Evans, Kowalik, Levine, Monoyios, Negri, Reedy, Rubinstein, Steinmetz, Turner, Wilby, Zavanelli, Molleur and Zack, and Mses. Switzer and Feld. 2. Each Trustee and Officer serves for an indefinite term, until his or her resignation, death or removal. 3. John V. Murphy is an "interested person" of the Fund (as defined in the Investment Company Act of 1940), by virtue of his positions as an officer and director of the Fund's Manager, and as a shareholder of its parent company. 36 Oppenheimer Main Street Growth & Income Fund/VA (This Page Intentionally Left Blank) (This Page Intentionally Left Blank) (This Page Intentionally Left Blank) Oppenheimer Main Street(R) Growth & Income Fund/VA A Series of Oppenheimer Varibale Account Funds =============================================================================== Investment Advisor OppenheimerFunds, Inc. =============================================================================== Distributor OppenheimerFunds Distributor, 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. For more complete information about Oppenheimer Main Street Growth & Income Fund/VA, please refer to the Prospectus. To obtain a copy, call your financial advisor, or call OppenheimerFunds, Inc. at 1.800.981.2871. [logo]OppenheimerFunds(R) Distributor, Inc. (C)Copyright 2002 OppenheimerFunds, Inc. All rights reserved.