-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K4ng7uT1HDMof6x8Rybz0FcdXbjt7qjING3nH+sruXj6GwyVVTM+x0Zh/H1cIMno 4V+Tv37Hzapdw5S7OlHKtQ== 0001110538-02-000053.txt : 20020415 0001110538-02-000053.hdr.sgml : 20020415 ACCESSION NUMBER: 0001110538-02-000053 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER VARIABLE ACCOUNT FUNDS CENTRAL INDEX KEY: 0000752737 IRS NUMBER: 840974272 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04108 FILM NUMBER: 02569792 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER VARIABLE LIFE FUNDS DATE OF NAME CHANGE: 19860609 N-30D 1 opp220047.txt Annual Report December 31, 2001 - ------------------------------------------------------------------------------- Oppenheimer Multiple Strategies Fund/VA A Series of Oppenheimer Variable Account Funds [logo]OppenheimerFunds(R) The Right Way to Invest Oppenheimer Variable Account Funds--Oppenheimer Multiple Strategies Fund/VA =============================================================================== Objective Oppenheimer Multiple Strategies Fund/VA, a series of Oppenheimer Variable Account Funds, seeks a total investment return, which includes current income and capital appreciation, from investments in common stocks and other equity securities, bonds and other debt securities and money market securities. =============================================================================== Narrative by Richard Rubinstein, Co-portfolio Manager We are pleased with the Fund's relatively strong returns during a very challenging 12-month period that ended December 31, 2001. Indeed, the Fund's attractive 12-month returns are consistent with our longer term objective, which is to seek to participate during rising markets, and to protect during economic slowdowns. We attribute the Fund's good performance to our conservative investment approach, which emphasizes broad diversification across asset classes, industry groups, investment styles and capitalization ranges. In an environment where many investment styles were particularly hard hit, our success in spreading risk across many different types of investments was especially helpful. Throughout the 12-month reporting period, the Fund's exposure to stocks varied between 50% to 60% of total assets. The stock allocation began the period closer to the high end of that range, and finished the fiscal year near the lower end. As of December 31, 2001, approximately 43% of the Fund's net assets were invested in bonds, a percentage that changed very little during the reporting period. The Fund's cash position of 10% was relatively stable during the past fiscal year, reflecting our cautious approach to investing in an uncertain economic and market environment. Our cash position allowed us to selectively purchase securities in the bond and equity markets following the September 11, 2001, tragedy. The Fund benefited when the value style of investing returned to favor early in 2001. A slowing economy and lower demand for technology products caused the speculative bubble surrounding growth stocks to burst in March 2001, sending high-priced technology and telecommunications shares into a steep and protracted decline. Many investors opted to redeploy their assets into the more reasonably priced stocks of companies with lower, but more consistent, earnings growth. Many investors also increased their commitment to small- and mid-cap stocks because valuations were more attractive. The Fund's stock portfolio contains many of these value-oriented securities, and has benefited accordingly. Also, at the end of the fiscal year, the Fund's holdings were affected by the terrorist attacks on the World Trade Center and the Pentagon on September 11, as the U.S. financial markets experienced sharp declines. The Fund received positive contributions from investments in defensive groups such as healthcare, utilities and food. These investments tend to do relatively well even in weak economic environments because consumers need these services regardless of the economy's problems. We were able to limit some of the negative impact from the Fund's technology investments through stock selection. The Fund enjoyed reasonable returns from companies such as IBM Corp., which reported strong earnings. The Fund's technology holdings also benefited from various hedging techniques such as options and convertibles. International returns continue to lag U.S. returns. Many overseas companies have been hurt by the weak U.S. economy, which led to a reduction in exports to the United States. In addition, the Fund's media and telecommunications stocks have provided lackluster returns, primarily because of overcapacity throughout the communications segment. 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 Multiple Strategies Fund/VA Oppenheimer Variable Account Funds--Oppenheimer Multiple Strategies Fund/VA =============================================================================== On average, during the 12-month period ended December 31, 2001, the Fund's bond returns have matched the benchmark of the Lehman Brothers Aggregate Bond Index. Strong returns from U.S. Government securities, which benefited from lower interest rates and a "flight-to-quality," were generally offset by weak returns from foreign and high yield corporate bonds. The latter categories were hurt by economic slowdowns in the U.S. as well as the financial crisis in Argentina. The extreme volatility in the markets coupled with our cash reserves have allowed us to purchase various bonds opportunistically. We gradually increased the Fund's equity holdings after the Septemeber 11 tragedy. We bought several specialty chemical companies that had low valuations relative to historical norms. In addition, we added to our basic industries, such as paper companies and auto parts manufacturers. We have also increased the Fund's energy position, focusing primarily on companies, such as Unocal Corp., that may benefit from higher natural gas prices over the longer term. More recently, we began to increase the Fund's holdings of technology issues. We expect these stocks to appreciate when the technology group completes the process of reducing excess inventories. In the healthcare area, we have focused more intensely on pharmaceutical companies, which should be relatively immune to cutbacks in medical spending. In addition, major drug companies may also benefit from the opportunity to distribute new, genetically engineered drugs. Our larger-than-average cash position gives us the ability to move quickly when new opportunities arise. However, because of continued economic weakness in the United States and abroad in the aftermath of the September 11 tragedies, we are proceeding cautiously. After all, striving to preserve capital during weak markets and participating in strong ones is what makes Oppenheimer Multiple Strategies Fund/VA part of The Right Way to Invest. - ------------------------------------------------------------------------------- Management's discussion of performance. During the fiscal year that ended December 31, 2001, Oppenheimer Multiple Strategies Fund/VA's performance was strongly influenced by its portfolio manager's investment approach, which seeks opportunities across a variety of asset classes, industry groups, investment styles and capitalization ranges. This multi-disciplinary approach worked relatively well in a highly challenging market environment that was characterized by a weakening U.S. economy, a declining stock market and, near the end of the period, investors' adverse reaction to the terrorist attacks of September 11. The Fund particularly benefited from its investments in small- and mid-cap stocks in the value-oriented healthcare, energy and food-and-beverage groups. Contrary to most other fund's technology holdings, the Fund's technology investments fared relatively well. On the other hand, telecommunications and media stocks detracted from the Fund's performance. The Fund's fixed income portfolio of U.S. Government securities, foreign bonds and high yield corporate bonds had a generally neutral effect on overall performance. Oppenheimer Multiple Strategies Fund/VA 3 Oppenheimer Variable Account Funds--Oppenheimer Multiple Strategies Fund/VA =============================================================================== Comparing the Fund's performance to the market. The graph that follows shows the performance of a hypothetical $10,000 investment in the Fund. 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 graph assumes 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 and the Lehman Brothers Aggregate Bond Index. The S&P 500 Index is a broad-based index of equity securities widely regarded as a general measurement of the performance of the U.S. equity securities market. The Lehman Brothers Aggregate Bond Index is a broad-based, unmanaged index of U.S. corporate bond issues, U.S. Government securities and mortgage-backed securities, widely recognized as a measure of the performance of the domestic debt 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 Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the indices. [line chart] Comparison of Change in Value of $10,000 Hypothetical Investments in:
OVAF/Oppenheimer Multiple Strategies Lehman Brothers Fund/VA S&P 500 Index Aggregate Bond Index 09/30/92 10518 10246 10712 12/31/92 10899 10761 10740 03/31/93 11424 11230 11184 06/30/93 11715 11284 11481 09/30/93 12198 11575 11780 12/31/93 12637 11843 11787 03/31/94 12333 11395 11449 06/30/94 12122 11442 11331 09/30/94 12607 12001 11400 12/31/94 12391 11999 11443 03/31/95 13192 13166 12021 06/30/95 14062 14421 12753 09/30/95 14730 15566 13003 12/31/95 15037 16502 13558 03/31/96 15547 17388 13317 06/30/96 15966 18167 13393 09/30/96 16587 18729 13641 12/31/96 17368 20289 14050 03/31/97 17373 20834 13971 06/30/97 18957 24467 14484 09/30/97 20426 26300 14966 12/31/97 20358 27055 15406 03/31/98 21764 30826 15646 06/30/98 21802 31850 16011 09/30/98 19523 28689 16688 12/31/98 21713 34792 16745 03/31/99 22064 36525 16661 06/30/99 23552 39095 16515 09/30/99 22773 36660 16627 12/31/99 24275 42110 16607 03/31/00 25759 43075 16973 06/30/00 25900 41931 17269 09/30/00 25978 41524 17789 12/31/00 25837 38278 18538 03/31/01 25622 33742 19100 06/30/01 27217 35716 19208 09/30/01 24233 30475 20094 12/31/01 26411 33732 20103
Average Annual Total Return of the Fund at 12/31/01 1-Year 2.22% 5-Year 8.74% 10-Year 10.20% [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 date of the Fund was 2/9/87. The performance information for both indices begins on 12/31/91. 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. An explanation of the calculation of the performance is in the Statement of Additional Information. 4 Oppenheimer Multiple Strategies Fund/VA Statement of Investments December 31, 2001
Market Value Shares See Note 1 ================================================================================= Common Stocks--51.4% - --------------------------------------------------------------------------------- Basic Materials--4.4% - --------------------------------------------------------------------------------- Chemicals--2.3% Bayer AG, Sponsored ADR 8,000 $ 249,200 - --------------------------------------------------------------------------------- Cabot Corp. 30,000 1,071,000 - --------------------------------------------------------------------------------- Dow Chemical Co.(1) 32,000 1,080,960 - --------------------------------------------------------------------------------- Engelhard Corp. 97,000 2,684,960 - --------------------------------------------------------------------------------- Ferro Corp. 88,000 2,270,400 - --------------------------------------------------------------------------------- Goodrich Corp.(1) 40,600 1,080,772 - --------------------------------------------------------------------------------- Hercules, Inc.(2) 142,000 1,420,000 - --------------------------------------------------------------------------------- International Flavors & Fragrances, Inc. 64,000 1,901,440 - --------------------------------------------------------------------------------- Praxair, Inc.(1) 36,000 1,989,000 ----------- 13,747,732 - --------------------------------------------------------------------------------- Metals--1.0% Alcoa, Inc.(1) 39,000 1,386,450 - --------------------------------------------------------------------------------- Companhia Vale do Rio Doce, Sponsored ADR 68,800 1,624,368 - --------------------------------------------------------------------------------- Inco Ltd.(2) 63,000 1,067,220 - --------------------------------------------------------------------------------- UCAR International, Inc.(2) 189,000 2,022,300 ----------- 6,100,338 - --------------------------------------------------------------------------------- Paper--1.1% Georgia-Pacific Corp.(1) 92,000 2,540,120 - --------------------------------------------------------------------------------- Sappi Ltd., Sponsored ADR(2) 90,500 927,625 - --------------------------------------------------------------------------------- Sonoco Products Co. 80,000 2,126,400 - --------------------------------------------------------------------------------- UPM-Kymmene Oyj 34,000 1,127,692 ----------- 6,721,837 - --------------------------------------------------------------------------------- Capital Goods--3.8% - --------------------------------------------------------------------------------- Aerospace/Defense--0.2% Boeing Co.(1) 33,000 1,279,740 - --------------------------------------------------------------------------------- Industrial Services--0.9% Canon, Inc. 48,000 1,651,763 - --------------------------------------------------------------------------------- Pittston Brink's Group 79,000 1,745,900 - --------------------------------------------------------------------------------- Reynolds & Reynolds Co., Cl. A 30,900 749,325 - --------------------------------------------------------------------------------- Service Corp. International(2) 235,000 1,172,650 ----------- 5,319,638 - --------------------------------------------------------------------------------- Manufacturing--2.7% Coherent, Inc.(1)(2) 11,000 340,120 - --------------------------------------------------------------------------------- Gaylord Container Corp., Cl. A(2) 9,232 9,324 - --------------------------------------------------------------------------------- Komatsu Ltd. 196,000 701,389 - --------------------------------------------------------------------------------- Millipore Corp.(1) 26,000 1,578,200 - --------------------------------------------------------------------------------- Morgan Crucible Co. plc 321,800 894,544 - --------------------------------------------------------------------------------- Pall Corp. 66,000 1,587,960 - --------------------------------------------------------------------------------- Titan Corp. (The)(1)(2) 134,000 3,343,300 - --------------------------------------------------------------------------------- Tyco International Ltd.(1) 130,000 7,657,000 ----------- 16,111,837
Oppenheimer Multiple Strategies Fund/VA 5 Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Communication Services--2.5% - --------------------------------------------------------------------------------- Telecommunications: Long Distance--0.8% Allegiance Telecom, Inc.(2) 170,000 $ 1,409,300 - --------------------------------------------------------------------------------- Brocade Communications Systems, Inc.(1)(2) 47,000 1,556,640 - --------------------------------------------------------------------------------- NTL, Inc.(2) 85,000 79,900 - --------------------------------------------------------------------------------- WorldCom, Inc./WorldCom Group(2) 137,000 1,928,960 ------------- 4,974,800 - --------------------------------------------------------------------------------- Telephone Utilities--0.6% SBC Communications, Inc. 75,000 2,937,750 - --------------------------------------------------------------------------------- Tele Norte Leste Participacoes SA (Telemar) 26,283,402 346,957 - --------------------------------------------------------------------------------- Tele Norte Leste Participacoes SA (Telemar), Preference 3,077,585 48,618 - --------------------------------------------------------------------------------- Telefonica SA, BDR 15,632 226,649 ------------- 3,559,974 - --------------------------------------------------------------------------------- Telecommunications: Wireless--1.1% AT&T Wireless Services, Inc.(2) 224,000 3,218,880 - --------------------------------------------------------------------------------- Dobson Communications Corp., Cl. A(2) 55,000 469,700 - --------------------------------------------------------------------------------- Millicom International Cellular SA(2) 198,200 2,408,130 - --------------------------------------------------------------------------------- Telesp Celular Participacoes SA 49,153,261 157,427 ------------- 6,254,137 - --------------------------------------------------------------------------------- Consumer Cyclicals--4.9% - --------------------------------------------------------------------------------- Autos & Housing--0.6% Borg-Warner Automotive, Inc. 22,000 1,149,500 - --------------------------------------------------------------------------------- Delphi Automotive Systems Corp. 70,000 956,200 - --------------------------------------------------------------------------------- IRSA Inversiones y Representaciones SA(2)(3) 323,901 236,448 - --------------------------------------------------------------------------------- Lear Corp.(2) 21,000 800,940 - --------------------------------------------------------------------------------- Wolverine Tube, Inc.(2) 61,900 702,565 ------------- 3,845,653 - --------------------------------------------------------------------------------- Leisure & Entertainment--1.6% Bally Total Fitness Holding Corp.(2) 44,000 948,640 - --------------------------------------------------------------------------------- Callaway Golf Co. 121,000 2,317,150 - --------------------------------------------------------------------------------- Hasbro, Inc. 90,000 1,460,700 - --------------------------------------------------------------------------------- Mattel, Inc. 145,000 2,494,004 - --------------------------------------------------------------------------------- MGM Mirage, Inc.(1)(2) 33,000 952,710 - --------------------------------------------------------------------------------- Shimano, Inc. 100,000 1,136,884 ------------- 9,310,088 - --------------------------------------------------------------------------------- Media--0.7% AOL Time Warner, Inc.(1)(2) 24,000 770,400 - --------------------------------------------------------------------------------- Donnelley (R.R.) & Sons Co.(1) 27,000 801,630 - --------------------------------------------------------------------------------- Reed International plc 180,000 1,493,240 - --------------------------------------------------------------------------------- SCMP Group Ltd. 1,608,000 1,010,426 ------------- 4,075,696
6 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Retail: General--0.3% Federated Department Stores, Inc.(1)(2) 42,100 $ 1,721,890 - --------------------------------------------------------------------------------- Retail: Specialty--1.4% Borders Group, Inc.(2) 110,000 2,182,400 - --------------------------------------------------------------------------------- Children's Place Retail Stores, Inc.(1)(2) 27,500 746,625 - --------------------------------------------------------------------------------- Gap, Inc.(1) 80,000 1,115,200 - --------------------------------------------------------------------------------- Men's Wearhouse, Inc. (The)(2) 45,000 929,250 - --------------------------------------------------------------------------------- Nike, Inc., Cl. B(1) 26,000 1,462,240 - --------------------------------------------------------------------------------- Talbots, Inc. (The)(1) 30,000 1,087,500 - --------------------------------------------------------------------------------- Tiffany & Co. 31,000 975,570 ------------- 8,498,785 - --------------------------------------------------------------------------------- Textile, Apparel & Home Furnishings--0.3% Jones Apparel Group, Inc.(1)(2) 47,000 1,558,990 - --------------------------------------------------------------------------------- Consumer Staples--5.4% - --------------------------------------------------------------------------------- Broadcasting--0.9% Cox Radio, Inc., Cl. A(2) 48,300 1,230,684 - --------------------------------------------------------------------------------- EchoStar Communications Corp., Cl. A(1)(2) 73,000 2,005,310 - --------------------------------------------------------------------------------- Emmis Communications Corp., Cl. A(2) 48,000 1,134,720 - --------------------------------------------------------------------------------- SES Global, FDR 80,000 872,592 ------------- 5,243,306 - --------------------------------------------------------------------------------- Entertainment--2.3% Brinker International, Inc.(1)(2) 78,000 2,321,280 - --------------------------------------------------------------------------------- News Corp. Ltd. (The), Sponsored ADR, Preference 56,000 1,481,760 - --------------------------------------------------------------------------------- Nintendo Co. Ltd. 10,000 1,751,106 - --------------------------------------------------------------------------------- Outback Steakhouse, Inc.(1)(2) 6,500 222,625 - --------------------------------------------------------------------------------- Viacom, Inc., Cl. B(1)(2) 185,000 8,167,750 ------------- 13,944,521 - --------------------------------------------------------------------------------- Food--0.9% ConAgra Foods, Inc. 78,000 1,854,060 - --------------------------------------------------------------------------------- SureBeam Corp., Cl. A(2) 51,000 533,970 - --------------------------------------------------------------------------------- Tyson Foods, Inc., Cl. A 151,000 1,744,050 - --------------------------------------------------------------------------------- Unilever NV, NY Shares 24,000 1,382,640 ------------- 5,514,720 - --------------------------------------------------------------------------------- Food & Drug Retailers--0.1% Companhia Brasileira de Distribuicao Grupo Pao de Acucar, Sponsored ADR 14,000 308,000 - --------------------------------------------------------------------------------- Household Goods--0.5% Wella AG 55,900 2,697,716 - --------------------------------------------------------------------------------- Wella AG, Preference, Non-Vtg. 5,200 268,082 ------------- 2,965,798 - --------------------------------------------------------------------------------- Tobacco--0.7% Philip Morris Cos., Inc. 85,000 3,897,250
Oppenheimer Multiple Strategies Fund/VA 7 Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Energy--4.8% - --------------------------------------------------------------------------------- Energy Services--1.7% Active Power, Inc.(2) 89,000 $ 605,200 - --------------------------------------------------------------------------------- Cooper Cameron Corp.(1)(2) 36,000 1,452,960 - --------------------------------------------------------------------------------- Core Laboratories NV(2) 128,800 1,805,776 - --------------------------------------------------------------------------------- Houston Exploration Co.(2) 34,000 1,141,720 - --------------------------------------------------------------------------------- Noble Drilling Corp.(1)(2) 60,600 2,062,824 - --------------------------------------------------------------------------------- Petroleum Geo-Services ASA, Sponsored ADR(2) 177,000 1,408,920 - --------------------------------------------------------------------------------- Transocean Sedco Forex, Inc.(1) 40,000 1,352,800 ------------- 9,830,200 - --------------------------------------------------------------------------------- Oil: Domestic--2.3% Devon Energy Corp.(1) 50,000 1,932,500 - --------------------------------------------------------------------------------- Exxon Mobil Corp. 66,000 2,593,800 - --------------------------------------------------------------------------------- GlobalSantaFe Corp.(1) 65,000 1,853,800 - --------------------------------------------------------------------------------- Murphy Oil Corp.(1) 12,600 1,058,904 - --------------------------------------------------------------------------------- Ocean Energy, Inc. 40,000 768,000 - --------------------------------------------------------------------------------- Unocal Corp. 130,000 4,689,100 - --------------------------------------------------------------------------------- Westport Resources Corp.(2) 50,000 867,500 ------------- 13,763,604 - --------------------------------------------------------------------------------- Oil: International--0.8% Petroleo Brasileiro SA, Preference 33,300 737,198 - --------------------------------------------------------------------------------- Talisman Energy, Inc. 64,000 2,425,609 - --------------------------------------------------------------------------------- TotalFinaElf SA, B Shares 1,700 242,794 - --------------------------------------------------------------------------------- TotalFinaElf SA, Sponsored ADR 17,100 1,201,104 ------------- 4,606,705 - --------------------------------------------------------------------------------- Financial--6.7% - --------------------------------------------------------------------------------- Banks--4.3% ABN Amro Holding NV 62,700 1,009,930 - --------------------------------------------------------------------------------- Bank of America Corp.(1) 134,000 8,435,300 - --------------------------------------------------------------------------------- Bank of New York Co., Inc. (The) 41,000 1,672,800 - --------------------------------------------------------------------------------- BBVA Banco Frances SA(3) 95,000 280,250 - --------------------------------------------------------------------------------- J.P. Morgan Chase & Co.(1) 230,000 8,360,500 - --------------------------------------------------------------------------------- U.S. Bancorp 69,000 1,444,170 - --------------------------------------------------------------------------------- UBS AG(2) 25,050 1,264,344 - --------------------------------------------------------------------------------- UniCredito Italiano SpA 414,000 1,662,501 - --------------------------------------------------------------------------------- Zions Bancorp(1) 22,000 1,156,760 ------------- 25,286,555 - --------------------------------------------------------------------------------- Diversified Financial--0.2% ICICI Ltd., Sponsored ADR 35,500 212,290 - --------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co.(1) 14,800 827,912 ------------- 1,040,202 - --------------------------------------------------------------------------------- Insurance--0.3% Hartford Financial Services Group, Inc. 20,000 1,256,600 - --------------------------------------------------------------------------------- Zurich Financial Services AG 2,400 563,031 ------------- 1,819,631
8 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Real Estate Investment Trusts--1.5% Camden Property Trust 28,000 $ 1,027,600 - --------------------------------------------------------------------------------- CarrAmerica Realty Corp. 33,000 993,300 - --------------------------------------------------------------------------------- Developers Diversified Realty Corp. 100,000 1,910,000 - --------------------------------------------------------------------------------- Equity Office Properties Trust 46,000 1,383,680 - --------------------------------------------------------------------------------- Host Marriott Corp. 270,000 2,430,000 - --------------------------------------------------------------------------------- Shurgard Storage Centers, Inc. 44,000 1,408,000 ----------- 9,152,580 - --------------------------------------------------------------------------------- Savings & Loans--0.4% Washington Mutual, Inc. 70,000 2,289,000 - --------------------------------------------------------------------------------- Healthcare--5.7% - --------------------------------------------------------------------------------- Healthcare/Drugs--4.4% Abbott Laboratories 34,500 1,923,375 - --------------------------------------------------------------------------------- American Home Products Corp.(1) 41,000 2,515,760 - --------------------------------------------------------------------------------- Anthem, Inc.(2) 23,400 1,158,300 - --------------------------------------------------------------------------------- AstraZeneca plc 38,000 1,742,471 - --------------------------------------------------------------------------------- Biogen, Inc.(1)(2) 19,600 1,124,060 - --------------------------------------------------------------------------------- GlaxoSmithKline plc, ADR 32,433 1,615,812 - --------------------------------------------------------------------------------- Human Genome Sciences, Inc.(1)(2) 12,400 418,128 - --------------------------------------------------------------------------------- Humana, Inc.(2) 82,000 966,780 - --------------------------------------------------------------------------------- Johnson & Johnson(1) 75,000 4,432,500 - --------------------------------------------------------------------------------- Merck & Co., Inc. 40,000 2,352,000 - --------------------------------------------------------------------------------- Millennium Pharmaceuticals, Inc.(2) 35,000 857,850 - --------------------------------------------------------------------------------- Novartis AG 74,800 2,703,126 - --------------------------------------------------------------------------------- Pliva d.d., GDR(4) 20,000 207,000 - --------------------------------------------------------------------------------- Schering-Plough Corp. 57,000 2,041,170 - --------------------------------------------------------------------------------- Watson Pharmaceuticals, Inc.(1)(2) 56,600 1,776,674 ----------- 25,835,006 - --------------------------------------------------------------------------------- Healthcare/Supplies & Services--1.3% Affymetrix, Inc.(1)(2) 41,000 1,547,750 - --------------------------------------------------------------------------------- Boston Scientific Corp.(1)(2) 85,000 2,050,200 - --------------------------------------------------------------------------------- Covance, Inc.(1)(2) 125,500 2,848,850 - --------------------------------------------------------------------------------- Quintiles Transnational Corp.(1)(2) 88,000 1,412,400 ----------- 7,859,200 - --------------------------------------------------------------------------------- Technology--10.4% - --------------------------------------------------------------------------------- Computer Hardware--3.0% EMC Corp.(2) 40,000 537,600 - --------------------------------------------------------------------------------- International Business Machines Corp.(1) 124,000 14,999,040 - --------------------------------------------------------------------------------- Juniper Networks, Inc.(1)(2) 64,000 1,212,800 - --------------------------------------------------------------------------------- Stratos Lightwave, Inc.(2) 25,000 153,750 - --------------------------------------------------------------------------------- Sun Microsystems, Inc.(2) 81,000 996,300 ----------- 17,899,490 - --------------------------------------------------------------------------------- Computer Services--0.0% Palm, Inc.(2) 10,500 40,740
Oppenheimer Multiple Strategies Fund/VA 9 Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Computer Software--1.8% Computer Associates International, Inc.(1) 33,000 $ 1,138,170 - --------------------------------------------------------------------------------- i2 Technologies, Inc.(2) 138,000 1,090,200 - --------------------------------------------------------------------------------- Intuit, Inc.(1)(2) 13,100 560,418 - --------------------------------------------------------------------------------- Oracle Corp.(2) 55,000 759,550 - --------------------------------------------------------------------------------- Peoplesoft, Inc.(1)(2) 67,000 2,693,400 - --------------------------------------------------------------------------------- Red Hat, Inc.(2) 93,000 660,300 - --------------------------------------------------------------------------------- Synopsys, Inc.(1)(2) 35,000 2,067,450 - --------------------------------------------------------------------------------- Veritas Software Corp.(1)(2) 14,000 627,620 - --------------------------------------------------------------------------------- Yahoo!, Inc.(1)(2) 49,000 869,260 ----------- 10,466,368 - --------------------------------------------------------------------------------- Communications Equipment--0.5% Cisco Systems, Inc.(2) 73,000 1,322,030 - --------------------------------------------------------------------------------- L.M. Ericsson Telephone Co., ADR, Cl. B 210,000 1,096,200 - --------------------------------------------------------------------------------- Nortel Networks Corp. 100,000 750,000 ----------- 3,168,230 - --------------------------------------------------------------------------------- Electronics--5.1% Analog Devices, Inc.(1)(2) 63,000 2,796,570 - --------------------------------------------------------------------------------- Applied Micro Circuits Corp.(1)(2) 67,000 758,440 - --------------------------------------------------------------------------------- ASML Holding NV(2) 70,000 1,193,500 - --------------------------------------------------------------------------------- Cognex Corp.(2) 73,000 1,869,530 - --------------------------------------------------------------------------------- General Motors Corp., Cl. H(2) 42,000 648,900 - --------------------------------------------------------------------------------- Intel Corp.(1) 199,000 6,258,550 - --------------------------------------------------------------------------------- International Rectifier Corp.(1)(2) 17,000 592,960 - --------------------------------------------------------------------------------- JDS Uniphase Corp.(2) 95,000 824,600 - --------------------------------------------------------------------------------- Keyence Corp. 8,360 1,389,931 - --------------------------------------------------------------------------------- KLA-Tencor Corp.(2) 48,000 2,378,880 - --------------------------------------------------------------------------------- Lam Research Corp.(2) 81,000 1,880,820 - --------------------------------------------------------------------------------- National Semiconductor Corp.(1)(2) 64,000 1,970,560 - --------------------------------------------------------------------------------- Sony Corp. 13,000 594,155 - --------------------------------------------------------------------------------- Sony Corp., Sponsored ADR 6,000 270,600 - --------------------------------------------------------------------------------- STMicroelectronics NV, NY Registered Shares(1) 64,000 2,026,880 - --------------------------------------------------------------------------------- Teradyne, Inc.(1)(2) 94,000 2,833,160 - --------------------------------------------------------------------------------- Waters Corp.(1)(2) 44,000 1,705,000 ----------- 29,993,036 - --------------------------------------------------------------------------------- Transportation--1.1% - --------------------------------------------------------------------------------- Air Transportation--0.2% Delta Air Lines, Inc. 18,000 526,680 - --------------------------------------------------------------------------------- Singapore Airlines Ltd. 116,000 691,037 ----------- 1,217,717 - --------------------------------------------------------------------------------- Railroads & Truckers--0.6% Burlington Northern Santa Fe Corp. 56,000 1,597,680 - --------------------------------------------------------------------------------- Swift Transportation Co., Inc.(1)(2) 90,000 1,935,900 ----------- 3,533,580
10 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Market Value Shares See Note 1 - --------------------------------------------------------------------------------- Shipping--0.3% United Parcel Service, Inc., Cl. B(1) 34,000 $ 1,853,000 - --------------------------------------------------------------------------------- Utilities--1.7% - --------------------------------------------------------------------------------- Electric Utilities--1.2% Edison International(2) 45,300 684,030 - --------------------------------------------------------------------------------- Energy East Corp. 65,000 1,234,350 - --------------------------------------------------------------------------------- Northeast Utilities Co. 86,000 1,516,180 - --------------------------------------------------------------------------------- NorthWestern Corp. 57,000 1,199,850 - --------------------------------------------------------------------------------- Progress Energy, Inc. 28,000 1,260,840 - --------------------------------------------------------------------------------- Xcel Energy, Inc. 43,000 1,192,820 ------------ 7,088,070 - --------------------------------------------------------------------------------- Gas Utilities--0.5% Dynegy, Inc.(1) 30,000 765,000 - --------------------------------------------------------------------------------- El Paso Corp.(1) 16,000 713,760 - --------------------------------------------------------------------------------- Enron Corp. 245,000 147,000 - --------------------------------------------------------------------------------- NiSource, Inc. 54,000 1,245,240 ------------ 2,871,000 ------------ Total Common Stocks (Cost $242,321,711) 304,568,644 ================================================================================= Preferred Stocks--0.6% - --------------------------------------------------------------------------------- Qwest Trends Trust, 5.75% Cv.(4) 63,000 1,866,375 - --------------------------------------------------------------------------------- Rouse Co. (The), $3.00 Cv., Series B 23,000 1,000,500 - --------------------------------------------------------------------------------- Sovereign Capital Trust II, 7.50% Cv. Preferred Income Equity Redeemable Stock, Units (each unit consists of one preferred plus one warrant to purchase 5.3355 shares of Sovereign Bancorp common stock)(5) 12,500 875,000 ------------ Total Preferred Stocks (Cost $4,740,578) 3,741,875 Units ================================================================================= Rights, Warrants and Certificates--0.0% - --------------------------------------------------------------------------------- Applera Corp./Applied Biosystems Group, Cl. G Wts., Exp.9/11/03(2)(3) 249 3,735 - --------------------------------------------------------------------------------- Covergent Communications, Inc. Wts., Exp. 4/1/08(2)(3) 1,000 375 - --------------------------------------------------------------------------------- HF Holdings, Inc. Wts., Exp. 9/27/09(2)(3) 2,592 259 - --------------------------------------------------------------------------------- Mexico Value Rts., Exp.6/30/03(2) 4,450,000 1,214 - --------------------------------------------------------------------------------- Terex Corp. Rts., Exp. 5/15/02(2)(3) 4,000 70,660 ------------ Total Rights, Warrants and Certificates (Cost $38,888) 76,243 Principal Amount ================================================================================= Mortgage-Backed Obligations--5.4% - --------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg. Pass-Through Certificates, 7%,5/1/29 $ 3,324,595 3,396,008 - --------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 203, Cl. IO, 17.13%, 6/15/29(6) 11,818,643 3,098,700 Series 204, Cl. IO, 11.08%, 5/15/29(6) 10,960,619 2,866,887 - --------------------------------------------------------------------------------- Federal National Mortgage Assn.: 6%, 5/1/16 18,775,107 18,855,090 6.50%, 11/1/27 2,854,692 2,865,455 - --------------------------------------------------------------------------------- Government National Mortgage Assn., 8%, 4/15/23 1,059,389 1,124,584 ------------ Total Mortgage-Backed Obligations (Cost $30,879,542) 32,206,724
Oppenheimer Multiple Strategies Fund/VA 11 Statement of Investments (Continued)
Principal Market Value Amount See Note 1 ================================================================================= U.S. Government Obligations--13.0% - --------------------------------------------------------------------------------- U.S. Treasury Bonds: 6%, 2/15/26 $ 575,000 $ 592,789 7.50%, 11/15/16 1,310,000 1,549,536 8.875%, 8/15/17 2,900,000 3,850,658 STRIPS, 6.30%, 8/15/25(7) 10,965,000 2,732,182 STRIPS, 6.54%, 8/15/15(7) 6,035,000 2,718,822 STRIPS, 7.10%, 11/15/18(7) 13,600,000 4,942,566 STRIPS, 7.26%, 11/15/18(7) 8,500,000 3,089,104 STRIPS, 7.31%, 8/15/19(7) 15,300,000 5,306,667 - --------------------------------------------------------------------------------- U.S. Treasury Nts.: 3.50%, 11/15/06 5,000,000 4,821,485 5%, 8/15/11 5,000,000 4,989,065 5.75%, 8/15/03 3,300,000 3,458,169 5.875%, 9/30/02 15,000,000 15,448,830 6.125%, 8/15/07 3,500,000 3,766,879 6.25%, 2/15/07 8,800,000 9,510,882 6.375%, 8/15/02 5,000,000 5,143,950 6.50%, 8/15/05-10/15/06 4,655,000 5,065,542 ------------- Total U.S. Government Obligations (Cost $72,114,208) 76,987,126 ================================================================================= Foreign Government Obligations--12.0% - --------------------------------------------------------------------------------- Argentina--1.0% Argentina (Republic of) Nts., 14.25%, 11/30/02(9) 13,125,000 5,020,312 - --------------------------------------------------------------------------------- Argentina (Republic of) Par Bonds, 6%, 3/31/23(9) 1,665,000 718,031 ------------- 5,738,343 - --------------------------------------------------------------------------------- Australia--0.4% New South Wales Treasury Corp. Gtd. Bonds, 7%, 4/1/04(AUD) 3,160,000 1,683,915 - --------------------------------------------------------------------------------- Queensland Treasury Corp. Global Exchangeable Gtd. Nts., 10.50%, 5/15/03(AUD) 1,800,000 994,142 ------------- 2,678,057 - --------------------------------------------------------------------------------- Brazil--4.9% Brazil (Federal Republic of) Debt Capitalization Bonds, Series 20 yr., 8%, 4/15/14 21,161,780 16,347,476 - --------------------------------------------------------------------------------- Brazil (Federal Republic of) Eligible Interest Bonds, 3.188%, 4/15/06(9) 14,320,800 12,566,502 ------------- 28,913,978 - --------------------------------------------------------------------------------- Canada--2.0% Canada (Government of) Bonds: 8.50%, 4/1/02(CAD) 1,500,000 956,756 8.75%, 12/1/05(CAD) 12,200,000 8,864,432 Series WL43, 5.75%, 6/1/29(CAD) 3,670,000 2,334,702 ------------- 12,155,890 - --------------------------------------------------------------------------------- Denmark--0.7% Denmark (Kingdom of) Bonds, 8%, 3/15/06(DKK) 32,100,000 4,312,726 - --------------------------------------------------------------------------------- Great Britain--0.7% United Kingdom Treasury Bonds, 6.75%,11/26/04(GBP) 2,680,000 4,089,645 - --------------------------------------------------------------------------------- Mexico--0.7% United Mexican States Collateralized Fixed Rate Par Bonds, Series W-A, 6.25%, 12/31/19 4,450,000 4,121,813 - --------------------------------------------------------------------------------- New Zealand--1.2% New Zealand (Government of) Bonds, 10%, 3/15/02(NZD) 16,800,000 7,065,262
12 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Philippines--0.2% Philippines (Republic of) Bonds, 8.60%, 6/15/27(3) $ 1,500,000 $ 1,128,750 - --------------------------------------------------------------------------------- South Africa--0.2% Eskom Depositary Receipts, Series E168, 11%, 6/1/08(ZAR) 12,570,000 1,008,950 ------------- Total Foreign Government Obligations (Cost $84,109,850) 71,213,414 ================================================================================= Non-Convertible Corporate Bonds and Notes--10.7% - --------------------------------------------------------------------------------- Basic Materials--1.4% - --------------------------------------------------------------------------------- Chemicals--0.5% Avecia Group plc, 11% Sr. Unsec. Nts., 7/1/09 500,000 480,000 - --------------------------------------------------------------------------------- Huntsman Corp./ICI Chemical Co. plc, Zero Coupon Sr. Unsec. Disc. Nts., 13.08%, 12/31/09(7) 1,000,000 255,000 - --------------------------------------------------------------------------------- ISP Holdings, Inc., 10.625% Bonds, 12/15/09(4) 250,000 251,250 - --------------------------------------------------------------------------------- Lyondell Chemical Co.: 9.625% Sr. Sec. Nts., Series A, 5/1/07 250,000 253,125 9.875% Sec. Nts., Series B, 5/1/07 450,000 453,375 10.875% Sr. Sub. Nts., 5/1/09 150,000 139,125 - --------------------------------------------------------------------------------- NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 57,000 56,715 - --------------------------------------------------------------------------------- OM Group, Inc., 9.25% Sr. Sub. Nts., 12/15/11(4) 250,000 256,250 - --------------------------------------------------------------------------------- Rohm & Haas Co., 7.85% Unsec. Debs., 7/15/29 400,000 446,831 - --------------------------------------------------------------------------------- Sterling Chemicals, Inc.: 11.75% Sr. Unsec. Sub. Nts., 8/15/06(8) 335,000 25,125 12.375% Sr. Sec. Nts., Series B, 7/15/06(8) 650,000 542,750 ------------- 3,159,546 - --------------------------------------------------------------------------------- Metals--0.6% AK Steel Corp., 9.125% Sr. Nts., 12/15/06 655,000 673,012 - --------------------------------------------------------------------------------- Alcoa, Inc., 6% Bonds, 1/15/12 750,000 745,948 - --------------------------------------------------------------------------------- Kaiser Aluminum & Chemical Corp.: 10.875% Sr. Nts., Series B, 10/15/06(8) 250,000 228,750 12.75% Sr. Sub. Nts., 2/1/03(8) 1,000,000 735,000 - --------------------------------------------------------------------------------- Metallurg, Inc., 11% Sr. Nts., 12/1/07 450,000 389,250 - --------------------------------------------------------------------------------- United States Steel LLC, 10.75% Sr. Nts., 8/1/08 700,000 672,000 ------------- 3,443,960 - --------------------------------------------------------------------------------- Paper--0.3% Aracruz Celulose SA, 10.375% Debs., 1/31/02(3) 430,000 432,687 - --------------------------------------------------------------------------------- Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 700,000 129,500 - --------------------------------------------------------------------------------- Repap New Brunswick, Inc., 11.50% Sr. Sec. Nts., 6/1/04 200,000 227,500 - --------------------------------------------------------------------------------- Riverwood International Corp.: 10.625% Sr. Unsec. Nts., 8/1/07 500,000 527,500 10.875% Sr. Sub. Nts., 4/1/08 250,000 255,000 ------------- 1,572,187 - --------------------------------------------------------------------------------- Capital Goods--0.8% - --------------------------------------------------------------------------------- Aerospace/Defense--0.1% Boeing Capital Corp., 6.50% Nts., 2/15/12 750,000 747,718
Oppenheimer Multiple Strategies Fund/VA 13 Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Industrial Services--0.3% Allied Waste North America, Inc.: 8.875% Sr. Nts., Series B, 4/1/08 $ 200,000 $ 207,000 10% Sr. Unsec. Sub. Nts., Series B, 8/1/09 1,000,000 1,035,000 - --------------------------------------------------------------------------------- IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09(3)(8) 400,000 74,000 - --------------------------------------------------------------------------------- United Rentals, Inc., 9% Sr. Unsec. Sub. Nts., Series B, 4/1/09 500,000 490,000 ------------ 1,806,000 - --------------------------------------------------------------------------------- Manufacturing--0.4% Blount, Inc., 13% Sr. Sub. Nts., 8/1/09 700,000 325,500 - --------------------------------------------------------------------------------- Caterpillar, Inc., 7.375% Unsec. Debs., 3/1/97 400,000 418,155 - --------------------------------------------------------------------------------- International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 500,000 412,500 - --------------------------------------------------------------------------------- John Deere Capital Corp., 6% Unsec. Nts., 2/15/09 500,000 488,931 - --------------------------------------------------------------------------------- Terex Corp., 9.25% Sr. Sub. Nts., 7/15/11(4) 250,000 251,250 - --------------------------------------------------------------------------------- Tyco International Group SA, 6.375% Nts., 10/15/11 750,000 734,008 - --------------------------------------------------------------------------------- 2,630,344 ------------ Communication Services--1.6% Telecommunications: Long Distance--0.4% Dobson Communications Corp., 10.875% Sr. Unsec. Nts., 7/1/10 400,000 415,000 - --------------------------------------------------------------------------------- Leap Wireless International, Inc., 0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10(10) 300,000 108,000 - --------------------------------------------------------------------------------- Metromedia Fiber Network, Inc., 10% Sr. Unsec. Nts., Series B, 11/15/08 750,000 221,250 - --------------------------------------------------------------------------------- Triton PCS, Inc., 8.75% Sr. Sub. Nts., 11/15/11(4) 400,000 402,000 - --------------------------------------------------------------------------------- Vodafone Group plc, 7.75% Unsec. Unsub. Nts., 2/15/10 400,000 439,988 - --------------------------------------------------------------------------------- WorldCom, Inc., 6.95% Sr. Unsec. Nts., 8/15/28 900,000 815,562 - --------------------------------------------------------------------------------- XO Communications, Inc., 0%/12.25% Sr. Unsec. Disc. Nts., 6/1/09(8)(10) 350,000 29,750 ------------ 2,431,550 - --------------------------------------------------------------------------------- Telecommunications: Wireless--1.2% American Cellular Corp., 9.50% Sr. Sub. Nts., 10/15/09 500,000 487,500 - --------------------------------------------------------------------------------- American Tower Corp., 9.375% Sr. Nts., 2/1/09 800,000 648,000 - --------------------------------------------------------------------------------- Crown Castle International Corp., 9% Sr. Nts., 5/15/11 500,000 450,000 - --------------------------------------------------------------------------------- Horizon PCS, Inc., 0%/14% Sr. Unsec. Sub. Nts., 10/1/10(10) 300,000 156,000 - --------------------------------------------------------------------------------- Leap Wireless International, Inc., 12.50% Sr. Nts., 4/15/10 400,000 306,000 - --------------------------------------------------------------------------------- Loral Space & Communications Ltd., 9.50% Sr. Nts., 1/15/06 200,000 111,000 - --------------------------------------------------------------------------------- Millicom International Cellular SA, 13.50% Sr. Disc. Nts., 6/1/06 1,250,000 831,250 - --------------------------------------------------------------------------------- Nextel Communications, Inc.: 0%/9.95% Sr. Disc. Nts., 2/15/08(10) 200,000 138,000 9.375% Sr. Unsec. Nts., 11/15/09 900,000 713,250 12% Sr. Unsec. Nts., 11/1/08 250,000 221,875 - --------------------------------------------------------------------------------- Omnipoint Corp., 11.50% Sr. Nts., 9/15/09(4) 250,000 290,000 - --------------------------------------------------------------------------------- ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04(2)(3)(8) 200,000 7,000 - --------------------------------------------------------------------------------- Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 750,000 776,250 - --------------------------------------------------------------------------------- Tritel PCS, Inc., 10.375% Sr. Sub. Nts., 1/15/11 400,000 460,000 - --------------------------------------------------------------------------------- Triton PCS, Inc., 9.375% Sr. Unsec. Sub. Nts., 2/1/11 300,000 312,000 - --------------------------------------------------------------------------------- VoiceStream Wireless Corp., 10.375% Sr. Unsec. Nts., 11/15/09 1,010,000 1,151,400 ------------ 7,059,525
14 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Consumer Cyclicals--1.7% - --------------------------------------------------------------------------------- Autos & Housing--0.6% D.R. Horton, Inc., 9.75% Sr. Sub. Nts., 9/15/10 $ 400,000 $ 414,000 - --------------------------------------------------------------------------------- Ford Motor Co., 7.70% Unsec. Debs., 5/15/97 400,000 354,788 - --------------------------------------------------------------------------------- Hayes Lemmerz International, Inc., 11.875% Sr. Nts., 6/15/06(2)(4)(8) 250,000 120,000 - --------------------------------------------------------------------------------- KB Home: 7.75% Sr. Nts., 10/15/04(3) 400,000 408,000 8.65% Sr. Sub. Nts., 12/15/08 600,000 606,000 - --------------------------------------------------------------------------------- Toll Corp., 8.25% Sr. Sub. Nts., 12/1/11 1,750,000 1,741,250 ------------ 3,644,038 - --------------------------------------------------------------------------------- Consumer Services--0.1% Allied Waste North America, Inc., 8.50% Sr. Nts., 12/1/08(4) 300,000 304,500 - --------------------------------------------------------------------------------- Leisure & Entertainment--0.4% Horseshoe Gaming LLC, 8.625% Sr. Sub. Nts., 5/15/09 400,000 415,000 - --------------------------------------------------------------------------------- Host Marriott LP, 9.50% Sr. Nts., 1/15/07(4) 400,000 402,500 - --------------------------------------------------------------------------------- Meristar Hospitality Corp., 8.75% Sr. Unsec. Sub. Nts., 8/15/07 500,000 421,250 - --------------------------------------------------------------------------------- MGM Mirage, Inc., 8.375% Sr. Unsec. Sub. Nts., 2/1/11 400,000 397,000 - --------------------------------------------------------------------------------- Premier Parks, Inc., 9.75% Sr. Nts., 6/15/07 500,000 524,375 ------------- 2,160,125 - --------------------------------------------------------------------------------- Media--0.3% Adelphia Communications Corp., 10.25% Sr. Unsec. Nts., 11/1/06 250,000 256,250 - --------------------------------------------------------------------------------- Lamar Advertising Co., 9.625% Sr. Unsec. Sub. Nts., 12/1/06 150,000 157,312 - --------------------------------------------------------------------------------- Time Warner Entertainment Co. LP, 10.15% Sr. Nts., 5/1/12 500,000 630,413 - --------------------------------------------------------------------------------- Time Warner, Inc., 9.125% Debs., 1/15/13 500,000 593,736 ------------ 1,637,711 - --------------------------------------------------------------------------------- Retail: General--0.1% Wal-Mart Stores, Inc., 7.55% Sr. Unsec. Nts., 2/15/30 400,000 460,562 - --------------------------------------------------------------------------------- Retail: Specialty--0.2% Amazon. com, Inc., 0%/10% Sr. Unsec. Disc. Nts., 5/1/08(10) 500,000 372,500 - --------------------------------------------------------------------------------- CSK Auto, Inc., 12% Sr. Nts., 6/15/06(4) 300,000 303,750 - --------------------------------------------------------------------------------- Petco Animal Supplies, Inc., 10.75% Sr. Sub. Nts., 11/1/11(4) 250,000 256,250 ------------- 932,500 - --------------------------------------------------------------------------------- Consumer Staples--2.9% - --------------------------------------------------------------------------------- Beverages--0.2% Canandaigua Brands, Inc., 8.625% Sr. Unsec. Nts., 8/1/06 700,000 724,500 - --------------------------------------------------------------------------------- Coca-Cola Co. (The), 7.375% Unsec. Debs., 7/29/93 360,000 378,145 ------------- 1,102,645
Oppenheimer Multiple Strategies Fund/VA 15 Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Broadcasting--2.2% Adelphia Communications Corp.: 9.375% Sr. Nts., 11/15/09 $ 750,000 $ 724,688 10.25% Sr. Unsec. Sub. Nts., 6/15/11 700,000 701,750 10.875% Sr. Unsec. Nts., 10/1/10 500,000 513,125 - --------------------------------------------------------------------------------- Chancellor Media Corp., 8.75% Sr. Unsec. Sub. Nts., Series B, 6/15/07 1,000,000 1,045,000 - --------------------------------------------------------------------------------- Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: 0%/9.92% Sr. Unsec. Disc. Nts., 4/1/11(10) 1,750,000 1,275,313 10% Sr. Nts., 4/1/09 600,000 618,750 - --------------------------------------------------------------------------------- Cumulus Media, Inc., 10.375% Sr. Unsec. Sub. Nts., 7/1/08 300,000 315,750 - --------------------------------------------------------------------------------- EchoStar Broadband Corp., 10.375% Sr. Unsec. Nts., 10/1/07 1,300,000 1,368,250 - --------------------------------------------------------------------------------- EchoStar DBS Corp., 9.375% Sr. Unsec. Nts., 2/1/09 700,000 724,500 - --------------------------------------------------------------------------------- Mediacom LLC/Mediacom Capital Corp., 9.50% Sr. Unsec. Nts., 1/15/13 500,000 521,250 - --------------------------------------------------------------------------------- NTL Communications Corp., 0%/12.375% Sr. Unsec. Nts., Series B, 10/1/08(10) 500,000 127,500 - --------------------------------------------------------------------------------- NTL, Inc., 10% Sr. Nts., Series B, 2/15/07 900,000 310,500 - --------------------------------------------------------------------------------- Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 1,000,000 1,085,000 - --------------------------------------------------------------------------------- Sinclair Broadcast Group, Inc.: 8.75% Sr. Sub. Nts., 12/15/07 900,000 902,250 8.75% Sr. Sub. Nts., 12/15/11(4) 250,000 251,250 9% Sr. Unsec. Sub. Nts., 7/15/07 375,000 378,750 10% Sr. Sub. Nts., 9/30/05 200,000 206,666 - --------------------------------------------------------------------------------- Telewest Communications plc: 9.625% Sr. Debs., 10/1/06 500,000 345,000 11% Sr. Disc. Debs., 10/1/07 1,000,000 725,000 - --------------------------------------------------------------------------------- United Pan-Europe Communications NV, 10.875% Sr. Unsec. Nts., Series B, 8/1/09 400,000 54,000 - --------------------------------------------------------------------------------- Viacom, Inc., 7.70% Sr. Unsec. Nts., 7/30/10 750,000 815,202 ------------- 13,009,494 - --------------------------------------------------------------------------------- Entertainment--0.1% AMC Entertainment, Inc., 9.50% Sr. Unsec. Sub. Nts., 2/1/11 300,000 292,875 - --------------------------------------------------------------------------------- Food-0.1% Great Atlantic & Pacific Tea Co., Inc. (The), 9.125% Sr. Nts., 12/15/11 250,000 251,875 - --------------------------------------------------------------------------------- Smithfield Foods, Inc., 8% Sr. Nts., 10/15/09(4) 400,000 414,000 ------------- 665,875 - --------------------------------------------------------------------------------- Food & Drug Retailers--0.2% Fleming Cos., Inc.: 10.50% Sr. Sub. Nts., Series B, 12/1/04 300,000 297,750 10.625% Sr. Sub. Nts., 7/31/07 500,000 480,000 10.625% Sr. Sub. Nts., Series B, 7/31/07 500,000 480,000 ------------- 1,257,750 - --------------------------------------------------------------------------------- Household Goods--0.1% Pennzoil-Quaker State Co., 10% Sr. Nts., 11/1/08(4) 250,000 262,500 - --------------------------------------------------------------------------------- Revlon Consumer Products Corp.: 9% Sr. Nts., 11/1/06 200,000 138,000 12% Sr. Sec. Nts., 12/1/05(4) 250,000 249,688 ------------- 650,188
16 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Energy--0.4% - --------------------------------------------------------------------------------- Energy Services--0.2% Chesapeake Energy Corp., 8.125% Sr. Unsec. Nts., 4/1/11 $ 400,000 $ 390,000 - --------------------------------------------------------------------------------- Frontier Oil Corp., 11.75% Sr. Nts., 11/15/09(3) 250,000 266,250 - --------------------------------------------------------------------------------- Hornbeck-Leevac Marine Services, Inc., 10.625% Sr. Nts., 8/1/08(4) 250,000 255,000 - --------------------------------------------------------------------------------- R&B Falcon Corp., 9.50% Sr. Unsec. Nts., 12/15/08 500,000 565,169 ------------- 1,476,419 - --------------------------------------------------------------------------------- Oil: Domestic--0.2% Conoco, Inc., 6.95% Sr. Unsec. Nts., 4/15/29 400,000 407,999 - --------------------------------------------------------------------------------- Forest Oil Corp., 10.50% Sr. Unsec. Sub. Nts., 1/15/06 400,000 426,000 - --------------------------------------------------------------------------------- Stone Energy Corp., 8.25% Sr. Sub. Nts., 12/15/11(4) 250,000 255,000 - --------------------------------------------------------------------------------- Westport Resources Corp., 8.25% Sr. Unsec. Sub. Nts., 11/1/11(4) 250,000 253,750 ------------- 1,342,749 - --------------------------------------------------------------------------------- Financial--1.0% - --------------------------------------------------------------------------------- Banks--0.1% ABN Amro Bank NV (NY Branch), 7.125% Sub. Nts., Series B, 10/15/93 400,000 411,174 - --------------------------------------------------------------------------------- Bank of America Corp., 7.80% Jr. Unsec. Sub. Nts., 2/15/10 400,000 438,130 ------------- 849,304 - --------------------------------------------------------------------------------- Diversified Financial--0.8% Citigroup, Inc., 6.875% Unsec. Nts., 2/15/98 450,000 434,486 - --------------------------------------------------------------------------------- Federal National Mortgage Assn. Nts.: 5.125%, 2/13/04 1,750,000 1,810,606 7.125%, 1/15/30 400,000 446,292 - --------------------------------------------------------------------------------- General Electric Capital Corp., 7.25% Nts., Series A, 2/1/05 400,000 434,276 - --------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The), 7.80% Sr. Unsec. Unsub. Nts., Series B, 1/28/10 400,000 432,574 - --------------------------------------------------------------------------------- International Business Machines Corp., 7.125% Sr. Unsec. Unsub. Debs., 12/1/96 400,000 405,631 - --------------------------------------------------------------------------------- J.P. Morgan Chase & Co., 6.75% Sub. Nts., 2/1/11 750,000 769,053 - --------------------------------------------------------------------------------- Metris Cos., Inc., 10% Sr. Unsec. Nts., 11/1/04(3) 200,000 191,000 ------------- 4,923,918 - --------------------------------------------------------------------------------- Real Estate Investment Trusts--0.1% Meristar Hospitality Corp., 9.125% Sr. Nts., 1/15/11 500,000 472,500 - --------------------------------------------------------------------------------- Meristar Hospitality Operating Partnership/Finance Corp. II, 10.50% Sr. Nts., 6/15/09(4) 250,000 251,563 ------------- 724,063 - --------------------------------------------------------------------------------- Healthcare--0.1% - --------------------------------------------------------------------------------- Healthcare/Drugs--0.0% Amgen, Inc., 8.125% Unsec. Debs., 4/1/97 91,000 89,352 - --------------------------------------------------------------------------------- Healthcare/Supplies & Services--0.1% Sun Healthcare Group, Inc., 9.375% Sr. Sub. Nts., 5/1/08(2)(3)(8) 1,000,000 150 - --------------------------------------------------------------------------------- Tenet Healthcare Corp., 8.125% Sr. Unsec. Sub. Nts., Series B, 12/1/08(3) 450,000 477,000 ------------- 477,150 - --------------------------------------------------------------------------------- Technology--0.1% - --------------------------------------------------------------------------------- Electronics--0.1% Amkor Technology, Inc., 9.25% Sr. Unsec. Nts., 5/1/06 700,000 672,000 - --------------------------------------------------------------------------------- Motorola, Inc., 5.22% Unsec. Debs., 10/1/97 140,000 86,878 ------------- 758,878
Oppenheimer Multiple Strategies Fund/VA 17 Statement of Investments (Continued)
Principal Market Value Amount See Note 1 - --------------------------------------------------------------------------------- Transportation--0.2% - --------------------------------------------------------------------------------- Air Transportation--0.1% Amtran, Inc., 10.50% Sr. Nts., 8/1/04 $ 500,000 $ 401,250 - --------------------------------------------------------------------------------- Railroads & Truckers--0.1% Norfolk Southern Corp., 7.90% Sr. Bonds, 5/15/97 400,000 414,497 - --------------------------------------------------------------------------------- Utilities--0.5% - --------------------------------------------------------------------------------- Electric Utilities--0.3% AES Corp. (The), 8.875% Sr. Unsec. Nts., 2/15/11 400,000 354,000 - --------------------------------------------------------------------------------- BRL Universal Equipment Corp., 8.875% Sr. Sec. Nts., 2/15/08(4) 500,000 522,500 - --------------------------------------------------------------------------------- Calpine Corp.: 8.50% Sr. Unsec. Nts., 2/15/11 400,000 364,541 8.75% Sr. Nts., 7/15/07 300,000 271,062 - --------------------------------------------------------------------------------- Chesapeake Energy Corp., 8.375% Sr. Nts., 11/1/08(4) 400,000 397,000 ------------- 1,909,103 - --------------------------------------------------------------------------------- Gas Utilities--0.2% Funding Corp./Beaver Valley Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17 989,000 1,083,641 ------------- Total Non-Convertible Corporate Bonds and Notes (Cost $66,196,835) 63,419,417 ================================================================================= Convertible Corporate Bonds and Notes--2.3% - --------------------------------------------------------------------------------- Alkermes, Inc.,3.75% Cv. Sub. Nts., 2/15/07 2,000,000 1,365,000 - --------------------------------------------------------------------------------- CNET Networks, Inc., 5% Cv. Unsec. Nts., 3/1/06 3,000,000 1,927,500 - --------------------------------------------------------------------------------- Gilat Satellite Networks Ltd., 4.25% Cv. Unsec. Sub. Nts., 3/15/05 1,500,000 397,500 - --------------------------------------------------------------------------------- Human Genome Sciences, Inc., 3.75% Cv. Unsec. Nts., 3/15/07 750,000 567,187 - --------------------------------------------------------------------------------- i2 Technologies, Inc., 5.25% Cv. Sub. Nts., 12/15/06 1,000,000 742,500 - --------------------------------------------------------------------------------- Incyte Genomics, Inc., 5.50% Cv. Unsec. Nts.,2/1/07 2,500,000 1,921,875 - --------------------------------------------------------------------------------- Quanex Corp.,6.88% Cv. Unsec. Sub. Nts.,6/30/07 1,200,000 1,243,500 - --------------------------------------------------------------------------------- RF Micro Devices, Inc., 3.75% Cv. Nts., 8/15/05 2,250,000 1,859,063 - --------------------------------------------------------------------------------- Sepracor, Inc., 5% Cv. Sub. Nts., 2/15/07 2,000,000 1,750,000 - --------------------------------------------------------------------------------- Sunrise Assisted Living, Inc., 5.50% Cv. Nts., 6/15/02 1,000,000 1,013,750 - --------------------------------------------------------------------------------- Vitesse Semiconductor Corp., 4% Cv. Sub. Nts., 3/15/05 1,000,000 781,250 ------------- Total Convertible Corporate Bonds and Notes (Cost $13,872,204) 13,569,125 ================================================================================= Repurchase Agreements--4.1% - --------------------------------------------------------------------------------- Repurchase agreement with Banc One Capital Markets, Inc., 1.45%, dated 12/31/01, to be repurchased at $24,163,946 on 1/2/02, collateralized by U.S. Treasury Nts., 4.75%-7.875%, 2/28/02-11/15/08, with a value of $11,720,252 and U.S. Treasury Bonds, 7.25%-11.125%, 8/15/03-5/15/16, with a value of $12,955,866 (Cost $24,162,000) 24,162,000 24,162,000 - --------------------------------------------------------------------------------- Total Investments, at Value (Cost $538,435,816) 99.5% 589,944,568 - --------------------------------------------------------------------------------- Other Assets Net of Liabilities 0.5 3,088,169 ------------ ------------- Net Assets 100.0% $593,032,737 ============ =============
Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies: AUD -- Australian Dollar GBP -- British Pound Sterling CAD -- Canadian Dollar NZD -- New Zealand Dollar DKK -- Danish Krone ZAR -- South African Rand 18 Oppenheimer Multiple Strategies Fund/VA Statement of Investments (Continued) - ------------------------------------------------------------------------------- 1. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
Contracts Expiration Exercise Premium Market Value Subject to Call Dates Price Received See Note 1 - ------------------------------------------------------------------------------------------------------- AOL Time Warner, Inc. 80 7/22/02 $ 42.50 $ 10,160 $ 10,400 Affymetrix, Inc. 120 8/19/02 60.00 33,239 33,600 Alcoa, Inc. 120 4/22/02 40.00 21,839 12,600 American Home Products Corp. 80 4/22/02 65.00 13,760 12,800 Analog Devices, Inc. 100 3/18/02 65.00 45,906 6,500 Applied Micro Circuits Corp. 210 5/20/02 22.50 30,518 4,200 Bank of America Corp. 150 2/18/02 70.00 43,799 3,750 Bank of America Corp. 150 2/18/02 75.00 23,206 - Biogen, Inc. 96 1/21/02 85.00 10,752 - Boeing Co. 100 8/19/02 45.00 23,699 24,000 Boston Scientific Corp. 280 8/19/02 30.00 41,159 42,000 Brinker International, Inc. 170 7/22/02 35.00 21,589 22,100 Brocade Communications Systems, Inc. 51 1/21/02 70.00 9,027 - Brocade Communications Systems, Inc. 75 4/22/02 45.00 15,899 18,750 Children's Place Retail Stores, Inc. 80 6/24/02 30.00 17,359 18,800 Children's Place Retail Stores, Inc. 90 6/24/02 35.00 9,180 10,800 Coherent, Inc. 110 2/18/02 40.00 48,068 550 Computer Associates International, Inc. 150 8/19/02 45.00 27,299 27,750 Cooper Cameron Corp. 80 5/20/02 45.00 51,847 27,200 Covance, Inc. 100 2/18/02 30.00 12,200 - Covance, Inc. 250 5/20/02 25.00 42,999 43,750 Devon Energy Corp. 88 4/22/02 60.00 19,144 440 Devon Energy Corp. 100 7/22/02 45.00 30,859 31,000 Donnelley (R.R.) & Sons Co. 5 3/18/02 30.00 1,335 725 Dow Chemical Co. 40 3/18/02 45.00 5,080 - Dynegy, Inc. 86 6/24/02 55.00 34,141 1,290 EchoStar Communications Corp. 146 6/24/02 35.00 15,621 18,250 El Paso Corp. 160 7/22/02 55.00 31,769 32,000 Federated Department Stores, Inc. 125 8/19/02 42.50 58,373 58,750 Gap, Inc. 437 3/18/02 35.00 77,346 - Georgia-Pacific Corp. 160 4/22/02 45.00 23,444 - GlobalSantaFe Corp. 130 4/22/02 35.00 14,560 13,000 Goodrich Corp. 120 5/20/02 30.00 12,840 13,200 Human Genome Sciences, Inc. 40 4/22/02 55.00 20,279 2,600 Intel Corp. 300 4/22/02 37.50 33,599 34,500 International Business Machines Corp. 184 4/22/02 130.00 45,446 79,120 International Rectifier Corp. 90 3/18/02 50.00 24,479 2,700 Intuit, Inc. 87 1/21/02 55.00 27,578 - Intuit, Inc. 44 4/22/02 50.00 15,344 11,000 J.P. Morgan Chase & Co. 230 6/24/02 45.00 38,410 18,400 Johnson & Johnson 150 7/22/02 65.00 26,174 27,750 Jones Apparel Group, Inc. 235 5/20/02 30.00 126,651 124,550 Jones Apparel Group, Inc. 235 8/19/02 35.00 94,215 91,650 Juniper Networks, Inc. 264 1/21/02 50.00 29,567 - Juniper Networks, Inc. 200 4/22/02 55.00 21,399 - MGM Mirage, Inc. 110 6/24/02 35.00 10,340 10,450 Millipore Corp. 68 1/21/02 70.00 35,835 - Morgan Stanley Dean Witter & Co. 45 4/22/02 70.00 6,615 4,950 Murphy Oil Corp. 66 7/22/02 85.00 49,663 50,160 National Semiconductor Corp. 320 2/18/02 40.00 128,636 11,200
Oppenheimer Multiple Strategies Fund/VA 19 Statement of Investments (Continued) - ------------------------------------------------------------------------------- 1. Outstanding written call options (continued)
Contracts Expiration Exercise Premium Market Value Subject to Call Dates Price Received See Note 1 - ------------------------------------------------------------------------------------------------------- Nike, Inc. 46 1/21/02 $ 60.00 $ 6,302 $ 2,760 Nike, Inc. 52 7/22/02 65.00 16,743 17,160 Noble Drilling Corp. 126 6/24/02 35.00 51,280 56,700 Outback Steakhouse, Inc. 55 2/18/02 30.00 15,234 23,650 Outback Steakhouse, Inc. 10 2/18/02 35.00 1,070 1,050 Peoplesoft, Inc. 150 1/21/02 65.00 41,549 -- Peoplesoft, Inc. 175 4/22/02 50.00 37,099 45,500 Peoplesoft, Inc. 150 7/22/02 50.00 89,547 90,000 Praxair, Inc. 70 4/22/02 55.00 14,839 27,300 Praxair, Inc. 70 7/22/02 60.00 21,489 21,000 Quintiles Transnational Corp. 170 4/22/02 22.50 16,651 2,550 STMicroelectronics NV 160 4/22/02 40.00 33,119 19,200 Swift Transportation Co., Inc. 180 4/22/02 22.50 21,059 32,400 Synopsys, Inc. 350 3/18/02 55.00 243,942 241,500 Talbots, Inc. (The) 90 5/20/02 40.00 19,079 26,550 Talbots, Inc. (The) 90 8/19/02 45.00 26,472 27,000 Teradyne, Inc. 180 4/22/02 35.00 44,460 42,300 Teradyne, Inc. 140 7/22/02 45.00 21,279 22,400 Titan Corp. (The) 350 4/22/02 30.00 110,946 54,250 Transocean Sedco Forex, Inc. 120 5/20/02 40.00 25,439 25,800 Tyco International Ltd. 240 4/22/02 60.00 33,414 88,800 United Parcel Service, Inc. 170 4/22/02 55.00 40,289 39,100 Veritas Software Corp. 70 5/20/02 50.00 31,289 39,200 Viacom, Inc. 270 3/18/02 50.00 30,239 40,500 Waters Corp. 88 2/18/02 45.00 8,667 6,160 Waters Corp. 88 8/19/02 50.00 23,055 23,320 Watson Pharmaceuticals, Inc. 110 1/21/02 75.00 25,169 -- Yahoo!, Inc. 490 7/22/02 30.00 46,058 51,450 Zions Bancorp 44 4/22/02 60.00 4,356 1,980 ---------- ---------- $2,712,380 $2,026,815 ========== ==========
2. Non-income-producing security. 3. Identifies issues considered to be illiquid--See Note 7 of Notes to Financial Statements. 4. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $8,023,376 or 1.35% of the Fund's net assets as of December 31, 2001. 5. Units may be comprised of several components, such as debt and equity and/or warrants to purchase equity at some point in the future. For units which represent debt securities, principal amount disclosed represents total underlying principal. 6. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. 7. Zero coupon bond reflects the effective yield on the date of purchase. 8. Issuer is in default. 9. Represents the current interest rate for a variable or increasing rate security. 10. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. See accompanying Notes to Financial Statements. 20 Oppenheimer Multiple Strategies Fund/VA Statement of Assets and Liabilities December 31, 2001 =================================================================================================== Assets Investments, at value (cost $538,435,816)--see accompanying statement $589,944,568 - --------------------------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 4,380,786 Investments sold 1,311,958 Shares of beneficial interest sold 191,916 Other 5,111 ------------ Total assets 595,834,339 =================================================================================================== Liabilities Bank overdraft 232,751 - --------------------------------------------------------------------------------------------------- Options written, at value (premiums received $2,712,380)--see accompanying statement 2,026,815 - --------------------------------------------------------------------------------------------------- Payables and other liabilities: Shares of beneficial interest redeemed 268,781 Investments purchased 181,440 Shareholder reports 64,359 Trustees'compensation 778 Other 26,678 ------------ Total liabilities 2,801,602 =================================================================================================== Net Assets $593,032,737 ============ =================================================================================================== Composition of Net Assets Par value of shares of beneficial interest $ 38,513 - --------------------------------------------------------------------------------------------------- Additional paid-in capital 519,686,054 - --------------------------------------------------------------------------------------------------- Undistributed (overdistributed) net investment income 18,706,094 - --------------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) on investments and foreign currency transactions 2,405,722 - --------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies 52,196,354 ------------ Net assets--applicable to 38,512,612 shares of beneficial interest outstanding $593,032,737 ============ =================================================================================================== Net Asset Value, Redemption Price Per Share and Offering Price Per Share $15.40
See accompanying Notes to Financial Statements. Oppenheimer Multiple Strategies Fund/VA 21 Statement of Operations For the Year Ended December 31, 2001 ====================================================================================== Investment Income Interest $ 20,684,649 - -------------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $81,777) 4,352,969 ------------- Total income 25,037,618 ====================================================================================== Expenses Management fees 4,312,500 - -------------------------------------------------------------------------------------- Shareholder reports 139,907 - -------------------------------------------------------------------------------------- Custodian fees and expenses 41,912 - -------------------------------------------------------------------------------------- Trustees'compensation 11,436 - -------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees 7,370 - -------------------------------------------------------------------------------------- Other 39,155 ------------- Total expenses 4,552,280 Less reduction to custodian expenses (4,092) ------------- Net expenses 4,548,188 ====================================================================================== Net Investment Income 20,489,430 ====================================================================================== Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investments (including premiums on options exercised) (1,002,138) Closing and expiration of option contracts written 4,323,943 Foreign currency transactions (608,172) ------------- Net realized gain (loss) 2,713,633 - -------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments (12,557,169) Translation of assets and liabilities denominated in foreign currencies 688,527 ------------- Net change (11,868,642) ------------- Net realized and unrealized gain (loss) (9,155,009) ====================================================================================== Net Increase in Net Assets Resulting from Operations $ 11,334,421 =============
See accompanying Notes to Financial Statements. 22 Oppenheimer Multiple Strategies Fund/VA Statements of Changes in Net Assets
Year Ended December 31, 2001 2000 ===================================================================================================== Operations Net investment income (loss) $ 20,489,430 $ 24,683,005 - ----------------------------------------------------------------------------------------------------- Net realized gain (loss) 2,713,633 32,319,691 - ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) (11,868,642) (20,586,722) ------------- ------------ Net increase (decrease) in net assets resulting from operations 11,334,421 36,415,974 ===================================================================================================== Dividends and/or Distributions to Shareholders Dividends from net investment income (22,752,705) (26,143,340) - ----------------------------------------------------------------------------------------------------- Distributions from net realized gain (30,390,350) (37,970,659) ===================================================================================================== Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions 45,543,527 38,213,035 ===================================================================================================== Net Assets Total increase 3,734,893 10,515,010 - ----------------------------------------------------------------------------------------------------- Beginning of period 589,297,844 578,782,834 ------------- ------------ End of period [including undistributed (overdistributed) net investment income of $18,706,094 and $22,670,745, respectively] $ 593,032,737 $589,297,844 ============= ============
See accompanying Notes to Financial Statements. Oppenheimer Multiple Strategies Fund/VA 23 Financial Highlights
Year Ended December 31, 2001 2000 1999 1998 1997 ================================================================================================================ Per Share Operating Data Net asset value, beginning of period $16.55 $17.46 $17.05 $17.01 $15.63 - ---------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .53(1) .72 .82 .71 .62 Net realized and unrealized gain (loss) (.19)(1) .38 1.04 .42 1.95 - ---------------------------------------------------------------------------------------------------------------- Total income (loss) from investment operations .34 1.10 1.86 1.13 2.57 - ---------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.64) (.82) (.59) (.16) (.61) Distributions from net realized gain (.85) (1.19) (.86) (.93) (.58) - ---------------------------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (1.49) (2.01) (1.45) (1.09) (1.19) - ---------------------------------------------------------------------------------------------------------------- Net asset value, end of period $15.40 $16.55 $17.46 $17.05 $17.01 ====== ====== ====== ====== ====== ================================================================================================================ Total Return, at Net Asset Value(2) 2.22% 6.44% 11.80% 6.66% 17.22% ================================================================================================================ Ratios/Supplemental Data Net assets, end of period (in thousands) $593,033 $589,298 $578,783 $622,333 $637,545 - ---------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $599,324 $566,724 $593,151 $640,131 $564,369 - ---------------------------------------------------------------------------------------------------------------- Ratios to average net assets:(3) Net investment income 3.42%(1) 4.36% 4.46% 4.05% 3.86% Expenses 0.76% 0.76% 0.73% 0.76%(4) 0.75%(4) - ---------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 30% 42% 17% 43% 42%
1. Without the adoption of the change in amortization method as discussed in Note 1 in the Notes to Financial Statements, these amounts would have been: Net investment income $ .55 Net realized and unrealized gain (loss) $(.21) Net investment income ratio 3.53% 2. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 3. Annualized for periods of less than one full year. 4. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 24 Oppenheimer Multiple Strategies Fund/VA Notes to Financial Statements =============================================================================== 1. Significant Accounting Policies Oppenheimer Multiple Strategies Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek a high total investment return, which includes current income and capital appreciation in the value of its shares. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Fund. - ------------------------------------------------------------------------------- Securities Valuation. 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). - ------------------------------------------------------------------------------- Security Credit Risk. The Fund invests in high yield securities, which may be subject to a greater degree of credit risk, greater market fluctuations and risk of loss of income and principal, and may be more sensitive to economic conditions than lower yielding, higher rated fixed income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of December 31, 2001, securities with an aggregate market value of $1,762,525, representing 0.30% of the Fund's net assets, were in default. - ------------------------------------------------------------------------------- Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - ------------------------------------------------------------------------------- Repurchase Agreements. The Fund requires its custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System or to have segregated within the custodian's vault, all securities held as collateral for repurchase agreements. The market value of the underlying securities is required to be at least 102% of the resale price at the time of purchase. If the seller of the agreement defaults and the value of the collateral declines, or if the seller enters an insolvency proceeding, realization of the value of the collateral by the Fund may be delayed or limited. - ------------------------------------------------------------------------------- Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by loss carryovers to shareholders. - ------------------------------------------------------------------------------- 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. Oppenheimer Multiple Strategies Fund/VA 25 Notes to Financial Statements (Continued) =============================================================================== 1. Significant Accounting Policies (continued) Classification of Dividends and Distributions to Shareholders. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes 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 an increase in paid-in capital of $709,972, a decrease in undistributed net investment income of $1,701,376, and an increase in accumulated net realized gain on investments of $991,404. This reclassification includes $709,972 distributed in connection with Fund share redemptions which increased paid-in capital and reduced accumulated net realized gain. 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 Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies, as revised, effective for fiscal years beginning after December 15, 2000. The Fund elected to begin amortizing premiums on debt securities effective January 1, 2001. Prior to this date, the Fund did not amortize premiums on debt securities. The cumulative effect of this accounting change had no impact on the total net assets of the Fund, but resulted in a $2,015,559 decrease to cost of securities and a corresponding $2,015,559 increase in net unrealized appreciation, based on securities held as of December 31, 2000. For the year ended December 31, 2001, interest income decreased by $670,460, net realized gain on investments decreased by $238,690, and the change in net unrealized depreciation on investments decreased by $909,150. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - ------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Year Ended December 31, 2001 Year Ended December 31, 2000 ---------------------------- ---------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------- Sold 6,369,169 $ 100,976,185 5,866,277 $ 97,138,029 Dividends and/or distributions reinvested 3,507,792 53,143,055 3,923,745 64,113,999 Redeemed (6,967,146) (108,575,713) (7,335,615) (123,038,993) ---------- ------------- ---------- -------------- Net increase (decrease) 2,909,815 $ 45,543,527 2,454,407 $ 38,213,035 ========== ============= ========== ==============
26 Oppenheimer Multiple Strategies Fund/VA Notes to Financial Statements (Continued) =============================================================================== 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 $222,299,096 and $163,464,200, respectively. As of December 31, 2001, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $539,848,061 was: Gross unrealized appreciation $ 97,675,270 Gross unrealized depreciation (47,578,763) ------------ Net unrealized appreciation (depreciation) $ 50,096,507 ============
=============================================================================== 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 0.72%. - ------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and share-holder 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. =============================================================================== 5. Foreign Currency Contracts A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts for operational purposes and to seek to protect against adverse exchange rate fluctuations. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates as provided by a reliable bank, dealer or pricing service. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign currency transactions. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. Oppenheimer Multiple Strategies Fund/VA 27 Notes to Financial Statements (Continued) =============================================================================== 6. Option Activity The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Shares subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the year ended December 31,2001, was as follows:
Call Options Put Options --------------------------- ------------------------ Number of Amount of Number of Amount of Contracts Premiums Contracts Premiums - ---------------------------------------------------------------------------------------------- Options outstanding as of December 31,2000 6,938 $ 2,050,546 90 $ 66,479 Options written 23,446 6,104,117 4,028 1,462,308 Options closed or expired (18,490) (5,257,303) (777) (207,978) Options exercised (683) (184,980) (3,341) (1,320,809) ------- ----------- ------ ---------- Options outstanding as of December 31,2001 11,211 $ 2,712,380 -- $ -- ======= =========== ====== ==========
================================================================================ 7. Illiquid Securities As of December 31, 2001, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. The aggregate value of illiquid securities subject to this limitation as of December 31,2001, was $3,576,564, which represents 0.60% of the Fund's net assets. 28 Oppenheimer Multiple Strategies Fund/VA Independent Auditors' Report =============================================================================== The Board of Trustees and Shareholders of Oppenheimer Multiple Strategies Fund/VA: We have audited the accompanying statement of assets and liabilities of Oppenheimer Multiple Strategies 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 each of the five years in the period then ended. 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 Multiple Strategies 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 each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Denver, Colorado January 23, 2002 Oppenheimer Multiple Strategies Fund/VA 29 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 and distributions of $1.4925 per share were paid to shareholders, on March 16, 2001, of which $0.5850 was designated as a "capital gain distribution" for federal income tax purposes. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of capital assets held for more than one year (long-term capital gains). 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 14.80% 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. 30 Oppenheimer Multiple Strategies Fund/VA 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 George Evans, Vice President Michael S. Levine, Vice President David P. Negri, Vice President Richard H. Rubinstein, Vice President Susan Switzer, 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 Tremont Advisers, 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.
Oppenheimer Multiple Strategies Fund/VA 31 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, Formerly (until April 1999) Mr. Bowen held the following positions:Senior Vice President Trustee (since 1998) (from September 1987) and Treasurer (from March 1985) of the Manager; Vice President Age: 65 (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, Formerly (1974-1999) a partner with PricewaterhouseCoopers LLP (an accounting Trustee (since 1999) firm) and Chairman, Price Waterhouse LLP Global Investment Management Industry Age: 63 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
32 Oppenheimer Multiple Strategies 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 - ----------------------------------------------------------------------------------------------------------------------------------- F. William Marshall, Jr., Trustee Formerly (until 1999) Chairman of SIS & Family Bank, F.S.B. (formerly SIS Bank); (since 2000). Age: 59 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 Senior Vice President (since April 1998) of the Manager; a Certified Financial Analyst; Portfolio an officer and portfolio manager of other Oppenheimer funds; formerly a vice president Manager of Oppenheimer Main Street(R) and portfolio manager for Guardian Investor Services, the investment management Small Cap Fund/VA and Main Street(R) subsidiary of The Guardian Life Insurance Company (1972-April 1998). Growth & Income Fund/VA (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 Corp. (since 1998). Age: 51 (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 Oppenheimer funds; formerly Managing Director and Senior Portfolio Manager at (since 1998). 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 portfolio manager for Guardian Investor Services, the investment management subsidiary of Fund/VA (since 1999). Age: 52 The Guardian Life Insurance Company (1979-March 1998). - ----------------------------------------------------------------------------------------------------------------------------------- David P. Negri, Vice President and Senior Vice President of the Manager (since May 1998) and of HarbourView Asset Portfolio Manager of Oppenheimer Management Corporation (since April 1999); an officer and portfolio manager of other Bond Fund/VA, High Income Fund/VA, Oppenheimer funds; formerly Vice President of the Manager (July 1988--May 1998). Multiple Strategies 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 of Portfolio Manager of Oppenheimer another Oppenheimer fund; before joining the Manager in May 1994, she was a portfolio Capital Appreciation Fund/VA 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 Senior Vice President (since October 1995) of the Manager; an officer and portfolio and Portfolio Manager of Oppenheimer manager of another Oppenheimer fund; formerly a vice president of the Manager Multiple Strategies Fund/VA (June 1990-October 1995). (since 1991). Age: 53
Oppenheimer Multiple Strategies 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 - ---------------------------------------------------------------------------------------------------------------------------------- Arthur P. Steinmetz, Vice President Senior Vice President of the Manager (since March 1993) and of HarbourView Asset and Portfolio Manager of Oppenheimer Management Corporation (since March 2000); an officer and portfolio manager of other Strategic Bond Fund/VA (since 1993). Oppenheimer funds. Age: 43 - ---------------------------------------------------------------------------------------------------------------------------------- Susan Switzer, Vice President and Vice President of the Manager (since December 2000); Assistant Vice President of the Portfolio Manager of Oppenheimer Manager (December 1997-December 2000). Prior to joining the Manager, she was a Multiple Strategies Fund/VA portfolio manager at Neuberger Berman (November 1994-November 1997). (since 2001). Age: 35 - ---------------------------------------------------------------------------------------------------------------------------------- James F. Turner, II, Vice President Vice President and Portfolio Manager of the Manager since March 26, 2001; Portfolio and 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 Vice President of the Manager (since July 2001); an officer and portfolio manager of other Portfolio Manager of Oppenheimer Oppenheimer funds; formerly Assistant Vice President and Senior Credit Analyst of the Money Fund/VA (since 2001). Age: 37 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 manager Age: 57 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 Senior Vice President of the Manager; an officer and portfolio manager of other Portfolio Manager of Oppenheimer Oppenheimer funds; formerly Vice President of the Manager (June 1990-June 2000). Money Fund/VA (since 1998). Age: 50 - ---------------------------------------------------------------------------------------------------------------------------------- Mark Zavanelli, Vice President and Assistant Vice President (since May 1998) of the Manager; a Chartered Financial Analyst; Portfolio Manager of Oppenheimer an officer and portfolio manager of other Oppenheimer funds. Prior to joining the Main Street(r) Small Cap Fund/VA 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 2001) Secretary (since 2001). Age: 53 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, Treasurer Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer (since (since 1999). Age: 42 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.
34 Oppenheimer Multiple Strategies 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 - ---------------------------------------------------------------------------------------------------------------------------------- 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. Oppenheimer Multiple Strategies Fund/VA 35 Oppenheimer Multiple Strategies Fund/VA A Series of Oppenheimer Variable 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 Multiple Strategies Fund/VA, please refer to the Prospectus. To obtain a copy, call your financial advisor, or call OppenheimerFunds, Inc. at 1.800.981.2871.
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