-----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, UAv9Z9X4cREJr5kCWg5eUYn48omO5WqShQnlNn0d1xmoR1Vd19UKEDzKWvZPrZf0 4C7UcLBX/DlrEgGECupezg== 0001110538-02-000055.txt : 20020415 0001110538-02-000055.hdr.sgml : 20020415 ACCESSION NUMBER: 0001110538-02-000055 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: 02569804 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 opp220048.txt Annual Report December 31, 2001 - -------------------------------------------------------------------------------- Oppenheimer Money Fund/VA A Series of Oppenheimer Variable Account Funds [logo]OppenheimerFunds(R) The Right Way to Invest Oppenheimer Variable Account Funds--Oppenheimer Money Fund/VA ================================================================================ Objective Oppenheimer Money Fund/VA, a series of Oppenheimer Variable Account Funds, seeks maximum current income in "money market" securities consistent with low capital risk and the maintenance of liquidity. Money market securities may include short-term government securities, certificates of deposit (CDs), bankers' acceptances and commercial paper. ================================================================================ Narrative By Carol E. Wolf, Co-portfolio Manager During the fiscal year ended December 31, 2001, Oppenheimer Money Fund/VA produced an annualized yield of 3.79% and an annualized yield including the effects of compounding of 3.86%. The Fund's seven-day and compounded seven-day yields on December 31, 2001, were 1.66% and 1.67%, respectively.(1) The U.S. officially entered a recession in March 2001, ending an unprecedented run of 10 years of economic growth. With the events of September 11, massive job losses and disappointing company earnings, the economy has experienced large-scale deterioration during the second half of our reporting period. The Federal Reserve Board (the Fed) has moved aggressively to bolster the nation's troubled economy by making 11 successive rate cuts in 2001, bringing the benchmark interest rate down from 6.5% to 1.75%, its lowest level in almost 40 years. The continued reduction of interest rates has had a profound effect on the yields the Fund is able to generate. Faced with an extremely challenging investment environment, Oppenheimer Money Fund/VA continues to perform in-depth reviews of the companies in which we invest in order to insure that they are of high credit quality and will not feel the ripple effect from a weakening economy. As a result, we have avoided taking substantial positions in such industries as airlines, travel, hotels and energy traders. With current yields at a 40-year low, the Fund has been investing in relatively longer maturity instruments to capture their higher yields. As a result, the portfolio's average maturities were extended to nearly 60 days. Oppenheimer Money Fund/VA has a portion of its portfolio invested in securities that mature in one day to provide a buffer against cash flow volatility. Given the volatility in certain sectors and the vulnerability of issuers to rumors, we have become increasingly selective about the issuers we included in our portfolio over the past year. In addition, to minimize risk, we monitored our credits on an ongoing basis. Please note that an investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation nor any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The current investment outlook for the Fund is based on the expectation of lower yields in the event of further Fed interest rate cuts. We believe the Fed could still lower rates even further in 2002 to help jump-start the economic recovery. Given that money market funds hold obligations that mature in a much shorter time frame than those of other funds, we will feel the impact of further rate cuts very quickly. In a climate of such severely depressed interest rates, we will continue to invest in high quality names and to strive to maximize shareholder returns. We will seek out investment strategies that try to provide the liquidity and safety that we have committed to you, and that is an important part of what makes Oppenheimer Money Fund/VA part of The Right Way to Invest. In reviewing performance, please remember that past performance cannot guarantee future results. Because of ongoing market volatility, the Fund's performance may be subject to fluctuations, and current performance may be less than the results shown. 1. Compounded yields assume reinvestment of dividends, and do not include changes associated with the separate account products which offer this Fund. 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 Money Fund/VA Statement of Investments December 31, 2001
Principal Value Amount See Note 1 ========================================================================================== Repurchase Agreements--3.6% - ------------------------------------------------------------------------------------------ Repurchase agreement with PaineWebber, Inc., 1.70%, dated 12/31/01, to be repurchased at $13,301,256 on 1/2/02, collateralized by Federal Home Loan Mtg. Corp., 6.50%, 11/1/31, with a value of $13,597,447 (Cost $13,300,000) $13,300,000 $13,300,000 ========================================================================================== Bankers' Acceptances--1.3% - ------------------------------------------------------------------------------------------ U.S. Bank NA, MN, 2.25%, 1/24/02 (Cost $5,000,000) 5,000,000 5,000,000 ========================================================================================== Certificates of Deposit--9.9% - ------------------------------------------------------------------------------------------ Domestic Certificates of Deposit--1.9% Citibank NA: 2.11%, 2/1/02 1,000,000 1,000,000 2.17%, 1/30/02 1,000,000 1,000,111 - ------------------------------------------------------------------------------------------ National Bank of Commerce, Tennessee: 1.94%, 2/15/02 5,000,000 5,000,000 ----------- 7,000,111 - ------------------------------------------------------------------------------------------ Yankee Certificates of Deposit--8.0% Abbey National Treasury Services (gtd. by Abbey National plc): 2.41%, 4/2/02 5,000,000 5,002,220 2.48%, 1/3/02 2,000,000 2,000,010 - ------------------------------------------------------------------------------------------ ABN AMRO Bank NV: 3.445%, 2/13/02 5,000,000 5,000,029 - ------------------------------------------------------------------------------------------ BNP Paribas, Chicago: 2.33%, 1/18/02 3,000,000 3,000,000 2.40%, 1/10/02 2,000,000 2,000,000 - ------------------------------------------------------------------------------------------ Lloyds TSB Bank plc, New York: 1.90%, 2/14/02 2,500,000 2,500,000 - ------------------------------------------------------------------------------------------ National Westminster Bank plc, New York: 2.51%, 1/4/02 1,000,000 1,000,001 - ------------------------------------------------------------------------------------------ Rabobank Nederland NV, New York: 2.03%, 5/28/02 2,000,000 1,999,435 - ------------------------------------------------------------------------------------------ Royal Bank of Canada, New York Branch: 2.34%, 1/17/02 1,000,000 1,000,000 - ------------------------------------------------------------------------------------------ Royal Bank of Scotland, New York: 1.89%, 6/4/02 6,000,000 6,000,000 ----------- 29,501,695 ----------- Total Certificates of Deposit (Cost $36,501,806) 36,501,806 ========================================================================================== Direct Bank Obligations--6.2% - ------------------------------------------------------------------------------------------ Lloyds TSB Bank plc: 2.16%, 1/25/02 5,000,000 4,992,800 - ------------------------------------------------------------------------------------------ Nationwide Building Society: 1.89%, 2/14/02 4,000,000 3,990,760 2.04%, 2/7/02 3,000,000 2,993,710 2.23%, 2/11/02 2,000,000 1,994,921 - ------------------------------------------------------------------------------------------ Nordea North America, Inc. (gtd. by Merita Bank plc): 2.10%, 5/20/02 5,000,000 4,959,458 2.20%, 4/15/02 2,000,000 1,987,289 2.28%, 4/17/02 2,000,000 1,986,573 ----------- Total Direct Bank Obligations (Cost $22,905,511) 22,905,511
Oppenheimer Money Fund/VA 3 Statement of Investments (Continued)
Principal Value Amount See Note 1 =============================================================================================== Letters of Credit--5.5% - ----------------------------------------------------------------------------------------------- Barclays Bank plc, guaranteeing commercial paper of Primer Banco del Istmo SA: 3.37%, 2/26/02 $5,000,000 $ 4,973,789 - ----------------------------------------------------------------------------------------------- Danske Bank AS, guaranteeing commercial paper of Danske Corp., Series A: 2.33%, 1/9/02 5,000,000 4,997,411 - ----------------------------------------------------------------------------------------------- Societe Generale, guaranteeing commercial paper of Societe Generale North America: 2.26%, 1/14/02 3,500,000 3,497,144 2.30%, 2/11/02 2,000,000 1,994,761 - ----------------------------------------------------------------------------------------------- Toronto Dominion Bank, guaranteeing commercial paper of Toronto Dominion Holdings, Inc.: 1.795%, 3/20/02 5,000,000 4,980,554 ----------- Total Letters of Credit (Cost $20,443,659) 20,443,659 =============================================================================================== Short-Term Notes-62.6% - ----------------------------------------------------------------------------------------------- Aerospace/Defense--1.1% BAE Systems Holdings, Inc.: 2.12%, 1/29/02(1) 3,000,000 2,995,053 2.39%, 1/14/02(1) 1,000,000 999,137 ----------- 3,994,190 - ----------------------------------------------------------------------------------------------- Asset-Backed--18.2% AriesOne Metafolio Corp.: 2.05%, 1/8/02(1) 7,849,000 7,845,871 - ----------------------------------------------------------------------------------------------- Asset Portfolio Funding: 1.83%, 3/20/02(1) 1,000,000 996,035 2.42%, 1/7/02(1) 2,000,000 1,999,193 - ----------------------------------------------------------------------------------------------- BILLS Securitisation Ltd.: 1.87%, 6/7/02 2,000,000 1,983,689 2.07%, 2/27/02 2,000,000 1,993,445 - ----------------------------------------------------------------------------------------------- Breeds Hill Capital Co. LLC, Series A: 2.20%, 1/4/02(1) 1,348,000 1,347,753 - ----------------------------------------------------------------------------------------------- Charta Corp.: 2.29%, 1/17/02(1) 2,000,000 1,997,964 - ----------------------------------------------------------------------------------------------- Corporate Receivables Corp.: 2.04%, 2/20/02(1) 5,000,000 4,985,833 - ----------------------------------------------------------------------------------------------- Crown Point Capital Co.: 1.85%, 3/12/02(1) 2,000,000 1,992,806 - ----------------------------------------------------------------------------------------------- CXC, Inc.: 2.18%, 2/7/02(1) 2,000,000 1,995,519 - ----------------------------------------------------------------------------------------------- GOVCO, Inc.: 2.04%, 2/19/02(1) 3,000,000 2,991,670 2.35%, 1/7/02(1) 2,000,000 1,999,217 - ----------------------------------------------------------------------------------------------- Greyhawk Funding LLC: 1.82%, 3/5/02(1) 5,000,000 4,984,075 1.95%, 2/15/02(1) 5,000,000 4,987,812 - ----------------------------------------------------------------------------------------------- Lexington Parker Capital Co. LLC: 1.94%, 6/3/02(1) 2,000,000 1,983,510 2.10%, 2/5/02(1) 2,000,000 1,995,917 3.49%, 1/25/02(1) 3,000,000 2,993,020
4 Oppenheimer Money Fund/VA Statement of Investments (Continued)
Principal Value Amount See Note 1 - -------------------------------------------------------------------------------- Asset-Backed (continued) Scaldis Capital LLC: 1.88%, 5/31/02(1) $ 7,000,000 $ 6,945,167 2.125%, 5/17/02(1) 2,000,000 1,983,755 - -------------------------------------------------------------------------------- Victory Receivables Corp.: 2.12%, 1/22/02(1) 5,000,000 4,993,817 - -------------------------------------------------------------------------------- VVR Funding LLC: 1.84%, 3/7/02(1) 4,413,000 4,398,339 ----------- 67,394,407 - -------------------------------------------------------------------------------- Banks--0.5% J.P. Morgan Chase & Co.: 2.30%, 1/15/02 2,000,000 1,998,211 - -------------------------------------------------------------------------------- Beverages--1.7% Coca Cola Enterprises, Inc.: 2.33%, 1/18/02(1) 1,500,000 1,498,350 - -------------------------------------------------------------------------------- Diageo Capital plc: 2.155%, 1/30/02(1) 4,000,000 3,993,072 2.30%, 2/6/02(1) 1,000,000 997,700 ----------- 6,489,122 - -------------------------------------------------------------------------------- Broker/Dealers--3.8% Banc of America Securities LLC: 2.075%, 1/2/02(2) 5,000,000 5,000,000 - -------------------------------------------------------------------------------- Goldman Sachs Group LP, Promissory Note: 1.99%, 6/14/02(3) 4,000,000 4,000,000 - -------------------------------------------------------------------------------- Morgan Stanley Dean Witter & Co.(Masternote Facility): 2.125%, 12/2/02(2) 5,000,000 5,000,000 ----------- 14,000,000 - -------------------------------------------------------------------------------- Commercial Finance--5.9% Caterpillar Financial Services Corp.: 2.34%, 1/14/02 2,900,000 2,897,549 - -------------------------------------------------------------------------------- Countrywide Home Loans, Series J: 2.214%, 6/7/02(2) 5,000,000 4,999,360 - -------------------------------------------------------------------------------- Private Export Fund Corp.: 2.24%, 4/9/02(1) 5,000,000 4,969,511 - -------------------------------------------------------------------------------- Tyco Capital Corp.: 1.89%, 2/4/02 2,000,000 1,996,430 2%, 2/27/02 2,000,000 1,993,667 2.05%, 2/25/02 5,000,000 4,984,340 ----------- 21,840,857 - -------------------------------------------------------------------------------- Consumer Finance--2.7% American General Finance Corp.: 1.75%, 3/13/02 10,000,000 9,965,486 - -------------------------------------------------------------------------------- Diversified Financial--2.7% General Electric Capital Services: 2.32%, 2/7/02 2,000,000 1,995,231 - -------------------------------------------------------------------------------- National Rural Utilities Cooperative Finance Corp.: 2.03%, 1/15/02 3,000,000 2,997,632 - -------------------------------------------------------------------------------- Prudential Funding LLC: 2.33%, 1/16/02 5,000,000 4,995,146 ----------- 9,988,009
Oppenheimer Money Fund/VA 5 Statement of Investments (Continued)
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------- Diversified Media--1.3% McGraw-Hill Cos., Inc.: 1.82%, 4/17/02 $5,000,000 $ 4,973,206 - --------------------------------------------------------------------------------------- Food--1.8% Nestle Capital Corp.: 1.795%, 3/21/02(1) 5,000,000 4,980,305 2.08%, 5/30/02(1) 1,800,000 1,784,504 ----------- 6,764,809 - --------------------------------------------------------------------------------------- Gas Utilities--1.9% Centrica plc: 2.04%, 5/15/02(1) 3,000,000 2,977,220 2.32%, 1/18/02(1) 4,000,000 3,995,618 ----------- 6,972,838 - --------------------------------------------------------------------------------------- Healthcare/Drugs--3.4% American Home Products: 2%, 2/13/02(1) 1,500,000 1,496,417 2.05%, 2/12/02(1) 3,000,000 2,992,825 2.15%, 2/14/02(1) 1,000,000 997,372 2.35%, 1/29/02(1) 5,000,000 4,990,861 - --------------------------------------------------------------------------------------- Glaxo Wellcome plc: 2.38%, 1/11/02(1) 2,000,000 1,998,678 ----------- 12,476,153 - --------------------------------------------------------------------------------------- Insurance--8.6% Cooperative Assn. of Tractor Dealers, Inc., Series A: 1.83%, 3/18/02 3,500,000 3,486,478 2.05%, 5/3/02 2,000,000 1,986,106 2.15%, 1/8/02 3,000,000 2,998,746 2.25%, 1/22/02 900,000 898,819 - --------------------------------------------------------------------------------------- ING America Insurance Holdings, Inc.: 1.75%, 3/6/02 4,000,000 3,987,555 2.19%, 2/7/02 4,000,000 3,991,243 2.29%, 2/14/02 3,000,000 2,991,897 - --------------------------------------------------------------------------------------- Marsh U.S.A., Inc.: 2.33%, 1/9/02(1) 2,000,000 1,998,964 - --------------------------------------------------------------------------------------- Metropolitan Life Insurance Co.: 2.194%, 1/2/02(2) 3,500,000 3,500,000 - --------------------------------------------------------------------------------------- Pacific Life Insurance Co.: 2.168%, 1/2/02(2)(3) 4,000,000 4,000,000 - --------------------------------------------------------------------------------------- Travelers Insurance Co.: 2.08%, 9/13/02(2)(3) 2,000,000 2,000,000 ----------- 31,839,808 - --------------------------------------------------------------------------------------- Metals/Mining--1.7% Rio Tinto America, Inc. (gtd. by Rio Tinto plc & Rio Tinto Ltd.): 1.80%, 3/21/02(1) 6,226,000 6,201,407 - --------------------------------------------------------------------------------------- Nondurable Household Goods--2.7% Gillette Co.: 1.82%, 4/2/02(1) 5,000,000 4,976,997 3.31%, 2/25/02(1) 5,000,000 4,974,715 ----------- 9,951,712
6 Oppenheimer Money Fund/VA Statement of Investments (Continued)
Principal Value Amount See Note 1 - ---------------------------------------------------------------------------- Oil: International--1.6% BP Amoco Capital plc: 2.24%, 4/3/02 $ 5,000,000 $ 4,971,378 - ---------------------------------------------------------------------------- Chevron UK Investment plc (gtd. by Chevron Corp.): 2.38%, 1/14/02 1,000,000 999,141 ------------ 5,970,519 - ---------------------------------------------------------------------------- Special Purpose Financial--3.0% Independence Funding LLC: 1.83%, 2/21/02(1) 2,000,000 1,994,815 - ---------------------------------------------------------------------------- K2 (USA) LLC: 2.08%, 4/22/02(1) 4,000,000 3,974,347 - ---------------------------------------------------------------------------- MONET Trust, Series 2000-1: 1.97%, 6/28/02(2)(3) 1,000,000 1,000,000 - ---------------------------------------------------------------------------- Sigma Finance, Inc.: 3.35%, 3/7/02(1) 4,000,000 3,975,806 ------------ 10,944,968 ------------ Total Short-Term Notes (Cost $231,765,702) 231,765,702 ============================================================================ U.S. Government Agencies-8.6% - ---------------------------------------------------------------------------- Federal Home Loan Bank: 2.20%, 6/27/02 10,000,000 9,891,833 6.75%, 2/15/02 5,000,000 5,026,659 - ---------------------------------------------------------------------------- Federal Home Loan Mortgage Corp.: 5.50%, 5/15/02 5,000,000 5,059,679 - ---------------------------------------------------------------------------- FNMA Master Credit Facility: 2.03%, 1/2/02 2,000,000 1,999,887 2.42%, 4/1/02 5,000,000 4,969,750 3.39%, 3/1/02 5,000,000 4,972,221 ------------ Total U.S. Government Agencies (Cost $31,920,029) 31,920,029 - ---------------------------------------------------------------------------- Total Investments, at Value (Cost $361,836,707) 97.7% 361,836,707 - ---------------------------------------------------------------------------- Other Assets Net of Liabilities 2.3 8,392,203 ---------- ------------ Net Assets 100.0% $370,228,910 ========== ============
Short-term notes, bankers' acceptances, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown. 1. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $133,180,947, or 35.97% of the Fund's net assets and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. 2. Represents the current interest rate for a variable rate security. 3. Identifies issues considered to be illiquid-See Note 4 of Notes to Financial Statements. See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 7 Statement of Assets and Liabilities December 31, 2001 ============================================================================================ Assets Investments, at value (cost $361,836,707)--see accompanying statement $361,836,707 - -------------------------------------------------------------------------------------------- Cash 139,751 - -------------------------------------------------------------------------------------------- Receivables and other assets: Shares of beneficial interest sold 8,134,937 Interest 418,870 Other 10 ------------ Total assets 370,530,275 ============================================================================================ Liabilities Payables and other liabilities: Dividends 130,330 Shares of beneficial interest redeemed 82,106 Shareholder reports 44,942 Registration and filing fees 26,082 Legal, auditing and other professional fees 9,726 Trustees' compensation 239 Other 7,940 ------------ Total liabilities 301,365 ============================================================================================ Net Assets $370,228,910 ============ ============================================================================================ Composition of Net Assets Par value of shares of beneficial interest $ 370,207 - -------------------------------------------------------------------------------------------- Additional paid-in capital 369,837,196 - -------------------------------------------------------------------------------------------- Accumulated net realized gain (loss) on investment transactions 21,507 ------------ Net assets-applicable to 370,207,424 shares of beneficial interest outstanding $370,228,910 ============ ============================================================================================ Net Asset Value, Redemption Price and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements. 8 Oppenheimer Money Fund/VA Statement of Operations For the Year Ended December 31, 2001 ================================================================= Investment Income Interest $11,835,764 ================================================================= Expenses Management fees 1,294,520 - ----------------------------------------------------------------- Shareholder reports 63,811 - ----------------------------------------------------------------- Registration and filing fees 37,121 - ----------------------------------------------------------------- Custodian fees and expenses 20,167 - ----------------------------------------------------------------- Legal, auditing and other professional fees 14,200 - ----------------------------------------------------------------- Transfer and shareholder servicing agent fees 6,656 - ----------------------------------------------------------------- Trustees'compensation 2,663 - ----------------------------------------------------------------- Other 66,115 ----------- Total expenses 1,505,253 Less reduction to custodian expenses (19,790) ----------- Net expenses 1,485,463 ================================================================= Net Investment Income 10,350,301 ================================================================= Net Realized Gain (Loss) on Investments 35,731 ================================================================= Net Increase in Net Assets Resulting from Operations $10,386,032 ===========
See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 9 Statements of Changes in Net Assets
Year Ended December 31, 2001 2000 =========================================================================================== Operations Net investment income (loss) $ 10,350,301 $ 12,227,808 - ------------------------------------------------------------------------------------------- Net realized gain (loss) 35,731 2,584 ------------ ------------ Net increase (decrease) in net assets resulting from operations 10,386,032 12,230,392 =========================================================================================== Dividends and/or Distributions to Shareholders (10,350,301) (12,227,808) =========================================================================================== Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions 154,422,163 14,702,775 =========================================================================================== Net Assets Total increase 154,457,894 14,705,359 - ------------------------------------------------------------------------------------------- Beginning of period 215,771,016 201,065,657 ------------ ------------ End of period $370,228,910 $215,771,016 ============ ============
See accompanying Notes to Financial Statements. 10 Oppenheimer Money Fund/VA Financial Highlights
Year Ended December 31, 2001 2000 1999 1998 1997 ====================================================================================================== Per Share Operating Data Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 - ------------------------------------------------------------------------------------------------------ Income from investment operations--net investment income and net realized gain .04 .06 .05 .05 .05 Dividends and/or distributions to shareholders (.04) (.06) (.05) (.05) (.05) - ------------------------------------------------------------------------------------------------------ Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 ===== ===== ===== ===== ===== ====================================================================================================== Total Return(1) 3.85% 6.26% 4.96% 5.25% 5.31% ====================================================================================================== Ratios/Supplemental Data Net assets, end of period (in thousands) $370,229 $215,771 $201,066 $151,799 $126,782 - ------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $288,106 $204,586 $166,727 $137,633 $133,707 - ------------------------------------------------------------------------------------------------------ Ratios to average net assets:(2) Net investment income 3.59% 5.98% 4.87% 5.12% 5.19% Expenses 0.52% 0.51% 0.48% 0.50%(3) 0.48%(3)
1. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 2. Annualized for periods of less than one full year. 3. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. Oppenheimer Money Fund/VA 11 Notes To Financial Statements =============================================================================== 1. Significant Accounting Policies Oppenheimer Money Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek maximum current income from investments in "money market" securities consistent with low capital risk and the maintenance of liquidity. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a summary of significant accounting policies consistently followed by the Fund. - ------------------------------------------------------------------------------- Securities Valuation. Portfolio securities are valued on the basis of amortized cost, which approximates market value. - ------------------------------------------------------------------------------- Repurchase Agreements. The Fund requires 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 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. - ------------------------------------------------------------------------------- Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. - ------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. =============================================================================== 2. Shares Of Beneficial Interest The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Year Ended December 31, 2001 Year Ended December 31, 2000 ------------------------------ -------------------------------- Shares Amount Shares Amount - ---------------------------------------------------------------------------------------------------- Sold 1,020,448,982 $1,020,448,982 $ 668,734,451 $ 668,734,451 Dividends and/or distributions reinvested 10,350,301 10,350,301 12,474,728 12,474,728 Redeemed (876,377,120) (876,377,120) (666,506,404) (666,506,404) ------------- -------------- ------------- ------------- Net increase (decrease) 154,422,163 $ 154,422,163 $ 14,702,775 $ 14,702,775 ============= ============== ============= =============
12 Oppenheimer Money Fund/VA Notes To Financial Statements (continued) =============================================================================== 3. Fees And Other Transactions With Affiliates Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust. The annual fees are 0.45% of the first $500 million of average annual net assets, 0.425% of the next $500 million, 0.40% of the next $500 million and 0.375% of average annual net assets in excess of $1.5 billion. The Fund's management fee for the year ended December 31, 2001, was an annualized rate of 0.45%. - ------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS an agreed-upon per-account fee. Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Fund is subject to the minimum fee in the event that the per-account fee does not equal or exceed the applicable minimum fee. OFS has voluntarily agreed to limit transfer and shareholder servicingagent 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. =============================================================================== 4. 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 10% 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 $11,000,000, which represents 2.97% of the Fund's net assets. Oppenheimer Money Fund/VA 13 Independent Auditors' Report =============================================================================== The Board of Trustees and Shareholders of Oppenheimer Money Fund/VA: We have audited the accompanying statement of assets and liabilities of Oppenheimer Money 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 Money 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 14 Oppenheimer Money Fund/VA Federal Income Tax Information (Unaudited) =============================================================================== In early 2002 shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2001. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. Oppenheimer Money Fund/VA 15 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 Barry Weiss, Vice President Carol E. Wolf, 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 Principal Occupation(s) During Past Five of Time Served(2) Years and Other Directorships Held by Trustee - -------------------------------------------------------------------------------------- James C. Swain, Formerly Vice Chairman of OppenheimerFunds, Inc. Chairman, (the "Manager") (September 1988-January 2, 2002); Chief Executive President and a director of Centennial Asset Management Officer and Trustee Corporation, a wholly owned subsidiary of the Manager (since 1985). Age: 68 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 2001). Age: 52 (since June 30,2001) and president since (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 subsidiaries 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.
16 Oppenheimer Money Fund/VA Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length of Principal Occupation(s) During Past Five Years and Time Served(2) Other Directorships Held by Trustee - --------------------------------------------------------------------------------- William L. Armstrong, Chairman of the following private mortgage banking Trustee (since 1999). companies: Cherry Creek Mortgage Company (since Age: 64 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, Formerly (until February 2001) Director and Trustee (since 1993). President of A.G. Edwards Capital, Inc. (General Age: 70 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 Trustee (since 1998). following positions: Senior Vice President (from Age: 65 September 1987) and Treasurer (from March 1985) of the Manager; Vice President (from June 1983) and Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc., a subsidiary of the Manager and the Fund's Distributor; Senior Vice President (since February 1992), Treasurer (since July 1991) Assistant Secretary and a director (since December 1991) of Centennial Asset Management Corporation; Vice President (since October 1989) and Treasurer (since April 1986) of HarbourView Asset Management Corporation; President, Treasurer and a director of Centennial Capital Corporation (since June 1989); Vice President and Treasurer (since August 1978) and Secretary (since April 1981) of Shareholder Services, Inc.; Vice President, Treasurer and Secretary of Shareholder Financial Services, Inc. (since November 1989); Assistant Treasurer of Oppenheimer Acquisition Corp.(since March 1998); Treasurer of Oppenheimer Partnership Holdings, Inc. (since November 1989); Vice President and Treasurer of Oppenheimer Real Asset Management, Inc. (since July 1996); Treasurer of OppenheimerFunds International Ltd. and Oppenheimer Millennium Funds plc (since October 1997). - --------------------------------------------------------------------------------- Edward L. Cameron, Formerly (1974-1999) a partner with Trustee (since 1999). PricewaterhouseCoopers LLP (an accounting firm) and Age: 63 Chairman, Price Waterhouse LLP Global Investment Management Industry Services Group (1994-1998). - --------------------------------------------------------------------------------- Jon S. Fossel, Formerly (until October 1996) Chairman and a Trustee (since 1990). director of the Manager; President and a director of Age: 59 Oppenheimer Acquisition Corp., Shareholder Services, Inc. and Shareholder Financial Services, Inc. - --------------------------------------------------------------------------------- Sam Freedman, Formerly (until October 1994) Chairman and Chief Trustee (since 1996). 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, Formerly Managing Partner of Deloitte, Haskins & Sells Trustee (since 1988). (an accounting firm). Age: 80 - --------------------------------------------------------------------------------- Robert M. Kirchner, President of The Kirchner Company (management Trustee consultants). (since 1985). Age: 80
Oppenheimer Money Fund/VA 17 Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length Principal Occupation(s) During Past Five Years and Other of Time Served(2) Directorships Held by Trustee - ----------------------------------------------------------------------------------- F. William Marshall, Formerly (until 1999) Chairman of SIS & Family Jr., Trustee Bank, F.S.B. (formerly SIS Bank); President, Chief (since 2000). Age: 59 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 Senior Vice President (since April 1998) of the President and Manager; a Certified Financial Analyst; an officer and Portfolio manager of portfolio manager of other Oppenheimer funds; formerly Oppenheimer Main a vice president and portfolio manager for Street(R) Small Cap Guardian Investor Services, the investment management Fund/VA and Main subsidiary of The Guardian Life Insurance Company Street(R) Growth (1972-April 1998). & Income Fund/VA (since 1999). Age: 61 - ----------------------------------------------------------------------------------- Bruce L. Bartlett, Senior Vice President (since January 1999) of the Vice President Manager; an officer and portfolio manager of other Portfolio Manager of Oppenheimer funds;, prior to joining the Manager in Oppenheimer Aggressive April 1995, he was a vice president and senior Growth Fund/VA portfolio manager at First of America Investment (since 1998). Age: 51 Corp. (September 1986-April 1995). - ----------------------------------------------------------------------------------- George Evans, Vice Vice President of the Manager (since October 1993) President and Portfolio and of HarbourView Asset Management Corporation Manager of Oppenheimer (since July 1994); an officer and portfolio manager Multiple Strategies of other Oppenheimer funds. Fund/VA. (since 2001). Age: 42 - ----------------------------------------------------------------------------------- John S. Kowalik, Vice Senior Vice President of the Manager (since July President and Portfolio 1998) and of HarbourView Asset Management Manager of Oppenheimer Corporation (since April 2000); an officer and Bond Fund/VA portfolio manager of other Oppenheimer (since 1998). Age: 44 funds; formerly Managing Director and Senior Portfolio Manager at Prudential Global Advisors (June 1989-June 1998). - ----------------------------------------------------------------------------------- Michael Levine, Vice Vice President (since June 1998) of the Manager; an President and Portfolio officer and portfolio manager of other Oppenheimer Manager of Oppenheimer funds; formerly Assistant Vice President and Multiple Strategies Portfolio Manager of the Manager (April 1996-June Fund/VA(since 1998). 1998); prior to joining the Manager in June Age: 36 1994, he was a portfolio manager and research associate for Amas Securities, Inc. (February 1990-February 1994). - ----------------------------------------------------------------------------------- Nikolaos Monoyios, Vice President of the Manager (since April 1998); an Vice President and officer and portfolio manager of other Oppenheimer Portfolio Manager of funds; a Certified Financial Analyst; formerly a Vice Oppenheimer Main President and portfolio manager for Guardian Street(R) Growth & Investor Services, the investment management Income Fund/VA subsidiary of The Guardian Life Insurance Company (since 1999). Age: 52 (1979-March 1998). - ----------------------------------------------------------------------------------- David P. Negri, Vice Senior Vice President of the Manager (since May President and Portfolio 1998) and of HarbourView Asset, Management Manager of Oppenheimer Corporation (since April 1999); an officer and Bond Fund/VA High portfolio manager of other Oppenheimer Income Fund/VA, Multiple funds; formerly Vice President of the Manager (July Strategies Fund/VA and 1988-May 1998). Strategic Bond Fund/VA (since 1990). Age: 47 - ----------------------------------------------------------------------------------- Jane Putnam, Vice Vice President of the Manager (since October President and Portfolio 1995); an officer and portfolio manager of another Manager of Oppenheimer Oppenheimer fund; before joining the Manager in May Capital Appreciation 1994, she was a portfolio manager and equity Fund/VA (since 1994). research analyst for Chemical Bank (June 1989-May Age: 40 1994) - ----------------------------------------------------------------------------------- Thomas P. Reedy, Vice Vice President of the Manager (since June 1993) and President and Portfolio of HarbourView Asset Management Corporation (Since Manager of Oppenheimer April 1999); an officer and portfolio manager of High Income Fund/VA other Oppenheimer funds. (since 1998). Age: 39 - ----------------------------------------------------------------------------------- Richard H. Rubinstein, Senior Vice President (since October 1995) of the Vice President and Manager; an officer and portfolio manager of another Portfolio Manager of Oppenheimer fund; formerly a vice president of the Oppenheimer Multiple Manager (June 1990-October 1995). Strategies Fund/VA(since 1991). Age: 53
18 Oppenheimer Money Fund/VA Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length Principal Occupation(s) During Past Five Years and of Time Served(2) Other Directorships Held by Trustee - ------------------------------------------------------------------------------------- Arthur P. Steinmetz, Senior Vice President of the Manager (since March Vice President and 1993) and of HarbourView Asset Management Corporation Portfolio Manager of (since March 2000); an officer and portfolio manager of Oppenheimer Strategic other Oppenheimer funds. Bond Fund/VA (since 1993). Age: 43 - ------------------------------------------------------------------------------------- Susan Switzer, Vice Vice President of the Manager (since December President and 2000); Assistant Vice President of the Manager Portfolio Manager of (December 1997-December 2000). Prior to joining the Oppenheimer Multiple Manager, she was a portfolio manager at Neuberger Strategies Fund/VA Berman (November 1994-November 1997). (since 2001). Age: 35 - ------------------------------------------------------------------------------------- James F. Turner, II, VicePresident and Portfolio Manager of the Manager Vice President since March 26,2001; Portfolio Manager for Technology and Portfolio Manager Crossover Ventures (May 2000-March 2001); Assistant of Oppenheimer Vice President and Associate Portfolio Manager of the Aggressive Growth Manager (August 1999-May 2000); Securities Analyst for Fund/VA (since 2001). the Manager (October 1996-August 1999); and a Age: 34 securities analyst with First of America Investment Company (May 1994-October 1996). - ------------------------------------------------------------------------------------- Barry Weiss, Vice VicePresident of the Manager (since July 2001); an President and Portfolio officer and portfolio manager of other Oppenheimer Manager of Oppenheimer funds; formerly Assistant Vice President and Senior Aggressive Money Credit Analyst of the Manager (February 2000-June Fund/VA (since 2001). 2001) Prior to joining the Manager in February 2000, Age: 37 he was Associated 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 Senior Vice President of the Manager (since July President and Portfolio 1994)and ofHarbourView Asset Management Corporation Manager of Oppenheimer (since May 1999); Senior Investment Officer, Director Global Securities of International Equities (since May 2000) of the Fund/VA (since 1995). Manager; an officer and portfolio manager of another Age: 57 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 Senior Vice President of the Manager; an officer and President and portfolio manager of other Oppenheimer funds; Portfolio Manager formerly Vice President of the Manager (June 1990-June of Oppenheimer Money 2000). Fund/VA (since 1998). Age: 50 - ------------------------------------------------------------------------------------- Mark Zavanelli, Vice Assistant Vice President (since May 1998) of the Manager; President and a Chartered Financial Analyst; an officer and portfolio Portfolio Manager of manager of other Oppenheimer funds. Prior to joining the Oppenheimer Main street Manager in May 1998 he was President of Waterside Small Cap Fund/VA Capital Management, a registered investment advisor (since 2001). Age: 31 (August 1995-April 1998) and a financial research analyst for Elder Research (June 1997-April 1998). - ------------------------------------------------------------------------------------- Robert G. Zack, Vice Senior Vice President (since May 1985) and Acting General President and Counsel (since November 2001) of the Manager; Assistant Secretary Secretary of Shareholder Services, Inc. (since May 1985), (since 2001). Share-holder Financial Services, Inc. (since November 1989); Age: 53 OppenheimerFunds International Ltd. and Oppenheimer Millennium Fund plc (since October 1997); an officer of other Oppenheimer funds. Formerly Associate General Counsel (May 1981-November 2001). - ------------------------------------------------------------------------------------- Brian W. Wixted, Senior VicePresident and Treasurer (since March 1999) Treasurer of the Manager; Treasurer (since March 1999) of HarbourView (since 1999). Asset Management Corporation, Shareholder Services, Inc., Age: 42 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, Vice President of the Manager/Mutual Fund Accounting (Since Assistant Treasurer May 1996) an officer of other Oppenheimer funds; formerly an (since 1996). assistant vice president of the Manager/Mutual Fund Age: 43 Accounting (April 1994-May 1996) and a fund controller of the Manager.
Oppenheimer Money Fund/VA 19 Officers and Trustees (Continued)
Name, Address,(1) Age, Position(s) Held with Fund and Length Principal Occupation(s) During Past Five Years and of Time Served(2) Other Directorships Held by Trustee - ------------------------------------------------------------------------------- Scott T. Farrar, Vice President of the Manager/Mutual Fund Accounting Assistant Treasurer (since May 1996); Assistant Treasurer of Oppenheimer (since 1996). Age: 36 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, Vice President and Senior Counsel of the Manager Assistant Secretary (since July 1999); Vice President of OppenheimerFunds (since 2001). Age: 43 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, Vice President and Assistant Counsel of the Manager Assistant Secretary (since June 1998); an officer of other Oppenheimer (since 2001). Age: 36 funds; formerly an assistant vice president and assistant counsel of the Manager (August 1994-August 1997). - ------------------------------------------------------------------------------- Denis R. Molleur, Vice President and Senior Counsel of the Manager Assistant Secretary (since July 1999); an officer of other Oppenheimer (since 2001). Age: 44 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. 20 Oppenheimer Money Fund/VA Oppenheiner Money 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 Money 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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