N-CSRS

Asset Derivatives

Derivatives Not
Accounted for as
Hedging Instruments

Statement of Assets
and Liabilities Location

Equity contracts

Investments, at value

N-CSRS 1 d377340dncsrs.htm N-CSRS N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-4108

Oppenheimer Variable Account Funds

(Exact name of registrant as specified in charter)

6803 South Tucson Way, Centennial, Colorado 80112-3924

(Address of principal executive offices) (Zip code)

Arthur S. Gabinet

OppenheimerFunds, Inc.

Two World Financial Center, New York, New York 10281-1008

(Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: December 31

Date of reporting period: 6/29/2012

Item 1. Reports to Stockholders.

June 30, 2012

Oppenheimer

Small- & Mid-Cap Growth Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

Portfolio Manager: Ronald J. Zibelli, Jr., CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	13.77%
Service Shares	13.61
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	0.30%	–0.46%	4.80%
Service Shares	0.04	–0.73	4.52
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.84%		0.80%
Service Shares	1.09		1.05

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance and expense ratios may be lower or higher than the data quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account. Expense ratios are as stated in the Fund’s prospectus current as of the date of this report. The net expense ratios take into account voluntary fee waivers and/or expense reimbursements, without which performance would have been less. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus.

Sector Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of common stocks.


Top Ten Common Stock Holdings
Ulta Salon, Cosmetics & Fragrance, Inc.		2.2%
Dollar Tree, Inc.		2.2
Alexion Pharmaceuticals, Inc.		2.2
TransDigm Group, Inc.		2.1
Monster Beverage Corp.		1.9
Whole Foods Market, Inc.		1.9
Chipotle Mexican Grill, Inc., Cl. A		1.7
Cerner Corp.		1.7
Equinix, Inc.		1.6
Teradata Corp.		1.6

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month period ended June 29, 2012, the Fund’s Non-Service shares returned 13.77%. In comparison, the Fund outperformed the Russell 2500 Growth Index (the “Index”), which returned 8.44%. The Fund’s outperformance was led by stock selection in the information technology, consumer discretionary and consumer staples sectors. The Fund underperformed the Index in industrials and enjoyed outperformance or roughly equal performance against the Index’s other nine sectors. The Fund also outperformed the Russell 2000 Growth Index and the Russell MidCap Growth Index, which returned 8.81% and 8.10%, respectively.¹

Economic and Market Environment

The period began during a time of improved market sentiment in which the United States managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets over the first three months of 2012. The rebound across equities gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (“LTRO”) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

However, the second quarter was a volatile time for global markets. The fear of contagion from the worsening European sovereign debt crisis and a recession across much of Europe drove negative market sentiment, particularly over May and June. Very high unemployment, soaring debt and higher borrowing costs in Greece, Spain and Italy contributed to serious questions over how to implement austerity measures and restructure debt or instead take a different tact and provide some or all of those countries with additional funds. Perhaps most worrisome of all to investors was the possibility of Greece pulling out of the euro and its ramifications for the future of the Eurozone and its common currency. In the U.S., slower than expected first quarter growth also contributed to a sell-off in the U.S. stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. However, the period ended on a positive note for the markets. The results of elections in Greece and continued efforts by European policymakers to stabilize the situation in the region appeared to soothe market jitters slightly in the final days of the period.

Fund Review

During the period, the top performing stocks for the Fund were Monster Beverage Corp., SXC Health Solutions Corp. and Alexion Pharmaceuticals, Inc. Monster Beverage, previously known as Hansen Natural Corp., is a producer of energy beverages. The company benefited from strong growth in its core products, as well as a successful roll-out of new products. First quarter financial results featured 28% revenue growth and 41% earnings growth. SXC Health Solutions is a pharmacy benefit manager that reported strong quarterly results during the period. In April, SXC also announced the acquisition of competitor Catalyst Healthcare for $4.4 billion, which led to additional outperformance. The Fund also owned shares of Catalyst Healthcare. Alexion is a global biopharmaceutical company that focuses on developing drugs for ultra-rare diseases. The company’s lead drug Soliris treats patients with rare, life-threatening blood disorders. In addition to growing quickly in its original indication, Soliris was recently approved for patients in a second indication that significantly increases its potential market opportunity.

The two largest underperformers were Nuance Communications, Inc. and Oil States International, Inc. Nuance Communications is a provider of voice and language solutions for businesses and consumers globally. The company’s stock experienced declines this period and we exited our position by period end. Oil States International provides specialty products and services to oil and gas drilling companies. Low gas prices and declining oil prices at the end of the period hampered the company’s stock in May and June. Detractors from performance also included four industrial stocks, which were adversely affected by slowing economic growth and fears of a global recession.

1. June 29, 2012, was the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes to Financial Statements. Index returns are calculated through June 30, 2012. December 30, 2011 was the last business day of the Fund’s 2011 fiscal year.

3	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

FUND PERFORMANCE DISCUSSION

Outlook

The macroeconomic environment is characterized by modest economic growth, very low interest rates and decelerating profit growth. We believe that this is an environment that favors growth companies and are optimistic regarding the Fund’s investment strategy. We seek dynamic companies with above-average and sustainable revenue and earnings growth that we believe are positioned to outperform. This includes leading firms in structurally attractive industries with committed management teams that have proven records of performance.

Investors should consider the Fund’s investment objective, risks, and charges and expenses carefully before investing. The Fund’s prospectus and summary prospectus contain this and other information about the Fund, and may be obtained by asking your financial advisor or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

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.

4	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

FUND EXPENSE

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any charges associated with the separate accounts that offer this Fund. Therefore, the “hypothetical” lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges were included your costs would have been higher.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service shares	$	1,000.00	$	1,137.70	$	4.24
Service shares		1,000.00		1,136.10		5.56

Hypothetical (5% return before expenses)
Non-Service shares		1,000.00		1,020.77		4.01
Service shares		1,000.00		1,019.53		5.26

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 29, 2012 are as follows:


Class	Expense Ratios
Non-Service shares		0.80	%
Service shares		1.05

The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” tables in the Fund’s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

5	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* Unaudited


	Shares		Value


Common Stocks—98.3%
Consumer Discretionary—20.0%
Hotels, Restaurants & Leisure—5.3%
Bally Technologies, Inc.¹		132,370	$	6,176,384
Chipotle Mexican Grill, Inc., Cl. A¹		27,741		10,540,193
Dunkin’ Brands Group, Inc.		140,030		4,808,630
Panera Bread Co., Cl. A¹		57,660		8,040,110
Tim Hortons, Inc.		56,560		2,977,318

				32,542,635
Household Durables—0.6%
Lennar Corp., Cl. A		104,540		3,231,331
Internet & Catalog Retail—0.5%
TripAdvisor, Inc.¹		68,210		3,048,305
Multiline Retail—2.9%
Dollar Tree, Inc.¹		245,590		13,212,742
Nordstrom, Inc.		90,190		4,481,541

				17,694,283
Specialty Retail—7.9%
Genesco, Inc.¹		44,010		2,647,202
GNC Holdings, Inc., Cl. A		62,480		2,449,216
O’Reilly Automotive, Inc.¹		61,930		5,187,876
PetSmart, Inc.		108,750		7,414,575
Sally Beauty Holdings, Inc.¹		296,220		7,624,703
Tractor Supply Co.		115,290		9,575,987
Ulta Salon, Cosmetics & Fragrance, Inc.		143,490		13,399,096

				48,298,655
Textiles, Apparel & Luxury Goods—2.8%
lululemon athletica, Inc.¹		73,180		4,363,723
Michael Kors Holdings Ltd.¹		156,950		6,566,788
Under Armour, Inc., Cl. A1		65,650		6,202,612

				17,133,123
Consumer Staples—5.9%
Beverages—1.9%
Monster Beverage Corp.¹		161,690		11,512,328
Food & Staples Retailing—2.9%
Fresh Market, Inc. (The)¹		112,880		6,053,754
Whole Foods Market, Inc.		119,990		11,437,447

				17,491,201
Personal Products—1.1%
Estee Lauder Cos., Inc. (The), Cl. A		130,860		7,082,143
Energy—5.9%
Energy Equipment & Services—3.5%
Atwood Oceanics, Inc.¹		122,510		4,635,778
Core Laboratories NV		41,640		4,826,076
Oceaneering International, Inc.		115,310		5,518,737


	Shares		Value

Energy Equipment & Services Continued
Oil States International, Inc.¹		99,440	$	6,582,928

				21,563,519
Oil, Gas & Consumable Fuels—2.4%
Cabot Oil & Gas Corp., Cl. A		91,220		3,594,068
Concho Resources, Inc.¹		100,430		8,548,602
Laredo Petroleum Holdings, Inc.¹		120,960		2,515,968

				14,658,638
Financials—6.2%
Capital Markets—1.5%
Affiliated Managers Group, Inc.¹		50,160		5,490,012
LPL Financial Holdings, Inc.		106,840		3,607,987

				9,097,999
Commercial Banks—1.7%
First Republic Bank¹		99,560		3,345,216
Signature Bank¹		75,060		4,576,408
SVB Financial Group¹		47,940		2,815,037

				10,736,661
Insurance—2.2%
Arthur J. Gallagher & Co.		171,690		6,021,168
ProAssurance Corp.		83,240		7,415,852

				13,437,020
Real Estate Investment Trusts—0.8%
Digital Realty Trust, Inc.		63,640		4,777,455
Health Care—16.4%
Biotechnology—3.5%
Alexion Pharmaceuticals, Inc.¹		132,510		13,158,243
Incyte Corp.¹		132,670		3,011,609
Medivation, Inc.¹		34,400		3,144,160
Onyx Pharmaceuticals, Inc.¹		33,980		2,257,971

				21,571,983
Health Care Equipment & Supplies—3.8%
Cooper Cos., Inc. (The)		92,760		7,398,538
Edwards Lifesciences Corp.¹		57,420		5,931,486
IDEXX Laboratories, Inc.¹		56,020		5,385,203
Sirona Dental Systems, Inc.¹		98,340		4,426,283

				23,141,510
Health Care Providers & Services—3.0%
Catalyst Health Solutions, Inc.¹		89,900		8,400,256
DaVita, Inc.¹		36,180		3,553,238
HMS Holdings Corp.¹		179,370		5,974,815

				17,928,309

6	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA


	Shares		Value

Health Care Technology—2.9%
Cerner Corp.¹		123,760	$	10,230,002
SXC Health Solutions Corp.¹		74,950		7,435,790

				17,665,792
Pharmaceuticals—3.2%
Perrigo Co.		61,520		7,255,054
Salix Pharmaceuticals Ltd.¹		117,750		6,410,310
Watson Pharmaceuticals, Inc.¹		79,960		5,916,240

				19,581,604
Industrials—14.9%
Aerospace & Defense—4.6%
B/E Aerospace, Inc.¹		175,500		7,662,330
Hexcel Corp.¹		288,330		7,436,031
TransDigm Group, Inc.¹		94,160		12,645,688

				27,744,049
Building Products—0.5%
Fortune Brands Home & Security, Inc.¹		134,380		2,992,643
Commercial Services & Supplies—1.3%
Clean Harbors, Inc.¹		68,710		3,876,618
Stericycle, Inc.¹		45,320		4,154,484

				8,031,102
Electrical Equipment—3.0%
AMETEK, Inc.		180,095		8,988,541
Polypore International, Inc.¹		75,880		3,064,793
Roper Industries, Inc.		64,530		6,361,367

				18,414,701
Machinery—2.2%
Timken Co.		115,400		5,284,166
Wabtec Corp.		102,770		8,017,088

				13,301,254
Professional Services—0.8%
IHS, Inc., Cl. A¹		45,810		4,935,111
Road & Rail—1.3%
Kansas City Southern, Inc.		112,950		7,856,802
Trading Companies & Distributors—1.2%
Fastenal Co.		63,610		2,564,119
United Rentals, Inc.¹		144,450		4,917,078

				7,481,197
Information Technology—22.8%
Communications Equipment—0.8%
F5 Networks, Inc.¹		47,380		4,717,153
Internet Software & Services—5.5%
Akamai Technologies, Inc.¹		127,570		4,050,348
Equinix, Inc.¹		56,080		9,850,452
IAC/InterActiveCorp		96,550		4,402,680


	Shares		Value

Internet Software & Services Continued
LinkedIn Corp., Cl. A¹		65,470	$	6,957,497
Mercadolibre, Inc.		34,840		2,640,872
Rackspace Hosting, Inc.¹		126,930		5,577,304

				33,479,153
IT Services—3.1%
Alliance Data Systems Corp.¹		37,570		5,071,950
Teradata Corp.¹		135,780		9,777,518
Vantiv, Inc., Cl. A¹		173,360		4,037,554

				18,887,022
Semiconductors & Semiconductor Equipment—2.8%
Avago Technologies Ltd.		132,640		4,761,776
Mellanox Technologies Ltd.¹		51,640		3,658,178
Skyworks Solutions, Inc.¹		202,030		5,529,561
Teradyne, Inc.¹		223,040		3,135,942

				17,085,457
Software—10.6%
Ariba, Inc.¹		136,840		6,124,958
Citrix Systems, Inc.¹		93,560		7,853,426
Commvault Systems, Inc.¹		68,670		3,403,972
Concur Technologies, Inc.¹		128,248		8,733,689
Fortinet, Inc.¹		289,170		6,714,527
MICROS Systems, Inc.¹		61,530		3,150,336
NetSuite, Inc.¹		100,252		5,490,802
Red Hat, Inc.¹		130,150		7,350,872
ServiceNow, Inc.¹		124,922		3,073,081
Solarwinds, Inc.¹		132,120		5,755,147
TIBCO Software, Inc.¹		246,930		7,388,146

				65,038,956
Materials—4.5%
Chemicals—3.9%
Airgas, Inc.		76,190		6,400,722
Albemarle Corp.		58,140		3,467,470
CF Industries Holdings, Inc.		34,140		6,614,284
Cytec Industries, Inc.		25,030		1,467,759
Sigma-Aldrich Corp.		43,990		3,252,181
Westlake Chemical Corp.		48,680		2,544,017

				23,746,433
Containers & Packaging—0.6%
Ball Corp.		98,130		4,028,237
Telecommunication Services—1.2%
Wireless Telecommunication Services—1.2%
SBA Communications Corp.¹		129,300		7,376,565

7	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Shares		Value

Utilities—0.5%
Electric Utilities—0.5%
ITC Holdings Corp.		44,910	$	3,094,748

Total Common Stocks (Cost $416,677,490)				600,405,077


	Shares			Value

Investment Company—2.2%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^2,3
(Cost $13,045,599)		13,045,599		$	13,045,599
Total Investments, at Value (Cost $429,723,089)		100.5	%		613,450,676
Liabilities in Excess of Other Assets		(0.5	)		(2,788,924	)
Net Assets		100.0	%	$	610,661,752

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of accompanying Notes.

1. Non-income producing security.

2. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 29, 2012, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		14,138,260		104,025,768		105,118,429		13,045,599

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$13,045,599		$6,095

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

See accompanying Notes to Financial Statements.

8	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $416,677,490)	$	600,405,077
Affiliated companies (cost $13,045,599)		13,045,599
		613,450,676
Cash		7,432
Receivables and other assets:
Investments sold		1,950,181
Shares of beneficial interest sold		332,145
Dividends		134,892
Other		32,873
Total assets		615,908,199
Liabilities
Payables and other liabilities:
Investments purchased		4,895,830
Shares of beneficial interest redeemed		224,954
Transfer and shareholder servicing agent fees		48,903
Shareholder communications		32,742
Trustees’ compensation		25,397
Distribution and service plan fees		6,863
Other		11,758
Total liabilities		5,246,447
Net Assets	$	610,661,752
Composition of Net Assets
Par value of shares of beneficial interest	$	11,426
Additional paid-in capital		633,238,478
Accumulated net investment loss		(1,093,327	)
Accumulated net realized loss on investments		(205,222,412	)
Net unrealized appreciation on investments		183,727,587
Net Assets	$	610,661,752
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $573,126,023 and 10,705,631 shares of beneficial interest outstanding)		$53.54
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $37,535,729 and 720,723 shares of beneficial interest outstanding)		$52.08

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes

See accompanying Notes to Financial Statements.

9	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $7,620)	$	1,446,175
Affiliated companies		6,095
Interest		256
Total investment income		1,452,526
Expenses
Management fees		2,220,457
Distribution and service plan fees—Service shares		47,244
Transfer and shareholder servicing agent fees:
Non-Service shares		290,456
Service shares		18,897
Shareholder communications:
Non-Service shares		8,057
Service shares		526
Trustees’ compensation		17,171
Custodian fees and expenses		1,686
Administration service fees		750
Other		28,069
Total expenses		2,633,313
Less waivers and reimbursements of expenses		(110,514	)
Net expenses		2,522,799
Net Investment Loss		(1,070,273	)
Realized and Unrealized Gain
Net realized gain on investments from unaffiliated companies		20,134,093
Net change in unrealized appreciation/depreciation on investments		60,123,428

Net Increase in Net Assets Resulting from Operations	$	79,187,248

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment loss	$	(1,070,273	)	$	(3,504,153	)
Net realized gain		20,134,093			77,531,562
Net change in unrealized appreciation/depreciation		60,123,428			(62,965,525	)
Net increase in net assets resulting from operations		79,187,248			11,061,884
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(44,277,733	)		(80,390,137	)
Service shares		(3,040,340	)		3,579,422
		(47,318,073	)		(76,810,715	)
Net Assets
Total increase (decrease)		31,869,175			(65,748,831	)
Beginning of period		578,792,577			644,541,408
End of period (including accumulated net investment loss of $1,093,327 and $23,054, respectively)	$	610,661,752		$	578,792,577

1. June 29, 2012 and December 30, 2011 represents the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

11	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$47.06			$46.55			$36.52			$27.54			$54.07			$50.85
Income (loss) from investment operations:
Net investment loss²		(.09	)		(.26	)		(.11	)		(.05	)		(.13	)		(.02	)
Net realized and unrealized gain (loss)		6.57			.77			10.14			9.03			(26.40	)		3.24
Total from investment operations		6.48			.51			10.03			8.98			(26.53	)		3.22
Net asset value, end of period		$53.54			$47.06			$46.55			$36.52			$27.54			$54.07
Total Return, at Net Asset Value³	13.77%			1.09%			27.46%			32.61%			(49.07)%			6.33%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$573,126			$543,020			$611,872			$547,683			$461,684			$1,002,442
Average net assets (in thousands)		$584,275			$605,083			$548,739			$478,968			$754,170			$1,045,592
Ratios to average net assets:⁴
Net investment loss		(0.33	)%		(0.53	)%		(0.29	)%		(0.17	)%		(0.30	)%		(0.04	)%
Total expenses⁵		0.84	%		0.84	%		0.85	%		0.86	%		0.71	%		0.69	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80	%		0.80	%		0.76	%		0.71	%		0.68	%		0.69	%
Portfolio turnover rate		34	%		91	%		95	%		102	%		78	%		112	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.84	%
Year Ended December 30, 2011	0.84	%
Year Ended December 31, 2010	0.85	%
Year Ended December 31, 2009	0.86	%
Year Ended December 31, 2008	0.71	%
Year Ended December 31, 2007	0.69	%

See accompanying Notes to Financial Statements.

12	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$45.84			$45.46			$35.75			$27.03			$53.22			$50.19
Income (loss) from investment operations:
Net investment loss²		(.15	)		(.37	)		(.20	)		(.13	)		(.24	)		(.17	)
Net realized and unrealized gain (loss)		6.39			.75			9.91			8.85			(25.95	)		3.20
Total from investment operations		6.24			.38			9.71			8.72			(26.19	)		3.03
Net asset value, end of period		$52.08			$45.84			$45.46			$35.75			$27.03			$53.22
Total Return, at Net Asset Value³	13.61%			0.83%			27.16%			32.26%			(49.21)%			6.04%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$37,536			$35,773			$32,669			$26,098			$21,952			$47,270
Average net assets (in thousands)		$38,013			$37,775			$27,552			$22,605			$35,815			$49,421
Ratios to average net assets:⁴
Net investment loss		(0.58	)%		(0.78	)%		(0.53	)%		(0.44	)%		(0.57	)%		(0.31	)%
Total expenses⁵		1.09	%		1.09	%		1.10	%		1.12	%		0.98	%		0.96	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05	%		1.05	%		1.01	%		0.97	%		0.95	%		0.96	%
Portfolio turnover rate		34	%		91	%		95	%		102	%		78	%		112	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.09	%
Year Ended December 30, 2011	1.09	%
Year Ended December 31, 2010	1.10	%
Year Ended December 31, 2009	1.12	%
Year Ended December 31, 2008	0.98	%
Year Ended December 31, 2007	0.96	%

See accompanying Notes to Financial Statements.

13	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Small- & Mid-Cap Growth Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek capital appreciation by investing in “growth type” companies. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class.

The following is a summary of significant accounting policies consistently followed by the Fund.

Semiannual and Annual Periods. The last day of the Fund’s semiannual period was the last day the New York Stock Exchange was open for trading. The Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.

The last day of the Fund’s fiscal year was the last day the New York Stock Exchange was open for trading. The Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.

Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund (“IMMF”) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. When applicable, the Fund’s investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMF’s Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.

During the fiscal year ended December 30, 2011, the Fund utilized $83,964,525 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $7,541,352. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no

14	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2017	$	217,070,467
No expiration		7,541,352

Total	$	224,611,819

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $204,477,726 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $20,134,093 of capital loss carryforward to offset realized capital gains.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of June 29, 2012 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.


Federal tax cost of securities	$	430,737,442

Gross unrealized appreciation	$	190,468,585
Gross unrealized depreciation		(7,755,351)

Net unrealized appreciation	$	182,713,234

Trustees’ Compensation. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

15	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2. Securities Valuation

The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a “fair valuation” for any security for which market quotations are not “readily available.” The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

16	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

not, at the current day’s closing bid price. A security of a foreign issuer traded on a foreign exchange but not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Fund’s assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.

Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

If a market value or price cannot be determined for a security using the methodologies described above, or if, in the “good faith” opinion of the Manager, the market value or price obtained does not constitute a “readily available market quotation,” or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

17	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 2—inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	121,948,332	$	—	$	—	$	121,948,332
Consumer Staples		36,085,672		—		—		36,085,672
Energy		36,222,157		—		—		36,222,157
Financials		38,049,135		—		—		38,049,135
Health Care		99,889,198		—		—		99,889,198
Industrials		90,756,859		—		—		90,756,859
Information Technology		139,207,741		—		—		139,207,741
Materials		27,774,670		—		—		27,774,670
Telecommunication Services		7,376,565		—		—		7,376,565
Utilities		3,094,748		—		—		3,094,748
Investment Company		13,045,599		—		—		13,045,599

Total Assets	$	613,450,676	$	—	$	—	$	613,450,676

18	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		182,639			$ 9,500,273			665,252			$ 32,309,437
Redeemed		(1,016,411	)		(53,778,006	)		(2,270,275	)		(112,699,574	)

Net decrease		(833,772	)		$(44,277,733	)		(1,605,023	)		$(80,390,137	)


Service Shares
Sold		61,579			$ 3,111,290			366,560			$ 18,018,685
Redeemed		(121,296	)		(6,151,630	)		(304,822	)		(14,439,263	)

Net increase (decrease)		(59,717	)		$ (3,040,340	)		61,738			$ 3,579,422

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	206,968,316	$	253,865,991

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Next $700 million	0.60
Over $1.5 billion	0.58

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. For the six months ended June 29, 2012, the Fund paid $310,680 to OFS for services to the Fund.

19	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

5. Fees and Other Transactions with Affiliates Continued

Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $101,199 and $6,581 for Non-Service and Service shares, respectively.

The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $2,734 for IMMF management fees.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Pending Litigation

Since 2009, a number of class action, derivative and individual lawsuits have been pending in federal and state courts against OppenheimerFunds, Inc., the Fund’s investment advisor (the “Manager”), OppenheimerFunds Distributor, Inc., the Fund’s principal underwriter and distributor (the “Distributor”), and certain funds (but not including the Fund) advised by the Manager and distributed by the Distributor (the “Defendant Funds”). Several of these lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal securities laws and various states’ securities, consumer protection and common law and allege, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses.

Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against the Manager and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the “Ponzi” scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (“BLMIS”). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

20	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark IV Funding Limited (“AAArdvark IV”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of contract against the defendants and seek compensatory damages, costs and disbursements, including attorney fees. On July 15, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark Funding Limited (“AAArdvark I”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.

The Manager believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer mutual funds.

21	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Small- & Mid-Cap Growth Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

10,738,046

994,639

734,165

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

10,848,738

999,379

618,734

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

10,634,507

1,018,768

813,576

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

10,754,568

1,023,804

688,479

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

10,766,185

1,023,074

677,591

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

10,679,775

1,039,043

748,033

N/A

22	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

10,726,511

1,002,845

737,495

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

10,757,607

1,020,891

688,353

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

10,494,590

1,087,623

884,638

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

10,733,510

1,012,791

720,549

N/A

Proposal 3: To approve an Agreement and Plan of Reorganization that provides for the reorganization of a Fund from a Maryland corporation or Massachusetts business trust, as applicable, into a Delaware statutory trust.

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

23	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at www.sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

24	OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA

OPPENHEIMER SMALL- & MID-CAP GROWTH FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F .Glavin, Jr., Trustee, President and Principal Executive Officer Ronald J. Zibelli, Jr., Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

Before investing, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Balanced Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER BALANCED FUND/VA

Portfolio Managers: Mitch Williams, CFA,¹ Krishna Memani and Peter A. Strzalkowski, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12²
Non-Service Shares	4.53%
Service Shares	4.40
Average Annual Total Returns For the Periods Ended 6/29/12²

	1-Year	5-Year	10-Year
Non-Service Shares	0.96%	–4.30%	2.67%
Service Shares	0.62	–4.55	2.41
Expense Ratios For the Fiscal Year Ended 12/30/11²

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.93%		0.69%
Service Shares	1.18		0.94

1. Became a portfolio manager November 2011.

Portfolio Allocation

LOGO

* Represents a value of less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of investments.


Top Ten Common Stock Holdings
Chevron Corp.		3.2%
Humana, Inc.		2.3
Coca-Cola Co. (The)		2.3
Honeywell International, Inc.		2.1
Merck & Co., Inc.		2.1
Wells Fargo & Co.		2.0
Target Corp.		2.0
Exxon Mobil Corp.		1.9
UnitedHealth Group, Inc.		1.8
Goldman Sachs Group, Inc. (The)		1.8

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER BALANCED FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month reporting period, the Fund’s Non-Service shares produced a return of 4.53%. In comparison, the Russell 1000 Value Index returned 8.68% and the Barclays Capital U.S. Aggregate Bond Index returned 2.37%.² Measured separately, the Fund’s equity component underperformed the Russell 1000 Value Index and its fixed-income component outperformed the Barclays Capital U.S. Aggregate Bond Index.

Economic and Market Environment

The period began during a time of improved market sentiment in which the United States managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets and historically riskier asset classes over the first three months of 2012. The rebound across risk markets gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (“LTRO”) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

In the U.S., slower than expected first quarter growth also contributed to a sell-off in the U.S. stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. Bond markets were not immune to the market volatility, posting modest returns across most sectors. The period ended on a positive note for the markets. The results of elections in Greece and continued efforts by European policymakers to stabilize the situation in the region appeared to soothe market jitters slightly in the final days of the period.

Fund Review

The fixed-income component’s positive performance was driven by its exposure to spread products—credit, mortgage-backed obligations, non-prime asset-backed securities (ABS)—at the expense of government debt. The Fund’s investments in mortgage-backed obligations included residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities, both of which benefited results. Despite bouts of risk aversion, mortgage-backed obligations generally produced positive results as housing in the U.S. began to stabilize. The Fund’s exposure to RMBS included securities guaranteed by government-sponsored enterprises, commonly referred to as agency RMBS, as well as a smaller allocation to RMBS originated by private entities, also known as non-agency RMBS. The fixed-income component also received positive results from its exposure to high yield and investment grade debt.

The Fund’s equity component outperformed in the consumer staples sector as a result of superior stock selection. Four out of the top five performing stocks were in the financials sector: Wells Fargo & Co., JPMorgan Chase & Co., U.S. Bancorp and MetLife, Inc. Following another round of bank stress tests by the Federal Reserve in March 2012, stocks of banks, including Wells Fargo, JPMorgan Chase and U.S. Bancorp, rallied. We exited our position in JPMorgan by period end. The stock of insurance company MetLife performed positively early in the period, and we exited our position over the first quarter, locking in gains. Also contributing to performance was consumer discretionary stock Comcast Corp. The cable provider’s high-speed Internet subscriptions increased during the period, which contributed to a positive earnings surprise. Additionally, Comcast aggressively repurchased shares and increased its dividend by over forty percent.

2. June 29, 2012, was the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes to Financial Statements. Index returns are calculated through June 30, 2012. December 30, 2011 was the last business day of the Fund’s 2011 fiscal year.

3	OPPENHEIMER BALANCED FUND/VA

FUND PERFORMANCE DISCUSSION

The Fund’s equity component underperformed the Russell 1000 Value Index primarily in the industrials and information technology sectors. The most significant detractors from the equity component’s performance were Juniper Networks, Inc., Navistar International Corp. and GenOn Energy, Inc. Networking company Juniper experienced declines over the second quarter of 2012, announcing a decrease in revenue. Navistar, a manufacturer of commercial and military trucks, was negatively impacted by higher costs. It also has lost share in the Heavy Duty Class 8 truck market as the company struggled to develop an engine that meets new emissions rules. GenOn Energy is one of the largest generators of wholesale electricity in the United States. Shares of GenOn were hampered by declining natural gas prices, which hit 10-year lows during the period. We continue to believe that GenOn will benefit from its healthy balance sheet and the potential for higher power prices stemming from EPA regulations that may essentially force the closure of several competing power plants. Also hurting performance were Humana, Inc. and Cisco Systems, Inc. Humana, Inc. detracted from results as the managed health care company reported a decrease in profit in its first quarter, breaking a streak of four straight profit increases. Networking company Cisco declined after releasing earnings guidance below analysts’ expectations.

Outlook

Given the recent spate of weaker economic news globally and the ongoing crisis in Europe, we are cognizant that headwinds exist for risk-based assets. While a softening in the Chinese economy is evident, we do not believe that it heralds a hard landing. Indeed, policy makers in Beijing have taken steps to ease liquidity in the Middle Kingdom while attempting to take some of the froth out of the property sector. Despite fresh pronouncements from the EU Summit in late June, it is premature to sound the all-clear on peripheral Europe and important details remain unsettled much to the chagrin of debt markets near the epicenter and abroad. We do not expect these concerns to abate quickly and acknowledge the risk they present for seemingly unrelated asset classes.

The upcoming congressional and presidential elections in the U.S. may provide some volatility, especially given the contentious debate over entitlements, taxes, and the deficit. Markets seemed to welcome Operation Twist, and we believe that the Fed will respond to any downdraft in domestic economic activity with additional measures such as additional quantitative easing or outright buying of U.S. mortgages in order to keep the modest revival of the economy on track.

Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER BALANCED FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,045.30	$	3.39
Service Shares		1,000.00		1,044.00		4.66

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,021.41		3.35
Service Shares		1,000.00		1,020.18		4.61


Class	Expense Ratios
Non-Service Shares		0.67	%
Service Shares		0.92

5	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Shares		Value

Common Stocks—59.1%
Consumer Discretionary—5.8%
Automobiles—0.8%
Ford Motor Co.		254,690	$	2,442,477
Household Durables—1.4%
Mohawk Industries, Inc.¹		58,500		4,085,055
Media—1.6%
Comcast Corp., Cl. A		127,060		4,062,108
Viacom, Inc., Cl. B		18,130		852,473

				4,914,581
Multiline Retail—2.0%
Target Corp.		99,030		5,762,556
Consumer Staples—4.9%
Beverages—4.1%
Coca-Cola Co. (The)		85,750		6,704,793
Molson Coors Brewing Co., Cl. B, Non-Vtg.		90,690		3,773,611
PepsiCo, Inc.		25,500		1,801,830

				12,280,234
Household Products—0.8%
Church & Dwight Co., Inc.		41,040		2,276,489
Energy—7.0%
Energy Equipment & Services—0.9%
Baker Hughes, Inc.		66,680		2,740,548
Oil, Gas & Consumable Fuels—6.1%
Apache Corp.		17,910		1,574,110
Chevron Corp.		89,870		9,481,285
Exxon Mobil Corp.		64,730		5,538,946
Valero Energy Corp.		53,150		1,283,573

				17,877,914
Financials—13.3%
Capital Markets—3.1%
BlackRock, Inc.		23,240		3,946,617
Goldman Sachs Group, Inc. (The)		54,740		5,247,376

				9,193,993
Commercial Banks—5.9%
M&T Bank Corp.		47,870		3,952,626
PNC Financial Services Group, Inc.		42,610		2,603,897
SunTrust Banks, Inc.		134,570		3,260,631
U.S. Bancorp		56,830		1,827,653
Wells Fargo & Co.		173,060		5,787,126

				17,431,933
Diversified Financial Services—1.5%
Citigroup, Inc.		162,130		4,443,983
Insurance—2.8%
ACE Ltd.		59,410		4,404,063


	Shares		Value

Insurance Continued
Marsh & McLennan Cos., Inc.		49,970	$	1,610,533
Travelers Cos., Inc. (The)		32,790		2,093,314

				8,107,910
Health Care—9.2%
Health Care Equipment & Supplies—0.8%
Baxter International, Inc.		45,590		2,423,109
Health Care Providers & Services—4.1%
Humana, Inc.		87,140		6,748,122
UnitedHealth Group, Inc.		90,890		5,317,065

				12,065,187
Pharmaceuticals—4.3%
Merck & Co., Inc.		146,030		6,096,753
Pfizer, Inc.		168,460		3,874,580
Teva Pharmaceutical Industries Ltd., Sponsored ADR		67,750		2,672,060

				12,643,393
Industrials—5.7%
Aerospace & Defense—2.1%
Honeywell International, Inc.		110,200		6,153,568
Airlines—0.3%
United Continental Holdings, Inc.¹		35,660		867,608
Construction & Engineering—0.6%
Quanta Services, Inc.¹		77,940		1,876,016
Industrial Conglomerates—1.2%
Tyco International Ltd.		67,920		3,589,572
Machinery—0.5%
Navistar International Corp.¹		47,140		1,337,362
Trading Companies & Distributors—1.0%
AerCap Holdings NV¹		256,730		2,895,914
Information Technology—5.3%
Communications Equipment—2.7%
Cisco Systems, Inc.		190,360		3,268,481
Juniper Networks, Inc.¹		299,530		4,885,334

				8,153,815
Electronic Equipment & Instruments—1.2%
TE Connectivity Ltd.		109,740		3,501,803
Semiconductors & Semiconductor Equipment—1.4%
Analog Devices, Inc.		49,420		1,861,651
Xilinx, Inc.		66,570		2,234,755

				4,096,406
Materials—2.4%
Chemicals—1.5%
Celanese Corp., Series A		23,950		829,149
Mosaic Co. (The)		67,200		3,679,872

				4,509,021

6	OPPENHEIMER BALANCED FUND/VA


	Shares		Value

Containers & Packaging—0.9%
Rock-Tenn Co., Cl. A		47,340	$	2,582,397
Telecommunication Services—1.7%
Diversified Telecommunication Services—1.7%
AT&T, Inc.		74,880		2,670,221
Orbcomm, Inc.¹		375		1,223
Verizon Communications, Inc.		50,790		2,257,108

				4,928,552
Utilities—3.8%
Electric Utilities—2.2%
American Electric Power Co., Inc.		54,240		2,164,153
Edison International, Inc.		95,630		4,418,106

				6,582,259
Energy Traders—0.7%
GenOn Energy, Inc.¹		1,120,620		1,916,260
Multi-Utilities—0.9%
NiSource, Inc.		41,040		1,015,740
Public Service Enterprise Group, Inc.		49,800		1,618,500

				2,634,240
Total Common Stocks (Cost $167,453,428)				174,314,155

	Principal Amount
Asset-Backed Securities—4.1%
AESOP Funding II LLC, Automobile Receivables Nts., Series 2011-1A, Cl. A, 1.85%, 11/20/13²	$	185,000		186,260
Ally Master Owner Trust, Asset-Backed Nts., Series 2012-2, Cl. A, 0.742%, 3/15/16³		350,000		350,453
Ally Master Owner Trust, Automobile Receivables Nts., Series 2011-4, Cl. A2, 1.54%, 9/15/16		460,000		464,690
American Credit Acceptance Receivables Trust 2012-1, Automobile Receivables Nts., Series 2012-1, Cl. A1, 1.96%, 1/5/14²		107,041		107,049
AmeriCredit Automobile Receivables Trust 2009-1, Automobile Receivables-Backed Nts., Series 2009-1, Cl. A3, 3.04%, 10/15/13		12,745		12,761
AmeriCredit Automobile Receivables Trust 2010-1, Automobile Receivables-Backed Nts., Series 2010-1, Cl. D, 6.65%, 7/17/17		210,000		226,886
AmeriCredit Automobile Receivables Trust 2010-2, Automobile Receivables-Backed Nts.: Series 2010-2, Cl. C, 4.52%, 10/8/15		290,000		302,769
Series 2010-2, Cl. D, 6.24%, 6/8/16		40,000		43,266


	Principal Amount		Value

Asset-Backed Securities Continued
AmeriCredit Automobile Receivables Trust 2011-1, Automobile Receivables-Backed Nts., Series 2011-1, Cl. D, 4.26%, 2/8/17	$	90,000	$	95,581
AmeriCredit Automobile Receivables Trust 2011-2, Automobile Receivables-Backed Nts.: Series 2011-2, Cl. A3, 1.61%, 10/8/15		105,000		105,803
Series 2011-2, Cl. B, 2.33%, 3/8/16		300,000		304,662
Series 2011-2, Cl. D, 4%, 5/8/17		300,000		313,712
AmeriCredit Automobile Receivables Trust 2011-4, Automobile Receivables-Backed Nts., Series 2011-4, Cl. D, 4.08%, 7/10/17		500,000		509,563
AmeriCredit Automobile Receivables Trust 2011-5, Automobile Receivables-Backed Nts., Series 2011-5, Cl. D, 5.05%, 12/8/17		305,000		318,780
AmeriCredit Automobile Receivables Trust 2012-1, Automobile Receivables-Backed Nts., Series 2012-1, Cl. D, 4.72%, 3/8/18		270,000		285,425
AmeriCredit Automobile Receivables Trust 2012-2, Automobile Receivables-Backed Nts., Series 2012-2, Cl. D, 3.38%, 4/9/18		455,000		458,104
Avis Budget Rental Car Funding AESOP LLC, Automobile Receivable Nts.: Series 2011-2A, Cl. A, 2.37%, 11/20/14²		300,000		306,011
Series 2012-1A, Cl. A, 2.044%, 8/20/16²		235,000		237,442
Centre Point Funding LLC, Asset-Backed Nts., Series 2010-1A, Cl. 1, 5.43%, 7/20/15²		62,266		65,304
Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15		250,000		258,589
Citibank Omni Master Trust, Credit Card Receivables: Series 2009-A13, Cl. A13, 5.35%, 8/15/18²		430,000		469,852
Series 2009-A17, Cl. A17,
4.90%, 11/15/18²		40,000		43,698
CNH Wholesale Master Note Trust 2011-1, Equipment Nts., Series 2011-1, Cl. 1A, 1.042%, 1/20/41³		115,000		115,348
CPS Auto Trust, Automobile Receivable Nts., Series 2012-B, Cl. A, 3.09%, 9/1/19²		380,000		380,147
Credit Acceptance Auto Loan Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 2.20%, 9/16/19²		175,000		175,624

7	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Asset-Backed Securities Continued
DSC Floorplan Master Owner Trust, Automobile Receivable Nts., Series 2011-1, Cl. A, 3.91%, 3/15/16	$	310,000	$	318,273
DT Auto Owner Trust 2009-1, Automobile Receivable Nts., Series 2009-1, Cl. A1, 2.98%, 10/15/15²		32,070		32,119
DT Auto Owner Trust 2011-1A, Automobile Receivable Nts., Series 2011-1A, Cl. C, 3.05%, 8/15/15²		430,000		431,052
DT Auto Owner Trust 2011-2A, Automobile Receivable Nts., Series 2011-2A, Cl. C, 3.05%, 7/15/13²		105,000		104,970
DT Auto Owner Trust 2011-3A, Automobile Receivable Nts., Series 2011-3A, Cl. C, 4.03%, 12/15/41²		299,000		303,599
DT Auto Owner Trust 2012-1A, Automobile Receivable Nts., Series 2012-1A, Cl. A, 1.06%, 1/15/15²		245,690		245,717
Exeter Automobile Receivables Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 2.02%, 8/15/16²		215,639		215,781
First Investors Auto Owner Trust 2011-1, Automobile Receivable Nts., Series 2011-1, Cl. A2, 1.47%, 3/16/15		130,711		130,656
Ford Credit Floorplan Master Owner Trust, Automobile Receivable Nts., Series 2012-1, Cl. A, 0.712%, 1/15/16³		155,000		155,609
Hertz Vehicle Financing LLC, Automobile Receivable Nts., Series 2010-1A, Cl. A1, 2.60%, 2/25/15²		490,000		499,956
MBNA Credit Card Master Note Trust, Credit Card Receivables, Series 2003-C7, Cl. C7, 1.592%, 3/15/16³		375,000		377,186
Rental Car Finance Corp., Automobile Receivable Nts., Series 2011-1A, Cl. A1, 2.51%, 2/25/16²		265,000		269,475
Santander Drive Auto Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 0.95%, 8/15/13		25,023		25,026
Santander Drive Auto Receivables Trust 2010-3, Automobile Receivables Nts., Series 2010-3, Cl. C, 3.06%, 11/15/17		350,000		354,613
Santander Drive Auto Receivables Trust 2010-A, Automobile Receivables Nts.: Series 2010-A, Cl. A2, 1.37%, 8/15/13²		32,770		32,790
Series 2010-A, Cl. A3, 1.83%, 11/17/14²		95,000		95,844


	Principal Amount		Value

Asset-Backed Securities Continued
Santander Drive Auto Receivables Trust 2010-B, Automobile Receivables Nts., Series 2010-B, Cl. C, 3.02%, 10/17/16²	$	290,000	$	295,203
Santander Drive Auto Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. D, 4.01%, 2/15/17		360,000		367,088
Santander Drive Auto Receivables Trust 2011-4, Automobile Receivables Nts., Series 2011-4, Cl. B, 2.90%, 5/16/16		105,000		108,148
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17⁴		288,732		289,494
Santander Drive Auto Receivables Trust 2011-S2A, Automobile Receivables Nts., Series 2011-S2A, Cl. D, 3.35%, 6/15/17⁴		201,658		201,658
Santander Drive Auto Receivables Trust 2012-1, Automobile Receivables Nts., Series 2012-1, Cl. A2, 1.25%, 4/15/15		75,000		75,338
Santander Drive Auto Receivables Trust 2012-2, Automobile Receivables Nts., Series 2012-2, Cl. D, 5%, 2/15/18		355,000		358,960
SNAAC Auto Receivables Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 1.78%, 6/15/16²		215,000		215,117
Westlake Automobile Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. A3, 1.49%, 6/16/14²		155,000		155,262
Wheels SPV LLC, Asset-Backed Nts., Series 2012-1, Cl. A2, 1.47%, 3/20/21²		170,000		170,118

Total Asset-Backed Securities (Cost $11,855,402)				11,966,831
Mortgage-Backed Obligations—25.6%
Government Agency—20.6%
FHLMC/FNMA/FHLB/Sponsored—20.1%
Federal Home Loan Mortgage Corp.: 4.50%, 10/15/18		130,085		139,159
4.50%, 8/1/42⁵		2,375,000		2,536,426
5%, 12/15/34		9,439		10,215
5.50%, 9/1/39		1,178,393		1,283,902
6.50%, 4/15/18-4/1/34		92,818		103,554
7%, 10/1/31-10/1/37		694,474		808,340
8%, 4/1/16		28,932		31,220
9%, 8/1/22-5/1/25		12,467		14,443

8	OPPENHEIMER BALANCED FUND/VA


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 2006-11, Cl. PS, 23.667%, 3/25/36³	$	256,020	$	370,733
Series 2426, Cl. BG, 6%, 3/15/17		243,327		261,651
Series 2427, Cl. ZM, 6.50%, 3/15/32		322,972		372,659
Series 2461, Cl. PZ, 6.50%, 6/15/32		161,506		186,369
Series 2500, Cl. FD, 0.742%, 3/15/32³		21,413		21,612
Series 2526, Cl. FE, 0.642%, 6/15/29³		28,455		28,612
Series 2551, Cl. FD, 0.642%, 1/15/33³		18,818		18,929
Series 2626, Cl. TB, 5%, 6/1/33		418,326		460,585
Series 3025, Cl. SJ, 23.864%, 8/15/35³		68,864		102,188
Series 3822, Cl. JA, 5%, 6/1/40		519,346		552,757
Series 3848, Cl. WL, 4%, 4/1/40		399,339		422,819
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 183, Cl. IO, 14.834%, 4/1/27⁶		194,663		41,848
Series 192, Cl. IO, 12.769%, 2/1/28⁶		53,939		8,842
Series 2130, Cl. SC, 50.812%, 3/15/29⁶		161,930		32,780
Series 243, Cl. 6, 0.513%, 12/15/32⁶		175,672		38,310
Series 2531, Cl. ST, 99.999%, 2/15/30⁶		145,022		1,742
Series 2796, Cl. SD, 65.819%, 7/15/26⁶		234,720		47,351
Series 2802, Cl. AS, 83.524%, 4/15/33⁶		122,517		7,358
Series 2920, Cl. S, 66.067%, 1/15/35⁶		1,186,287		202,810
Series 3110, Cl. SL, 99.999%, 2/15/26⁶		157,861		22,043
Series 3450, Cl. BI, 12.367%, 5/15/38⁶		222,961		36,998
Series 3662, Cl. SM, 24.868%, 10/15/32⁶		174,999		23,346
Series 3736, Cl. SN, 6.506%, 10/15/40⁶		813,675		133,969
Federal Home Loan Mortgage Corp.,
Principal-Only Stripped Mtg.-Backed
Security, Series 176, Cl. PO,
3.829%, 6/1/26⁷		55,432		48,438
Federal National Mortgage Assn.:
2.50%, 7/1/27⁵		5,620,000		5,792,113
3.50%, 8/1/42⁵		5,410,000		5,673,738
4%, 7/1/27⁵		350,000		372,313
4.50%, 7/1/27⁵		794,000		851,193
5.50%, 9/25/20		8,312		9,109
5.50%, 7/1/27-8/1/42⁵		2,018,000		2,197,471
6%, 11/25/17-3/1/37		879,777		967,137
6%, 8/1/42⁵		1,140,000		1,252,753
6.50%, 5/25/17-10/25/19		195,422		210,880
7%, 11/1/17-10/25/35		107,531		116,199
7.50%, 1/1/33		160,388		195,080
8.50%, 7/1/32		7,112		8,842
Federal National Mortgage Assn., 15 yr.: 3%, 7/1/27⁵		8,640,000		9,054,450
3.50%, 7/1/27⁵		755,000		797,941
Federal National Mortgage Assn., 30 yr.: 4%, 8/1/42⁵		9,455,000		10,047,415
4.50%, 8/1/42⁵		4,985,000		5,344,854


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn.,
Gtd. Real Estate Mtg. Investment
Conduit Multiclass
Pass-Through Certificates:
Trust 1998-61, Cl. PL, 6%, 11/25/28	$	145,421	$	162,885
Trust 2003-130, Cl. CS, 13.61%, 12/25/33³		38,095		45,651
Trust 2003-28, Cl. KG, 5.50%, 4/25/23		662,000		736,396
Trust 2004-101, Cl. BG, 5%, 1/25/20		838,515		898,447
Trust 2004-9, Cl. AB, 4%, 7/1/17		30,296		30,333
Trust 2005-104, Cl. MC, 5.50%, 12/25/25		700,000		776,908
Trust 2005-31, Cl. PB, 5.50%, 4/25/35		250,000		313,154
Trust 2005-69, Cl. LE, 5.50%, 11/1/33		183,264		189,593
Trust 2006-46, Cl. SW, 23.30%, 6/25/36³		185,910		267,433
Trust 2006-50, Cl. KS, 23.301%, 6/25/36³		41,193		59,849
Trust 2007-42, Cl. A, 6%, 2/1/33		402,561		418,850
Trust 2009-36, Cl. FA, 1.185%, 6/25/37³		456,623		463,709
Trust 2009-37, Cl. HA, 4%, 4/1/19		353,430		374,208
Trust 2009-70, Cl. PA, 5%, 8/1/35		366,908		373,047
Trust 2011-15, Cl. DA, 4%, 3/1/41		225,788		241,332
Trust 2011-3, Cl. KA, 5%, 4/1/40		387,725		422,360
Federal National Mortgage Assn.,
Interest-Only Stripped
Mtg.-Backed Security:
Trust 2001-65, Cl. S, 34.443%, 11/25/31⁶		407,680		79,328
Trust 2001-81, Cl. S, 26.301%, 1/25/32⁶		98,300		20,749
Trust 2002-47, Cl. NS, 33.878%, 4/25/32⁶		248,591		49,682
Trust 2002-51, Cl. S, 34.116%, 8/25/32⁶		228,266		45,618
Trust 2002-52, Cl. SD, 40.43%, 9/25/32⁶		295,994		65,446
Trust 2002-77, Cl. SH, 42.876%, 12/18/32⁶		146,409		30,398
Trust 2002-84, Cl. SA, 36.534%, 12/25/32⁶		379,458		69,002
Trust 2002-9, Cl. MS, 30.893%, 3/25/32⁶		104,411		20,521
Trust 2003-33, Cl. SP, 99.999%, 5/25/33⁶		430,084		67,658
Trust 2003-4, Cl. S, 32.188%, 2/25/33⁶		242,480		44,012
Trust 2003-46, Cl. IH, 99.999%, 6/1/23⁶		883,806		120,962
Trust 2003-89, Cl. XS, 99.999%, 11/25/32⁶		59,398		1,332
Trust 2004-54, Cl. DS, 48.962%, 11/25/30⁶		240,776		48,658
Trust 2004-56, Cl. SE, 17.45%, 10/25/33⁶		77,158		13,071
Trust 2005-14, Cl. SE, 45.002%, 3/25/35⁶		121,998		20,079
Trust 2005-40, Cl. SA, 57.95%, 5/25/35⁶		635,981		124,580
Trust 2005-5, Cl. SD, 11.622%, 1/25/35⁶		172,117		27,086
Trust 2005-71, Cl. SA, 63.085%, 8/25/25⁶		663,088		95,002
Trust 2005-93, Cl. SI, 21.417%, 10/25/35⁶		187,295		27,647
Trust 2006-60, Cl. DI, 43.055%, 4/25/35⁶		71,781		9,776
Trust 2007-84, Cl. DS, 12.971%, 8/25/37⁶		238,243		41,978
Trust 2007-88, Cl. XI, 42.67%, 6/25/37⁶		502,266		84,564
Trust 2008-46, Cl. EI, 12.78%, 6/25/38⁶		228,236		40,657

9	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn.,
Interest-Only Stripped
Mtg.-Backed Security: Continued
Trust 2008-55, Cl. SA, 22.774%, 7/25/38⁶	$	564,180	$	90,759
Trust 2008-67, Cl. KS, 56.708%, 8/25/34⁶		318,833		24,035
Trust 2009-8, Cl. BS, 18.395%, 2/25/24⁶		145,261		14,423
Trust 222, Cl. 2, 24.455%, 6/1/23⁶		423,719		79,309
Trust 233, Cl. 2, 44.351%, 8/1/23⁶		276,221		61,889
Trust 252, Cl. 2, 37.95%, 11/1/23⁶		361,910		77,681
Trust 319, Cl. 2, 4.842%, 2/1/32⁶		99,677		15,476
Trust 320, Cl. 2, 10.38%, 4/1/32⁶		27,559		4,366
Trust 321, Cl. 2, 0.922%, 4/1/32⁶		327,257		50,478
Trust 331, Cl. 9, 12.993%, 2/1/33⁶		329,407		51,646
Trust 334, Cl. 17, 20.54%, 2/1/33⁶		199,677		44,343
Trust 339, Cl. 12, 1.903%, 7/1/33⁶		319,355		61,310
Trust 339, Cl. 7, 0%, 7/1/33^6,8		972,855		134,313
Trust 343, Cl. 13, 0%, 9/1/33^6,8		299,066		41,480
Trust 345, Cl. 9, 0%, 1/1/34^6,8		353,020		44,024
Trust 351, Cl. 10, 0%, 4/1/34^6,8		43,470		6,393
Trust 351, Cl. 8, 0%, 4/1/34^6,8		141,556		20,168
Trust 356, Cl. 10, 0%, 6/1/35^6,8		110,998		15,504
Trust 356, Cl. 12, 0%, 2/1/35^6,8		60,393		8,471
Trust 362, Cl. 13, 0%, 8/1/35^6,8		394,710		65,013
Trust 364, Cl. 16, 0%, 9/1/35^6,8		297,978		47,704
Federal National Mortgage Assn.,
Principal-Only Stripped Mtg.-Backed
Security, Trust 1993-184, Cl. M,
4.355%, 9/25/23⁷		153,374		144,407

				59,288,649
GNMA/Guaranteed—0.3%
Government National Mortgage Assn.: 7%, 1/30/24		72,348		85,072
7.50%, 1/30/23-6/30/24		70,839		81,123
8%, 5/30/17-4/15/23		63,136		73,337
8.50%, 8/1/17-12/15/17		16,919		18,164
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 2001-21, Cl. SB, 88.053%, 1/16/27⁶		291,417		54,004
Series 2002-15, Cl. SM, 79.607%, 2/16/32⁶		337,904		66,737
Series 2002-76, Cl. SY, 81.88%, 12/16/26⁶		751,087		157,222
Series 2004-11, Cl. SM, 70.41%, 1/17/30⁶		265,519		62,327
Series 2007-17, Cl. AI, 22.03%, 4/16/37⁶		751,548		149,458
Series 2011-52, Cl. HS, 9.436%, 4/16/41⁶		357,224		91,547

				838,991


	Principal Amount		Value

Other Agency—0.2%
NCUA Guaranteed Notes Trust 2010-R3, Gtd. Nts., Series 2010-R3, Cl. 2A, 0.799%, 12/8/20³	$	535,030	$	537,287
Non-Agency—5.0%
Commercial—3.2%
Banc of America Commercial Mortgage Trust 2007-1, Commercial Mtg. Pass-Through Certificates, Series 2007-1, Cl. A4, 5.451%, 1/1/49		515,000		585,872
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-3, Cl. A4, 5.805%, 6/1/49³		270,000		306,418
Bear Stearns ARM Trust 2007-4, Mtg. Pass-Through Certificates, Series 2007-4, Cl. 22A1, 5.569%, 6/1/47³		222,838		165,784
Bear Stearns Commercial Mortgage Securities Trust2007-PWR17, Commercial Mtg. Pass-Through Certificates, Series 2007-PWR17, Cl. AM, 5.915%, 6/1/50³		305,000		323,129
CFCRE Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2011-C1, Cl. A1, 1.871%, 4/1/44²		89,375		89,877
CHL Mortgage Pass-Through Trust 2007-J3, Mtg. Pass-Through Certificates, Series 2007-J3, Cl. A9, 6%, 7/1/37		45,933		33,625
Citigroup Commercial Mortgage Trust 2008-C7, Commercial Mtg. Pass-Through Certificates, Series 2008-C7, Cl. A4, 6.276%, 12/1/49³		460,000		539,410
Citigroup, Inc./Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. A4, 5.322%, 12/1/49		425,000		474,031
Deutsche Alt-B Securities, Inc., Mtg. Pass-Through Certificates, Series 2006-AB4, Cl. A1A, 6.005%, 10/25/36		317,733		187,114
Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security, Series 2010-C1, Cl. XPA, 4.883%, 9/1/20^2,6		3,091,820		210,006

10	OPPENHEIMER BALANCED FUND/VA


	Principal Amount		Value

Commercial Continued
First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35	$	312,733	$	301,941
First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37		506,085		317,430
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2006-GG7, Commercial Mtg. Pass-Through Certificates, Series 2006-GG7, Cl. AM, 6.071%, 7/1/38³		190,000		199,071
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. A4, 5.736%, 12/1/49		300,000		333,720
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. AM, 5.475%, 3/1/39		115,000		114,518
GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2011-GC3, Cl. A1, 2.331%, 3/1/44		239,769		245,071
GS Mortgage Securities Trust 2006-GG6, Commercial Mtg. Pass-Through Certificates, Series 2006-GG6, Cl. AM, 5.622%, 4/1/38		286,699		292,568
GSR Mortgage Loan Trust 2005-AR4, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 6A1, 5.25%, 7/1/35		115,632		113,351
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 5.009%, 11/1/35³		293,110		214,783
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2011-C3, Cl. A1, 1.875%, 2/1/46²		283,252		286,169
Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/49²		128,494		129,887
Series 2007-LDP10, Cl. A3S, 5.317%, 1/1/49		520,000		534,014


	Principal Amount		Value

Commercial Continued
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Continued
Series 2007-LDPX, Cl. A3, 5.42%, 1/15/49	$	60,000	$	67,437
Series 2007-LD11, Cl. A2,
5.994%, 6/15/49³		214,369		214,715
JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through Certificates, Series 2007-S3, Cl. 1A90, 7%, 8/1/37		313,103		271,429
LB-UBS Commercial Mortgage Trust 2007-C1, Commercial Mtg. Pass-Through Certificates, Series 2007-C1, Cl. A2, 5.318%, 2/11/40		51,224		51,629
LB-UBS Commercial Mortgage Trust 2007-C6, Commercial Mtg. Pass-Through Certificates, Series 2007-C6, Cl. A4, 5.858%, 7/11/40		620,000		711,212
Mastr Adjustable Rate Mortgages Trust 2004-13, Mtg. Pass-Through Certificates, Series 2004-13, Cl. 2A2, 2.634%, 4/1/34³		176,493		177,264
Merrill Lynch Mortgage Trust 2006-C2, Commercial Mtg. Pass-Through Certificates, Series 2006-C2, Cl. AM, 5.782%, 8/1/43		290,000		302,756
Morgan Stanley Capital I Trust 2007-IQ15, Commercial Mtg. Pass-Through Certificates, Series 2007-IQ15, Cl. AM, 6.076%, 6/1/49³		345,000		344,365
Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-Through Certificates, Series 2007-6, Cl. 3A1, 4.89%, 7/1/37³		297,065		196,327
Wachovia Bank Commercial Mortgage Trust 2006-C28, Commercial Mtg. Pass-Through Certificates, Series 2006-C28, Cl. A4, 5.572%, 10/1/48		40,000		44,495
Wachovia Bank Commercial Mortgage Trust 2007-C34, Commercial Mtg. Pass-Through Certificates, Series 2007-C34, Cl. A3, 5.678%, 5/1/46		380,000		438,967
WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4, 2.451%, 12/1/35³		144,798		124,061

11	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Commercial Continued
Wells Fargo Mortgage-Backed Securities 2005-AR1 Trust, Mtg. Pass-Through Certificates, Series 2005-AR1, Cl. 1A1, 2.61%, 2/1/35³	$	63,101	$	58,932
Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg. Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.019%, 11/1/37³		194,997		160,340
WFRBS Commercial Mortgage Trust 2011-C3, Interest-Only Commercial Mtg. Pass-Through Certificates, Series 2011-C3, Cl. XA, 8.956%, 3/1/44⁶		4,109,964		352,121

				9,513,839
Multifamily—0.3%
Citigroup Mortgage Loan Trust, Inc. 2006-AR3, Mtg. Pass-Through Certificates, Series 2006-AR3, Cl. 1A2A, 5.625%, 6/1/36³		185,000		160,188
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A2M, 5.133%, 5/1/37³		39,431		33,720
Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1,
2.668%, 3/25/36³		708,936		602,507

				796,415
Other—0.2%
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A4, 5.444%, 3/1/39		555,000		617,921
Residential—1.3%
Argent Securities Trust 2004-W8, Asset-Backed Pass-Through Certificates, Series 2004-W8, Cl. A2, 1.205%, 5/25/34³		140,887		121,152
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-4, Cl. AM, 5.984%, 2/1/51³		320,000		321,856
Banc of America Funding 2007-C Trust, Mtg. Pass-Through Certificates, Series 2007-C, Cl. 1A4, 5.532%, 5/1/36³		80,000		71,609


	Principal Amount		Value

Residential Continued
Banc of America Mortgage Securities, Inc., Mtg. Pass-Through Certificates, Series 2004-E, Cl. 2A6, 3.109%, 6/1/34³	$	235,383	$	224,839
Carrington Mortgage Loan Trust, Asset-Backed Pass-Through Certificates, Series 2006-FRE1, Cl. A2, 0.355%, 7/25/36³		153,464		142,293
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35		57,034		50,124
CHL Mortgage Pass-Through Trust 2006-17, Mtg. Pass-Through Certificates, Series 2006-17, Cl. A2, 6%, 12/1/36		311,779		262,529
CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36		124,973		113,249
Countrywide Alternative Loan Trust 2005-29CB, Mtg. Pass-Through Certificates, Series 2005-29CB, Cl. A4, 5%, 7/1/35		750,799		542,725
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-Through Certificates, Series 2007-19, Cl. 1A34, 6%, 8/1/37		182,731		128,922
Countrywide Home Loans, Asset-Backed Certificates: Series 2002-4, Cl. A1, 0.985%, 2/25/33³		6,454		6,316
Series 2005-16, Cl. 2AF2, 5.331%, 5/1/36³		399,697		310,748
CSMC Mortgage-Backed Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 2A10, 6%, 4/1/37		198,497		166,573
CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 0.365%, 6/25/47³		303,177		298,737
GSR Mortgage Loan Trust 2006-5F, Mtg. Pass-Through Certificates, Series 2006-5F, Cl. 2A1, 6%, 6/1/36		124,526		113,412
JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36		113,934		98,989
RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33		142,915		148,604

12	OPPENHEIMER BALANCED FUND/VA


	Principal Amount		Value

Residential Continued
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36	$	22,465	$	14,803
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36		37,341		29,339
WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1, 5.312%, 5/1/37³		180,844		160,865
Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1, 6.25%, 11/1/37		164,017		148,785
Wells Fargo Mortgage-Backed Securities 2005-9 Trust, Mtg. Pass-Through Certificates, Series 2005-9, Cl. 2A6, 5.25%, 10/25/35		99,100		100,272
Wells Fargo Mortgage-Backed Securities 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A2, 5.662%, 10/1/36³		182,644		165,210

				3,741,951
Total Mortgage-Backed Obligations (Cost $73,509,290)				75,335,053
U.S. Government Obligations—0.8%
Federal Home Loan Mortgage Corp. Nts.: 1%, 7/28/17		105,000		105,127
1.25%, 5/12/17		150,000		152,233
1.75%, 5/30/19		215,000		220,407
2.375%, 1/13/22⁹		611,000		628,913
5.25%, 4/18/16		300,000		351,494
5.50%, 7/18/16		65,000		77,316
Federal National Mortgage Assn. Nts.:
1.125%, 4/27/17		549,000		555,062
5.375%, 6/12/17		175,000		212,358
U.S. Treasury Nts., 1.75%, 5/15/22		82,000		82,756

Total U.S. Government Obligations (Cost $2,313,595)				2,385,666
Non-Convertible Corporate Bonds and Notes—18.9%
Consumer Discretionary—3.1%
Auto Components—0.1%
Dana Holding Corp., 6.75% Sr. Unsec. Nts., 2/15/21		289,000		313,565


	Principal Amount		Value

Automobiles—0.3%
DaimlerChrysler NA Holdings Corp., 8.50% Nts., 1/18/31	$	164,000	$	251,855
Ford Motor Credit Co. LLC, 5.875% Sr. Unsec. Nts., 8/2/21		600,000		669,172

				921,027
Diversified Consumer Services—0.1%
Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15		344,000		374,960
Hotels, Restaurants & Leisure—0.3%
Darden Restaurants, Inc., 4.50% Sr. Unsec. Unsub. Nts., 10/15/21		163,000		172,562
Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/15²		520,000		570,693
Starwood Hotels & Resorts Worldwide, Inc., 7.15% Sr. Unsec. Unsub. Nts., 12/1/19		79,000		93,284

				836,539
Household Durables—0.3%
Jarden Corp., 6.125% Sr. Unsec. Nts., 11/15/22		323,000		342,380
Newell Rubbermaid, Inc., 5.50% Sr. Unsec. Nts., 4/15/13		330,000		341,245
Whirlpool Corp., 5.50% Sr. Unsec. Unsub. Nts., 3/1/13		134,000		137,565

				821,190
Media—1.0%
CBS Corp., 4.85% Sr. Unsec. Unsub. Nts., 7/1/42		97,000		95,444
Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22		205,000		299,189
CSC Holdings, Inc., 7.625% Sr. Unsec. Debs., 7/15/18		298,000		334,505
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 5.15% Sr. Unsec. Nts., 3/15/42		180,000		182,099
DISH DBS Corp., 6.75% Sr. Unsec. Nts., 6/1/21		317,000		343,945
Historic TW, Inc., 9.125% Debs., 1/15/13		115,000		119,801
Interpublic Group of Cos., Inc. (The):
6.25% Sr. Unsec. Nts., 11/15/14		120,000		131,700
10% Sr. Unsec. Nts., 7/15/17		324,000		367,740
News America, Inc., 6.15% Sr. Unsec. Nts., 2/15/41		109,000		128,090
Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33		181,000		246,132
Time Warner, Inc., 9.15% Debs., 2/1/23		38,000		52,950

13	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Media Continued
Virgin Media Secured Finance plc:
5.25% Sr. Sec. Nts., 1/15/21	$	195,000	$	216,554
6.50% Sr. Sec. Nts., 1/15/18		417,000		455,573

				2,973,722
Multiline Retail—0.4%
Dollar General Corp., 4.125% Nts., 7/15/17⁵		289,000		294,419
Family Dollar Stores, Inc., 5% Sr. Unsec. Nts., 2/1/21		189,000		203,520
Macy’s Retail Holdings, Inc., 5.75% Sr. Unsec. Nts., 7/15/14		500,000		542,954
Target Corp., 4% Sr. Unsec. Nts., 7/1/42		212,000		210,057

				1,250,950
Specialty Retail—0.5%
Limited Brands, Inc., 6.625% Sr. Nts., 4/1/21		315,000		345,713
Rent-A-Center, Inc., 6.625% Sr. Unsec. Nts., 11/15/20		355,000		379,850
Sally Holdings LLC/Sally Capital, Inc., 6.875% Sr. Unsec. Nts., 11/15/19		323,000		352,878
Staples, Inc., 9.75% Sr. Unsec. Unsub. Nts., 1/15/14		273,000		305,267

				1,383,708
Textiles, Apparel & Luxury Goods—0.1%
Phillips-Van Heusen Corp., 7.375% Sr. Unsec. Unsub. Nts., 5/15/20		277,000		308,163
Consumer Staples—1.3%
Beverages—0.4%
Anheuser-Busch InBev Worldwide, Inc., 8.20% Sr. Unsec. Unsub. Nts., 1/15/39		125,000		199,668
Constellation Brands, Inc., 6% Sr. Unsec. Unsub. Nts., 5/1/22		315,000		339,413
Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14		87,000		95,351
Pernod-Ricard SA, 4.25% Sr. Unsec. Nts., 7/15/22²		307,000		315,715
SABMiller Holdings, Inc., 4.95% Sr. Unsec. Nts., 1/15/42		122,000		135,781

				1,085,928
Food & Staples Retailing—0.1%
Delhaize Group: 5.70% Sr. Unsec. Nts., 10/1/40		94,000		79,305
5.875% Sr. Unsec. Unsub. Bonds, 2/1/14		279,000		293,928

				373,233
Food Products—0.5%
Bunge Ltd. Finance Corp.: 5.35% Sr. Unsec. Unsub. Nts., 4/15/14		236,000		249,155


	Principal Amount		Value

Food Products Continued
Bunge Ltd. Finance Corp.: Continued
8.50% Sr. Unsec. Nts., 6/15/19	$	207,000	$	258,922
Kraft Foods Group, Inc., 5% Sr. Unsec. Nts., 6/4/42²		76,000		80,872
Kraft Foods, Inc., 6.50% Sr. Unsec. Unsub. Nts., 2/9/40		192,000		247,857
TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18		353,000		383,446
Tyson Foods, Inc., 4.50% Sr. Unsec. Unsub. Nts., 6/15/22		150,000		155,250

				1,375,502
Tobacco—0.3%
Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39		262,000		427,993
Lorillard Tobacco Co., 7% Sr. Unsec. Nts., 8/4/41		221,000		240,775
Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13		319,000		336,816

				1,005,584
Energy—2.3%
Energy Equipment & Services—0.6%
Ensco plc, 4.70% Sr. Unsec. Nts., 3/15/21		350,000		382,194
Nabors Industries, Inc., 6.15% Sr. Unsec. Unsub. Nts., 2/15/18		425,000		488,535
Noble Holding International Ltd., 7.375% Sr. Unsec. Bonds, 3/15/14		276,000		301,867
Precision Drilling Corp.: 6.50% Sr. Unsec. Nts., 12/15/21		152,000		155,800
6.625% Sr. Unsec. Nts., 11/15/20		145,000		150,075
Rowan Cos., Inc., 4.875% Sr. Unsec. Nts., 6/1/22		198,000		200,277

				1,678,748
Oil, Gas & Consumable Fuels—1.7%
Anadarko Petroleum Corp., 6.20% Sr. Unsec. Nts., 3/15/40		117,000		133,438
Apache Corp., 4.75% Sr. Unsec. Unsub. Nts., 4/15/43		107,000		119,532
Canadian Oil Sands Ltd., 5.80% Sr. Unsec. Nts., 8/15/13²		318,000		331,953
El Paso Pipeline Partners LP, 6.50% Sr. Unsec. Nts., 4/1/20		488,000		569,153
Energy Transfer Partners LP: 4.65% Sr. Unsec. Unsub. Nts., 6/1/21		256,000		265,150
5.20% Sr. Unsec. Unsub. Nts., 2/1/22		92,000		98,780
Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13		566,000		584,136

14	OPPENHEIMER BALANCED FUND/VA


	Principal Amount		Value

Oil, Gas & Consumable Fuels Continued
Kinder Morgan Energy Partners LP, 3.95% Sr. Unsec. Unsub. Nts., 9/1/22	$	109,000	$	110,745
Newfield Exploration Co., 6.875% Sr. Unsec. Sub. Nts., 2/1/20		308,000		329,560
Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37		363,000		386,333
Phillips 66, 4.30% Unsec. Nts., 4/1/22²		214,000		225,750
Plains All American Pipeline LP/PAA Finance Corp., 5.15% Sr. Unsec. Unsub. Nts., 6/1/42		114,000		121,103
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19		314,000		344,615
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14⁴		291,000		314,644
Rockies Express Pipeline LLC, 3.90% Sr. Unsec. Unsub. Nts., 4/15/15²		327,000		316,373
Southwestern Energy Co., 4.10% Sr. Unsec. Nts., 3/15/22²		160,000		162,619
Woodside Finance Ltd.: 4.60% Sr. Unsec. Nts., 5/10/21²		245,000		262,932
5% Sr. Unsec. Nts., 11/15/13²		312,000		325,418

				5,002,234
Financials—6.6%
Capital Markets—1.5%
Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts., 8/15/19²		600,000		658,646
Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34		340,000		322,839
Goldman Sachs Group, Inc. (The): 5.25% Sr. Unsec. Nts., 7/27/21		271,000		275,978
6.25% Sr. Nts., 2/1/41		307,000		321,606
Macquarie Bank Ltd.: 5% Sr. Nts., 2/22/17²		101,000		103,017
6.625% Unsec. Sub. Nts., 4/7/21²		466,000		468,323
Morgan Stanley: 5.50% Sr. Unsec. Unsub. Nts., 7/24/20²		114,000		111,784
5.625% Sr. Unsec. Nts., 9/23/19		753,000		746,773
Nomura Holdings, Inc.: 4.125% Sr. Unsec. Unsub. Nts., 1/19/16		330,000		336,188
6.70% Sr. Unsec. Nts., 3/4/20		28,000		31,089
Raymond James Financial, Inc., 5.625% Sr. Nts., 4/1/24		314,000		336,285
TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts., 12/1/12		354,000		356,777
UBS AG Stamford CT,
2.25% Sr. Unsec. Nts., 8/12/13		139,000		139,473
UBS Preferred Funding Trust V, 6.243% Jr. Sub. Perpetual Nts.¹⁰		302,000		286,900

				4,495,678


	Principal Amount		Value

Commercial Banks—1.2%
ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/12²	$	382,000	$	384,625
Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37		641,000		639,398
HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35³		820,000		773,875
Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/20²		562,000		554,757
Mercantile Bankshares Corp., 4.625% Unsec. Sub. Nts., Series B, 4/15/13		218,000		223,756
Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K¹⁰		333,000		367,133
Zions Bancorp, 4.50% Sr. Unsec. Unsub. Nts., 3/27/17		438,000		441,021

				3,384,565
Consumer Finance—0.5%
American Express Bank FSB, 5.50% Sr. Unsec. Nts., 4/16/13		329,000		341,344
Discover Bank, 8.70% Unsec. Sub. Nts., 11/18/19		457,000		568,903
SLM Corp., 6.25% Sr. Nts., 1/25/16		483,000		509,565

				1,419,812
Diversified Financial Services—1.1%
Bank of America Corp., 5.70% Sr. Unsec. Unsub. Nts., 1/24/22		466,000		514,543
Citigroup, Inc.: 4.45% Sr. Unsec. Unsub. Nts., 1/10/17		191,000		200,501
4.50% Sr. Unsec. Nts., 1/14/22⁵		279,000		288,947
6.125% Sr. Unsec. Unsub. Nts., 11/21/17		519,000		575,942
ING Bank NV, 3.75% Unsec. Nts., 3/7/17²		108,000		107,653
JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1¹⁰		1,037,000		1,140,800
Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38		453,000		518,825

				3,347,211
Insurance—1.8%
American International Group, Inc.: 4.875% Sr. Unsec. Nts., 6/1/22		255,000		261,637
6.25% Jr. Sub. Bonds, 3/15/37		147,000		136,710
Burlington Northern Santa Fe LLC, 5.75% Sr. Unsec. Bonds, 5/1/40		97,000		116,248
CNA Financial Corp.: 5.75% Sr. Unsec. Unsub. Nts., 8/15/21		290,000		319,455
5.875% Sr. Unsec. Unsub. Bonds, 8/15/20		169,000		186,265

15	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Insurance Continued
Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/12²	$	317,000	$	318,430
Hartford Financial Services Group, Inc., 6.625% Sr. Unsec. Unsub. Nts., 4/15/42		178,000		184,166
Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec. Unsub. Nts., 1/14/13²		170,000		166,446
Liberty Mutual Group, Inc., 5% Sr. Nts., 6/1/21²		506,000		510,502
Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67		688,000		634,680
Prudential Covered Trust 2012-1, 2.997% Sec. Nts., 9/30/15²		412,000		418,910
Swiss Re Capital I LP, 6.854% Perpetual Bonds^2,10		673,000		620,701
Unum Group, 5.625% Sr. Unsec. Unsub. Nts., 9/15/20		520,000		560,609
Willis Group Holdings plc, 4.125% Sr. Unsec. Unsub. Nts., 3/15/16		116,000		121,413
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37^3,4		587,000		578,195

				5,134,367
Real Estate Investment Trusts—0.5%
American Tower Corp.:
5.05% Sr. Unsec. Unsub. Nts., 9/1/20		75,000		78,963
7% Sr. Unsec. Nts., 10/15/17		294,000		342,159
CommonWealth REIT, 5.75% Sr. Unsec. Unsub. Bonds, 2/15/14		295,000		302,207
Duke Realty LP, 6.25% Sr. Unsec. Unsub. Nts., 5/15/13		322,000		332,873
National Retail Properties, Inc., 6.25% Sr. Unsec. Unsub. Nts., 6/15/14		211,000		224,110
WEA Finance LLC/WT Finance Aust Pty Ltd., 7.50% Sr. Unsec. Nts., 6/2/14²		283,000		308,944

				1,589,256
Health Care—0.6%
Biotechnology—0.3%
Amgen, Inc., 3.625% Sr. Unsec. Unsub. Nts., 5/15/22		299,000		310,069
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40		215,000		242,118
Gilead Sciences, Inc., 5.65% Sr. Unsec. Nts., 12/1/41		167,000		195,678

				747,865
Health Care Providers & Services—0.2%
Aristotle Holding, Inc., 3.90% Unsec. Nts., 2/15/22²		221,000		229,712


	Principal Amount		Value

Health Care Providers & Services Continued
McKesson Corp., 6% Sr. Unsec. Unsub. Nts., 3/1/41	$	183,000	$	242,302
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40		215,000		247,374

				719,388
Pharmaceuticals—0.1%
Mylan, Inc., 6% Sr. Nts., 11/15/18²		365,000		385,988
Industrials—1.4%
Aerospace & Defense—0.2%
Huntington Ingalls Industries, Inc., 7.125% Sr. Unsec. Unsub. Nts., 3/15/21		280,000		294,000
United Technologies Corp., 3.10% Sr. Unsec. Unsub. Nts., 6/1/22		204,000		214,403

				508,403
Commercial Services & Supplies—0.1%
Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17		344,000		374,100
R.R. Donnelley & Sons Co., 8.60% Sr. Unsec. Unsub. Nts., 8/15/16		50,000		53,250

				427,350
Industrial Conglomerates—0.4%
General Electric Capital Corp.: 5.25% Sr. Unsec. Nts., 10/19/12		49,000		49,690
6.375% Unsec. Sub. Bonds, 11/15/67		644,000		672,175
7.125% Unsec. Sub. Nts., 12/15/49		300,000		318,113

				1,039,978
Machinery—0.5%
CNH Capital LLC, 6.25% Sr. Unsec. Nts., 11/1/16²		338,000		363,350
ITT Corp., 7.375% Unsec. Debs., 11/15/15		217,000		249,272
Joy Global, Inc., 5.125% Sr. Unsec. Unsub. Nts., 10/15/21		163,000		179,410
Kennametal, Inc., 3.875% Sr. Unsec. Unsub. Nts., 2/15/22		234,000		241,425
SPX Corp., 6.875% Sr. Unsec. Nts., 9/1/17²		286,000		313,170

				1,346,627
Professional Services—0.1%
FTI Consulting, Inc., 6.75% Sr. Unsec. Nts., 10/1/20		288,000		305,280
Road & Rail—0.1%
CSX Corp., 5.50% Sr. Unsec. Nts., 4/15/41		101,000		114,136
Kansas City Southern de Mexico, 8% Sr. Unsec. Unsub. Nts., 2/1/18		297,000		333,769

				447,905

16	OPPENHEIMER BALANCED FUND/VA


	Principal Amount		Value

Information Technology—0.6%
Communications Equipment—0.1%
Juniper Networks, Inc., 5.95% Sr. Unsec. Unsub. Nts., 3/15/41	$	138,000	$	159,646
Computers & Peripherals—0.1%
Hewlett-Packard Co., 4.65% Sr. Unsec. Nts., 12/9/21		249,000		261,701
Electronic Equipment & Instruments—0.1%
Arrow Electronics, Inc., 5.125% Sr. Unsec. Unsub. Nts., 3/1/21		340,000		357,440
Corning, Inc., 4.75% Sr. Unsec. Unsub. Nts., 3/15/42		125,000		131,710

				489,150
Office Electronics—0.1%
Xerox Corp., 5.65% Sr. Unsec. Nts., 5/15/13		330,000		341,997
Semiconductors & Semiconductor Equipment—0.1%
Advanced Micro Devices, Inc., 7.75% Sr. Unsec. Nts., 8/1/20		274,000		302,770
Software—0.1%
Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20		391,000		400,936
Materials—1.3%
Chemicals—0.3%
Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41		155,000		190,830
Airgas, Inc., 3.25% Sr. Nts., 10/1/15		565,000		589,310
Eastman Chemical Co., 4.80% Sr. Unsec. Nts., 9/1/42		208,000		213,183

				993,323
Containers & Packaging—0.2%
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25% Sr. Unsec. Nts., 2/1/21		308,000		338,030
Rock-Tenn Co., 4.90% Sr. Unsec. Nts., 3/1/22²		112,000		115,692
Sealed Air Corp., 8.375% Sr. Unsec. Nts., 9/15/21²		270,000		306,450

				760,172
Metals & Mining—0.7%
ArcelorMittal, 6.25% Sr. Unsec. Unsub. Nts., 2/25/22		171,000		167,897
Cliffs Natural Resources, Inc., 6.25% Sr. Unsec. Unsub. Nts., 10/1/40		86,000		84,834
Freeport-McMoRan Copper & Gold, Inc., 3.55% Sr. Unsec. Nts., 3/1/22		227,000		223,974
Petrohawk Energy Corp., 6.25% Sr. Unsec. Nts., 6/1/19		499,000		559,443


	Principal Amount		Value

Metals & Mining Continued
Teck Resources Ltd., 7% Sr. Unsec. Unsub. Nts., 9/15/12	$	322,000	$	325,630
Xstrata Canada Corp.: 5.375% Sr. Unsec. Unsub. Nts., 6/1/15		135,000		146,505
6% Sr. Unsec. Unsub. Nts., 10/15/15		264,000		291,193
7.25% Sr. Unsec. Unsub. Nts., 7/15/12		122,000		122,226
Xstrata Finance Canada Ltd., 5.80% Sr. Unsec. Unsub. Bonds, 11/15/16²		35,000		39,150

				1,960,852
Paper & Forest Products—0.1%
International Paper Co., 6% Sr. Unsec. Unsub. Nts., 11/15/41		139,000		157,487
Westvaco Corp., 7.95% Sr. Unsec. Unsub. Nts., 2/15/31		66,000		75,670

				233,157
Telecommunication Services—1.0%
Diversified Telecommunication Services—0.9%
AT&T, Inc., 6.30% Sr. Unsec. Bonds, 1/15/38		409,000		511,874
British Telecommunications plc, 9.875% Bonds, 12/15/30		209,000		315,434
CenturyLink, Inc., 7.65% Sr. Unsec. Unsub. Nts., 3/15/42		244,000		237,741
Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17		343,000		370,440
Telecom Italia Capital SA, 7.721% Sr. Unsec. Unsub. Nts., 6/4/38		383,000		337,040
Telefonica Emisiones SAU, 5.462% Sr. Unsec. Unsub. Nts., 2/16/21		469,000		409,346
Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38		199,000		259,661
Vivendi SA, 4.75% Sr. Unsec. Nts., 4/12/22²		20,000		19,791
Windstream Corp., 7.875% Sr. Unsec. Unsub. Nts., 11/1/17		303,000		331,785

				2,793,112
Wireless Telecommunication Services—0.1%
America Movil SAB de CV, 6.125% Sr. Unsec. Unsub. Nts., 3/30/40		149,000		185,125
Utilities—0.7%
Electric Utilities—0.5%
Edison International, 3.75% Sr. Unsec. Unsub. Nts., 9/15/17		438,000		462,620
Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13		354,000		359,303
Oncor Electric Delivery Co. LLC, 4.10% Sr. Sec. Nts., 6/1/22²		60,000		61,347

17	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Electric Utilities Continued
PPL WEM Holdings plc, 5.375% Sr. Unsec. Nts., 5/1/21²	$	492,000	$	531,397

				1,414,667
Energy Traders—0.1%
TransAlta Corp., 5.75% Sr. Unsec. Nts., 12/15/13		316,000		331,923
Gas Utilities—0.1%
Southwest Gas Corp., 3.875% Sr. Unsec. Unsub. Nts., 4/1/22		215,000		227,244

Total Non-Convertible Corporate Bonds and Notes (Cost $53,493,534)				55,860,501



	Expiration Date		Strike Price		Contracts

Options Purchased—0.0%
Humana, Inc. Put¹		7/23/12	$	72.500		128	3,840
Humana, Inc. Put¹		8/20/12		67.500		132	6,600


	Expiration Date		Strike Price		Contracts		Value

Options Purchased Continued
UnitedHealth Group, Inc. Put¹		7/23/12	$	55.000		209	$	9,405
UnitedHealth Group, Inc. Put¹		8/20/12		52.500		209		12,540

Total Options Purchased (Cost $67,584)								32,385



	Shares

Investment Company—7.0%
Oppenheimer Institutional Money
Market Fund, Cl. E, 0.20%^11,12
(Cost $20,688,419)		20,688,419			20,688,419
Total Investments, at Value (Cost $329,381,252)		115.5	%		340,583,010
Liabilities in Excess of Other Assets		(15.5	)		(45,804,517	)
Net Assets		100.0	%	$	294,778,493

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.

2. 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 $15,445,439 or 5.24% of the Fund’s net assets as of June 29, 2012.

3. Represents the current interest rate for a variable or increasing rate security.

4. Restricted security. The aggregate value of restricted securities as of June 29, 2012 was $1,383,991, which represents 0.47% of the Fund’s net assets. See Note 7 of the accompanying Notes. Information concerning restricted securities is as follows:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation (Depreciation)
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14		7/16/09-2/16/12	$	296,554	$	314,644	$	18,090
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17		2/4/11-2/9/12		289,052		289,494		442
Santander Drive Auto Receivables Trust 2011-S2A, Automobile Receivables Nts., Series 2011-S2A, Cl. D, 3.35%, 6/15/17		5/19/11-11/18/11		201,306		201,658		352
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37		2/24/11-2/23/12		578,689		578,195		(494	)

			$	1,365,601	$	1,383,991	$	18,390

5. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after June 29, 2012. See Note 1 of the accompanying Notes.

6. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans or other receivables. 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 or asset-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. These securities amount to $3,847,410 or 1.31% of the Fund’s net assets as of June 29, 2012.

18	OPPENHEIMER BALANCED FUND/VA

Footnotes to Statement of Investments Continued

7. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $192,845 or 0.07% of the Fund’s net assets as of June 29, 2012.

8. The current amortization rate of the security’s cost basis exceeds the future interest payments currently estimated to be received. Both the amortization rate and interest payments are contingent on future mortgage pre-payment speeds and are therefore subject to change.

9. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $200,717. See Note 6 of the accompanying Notes.

10. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security.

11. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 29, 2012, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		32,784,414		65,254,581		77,350,576		20,688,419

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E					$	20,688,419		$19,442
a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

12. Rate shown is the 7-day yield as of June 29, 2012.


Futures Contracts as of June 29, 2012 are as follows:
Contract Description	Buy/Sell		Number of Contracts		Expiration Date		Value		Unrealized Appreciation (Depreciation)
U.S. Treasury Long Bonds		Sell		4		9/19/12	$	591,875	$	2,512
U.S. Treasury Nts., 2 yr.		Sell		64		9/28/12		14,092,000		10,829
U.S. Treasury Nts., 5 yr.		Sell		45		9/28/12		5,578,594		(6,769	)
U.S. Treasury Nts., 10 yr.		Sell		13		9/19/12		1,733,875		3,789
U.S. Treasury Ultra Bonds		Buy		34		9/19/12		5,672,688		86,004

									$	96,365

See accompanying Notes to Financial Statements.

19	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $308,692,833)	$	319,894,591
Affiliated companies (cost $20,688,419)		20,688,419
		340,583,010
Cash		45,783
Receivables and other assets:
Investments sold (including $32,940,818 sold on a when-issued or delayed delivery basis)		35,930,155
Interest, dividends and principal paydowns		1,280,381
Futures margins		23,933
Shares of beneficial interest sold		22,547
Other		28,635
Total assets		377,914,444
Liabilities
Payables and other liabilities:
Investments purchased (including $77,300,714 purchased on a when-issued or delayed delivery basis)		82,810,594
Shares of beneficial interest redeemed		111,507
Futures margins		95,913
Trustees’ compensation		25,115
Transfer and shareholder servicing agent fees		23,627
Shareholder communications		22,604
Distribution and service plan fees		13,757
Other		32,834
Total liabilities		83,135,951
Net Assets	$	294,778,493
Composition of Net Assets
Par value of shares of beneficial interest	$	25,377
Additional paid-in capital		340,719,229
Accumulated net investment income		2,806,871
Accumulated net realized loss on investments and foreign currency transactions		(60,071,154	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		11,298,170
Net Assets	$	294,778,493
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $219,712,673 and 18,862,204 shares of beneficial interest outstanding)		$11.65
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $75,065,820 and 6,514,816 shares of beneficial interest outstanding)		$11.52

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

20	OPPENHEIMER BALANCED FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Interest	$	2,085,837
Dividends:
Unaffiliated companies		1,647,142
Affiliated companies		19,442
Total investment income		3,752,421
Expenses
Management fees		883,223
Distribution and service plan fees—Service shares		96,577
Transfer and shareholder servicing agent fees:
Non-Service shares		79,963
Service shares		38,561
Shareholder communications:
Non-Service shares		6,267
Service shares		3,191
Custodian fees and expenses		14,910
Trustees’ compensation		6,315
Administration service fees		750
Other		44,564
Total expenses		1,174,321
Less waivers and reimbursements of expenses		(282,010	)
Net expenses		892,311
Net Investment Income		2,860,110
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments from unaffiliated companies		4,046,782
Closing and expiration of futures contracts		165,985
Foreign currency transactions		710,919
Net realized gain		4,923,686
Net change in unrealized appreciation/depreciation on:
Investments		216,639
Translation of assets and liabilities denominated in foreign currencies		(684,363	)
Futures contracts		53,563
Net change in unrealized appreciation/depreciation		(414,161	)

Net Increase in Net Assets Resulting from Operations	$	7,369,635

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

21	OPPENHEIMER BALANCED FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	2,860,110		$	3,643,156
Net realized gain		4,923,686			9,575,957
Net change in unrealized appreciation/depreciation		(414,161	)		(11,457,323	)
Net increase in net assets resulting from operations		7,369,635			1,761,790
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(3,027,836	)		(3,355,682	)
Service shares		(910,776	)		(1,802,307	)
		(3,938,612	)		(5,157,989	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		90,423,821			(20,174,392	)
Service shares		(5,010,412	)		(10,697,145	)
		85,413,409			(30,871,537	)
Net Assets
Total increase (decrease)		88,844,432			(34,267,736	)
Beginning of period		205,934,061			240,201,797
End of period (including accumulated net investment income of $2,806,871 and $3,885,373, respectively)	$	294,778,493		$	205,934,061

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

22	OPPENHEIMER BALANCED FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,						Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	11.30		$	11.47		$	10.30		$	8.45		$	16.41		$	17.69
Income (loss) from investment operations:
Net investment income²		.15			.20			.23			.25			.41			.43
Net realized and unrealized gain (loss)		.36			(.11	)		1.09			1.60			(7.03	)		.19
Total from investment operations		.51			.09			1.32			1.85			(6.62	)		.62
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.16	)		(.26	)		(.15	)		—			(.39	)		(.46	)
Distributions from net realized gain		—			—			—			—			(.95	)		(1.44	)
Total dividends and/or distributions to shareholders		(.16	)		(.26	)		(.15	)		—			(1.34	)		(1.90	)
Net asset value, end of period	$	11.65		$	11.30		$	11.47		$	10.30		$	8.45		$	16.41
Total Return, at Net Asset Value³	4.53%			0.72%			12.91%			21.89%			(43.47)%			3.79%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$219,712			$128,383			$150,622			$159,797			$169,621			$385,948
Average net assets (in thousands)		$161,170			$141,848			$151,620			$159,013			$295,669			$418,103
Ratios to average net assets:⁴
Net investment income		2.51	%		1.70	%		2.13	%		2.71	%		3.14	%		2.55	%
Total expenses⁵		0.90	%		0.91	%		0.91	%		0.89	%		0.76	%		0.75	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.67	%		0.67	%		0.65	%		0.60	%		0.67	%		0.73	%
Portfolio turnover rate⁶		62	%		102	%		54	%		87	%		67	%		68	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.91	%
Year Ended December 30, 2011	0.93	%
Year Ended December 31, 2010	0.92	%
Year Ended December 31, 2009	0.91	%
Year Ended December 31, 2008	0.76	%
Year Ended December 31, 2007	0.75	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	260,922,077	$	266,102,858
Year Ended December 30, 2011	$	450,804,195	$	453,759,282
Year Ended December 31, 2010	$	412,930,431	$	414,511,903
Year Ended December 31, 2009	$	504,698,365	$	520,212,670
Year Ended December 31, 2008	$	474,582,075	$	434,587,487
Year Ended December 31, 2007	$	296,201,319	$	315,527,720

See accompanying Notes to Financial Statements.

23	OPPENHEIMER BALANCED FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	11.17		$	11.35		$	10.19		$	8.38		$	16.28		$	17.57
Income (loss) from investment operations:
Net investment income²		.13			.16			.20			.22			.37			.38
Net realized and unrealized gain (loss)		.36			(.11	)		1.08			1.59			(6.97	)		.19
Total from investment operations		.49			.05			1.28			1.81			(6.60	)		.57
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.14	)		(.23	)		(.12	)		—			(.35	)		(.42	)
Distributions from net realized gain		—			—			—			—			(.95	)		(1.44	)
Total dividends and/or distributions to shareholders		(.14	)		(.23	)		(.12	)		—			(1.30	)		(1.86	)
Net asset value, end of period	$	11.52		$	11.17		$	11.35		$	10.19		$	8.38		$	16.28
Total Return, at Net Asset Value³	4.40%			0.38%			12.68%			21.60%			(43.62)%			3.49%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$75,066			$77,551			$89,580			$88,746			$ 68,798			$121,399
Average net assets (in thousands)		$77,672			$85,157			$87,280			$77,101			$100,164			$117,012
Ratios to average net assets:⁴
Net investment income		2.19	%		1.45	%		1.87	%		2.42	%		2.90	%		2.30	%
Total expenses⁵		1.16	%		1.16	%		1.16	%		1.15	%		1.01	%		1.00	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.92	%		0.92	%		0.90	%		0.85	%		0.92	%		0.98	%
Portfolio turnover rate⁶		62	%		102	%		54	%		87	%		67	%		68	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.17	%
Year Ended December 30, 2011	1.18	%
Year Ended December 31, 2010	1.17	%
Year Ended December 31, 2009	1.17	%
Year Ended December 31, 2008	1.01	%
Year Ended December 31, 2007	1.00	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	260,922,077	$	266,102,858
Year Ended December 30, 2011	$	450,804,195	$	453,759,282
Year Ended December 31, 2010	$	412,930,431	$	414,511,903
Year Ended December 31, 2009	$	504,698,365	$	520,212,670
Year Ended December 31, 2008	$	474,582,075	$	434,587,487
Year Ended December 31, 2007	$	296,201,319	$	315,527,720

See accompanying Notes to Financial Statements.

24	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Balanced Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, an open end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek high total investment return, which includes current income and capital appreciation. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

Securities on a When-Issued or Delayed Delivery Basis. The Fund may purchase securities on a “when-issued” basis, and may purchase or sell securities on a “delayed delivery” basis. “When-issued” or “delayed delivery” refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund’s net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.

As of June 29, 2012, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions
Purchased securities	$	77,300,714
Sold securities		32,940,818

The Fund may enter into “forward roll” transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price.

25	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

Forward roll transactions may be deemed to entail embedded leverage since the Fund purchases mortgage-related securities with extended settlement dates rather than paying for the securities under a normal settlement cycle. This embedded leverage increases the Fund’s market value of investments relative to its net assets which can incrementally increase the volatility of the Fund’s performance. Forward roll transactions can be replicated over multiple settlement periods.

Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; and counterparty credit risk.

Foreign Currency Translation. The Fund’s accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Directors.

Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates.

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.

26	OPPENHEIMER BALANCED FUND/VA

During the fiscal year ended December 30, 2011, the Fund utilized $15,143,099 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $6,584,156. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2016	$	13,408,759
2017		44,728,707
No expiration		6,584,156

Total	$	64,721,622

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $58,137,466 expiring by 2017 and $1,660,470 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $4,923,686 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	330,311,620
Federal tax cost of other investments		(16,420,021)

Total federal tax cost	$	313,891,599


Gross unrealized appreciation	$	17,360,114
Gross unrealized depreciation		(6,992,359)

Net unrealized appreciation	$	10,367,755

27	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

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 is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

28	OPPENHEIMER BALANCED FUND/VA

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the last sale price of the security reported on the principal exchange on which it is traded, 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 current day’s closing “bid” and “asked” prices, and if not, at the current day’s closing bid price. A security of a foreign issuer traded on a foreign exchange but not listed on a registered U.S. securities exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Fund’s assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Futures contracts and futures options traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund’s assets are valued.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard Inputs Generally Considered by Third-Party Pricing Vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

29	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	17,204,669	$	—	$	—	$	17,204,669
Consumer Staples		14,556,723		—		—		14,556,723
Energy		20,618,462		—		—		20,618,462
Financials		39,177,819		—		—		39,177,819
Health Care		27,131,689		—		—		27,131,689
Industrials		16,720,040		—		—		16,720,040

30	OPPENHEIMER BALANCED FUND/VA


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Common Stocks Continued
Information Technology	$	15,752,024		$	—	$	—	$	15,752,024
Materials		7,091,418			—		—		7,091,418
Telecommunication Services		4,928,552			—		—		4,928,552
Utilities		11,132,759			—		—		11,132,759
Asset-Backed Securities		—			11,966,831		—		11,966,831
Mortgage-Backed Obligations		—			75,335,053		—		75,335,053
U.S. Government Obligations		—			2,385,666		—		2,385,666
Non-Convertible Corporate Bonds and Notes		—			55,860,501		—		55,860,501
Options Purchased		32,385			—		—		32,385
Investment Company		20,688,419			—		—		20,688,419

Total Investments, at Value		195,034,959			145,548,051		—		340,583,010
Other Financial Instruments:
Futures margins		23,933			—		—		23,933

Total Assets	$	195,058,892		$	145,548,051	$	—	$	340,606,943

Liabilities Table
Other Financial Instruments:
Futures margins	$	(95,913	)	$	—	$	—	$	(95,913	)

Total Liabilities	$	(95,913	)	$	—	$	—	$	(95,913	)

Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		129,590		$	1,521,427			252,001		$	2,909,335
Dividends and/or distributions reinvested		261,020			3,027,836			287,056			3,355,682
Acquisition—Note 8		8,473,818			101,940,025			—			—
Redeemed		(1,368,485	)		(16,065,467	)		(2,302,830	)		(26,439,409	)

Net increase (decrease)		7,495,943		$	90,423,821			(1,763,773	)	$	(20,174,392	)


Service Shares
Sold		171,239		$	1,998,739			423,625		$	4,837,026
Dividends and/or distributions reinvested		79,405			910,776			155,505			1,802,307
Redeemed		(679,744	)		(7,919,927	)		(1,531,184	)		(17,336,478	)

Net decrease		(429,100	)	$	(5,010,412	)		(952,054	)	$	(10,697,145	)

31	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities		$143,910,985		$133,900,674
U.S. government and government agency obligations		2,295,043		1,154,343
To Be Announced (TBA) mortgage-related securities		260,922,077		266,102,858

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan (the “Plan”) in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares to pay OppenheimerFunds Distributor, Inc. (the “Distributor”), for distribution related services, personal service and account maintenance for the Fund’s Service shares. Under the Plan, payments are made periodically at an annual rate of 0.25% of the daily net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to waive a portion of the advisory fee and/or reimburse certain expenses so that the “Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses” will not exceed 0.67% of average annual net assets for Non-Service shares and 0.92% of average annual net assets for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $182,391 and $90,790 for Non-Service and Service shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

32	OPPENHEIMER BALANCED FUND/VA

6. Risk Exposures and the Use of Derivative Instruments

The Fund’s investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors.

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.

Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument’s price over a defined time period. Large increases or decreases in a financial instrument’s price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

Risks of Investing in Derivatives. The Fund’s use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.

Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund’s performance.

33	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.

Credit Related Contingent Features. The Fund’s agreements with derivative counterparties have several credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund’s net assets and or a percentage decrease in the Fund’s Net Asset Value or NAV. The contingent features are established within the Fund’s International Swap and Derivatives Association, Inc. master agreements which govern certain positions in swaps, over-the-counter options and swaptions, and forward currency exchange contracts for each individual counterparty.

Valuations of derivative instruments as of June 29, 2012 are as follows:

Asset Derivatives

Liability Derivatives

Derivatives Not
Accounted for as
Hedging Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Interest rate contracts

Futures margins

23,933

Futures margins

95,913

Equity contracts

Investments, at value

32,385

Total

56,318

95,913

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.

**Amounts relate to purchased options.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Closing and expiration of futures contracts		Foreign currency transactions			Total
Foreign exchange contracts	$	—	$	(19,339	)	$	(19,339	)
Interest rate contracts		165,985		—			165,985

Total	$	165,985	$	(19,339	)	$	146,646

34	OPPENHEIMER BALANCED FUND/VA


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments*			Futures contracts		Translation of assets and liabilities denominated in foreign currencies			Total
Equity contracts	$	(35,199	)	$	—	$	—		$	(35,199	)
Foreign exchange contracts		—			—		(20,189	)		(20,189	)
Interest rate contracts		—			53,563		—			53,563

Total	$	(35,199	)	$	53,563	$	(20,189	)	$	(1,825	)

*Includes purchased option contracts and purchased swaption contracts, if any.

Foreign Currency Exchange Contracts

The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.

Forward contracts are reported on a schedule following the Statement of Investments. The unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.

The Fund has purchased and sold certain forward foreign currency exchange contracts of different currencies in order to acquire currencies to pay for or sell currencies to acquire related foreign securities purchase and sale transactions, respectively, or to convert foreign currencies to U.S. dollars from related foreign securities transactions. These foreign currency exchange contracts are negotiated at the current spot exchange rate with settlement typically within two business days thereafter.

During the six months ended June 29, 2012, the Fund had daily average contract amounts on forward foreign currency contracts to sell of $112,408.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty will default.

As of June 29, 2012, the Fund had no outstanding forward contracts.

Futures Contracts

A futures contract is a commitment to buy or sell a specific amount of a financial instrument, or currency, at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts.

Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund’s assets are valued.

Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses.

35	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $6,927,496 and $19,752,098 on futures contracts purchased and sold, respectively.

Additional associated risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities.

Option Activity

The Fund may buy and sell put and call options, or write put and call options. 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. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The Fund has purchased put options on individual equity securities and/or equity indexes to decrease exposure to equity risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $4,626 on purchased put options.

Options written, if any, are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities. Securities held in collateralized accounts to cover potential obligations with respect to outstanding written options are noted in the Statement of Investments.

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 that there may be an illiquid market where the Fund is unable to close the contract.

Additional associated risks to the Fund include counterparty credit risk for over-the-counter options and liquidity risk.

As of June 29, 2012, the Fund had no outstanding written options.

7. Restricted Securities

As of June 29, 2012, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.

36	OPPENHEIMER BALANCED FUND/VA

8. Acquisition of Total Return Portfolio

On April 26, 2012, the Fund acquired all of the net assets of Total Return Portfolio, pursuant to an Agreement and Plan of Reorganization approved by the Total Return Portfolio shareholders on April 20, 2012. The exchange qualified as a tax-free reorganization for federal income tax purposes. The purpose of this acquisition is to combine two funds with similar investment objectives, strategies and risks to allow shareholders to benefit from greater asset growth potential, as well as lowered total expenses.

The transaction qualified as a tax-free reorganization, (the “merger”) for federal income tax purposes allowing the Fund to use the original cost basis of the investments received to calculate subsequent gains and losses for tax reporting purposes.

Details of the merger are shown in the following table:


	Exchange Ratio to One Share of the Total Return Portfolio		Shares of Beneficial Interest Issued by the Fund		Value of Issued Shares of Beneficial Interest		Combined Net Assets on April 26, 2012¹
Class A		0.1049625104		8,473,818	$	101,940,025	$	230,906,772

1. The net assets acquired included net unrealized appreciation of $6,091,953 and an unused capital loss carryforward of $46,084,065, potential utilization subject to tax limitations.

Had the merger occurred at the beginning of the reporting period, the Fund’s Statement of Operations would have been adjusted to the following amounts:


Net investment income	$	3,321,068
Net loss on investments		10,291,352
Net increase in net assets resulting from operations		13,612,420

9. Pending Litigation

37	OPPENHEIMER BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

9. Pending Litigation Continued

filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

38	OPPENHEIMER BALANCED FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Balanced Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

17,193,173

948,698

617,252

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

17,332,147

905,677

521,299

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

17,095,479

944,228

719,415

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

17,091,961

876,674

790,488

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

17,229,468

973,504

556,151

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

17,130,450

1,006,646

622,027

N/A

39	OPPENHEIMER BALANCED FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited / Continued

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

17,127,270

1,009,929

621,924

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

17,208,411

948,414

602,297

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

17,078,696

974,462

705,965

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

17,117,489

990,369

651,265

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

40	OPPENHEIMER BALANCED FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30^th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

41	OPPENHEIMER BALANCED FUND/VA

OPPENHEIMER BALANCED FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Mitch Williams, Vice President Krishna Memani, Vice President Peter A. Strzalkowski, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

Before investing, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Capital Appreciation Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER CAPITAL APPRECIATION FUND/VA

Portfolio Managers: Julie Van Cleave, CFA and Michael Kotlarz¹


Cumulative Total Returns For the 6-Month Period Ended 6/29/12²
Non-Service Shares	8.24%
Service Shares	8.07
Average Annual Total Returns For the Periods Ended 6/29/12²

	1-Year	5-Year	10-Year
Non-Service Shares	1.45%	–0.77%	4.23%
Service Shares	1.19	–1.02	3.97
Expense Ratios For the Fiscal Year Ended 12/30/11²
Non-Service Shares	0.80%
Service Shares	1.05

1. Became a co-portfolio manager June 29, 2012.

Sector Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of common stocks.


Top Ten Common Stock Holdings
Apple, Inc.		8.6%
QUALCOMM, Inc.		3.9
Google, Inc., Cl. A		2.8
McDonald’s Corp.		2.2
Costco Wholesale Corp.		2.2
Allergan, Inc.		2.0
Walt Disney Co. (The)		1.9
Coca-Cola Co. (The)		1.8
eBay, Inc.		1.8
Union Pacific Corp.		1.7

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FUND PERFORMANCE DISCUSSION

The Fund’s Non-Service shares returned 8.24% during the six-month reporting period. In comparison, the Fund underperformed the Russell 1000 Growth Index (the “Index”), which returned 10.08%, and the S&P 500 Index, which returned 9.49%². Relative to the Index, the Fund underperformed primarily due to weaker stock selection within the consumer discretionary, information technology and industrials sectors. The Fund outperformed the Index within the health care and materials sectors due to stronger stock selection.

Economic and Market Environment

The period began during a time of improved market sentiment in which the U.S. managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets over the first three months of 2012. The rebound across equities gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (“LTRO”) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

Fund Review

During the reporting period, information technology stock Apple, Inc., the top holding of the Fund at period end, was the Fund’s strongest performing holding. Apple continued to out-execute its peers, and its success at innovation and highly recognizable brand led to global growth and share gains across its top revenue producing products—iPhones, iPads and Mac PCs. Also contributing to performance within information technology was eBay, Inc. eBay provides online marketplaces, including its flagship e-commerce platform eBay.com, as well as StubHub, Half.com and Shopping.com. Online payment services are provided by PayPal and Bill Me Later. The continued growth of PayPal played a large role in the positive performance of eBay this period.

Other positive contributors to Fund performance included pharmaceutical stocks Vertex Pharmaceuticals, Inc. and Novo Nordisk AS. Vertex released promising data from a Phase 2 study, which showed that combining experimental drug VX-809 with its recently FDA approved drug Kalydeco led to improvements in lung function in adults with cystic fibrosis. This announcement significantly boosted the company’s stock price in May. Novo Nordisk’s stock was driven largely by increased sales of Victoza, which is a diabetes drug.

The most significant detractor from performance was information technology holding Google, Inc. Google’s stock underperformed after reporting fourth quarter results. The U.S. dollar’s appreciation against the euro also negatively impacted results, as it impacted the company’s translation of euro revenues and profits into U.S. dollars. We remain optimistic about Google’s outlook for growth of both revenues and earnings. Juniper Networks, Inc., another information technology stock, also detracted from performance. Juniper, which offers network infrastructure solutions, experienced volatility this period as it reported a decline in revenue.

3	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FUND PERFORMANCE DISCUSSION

Outside of the information technology sector, McDonald’s Corp. and Joy Global, Inc. hurt the Fund’s performance this period. McDonald’s stock declined due partly to a decrease in sales in Asian markets, including Japan and China, in the volatile market environment. Joy Global, a manufacturer of mining equipment, experienced a decrease in orders due to a weak coal market in the U.S.

Outlook

Uncertainty about the Eurozone crisis, the U.S. “fiscal cliff” and the risk of a hard landing in China continues to weigh on the global economy. Although the U.S. economy continues to grow at a slow pace, it has proven to be more flexible and resilient in comparison to many other developed nations.

Looking forward, we expect to see significantly greater differentiation in valuations to occur in the equity market with better valuations awarded to companies with high quality earnings. We employ a disciplined investment process that combines strategic, top-down sector analysis with bottom-up fundamental research. We continue to focus on companies with consistent revenue and earnings growth, which we expect will benefit as investors seek to invest in companies with the brightest prospects.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,082.40	$	4.13
Service Shares		1,000.00		1,080.70		5.42

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,020.77		4.01
Service Shares		1,000.00		1,019.53		5.26


Class	Expense Ratios
Non-Service shares		0.80	%
Service shares		1.05

5	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Shares		Value

Common Stocks—99.5%
Consumer Discretionary—15.4%
Auto Components—0.9%
Johnson Controls, Inc.		303,850	$	8,419,684
Hotels, Restaurants & Leisure—3.4%
McDonald’s Corp.		235,790		20,874,489
Yum! Brands, Inc.		165,630		10,669,885

				31,544,374
Internet & Catalog Retail—1.7%
Amazon.com, Inc.¹		70,984		16,209,196
Media—1.9%
Walt Disney Co. (The)		372,640		18,073,040
Specialty Retail—4.2%
Bed Bath & Beyond, Inc.¹		38,520		2,380,536
O’Reilly Automotive, Inc.¹		177,940		14,906,034
Tiffany & Co.		138,750		7,346,813
TJX Cos., Inc. (The)		343,960		14,766,203

				39,399,586
Textiles, Apparel & Luxury Goods—3.3%
Coach, Inc.		189,620		11,088,978
Nike, Inc., Cl. B		141,620		12,431,404
Ralph Lauren Corp.		56,030		7,847,562

				31,367,944
Consumer Staples—12.8%
Beverages—4.5%
Brown-Forman Corp., Cl. B		121,130		11,731,441
Coca-Cola Co. (The)		219,570		17,168,178
SABMiller plc		340,520		13,677,739

				42,577,358
Food & Staples Retailing—2.2%
Costco Wholesale Corp.		214,980		20,423,100
Food Products—2.5%
Mead Johnson Nutrition Co., Cl. A		123,420		9,936,544
Nestle SA		232,803		13,870,315

				23,806,859
Household Products—1.4%
Colgate-Palmolive Co.		125,250		13,038,525
Personal Products—1.0%
Estee Lauder Cos., Inc. (The), Cl. A		179,580		9,718,870
Tobacco—1.2%
Philip Morris International, Inc.		130,610		11,397,029
Energy—9.8%
Energy Equipment & Services—4.5%
Cameron International Corp.¹		211,270		9,023,342
Ensco plc, Cl. A		179,530		8,432,524


	Shares		Value

Energy Equipment & Services Continued
National Oilwell Varco, Inc.		165,540	$	10,667,398
Schlumberger Ltd.		229,510		14,897,494

				43,020,758
Oil, Gas & Consumable Fuels—5.3%
Apache Corp.		24,600		2,162,094
Chevron Corp.		141,510		14,929,305
ConocoPhillips		116,460		6,507,785
Noble Energy, Inc.		102,070		8,657,577
Occidental Petroleum Corp.		180,650		15,494,351
Phillips 66¹		58,880		1,957,171

				49,708,283
Financials—1.9%
Commercial Banks—0.7%
Standard Chartered plc		309,610		6,749,738
Consumer Finance—1.2%
American Express Co.		189,350		11,022,064
Health Care—12.8%
Biotechnology—2.4%
Alexion Pharmaceuticals, Inc.¹		67,650		6,717,645
Vertex Pharmaceuticals, Inc.¹		285,790		15,981,377

				22,699,022
Health Care Equipment & Supplies—1.3%
Baxter International, Inc.		236,470		12,568,381
Health Care Technology—0.7%
Cerner Corp.¹		80,000		6,612,800
Life Sciences Tools & Services—0.8%
Mettler-Toledo International, Inc.¹		47,620		7,421,577
Pharmaceuticals—7.6%
Allergan, Inc.		208,280		19,280,480
Bristol-Myers Squibb Co.		442,620		15,912,189
Novo Nordisk AS, Cl. B		111,030		16,035,840
Perrigo Co.		70,740		8,342,368
Roche Holding AG		69,001		11,893,340

				71,464,217
Industrials—14.4%
Aerospace & Defense—3.2%
Precision Castparts Corp.		76,440		12,573,616
TransDigm Group, Inc.¹		43,280		5,812,504
United Technologies Corp.		163,380		12,340,091

				30,726,211
Air Freight & Logistics—1.4%
United Parcel Service, Inc., Cl. B		165,280		13,017,453
Industrial Conglomerates—1.6%
Danaher Corp.		286,080		14,899,046

6	OPPENHEIMER CAPITAL APPRECIATION FUND/VA


	Shares		Value

Machinery—5.2%
Caterpillar, Inc.		129,660	$	11,009,431
Cummins, Inc.		78,560		7,613,250
Deere & Co.		122,240		9,885,549
Joy Global, Inc.		156,127		8,857,085
Parker-Hannifin Corp.		150,420		11,564,290

				48,929,605
Road & Rail—3.0%
Hunt (J.B.) Transport Services, Inc.		108,490		6,466,004
Kansas City Southern, Inc.		80,250		5,582,190
Union Pacific Corp.		136,880		16,331,153

				28,379,347
Information Technology—28.3%
Communications Equipment—4.6%
Juniper Networks, Inc.¹		431,650		7,040,212
QUALCOMM, Inc.		654,800		36,459,257

				43,499,469
Computers & Peripherals—8.9%
Apple, Inc.¹		138,190		80,702,960
SanDisk Corp.¹		101,070		3,687,034

				84,389,994
Electronic Equipment & Instruments—1.0%
Corning, Inc.		745,330		9,637,117
Internet Software & Services—4.6%
eBay, Inc.¹		407,620		17,124,116
Google, Inc., Cl. A¹		45,070		26,143,755

				43,267,871
IT Services—3.8%
International Business Machines Corp.		53,590		10,481,132
Teradata Corp.¹		184,980		13,320,410
Visa, Inc., Cl. A		98,017		12,117,842

				35,919,384


	Shares			Value

Semiconductors & Semiconductor Equipment—2.1%
Broadcom Corp., Cl. A		345,290		$	11,670,802
Texas Instruments, Inc.		272,690			7,823,476

					19,494,278
Software—3.3%
Intuit, Inc.		206,890			12,278,922
Salesforce.com, Inc.¹		56,290			7,782,655
Vmware, Inc., Cl. A¹		116,320			10,589,773

					30,651,350
Materials—4.1%
Chemicals—4.1%
Ecolab, Inc.		185,470			12,710,257
Monsanto Co.		123,820			10,249,820
Praxair, Inc.		149,062			16,207,511

					39,167,588
Total Common Stocks (Cost $642,633,539)					939,221,118
Investment Company—0.3%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^2,3
(Cost $2,421,103)		2,421,103			2,421,103
Total Investments, at Value (Cost $645,054,642)		99.8	%		941,642,221


Other Assets Net of Liabilities	0.2			1,820,679
Net Assets	100.0	%	$	943,462,900

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		8,136,365		80,942,823		86,658,085		2,421,103

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$2,421,103		$4,516
a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

See accompanying Notes to Financial Statements.

7	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $642,633,539)	$	939,221,118
Affiliated companies (cost $2,421,103)		2,421,103
		941,642,221
Cash		14
Receivables and other assets:
Dividends		2,233,045
Investments sold		924,301
Other		53,891
Total assets		944,853,472
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		619,416
Investments purchased		457,474
Shareholder communications		108,692
Transfer and shareholder servicing agent fees		76,705
Distribution and service plan fees		66,385
Trustees’ compensation		42,790
Other		19,110
Total liabilities		1,390,572
Net Assets	$	943,462,900
Composition of Net Assets
Par value of shares of beneficial interest	$	22,143
Additional paid-in capital		891,694,025
Accumulated net investment income		1,676,303
Accumulated net realized loss on investments and foreign currency transactions		(246,651,011	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		296,721,440
Net Assets	$	943,462,900
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $573,554,436 and 13,421,137 shares of beneficial interest outstanding)		$42.74
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $369,908,464 and 8,721,378 shares of beneficial interest outstanding)		$42.41

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

8	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $229,184)	$	7,562,326
Affiliated companies		4,516
Interest		395
Total investment income		7,567,237
Expenses
Management fees		3,431,960
Distribution and service plan fees—Service shares		485,757
Transfer and shareholder servicing agent fees:
Non-Service shares		308,009
Service shares		194,360
Shareholder communications:
Non-Service shares		11,368
Service shares		6,778
Trustees’ compensation		26,745
Custodian fees and expenses		13,420
Administration service fees		750
Other		42,145
Total expenses		4,521,292
Less waivers and reimbursements of expenses		(18,543	)
Net expenses		4,502,749
Net Investment Income		3,064,488
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments from unaffiliated companies		51,058,068
Foreign currency transactions		891,402
Net realized gain		51,949,470
Net change in unrealized appreciation/depreciation on:
Investments		33,083,149
Translation of assets and liabilities denominated in foreign currencies		(3,746,717	)
Net change in unrealized appreciation/depreciation		29,336,432

Net Increase in Net Assets Resulting from Operations	$	84,350,390

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

9	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	3,064,488		$	5,322,690
Net realized gain		51,949,470			59,047,435
Net change in unrealized appreciation/depreciation		29,336,432			(73,931,651	)
Net increase (decrease) in net assets resulting from operations		84,350,390			(9,561,526	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(3,878,050	)		(2,685,368	)
Service shares		(1,503,957	)		(448,818	)
		(5,382,007	)		(3,134,186	)
Beneficial Interest Transactions
Net decrease in net assets resulting from beneficial interest transactions:
Non-Service shares		(113,871,807	)		(125,913,455	)
Service shares		(34,831,884	)		(43,268,026	)
		(148,703,691	)		(169,181,481	)
Net Assets
Total decrease		(69,735,308	)		(181,877,193	)
Beginning of period		1,013,198,208			1,195,075,401
End of period (including accumulated net investment income of $1,676,303 and $3,993,822, respectively)	$	943,462,900		$	1,013,198,208

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,						Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$39.75			$40.35			$36.94			$25.67			$47.18			$41.43
Income (loss) from investment operations:
Net investment income²		.15			.23			.11			.09			.10			.07
Net realized and unrealized gain (loss)		3.13			(.69	)		3.36			11.27			(21.55	)		5.78
Total from investment operations		3.28			(.46	)		3.47			11.36			(21.45	)		5.85
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.29	)		(.14	)		(.06	)		(.09	)		(.06	)		(.10	)
Net asset value, end of period		$42.74			$39.75			$40.35			$36.94			$25.67			$47.18
Total Return, at Net Asset Value³	8.24%			(1.15)%			9.42%			44.52%			(45.52)%			14.15%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	573,554		$	637,868		$	771,086		$	1,074,190		$	829,931		$	1,631,791
Average net assets (in thousands)	$	619,180		$	713,770		$	976,242		$	927,670		$	1,256,525		$	1,631,686
Ratios to average net assets:⁴
Net investment income		0.71	%		0.57	%		0.31	%		0.29	%		0.25	%		0.15	%
Total expenses⁵		0.80	%		0.80	%		0.79	%		0.78	%		0.66	%		0.65	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80	%		0.80	%		0.79	%		0.78	%		0.66	%		0.65	%
Portfolio turnover rate		15	%		27	%		58	%		46	%		67	%		59	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.80	%
Year Ended December 30, 2011	0.80	%
Year Ended December 31, 2010	0.79	%
Year Ended December 31, 2009	0.78	%
Year Ended December 31, 2008	0.66	%
Year Ended December 31, 2007	0.65	%

See accompanying Notes to Financial Statements.

11	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,						Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$39.40			$39.99			$36.64			$25.42			$46.78			$41.09
Income (loss) from investment operations:
Net investment income (loss)²		.10			.13			.02			.01			—³			(.05	)
Net realized and unrealized gain (loss)		3.08			(.68	)		3.33			11.21			(21.36	)		5.74
Total from investment operations		3.18			(.55	)		3.35			11.22			(21.36	)		5.69
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.17	)		(.04	)		—			—³			—			—³
Net asset value, end of period		$42.41			$39.40			$39.99			$36.64			$25.42			$46.78
Total Return, at Net Asset Value⁴	8.07%			(1.37)%			9.15%			44.15%			(45.66)%			13.86%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	369,909		$	375,330		$	423,989		$	444,170		$	313,931		$	546,887
Average net assets (in thousands)	$	390,710		$	407,413		$	427,640		$	368,634		$	454,558		$	510,874
Ratios to average net assets:⁵
Net investment income (loss)		0.46	%		0.32	%		0.06	%		0.03	%		0.00	%⁶		(0.10	)%
Total expenses⁷		1.05	%		1.05	%		1.04	%		1.04	%		0.91	%		0.91	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05	%		1.05	%		1.04	%		1.03	%		0.91	%		0.91	%
Portfolio turnover rate		15	%		27	%		58	%		46	%		67	%		59	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Less than $0.005 per share.

4. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

5. Annualized for periods less than one full year.

6. Less than 0.005%.

7. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.05	%
Year Ended December 30, 2011	1.05	%
Year Ended December 31, 2010	1.04	%
Year Ended December 31, 2009	1.04	%
Year Ended December 31, 2008	0.91	%
Year Ended December 31, 2007	0.91	%

See accompanying Notes to Financial Statements.

12	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Capital Appreciation Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek capital appreciation by investing in securities of well-known, established companies. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

13	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

During the fiscal year ended December 30, 2011, the Fund utilized $62,322,990 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $6,794,494. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2016	$	109,362,611
2017		180,633,172
No expiration		6,794,494

Total	$	296,790,277

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $244,840,807 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $51,949,470 capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	647,632,126


Gross unrealized appreciation	$	313,078,311
Gross unrealized depreciation		(19,068,216)

Net unrealized appreciation	$	294,010,095

14	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

15	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Forward foreign currency exchange contracts are valued utilizing current and forward currency rates obtained from third party pricing services. When the settlement date of a contract is an interim date for which a quotation is not available, interpolated values are derived using the nearest dated forward currency rate.

16	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard Inputs Generally Considered by Third-Party Pricing Vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

17	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	145,013,824	$	—	$	—	$	145,013,824
Consumer Staples		107,284,002		13,677,739		—		120,961,741
Energy		92,729,041		—		—		92,729,041
Financials		11,022,064		6,749,738		—		17,771,802
Health Care		120,765,997		—		—		120,765,997
Industrials		135,951,662		—		—		135,951,662
Information Technology		266,859,463		—		—		266,859,463
Materials		39,167,588		—		—		39,167,588
Investment Company		2,421,103		—		—		2,421,103

Total Assets	$	921,214,744	$	20,427,477	$	—	$	941,642,221

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		296,805		$	12,887,816			1,249,985		$	50,511,923
Dividends and/or distributions reinvested		89,832			3,878,050			63,634			2,685,368
Redeemed		(3,011,413	)		(130,637,673	)		(4,379,711	)		(179,110,746	)

Net decrease		(2,624,776	)	$	(113,871,807	)		(3,066,092	)	$	(125,913,455	)


Service Shares
Sold		114,021		$	4,865,455			696,209		$	28,336,802
Dividends and/or distributions reinvested		35,098			1,503,957			10,709			448,818
Redeemed		(954,473	)		(41,201,296	)		(1,782,789	)		(72,053,646	)

Net decrease		(805,354	)	$	(34,831,884	)		(1,075,871	)	$	(43,268,026	)

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	151,643,318	$	296,560,637

18	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $10,188 and $6,354 for Non-Service and Service shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Risk Exposures and the Use of Derivative Instruments

19	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

20	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Foreign currency transactions
Foreign exchange contracts		$58,014

Foreign Currency Exchange Contracts

The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.

During the six months ended June 29, 2012, the Fund had daily average contract amounts on forward foreign currency contracts to buy and sell of $58,057 and $860,324 respectively.

As of June 29, 2012, the Fund had no outstanding forward contracts.

7. Pending Litigation

21	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

7. Pending Litigation Continued

in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

22	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Capital Appreciation Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

21,720,185

1,450,559

973,654

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

21,878,439

1,451,349

814,610

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

21,549,511

1,451,652

1,113,235

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

21,640,361

1,525,559

978,478

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

21,660,498

1,503,758

980,142

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

21,558,859

1,529,520

1,056,019

N/A

23	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited / Continued

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

21,672,633

1,492,021

979,743

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

21,704,774

1,499,706

939,919

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

21,337,152

1,672,734

1,134,512

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

21,563,288

1,482,324

1,098,787

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

24	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

25	OPPENHEIMER CAPITAL APPRECIATION FUND/VA

OPPENHEIMER CAPITAL APPRECIATION FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Julie Van Cleave, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Core Bond Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Fund Allocations

Financial Statements

LOGO

OPPENHEIMER CORE BOND FUND/VA

Portfolio Managers: Krishna Memani and Peter A. Strzalkowski, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	4.95%
Service Shares	4.78
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	9.39%	–2.67%	1.43%
Service Shares	8.98	–2.91	1.16
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.79%		0.77%
Service Shares	1.04		1.02


Credit Rating Breakdown	NRSRO Only Total
AAA		59.9	%
AA		2.1
A		8.4
BBB		20.6
BB		5.5
B		0.5
CCC		2.5
CC		0.3
Other Securities		0.2

Total		100.0%

The percentages above are based on the market value of the Fund’s securities as of June 29, 2012, and are subject to change. Except for securities issued or guaranteed by a foreign sovereign, all securities have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest S&P equivalent rating is used. Unrated securities issued or guaranteed by a foreign sovereign are assigned a credit rating equal to the highest NRSRO rating assigned to that foreign sovereign. Fund assets invested in Oppenheimer Institutional Money Market Fund are assigned that fund’s S&P rating, which is currently AAA. For the purposes of this table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories, which include AAA, AA, A and BBB. Unrated securities do not necessarily indicate low credit quality, and may or may not be the equivalent of investment-grade. Please consult the Fund’s prospectus and Statement of Additional Information for further information.


Corporate Bonds & Notes—Top Ten Industries
Insurance		3.9%
Oil, Gas & Consumable Fuels		3.8
Capital Markets		3.4
Commercial Banks		2.7
Diversified Financial Services		2.6
Media		2.3
Diversified Telecommunication Services		2.2
Metals & Mining		1.5
Energy Equipment & Services		1.3
Real Estate Investment Trusts		1.2

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER CORE BOND FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month reporting period, the Fund’s Non-Service shares produced a return of 4.95%. The Fund outperformed its benchmarks, the Barclays Capital U.S. Aggregate Bond Index, the Barclays Capital Credit Index and the Citigroup Broad Investment Grade Bond Index, which produced returns of 2.37%, 4.55% and 2.33%, respectively.¹

Economic and Market Environment

The period began during a time of improved market sentiment in which the United States managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets and historically riskier asset classes over the first three months of 2012. The rebound across risk markets gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (“LTRO”) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

However, the second quarter was a volatile time for global markets. The fear of contagion from the worsening European sovereign debt crisis and a recession across much of Europe drove negative market sentiment, particularly over May and June. Very high unemployment, soaring debt and higher borrowing costs in Greece, Spain and Italy contributed to serious questions over how to implement austerity measures and restructure debt or instead take a different tact and provide some or all of those countries with additional funds. Perhaps most worrisome of all to investors was the possibility of Greece pulling out of the euro and its ramifications for the future of the Eurozone and its common currency. In the U.S., slower than expected first quarter growth also contributed to a sell-off in the U.S. stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. The Federal Reserve announced the continuation of Operation Twist in response to an uneven domestic economic picture; yet, the U.S. housing market appears to be bottoming.

Fund Review

During the period, the Fund’s positive results were driven by its exposure to spread products—credit, mortgage-backed obligations, non-prime asset-backed securities (ABS)—at the expense of government debt. The Fund’s investments in mortgage-backed obligations included residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities, both of which benefited results. Despite bouts of risk aversion, mortgage-backed obligations generally produced positive results as housing in the U.S. began to stabilize. The Fund’s exposure to RMBS included securities guaranteed by government-sponsored enterprises, commonly referred to as agency RMBS, as well as a smaller allocation to RMBS originated by private entities, also known as non-agency RMBS. The Fund also received positive results from its exposure to high yield and investment grade debt.

Outlook

Given the recent spate of weaker economic news globally and the ongoing crisis in Europe, we are cognizant that headwinds exist for risk-based assets. In the U.S., the upcoming congressional and presidential elections may provide some volatility especially given the contentious debate over entitlements, taxes, and the deficit. Markets seemed to welcome Operation Twist, and we believe that the Federal Reserve will respond to any downdraft in domestic economic activity with additional measures such as quantitative easing or outright buying of U.S. mortgages in order to keep the modest revival of the economy on track. Such a macro environment is behind our bias to be overweight domestic spread products at the expense of low-yielding U.S. Treasuries.

3	OPPENHEIMER CORE BOND FUND/VA

FUND PERFORMANCE DISCUSSION Continued

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER CORE BOND FUND/VA

FUND EXPENSE

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service shares	$	1,000.00	$	1,049.50	$	3.76
Service shares		1,000.00		1,047.80		5.02

Hypothetical (5% return before expenses)
Non-Service shares		1,000.00		1,021.07		3.70
Service shares		1,000.00		1,019.83		4.96


Class	Expense Ratios
Non-Service shares		0.74	%
Service shares		0.99

5	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Principal Amount		Value

Asset-Backed Securities—9.7%
AESOP Funding II LLC, Automobile Receivables Nts., Series 2011-1A, Cl. A, 1.85%, 11/20/13¹	$	235,000	$	236,601
Ally Master Owner Trust, Asset-Backed Nts.: Series 2011-1, Cl. A2, 2.15%, 1/15/16		230,000		234,259
Series 2012-2, Cl. A, 0.742%, 3/15/16²		515,000		515,667
Ally Master Owner Trust, Automobile Receivables Nts., Series 2011-4, Cl. A2, 1.54%, 9/15/16		715,000		722,289
American Credit Acceptance Receivables Trust 2012-1, Automobile Receivables Nts., Series 2012-1, Cl. A1, 1.96%, 1/15/14¹		535,206		535,243
AmeriCredit Automobile Receivables Trust 2009-1, Automobile Receivables-Backed Nts., Series 2009-1, Cl. A3, 3.04%, 10/15/13		1,939		1,942
AmeriCredit Automobile Receivables Trust 2010-1, Automobile Receivables-Backed Nts., Series 2010-1, Cl. D, 6.65%, 7/17/17		300,000		324,123
AmeriCredit Automobile Receivables Trust 2010-2, Automobile Receivables-Backed Nts.: Series 2010-2, Cl. C, 4.52%, 10/8/15		430,000		448,933
Series 2010-2, Cl. D, 6.24%, 6/8/16		275,000		297,453
AmeriCredit Automobile Receivables Trust 2011-1, Automobile Receivables-Backed Nts., Series 2011-1, Cl. D, 4.26%, 2/8/17		120,000		127,441
AmeriCredit Automobile Receivables Trust 2011-2, Automobile Receivables-Backed Nts.: Series 2011-2, Cl. A3, 1.61%, 10/8/15		140,000		141,070
Series 2011-2, Cl. B, 2.33%, 3/8/16		440,000		446,838
Series 2011-2, Cl. D, 4%, 5/8/17		525,000		548,995
AmeriCredit Automobile Receivables Trust 2011-4, Automobile Receivables-Backed Nts., Series 2011-4, Cl. D, 4.08%, 7/10/17		650,000		662,432
AmeriCredit Automobile Receivables Trust 2011-5, Automobile Receivables-Backed Nts.: Series 2011-5, Cl. D, 1.55%, 7/8/16		360,000		364,316
Series 2011-5, Cl. D, 5.05%, 12/8/17		435,000		454,654
AmeriCredit Automobile Receivables Trust 2012-1, Automobile Receivables-Backed Nts., Series 2012-1, Cl. D, 4.72%, 3/8/18		425,000		449,280
AmeriCredit Automobile Receivables Trust 2012-2, Automobile Receivables-Backed Nts., Series 2012-2, Cl. D, 3.38%, 4/9/18		695,000		699,741


	Principal Amount		Value

Asset-Backed Securities Continued
Avis Budget Rental Car Funding AESOP LLC, Automobile Receivable Nts.: Series 2011-2A, Cl. A, 2.37%, 11/20/14¹	$	455,000	$	464,117
Series 2012-1A, Cl. A, 2.054%, 8/20/16¹		345,000		348,585
Centre Point Funding LLC, Asset-Backed Nts., Series 2010-1A, Cl. 1, 5.43%, 7/20/15¹		83,924		88,018
Citibank Credit Card Issuance Trust, Credit Card Receivable Nts., Series 2003-C4, Cl. C4, 5%, 6/10/15		310,000		320,651
Citibank Omni Master Trust, Credit Card Receivables: Series 2009-A13, Cl. A13, 5.35%, 8/15/18¹		480,000		524,485
Series 2009-A17, Cl. A17, 4.90%, 11/15/18¹		665,000		726,476
CPS Auto Trust, Automobile Receivable Nts., Series 2012-B, Cl. A, 3.09%, 9/1/19¹		615,000		615,237
Credit Acceptance Auto Loan Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 2.20%, 9/16/19¹		260,000		260,927
DSC Floorplan Master Owner Trust, Automobile Receivable Nts., Series 2011-1, Cl. A, 3.91%, 3/15/16		400,000		410,675
DT Auto Owner Trust 2009-1, Automobile Receivable Nts., Series 2009-1, Cl. A1, 2.98%, 10/15/15¹		43,056		43,121
DT Auto Owner Trust 2011-1A, Automobile Receivable Nts., Series 2011-1A, Cl. C, 3.05%, 8/15/15¹		570,000		571,395
DT Auto Owner Trust 2011-2A, Automobile Receivable Nts., Series 2011-2A, Cl. C, 3.05%, 7/15/13¹		134,000		133,962
DT Auto Owner Trust 2011-3A, Automobile Receivable Nts., Series 2011-3A, Cl. C, 4.03%, 12/15/41¹		435,000		441,690
DT Auto Owner Trust 2012-1A, Automobile Receivable Nts., Series 2012-1A, Cl. A, 1.05%, 1/15/15¹		370,690		370,731
Exeter Automobile Receivables Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 2.02%, 8/15/16¹		306,871		307,073
First Investors Auto Owner Trust 2011-1, Automobile Receivable Nts., Series 2011-1, Cl. A2, 1.47%, 3/16/15		171,893		171,822
Hertz Vehicle Financing LLC, Automobile Receivable Nts., Series 2010-1A, Cl. A1, 2.60%, 2/25/15¹		1,015,000		1,035,624

6	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Asset-Backed Securities Continued
Rental Car Finance Corp., Automobile Receivable Nts., Series 2011-1A, Cl. A1, 2.51%, 2/25/16¹	$	365,000	$	371,163
Santander Drive Auto Receivables Trust 2010-2, Automobile Receivables Nts., Series 2010-2, Cl. A2, 0.95%, 8/15/13		36,227		36,231
Santander Drive Auto Receivables Trust 2010-3, Automobile Receivables Nts., Series 2010-3, Cl. C, 3.06%, 11/15/17		485,000		491,392
Santander Drive Auto Receivables Trust 2010-A, Automobile Receivables Nts., Series 2010-A, Cl. A2, 1.37%, 8/15/13¹		42,467		42,493
Santander Drive Auto Receivables Trust 2010-B, Automobile Receivables Nts., Series 2010-B, Cl. C, 3.02%, 10/17/16¹		470,000		478,432
Santander Drive Auto Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. D, 4.01%, 2/15/17		465,000		474,155
Santander Drive Auto Receivables Trust 2011-4, Automobile Receivables Nts.: Series 2011-4, Cl. A3, 1.64%, 9/15/15		40,000		40,113
Series 2011-4, Cl. B, 2.90%, 5/16/16		180,000		185,397
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17³		377,976		378,974
Santander Drive Auto Receivables Trust 2011-S2A, Automobile Receivables Nts., Series 2011-S2A, Cl. D, 3.35%, 6/15/17³		292,819		292,819
Santander Drive Auto Receivables Trust 2012-2, Automobile Receivables Nts., Series 2012-2, Cl. D, 5%, 2/15/18		515,000		520,745
SNAAC Auto Receivables Trust, Automobile Receivable Nts., Series 2012-1A, Cl. A, 1.78%, 6/15/16¹		350,000		350,190
Westlake Automobile Receivables Trust 2011-1, Automobile Receivables Nts., Series 2011-1, Cl. A3, 1.49%, 6/16/14¹		205,000		205,347
Wheels SPV LLC, Asset-Backed Nts., Series 2012-1, Cl. A2, 1.19%, 3/20/21¹		260,000		260,181

Total Asset-Backed Securities (Cost $18,019,568)				18,173,498


	Principal Amount		Value

Mortgage-Backed Obligations—63.3%
Government Agency—51.9%
FHLMC/FNMA/FHLB/Sponsored—51.5%
Federal Home Loan Mortgage Corp.: 4.50%, 8/1/42⁴	$	3,455,000	$	3,689,832
5%, 12/15/34		16,047		17,365
5.50%, 9/1/39		1,148,484		1,251,316
6%, 5/15/18-10/15/29		2,164,778		2,385,274
6.50%, 4/15/18-4/1/34		502,955		563,393
7%, 8/15/16-10/1/37		585,571		687,111
8%, 4/1/16		134,753		145,408
9%, 8/1/22-5/1/25		54,947		63,666
10.50%, 11/14/20		2,530		3,084
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Series 151, Cl. F, 9%, 5/15/21		14,286		16,431
Series 1674, Cl. Z, 6.75%, 2/15/24		42,040		47,812
Series 2006-11, Cl. PS, 23.667%, 3/25/36²		342,169		495,481
Series 2034, Cl. Z, 6.50%, 2/15/28		4,891		5,599
Series 2042, Cl. N, 6.50%, 3/15/28		14,123		16,173
Series 2043, Cl. ZP, 6.50%, 4/15/28		595,237		686,351
Series 2046, Cl. G, 6.50%, 4/15/28		37,823		43,315
Series 2053, Cl. Z, 6.50%, 4/15/28		6,335		7,261
Series 2066, Cl. Z, 6.50%, 6/15/28		639,075		732,390
Series 2195, Cl. LH, 6.50%, 10/15/29		499,266		573,057
Series 2220, Cl. PD, 8%, 3/15/30		2,541		3,018
Series 2326, Cl. ZP, 6.50%, 6/15/31		138,005		159,019
Series 2461, Cl. PZ, 6.50%, 6/15/32		682,151		787,165
Series 2470, Cl. LF, 1.242%, 2/15/32²		5,847		5,962
Series 2500, Cl. FD, 0.742%, 3/15/32²		135,266		136,523
Series 2526, Cl. FE, 0.642%, 6/15/29²		193,868		194,938
Series 2538, Cl. F, 0.842%, 12/15/32²		704,353		710,833
Series 2551, Cl. FD, 0.642%, 1/15/33²		125,266		126,007
Series 2936, Cl. PE, 5%, 2/1/35		69,000		78,380
Series 3025, Cl. SJ, 23.864%, 8/15/35²		68,864		102,188
Series 3822, Cl. JA, 5%, 6/1/40		51,148		54,438
Series 3848, Cl. WL, 4%, 4/1/40		60,769		64,342
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 205, Cl. IO, 14.04%, 9/1/29⁵		17,675		3,021
Series 206, Cl. IO, 0%, 12/1/29^5,6		221,717		45,824
Series 2074, Cl. S, 57.854%, 7/17/28⁵		3,730		813
Series 2079, Cl. S, 67.037%, 7/17/28⁵		6,599		1,480
Series 2130, Cl. SC, 50.959%, 3/15/29⁵		249,943		50,597
Series 243, Cl. 6, 0.513%, 12/15/32⁵		238,008		51,904
Series 2526, Cl. SE, 44.943%, 6/15/29⁵		8,755		1,839
Series 2531, Cl. ST, 99.999%, 2/15/30⁵		43,079		518
Series 2796, Cl. SD, 65.921%, 7/15/26⁵		398,695		80,430
Series 2802, Cl. AS, 83.838%, 4/15/33⁵		167,068		10,034
Series 2819, Cl. S, 58.469%, 6/15/34⁵		83,280		16,646
Series 2920, Cl. S, 66.684%, 1/15/35⁵		1,506,061		257,479
Series 3004, Cl. SB, 99.999%, 7/15/35⁵		84,138		15,096
Series 3110, Cl. SL, 99.999%, 2/15/26⁵		219,400		30,636
Series 3450, Cl. BI, 12.377%, 5/15/38⁵		973,417		161,530

7	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Continued
Series 3662, Cl. SM, 24.883%, 10/15/32⁵	$	734,995	$	98,054
Series 3736, Cl. SN, 6.506%, 10/15/40⁵		2,074,505		341,561
Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 3.819%, 6/1/26⁷		92,386		80,729
Federal National Mortgage Assn.: 2.50%, 7/1/27⁴		9,185,000		9,466,291
2.74%, 10/1/36²		172,854		184,568
3.50%, 8/1/42⁴		8,545,000		8,961,569
4%, 7/1/27⁴		490,000		521,238
4.50%, 7/1/27⁴		1,405,000		1,506,204
5%, 2/25/22-7/25/22		12,412		13,405
5.50%, 8/1/42⁴		3,014,000		3,286,673
6%, 8/1/42⁴		1,460,000		1,604,403
6.50%, 5/25/17-1/1/34		888,940		961,117
7%, 11/1/17-7/25/35		414,769		464,309
7.50%, 1/1/33		10,249		12,466
8.50%, 7/1/32		16,764		20,841
Federal National Mortgage Assn., 15 yr.: 3%, 7/1/27⁴		13,850,000		14,514,367
3.50%, 7/1/27⁴		1,230,000		1,299,956
Federal National Mortgage Assn., 30 yr.: 4%, 8/1/42⁴		15,145,000		16,093,930
4.50%, 8/1/42⁴		8,455,000		9,065,345
Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Trust 1989-17, Cl. E, 10.40%, 4/25/19		7,836		8,542
Trust 1993-87, Cl. Z, 6.50%, 6/25/23		492,214		562,423
Trust 1998-58, Cl. PC, 6.50%, 10/25/28		388,355		444,896
Trust 1998-61, Cl. PL, 6%, 11/25/28		188,654		211,310
Trust 1999-54, Cl. LH, 6.50%, 11/25/29		327,259		374,845
Trust 2001-44, Cl. QC, 6%, 9/25/16		16,278		17,378
Trust 2001-51, Cl. OD, 6.50%, 10/25/31		24,995		28,924
Trust 2001-74, Cl. QE, 6%, 12/25/31		552,577		621,204
Trust 2002-12, Cl. PG, 6%, 3/25/17		8,472		9,174
Trust 2003-28, Cl. KG, 5.50%, 4/25/23		3,964,000		4,409,479
Trust 2004-101, Cl. BG, 5%, 1/25/20		1,140,542		1,222,061
Trust 2004-9, Cl. AB, 4%, 7/1/17		49,804		49,864
Trust 2006-46, Cl. SW, 23.30%, 6/25/36²		248,696		357,750
Trust 2006-50, Cl. KS, 23.301%, 6/25/36²		358,620		521,043
Trust 2007-42, Cl. A, 6%, 2/1/33		555,952		578,447
Trust 2009-36, Cl. FA, 1.185%, 6/25/37²		483,279		490,779
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-61, Cl. SH, 35.633%, 11/18/31⁵		21,651		4,081
Trust 2001-63, Cl. SD, 33.896%, 12/18/31⁵		7,009		1,275
Trust 2001-65, Cl. S, 34.484%, 11/25/31⁵		543,228		105,703
Trust 2001-68, Cl. SC, 24.647%, 11/25/31⁵		4,604		879


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued
Trust 2001-81, Cl. S, 26.341%, 1/25/32⁵	$	149,112	$	31,474
Trust 2002-28, Cl. SA, 37.895%, 4/25/32⁵		4,245		824
Trust 2002-38, Cl. SO, 52.506%, 4/25/32⁵		10,775		1,987
Trust 2002-39, Cl. SD, 42.779%, 3/18/32⁵		7,125		1,535
Trust 2002-47, Cl. NS, 33.919%, 4/25/32⁵		422,451		84,429
Trust 2002-48, Cl. S, 33.12%, 7/25/32⁵		6,917		1,379
Trust 2002-51, Cl. S, 34.157%, 8/25/32⁵		387,812		77,503
Trust 2002-52, Cl. SD, 40.161%, 9/25/32⁵		501,475		110,879
Trust 2002-52, Cl. SL, 35.895%, 9/25/32⁵		4,388		877
Trust 2002-53, Cl. SK, 40.84%, 4/25/32⁵		24,825		5,554
Trust 2002-56, Cl. SN, 36.686%, 7/25/32⁵		9,431		1,883
Trust 2002-60, Cl. SM, 31.988%, 8/25/32⁵		73,520		12,805
Trust 2002-7, Cl. SK, 32.234%, 1/25/32⁵		33,138		6,147
Trust 2002-77, Cl. BS, 27.475%, 12/18/32⁵		44,200		7,881
Trust 2002-77, Cl. IS, 47.908%, 12/18/32⁵		18,358		4,012
Trust 2002-77, Cl. JS, 22.615%, 12/18/32⁵		71,512		13,001
Trust 2002-77, Cl. SA, 26.199%, 12/18/32⁵		70,305		12,826
Trust 2002-77, Cl. SH, 42.055%, 12/18/32⁵		209,631		43,525
Trust 2002-84, Cl. SA, 36.59%, 12/25/32⁵		506,017		92,016
Trust 2002-9, Cl. MS, 31.163%, 3/25/32⁵		7,757		1,525
Trust 2002-90, Cl. SN, 33.132%, 8/25/32⁵		37,822		6,587
Trust 2002-90, Cl. SY, 38.897%, 9/25/32⁵		25,325		4,529
Trust 2003-26, Cl. DI, 11.174%, 4/25/33⁵		17,559		3,944
Trust 2003-33, Cl. SP, 99.999%, 5/25/33⁵		543,017		85,424
Trust 2003-4, Cl. S, 32.266%, 2/25/33⁵		347,232		63,025
Trust 2003-89, Cl. XS, 99.999%, 11/25/32⁵		149,124		3,343
Trust 2004-54, Cl. DS, 48.397%, 11/25/30⁵		354,118		71,563
Trust 2005-14, Cl. SE, 45.122%, 3/25/35⁵		290,988		47,892
Trust 2005-40, Cl. SA, 58.042%, 5/25/35⁵		811,202		158,903
Trust 2005-40, Cl. SB, 67.984%, 5/25/35⁵		38,286		8,366
Trust 2005-5, Cl. SD, 11.403%, 1/25/35⁵		390,219		61,408
Trust 2005-71, Cl. SA, 63.201%, 8/25/25⁵		933,693		133,773

8	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued
Trust 2005-93, Cl. SI, 22.73%, 10/25/35⁵	$	770,421	$	113,721
Trust 2006-60, Cl. DI, 43.097%, 4/25/35⁵		192,271		26,185
Trust 2007-84, Cl. DS, 12.147%, 8/25/37⁵		548,125		96,578
Trust 2008-46, Cl. EI, 12.785%, 6/25/38⁵		996,446		177,502
Trust 2008-55, Cl. SA, 24.795%, 7/25/38⁵		149,782		24,095
Trust 2008-67, Cl. KS, 56.782%, 8/25/34⁵		1,545,007		116,469
Trust 2009-8, Cl. BS, 18.395%, 2/25/24⁵		469,177		46,583
Trust 221, Cl. 2, 41.06%, 5/1/23⁵		6,433		1,379
Trust 222, Cl. 2, 25.181%, 6/1/23⁵		703,740		131,722
Trust 252, Cl. 2, 38.075%, 11/1/23⁵		617,125		132,460
Trust 294, Cl. 2, 14.933%, 2/1/28⁵		69,980		11,119
Trust 301, Cl. 2, 2.363%, 4/1/29⁵		7,446		1,195
Trust 303, Cl. IO, 7.61%, 11/1/29⁵		110,952		22,544
Trust 320, Cl. 2, 10.392%, 4/1/32⁵		485,388		76,891
Trust 321, Cl. 2, 1.148%, 4/1/32⁵		1,458,107		224,906
Trust 324, Cl. 2, 0%, 7/1/32^5,6		15,078		2,344
Trust 331, Cl. 5, 0%, 2/1/33^5,6		21,200		4,469
Trust 331, Cl. 9, 13.071%, 2/1/33⁵		408,392		64,030
Trust 334, Cl. 12, 0%, 2/1/33^5,6		37,466		7,208
Trust 334, Cl. 17, 20.657%, 2/1/33⁵		285,050		63,302
Trust 339, Cl. 12, 1.911%, 7/1/33⁵		539,398		103,554
Trust 339, Cl. 7, 0%, 7/1/33^5,6		1,216,809		167,994
Trust 343, Cl. 13, 0%, 9/1/33^5,6		502,136		69,645
Trust 343, Cl. 18, 0%, 5/1/34^5,6		139,730		19,908
Trust 345, Cl. 9, 0%, 1/1/34^5,6		469,016		58,490
Trust 351, Cl. 10, 0%, 4/1/34^5,6		189,529		27,874
Trust 351, Cl. 8, 0%, 4/1/34^5,6		302,456		43,092
Trust 356, Cl. 10, 0%, 6/1/35^5,6		242,877		33,924
Trust 356, Cl. 12, 0%, 2/1/35^5,6		120,786		16,942
Trust 362, Cl. 13, 0%, 8/1/35^5,6		435,935		71,803
Trust 364, Cl. 15, 0%, 9/1/35^5,6		25,830		4,076
Trust 364, Cl. 16, 0%, 9/1/35^5,6		504,364		80,745
Trust 365, Cl. 16, 2.259%, 3/1/36⁵		809,263		128,137
Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed Security, Trust 1993-184, Cl. M,
4.333%, 9/25/23⁷		219,781		206,932

				96,636,699
GNMA/Guaranteed—0.4%
Government National Mortgage Assn.: 7%, 12/29/23-3/15/26		18,637		22,031
8.50%, 8/1/17-12/15/17		78,595		84,376


	Principal Amount		Value

GNMA/Guaranteed Continued
Government National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 1999-32, Cl. ZB, 8%, 9/16/29	$	68,776	$	83,921
Series 2000-7, Cl. Z, 8%, 1/16/30		27,659		33,282
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 1998-19, Cl. SB, 68.87%, 7/16/28⁵		13,864		3,066
Series 2001-21, Cl. SB, 88.182%, 1/16/27⁵		496,396		91,990
Series 2002-15, Cl. SM, 79.59%, 2/16/32⁵		519,382		102,579
Series 2004-11, Cl. SM, 70.953%, 1/17/30⁵		402,706		94,529
Series 2007-17, Cl. AI, 22.033%, 4/16/37⁵		157,301		31,282
Series 2011-52, Cl. HS, 9.436%, 4/16/41⁵		1,017,672		260,803

				807,859
Non-Agency—11.4%
Commercial—7.1%
Asset Securitization Corp., Commercial Interest-Only Stripped Mtg.-Backed Security, Series 1997-D4, Cl. PS1, 0%, 4/14/29^5,6		2,786,681		124,538
Banc of America Commercial Mortgage Trust 2007-1, Commercial Mtg. Pass-Through Certificates, Series 2007-1, Cl. A4, 5.451%, 1/1/49		710,000		807,707
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-3, Cl. A4, 5.805%, 6/1/49²		385,000		436,930
Bear Stearns Commercial Mortgage Securities Trust 2007-PWR17, Commercial Mtg. Pass-Through Certificates, Series 2007-PWR17, Cl. AM, 5.915%, 6/1/50²		440,000		466,154
Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, 0%, 6/15/24^3,5,6		2,520,753		123,013
CFCRE Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2011-C1, Cl. A1, 1.871%, 4/1/44¹		121,875		122,560
CHL Mortgage Pass-Through Trust 2005-17, Mtg. Pass-Through Certificates, Series 2005-17, Cl. 1A8, 5.50%, 9/1/35		62,004		60,550
CHL Mortgage Pass-Through Trust 2007-J3, Mtg. Pass-Through Certificates, Series 2007-J3, Cl. A9, 6%, 7/1/37		286,403		209,664

9	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Commercial Continued
Citigroup, Inc./Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates: Series 2007-CD4, Cl. A2B, 5.205%, 12/11/49	$	93,310	$	94,903
Series 2007-CD4, Cl. A4, 5.322%, 12/1/49		875,000		975,946
Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security, Series 2010-C1, Cl. XPA, 4.884%, 9/1/20^1,5		4,352,296		295,621
First Horizon Alternative Mortgage Securities Trust 2004-FA2, Mtg. Pass-Through Certificates, Series 2004-FA2, Cl. 3A1, 6%, 1/25/35		453,025		437,391
First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1, 5.50%, 4/25/37		185,801		116,539
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. A4, 5.736%, 12/1/49		1,280,000		1,423,873
GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2011-GC3, Cl. A1, 2.331%, 3/1/44		313,246		320,173
GS Mortgage Securities Trust 2006-GG6, Commercial Mtg. Pass-Through Certificates, Series 2006-GG6, Cl. AM, 5.622%, 4/1/38		420,274		428,877
GSR Mortgage Loan Trust 2005-AR4, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 6A1, 5.25%, 7/1/35		326,729		320,282
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 5.009%, 11/1/35²		609,088		446,322
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2011-C3, Cl. A1, 1.875%, 2/1/46¹		360,134		363,843
Series 2007-LDPX, Cl. A2S2, 5.187%, 1/1/49¹		919,230		929,195
JPMorgan Mortgage Trust 2007-S3, Mtg. Pass-Through Certificates, Series 2007-S3, Cl. 1A90, 7%, 8/1/37		608,811		527,779


	Principal Amount		Value

Commercial Continued
LB-UBS Commercial Mortgage Trust 2007-C6, Commercial Mtg. Pass-Through Certificates, Series 2007-C6, Cl. A4, 5.858%, 7/11/40	$	880,000	$	1,009,462
Lehman Brothers Commercial Conduit Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 1998-C1, Cl. IO, 40.408%, 2/18/30⁵		2,962,514		37,883
Lehman Structured Securities Corp., Commercial Mtg. Pass-Through Certificates, Series 2002-GE1, Cl. A, 2.514%, 7/1/24¹		119,220		106,602
Merrill Lynch Mortgage Trust 2006-C2, Commercial Mtg. Pass-Through Certificates, Series 2006-C2, Cl. AM, 5.782%, 8/1/43		425,000		443,694
Morgan Stanley Capital I Trust 2007-IQ15, Commercial Mtg. Pass-Through Certificates: Series 2007-IQ15, Cl. AM, 6.076%, 6/1/49²		490,000		489,098
Series 2007-IQ15, Cl. A4, 6.076%, 6/1/49²		400,000		454,833
Salomon Brothers Mortgage Securities VII, Inc., Interest-Only Commercial Mtg. Pass-Through Certificates, Series 1999-C1, Cl. X, 99.999%, 5/18/32⁵		38,913,975		65,337
Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-Through Certificates, Series 2007-6, Cl. 3A1, 4.89%, 7/1/37²		576,656		381,106
Wachovia Bank Commercial Mortgage Trust 2007-C34, Commercial Mtg. Pass-Through Certificates, Series 2007-C34, Cl. A3, 5.678%, 5/1/46		520,000		600,692
WaMu Mortgage Pass-Through Certificates 2005-AR14 Trust, Mtg. Pass-Through Certificates, Series 2005-AR14, Cl. 1A4, 2.451%, 12/1/35²		339,242		290,658
Wells Fargo Mortgage-Backed Securities 2007-AR3 Trust, Mtg. Pass-Through Certificates, Series 2007-AR3, Cl. A4, 5.749%, 4/1/37²		164,796		143,679
Wells Fargo Mortgage-Backed Securities 2007-AR8 Trust, Mtg. Pass-Through Certificates, Series 2007-AR8, Cl. A1, 6.019%, 11/1/37²		415,837		341,929

				13,396,833

10	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Multifamily—0.6%
Citigroup Mortgage Loan Trust, Inc. 2006-AR3, Mtg. Pass-Through Certificates, Series 2006-AR3, Cl. 1A2A, 5.625%, 6/1/36²	$	378,315	$	327,576
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A2M, 5.133%, 5/1/37²		144,579		123,639
Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A3, 2.622%, 3/1/36²		221,041		191,957
Wells Fargo Mortgage-Backed Securities 2006-AR6 Trust, Mtg.
Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 2.668%, 3/25/36²		481,996		409,637

				1,052,809
Other—0.4%
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A4, 5.444%, 3/1/39		700,000		779,360
Salomon Brothers Mortgage Securities VI, Inc., Interest-Only Stripped Mtg.-Backed Security, Series 1987-3, Cl. B, 97.913%, 10/23/17⁵		401		26
Salomon Brothers Mortgage Securities VI, Inc., Principal-Only Stripped Mtg.-Backed Security,
Series 1987-3, Cl. A, 3.315%, 10/23/17⁷		593		592

				779,978
Residential—3.3%
Argent Securities Trust 2006-M3, Asset-Backed Pass-Through Certificates, Series 2006-M3, Cl. A2B, 0.345%, 9/25/36²		19,379		6,200
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-4, Cl. AM, 5.984%, 2/1/51²		470,000		472,727
Banc of America Funding 2007-C Trust, Mtg. Pass-Through Certificates, Series 2007-C, Cl. 1A4, 5.532%, 5/1/36²		155,000		138,742
Banc of America Mortgage 2007-1 Trust, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 1A24, 6%, 3/1/37		266,970		248,905


	Principal Amount		Value

Residential Continued
Carrington Mortgage Loan Trust, Asset-Backed Pass-Through Certificates, Series 2006-FRE1, Cl. A2, 0.355%, 7/25/36²	$	297,436	$	275,784
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35		211,840		186,174
CHL Mortgage Pass-Through Trust 2005-30, Mtg. Pass-Through Certificates, Series 2005-30, Cl. A5, 5.50%, 1/1/36		268,403		259,948
CHL Mortgage Pass-Through Trust 2005-J4, Mtg. Pass-Through Certificates, Series 2005-J4, Cl. A7, 5.50%, 11/1/35		34,982		34,862
CHL Mortgage Pass-Through Trust 2006-17, Mtg. Pass-Through Certificates, Series 2006-17, Cl. A2, 6%, 12/1/36		490,593		413,097
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-Through Certificates, Series 2007-19, Cl. 1A34, 6%, 8/1/37		349,432		246,536
Countrywide Home Loans, Asset-Backed Certificates: Series 2002-4, Cl. A1, 0.985%, 2/25/33²		8,562		8,379
Series 2005-16, Cl. 2AF2, 5.331%, 5/1/36²		368,142		286,215
CSMC Mortgage-Backed Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 2A10, 6%, 4/1/37		370,014		310,504
CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 0.365%, 6/25/47²		25,265		24,895
GSR Mortgage Loan Trust 2006-5F, Mtg. Pass-Through Certificates, Series 2006-5F, Cl. 2A1, 6%, 6/1/36		279,779		254,809
JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36		497,933		432,619
Mastr Asset-Backed Securities Trust 2006-WMC3, Mtg. Pass-Through Certificates, Series 2006-WMC3, Cl. A3, 0.345%, 8/25/36²		62,055		19,868

11	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Residential Continued
Merrill Lynch Mortgage Investors Trust 2006-3, Mtg. Pass-Through Certificates, Series MLCC 2006-3, Cl. 2A1, 2.563%, 10/25/36²	$	42,628	$	39,217
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/29^3,8		3,370,016		294,876
RALI Series 2003-QS1 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2003-QS1, Cl. A2, 5.75%, 1/25/33		194,136		201,864
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates: Series 2006-QS13, Cl. 1A5, 6%, 9/25/36		50,726		33,426
Series 2006-QS13, Cl. 1A8, 6%, 9/25/36		1,778		1,171
RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A28, 5.75%, 4/25/37		22,288		13,769
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36		145,216		114,098
WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates, Series 2007-HY1, Cl. 4A1, 2.713%, 2/1/37²		56,766		41,682
WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1, 5.312%, 5/1/37²		751,557		668,531
Wells Fargo Alternative Loan 2007-PA5 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-PA5, Cl. 1A1, 6.25%, 11/1/37		334,109		303,081
Wells Fargo Mortgage-Backed Securities 2005-9 Trust, Mtg. Pass-Through Certificates, Series 2005-9, Cl. 2A6, 5.25%, 10/25/35		433,563		438,692
Wells Fargo Mortgage-Backed Securities 2006-AR14 Trust, Mtg. Pass-Through Certificates,
Series 2006-AR14, Cl. 1A2, 5.662%, 10/1/36²		357,206		323,109

				6,093,780
Total Mortgage-Backed Obligations (Cost $119,530,104)				118,767,958


	Principal Amount		Value

U.S. Government Obligations—2.0%
Federal Home Loan Mortgage Corp. Nts.: 1%, 7/28/17	$	285,000	$	285,344
1.25%, 5/12/17		245,000		248,648
1.75%, 5/30/19		355,000		363,928
2.375%, 1/13/22⁹		894,000		920,209
5.25%, 4/18/16		515,000		603,397
Federal National Mortgage Assn. Nts.: 1.125%, 4/27/17		927,000		937,236
5.375%, 6/12/17		260,000		315,503
U.S. Treasury Nts., 1.75%, 5/15/22		140,000		141,291

Total U.S. Government Obligations (Cost $3,706,602)				3,815,556
Corporate Bonds and Notes—43.1%
Consumer Discretionary—7.1%
Auto Components—0.2%
Dana Holding Corp., 6.75% Sr. Unsec. Nts., 2/15/21		420,000		455,700
Automobiles—0.8%
DaimlerChrysler NA Holdings Corp., 8.50% Nts., 1/18/31		237,000		363,962
Ford Motor Credit Co. LLC, 5.875% Sr. Unsec. Nts., 8/2/21		958,000		1,068,444

				1,432,406
Diversified Consumer Services—0.3%
Service Corp. International, 6.75% Sr. Unsec. Nts., 4/1/15		496,000		540,640
Hotels, Restaurants & Leisure—0.6%
Darden Restaurants, Inc., 4.50% Sr. Unsec. Unsub. Nts., 10/15/21		238,000		251,962
Hyatt Hotels Corp., 5.75% Sr. Unsec. Unsub. Nts., 8/15/15¹		753,000		826,408
Starwood Hotels & Resorts Worldwide, Inc., 7.15% Sr. Unsec. Unsub. Nts., 12/1/19		116,000		136,973

				1,215,343
Household Durables—0.6%
Jarden Corp., 6.125% Sr. Unsec. Nts., 11/15/22		467,000		495,020
Newell Rubbermaid, Inc., 5.50% Sr. Unsec. Nts., 4/15/13		438,000		452,925
Whirlpool Corp., 5.50% Sr. Unsec. Unsub. Nts., 3/1/13		152,000		156,043

				1,103,988
Media—2.3%
CBS Corp., 4.85% Sr. Unsec. Unsub. Nts., 7/1/42		155,000		152,513

12	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Media Continued
Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22	$	292,000	$	426,162
CSC Holdings, Inc., 7.625% Sr. Unsec. Debs., 7/15/18		430,000		482,675
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 5.15% Sr. Unsec. Nts., 3/15/42		268,000		271,126
DISH DBS Corp., 6.75% Sr. Unsec. Nts., 6/1/21		459,000		498,015
Historic TW, Inc., 9.125% Debs., 1/15/13		149,000		155,221
Interpublic Group of Cos., Inc. (The): 6.25% Sr. Unsec. Nts., 11/15/14		190,000		208,525
10% Sr. Unsec. Nts., 7/15/17		458,000		519,830
News America, Inc., 6.15% Sr. Unsec. Nts., 2/15/41		162,000		190,373
Time Warner Entertainment Co. LP, 8.375% Sr. Nts., 7/15/33		257,000		349,480
Time Warner, Inc., 9.15% Debs., 2/1/23		61,000		84,998
Virgin Media Secured Finance plc: 5.25% Sr. Sec. Nts., 1/15/21		254,000		282,075
6.50% Sr. Sec. Nts., 1/15/18		555,000		606,338

				4,227,331
Multiline Retail—1.0%
Dollar General Corp., 4.125% Nts., 7/15/17⁴		469,000		477,794
Family Dollar Stores, Inc., 5% Sr. Unsec. Nts., 2/1/21		261,000		281,052
Macy’s Retail Holdings, Inc., 5.75% Sr. Unsec. Nts., 7/15/14		765,000		830,720
Target Corp., 4% Sr. Unsec. Nts., 7/1/42		338,000		334,902

				1,924,468
Specialty Retail—1.1%
Limited Brands, Inc., 6.625% Sr. Nts., 4/1/21		455,000		499,363
Rent-A-Center, Inc., 6.625% Sr. Unsec. Nts., 11/15/20		508,000		543,560
Sally Holdings LLC/Sally Capital, Inc., 6.875% Sr. Unsec. Nts., 11/15/19		467,000		510,198
Staples, Inc., 9.75% Sr. Unsec. Unsub. Nts., 1/15/14		398,000		445,042

				1,998,163


	Principal Amount		Value

Textiles, Apparel & Luxury Goods—0.2%
Phillips-Van Heusen Corp., 7.375% Sr. Unsec. Unsub. Nts., 5/15/20	$	400,000	$	445,000
Consumer Staples—3.0%
Beverages—0.9%
Anheuser-Busch InBev Worldwide, Inc., 8.20% Sr. Unsec. Unsub. Nts., 1/15/39		181,000		289,119
Constellation Brands, Inc., 6% Sr. Unsec. Unsub. Nts., 5/1/22		475,000		511,813
Fortune Brands, Inc., 6.375% Sr. Unsec. Unsub. Nts., 6/15/14		126,000		138,094
Pernod-Ricard SA, 4.25% Sr. Unsec. Nts., 7/15/22¹		459,000		472,031
SABMiller Holdings, Inc., 4.95% Sr. Unsec. Nts., 1/15/42		198,000		220,366

				1,631,423
Food & Staples Retailing—0.3%
Delhaize Group: 5.70% Sr. Unsec. Nts., 10/1/40		133,000		112,208
5.875% Sr. Unsec. Unsub. Bonds, 2/1/14		407,000		428,776

				540,984
Food Products—1.1%
Bunge Ltd. Finance Corp.: 5.35% Sr. Unsec. Unsub. Nts., 4/15/14		434,000		458,191
8.50% Sr. Unsec. Nts., 6/15/19		235,000		293,945
Kraft Foods Group, Inc., 5% Sr. Unsec. Nts., 6/4/42¹		119,000		126,628
Kraft Foods, Inc., 6.50% Sr. Unsec. Unsub. Nts., 2/9/40		290,000		374,368
TreeHouse Foods, Inc., 7.75% Sr. Unsec. Nts., 3/1/18		485,000		526,831
Tyson Foods, Inc., 4.50% Sr. Unsec. Unsub. Nts., 6/15/22		244,000		252,540

				2,032,503
Tobacco—0.7%
Altria Group, Inc., 10.20% Sr. Unsec. Nts., 2/6/39		358,000		584,815
Lorillard Tobacco Co., 7% Sr. Unsec. Nts., 8/4/41		311,000		338,828
Reynolds American, Inc., 7.25% Sr. Sec. Nts., 6/1/13		460,000		485,691

				1,409,334
Energy—5.1%
Energy Equipment & Services—1.3%
Ensco plc, 4.70% Sr. Unsec. Nts., 3/15/21		524,000		572,199
Nabors Industries, Inc., 6.15% Sr. Unsec. Unsub. Nts., 2/15/18		593,000		681,650

13	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Energy Continued
Noble Holding International Ltd., 7.375% Sr. Unsec. Bonds, 3/15/14	$	403,000	$	440,769
Precision Drilling Corp.: 6.50% Sr. Unsec. Nts., 12/15/21		217,000		222,425
6.625% Sr. Unsec. Nts., 11/15/20		208,000		215,280
Rowan Cos., Inc., 4.875% Sr. Unsec. Nts., 6/1/22		314,000		317,611

				2,449,934
Oil, Gas & Consumable Fuels—3.8%
Anadarko Petroleum Corp., 6.20% Sr. Unsec. Nts., 3/15/40		178,000		203,009
Apache Corp., 4.75% Sr. Unsec. Unsub. Nts., 4/15/43		157,000		175,387
Canadian Oil Sands Ltd., 5.80% Sr. Unsec. Nts., 8/15/13¹		457,000		477,051
El Paso Pipeline Partners LP, 6.50% Sr. Unsec. Nts., 4/1/20		665,000		775,588
Energy Transfer Partners LP: 4.65% Sr. Unsec. Unsub. Nts., 6/1/21		374,000		387,368
5.20% Sr. Unsec. Unsub. Nts., 2/1/22		136,000		146,023
Kaneb Pipe Line Operating Partnership LP, 5.875% Sr. Unsec. Nts., 6/1/13		757,000		781,256
Kinder Morgan Energy Partners LP, 3.95% Sr. Unsec. Unsub. Nts., 9/1/22		246,000		249,938
Newfield Exploration Co., 6.875% Sr. Unsec. Sub. Nts., 2/1/20		446,000		477,220
Nexen, Inc., 6.40% Sr. Unsec. Unsub. Bonds, 5/15/37		466,000		495,954
Phillips 66, 4.30% Unsec. Nts., 4/1/22¹		314,000		331,240
Plains All American Pipeline LP/PAA Finance Corp., 5.15% Sr. Unsec. Unsub. Nts., 6/1/42		126,000		133,851
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19		451,000		494,973
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14³		420,000		454,125
Rockies Express Pipeline LLC, 3.90% Sr. Unsec. Unsub. Nts., 4/15/15¹		471,000		455,693
Southwestern Energy Co., 4.10% Sr. Unsec. Nts., 3/15/22¹		232,000		235,797
Woodside Finance Ltd.: 4.60% Sr. Unsec. Nts., 5/10/21¹		354,000		379,909
5% Sr. Unsec. Nts., 11/15/13¹		455,000		474,568

				7,128,950


	Principal Amount		Value

Financials—14.9%
Capital Markets—3.4%
Blackstone Holdings Finance Co. LLC, 6.625% Sr. Unsec. Nts., 8/15/19¹	$	800,000	$	878,194
Goldman Sachs Capital, Inc. (The), 6.345% Sub. Bonds, 2/15/34		477,000		452,924
Goldman Sachs Group, Inc. (The): 5.25% Sr. Unsec. Nts., 7/27/21		396,000		403,274
6.25% Sr. Nts., 2/1/41		443,000		464,076
Macquarie Bank Ltd.: 5% Sr. Nts., 2/22/17¹		146,000		148,915
6.625% Unsec. Sub. Nts., 4/7/21¹		672,000		675,350
Morgan Stanley: 5.50% Sr. Unsec. Unsub. Nts., 7/24/20¹		262,000		256,908
5.625% Sr. Unsec. Nts., 9/23/19		1,091,000		1,081,979
Nomura Holdings, Inc.: 4.125% Sr. Unsec. Unsub. Nts., 1/19/16		433,000		441,120
6.70% Sr. Unsec. Nts., 3/4/20		42,000		46,633
Raymond James Financial, Inc., 5.625% Sr. Nts., 4/1/24		458,000		490,505
TD Ameritrade Holding Corp., 2.95% Sr. Unsec. Unsub. Nts., 12/1/12		509,000		512,993
UBS AG Stamford CT, 2.25% Sr. Unsec. Nts., 8/12/13		181,000		181,616
UBS Preferred Funding Trust V, 6.243% Jr. Sub. Perpetual Nts.¹⁰		488,000		463,600

				6,498,087
Commercial Banks—2.7%
ANZ National International Ltd., 2.375% Sr. Unsec. Nts., 12/21/12¹		507,000		510,484
Fifth Third Cap Trust IV, 6.50% Jr. Unsec. Sub. Nts., 4/15/37		845,000		842,888
HSBC Finance Capital Trust IX, 5.911% Nts., 11/30/35²		1,190,000		1,123,063
Lloyds TSB Bank plc, 6.50% Unsec. Sub. Nts., 9/14/20¹		810,000		799,561
Mercantile Bankshares Corp., 4.625% Unsec. Sub. Nts., Series B, 4/15/13		308,000		316,132
Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K¹⁰		528,000		582,120
Zions Bancorp, 4.50% Sr. Unsec. Unsub. Nts., 3/27/17		826,000		831,697

				5,005,945
Consumer Finance—1.1%
American Express Bank FSB, 5.50% Sr. Unsec. Nts., 4/16/13		441,000		457,547

14	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Consumer Finance Continued
Discover Bank, 8.70% Unsec. Sub. Nts., 11/18/19	$	659,000	$	820,366
SLM Corp., 6.25% Sr. Nts., 1/25/16		697,000		735,335

				2,013,248
Diversified Financial Services—2.6%
Bank of America Corp., 5.70% Sr. Unsec. Unsub. Nts., 1/24/22		716,000		790,585
Citigroup, Inc.: 4.45% Sr. Unsec. Unsub. Nts., 1/10/17		310,000		325,420
4.50% Sr. Unsec. Nts., 1/14/22⁴		452,000		468,115
6.125% Sr. Unsec. Unsub. Nts., 11/21/17		756,000		838,945
JPMorgan Chase & Co., 7.90% Perpetual Bonds, Series 1¹⁰		1,494,000		1,643,543
Merrill Lynch & Co., Inc., 7.75% Jr. Sub. Bonds, 5/14/38		655,000		750,177

				4,816,785
Insurance—3.9%
American International Group, Inc.: 4.875% Sr. Unsec. Nts., 6/1/22		415,000		425,802
6.25% Jr. Sub. Bonds, 3/15/37		225,000		209,250
Burlington Northern Santa Fe LLC, 5.75% Sr. Unsec. Bonds, 5/1/40		143,000		171,375
CNA Financial Corp.: 5.75% Sr. Unsec. Unsub. Nts., 8/15/21		368,000		405,377
5.875% Sr. Unsec. Unsub. Bonds, 8/15/20		260,000		286,562
Gulf South Pipeline Co. LP, 5.75% Sr. Unsec. Nts., 8/15/12¹		455,000		457,053
Hartford Financial Services Group, Inc., 6.625% Sr. Unsec. Unsub. Nts., 4/15/42		289,000		299,011
Irish Life & Permanent Group Holdings plc, 3.60% Sr. Unsec. Unsub. Nts., 1/14/13¹		320,000		313,310
Liberty Mutual Group, Inc., 5% Sr. Nts., 6/1/21¹		685,000		691,095
Lincoln National Corp., 6.05% Jr. Unsec. Sub. Bonds, 4/20/67		945,000		871,763
Prudential Covered Trust 2012-1, 2.997% Sec. Nts., 9/30/15¹		600,000		610,063
Swiss Re Capital I LP, 6.854% Perpetual Bonds^1,10		958,000		883,554
Unum Group, 5.625% Sr. Unsec. Unsub. Nts., 9/15/20		779,000		839,835
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37^2,3		848,000		835,280

				7,299,330


	Principal Amount		Value

Real Estate Investment Trusts—1.2%
American Tower Corp.: 5.05% Sr. Unsec. Unsub. Nts., 9/1/20	$	130,000	$	136,869
7% Sr. Unsec. Nts., 10/15/17		413,000		480,651
CommonWealth REIT, 5.75% Sr. Unsec. Unsub. Bonds, 2/15/14		425,000		435,384
Duke Realty LP, 6.25% Sr. Unsec. Unsub. Nts., 5/15/13		476,000		492,073
National Retail Properties, Inc., 6.25% Sr. Unsec. Unsub. Nts., 6/15/14		332,000		352,628
WEA Finance LLC/WT Finance Aust Pty Ltd., 7.50% Sr. Unsec. Nts., 6/2/14¹		408,000		445,403

				2,343,008
Health Care—1.4%
Biotechnology—0.6%
Amgen, Inc., 3.625% Sr. Unsec. Unsub. Nts., 5/15/22		467,000		484,289
Celgene Corp., 5.70% Sr. Unsec. Nts., 10/15/40		291,000		327,704
Gilead Sciences, Inc., 5.65% Sr. Unsec. Nts., 12/1/41		243,000		284,729

				1,096,722
Health Care Providers & Services—0.5%
Aristotle Holding, Inc., 3.90% Unsec. Nts., 2/15/22¹		318,000		330,536
McKesson Corp., 6% Sr. Unsec. Unsub. Nts., 3/1/41		237,000		313,801
Quest Diagnostics, Inc., 5.75% Sr. Unsec. Nts., 1/30/40		310,000		356,679

				1,001,016
Pharmaceuticals—0.3%
Mylan, Inc., 6% Sr. Nts., 11/15/18¹		511,000		540,383
Industrials—3.1%
Aerospace & Defense—0.4%
Huntington Ingalls Industries, Inc., 7.125% Sr. Unsec. Unsub. Nts., 3/15/21		448,000		470,400
United Technologies Corp., 3.10% Sr. Unsec. Unsub. Nts., 6/1/22		324,000		340,523

				810,923
Commercial Services & Supplies—0.3%
Corrections Corp. of America, 7.75% Sr. Nts., 6/1/17		483,000		525,263
Industrial Conglomerates—0.8%
General Electric Capital Corp.: 5.25% Sr. Unsec. Nts., 10/19/12		28,000		28,394
6.375% Unsec. Sub. Bonds, 11/15/67		934,000		974,863
7.125% Unsec. Sub. Nts., 12/15/49		400,000		424,150

				1,427,407

15	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Machinery—1.0%
CNH Capital LLC, 6.25% Sr. Unsec. Nts., 11/1/16¹	$	489,000	$	525,675
ITT Corp., 7.375% Unsec. Debs., 11/15/15		320,000		367,589
Joy Global, Inc., 5.125% Sr. Unsec. Unsub. Nts., 10/15/21		242,000		266,363
Kennametal, Inc., 3.875% Sr. Unsec. Unsub. Nts., 2/15/22		342,000		352,852
SPX Corp., 6.875% Sr. Unsec. Nts., 9/1/17¹		412,000		451,140

				1,963,619
Professional Services—0.2%
FTI Consulting, Inc., 6.75% Sr. Unsec. Nts., 10/1/20		436,000		462,160
Road & Rail—0.4%
CSX Corp., 5.50% Sr. Unsec. Nts., 4/15/41		150,000		169,509
Kansas City Southern de Mexico, 8% Sr. Unsec. Unsub. Nts., 2/1/18		430,000		483,234

				652,743
Information Technology—1.5%
Communications Equipment—0.1%
Juniper Networks, Inc., 5.95% Sr. Unsec. Unsub. Nts., 3/15/41		201,000		232,527
Computers & Peripherals—0.2%
Hewlett-Packard Co., 4.65% Sr. Unsec. Nts., 12/9/21		363,000		381,516
Electronic Equipment & Instruments—0.4%
Arrow Electronics, Inc., 5.125% Sr. Unsec. Unsub. Nts., 3/1/21		491,000		516,185
Corning, Inc., 4.75% Sr. Unsec. Unsub. Nts., 3/15/42		182,000		191,769

				707,954
Office Electronics—0.2%
Xerox Corp., 5.65% Sr. Unsec. Nts., 5/15/13		435,000		450,814
Semiconductors & Semiconductor Equipment—0.3%
Advanced Micro Devices, Inc., 7.75% Sr. Unsec. Nts., 8/1/20		415,000		458,575
Software—0.3%
Symantec Corp., 4.20% Sr. Unsec. Unsub. Nts., 9/15/20		573,000		587,561
Materials—3.1%
Chemicals—0.8%
Agrium, Inc., 6.125% Sr. Unsec. Nts., 1/15/41		230,000		283,168
Airgas, Inc., 3.25% Sr. Nts., 10/1/15		842,000		878,229


	Principal Amount		Value

Chemicals Continued
Eastman Chemical Co., 4.80% Sr. Unsec. Nts., 9/1/42	$	333,000	$	341,297

				1,502,694
Containers & Packaging—0.6%
Crown Americas LLC/Crown Americas Capital Corp. II I, 6.25% Sr. Unsec. Nts., 2/1/21		446,000		489,485
Rock-Tenn Co., 4.90% Sr. Unsec. Nts., 3/1/22¹		162,000		167,340
Sealed Air Corp.,
8.375% Sr. Unsec. Nts., 9/15/21¹		388,000		440,380

				1,097,205
Metals & Mining—1.5%
ArcelorMittal, 6.25% Sr. Unsec. Unsub. Nts., 2/25/22		256,000		251,355
Cliffs Natural Resources, Inc., 6.25% Sr. Unsec. Unsub. Nts., 10/1/40		124,000		122,318
Freeport-McMoRan Copper & Gold, Inc., 3.55% Sr. Unsec. Nts., 3/1/22		331,000		326,588
Petrohawk Energy Corp., 6.25% Sr. Unsec. Nts., 6/1/19		720,000		807,213
Teck Resources Ltd., 7% Sr. Unsec. Unsub. Nts., 9/15/12		476,000		481,365
Xstrata Canada Corp.: 5.375% Sr. Unsec. Unsub. Nts., 6/1/15		245,000		265,879
6% Sr. Unsec. Unsub. Nts., 10/15/15		463,000		510,691
7.25% Sr. Unsec. Unsub. Nts., 7/15/12		80,000		80,148

				2,845,557
Paper & Forest Products—0.2%
International Paper Co., 6% Sr. Unsec. Unsub. Nts., 11/15/41		202,000		228,866
Westvaco Corp., 7.95% Sr. Unsec. Unsub. Nts., 2/15/31		102,000		116,944

				345,810
Telecommunication Services—2.3%
Diversified Telecommunication Services—2.2%
AT&T, Inc., 6.30% Sr. Unsec.
Bonds, 1/15/38		590,000		738,400
British Telecommunications plc, 9.875% Bonds, 12/15/30		298,000		449,757
CenturyLink, Inc., 7.65% Sr. Unsec. Unsub. Nts., 3/15/42		362,000		352,715
Frontier Communications Corp., 8.25% Sr. Unsec. Nts., 4/15/17		495,000		534,600
Telecom Italia Capital SA, 7.721% Sr. Unsec. Unsub. Nts., 6/4/38		582,000		512,160

16	OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Diversified Telecommunication Services Continued
Telefonica Emisiones SAU, 5.462% Sr. Unsec. Unsub. Nts., 2/16/21	$	692,000	$	603,982
Verizon Communications, Inc., 6.40% Sr. Unsec. Nts., 2/15/38		286,000		373,181
Vivendi SA, 4.75% Sr. Unsec. Nts., 4/12/22¹		45,000		44,529
Windstream Corp., 7.875% Sr. Unsec.
Unsub. Nts., 11/1/17		439,000		480,705

				4,090,029
Wireless Telecommunication Services—0.1%
America Movil SAB de CV, 6.125% Sr. Unsec. Unsub. Nts., 3/30/40		215,000		267,126
Utilities—1.6%
Electric Utilities—1.1%
Edison International, 3.75% Sr. Unsec. Unsub. Nts., 9/15/17		663,000		700,268
Great Plains Energy, Inc., 2.75% Sr. Unsec. Unsub. Nts., 8/15/13		464,000		470,951
Oncor Electric Delivery Co. LLC, 4.10% Sr. Sec. Nts., 6/1/22¹		93,000		95,087


	Principal Amount			Value

Electric Utilities Continued
PPL WEM Holdings plc,
5.375% Sr. Unsec. Nts., 5/1/21¹	$	761,000		$	821,938

					2,088,244
Energy Traders—0.3%
TransAlta Corp., 5.75% Sr. Unsec. Nts., 12/15/13		455,000			477,927
Gas Utilities—0.2%
Southwest Gas Corp., 3.875%
Sr. Unsec. Unsub. Nts., 4/1/22		320,000			338,212

Total Corporate Bonds and Notes (Cost $77,625,033)					80,864,557

	Shares
Investment Company—17.7%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^11,12
(Cost $33,155,457)		33,155,457			33,155,457
Total Investments, at Value (Cost $252,036,764)		135.8	%		254,777,026
Liabilities in Excess of Other Assets		(35.8	)		(67,098,630	)
Net Assets		100.0	%	$	187,678,396

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. 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 $24,095,135 or 12.84% of the Fund’s net assets as of June 29, 2012.

2. Represents the current interest rate for a variable or increasing rate security.

3. Restricted security. The aggregate value of restricted securities as of June 29, 2012 was $2,379,087, which represents 1.27% of the Fund’s net assets. See Notes 7 of the accompanying Notes. Information concerning restricted securities is as follows:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation (Depreciation)
Capital Lease Funding Securitization LP, Interest-Only Corporate-Backed Pass-Through Certificates, Series 1997-CTL1, 0%, 6/15/24		4/21/97	$	404,914	$	123,013	$	(281,901	)
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/29		8/10/10		3,281,116		294,876		(2,986,240	)
Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.50% Sr. Sec. Nts., 9/30/14		7/16/09-2/16/12		429,293		454,125		24,832
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17		2/4/11-2/9/12		378,372		378,974		602
Santander Drive Auto Receivables Trust 2011-S2A, Automobile Receivables Nts., Series 2011-S2A, Cl. D, 3.35%, 6/15/17		5/19/11-1/19/12		292,191		292,819		628
ZFS Finance USA Trust V, 6.50% Jr. Sub. Bonds, 5/9/37		2/24/11-2/23/12		833,958		835,280		1,322

			$	5,619,844	$	2,379,087	$	(3,240,757	)

17	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued

4. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after June 29, 2012. See Note 1 of the accompanying Notes.

5. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans or other receivables. 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 or asset-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. These securities amount to $5,841,772 or 3.11% of the Fund’s net assets as of June 29, 2012.

6. The current amortization rate of the security’s cost basis exceeds the future interest payments currently estimated to be received. Both the amortization rate and interest payments are contingent on future mortgage pre-payment speeds and are therefore subject to change.

7. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $288,253 or 0.15% of the Fund’s net assets as of June 29, 2012.

8. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the original contractual interest rate. See Note 1 of the accompanying Notes.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		28,319,973		44,080,650		39,245,166		33,155,457

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E					$	33,155,457		$30,663

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

12. Rate shown is the 7-day yield as of June 29, 2012.


Futures Contracts as of June 29, 2012 are as follows:

Contract Description	Buy/Sell		Number of Contracts		Expiration Date		Value		Unrealized Appreciation (Depreciation)
U.S. Treasury Long Bonds		Buy		21		9/19/12	$	3,107,344	$	(17,151	)
U.S. Treasury Nts., 2 yr.		Sell		82		9/28/12		18,055,375		12,516
U.S. Treasury Nts., 5 yr.		Sell		67		9/28/12		8,305,906		(10,235	)
U.S. Treasury Nts., 10 yr.		Sell		4		9/19/12		533,500		27
U.S. Treasury Ultra Bonds		Buy		54		9/19/12		9,009,563		136,731

									$	121,888

See accompanying Notes to Financial Statements.

18	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $218,881,307)	$	221,621,569
Affiliated companies (cost $33,155,457)		33,155,457
		254,777,026
Cash		296,425
Receivables and other assets:
Investments sold (including $52,500,875 sold on a when-issued or delayed delivery basis)		58,190,321
Interest, dividends and principal paydowns		1,478,146
Futures margins		23,553
Other		24,804
Total assets		314,790,275
Liabilities
Payables and other liabilities:
Investments purchased (including $123,281,697 purchased on a when-issued or delayed delivery basis)		126,137,476
Shares of beneficial interest redeemed		689,343
Futures margins		187,949
Shareholder communications		29,033
Trustees’ compensation		18,082
Transfer and shareholder servicing agent fees		15,264
Distribution and service plan fees		13,934
Other		20,798
Total liabilities		127,111,879
Net Assets	$	187,678,396
Composition of Net Assets
Par value of shares of beneficial interest	$	23,983
Additional paid-in capital		267,791,007
Accumulated net investment income		3,740,566
Accumulated net realized loss on investments		(86,739,310	)
Net unrealized appreciation on investments		2,862,150
Net Assets	$	187,678,396
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $118,292,090 and 15,057,562 shares of beneficial interest outstanding)		$7.86
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $69,386,306 and 8,925,415 shares of beneficial interest outstanding)		$7.77

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

19	OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Interest	$	4,151,879
Dividends from affiliated companies		30,663
Fee income on when-issued securities		642,157
Total investment income		4,824,699
Expenses
Management fees		553,092
Distribution and service plan fees—Service shares		81,466
Transfer and shareholder servicing agent fees:
Non-Service shares		59,576
Service shares		32,605
Shareholder communications:
Non-Service shares		3,815
Service shares		1,934
Custodian fees and expenses		13,104
Trustees’ compensation		8,284
Administration service fees		750
Other		25,736
Total expenses		780,362
Less waivers and reimbursements of expenses		(20,766	)
Net expenses		759,596
Net Investment Income		4,065,103
Realized and Unrealized Gain
Net realized gain on:
Investments from unaffiliated companies		2,777,854
Closing and expiration of futures contracts		317,518
Net realized gain		3,095,372
Net change in unrealized appreciation/depreciation on:
Investments		1,583,706
Futures contracts		35,672
Net change in unrealized appreciation/depreciation		1,619,378

Net Increase in Net Assets Resulting from Operations	$	8,779,853

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

20	OPPENHEIMER CORE BOND FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	4,065,103		$	8,584,025
Net realized gain		3,095,372			7,156,870
Net change in unrealized appreciation/depreciation		1,619,378			(1,111,204	)
Net increase in net assets resulting from operations		8,779,853			14,629,691
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(5,870,393	)		(7,632,636	)
Service shares		(3,356,788	)		(3,102,242	)
		(9,227,181	)		(10,734,878	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(3,872,554	)		(12,784,495	)
Service shares		7,432,980			4,335,577
		3,560,426			(8,448,918	)
Net Assets
Total increase (decrease)		3,113,098			(4,554,105	)
Beginning of period		184,565,298			189,119,403
End of period (including accumulated net investment income of $3,740,566 and $8,902,644, respectively)	$	187,678,396		$	184,565,298

1. June 29, 2012 and December 30, 2011 represents the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

21	OPPENHEIMER CORE BOND FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$7.88			$7.73			$7.07			$6.45			$11.06			$11.16
Income (loss) from investment operations:
Net investment income²		.18			.36			.40			.48			.66			.55
Net realized and unrealized gain (loss)		.21			.25			.40			.14			(4.82	)		(.08	)
Total from investment operations		.39			.61			.80			.62			(4.16	)		.47
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.41	)		(.46	)		(.14	)		—			(.45	)		(.57	)
Net asset value, end of period		$7.86			$7.88			$7.73			$7.07			$ 6.45			$11.06
Total Return, at Net Asset Value³	4.95%			8.27%			11.42%			9.61%			(39.05)%			4.39%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	118,292		$	122,271		$	132,557		$	137,597		$	156,339		$	325,661
Average net assets (in thousands)	$	119,825		$	127,341		$	136,333		$	137,631		$	271,355		$	345,723
Ratios to average net assets:⁴
Net investment income		4.50	%		4.71	%		5.32	%		7.40	%		6.76	%		5.07	%
Total expenses⁵		0.76	%		0.77	%		0.79	%		0.75	%		0.63	%		0.68	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.74	%		0.75	%		0.70	%		0.61	%		0.62	%		0.68	%
Portfolio turnover rate⁶		81	%		99	%		98	%		143	%		51	%		89	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.77	%
Year Ended December 30, 2011	0.79	%
Year Ended December 31, 2010	0.80	%
Year Ended December 31, 2009	0.76	%
Year Ended December 31, 2008	0.63	%
Year Ended December 31, 2007	0.68	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	489,373,619	$	494,049,812
Year Ended December 30, 2011	$	911,850,847	$	909,531,196
Year Ended December 31, 2010	$	775,240,942	$	766,486,357
Year Ended December 31, 2009	$	977,840,247	$	1,009,549,121
Year Ended December 31, 2008	$	1,019,711,829	$	963,377,934
Year Ended December 31, 2007	$	662,784,931	$	678,316,693

See accompanying Notes to Financial Statements.

22	OPPENHEIMER CORE BOND FUND/VA


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$7.79			$7.65			$6.99			$6.41			$10.98			$11.10
Income (loss) from investment operations:
Net investment income²		.17			.34			.37			.46			.63			.52
Net realized and unrealized gain (loss)		.20			.24			.41			.12			(4.77	)		(.08	)
Total from investment operations		.37			.58			.78			.58			(4.14	)		.44
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.39	)		(.44	)		(.12	)		—			(.43	)		(.56	)
Net asset value, end of period		$7.77			$7.79			$7.65			$6.99			$ 6.41			$10.98
Total Return, at Net Asset Value³	4.78%			7.93%			11.28%			9.05%			(39.07)%			4.09%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,386		$	62,294		$	56,562		$	56,717		$	63,093		$	103,542
Average net assets (in thousands)	$	65,580		$	58,629		$	57,313		$	52,648		$	101,597		$	70,116
Ratios to average net assets:⁴
Net investment income		4.24	%		4.42	%		5.06	%		7.16	%		6.55	%		4.85	%
Total expenses⁵		1.01	%		1.02	%		1.04	%		1.01	%		0.88	%		0.92	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.99	%		1.00	%		0.95	%		0.86	%		0.87	%		0.92	%
Portfolio turnover rate⁶		81	%		99	%		98	%		143	%		51	%		89	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.02	%
Year Ended December 30, 2011	1.04	%
Year Ended December 31, 2010	1.05	%
Year Ended December 31, 2009	1.02	%
Year Ended December 31, 2008	0.88	%
Year Ended December 31, 2007	0.92	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	489,373,619	$	494,049,812
Year Ended December 30, 2011	$	911,850,847	$	909,531,196
Year Ended December 31, 2010	$	775,240,942	$	766,486,357
Year Ended December 31, 2009	$	977,840,247	$	1,009,549,121
Year Ended December 31, 2008	$	1,019,711,829	$	963,377,934
Year Ended December 31, 2007	$	662,784,931	$	678,316,693

See accompanying Notes to Financial Statements.

23	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Core Bond Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s main investment objective is to seek a high level of current income. As a secondary objective, the Fund seeks capital appreciation when consistent with its primary objective. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

As of June 29, 2012, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions
Purchased securities	$	123,281,697
Sold securities		52,500,875

24	OPPENHEIMER CORE BOND FUND/VA

Credit Risk. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities that have missed an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment. Information concerning securities not accruing interest as of June 29, 2012 is as follows:


Cost	$	3,281,116
Market Value	$	294,876
Market Value as a % of Net Assets		0.16	%

During the fiscal year ended December 30, 2011, the Fund utilized $5,723,749 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains


Expiring
2014	$	609,788
2015		1,245,459
2016		12,777,851
2017		75,069,850

Total	$	89,702,948

25	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $86,607,576 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $3,095,372 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	252,086,136
Federal tax cost of other investments		(14,899,763)

Total federal tax cost	$	237,186,373


Gross unrealized appreciation	$	8,129,939
Gross unrealized depreciation		(5,317,161)

Net unrealized appreciation	$	2,812,778

26	OPPENHEIMER CORE BOND FUND/VA

redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

27	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

is valued by using one of the following methodologies (listed in order of priority); (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard Inputs Generally Considered by Third-Party Pricing Vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

28	OPPENHEIMER CORE BOND FUND/VA

methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Asset-Backed Securities	$	—		$	18,173,498	$	—	$	18,173,498
Mortgage-Backed Obligations		—			118,767,958		—		118,767,958
U.S. Government Obligations		—			3,815,556		—		3,815,556
Corporate Bonds and Notes		—			80,864,557		—		80,864,557
Investment Company		33,155,457			—		—		33,155,457

Total Investments, at Value		33,155,457			221,621,569		—		254,777,026
Other Financial Instruments:
Futures margins		23,553			—		—		23,553

Total Assets	$	33,179,010		$	221,621,569	$	—	$	254,800,579

Liabilities Table
Other Financial Instruments:
Futures margins	$	(187,949	)	$	—	$	—	$	(187,949	)

Total Liabilities	$	(187,949	)	$	—	$	—	$	(187,949	)

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

29	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		510,341		$	4,139,415			1,525,561		$	11,724,677
Dividends and/or distributions reinvested		749,731			5,870,393			1,028,657			7,632,636
Redeemed		(1,722,659	)		(13,882,362	)		(4,179,877	)		(32,141,808	)

Net decrease		(462,587	)	$	(3,872,554	)		(1,625,659	)	$	(12,784,495	)


Service Shares
Sold		1,982,805		$	15,875,942			2,658,754		$	20,149,296
Dividends and/or distributions reinvested		433,134			3,356,788			422,074			3,102,242
Redeemed		(1,484,090	)		(11,799,750	)		(2,480,364	)		(18,915,961	)

Net increase		931,849		$	7,432,980			600,464		$	4,335,577

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	112,296,197	$	112,527,041
U.S. government and government agency obligations		3,632,196		3,015,383
To Be Announced (TBA) mortgage-related securities		489,373,619		494,049,812

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $1 billion	0.60	%
Over $1 billion	0.50

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. For the six months ended June 29, 2012, the Fund paid $92,370 to OFS for services to the Fund.

30	OPPENHEIMER CORE BOND FUND/VA

expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.75% for Non-Service shares and 1.00% for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $4,631 and $2,350 for Non-Service and Service shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Risk Exposures and the Use of Derivative Instruments

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

31	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

Valuations of derivative instruments as of June 29, 2012 are as follows:

Asset Derivatives

Liability Derivatives

Derivatives Not

Accounted for as

Hedging Instruments

Statement of Assets

and Liabilities Location

Value

Statement of Assets

and Liabilities Location

Value

Interest rate contracts

Futures margins

$23,553

Futures margins

$187,949

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Closing and expiration of futures contracts
Interest rate contracts		$317,518

Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Futures contracts
Interest rate contracts		$35,672

Futures Contracts

32	OPPENHEIMER CORE BOND FUND/VA

Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $14,003,670 and $34,545,669 on futures contracts purchased and sold, respectively.

7. Restricted Securities

8. Pending Litigation

33	OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

8. Pending Litigation Continued

a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

34	OPPENHEIMER CORE BOND FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Core Bond Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

20,280,711

1,096,313

1,128,381

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

20,419,547

1,106,922

978,937

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

20,054,108

1,245,742

1,205,556

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

20,319,631

1,066,597

1,119,178

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

20,150,952

1,171,521

1,182,933

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

20,075,505

1,263,179

1,166,722

N/A

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

20,151,248

1,164,958

1,189,199

N/A

35	OPPENHEIMER CORE BOND FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited / Continued

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

20,255,607

1,113,113

1,136,686

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

19,902,096

1,245,377

1,357,933

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

20,177,574

1,182,437

1,145,395

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

36	OPPENHEIMER CORE BOND FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies (“portfolio proxies”) relating to securities held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Fund’s Form N-PX filing on the SEC’s website at www.sec.gov.

37	OPPENHEIMER CORE BOND FUND/VA

OPPENHEIMER CORE BOND FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Krishna Memani, Vice President Peter A. Strzalkowski, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent auditors.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Global Securities Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER GLOBAL SECURITIES FUND/VA

Portfolio Manager: Rajeev Bhaman, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	4.87%
Service Shares	4.75
Class 3 Shares	4.88
Class 4 Shares	4.75
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	-10.57%	-1.79%	6.67%
Service Shares	-10.79%	-2.04%	6.41%

	1-Year	5-Year	Since Inception (5/1/03)
Class 3 Shares	-10.56%	-1.80%	9.42%

	1-Year	5-Year	Since Inception (5/3/04)
Class 4 Shares	-10.79%	-2.04%	5.30%
Expense Ratios For the Fiscal Year Ended 12/30/11¹
Non-Service Shares	0.76%
Service Shares	1.01
Class 3 Shares	0.76
Class 4 Shares	1.01

Regional Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of investments.


Top Ten Common Stock Holdings
Telefonaktiebolaget LM Ericsson, B Shares		3.5%
eBay, Inc.		3.1
Siemens AG		2.3
Colgate-Palmolive Co.		2.1
SAP AG		2.0
Walt Disney Co. (The)		2.0
Altera Corp.		2.0
McDonald’s Corp.		1.9
Fomento Economico Mexicano SA de CV, UBD		1.9
European Aeronautic Defense & Space Co.		1.9

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FUND PERFORMANCE DISCUSSION

The Fund’s Non-Service shares returned 4.87% during the six-month reporting period. In comparison, the Fund underperformed the MSCI World Index (the “Index”), which returned 5.91%.¹ The Fund’s underperformance relative to the Index stemmed primarily from weaker relative stock selection within the information technology and financials sectors. The greatest area of outperformance for the Fund was energy, where an underweight position to what was the weakest performing sector of the Index benefited performance. The Fund also outperformed the Index within the consumer staples and health care sectors due to stronger relative stock selection.

Economic and Market Environment

However, the second quarter was a volatile time for global markets. The fear of contagion from the worsening European sovereign debt crisis and a recession across much of Europe drove negative market sentiment, particularly over May and June. Very high unemployment, soaring debt and higher borrowing costs in Greece, Spain and Italy contributed to serious questions over how to implement austerity measures and restructure debt or instead take a different tact and provide some or all of those countries with additional funds. Perhaps most worrisome of all to investors was the possibility of Greece pulling out of the euro and its ramifications for the future of the Eurozone and its common currency. In the U.S., slower-than-expected first-quarter growth also contributed to a sell-off in the stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. However, the period ended on a positive note for the markets. The results of elections in Greece and continued efforts by European policymakers to stabilize the situation in the region appeared to soothe market jitters slightly in the final days of the period.

Fund Review

During the reporting period, the strongest individual stock contributors were eBay, Inc., Amylin Pharmaceuticals, Inc. and The Walt Disney Co. eBay provides online marketplaces, including its flagship e-commerce platform eBay.com, as well as StubHub, Half.com and Shopping.com. Online payment services are provided by PayPal and Bill Me Later. eBay does not compete with merchants, but continues to position itself as a commerce enabler across all selling platforms. We regard eBay as a global leader in the eCommerce ecosystem. Amylin Pharmaceuticals is a San Diego-based biopharmaceutical company. During the first quarter of 2012, Amylin announced that its Type II diabetes drug, Bydureon, injected once weekly may improve an adult patient’s ability to control blood sugar by helping the body make its own insulin only at the times it is needed. This triggered an initial buyout offer from Bristol-Myers Squibb, which Amylin rejected. Amylin’s shares rallied on the offer and the anticipated subsequent offers. Shortly after the reporting period ended, Amylin accepted a second offer from Bristol-Myers Squibb. Walt Disney performed well for the Fund, as the company reported stronger-than-expected earnings mainly driven by higher theme park attendance, thanks to warmer weather in North America, and by broadcasting (particularly ESPN). The company has many ways to monetize its different brands including its Disney theme parks and related merchandising, Pixar animation, Marvel comics, ESPN content and its distribution joint venture with DreamWorks. Disney also has plans to develop its network of theme parks, hotels and travel cruises in China and India. We like the company’s wide reach in comparison to its competitors.

3	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FUND PERFORMANCE DISCUSSION

The most significant detractors from the Fund’s performance were Tiffany & Co., Iluka Resources Ltd. and Telefonaktiebolaget LM Ericsson (Ericsson). Tiffany, the American luxury goods brand, lowered its outlook for sales growth, which negatively impacted its stock price over the second half of the period. We retain our conviction in Tiffany as we believe the company’s strong brand should enable it to continue raising prices to mitigate rising product costs due to higher commodity prices. Iluka Resources is a mining company focused on the production of zircon and titanium-based products with operations in Australia and the U.S. It is the world’s largest producer of zircon. Iluka experienced declines over the second quarter of 2012 as heightened macroeconomic concerns weakened demand for its products, forcing it to dampen its sales forecast. Ericsson is a leading supplier to the mobile telecom service industry. The Swedish company’s stock had a volatile period, declining over the first quarter on the back of lower-than-expected earnings figures. A decrease in sales for its 3G CDMA technology also negatively impacted its stock price this period. We continue to believe in the stock, which was the top holding of the Fund at period end.

Outlook

We believe that our method of investment, which focuses on purchasing high quality companies positioned to capitalize on structural growth trends will serve us well in the periods to come. Purchasing shares of quality companies at attractive valuations offers the potential for those shares to substantially appreciate over our investment horizon of three to five years. Regardless of whether we are in a fast or a slow growth world, we believe the companies in the Fund have the potential to grow at or above the general rate of the economies in which they operate by virtue of the secular currents driving them and their advantages globally.

We have a long-term investment horizon and build the Fund from the bottom up, focusing on businesses advantaged by long-term trends. We invest in companies that we believe are capable of producing solid and sustainable growth through the business cycle, that have made strong returns on invested capital, and that demonstrate good cash flow generation characteristics. We are patient investors and generally wait for those companies to be out of favor so that they are reasonably priced when we buy.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,048.70	$	3.81
Service Shares		1,000.00		1,047.50		5.08
Class 3		1,000.00		1,048.80		3.81
Class 4		1,000.00		1,047.50		5.08

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,021.02		3.75
Service Shares		1,000.00		1,019.78		5.01
Class 3		1,000.00		1,021.02		3.75
Class 4		1,000.00		1,019.78		5.01


Class	Expense Ratios
Non-Service shares		0.75	%
Service shares		1.00
Class 3		0.75
Class 4		1.00

5	OPPENHEIMER GLOBAL SECURITIES FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Shares		Value

Common Stocks—97.4%
Consumer Discretionary—17.2%
Diversified Consumer Services—0.0%
Zee Learn Ltd.¹		492,103	$	223,423
Hotels, Restaurants & Leisure—4.0%
Carnival Corp.		1,178,236		40,378,143
Lottomatica SpA		552,870		10,680,015
McDonald’s Corp.		521,140		46,136,524

				97,194,682
Household Durables—0.2%
Sony Corp.		293,300		4,173,838
Leisure Equipment & Products—0.3%
Nintendo Co. Ltd.		61,000		7,117,731
Media—4.7%
Grupo Televisa SA, Sponsored GDR		1,165,476		25,034,424
McGraw-Hill Cos., Inc. (The)		634,460		28,550,700
Walt Disney Co. (The)		971,920		47,138,120
Wire & Wireless India Ltd.¹		2,281,600		547,878
Zee Entertainment Enterprises Ltd.		4,094,715		10,765,723

				112,036,845
Multiline Retail—1.0%
Pinault-Printemps-Redoute SA		164,970		23,557,713
Specialty Retail—4.1%
Abercrombie & Fitch Co., Cl. A		350,430		11,963,680
Industria de Diseno Textil SA		433,646		44,742,038
Kingfisher plc		1,968,942		8,902,578
Tiffany & Co.		633,480		33,542,766

				99,151,062
Textiles, Apparel & Luxury Goods—2.9%
Brunello Cucinelli SpA¹		143,920		2,047,154
LVMH Moet Hennessy Louis Vuitton SA		281,770		42,947,004
Tod’s SpA		238,587		23,967,193

				68,961,351
Consumer Staples—9.9%
Beverages—4.3%
Carlsberg AS, Cl. B		199,346		15,707,927
Companhia de Bebidas das Americas, Sponsored ADR, Preference		614,175		23,541,328
Fomento Economico Mexicano SA de CV, UBD		5,141,501		45,912,247
Grupo Modelo SA de CV, Series C		2,015,307		17,826,955

				102,988,457
Food & Staples Retailing—0.5%
E-Mart Co. Ltd.		61,139		13,428,868


	Shares		Value

Food Products—3.0%
Nestle SA		456,400	$	27,192,140
Unilever plc		1,310,443		44,002,283

				71,194,423
Household Products—2.1%
Colgate-Palmolive Co.		475,810		49,531,821
Energy—4.0%
Energy Equipment & Services—2.8%
Technip SA		419,990		43,828,169
Transocean Ltd.		505,762		22,622,734

				66,450,903
Oil, Gas & Consumable Fuels—1.2%
Repsol YPF SA		941,660		15,140,229
Total SA		277,850		12,539,163
YPF SA, Sponsored ADR		214,830		2,653,151

				30,332,543
Financials—13.6%
Capital Markets—3.3%
Credit Suisse Group AG		1,266,800		23,142,887
Goldman Sachs Group, Inc. (The)		259,310		24,857,457
UBS AG		2,716,046		31,762,518

				79,762,862
Commercial Banks—4.7%
Banco Bilbao Vizcaya Argentaria SA		3,656,994		26,357,315
ICICI Bank Ltd., Sponsored ADR		961,860		31,173,883
Itau Unibanco Holding SA, ADR, Preference		1,642,800		22,867,776
Societe Generale SA, Cl. A¹		425,759		10,038,193
Sumitomo Mitsui Financial Group, Inc.		655,000		21,607,711

				112,044,878
Diversified Financial Services—0.9%
BM&F BOVESPA SA		4,348,400		21,931,437
Insurance—4.2%
Allianz SE		324,402		32,620,275
Dai-ichi Life Insurance Co.		21,622		25,046,857
Fidelity National Financial, Inc., Cl. A		687,020		13,232,005
Prudential plc		2,651,717		30,648,966

				101,548,103
Real Estate Management & Development—0.5%
DLF Ltd.		3,100,027		11,130,546
Health Care—10.5%
Biotechnology—3.7%
Amgen, Inc.		353,590		25,826,214
Amylin Pharmaceuticals, Inc.¹		1,101,708		31,101,217

6	OPPENHEIMER GLOBAL SECURITIES FUND/VA


	Shares		Value

Biotechnology Continued
Gilead Sciences, Inc.¹		299,030	$	15,334,258
Theravance, Inc.¹		598,130		13,290,449
ThromboGenics NV¹		131,644		3,548,491

				89,100,629
Health Care Equipment & Supplies—1.4%
Zimmer Holdings, Inc.		531,810		34,227,292
Health Care Providers & Services—3.1%
Aetna, Inc.		847,050		32,840,129
WellPoint, Inc.		657,315		41,930,124

				74,770,253
Pharmaceuticals—2.3%
Allergan, Inc.		93,810		8,683,992
Bayer AG		444,545		32,055,608
Roche Holding AG		74,409		12,825,488

				53,565,088
Industrials—12.3%
Aerospace & Defense—2.9%
Embraer SA, ADR		867,823		23,023,344
European Aeronautic Defense & Space Co.		1,297,340		45,871,526

				68,894,870
Air Freight & Logistics—0.2%
United Parcel Service, Inc., Cl. B		62,210		4,899,660
Building Products—1.8%
Assa Abloy AB, Cl. B		1,514,863		42,360,062
Construction & Engineering—0.6%
FLSmidth & Co. AS		282,798		15,507,318
Electrical Equipment—2.0%
Emerson Electric Co.		461,440		21,493,875
Nidec Corp.		212,700		16,130,004
Prysmian SpA		683,137		10,217,904

				47,841,783
Industrial Conglomerates—3.8%
3M Co.		397,600		35,624,960
Siemens AG		649,181		54,568,789

				90,193,749
Machinery—0.8%
Fanuc Ltd.		115,300		18,943,472
Road & Rail—0.2%
All America Latina Logistica		1,308,600		5,524,983
Information Technology—26.6%
Communications Equipment—4.4%
Juniper Networks, Inc.¹		1,426,760		23,270,456


	Shares		Value

Communications Equipment Continued
Telefonaktiebolaget LM Ericsson, B Shares		9,111,743	$	83,050,170

				106,320,626
Computers & Peripherals—0.4%
Fusion-io, Inc.¹		422,440		8,824,772
Electronic Equipment & Instruments—3.6%
Hoya Corp.		686,800		15,132,839
Keyence Corp.		109,311		27,034,582
Kyocera Corp.		172,300		14,877,598
Murata Manufacturing Co. Ltd.		553,500		29,035,646

				86,080,665
Internet Software & Services—5.7%
eBay, Inc.¹		1,791,000		75,239,910
Facebook, Inc., Cl. A¹		607,960		18,919,715
Google, Inc., Cl. A¹		72,900		42,287,103

				136,446,728
IT Services—1.0%
Infosys Ltd.		557,544		25,280,203
Semiconductors & Semiconductor Equipment—4.6%
Altera Corp.		1,387,340		46,947,586
Maxim Integrated Products, Inc.		1,475,275		37,826,051
Taiwan Semiconductor Manufacturing Co. Ltd.¹		9,048,184		24,766,096

				109,539,733
Software—6.9%
Adobe Systems, Inc.¹		1,012,583		32,777,312
Intuit, Inc.		762,290		45,241,912
Microsoft Corp.		1,331,090		40,718,043
SAP AG		818,930		48,237,278

				166,974,545
Materials—1.4%
Chemicals—0.8%
Linde AG		125,495		19,546,895
Metals & Mining—0.6%
Iluka Resources Ltd.		1,165,200		13,653,912
Telecommunication Services—1.3%
Wireless Telecommunication Services—1.3%
KDDI Corp.		4,861		31,355,113
Utilities—0.6%
Electric Utilities—0.6%
Fortum OYJ		809,831		15,341,901

Total Common Stocks (Cost $1,869,289,545)				2,337,955,738

7	OPPENHEIMER GLOBAL SECURITIES FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Shares		Value

Preferred Stocks—1.6%
Bayerische Motoren Werke (BMW) AG, Preference (Cost $28,429,596)		771,969	$	38,084,140


	Shares			Value
Investment Company—0.9%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20% ^2,3
(Cost $22,142,619)		22,142,619		$	22,142,619
Total Investments, at Value (Cost $1,919,861,760)		99.9	%		2,398,182,497
Other Assets Net of Liabilities		0.1			1,307,988
Net Assets		100.0	%	$	2,399,490,485

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		36,459,796		121,959,315		136,276,492		22,142,619

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$22,142,619		$24,209

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:


Geographic Holdings	Value		Percent
United States	$	977,401,599		40.8	%
Germany		225,112,985		9.4
Japan		210,455,391		8.8
France		178,781,768		7.4
Sweden		125,410,232		5.2
Brazil		96,888,868		4.0
Switzerland		94,923,033		4.0
Mexico		88,773,626		3.7
Spain		86,239,582		3.6
United Kingdom		83,553,827		3.5
India		79,121,656		3.3
Italy		46,912,266		2.0
Denmark		31,215,245		1.3
Taiwan		24,766,096		1.0
Finland		15,341,901		0.6
Australia		13,653,912		0.6
Korea, Republic of South		13,428,868		0.6
Belgium		3,548,491		0.1
Argentina		2,653,151		0.1

Total	$	2,398,182,497		100.0	%

8	OPPENHEIMER GLOBAL SECURITIES FUND/VA


Foreign Currency Exchange Contracts as of June 29, 2012 are as follows:
Counterparty/Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
Deutsche Bank Securities Inc.:
Euro (EUR)		Buy		3,549	EUR		7/3/12	$	4,491,435	$	7,932	$	437
Euro (EUR)		Sell		3,110	EUR		7/3/12-7/5/12		3,935,809		427		6,927

											8,359		7,364
State Street:
Euro (EUR)		Buy		7,515	EUR		7/3/12		9,510,905		158,618		—
Euro (EUR)		Sell		7,950	EUR		7/3/12		10,061,185		—		167,794

											158,618		167,794

Total unrealized appreciation and depreciation										$	166,977	$	175,158

See accompanying Notes to Financial Statements.

9	OPPENHEIMER GLOBAL SECURITIES FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $1,897,719,141)	$	2,376,039,878
Affiliated companies (cost $22,142,619)		22,142,619
		2,398,182,497
Cash		381,726
Unrealized appreciation on foreign currency exchange contracts		166,977
Receivables and other assets:
Investments sold		13,996,743
Dividends		3,665,502
Other		219,976
Total assets		2,416,613,421
Liabilities
Unrealized depreciation on foreign currency exchange contracts		175,158
Payables and other liabilities:
Investments purchased		14,002,100
Shares of beneficial interest redeemed		2,271,529
Distribution and service plan fees		206,857
Transfer and shareholder servicing agent fees		190,927
Foreign capital gains tax		83,391
Shareholder communications		69,866
Trustees’ compensation		59,185
Other		63,923
Total liabilities		17,122,936
Net Assets	$	2,399,490,485
Composition of Net Assets
Par value of shares of beneficial interest	$	85,501
Additional paid-in capital		1,917,862,020
Accumulated net investment income		21,729,785
Accumulated net realized loss on investments and foreign currency transactions		(18,648,458	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		478,461,637
Net Assets	$	2,399,490,485
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,149,827,372 and 40,844,752 shares of beneficial interest outstanding)		$28.15
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,029,408,992 and 36,856,534 shares of beneficial interest outstanding)		$27.93
Class 3 Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $153,905,475 and 5,429,333 shares of beneficial interest outstanding)		$28.35
Class 4 Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $66,348,646 and 2,370,740 shares of beneficial interest outstanding)		$27.99

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER GLOBAL SECURITIES FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $3,801,383)	$	37,376,487
Affiliated companies		24,209
Interest		972
Total investment income		37,401,668
Expenses
Management fees		7,866,551
Distribution and service plan fees:
Service shares		1,312,995
Class 4 shares		88,116
Transfer and shareholder servicing agent fees:
Non-Service shares		600,153
Service shares		525,252
Class 3 shares		80,810
Class 4 shares		35,243
Shareholder communications:
Non-Service shares		21,398
Service shares		18,752
Class 3 shares		2,887
Class 4 shares		1,256
Custodian fees and expenses		117,043
Trustees’ compensation		29,374
Administration service fees		750
Other		72,796
Total expenses		10,773,376
Less waivers and reimbursements of expenses		(10,946	)
Net expenses		10,762,430
Net Investment Income		26,639,238
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments from unaffiliated companies		25,811,902
Foreign currency transactions		8,188,782
Net realized gain		34,000,684
Net change in unrealized appreciation/depreciation on:
Investments (net of foreign capital gains tax of $93,435)		90,330,813
Translation of assets and liabilities denominated in foreign currencies		(33,244,199	)
Net change in unrealized appreciation/depreciation		57,086,614

Net Increase in Net Assets Resulting from Operations	$	117,726,536

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

11	OPPENHEIMER GLOBAL SECURITIES FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	26,639,238		$	55,375,926
Net realized gain (loss)		34,000,684			(4,932,906	)
Net change in unrealized appreciation/depreciation		57,086,614			(266,645,479	)
Net increase (decrease) in net assets resulting from operations		117,726,536			(216,202,459	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(25,848,197	)		(17,234,287	)
Service shares		(20,625,132	)		(11,357,368	)
Class 3 shares		(3,444,499	)		(2,447,497	)
Class 4 shares		(1,338,372	)		(819,361	)
		(51,256,200	)		(31,858,513	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(47,502,354	)		(124,782,917	)
Service shares		(2,323,398	)		5,153,335
Class 3 shares		(8,943,764	)		(27,368,355	)
Class 4 shares		(4,002,187	)		(5,984,377	)
		(62,771,703	)		(152,982,314	)
Net Assets
Total increase (decrease)		3,698,633			(401,043,286	)
Beginning of period		2,395,791,852			2,796,835,138
End of period (including accumulated net investment income of $21,729,785 and $46,346,747, respectively)	$	2,399,490,485		$	2,395,791,852

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

12	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$27.46			$30.30			$26.50			$20.21			$36.60			$36.79
Income (loss) from investment operations:
Net investment income²		.33			.65			.33			.33			.55			.45
Net realized and unrealized gain (loss)		1.00			(3.11	)		3.85			6.94			(14.46	)		1.69
Total from investment operations		1.33			(2.46	)		4.18			7.27			(13.91	)		2.14
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.64	)		(.38	)		(.38	)		(.50	)		(.46	)		(.50	)
Distributions from net realized gain		—			—			—			(.48	)		(2.02	)		(1.83	)
Total dividends and/or distributions to shareholders		(.64	)		(.38	)		(.38	)		(.98	)		(2.48	)		(2.33	)
Net asset value, end of period		$28.15			$27.46			$30.30			$26.50			$20.21			$36.60
Total Return, at Net Asset Value³		4.87	%		(8.29	)%		15.96	%		39.77	%		(40.19	)%		6.32	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,149,827			$1,165,141			$1,410,764			$1,364,597			$1,150,113			$2,193,638
Average net assets (in thousands)		$1,206,928			$1,335,403			$1,336,110			$1,206,240			$1,679,720			$2,302,726
Ratios to average net assets:⁴
Net investment income		2.26	%		2.17	%		1.22	%		1.51	%		1.95	%		1.21	%
Total expenses⁵		0.75	%		0.76	%		0.76	%		0.75	%		0.65	%		0.65	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.75	%		0.76	%		0.76	%		0.75	%		0.65	%		0.65	%
Portfolio turnover rate		8	%		13	%		15	%		11	%		19	%		18	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.75	%
Year Ended December 30, 2011	0.76	%
Year Ended December 31, 2010	0.76	%
Year Ended December 31, 2009	0.75	%
Year Ended December 31, 2008	0.65	%
Year Ended December 31, 2007	0.65	%

See accompanying Notes to Financial Statements.

13	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$27.21			$30.04			$26.28			$20.02			$36.27			$36.49
Income (loss) from investment operations:
Net investment income²		.29			.56			.26			.27			.47			.33
Net realized and unrealized gain (loss)		1.00			(3.08	)		3.82			6.90			(14.32	)		1.72
Total from investment operations		1.29			(2.52	)		4.08			7.17			(13.85	)		2.05
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.57	)		(.31	)		(.32	)		(.43	)		(.38	)		(.44	)
Distributions from net realized gain		—			—			—			(.48	)		(2.02	)		(1.83	)
Total dividends and/or distributions to shareholders		(.57	)		(.31	)		(.32	)		(.91	)		(2.40	)		(2.27	)
Net asset value, end of period		$27.93			$27.21			$30.04			$26.28			$20.02			$36.27
Total Return, at Net Asset Value³		4.75	%		(8.53	)%		15.70	%		39.36	%		(40.33	)%		6.08	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,029,409		$	1,003,839		$	1,101,584		$	980,485		$	772,107		$	1,300,989
Average net assets (in thousands)	$	1,056,309		$	1,091,128		$	997,627		$	830,887		$	1,051,239		$	1,180,656
Ratios to average net assets:⁴
Net investment income		2.01	%		1.90	%		0.96	%		1.23	%		1.70	%		0.91	%
Total expenses⁵		1.00	%		1.01	%		1.01	%		1.00	%		0.90	%		0.89	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00	%		1.01	%		1.01	%		1.00	%		0.90	%		0.89	%
Portfolio turnover rate		8	%		13	%		15	%		11	%		19	%		18	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.00	%
Year Ended December 30, 2011	1.01	%
Year Ended December 31, 2010	1.01	%
Year Ended December 31, 2009	1.00	%
Year Ended December 31, 2008	0.90	%
Year Ended December 31, 2007	0.89	%

See accompanying Notes to Financial Statements.

14	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Class 3 Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$27.65			$30.50			$26.67			$20.34			$36.82			$36.99
Income (loss) from investment operations:
Net investment income²		.33			.66			.33			.33			.56			.45
Net realized and unrealized gain (loss)		1.01			(3.13	)		3.88			6.98			(14.56	)		1.71
Total from investment operations		1.34			(2.47	)		4.21			7.31			(14.00	)		2.16
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.64	)		(.38	)		(.38	)		(.50	)		(.46	)		(.50	)
Distributions from net realized gain		—			—			—			(.48	)		(2.02	)		(1.83	)
Total dividends and/or distributions to shareholders		(.64	)		(.38	)		(.38	)		(.98	)		(2.48	)		(2.33	)
Net asset value, end of period		$28.35			$27.65			$30.50			$26.67			$20.34			$36.82
Total Return, at Net Asset Value³		4.88	%		(8.27	)%		15.97	%		39.70	%		(40.19	)%		6.34	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$153,905			$158,343			$202,621			$206,356			$175,971			$361,621
Average net assets (in thousands)		$162,514			$187,804			$196,495			$182,553			$269,650			$391,270
Ratios to average net assets:⁴
Net investment income		2.25	%		2.17	%		1.22	%		1.49	%		1.95	%		1.22	%
Total expenses⁵		0.75	%		0.76	%		0.76	%		0.75	%		0.65	%		0.65	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.75	%		0.76	%		0.76	%		0.75	%		0.65	%		0.65	%
Portfolio turnover rate		8	%		13	%		15	%		11	%		19	%		18	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.75	%
Year Ended December 30, 2011	0.76	%
Year Ended December 31, 2010	0.76	%
Year Ended December 31, 2009	0.75	%
Year Ended December 31, 2008	0.65	%
Year Ended December 31, 2007	0.65	%

See accompanying Notes to Financial Statements.

15	OPPENHEIMER GLOBAL SECURITIES FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Class 4 Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$27.26			$30.08			$26.32			$20.03			$36.28			$36.49
Income (loss) from investment operations:
Net investment income²		.29			.57			.26			.27			.47			.34
Net realized and unrealized gain (loss)		1.00			(3.08	)		3.82			6.92			(14.34	)		1.70
Total from investment operations		1.29			(2.51	)		4.08			7.19			(13.87	)		2.04
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.56	)		(.31	)		(.32	)		(.42	)		(.36	)		(.42	)
Distributions from net realized gain		—			—			—			(.48	)		(2.02	)		(1.83	)
Total dividends and/or distributions to shareholders		(.56	)		(.31	)		(.32	)		(.90	)		(2.38	)		(2.25	)
Net asset value, end of period		$27.99			$27.26			$30.08			$26.32			$20.03			$36.28
Total Return, at Net Asset Value³		4.75	%		(8.49	)%		15.67	%		39.38	%		(40.35	)%		6.06	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$66,349			$68,469			$81,866			$78,043			$63,099			$123,542
Average net assets (in thousands)		$70,875			$78,655			$76,519			$66,965			$93,909			$122,385
Ratios to average net assets:⁴
Net investment income		2.01	%		1.93	%		0.97	%		1.22	%		1.69	%		0.93	%
Total expenses⁵		1.00	%		1.01	%		1.01	%		1.00	%		0.91	%		0.90	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00	%		1.01	%		1.01	%		1.00	%		0.91	%		0.90	%
Portfolio turnover rate		8	%		13	%		15	%		11	%		19	%		18	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.00	%
Year Ended December 30, 2011	1.01	%
Year Ended December 31, 2010	1.01	%
Year Ended December 31, 2009	1.00	%
Year Ended December 31, 2008	0.91	%
Year Ended December 31, 2007	0.90	%

See accompanying Notes to Financial Statements.

16	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS June 29, 2012 / Unaudited

1. Significant Accounting Policies

Oppenheimer Global Securities Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek long-term capital appreciation by investing a substantial portion of its assets in securities of foreign issuers, “growth-type” companies, cyclical industries and special situations that are considered to have appreciation possibilities. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The Fund offers Non-Service, Service, Class 3 and Class 4 shares. All classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The classes of shares being designated as Service shares and Class 4 shares are subject to a distribution and service plan. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. The Fund assesses a 1% fee on the proceeds of Class 3 and Class 4 shares that are redeemed (either by selling or exchanging to another Oppenheimer fund or other investment option offered through your variable life insurance or variable annuity contract) within 60 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital.

The following is a summary of significant accounting policies consistently followed by the Fund.

17	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

During the fiscal year ended December 30, 2011, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $4,541,346. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2017	$	17,214,823
No expiration		6,482,606

Total	$	23,697,429

As of June 29, 2012, it is estimated that the Fund will have no capital loss carryforwards. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $23,697,429 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	1,948,813,629


Gross unrealized appreciation	$	605,865,086
Gross unrealized depreciation		(156,442,909)

Net unrealized appreciation	$	449,422,177

18	OPPENHEIMER GLOBAL SECURITIES FUND/VA

Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

19	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

20	OPPENHEIMER GLOBAL SECURITIES FUND/VA

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard Inputs Generally Considered by Third-party Pricing Vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

21	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	290,522,695	$	121,893,950		$	—	$	412,416,645
Consumer Staples		208,006,774		29,136,795			—		237,143,569
Energy		25,275,885		71,507,561			—		96,783,446
Financials		144,711,524		181,706,302			—		326,417,826
Health Care		219,607,654		32,055,608			—		251,663,262
Industrials		136,438,348		157,727,549			—		294,165,897
Information Technology		503,340,308		136,126,964			—		639,467,272
Materials		—		33,200,807			—		33,200,807
Telecommunication Services		—		31,355,113			—		31,355,113
Utilities		15,341,901		—			—		15,341,901
Preferred Stocks		—		38,084,140			—		38,084,140
Investment Company		22,142,619		—			—		22,142,619

Total Investments, at Value		1,565,387,708		832,794,789			—		2,398,182,497
Other Financial Instruments:
Foreign currency exchange contracts		—		166,977			—		166,977

Total Assets	$	1,565,387,708	$	832,961,766		$	—	$	2,398,349,474

Liabilities Table
Other Financial Instruments:
Foreign currency exchange contracts	$	—	$	(175,158	)	$	—	$	(175,158	)

Total Liabilities	$	—	$	(175,158	)	$	—	$	(175,158	)

22	OPPENHEIMER GLOBAL SECURITIES FUND/VA

The table below shows the significant transfers between Level 1 and Level 2. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers into Level 1*		Transfers out of Level 1**			Transfers into Level 2**		Transfers out of Level 2*
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	—	$	(73,681,595	)	$	73,681,595	$	—
Consumer Staples		—		(28,864,374	)		28,864,374		—
Energy		—		(28,057,704	)		28,057,704		—
Financials		26,128,476		(132,340,094	)		132,340,094		(26,128,476	)
Health Care		—		(28,422,343	)		28,422,343		—
Industrials		45,187,675		(136,239,282	)		136,239,282		(45,187,675	)
Information Technology		94,139,824		(139,391,318	)		139,391,318		(94,139,824	)
Materials		—		(18,670,356	)		18,670,356		—
Telecommunication Services		—		(31,261,466	)		31,261,466		—
Utilities		17,229,805		—			—		(17,229,805	)

Total Assets	$	182,685,780	$	(616,928,532	)	$	616,928,532	$	(182,685,780	)

*Transferred from Level 2 to Level 1 due to the presence of a readily available unadjusted quoted market price. As of the prior reporting period end, these securities were absent of a readily available unadjusted quoted market price due to a significant event occurring before the Fund’s assets were valued but after the close of the securities’ respective exchanges.

**Transferred from Level 1 to Level 2 because of the absence of a readily available unadjusted quoted market price due to a significant event occurring before the Fund’s assets were valued but after the close of the securities’ respective exchanges.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		915,084		$	26,762,504			2,898,558		$	85,697,523
Dividends and/or distributions reinvested		923,150			25,848,197			544,183			17,234,287
Redeemed		(3,417,538	)		(100,113,055	)		(7,582,244	)		(227,714,727	)

Net decrease		(1,579,304	)	$	(47,502,354	)		(4,139,503	)	$	(124,782,917	)


Service Shares
Sold		2,004,576		$	57,683,021			5,113,489		$	150,060,254
Dividends and/or distributions reinvested		742,178			20,625,132			361,125			11,357,368
Redeemed		(2,775,946	)		(80,631,551	)		(5,264,551	)		(156,264,287	)

Net increase (decrease)		(29,192	)	$	(2,323,398	)		210,063		$	5,153,335


Class 3 Shares
Sold		68,094		$	2,005,083			210,150		$	6,434,653
Dividends and/or distributions reinvested		122,145			3,444,499			76,748			2,447,497
Redeemed		(487,480	)		(14,393,346	)¹		(1,203,693	)		(36,250,505	)²

Net decrease		(297,241	)	$	(8,943,764	)		(916,795	)	$	(27,368,355	)

23	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. Shares of Beneficial Interest Continued


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Class 4 Shares
Sold		41,291		$	1,340,646			153,872		$	4,648,188
Dividends and/or distributions reinvested		48,073			1,338,372			26,011			819,361
Redeemed		(230,210	)		(6,681,205	)¹		(389,690	)		(11,451,926	)²

Net decrease		(140,846	)	$	(4,002,187	)		(209,807	)	$	(5,984,377	)

1. Net of redemption fees of $2,066 and $786 for Class 3 and Class 4, respectively.

2. Net of redemption fees of $1,073 and $1,794 for Class 3 and Class 4, respectively.

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	207,842,711	$	278,592,783

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Distribution and Service Plan for Service Shares and Class 4 Shares. The Fund has adopted a Distribution and Service Plan (the “Plan”) in accordance with Rule 12b-1 under the Investment Company Act of 1940 for Service shares and Class 4 shares to pay OppenheimerFunds Distributor, Inc. (the “Distributor”), for distribution related services, personal service and account maintenance for the Fund’s Service shares and Class 4 shares. Under the Plan, payments are made periodically at an annual rate of 0.25% of the daily net assets of Service shares and Class 4 shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares and Class 4 shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares and Class 4 shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

24	OPPENHEIMER GLOBAL SECURITIES FUND/VA

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Risk Exposures and the Use of Derivative Instruments

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

25	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

Valuations of derivative instruments as of June 29, 2012 are as follows:

Asset Derivatives

Liability Derivatives

Derivatives Not
Accounted for as
Hedging Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Foreign exchange contracts

Unrealized appreciation on foreign currency exchange contracts

$166,977

Unrealized depreciation on foreign currency exchange contracts

$175,158

26	OPPENHEIMER GLOBAL SECURITIES FUND/VA

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Foreign currency transactions
Foreign exchange contracts		$27,787

Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Translation of assets and liabilities denominated in foreign currencies
Foreign exchange contracts		$(8,181	)

Foreign Currency Exchange Contracts

The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.

During the six months ended June 29, 2012, the Fund had daily average contract amounts on forward foreign currency contracts to buy and sell of $2,053,633 and $3,034,145, respectively.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty will default.

7. Pending Litigation

27	OPPENHEIMER GLOBAL SECURITIES FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

7. Pending Litigation Continued

Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

28	OPPENHEIMER GLOBAL SECURITIES FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Global Securities Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting the Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		33,998,517
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

73,480,280

6,518,185

3,982,980

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

74,114,746

6,318,655

3,548,044

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

73,185,000

6,477,746

4,318,700

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

73,206,034

6,497,182

4,278,229

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

73,729,848

6,587,137

3,664,460

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

73,185,831

6,778,168

4,017,446

N/A

29	OPPENHEIMER GLOBAL SECURITIES FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited / Continued

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

73,795,656

6,420,158

3,765,632

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

73,687,494

6,546,579

3,747,373

N/A

2h: Proposal to remove miscellaneous fundamental policy relating to investment strategy restriction

For

Against

Abstain

Broker Non Vote

73,096,953

6,812,377

4,072,115

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

72,595,371

6,784,455

4,601,619

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

73,362,485

6,655,630

3,963,330

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

30	OPPENHEIMER GLOBAL SECURITIES FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

31	OPPENHEIMER GLOBAL SECURITIES FUND/VA

OPPENHEIMER GLOBAL SECURITIES FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Rajeev Bhaman, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firms.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

High Income Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER HIGH INCOME FUND/VA

Portfolio Manager: Joseph Welsh, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	7.52%
Service Shares	7.16
Class 3 Shares	7.46
Class 4 Shares	7.04
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	0.14%	–20.78%	–6.83%
Service Shares	–0.64	–20.79	–6.95

	1-Year	5-Year	Since Inception (5/1/07)
Class 3 Shares	0.16%	–20.67%	–20.16%
Class 4 Shares	–0.16	–20.67	–20.18
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.98%		0.75%
Service Shares	1.23		1.00
Class 3 Shares	0.98		0.75
Class 4 Shares	1.23		1.00


Credit Rating Breakdown	NRSRO Only Total
AAA		1.9	%
BBB		2.6
BB		24.5
B		52.3
CCC		15.8
Unrated		2.9
Total		100.0	%

The percentages above are based on the market value of the Fund’s securities as of June 29, 2012, and are subject to change. Except for securities labeled “Unrated” and except for certain securities issued or guaranteed by a foreign sovereign, all securities have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest S&P equivalent rating is used. Unrated securities issued or guaranteed by a foreign sovereign are assigned a credit rating equal to the highest NRSRO rating assigned to that foreign sovereign. Fund assets invested in Oppenheimer Institutional Money Market Fund are assigned that fund’s S&P rating, which is currently AAA. For the purposes of this Credit Allocation table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories, which include AAA, AA, A and BBB. Unrated securities do not necessarily indicate low credit quality, and may or may not be the equivalent of investment-grade. Please consult the Fund’s prospectus and Statement of Additional Information for further information.


Corporate Bonds & Notes—Top Ten Industries
Media		9.5%
Oil, Gas & Consumable Fuels		8.2
Hotels, Restaurants & Leisure		6.4
Aerospace & Defense		3.5
Health Care Providers & Services		3.3
Capital Markets		3.2
Diversified Telecommunication Services		3.1
Energy Equipment & Services		3.1
Food Products		3.1
Machinery		2.9

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER HIGH INCOME FUND/VA

FUND PERFORMANCE DISCUSSION

Economic and Market Environment

The period began during a time of improved market sentiment in which the United States managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets and historically riskier asset classes over the first three months of 2012. The rebound across risk markets gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (“LTRO”) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

However, the second quarter was a volatile time for global markets. The fear of contagion from the worsening European sovereign debt crisis and a recession across much of Europe drove negative market sentiment, particularly over May and June. Very high unemployment, soaring debt and higher borrowing costs in Greece, Spain and Italy contributed to serious questions over how to implement austerity measures and restructure debt or instead take a different tact and provide some or all of those countries with additional funds. Perhaps most worrisome of all to investors was the possibility of Greece pulling out of the euro and its ramifications for the future of the Eurozone and its common currency. In the U.S., slower than expected first quarter growth also contributed to a sell-off in the U.S. stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. The Fed announced the continuation of Operation Twist in response to an uneven domestic economic picture, yet, the U.S. housing market appears to be bottoming. Despite risk aversion stemming from Europe, the high yield bond market witnessed steady inflows during the quarter and reached $19.8 billion year-to-date according to AMG Data Services.

Fund Performance Discussion

During the six-month reporting period, the Fund’s Non-Service shares produced a return of 7.52%. In comparison, the JPMorgan Domestic High Yield Index returned 7.36% and the BofA Merrill Lynch High Yield Master Index returned 7.02%¹. The Fund maintained its focus on higher-yielding (lower credit quality) securities, which benefited performance particularly over the first half of the reporting period amid the rally in risk assets. While the performance of the Fund slowed over the volatile second half of the reporting period, absolute performance was still positive during that time.

The best performing securities of the Fund included broadcasting; chemicals; gaming, lodging and leisure; financial; paper and packaging; housing; and transportation. While most areas of the Fund produced positive absolute results this period, the most significant detractors were investments in utilities and diversified media.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

1. June 29, 2012 was the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes to Financial Statements. Index returns are calculated through June 30, 2012. December 30, 2011 was the last business day of the Fund’s 2011 fiscal year.

3	OPPENHEIMER HIGH INCOME FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.

4	OPPENHEIMER HIGH INCOME FUND/VA


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,075.20	$	3.86
Service shares		1,000.00		1,071.60		5.13
Class 3		1,000.00		1,074.60		3.85
Class 4		1,000.00		1,070.40		5.13

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,021.02		3.75
Service shares		1,000.00		1,019.78		5.01
Class 3		1,000.00		1,021.02		3.75
Class 4		1,000.00		1,019.78		5.01


Class	Expense Ratios
Non-Service Shares		0.75	%
Service shares		1.00
Class 3		0.75
Class 4		1.00

5	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Principal Amount		Value

Corporate Loans—0.4%
Autoparts Holdings Ltd., Sr. Sec. Credit Facilities 1st Lien Term Loan, 5%, 7/21/17^1,2	$	214,460	$	207,356
Chesapeake Energy Corp., Sr. Sec. Credit Facilities Term Loan, 7%, 12/2/17^1,2		280,000		277,900

Total Corporate Loans (Cost $484,154)				485,256
Loan Participations—5.8%
Atlantic Broadband Finance LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 9.75%, 9/20/19¹		190,000		188,496
Brock Holdings III, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 10%, 2/15/18¹		155,000		153,450
Cengage Learning Holdings II LP, Sr. Sec. Credit Facilities 1st Lien Exit Term Loan, 5.74%, 7/5/17¹		447,945		387,262
Clear Channel Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 3.889%, 1/29/16¹		452,763		361,289
Crestwood Holdings LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 9.75%, 3/8/18¹		280,000		281,983
Entegra Holdings LLC, Sr. Sec. Credit Facilities 3rd Lien Term Loan: Tranche B, 3.709%, 10/19/15^1,3		459,325		249,184
Tranche B, 3.709%, 10/19/15^1,2,3		588,704		319,372
iStar Financial, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche A2, 7%, 3/19/17¹		565,000		565,565
Lone Star Intermediate Super Holdings LLC, Sr. Sec. Credit Facilities Term Loan, 11%, 8/7/19¹		340,000		349,690
Nuveen Investments, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 8.25%, 3/1/19¹		640,000		642,400
OneLink Communications/San Juan Cable LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, Tranche B, 10%, 6/9/18¹		420,000		421,050
PQ Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 6.739%, 7/30/15¹		625,000		595,964
Revel Entertainment LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan: 7.50%, 2/17/17^1,2		85,000		73,100
9%, 2/17/17^1,2		485,000		417,100
Springleaf Financial Services, Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.50%, 5/10/17¹		305,000		288,007


	Principal Amount		Value

Loan Participations Continued
Texas Competitive Electric Holdings Co. LLC, Non-Extended Sr. Sec. Credit Facilities 1st Lien Term Loan: 3.739%, 10/10/14¹	$	180,000	$	113,379
3.741%, 10/10/14¹		445,000		280,299
Walter Investment Management Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 12.50%, 9/28/16¹		655,000		676,833

Total Loan Participations (Cost $6,475,345)				6,364,423
Corporate Bonds and Notes—88.2%
Consumer Discretionary—23.1%
Auto Components—2.6%
Goodyear Tire & Rubber Co. (The), 8.25% Sr. Unsec. Unsub. Nts., 8/15/20		610,000		648,888
Tower Automotive Holdings USA LLC/TA Holdings Finance, Inc., 10.625% Sr. Sec. Nts., 9/1/17⁴		1,335,000		1,421,775
UCI International, Inc., 8.625% Sr. Unsec. Nts., 2/15/19		170,000		171,913
Visteon Corp., 6.75% Sr. Unsec. Nts., 4/15/19		690,000		674,475

				2,917,051
Automobiles—0.1%
Jaguar Land Rover plc, 7.75% Sr. Unsec. Bonds, 5/15/18⁴		110,000		113,850
Diversified Consumer Services—0.4%
Monitronics International, Inc., 9.125% Sr. Nts., 4/1/20⁴		280,000		270,200
ServiceMaster Co., 8% Sr. Unsec. Unsub. Nts., 2/15/20		170,000		185,938

				456,138
Hotels, Restaurants & Leisure—6.4%
Boyd Gaming Corp., 9.125% Sr. Unsec. Nts., 12/1/18		530,000		548,550
Burger King Corp., 9.875% Sr. Unsec. Unsub. Nts., 10/15/18		245,000		280,219
Chester Downs & Marina LLC, 9.25% Sr. Sec. Nts., 1/15/20⁴		275,000		287,375
CKE Restaurants, Inc., 11.375% Sec. Nts., 7/15/18		245,000		281,138
Equinox Holdings, Inc., 9.50% Sr. Sec. Nts., 2/1/16⁴		510,000		543,150
Harrah’s Operating Co., Inc., 10% Sr. Sec. Nts., 12/15/18		2,703,000		1,861,691
HOA Restaurants Group LLC/HOA Finance Corp., 11.25% Sr. Sec. Nts., 4/1/17⁴		640,000		596,000

6	OPPENHEIMER HIGH INCOME FUND/VA


	Principal Amount		Value

Hotels, Restaurants & Leisure Continued
Isle of Capri Casinos, Inc., 7.75% Sr. Unsec. Unsub. Nts., 3/15/19	$	585,000	$	602,550
Landry’s, Inc., 9.375% Sr. Unsec. Nts., 5/1/20⁴		555,000		566,794
MGM Mirage, Inc., 6.625% Sr. Unsec. Nts., 7/15/15		955,000		988,425
Penn National Gaming, Inc., 8.75% Sr. Unsec. Sub. Nts., 8/15/19		435,000		483,938

				7,039,830
Household Durables—1.7%
Beazer Homes USA, Inc.: 6.875% Sr. Unsec. Nts., 7/15/15		280,000		270,200
9.125% Sr. Unsec. Nts., 5/15/19		790,000		693,225
Jarden Corp., 6.125% Sr. Unsec. Nts., 11/15/22		65,000		68,900
Libbey Glass, Inc., 6.875% Sr. Sec. Nts., 5/15/20⁴		210,000		216,825
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA:
9% Sr. Nts., 5/15/18⁴		295,000		290,575
9% Sr. Nts., 4/15/19⁴		285,000		285,713

				1,825,438
Leisure Equipment & Products—0.5%
FGI Operating Co. LLC/FGI Finance, Inc., 7.875% Sr. Sec. Nts., 5/1/20⁴		555,000		579,975
Media—9.5%
Affinion Group Holdings, Inc., 11.625% Sr. Unsec. Nts., 11/15/15		325,000		258,375
Affinion Group, Inc., 7.875% Sr. Unsec. Nts., 12/15/18		760,000		651,700
AMC Entertainment, Inc., 8.75% Sr. Unsec. Nts., 6/1/19		265,000		285,538
Belo (A.H.) Corp., 7.75% Sr. Unsec. Unsub. Debs., 6/1/27		719,000		708,215
Cequel Communications Holdings I LLC, 8.625% Sr. Unsec. Nts., 11/15/17⁴		505,000		546,663
Clear Channel Communications, Inc., 5.75% Sr. Unsec. Unsub. Nts., 1/15/13		860,000		856,775
CSC Holdings LLC, 6.75% Sr. Unsec. Nts., 11/15/21⁴		520,000		556,400
Cumulus Media Holdings, Inc., 7.75% Sr. Unsec. Unsub. Nts., 5/1/19		350,000		331,625
DISH DBS Corp.: 5.875% Sr. Unsec. Nts., 7/15/22⁴		210,000		213,150
7.875% Sr. Unsec. Nts., 9/1/19		605,000		700,288
Entravision Communications Corp., 8.75% Sr. Sec. Nts., 8/1/17		507,000		539,955


	Principal Amount		Value

Media Continued
Gray Television, Inc., 10.50% Sr. Sec. Nts., 6/29/15	$	520,000	$	543,400
Lamar Media Corp., 5.875% Sr. Sub. Nts., 2/1/22⁴		220,000		226,600
Newport Television LLC/NTV Finance Corp., 13.75% Sr. Nts., 3/15/17⁴		624,232		649,201
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc., 8.875% Sec. Nts., 4/15/17		515,000		546,544
Sinclair Television Group, Inc., 8.375% Sr. Unsec. Nts., 10/15/18		705,000		771,975
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 7.50% Sr. Sec. Nts., 3/15/19		395,000		420,675
Univision Communications, Inc., 7.875% Sr. Sec. Nts., 11/1/20⁴		250,000		268,750
UPCB Finance V Ltd., 7.25% Sr. Sec. Nts., 11/15/21⁴		350,000		367,500
UPCB Finance VI Ltd., 6.875% Sr. Sec. Nts., 1/15/22⁴		560,000		574,000
Virgin Media Finance plc:
5.25% Sr. Unsec. Unsub. Nts., 2/15/22		215,000		220,913
8.375% Sr. Unsec. Unsub. Nts., 10/15/19		245,000		276,544

				10,514,786
Specialty Retail—1.5%
Burlington Coat Factory Warehouse Corp., 10% Sr. Unsec. Nts., 2/15/19		140,000		149,100
J. Crew Group, Inc., 8.125% Sr. Unsec. Nts., 3/1/19		275,000		285,313
Limited Brands, Inc., 5.625% Sr. Nts., 2/15/22		560,000		579,600
Michaels Stores, Inc., 7.75% Sr. Unsec. Nts., 11/1/18		45,000		47,700
Sally Holdings LLC/Sally Capital, Inc., 6.875% Sr. Unsec. Nts., 11/15/19		515,000		562,638

				1,624,351
Textiles, Apparel & Luxury Goods—0.4%
Levi Strauss & Co., 7.625% Sr. Unsec. Unsub. Nts., 5/15/20		265,000		282,888
Quiksilver, Inc., 6.875% Sr. Unsec. Nts., 4/15/15		210,000		203,700

				486,588
Consumer Staples—3.9%
Food & Staples Retailing—0.2%
Rite Aid Corp., 7.50% Sr. Sec. Nts., 3/1/17		265,000		271,625
Food Products—3.1%
American Seafoods Group LLC, 10.75% Sr. Sub. Nts., 5/15/16⁴		620,000		585,900

7	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Food Products Continued
ASG Consolidated LLC, 12.075% Sr. Nts., 5/15/17^3,4	$	1,292,721	$	1,034,177
Bumble Bee Acquisition Corp., 9% Sr. Sec. Nts., 12/15/17⁴		471,000		472,178
Post Holdings, Inc., 7.375% Sr. Unsec. Nts., 2/15/22⁴		535,000		565,763
Southern States Cooperative, Inc., 11.25% Sr. Nts., 5/15/15⁴		690,000		727,950

				3,385,968
Household Products—0.3%
Spectrum Brands Holdings, Inc., 9.50% Sr. Sec. Nts., 6/15/18		250,000		283,750
Personal Products—0.1%
NBTY, Inc., 9% Sr. Unsec. Nts., 10/1/18		125,000		138,750
Tobacco—0.2%
Alliance One International, Inc., 10% Sr. Unsec. Nts., 7/15/16		260,000		261,950
Energy—11.3%
Energy Equipment & Services—3.1%
Forbes Energy Services Ltd., 9% Sr. Unsec. Nts., 6/15/19		335,000		318,250
Global Geophysical Services, Inc., 10.50% Sr. Unsec. Nts., 5/1/17		425,000		406,938
Hercules Offshore, Inc., 7.125% Sr. Sec. Nts., 4/1/17⁴		280,000		271,950
Hornbeck Offshore Services, Inc., 5.875% Sr. Unsec. Nts., 4/1/20⁴		565,000		563,588
Offshore Group Investments Ltd.: 11.50% Sr. Sec. Nts., 8/1/15⁴		225,000		245,250
11.50% Sr. Sec. Nts., 8/1/15		765,000		833,850
Precision Drilling Corp., 6.625% Sr. Unsec. Nts., 11/15/20		525,000		543,375
SESI LLC, 6.375% Sr. Unsec. Nts., 5/1/19		200,000		210,500

				3,393,701
Oil, Gas & Consumable Fuels—8.2%
Antero Resources Finance Corp., 9.375% Sr. Unsec. Nts., 12/1/17		585,000		649,350
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp., 8.75% Sr. Unsec. Sub. Nts., 6/15/18		440,000		471,900
Bill Barrett Corp., 7.625% Sr. Unsec. Unsub. Nts., 10/1/19		220,000		221,100
BreitBurn Energy Partners LP/BreitBurn Finance Corp., 8.625% Sr. Unsec. Nts., 10/15/20		665,000		706,563
Chaparral Energy, Inc., 9.875% Sr. Unsec. Nts., 10/1/20		510,000		569,288
Chesapeake Midstream Partners LP/CHKM Finance Corp., 6.125% Sr. Unsec. Unsub. Nts., 7/15/22		540,000		531,900


	Principal Amount		Value

Oil, Gas & Consumable Fuels Continued
Cimarex Energy Co., 5.875% Sr. Unsec. Unsub. Nts., 5/1/22	$	850,000	$	885,063
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp., 8.50% Sr. Unsec. Unsub. Nts., 12/15/19		105,000		109,463
Continental Resources, Inc., 5% Sr. Unsec. Nts., 9/15/22⁴		340,000		345,525
James River Coal Co., 7.875% Sr. Unsec. Unsub. Nts., 4/1/19		395,000		201,450
Linn Energy LLC/Linn Energy Finance Corp., 8.625% Sr. Unsec. Nts., 4/15/20		735,000		795,638
MEG Energy Corp., 6.50% Sr. Unsec. Nts., 3/15/21⁴		795,000		815,869
Murray Energy Corp., 10.25% Sr. Sec. Nts., 10/15/15⁴		380,000		335,350
Navios Maritime Acquisition Corp., 8.625% Sr. Sec. Nts., 11/1/17		195,000		182,325
Quicksilver Resources, Inc.:
8.25% Sr. Unsec. Nts., 8/1/15		280,000		263,200
11.75% Sr. Nts., 1/1/16		395,000		386,606
Samson Investment Co., 9.75% Sr. Unsec. Nts., 2/15/20⁴		425,000		423,406
SandRidge Energy, Inc.: 8.75% Sr. Unsec. Nts., 1/15/20		255,000		267,113
9.875% Sr. Unsec. Nts., 5/15/16		305,000		335,500
SM Energy Co., 6.50% Sr. Nts., 1/1/23⁴		270,000		272,363
Venoco, Inc., 8.875% Sr. Unsec. Nts., 2/15/19		345,000		315,675

				9,084,647
Financials—9.4%
Capital Markets—3.2%
Edgen Murray Corp., 12.25% Sr. Sec. Nts., 1/15/15		360,000		360,000
Nationstar Mortgage/Nationstar Capital Corp., 10.875% Sr. Unsec. Nts., 4/1/15		1,015,000		1,101,275
Nuveen Investments, Inc.: 5.50% Sr. Unsec. Nts., 9/15/15		235,000		213,850
10.50% Sr. Unsec. Unsub. Nts., 11/15/15		240,000		244,800
Pinafore LLC/Pinafore, Inc., 9% Sec. Nts., 10/1/18		790,000		882,825
Springleaf Finance Corp., 6.90% Nts., Series J, 12/15/17		370,000		297,154
Verso Paper Holdings LLC, 11.375% Sr. Unsec. Sub. Nts., Series B, 8/1/16		412,000		195,700
Verso Paper Holdings LLC/Verso Paper, Inc., 8.75% Sr. Sec. Nts., 2/1/19		625,000		250,000

				3,545,604

8	OPPENHEIMER HIGH INCOME FUND/VA


	Principal Amount		Value

Commercial Banks—0.4%
CIT Group, Inc., 7% Sec. Bonds, 5/2/17⁵	$	422,302	$	423,622
Consumer Finance—0.6%
Speedy Cash, Inc., 10.75% Sr. Sec. Nts., 5/15/18⁴		330,000		342,375
TMX Finance LLC/TitleMax Finance Corp., 13.25% Sr. Sec. Nts., 7/15/15		255,000		283,050

				625,425
Diversified Financial Services—0.8%
GMAC LLC, 8% Sr. Unsec. Nts., 11/1/31		240,000		282,600
PHH Corp., 9.25% Sr. Unsec. Unsub. Nts., 3/1/16		585,000		624,488

				907,088
Insurance—1.0%
International Lease Finance Corp.: 8.625% Sr. Unsec. Unsub. Nts., 9/15/15		410,000		454,588
8.75% Sr. Unsec. Unsub. Nts., 3/15/17		622,000		701,305

				1,155,893
Real Estate Investment Trusts—1.5%
DuPont Fabros Technology LP, 8.50% Sr. Unsec. Nts., 12/15/17		255,000		281,775
FelCor Escrow Holdings LLC, 6.75% Sr. Sec. Nts., 6/1/19		565,000		581,244
OMEGA Healthcare Investors, Inc., 6.75% Sr. Unsec. Nts., 10/15/22		695,000		745,388

				1,608,407
Real Estate Management & Development—1.9%
Ainsworth Lumber Co. Ltd., 11% Sr. Unsec. Unsub. Nts., 7/29/15^3,4		858,277		750,992
Realogy Corp.: 7.625% Sr. Sec. Nts., 1/15/20⁴		560,000		581,000
9% Sr. Sec. Nts., 1/15/20⁴		285,000		294,975
Wallace Theater Holdings, Inc., 12.50% Sr. Sec. Nts., 6/15/13^1,4		490,000		463,663

				2,090,630
Health Care—5.6%
Biotechnology—0.2%
Grifols SA, 8.25% Sr. Sec. Nts., 2/1/18		195,000		210,113
Health Care Equipment & Supplies—1.3%
Accellent, Inc., 10% Sr. Unsec. Sub. Nts., 11/1/17		325,000		274,625
Alere, Inc.: 7.875% Sr. Unsec. Unsub. Nts., 2/1/16		290,000		298,700
8.625% Sr. Unsec. Sub. Nts., 10/1/18		290,000		294,350
Biomet, Inc., 11.625% Sr. Unsec. Sub. Nts., 10/15/17		275,000		298,031
Chiron Merger Sub, Inc., 10.50% Sec. Nts., 11/1/18⁴		290,000		305,950

				1,471,656


	Principal Amount		Value

Health Care Providers & Services—3.3%
Catalent Pharma Solutions, Inc., 9.50% Sr. Unsec. Nts., 4/15/15	$	441,151	$	453,834
Fresenius Medical Care US Finance II, Inc.: 5.625% Sr. Unsec. Nts., 7/31/19⁴		180,000		188,100
5.875% Sr. Unsec. Nts., 1/31/22⁴		90,000		93,938
Gentiva Health Services, Inc., 11.50% Sr. Unsec. Unsub. Nts., 9/1/18		340,000		297,500
HealthSouth Corp., 8.125% Sr. Unsec. Unsub. Nts., 2/15/20		514,000		564,115
Kindred Healthcare, Inc., 8.25% Sr. Unsec. Nts., 6/1/19		620,000		578,150
Multiplan, Inc., 9.875% Sr. Nts., 9/1/18⁴		240,000		264,000
Oncure Holdings, Inc., 11.75% Sr. Sec. Nts., 5/15/17		315,000		226,800
PSS World Medical, Inc., 6.375% Sr. Unsec. Unsub. Nts., 3/1/22⁴		130,000		133,900
Radiation Therapy Services, Inc.: 8.875% Sec. Nts., 1/15/17⁴		295,000		284,675
9.875% Sr. Unsec. Sub. Nts., 4/15/17		250,000		196,875
US Oncology, Inc., Escrow Shares (related to 9.125% Sr. Sec. Nts., 8/15/17)⁶		435,000		8,700
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc., 8% Sr. Nts., 2/1/18		375,000		385,313

				3,675,900
Health Care Technology—0.1%
MedAssets, Inc., 8% Sr. Unsec. Nts., 11/15/18		75,000		79,500
Life Sciences Tools & Services—0.2%
Jaguar Holding Co./Jaguar Merger Sub, Inc., 9.50% Sr. Unsec. Nts., 12/1/19⁴		220,000		241,725
Pharmaceuticals—0.5%
DJO Finance LLC/DJO Finance Corp., 10.875% Sr. Unsec. Nts., 11/15/14		150,000		155,625
Valeant Pharmaceuticals International, Inc., 6.875% Sr. Unsec. Nts., 12/1/18⁴		190,000		197,363
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC, 7.75% Sr. Unsec. Nts., 9/15/18		145,000		156,238

				509,226
Industrials—13.1%
Aerospace & Defense—3.5%
BE Aerospace, Inc., 6.875% Sr. Nts., 10/1/20		240,000		266,400
DynCorp International, Inc., 10.375% Sr. Unsec. Nts., 7/1/17		1,085,000		933,100
Huntington Ingalls Industries, Inc., 7.125% Sr. Unsec. Unsub. Nts., 3/15/21		805,000		845,250

9	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Aerospace & Defense Continued
Kratos Defense & Security Solutions, Inc., 10% Sr. Sec. Nts., 6/1/17	$	267,000	$	289,028
Schaeffler Finance BV, 8.50% Sr. Sec. Nts., 2/15/19⁴		300,000		321,750
TransDigm, Inc., 7.75% Sr. Unsec. Sub. Nts., 12/15/18		480,000		529,200
Triumph Group, Inc., 8.625% Sr. Unsec. Nts., 7/15/18		650,000		724,750

				3,909,478
Air Freight & Logistics—0.5%
AMGH Merger Sub, Inc., 9.25% Sr. Sec. Nts., 11/1/18⁴		510,000		532,950
Airlines—0.5%
American Airlines 2011-2 Class A Pass-Through Trust, 8.625% Sec. Certificates, 4/15/23		543,468		570,641
Building Products—0.7%
Associated Materials LLC, 9.125% Sr. Sec. Nts., 11/1/17⁴		265,000		237,838
Ply Gem Industries, Inc., 13.125% Sr. Unsec. Sub. Nts., 7/15/14		535,000		544,363

				782,201
Commercial Services & Supplies—1.7%
R.R. Donnelley & Sons Co., 7.25% Sr. Nts., 5/15/18		1,130,000		1,081,975
STHI Holding Corp., 8% Sec. Nts., 3/15/18⁴		200,000		212,500
West Corp., 8.625% Sr. Unsec. Nts., 10/1/18		500,000		532,500

				1,826,975
Machinery—2.9%
Actuant Corp., 5.625% Sr. Unsec. Unsub. Nts., 6/15/22⁴		340,000		351,050
Cleaver-Brooks, Inc., 12.25% Sr. Sec. Nts., 5/1/16⁴		540,000		576,450
CNH Capital LLC, 6.25% Sr. Unsec. Nts., 11/1/16⁴		150,000		161,250
Manitowoc Co., Inc. (The), 8.50% Sr. Unsec. Nts., 11/1/20		755,000		819,175
Terex Corp., 8% Sr. Unsec. Sub. Nts., 11/15/17		540,000		562,950
Thermadyne Holdings Corp., 9% Sr. Sec. Nts., 12/15/17		505,000		518,888
Xerium Technologies, Inc., 8.875% Sr. Unsec. Nts., 6/15/18		335,000		265,488

				3,255,251


	Principal Amount		Value
Marine—0.9%
Marquette Transportation Co./Marquette Transportation Finance Corp., 10.875% Sec. Nts., 1/15/17	$	780,000	$	824,850
Navios Maritime Holdings, Inc., 8.875% Sr. Sec. Nts., 11/1/17		160,000		162,000

				986,850
Professional Services—0.2%
Altegrity, Inc., 10.50% Sr. Unsec. Sub. Nts., 11/1/15⁵		280,000		256,200
Road & Rail—1.4%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 8.25% Sr. Unsec. Unsub. Nts., 1/15/19		170,000		183,175
Hertz Corp. (The), 7.50% Sr. Unsec. Nts., 10/15/18		670,000		721,925
Western Express, Inc., 12.50% Sr. Sec. Nts., 4/15/15⁴		1,045,000		637,450

				1,542,550
Trading Companies & Distributors—0.8%
UR Financing Escrow Corp.: 7.375% Sr. Unsec. Nts., 5/15/20⁴		685,000		717,538
7.625% Sr. Unsec. Nts., 4/15/22⁴		170,000		178,500

				896,038
Information Technology—6.7%
Communications Equipment—0.9%
Avaya, Inc., 7% Sr. Sec. Nts., 4/1/19⁴		550,000		512,875
ViaSat, Inc., 6.875% Sr. Unsec. Unsub. Nts., 6/15/20⁵		253,000		256,795
Zayo Escrow Corp.: 8.125% Sr. Sec. Nts., 1/1/20		125,000		131,250
10.125% Sr. Unsec. Nts., 7/1/20⁴		80,000		85,400

				986,320
Computers & Peripherals—0.5%
Seagate HDD (Cayman), 7% Sr. Unsec. Nts., 11/1/21		470,000		508,775
Electronic Equipment & Instruments—0.7%
Anixter, Inc., 5.625% Sr. Unsec. Nts., 5/1/19		210,000		217,875
CDW LLC/CDW Finance Corp., 12.535% Sr. Unsec. Sub. Nts., 10/12/17		550,000		599,500

				817,375
Internet Software & Services—1.0%
ITC DeltaCom, Inc., 10.50% Sr. Sec. Nts., 4/1/16		1,035,000		1,107,450
IT Services—1.4%
Ceridian Corp., 11.25% Sr. Unsec. Nts., 11/15/15		535,000		516,275

10	OPPENHEIMER HIGH INCOME FUND/VA


	Principal Amount		Value

IT Services Continued
First Data Corp.: 8.875% Sr. Sec. Nts., 8/15/20⁴	$	255,000	$	277,313
9.875% Sr. Unsec. Nts., 9/24/15		265,000		269,638
12.625% Sr. Unsec. Nts., 1/15/21		475,000		477,969

				1,541,195
Semiconductors & Semiconductor Equipment—2.0%
Advanced Micro Devices, Inc., 7.75% Sr. Unsec. Nts., 8/1/20		775,000		856,375
Amkor Technologies, Inc., 6.625% Sr. Unsec. Nts., 6/1/21		265,000		265,663
Freescale Semiconductor, Inc.: 9.25% Sr. Sec. Nts., 4/15/18⁴		225,000		241,875
10.75% Sr. Unsec. Nts., 8/1/20		503,000		543,240
NXP BV/NXP Funding LLC, 9.75% Sr. Sec. Nts., 8/1/18⁴		245,000		280,525

				2,187,678
Software—0.2%
Lawson Software, Inc., 9.375% Sr. Nts., 4/1/19⁴		105,000		112,613
SunGard Data Systems, Inc., 7.375% Sr. Unsec. Nts., 11/15/18		160,000		172,400

				285,013
Materials—7.5%
Chemicals—2.1%
Ferro Corp., 7.875% Sr. Unsec. Nts., 8/15/18		260,000		254,800
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC: 8.875% Sr. Sec. Nts., 2/1/18		280,000		287,000
9% Sec. Nts., 11/15/20		380,000		329,650
Ineos Finance plc, 8.375% Sr. Sec. Bonds, 2/15/19⁴		440,000		456,500
LyondellBasell Industries NV, 6% Sr. Nts., 11/15/21⁴		440,000		485,100
Momentive Performance Materials, Inc., 9% Sec. Nts., 1/15/21		615,000		468,938
Scotts Miracle-Gro Co. (The), 6.625% Sr. Unsec. Unsub. Nts., 12/15/20		70,000		75,425

				2,357,413
Construction Materials—0.8%
Building Materials Corp. of America, 6.75% Sr. Nts., 5/1/21⁴		435,000		466,538
Ply Gem Industries, Inc., 8.25% Sr. Sec. Nts., 2/15/18		370,000		364,450

				830,988


	Principal Amount		Value

Containers & Packaging—1.3%
Consolidated Container Co. LLC/Consolidated Container Capital, Inc., 10.125% Sr. Unsec. Nts., 7/15/20²^,⁴	$	125,000	$	129,375
Polymer Group, Inc., 7.75% Sr. Sec. Nts., 2/1/19		650,000		689,813
Rock-Tenn Co., 4.45% Sr. Unsec. Nts., 3/1/19⁴		130,000		133,803
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75% Sr. Sec. Nts., 1/15/19⁴		550,000		420,750

				1,373,741
Metals & Mining—0.8%
Aleris International, Inc., 7.625% Sr. Unsec. Nts., 2/15/18		760,000		775,200
Novelis, Inc., 8.75% Sr. Unsec. Nts., 12/15/20		135,000		146,138

				921,338
Paper & Forest Products—2.5%
Appleton Papers, Inc., 10.50% Sr. Sec. Nts., 6/15/15⁴		985,000		1,058,875
Catalyst Paper Corp., 11% Sr. Sec. Nts., 12/15/16^4,6		1,117,000		552,915
Mercer International, Inc., 9.50% Sr. Unsec. Nts., 12/1/17		475,000		495,188
NewPage Corp., 11.375% Sr. Sec. Nts., 12/31/14⁶		600,000		393,000
Norske Skogindustrier ASA, 6.125% Unsec. Bonds, 10/15/15⁴		375,000		264,375

				2,764,353
Telecommunication Services—5.4%
Diversified Telecommunication Services—3.1%
Cincinnati Bell, Inc.: 8.25% Sr. Nts., 10/15/17		385,000		402,325
8.75% Sr. Unsec. Sub. Nts., 3/15/18		325,000		314,438
Frontier Communications Corp.: 8.25% Sr. Unsec. Nts., 4/15/17		270,000		291,600
8.50% Sr. Unsec. Nts., 4/15/20		180,000		191,700
Intelsat Bermuda Ltd.: 11.25% Sr. Unsec. Nts., 2/4/17		585,000		604,744
11.50% Sr. Unsec. Nts., 2/4/17³		710		736
Level 3 Financing, Inc., 9.375% Sr. Unsec. Unsub. Nts., 4/1/19		535,000		580,475
Wind Acquisition Finance SA, 7.25% Sr. Sec. Nts., 2/15/18⁴		560,000		492,800
Windstream Corp., 7.50% Sr. Unsec. Unsub. Nts., 6/1/22⁴		570,000		589,950

				3,468,768

11	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Wireless Telecommunication Services—2.3%
Cricket Communications, Inc., 7.75% Sr. Unsec. Nts., 10/15/20	$	700,000	$	672,000
MetroPCS Wireless, Inc., 6.625% Sr. Unsec. Nts., 11/15/20		545,000		538,188
Nextel Communications, Inc., 7.375% Sr. Nts., Series D, 8/1/15		590,000		593,688
Sprint Capital Corp., 8.75% Nts., 3/15/32		135,000		123,525
Sprint Nextel Corp., 9% Sr. Unsec. Nts., 11/15/18⁴		515,000		576,800

				2,504,201
Utilities—2.2%
Electric Utilities—0.5%
Energy Future Intermediate Holding Co. LLC, 10% Sr. Sec. Nts., 12/1/20		507,000		553,898
Energy Traders—1.2%
AES Corp. (The), 8% Sr. Unsec. Unsub. Nts., 10/15/17		245,000		279,913
Calpine Corp., 7.50% Sr. Sec. Nts., 2/15/21⁴		255,000		276,675
Energy Future Holdings Corp., 10% Sr. Sec. Nts., 1/15/20		530,000		568,425
First Wind Capital LLC, 10.25% Sr. Sec. Nts., 6/1/18⁴		75,000		75,375
Foresight Energy LLC, 9.625% Sr. Unsec. Nts., 8/15/17⁴		160,000		161,000

				1,361,388
Gas Utilities—0.5%
AmeriGas Finance LLC/AmeriGas Finance Corp., 6.75% Sr. Unsec. Nts., 5/20/20		545,000		557,263

Total Corporate Bonds and Notes (Cost $98,200,442)				97,609,478


	Shares			Value

Preferred Stocks—0.9%
Ally Financial, Inc., 7% Cum., Series G, Non-Vtg.		584		$	520,326
Greektown Superholdings, Inc., Cv., Series A-1⁷		7,236			510,138

Total Preferred Stocks (Cost $1,253,803)					1,030,464
Common Stocks—1.4%
American Media Operations, Inc.⁷		58,065			754,845
Dana Holding Corp.		17,634			225,892
Global Aviation Holdings, Inc.⁷		300			—
Greektown Superholdings, Inc., Series A-1⁷		874			45,448
Kaiser Aluminum Corp.		458			23,743
LyondellBasell Industries NV, Cl. A		6,926			278,910
Magellan Health Services, Inc.⁷		33			1,496
Orbcomm, Inc.⁷		1,127			3,648
Resolute Forest Products⁷		18,220			210,988

Total Common Stocks (Cost $3,748,890)					1,544,970

	Units
Rights, Warrants and Certificates—0.0%
MediaNews Group, Inc. Wts., Strike Price $0.001, Exp. 3/19/17⁷
(Cost $3,168,495)		11,017			396

	Shares
Investment Company—1.8%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^8,9
(Cost $2,035,961)		2,035,961			2,035,961
Total Investments, at Value (Cost $115,367,090)		98.5	%		109,070,948
Other Assets Net of Liabilities		1.5			1,673,552
Net Assets		100.0	%	$	110,744,500

12	OPPENHEIMER HIGH INCOME FUND/VA

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Represents the current interest rate for a variable or increasing rate security.

2. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after June 29, 2012. See Note 1 of the accompanying Notes.

3. Interest or dividend is paid-in-kind, when applicable.

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 $30,955,129 or 27.95% of the Fund’s net assets as of June 29, 2012.

5. Restricted security. The aggregate value of restricted securities as of June 29, 2012 was $936,617, which represents 0.85% of the Fund’s net assets. See Note 6 of the accompanying Notes. Information concerning restricted securities is as follow:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation (Depreciation)
Altegrity, Inc., 10.50% Sr. Unsec. Sub. Nts., 11/1/15		5/14/09-2/8/10	$	257,268	$	256,200	$	(1,068	)
CIT Group, Inc., 7% Sec. Bonds, 5/2/17		10/31/11-2/1/12		423,757		423,622		(135	)
ViaSat, Inc., 6.875% Sr. Unsec. Unsub. Nts., 6/15/20		2/22/12		254,486		256,795		2,309

			$	935,511	$	936,617	$	1,106

6. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the original contractual interest rate. See Note 1 of the accompanying Notes.

7. Non-income producing security.

8. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 29, 2012, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		11,964,562		20,803,303		30,731,904		2,035,961

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$2,035,961		$5,873

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

9. Rate shown is the 7-day yield as of June 29, 2012.

13	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $113,331,129)	$	107,034,987
Affiliated companies (cost $2,035,961)		2,035,961
		109,070,948
Cash		3,355
Receivables and other assets:
Interest, dividends and principal paydowns		2,143,917
Investments sold (including $263,820 sold on a when-issued or delayed delivery basis)		567,671
Shares of beneficial interest sold		67,084
Other		16,256
Total assets		111,869,231
Liabilities
Payables and other liabilities:
Investments purchased (including $692,879 purchased on a when-issued or delayed delivery basis)		960,856
Shares of beneficial interest redeemed		67,239
Shareholder communications		31,799
Trustees’ compensation		13,313
Distribution and service plan fees		11,978
Transfer and shareholder servicing agent fees		8,926
Other		30,620
Total liabilities		1,124,731
Net Assets	$	110,744,500
Composition of Net Assets
Par value of shares of beneficial interest	$	59,882
Additional paid-in capital		338,115,090
Accumulated net investment income		4,280,812
Accumulated net realized loss on investments		(225,415,142	)
Net unrealized depreciation on investments		(6,296,142	)
Net Assets	$	110,744,500
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $46,249,916 and 25,140,017 shares of beneficial interest outstanding)		$1.84
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $54,195,850 and 29,242,647 shares of beneficial interest outstanding)		$1.85
Class 3 Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $4,361,788 and 2,346,294 shares of beneficial interest outstanding)		$1.86
Class 4 Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $5,936,946 and 3,152,794 shares of beneficial interest outstanding)		$1.88

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

14	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Interest	$	4,977,857
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $675)		29,147
Affiliated companies		5,873
Total investment income		5,012,877
Expenses
Management fees		424,004
Distribution and service plan fees:
Service shares		68,257
Class 4 shares		8,118
Transfer and shareholder servicing agent fees:
Non-Service shares		23,797
Service shares		27,305
Class 3 shares		2,187
Class 4 shares		3,244
Shareholder communications:
Non-Service shares		2,553
Service shares		2,929
Class 3 shares		222
Class 4 shares		363
Legal, auditing and other professional fees		36,273
Custodian fees and expenses		18,016
Trustees’ compensation		5,391
Administration service fees		750
Other		8,216
Total expenses		631,625
Less waivers and reimbursements of expenses		(131,300	)
Net expenses		500,325
Net Investment Income		4,512,552
Realized and Unrealized Gain (Loss)
Net realized loss on investments from unaffiliated companies		(3,344,440	)
Net change in unrealized appreciation/depreciation on investments		6,882,113

Net Increase in Net Assets Resulting from Operations	$	8,050,225

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

15	OPPENHEIMER HIGH INCOME FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	4,512,552		$	10,829,321
Net realized gain (loss)		(3,344,440	)		688,171
Net change in unrealized appreciation/depreciation		6,882,113			(13,278,671	)
Net increase (decrease) in net assets resulting from operations		8,050,225			(1,761,179	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(4,546,496	)		(5,402,411	)
Service shares		(5,172,932	)		(5,518,442	)
Class 3 shares		(415,085	)		(555,527	)
Class 4 shares		(554,166	)		(704,748	)
		(10,688,679	)		(12,181,128	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(121,611	)		(8,185,815	)
Service shares		1,099,411			(2,768,423	)
Class 3 shares		441,188			(1,395,931	)
Class 4 shares		(1,112,449	)		485,879
		306,539			(11,864,290	)
Net Assets
Total decrease		(2,331,915	)		(25,806,597	)
Beginning of period		113,076,415			138,883,012
End of period (including accumulated net investment income of $4,280,812 and $10,456,939, respectively)	$	110,744,500		$	113,076,415

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

16	OPPENHEIMER HIGH INCOME FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,						Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$1.90			$2.13			$1.98			$1.58			$ 7.95			$8.55
Income (loss) from investment operations:
Net investment income²		.08			.17			.18			.17			.54			.57
Net realized and unrealized gain (loss)		.06			(.21	)		.10			.23			(6.44	)		(.56	)
Total from investment operations		.14			(.04	)		.28			.40			(5.90	)		.01
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.20	)		(.19	)		(.13	)		—			(.47	)		(.61	)
Net asset value, end of period		$1.84			$1.90			$2.13			$1.98			$ 1.58			$7.95
Total Return, at Net Asset Value³	7.52%			(2.34)%			14.81%			25.32%			(78.67)%			(0.10)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46,250		$	47,500		$	61,563		$	67,385		$	111,040		$	294,819
Average net assets (in thousands)	$	47,850		$	54,997		$	59,598		$	71,782		$	211,186		$	335,702
Ratios to average net assets:⁴
Net investment income		8.12	%		8.55	%		9.01	%		9.78	%		9.30	%		6.96	%
Total expenses⁵		0.98	%		0.98	%		0.98	%		0.94	%		0.80	%		0.75	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.75	%		0.75	%		0.69	%		0.57	%		0.78	%		0.74	%
Portfolio turnover rate		27	%		54	%		132	%		128	%		53	%⁶		67	%⁶

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.98	%
Year Ended December 30, 2011	0.98	%
Year Ended December 31, 2010	0.98	%
Year Ended December 31, 2009	0.96	%
Year Ended December 31, 2008	0.80	%
Year Ended December 31, 2007	0.76	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Year Ended December 31, 2008	$	40,240,084	$	41,196,921
Year Ended December 31, 2007	$	30,798,147	$	24,096,458

See accompanying Notes to Financial Statements.

17	OPPENHEIMER HIGH INCOME FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$1.91			$2.14			$1.99			$1.58			$ 7.89			$8.50
Income (loss) from investment operations:
Net investment income²		.08			.17			.17			.16			.54			.55
Net realized and unrealized gain (loss)		.05			(.21	)		.10			.25			(6.40	)		(.57	)
Total from investment operations		.13			(.04	)		.27			.41			(5.86	)		(.02	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.19	)		(.19	)		(.12	)		—			(.45	)		(.59	)
Net asset value, end of period		$1.85			$1.91			$2.14			$1.99			$ 1.58			$7.89
Total Return, at Net Asset Value³	7.16%			(2.56)%			14.44%			25.95%			(78.57)%			(0.47)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	54,196		$	54,394		$	63,713		$	64,440		$	43,375		$	157,333
Average net assets (in thousands)	$	54,905		$	60,391		$	63,661		$	54,202		$	116,236		$	169,569
Ratios to average net assets:⁴
Net investment income		7.87	%		8.31	%		8.76	%		9.60	%		9.13	%		6.71	%
Total expenses⁵		1.23	%		1.23	%		1.23	%		1.21	%		1.05	%		1.01	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00	%		1.00	%		0.94	%		0.80	%		1.03	%		1.00	%
Portfolio turnover rate		27	%		54	%		132	%		128	%		53	%⁶		67	%⁶

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.23	%
Year Ended December 30, 2011	1.23	%
Year Ended December 31, 2010	1.23	%
Year Ended December 31, 2009	1.23	%
Year Ended December 31, 2008	1.05	%
Year Ended December 31, 2007	1.02	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Year Ended December 31, 2008	$	40,240,084	$	41,196,921
Year Ended December 31, 2007	$	30,798,147	$	24,096,458

See accompanying Notes to Financial Statements.

18	OPPENHEIMER HIGH INCOME FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Class 3 Shares	(Unaudited)			2011¹			2010			2009			2008			2007²

Per Share Operating Data
Net asset value, beginning of period		$1.92			$2.14			$1.99			$1.57			$ 7.98			$8.26
Income (loss) from investment operations:
Net investment income³		.08			.17			.18			.17			.56			.37
Net realized and unrealized gain (loss)		.06			(.20	)		.10			.25			(6.50	)		(.65	)
Total from investment operations		.14			(.03	)		.28			.42			(5.94	)		(.28	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.20	)		(.19	)		(.13	)		—			(.47	)		—
Net asset value, end of period		$1.86			$1.92			$2.14			$1.99			$ 1.57			$7.98
Total Return, at Net Asset Value⁴	7.46%			(1.88)%			14.69%			26.75%			(78.89)%			(3.39)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,362			$4,034			$6,034			$4,684			$1,582			$4,921
Average net assets (in thousands)		$4,397			$5,432			$5,279			$3,568			$5,292			$3,750
Ratios to average net assets:⁵
Net investment income		8.11	%		8.52	%		8.97	%		9.86	%		9.29	%		6.90	%
Total expenses⁶		0.98	%		0.98	%		0.99	%		0.97	%		0.80	%		0.76	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.75	%		0.75	%		0.69	%		0.53	%		0.78	%		0.75	%
Portfolio turnover rate		27	%		54	%		132	%		128	%		53	%⁷		67	%⁷

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. For the period from May 1, 2007 (inception of offering) to December 31, 2007.

3. Per share amounts calculated based on the average shares outstanding during the period.

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.98	%
Year Ended December 30, 2011	0.98	%
Year Ended December 31, 2010	0.99	%
Year Ended December 31, 2009	0.99	%
Year Ended December 31, 2008	0.80	%
Period Ended December 31, 2007	0.77	%

7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Year Ended December 31, 2008	$	40,240,084	$	41,196,921
Period Ended December 31, 2007	$	30,798,147	$	24,096,458

See accompanying Notes to Financial Statements.

19	OPPENHEIMER HIGH INCOME FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Class 4 Shares	(Unaudited)			2011¹			2010			2009			2008			2007²

Per Share Operating Data
Net asset value, beginning of period		$1.94			$2.16			$2.01			$1.59			$ 7.97			$8.26
Income (loss) from investment operations:
Net investment income³		.08			.17			.18			.16			.54			.36
Net realized and unrealized gain (loss)		.05			(.20	)		.09			.26			(6.46	)		(.65	)
Total from investment operations		.13			(.03	)		.27			.42			(5.92	)		(.29	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.19	)		(.19	)		(.12	)		—			(.46	)		—
Net asset value, end of period		$1.88			$1.94			$2.16			$2.01			$ 1.59			$7.97
Total Return, at Net Asset Value⁴	7.04%			(2.06)%			14.27%			26.42%			(78.63)%			(3.51)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,937			$7,148			$7,573			$7,107			$ 4,167			$9,476
Average net assets (in thousands)		$6,524			$7,852			$7,278			$6,285			$10,658			$7,201
Ratios to average net assets:⁵
Net investment income		7.88	%		8.29	%		8.74	%		9.62	%		9.00	%		6.61	%
Total expenses⁶		1.23	%		1.23	%		1.23	%		1.19	%		1.07	%		1.05	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00	%		1.00	%		0.94	%		0.80	%		1.05	%		1.04	%
Portfolio turnover rate		27	%		54	%		132	%		128	%		53	%⁷		67	%⁷

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. For the period from May 1, 2007 (inception of offering) to December 31, 2007.

3. Per share amounts calculated based on the average shares outstanding during the period.

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.23	%
Year Ended December 30, 2011	1.23	%
Year Ended December 31, 2010	1.23	%
Year Ended December 31, 2009	1.21	%
Year Ended December 31, 2008	1.07	%
Period Ended December 31, 2007	1.06	%

7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Year Ended December 31, 2008	$	40,240,084	$	41,196,921
Period Ended December 31, 2007	$	30,798,147	$	24,096,458

See accompanying Notes to Financial Statements.

20	OPPENHEIMER HIGH INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS June 29, 2012 / Unaudited

1. Significant Accounting Policies

Oppenheimer High Income Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek total return. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

As of June 29, 2012, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions
Purchased securities	$	692,879
Sold securities		263,820

21	OPPENHEIMER HIGH INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

due. The Fund may acquire securities that have missed an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment. Information concerning securities not accruing interest as of June 29, 2012 is as follows:


Cost	$	1,663,016
Market Value	$	954,615
Market Value as a % of Net Assets		0.86	%

During the fiscal year ended December 30, 2011, the Fund utilized $1,949,628 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $1,447,657. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2012	$	128,504
2016		48,495,519
2017		171,938,143
No expiration		1,447,657

Total	$	222,009,823

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $220,562,166 expiring by 2017 and $4,792,097 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains.

22	OPPENHEIMER HIGH INCOME FUND/VA


Federal tax cost of securities	$	115,509,946


Gross unrealized appreciation	$	3,885,940
Gross unrealized depreciation		(10,324,938)

Net unrealized depreciation	$	(6,438,998)

23	OPPENHEIMER HIGH INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

24	OPPENHEIMER HIGH INCOME FUND/VA

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Classifications

25	OPPENHEIMER HIGH INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Corporate Loans	$	—	$	485,256	$	—	$	485,256
Loan Participations		—		6,364,423		—		6,364,423
Corporate Bonds and Notes		—		97,609,478		—		97,609,478
Preferred Stocks		—		520,326		510,138		1,030,464
Common Stocks		744,677		800,293		—		1,544,970
Rights, Warrants and Certificates		—		—		396		396
Investment Company		2,035,961		—		—		2,035,961

Total Assets	$	2,780,638	$	105,779,776	$	510,534	$	109,070,948

The table below shows the significant transfers between Level 2 and Level 3. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers into Level 2*		Transfers out of Level 3*
Assets Table
Investments, at Value:
Common Stocks	$	52,929	$	(52,929	)

Total Assets	$	52,929	$	(52,929	)

* Transferred from Level 3 to Level 2 due to the availability of market data for this security.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

26	OPPENHEIMER HIGH INCOME FUND/VA

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		1,416,021		$	2,807,810			4,435,498		$	8,942,368
Dividends and/or distributions reinvested		2,498,075			4,546,496			2,648,241			5,402,411
Redeemed		(3,753,308	)		(7,475,917	)		(11,071,648	)		(22,530,594	)

Net increase (decrease)		160,788		$	(121,611	)		(3,987,909	)	$	(8,185,815	)


Service Shares
Sold		1,083,782		$	2,171,392			3,015,631		$	6,027,667
Dividends and/or distributions reinvested		2,826,739			5,172,932			2,691,923			5,518,442
Redeemed		(3,127,951	)		(6,244,913	)		(7,087,393	)		(14,314,532	)

Net increase (decrease)		782,570		$	1,099,411			(1,379,839	)	$	(2,768,423	)


Class 3 Shares
Sold		502,370		$	999,451			805,055		$	1,675,197
Dividends and/or distributions reinvested		225,590			415,086			269,673			555,527
Redeemed		(483,518	)		(973,349	)¹		(1,789,726	)		(3,626,655	)²

Net increase (decrease)		244,442		$	441,188			(714,998	)	$	(1,395,931	)


Class 4 Shares
Sold		352,977		$	717,792			1,952,890		$	4,030,364
Dividends and/or distributions reinvested		297,938			554,165			338,821			704,748
Redeemed		(1,187,383	)		(2,384,406	)¹		(2,103,972	)		(4,249,233	)²

Net increase (decrease)		(536,468	)	$	(1,112,449	)		187,739		$	485,879

1. Net of redemption fees of $598 and $4,196 for Class 3 and Class 4 shares, respectively.

2. Net of redemption fees of $621 and $235 for Class 3 and Class 4 shares, respectively.

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	30,854,300	$	27,919,931

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Next $200 million	0.60
Over $1 billion	0.50

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

27	OPPENHEIMER HIGH INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Purchases and Sales of Securities Continued

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.75% for Non-Service and Class 3 shares and 1.00% for Service and Class 4 shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $54,124, $62,154, $4,954 and $7,413 for Non-Service, Service, Class 3 and Class 4 shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Restricted Securities

7. Pending Litigation

28	OPPENHEIMER HIGH INCOME FUND/VA

29	OPPENHEIMER HIGH INCOME FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer High Income Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting the Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

54,407,005

2,509,716

2,195,202

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

54,647,038

2,477,955

1,986,930

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

54,053,138

2,734,608

2,324,177

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

54,239,501

2,535,089

2,337,334

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

54,719,026

2,496,254

1,896,644

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

54,164,587

2,601,440

2,345,897

N/A

30	OPPENHEIMER HIGH INCOME FUND/VA

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

54,592,773

2,396,336

2,122,815

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

54,491,631

2,449,923

2,170,370

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

53,839,248

2,595,671

2,677,005

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

54,202,406

2,495,844

2,413,674

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

31	OPPENHEIMER HIGH INCOME FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30^th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

32	OPPENHEIMER HIGH INCOME FUND/VA

OPPENHEIMER HIGH INCOME FUND/VA


A Series of Oppenheimer Variable Accounts
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Joseph Welsh, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Main Street Fund®/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER MAIN STREET FUND®/VA

Portfolio Managers: Manind Govil, CFA and Benjamin Ram


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	9.02%
Service Shares	8.91
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	6.05%	–0.52%	4.42%
Service Shares	5.82	–0.77	4.16
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Expense Ratios
Non-Service Shares	0.78%
Service Shares	1.03

Sector Allocation

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of common stocks.


Top Ten Common Stock Holdings
Apple, Inc.		7.7%
Chevron Corp.		4.9
Philip Morris International, Inc.		4.5
International Business Machines Corp.		4.3
eBay, Inc.		3.9
Citigroup, Inc.		3.7
JPMorgan Chase & Co.		3.4
Dr. Pepper Snapple Group, Inc.		3.2
McGraw-Hill Cos., Inc. (The)		3.2
CIT Group, Inc.		3.2

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER MAIN STREET FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month period, the Fund’s Non-Service shares returned 9.02%. In comparison, the Fund’s benchmark, the S&P 500 Index (the “Index”), returned 9.49%.¹ The Fund underperformed the benchmark primarily due to weaker relative stock selection in the consumer discretionary sector. Relative to the Index, the strongest performing sector for the Fund was information technology.

Economic and Market Environment

Fund Review

During the reporting period, information technology stock Apple, Inc., the top holding of the Fund at period end, was the Fund’s strongest performing holding. Apple continued to out-execute its peers, and its success at innovation and highly recognizable brand led to global growth and share gains across its top revenue producing products—iPhones, iPads and Mac PCs. Also contributing to performance within information technology was eBay, Inc. The company’s first quarter earnings report beat expectations and management raised guidance for both revenues and profits. eBay continued to benefit from a turnaround in its Marketplace segment with improvements to the user experience leading to increased loyalty and great volumes of transactions. PayPal, eBay’s online payment service, also continued to be a significant contributor to growth with results that exceeded expectations.

Also contributing to performance this period were Philip Morris International, Inc. and Discover Financial Services. Philip Morris continued to generate substantial free cash flow stemming from ongoing market share gains and its considerable ability to raise prices. Discover Financial Services, which operates one of the two closed-loop credit card networks in the United States, continued to experience strong revenue growth. Its stock performed positively during the six-month period. The most significant detractors from performance were Google, Inc. and Ford Motor Co. Google’s stock underperformed after reporting fourth quarter results. Unexpectedly, pricing declined as a result of relatively faster growth in smaller markets and products. The U.S. dollar’s appreciation against the euro also hurt results, as it negatively impacted the company’s translation of euro revenues and profits into U.S. dollars. We remain optimistic about Google’s outlook for growth of both revenues and earnings. While North American results for Ford and most of its peers have been solid, weakness in international markets, particularly Europe, have resulted in lowered revenue and profit expectations. Ford’s market share of the U.S. market remained strong and domestic auto manufacturers enjoyed a substantially better year-over-year selling rate as consumers continued to replace older cars.

3	OPPENHEIMER MAIN STREET FUND/VA

FUND PERFORMANCE DISCUSSION

Also detracting from performance this period were energy stocks Occidental Petroleum Corp. (which we exited by period end) and Noble Energy, Inc. Declining oil prices challenged these stocks and the energy sector in general, particularly over the second half of the period.

Outlook

We expect market volatility to continue through 2012. That being said, we believe that even in an uncertain macroeconomic environment, there exist solid investment opportunities.

Our long-term investment process remains the same. We seek companies with sustainable competitive advantages, with the management skill and financial resources to generate stronger profit margins, take market share from weaker players, and/or return significant capital to shareholders. We focus on leading firms in structurally attractive industries with committed management teams that have proven records of performance. We seek to invest in such companies when their valuations are attractive, and believe that this disciplined approach is the key to generating positive long-term returns. We are optimistic regarding our investment strategy and believe it has the potential to provide both upside participation and a degree of downside protection.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER MAIN STREET FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,090.20	$	4.04
Service Shares		1,000.00		1,089.10		5.33

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,020.87		3.91
Service Shares		1,000.00		1,019.63		5.16


Class	Expense Ratios
Non-Service Shares		0.78	%
Service Shares		1.03

5	OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012*/ Unaudited


	Shares		Value

Common Stocks—96.5%
Consumer Discretionary—10.4%
Automobiles—2.1%
Ford Motor Co.		3,019,510	$	28,957,101
Hotels, Restaurants & Leisure—0.8%
Hyatt Hotels Corp., Cl. A¹		290,668		10,801,223
Media—3.2%
McGraw-Hill Cos., Inc. (The)		979,521		44,078,445
Specialty Retail—4.3%
AutoZone, Inc.¹		52,190		19,162,602
CarMax, Inc.¹		485,240		12,587,126
TJX Cos., Inc. (The)		612,210		26,282,175

				58,031,903
Consumer Staples—10.9%
Beverages—3.2%
Dr. Pepper Snapple Group, Inc.		1,008,150		44,106,563
Food Products—3.2%
J.M. Smucker Co. (The)		364,830		27,551,962
Mead Johnson Nutrition Co., Cl. A		195,762		15,760,799

				43,312,761
Tobacco—4.5%
Philip Morris International, Inc.		700,529		61,128,161
Energy—10.5%
Energy Equipment & Services—2.9%
National Oilwell Varco, Inc.		614,990		39,629,956
Oil, Gas & Consumable Fuels—7.6%
Chevron Corp.		624,660		65,901,630
Kinder Morgan, Inc.		336,647		10,846,766
Noble Energy, Inc.		302,670		25,672,469

				102,420,865
Financials—16.4%
Commercial Banks—3.8%
CIT Group, Inc.¹		1,236,740		44,077,414
M&T Bank Corp.		83,490		6,893,769

				50,971,183
Consumer Finance—1.3%
Discover Financial Services		510,470		17,652,053
Diversified Financial Services—9.6%
Citigroup, Inc.		1,848,568		50,669,249
CME Group, Inc.		84,380		22,623,122
JPMorgan Chase & Co.		1,288,680		46,044,536
MSCI, Inc., Cl. A¹		320,420		10,900,688

				130,237,595
Insurance—1.7%
Marsh & McLennan Cos., Inc.		724,970		23,365,783


	Shares		Value

Health Care—11.4%
Health Care Equipment & Supplies—2.7%
Covidien plc		540,430	$	28,913,005
Edwards Lifesciences Corp.¹		79,710		8,234,043

				37,147,048
Health Care Providers & Services—2.3%
DaVita, Inc.¹		176,090		17,293,799
Express Scripts Holding Co.¹		248,587		13,878,612

				31,172,411
Pharmaceuticals—6.4%
Abbott Laboratories		630,660		40,658,650
Bristol-Myers Squibb Co.		909,470		32,695,447
Watson Pharmaceuticals, Inc.¹		178,340		13,195,377

				86,549,474
Industrials—11.2%
Aerospace & Defense—2.0%
Boeing Co. (The)		368,130		27,352,059
Air Freight & Logistics—2.5%
United Parcel Service, Inc., Cl. B		431,310		33,969,976
Industrial Conglomerates—3.0%
Tyco International Ltd.		767,605		40,567,924
Professional Services—1.2%
Towers Watson & Co., Cl. A		273,480		16,381,452
Road & Rail—2.5%
CSX Corp.		1,404,580		31,406,409
QR National Ltd.		824,500		2,890,988

				34,297,397
Information Technology—20.6%
Communications Equipment—1.3%
QUALCOMM, Inc.		303,741		16,912,299
Computers & Peripherals—8.2%
Apple, Inc.¹		179,212		104,659,808
Western Digital Corp.¹		233,270		7,110,070

				111,769,878
Electronic Equipment & Instruments—0.8%
Corning, Inc.		825,920		10,679,146
Internet Software & Services—6.0%
eBay, Inc.¹		1,256,345		52,779,053
Facebook, Inc., Cl. A¹		387,680		12,064,602
Google, Inc., Cl. A¹		29,390		17,048,257

				81,891,912
IT Services—4.3%
International Business Machines Corp.		298,060		58,294,575

6	OPPENHEIMER MAIN STREET FUND/VA


	Shares		Value

Materials—1.1%
Construction Materials—1.1%
Vulcan Materials Co.		374,920	$	14,888,073
Telecommunication Services—2.4%
Wireless Telecommunication Services—2.4%
America Movil SAB de CV, ADR, Series L		1,227,852		31,997,823
Utilities—1.6%
Energy Traders—1.6%
AES Corp. (The)¹		1,676,070		21,503,975

Total Common Stocks (Cost $994,921,434)				1,310,069,014

	Units

Rights, Warrants and Certificates—0.0%
Kinder Morgan, Inc. Wts., Strike Price $40, Exp. 2/15/17¹ (Cost $68,117)		38,054		82,197


	Shares			Value

Investment Company—2.5%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^2,3(Cost $33,627,488)		33,627,488		$	33,627,488
Total Investments, at Value (Cost $1,028,617,039)		99.0	%		1,343,778,699
Other Assets Net of Liabilities		1.0			14,058,903
Net Assets		100.0	%	$	1,357,837,602

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		—		179,933,560		146,306,072		33,627,488

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$33,627,488		$10,269

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

See accompanying Notes to Financial Statements.

7	OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $994,989,551)	$	1,310,151,211
Affiliated companies (cost $33,627,488)		33,627,488
		1,343,778,699
Cash		43
Receivables and other assets:
Investments sold		51,397,906
Dividends		975,221
Other		66,263
Total assets		1,396,218,132
Liabilities
Payables and other liabilities:
Investments purchased		36,035,398
Shares of beneficial interest redeemed		1,883,985
Distribution and service plan fees		153,533
Transfer and shareholder servicing agent fees		109,752
Shareholder communications		108,772
Trustees’ compensation		52,058
Other		37,032
Total liabilities		38,380,530
Net Assets	$	1,357,837,602
Composition of Net Assets
Par value of shares of beneficial interest	$	61,001
Additional paid-in capital		1,297,857,780
Accumulated net investment loss		(839,504	)
Accumulated net realized loss on investments and foreign currency transactions		(254,403,335	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		315,161,660
Net Assets	$	1,357,837,602
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $481,776,181 and 21,550,399 shares of beneficial interest outstanding)		$22.36
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $876,061,421 and 39,450,118 shares of beneficial interest outstanding)		$22.21

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

8	OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies	$	11,622,599
Affiliated companies		10,269
Interest		498
Total investment income		11,633,366
Expenses
Management fees		4,558,552
Distribution and service plan fees—Service shares		1,172,694
Transfer and shareholder servicing agent fees:
Non-Service shares		221,349
Service shares		468,783
Shareholder communications:
Non-Service shares		5,019
Service shares		12,418
Trustees’ compensation		34,602
Custodian fees and expenses		6,886
Administration service fees		750
Other		67,772
Total expenses		6,548,825
Less waivers and reimbursements of expenses		(4,484	)
Net expenses		6,544,341
Net Investment Income		5,089,025
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments from unaffiliated companies		114,929,512
Foreign currency transactions		(2,292	)
Net realized gain		114,927,220
Net change in unrealized appreciation/depreciation on:
Investments		(2,678,054	)
Translation of assets and liabilities denominated in foreign currencies		44,402
Net change in unrealized appreciation/depreciation		(2,633,652	)

Net Increase in Net Assets Resulting from Operations	$	117,382,593

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

9	OPPENHEIMER MAIN STREET FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	5,089,025		$	9,303,117
Net realized gain		114,927,220			60,012,332
Net change in unrealized appreciation/depreciation		(2,633,652	)		(72,180,291	)
Net increase (decrease) in net assets resulting from operations		117,382,593			(2,864,842	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(4,702,221	)		(3,755,987	)
Service shares		(5,916,709	)		(6,566,777	)
		(10,618,930	)		(10,322,764	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		61,959,854			(73,098,026	)
Service shares		(206,931,054	)		(172,844,897	)
		(144,971,200	)		(245,942,923	)
Net Assets
Total decrease		(38,207,537	)		(259,130,529	)
Beginning of period		1,396,045,139			1,655,175,668
End of period (including accumulated net investment income (loss) of $(839,504) and $4,690,401, respectively)	$	1,357,837,602		$	1,396,045,139

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER MAIN STREET FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	20.71		$	20.88		$	18.18		$	14.56		$	25.61		$	24.78
Income (loss) from investment operations:
Net investment income²		.10			.16			.17			.21			.29			.33
Net realized and unrealized gain (loss)		1.77			(.16	)		2.73			3.71			(9.64	)		.75
Total from investment operations		1.87			—			2.90			3.92			(9.35	)		1.08
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.22	)		(.17	)		(.20	)		(.30	)		(.32	)		(.25	)
Distributions from net realized gain		—			—			—			—			(1.38	)		—
Total dividends and/or distributions to shareholders		(.22	)		(.17	)		(.20	)		(.30	)		(1.70	)		(.25	)
Net asset value, end of period	$	22.36		$	20.71		$	20.88		$	18.18		$	14.56		$	25.61
Total Return, at Net Asset Value³	9.02%			(0.01)%			16.11%			28.29%			(38.47)%			4.43%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$481,776			$392,861			$469,720			$474,637			$432,360			$907,727
Average net assets (in thousands)		$445,048			$426,354			$454,937			$430,517			$670,994			$1,006,655
Ratios to average net assets:⁴
Net investment income		0.90	%		0.79	%		0.93	%		1.35	%		1.42	%		1.28	%
Total expenses⁵		0.78	%		0.78	%		0.78	%		0.78	%		0.66	%		0.65	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.78	%		0.78	%		0.78	%		0.78	%		0.66	%		0.65	%
Portfolio turnover rate		21	%		38	%		45	%		128	%		132	%		111	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.78	%
Year Ended December 30, 2011	0.78	%
Year Ended December 31, 2010	0.78	%
Year Ended December 31, 2009	0.78	%
Year Ended December 31, 2008	0.66	%
Year Ended December 31, 2007	0.65	%

See accompanying Notes to Financial Statements.

11	OPPENHEIMER MAIN STREET FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	20.53		$	20.71		$	18.04		$	14.42		$	25.38		$	24.58
Income (loss) from investment operations:
Net investment income²		.07			.11			.13			.17			.24			.26
Net realized and unrealized gain (loss)		1.76			(.17	)		2.70			3.70			(9.56	)		.75
Total from investment operations		1.83			(.06	)		2.83			3.87			(9.32	)		1.01
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.15	)		(.12	)		(.16	)		(.25	)		(.26	)		(.21	)
Distributions from net realized gain		—			—			—			—			(1.38	)		—
Total dividends and/or distributions to shareholders		(.15	)		(.12	)		(.16	)		(.25	)		(1.64	)		(.21	)
Net asset value, end of period	$	22.21		$	20.53		$	20.71		$	18.04		$	14.42		$	25.38
Total Return, at Net Asset Value³	8.91%			(0.32)%			15.83%			27.99%			(38.63)%			4.15%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$876,062			$1,003,184			$1,185,456			$1,154,210			$1,020,103			$1,464,690
Average net assets (in thousands)		$942,601			$1,094,254			$1,193,630			$1,029,909			$1,268,430			$1,315,488
Ratios to average net assets:⁴
Net investment income		0.66	%		0.54	%		0.68	%		1.10	%		1.20	%		1.03	%
Total expenses⁵		1.03	%		1.03	%		1.03	%		1.03	%		0.91	%		0.90	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.03	%		1.03	%		1.03	%		1.03	%		0.91	%		0.90	%
Portfolio turnover rate		21	%		38	%		45	%		128	%		132	%		111	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.03	%
Year Ended December 30, 2011	1.03	%
Year Ended December 31, 2010	1.03	%
Year Ended December 31, 2009	1.03	%
Year Ended December 31, 2008	0.91	%
Year Ended December 31, 2007	0.90	%

See accompanying Notes to Financial Statements.

12	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Main Street Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek high total return. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

13	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

During the fiscal year ended December 30, 2011, the Fund utilized $71,694,516 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $4,974,129. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2016	$	28,492,724
2017		332,195,657
No expiration		4,974,129

Total	$	365,662,510

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $250,735,290 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $114,927,220 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	1,033,286,620


Gross unrealized appreciation	$	333,602,201
Gross unrealized depreciation		(23,110,122)

Net unrealized appreciation	$	310,492,079

14	OPPENHEIMER MAIN STREET FUND/VA

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

15	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

16	OPPENHEIMER MAIN STREET FUND/VA

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

17	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	141,868,672	$	—	$	—	$	141,868,672
Consumer Staples		148,547,485		—		—		148,547,485
Energy		142,050,821		—		—		142,050,821
Financials		222,226,614		—		—		222,226,614
Health Care		154,868,933		—		—		154,868,933
Industrials		149,677,820		2,890,988		—		152,568,808
Information Technology		279,547,810		—		—		279,547,810
Materials		14,888,073		—		—		14,888,073
Telecommunication Services		31,997,823		—		—		31,997,823
Utilities		21,503,975		—		—		21,503,975
Rights, Warrants and Certificates		82,197		—		—		82,197
Investment Company		33,627,488		—		—		33,627,488

Total Assets	$	1,340,887,711	$	2,890,988	$	—	$	1,343,778,699

The table below shows the significant transfers between Level 1 and Level 2. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers out of Level 1*			Transfers into Level 2*
Assets Table
Investments, at Value:
Common Stocks
Industrials	$	(1,538,407	)	$	1,538,407

Total Assets	$	(1,538,407	)	$	1,538,407

*Transferred from Level 1 to Level 2 because of the absence of a readily available unadjusted quoted market price due to a significant event occurring before the Fund’s assets were valued but after the close of the securities’ respective exchanges.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

18	OPPENHEIMER MAIN STREET FUND/VA

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		822,993		$	18,402,993			2,028,214		$	41,337,389
Dividends and/or distributions reinvested		209,174			4,702,221			176,503			3,755,987
Acquisition—Note 7		3,253,848			77,116,190			—			—
Redeemed		(1,706,057	)		(38,261,550	)		(5,726,116	)		(118,191,402	)

Net increase (decrease)		2,579,958		$	61,959,854			(3,521,399	)	$	(73,098,026	)


Service Shares
Sold		494,958		$	10,995,899			2,150,725		$	42,852,883
Dividends and/or distributions reinvested		264,967			5,916,709			310,633			6,566,777
Redeemed		(10,163,982	)		(223,843,662	)		(10,851,128	)		(222,264,557	)

Net decrease		(9,404,057	)	$	(206,931,054	)		(8,389,770	)	$	(172,844,897	)

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	291,743,852	$	567,124,422

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

19	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

5. Fees and Other Transactions with Affiliates Continued

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Risk Exposures and the Use of Derivative Instruments

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

20	OPPENHEIMER MAIN STREET FUND/VA

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Foreign currency transactions
Foreign exchange contracts		$(2,219	)

Foreign Currency Exchange Contracts

The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.

21	OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

During the six months ended June 29, 2012, the Fund had daily average contract amounts on forward foreign currency contracts to buy and sell of $33,569 and $397, respectively.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty will default.

As of June 29, 2012, the Fund had no outstanding forward contracts.

7. Acquisition of Growth Portfolio

On April 26, 2012, the Fund acquired all of the net assets of Growth Portfolio, pursuant to an Agreement and Plan of Reorganization approved by the Growth Portfolio shareholders on April 20, 2012. The purpose of this acquisition is to combine two funds with similar investment objectives, strategies and risks to allow shareholders to benefit from greater asset growth potential, as well as lowered total expenses.

Details of the merger are shown in the following table:


	Exchange Ratio to One Share of the Growth Portfolio		Shares of Beneficial Interest Issued by the Fund		Value of Issued Shares of Beneficial Interest		Combined Net Assets on April 26, 2012¹
Class A		0.0953467932		3,253,848		$77,116,190		$517,094,352

1. The net assets acquired included net unrealized appreciation of $18,020,315 and an unused capital loss carryforward of $35,875,587, potential utilization subject to tax limitations.

Had the merger occurred at the beginning of the reporting period, the Fund’s Statement of Operations would have been adjusted to the following amounts:


Net investment income	$	5,370,508
Net loss on investments		122,008,030
Net increase in net assets resulting from operations		127,378,538

8. Pending Litigation

22	OPPENHEIMER MAIN STREET FUND/VA

claims under federal securities laws and various states’ securities, consumer protection and common law and allege, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses.

23	OPPENHEIMER MAIN STREET FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Main Street Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

64,138,975

3,708,938

2,626,079

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

64,447,979

3,673,653

2,352,360

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

63,780,270

3,824,160

2,869,561

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

63,851,146

3,848,296

2,774,550

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

64,031,649

3,838,470

2,603,872

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

63,663,469

4,024,234

2,786,285

N/A

24	OPPENHEIMER MAIN STREET FUND/VA

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

64,010,848

3,806,030

2,657,114

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

63,847,976

3,871,861

2,754,155

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

63,381,714

3,989,120

3,103,157

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

64,028,261

3,841,441

2,604,290

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

25	OPPENHEIMER MAIN STREET FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

26	OPPENHEIMER MAIN STREET FUND/VA

OPPENHEIMER MAIN STREET FUND®/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Manind Govil, Vice President Benjamin Ram, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Main Street Small- & Mid-Cap Fund®/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND®/VA

Portfolio Managers: Matthew P. Ziehl, CFA, Raymond Anello, CFA and Raman Vardharaj, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	9.73%
Service Shares	9.53
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	–0.32%	0.30%	7.40%
Service Shares	–0.57	0.05	7.15
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.83%		0.80%
Service Shares	1.08		1.05

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance and expense ratios may be lower or higher than the data quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns do not include the charges associated with the separate account products that offer this Fund. Performance would have been lower if such charges were taken into account. Expense ratios are as stated in the Fund’s prospectus current as of the date of this report. The net expense ratios take into account voluntary fee waivers and/or expense reimbursements, without which performance would have been less. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus.

Sector Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of common stocks.


Top Ten Common Stock Holdings
HollyFrontier Corp.		2.3%
Robert Half International, Inc.		1.8
Dunkin’ Brands Group, Inc.		1.8
Questcor Pharmaceuticals, Inc.		1.6
MSCI, Inc., Cl. A		1.5
Waste Connections, Inc.		1.5
AES Corp. (The)		1.5
Old Dominion Freight Line, Inc.		1.3
KBR, Inc.		1.3
PVH Corp.		1.3

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month period ended June 29, 2012, the Fund’s Non-Service shares returned 9.73%. In comparison, the Fund outperformed the Russell 2500 Index (the “Index”), which returned 8.31%.¹ The Fund outperformed the Index primarily due to stronger relative stock selection in the energy and consumer discretionary sectors. While underperforming sectors were limited for the Fund this period, the most significant detractor was weaker relative stock selection in industrials.

Economic and Market Environment

Fund Review

During the period, the strongest performing stocks for the Fund were HollyFrontier Corp., Skyworks Solutions, Inc., Questcor Pharmaceuticals, Inc. and Dunkin’ Brands Group Inc. HollyFrontier, the Fund’s largest holding at period end, is an oil refiner that benefited from a more persistent price spread between the company’s oil inputs, based on West Texas Intermediate (WTI) prices, and product outputs, based on Brent crude oil prices. This dynamic improved the outlook for both earnings and cash generation at the company. Semiconductor company Skyworks Solutions’ stock produced strong performance this period. Demand for the company’s radio frequency chips is expected to expand as both telecommunications companies upgrade networks from 2G to 3G, and 3G to 4G, and smartphones gain further share. Questcor Pharmaceuticals continued to benefit from new paid prescriptions for its Acthar drug for patients with multiple sclerosis as well as patients with nephrotic syndrome, which is a kidney disorder. Dunkin’ Brands Group’s subsidiary Dunkin Donuts remained focused on growth opportunities through single and multi-unit development of retail stores and announced deals to partner with multi-store franchisees in Alabama and Colorado. Operating under the Dunkin’ Donuts and Baskin-Robbins brands, Dunkin’ Brands had close to 17,000 locations at period end.

Although negative contributing stocks were minimal this period, the most significant detractors were Aruba Networks, Inc. and Aecom Technology Corp. Aruba is a global leader in enterprise network solutions. The company’s stock experienced declines over the closing months of the period as macroeconomic issues put pressure on tech stocks in general. The market grew concerned over information technology (IT) departments in the U.S. possibly deferring on IT investments as well as weakness in European government IT contracts. Aecom, a global provider of professional technical and management support services to a broad range of markets, declined in May after releasing a weakened outlook.

3	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

FUND PERFORMANCE DISCUSSION

Outlook

We believe the U.S. economy will continue to improve at a gradual and perhaps uneven fashion. The slow-growth environment can continue to create a bifurcated stock market in which well-run companies with solid business models outperform. In our opinion, such a market environment favors our investment style and process, which focuses on companies with sustainable competitive advantages. We view such firms as well-positioned to generate stronger profit margins and take market share from weaker players. We seek to buy such companies when their valuations are attractive, and believe that this disciplined investment process is the key to generating solid long-term performance.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,097.30	$	4.16
Service Shares		1,000.00		1,095.30		5.45

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,020.77		4.01
Service Shares		1,000.00		1,019.53		5.26


Class	Expense Ratios
Non-Service shares		0.80	%
Service shares		1.05

5	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Shares		Value
Common Stocks—96.8%
Consumer Discretionary—17.1%
Auto Components—1.3%
Amerigon, Inc.¹		30,170	$	346,653
Cooper Tire & Rubber Co.		53,140		932,076
Dana Holding Corp.		708,217		9,072,260
Standard Motor Products, Inc.		62,832		884,675

				11,235,664
Distributors—1.0%
Pool Corp.		200,969		8,131,206
VOXX International Corp.¹		69,240		645,317

				8,776,523
Diversified Consumer Services—0.6%
Bridgepoint Education, Inc.¹		65,672		1,431,650
Capella Education Co.¹		440		15,294
Coinstar, Inc.¹		25,999		1,785,091
DeVry, Inc.		5,722		177,210
Grand Canyon Education, Inc.¹		42,530		890,578
Regis Corp.		44,757		803,836

				5,103,659
Hotels, Restaurants & Leisure—3.2%
Ameristar Casinos, Inc.		84,204		1,496,305
Bob Evans Farms, Inc.		40,566		1,630,753
Brinker International, Inc.		79,944		2,547,815
CEC Entertainment, Inc.		24,030		873,971
Cheesecake Factory, Inc. (The)¹		50,242		1,605,734
Cracker Barrel Old Country Store, Inc.		25,549		1,604,477
Denny’s Corp.¹		47,570		211,211
Dunkin’ Brands Group, Inc.		466,033		16,003,573
Multimedia Games, Inc.¹		10,210		142,940
P.F. Chang’s China Bistro, Inc.		2,858		147,101
Papa John’s International, Inc.¹		34,063		1,620,377
Red Robin Gourmet Burgers, Inc.¹		29,000		884,790
Ruth’s Chris Steak House, Inc.¹		6,160		40,656
Town Sports International Holdings, Inc.¹		14,320		190,313

				29,000,016
Household Durables—1.4%
CSS Industries, Inc.		12,788		262,793
Helen of Troy Ltd.¹		26,713		905,304
Jarden Corp.		55,945		2,350,809
La-Z-Boy, Inc.¹		86,480		1,062,839
Toll Brothers, Inc.¹		253,020		7,522,285
Zagg, Inc.¹		70,500		769,155

				12,873,185


	Shares		Value
Internet & Catalog Retail—0.0%
HSN, Inc.		3,436	$	138,643
Leisure Equipment & Products—0.1%
Leapfrog Enterprises, Inc.¹		61,860		634,684
Polaris Industries, Inc.		1,529		109,293

				743,977
Media—1.9%
Cinemark Holdings, Inc.		37,560		858,246
Dish Network Corp., Cl. A		30,319		865,607
IMAX Corp.¹		445,536		10,706,230
Interpublic Group of Cos., Inc. (The)		69,200		750,820
Regal Entertainment Group		48,320		664,883
Scholastic Corp.		47,515		1,338,022
Sinclair Broadcast Group, Inc., Cl. A		33,887		307,016
Valassis Communications, Inc.¹		84,071		1,828,544

				17,319,368
Multiline Retail—0.6%
Big Lots, Inc.¹		50,171		2,046,475
Dillard’s, Inc., Cl. A		18,453		1,175,087
Fred’s, Inc.		49,201		752,283
Saks, Inc.¹		166,182		1,769,838

				5,743,683
Specialty Retail—4.9%
Aaron’s, Inc.		39,930		1,130,418
Advance Auto Parts, Inc.		19,627		1,338,954
AnnTaylor Stores Corp.¹		71,173		1,814,200
Ascena Retail Group, Inc.¹		108,350		2,017,477
Body Central Corp.¹		42,140		379,260
Buckle, Inc. (The)		20,130		796,544
CarMax, Inc.¹		226,830		5,883,970
Cato Corp., Cl. A		76,887		2,341,978
Chico’s FAS, Inc.		148,459		2,203,132
Dick’s Sporting Goods, Inc.		3,196		153,408
Express, Inc.¹		90,526		1,644,857
Finish Line, Inc. (The), Cl. A		97,583		2,040,461
Foot Locker, Inc.		78,081		2,387,717
GameStop Corp., Cl. A		90,105		1,654,328
Hibbett Sports, Inc.¹		2,636		152,124
Hot Topic, Inc.		99,860		967,643
Men’s Wearhouse, Inc. (The)		36,585		1,029,502
Monro Muffler Brake, Inc.		186,339		6,193,908
Pier 1 Imports, Inc.		529,190		8,694,592
RadioShack Corp.		7,105		27,283
Rent-A-Center, Inc.		7,600		256,424

6	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA


	Shares		Value
Specialty Retail Continued
Rue21, Inc.¹		15,960	$	402,830
Sally Beauty Holdings, Inc.¹		8,635		222,265
Staples, Inc.		8,090		105,575
Williams-Sonoma, Inc.		22,000		769,340

				44,608,190
Textiles, Apparel & Luxury Goods—2.1%
Fossil, Inc.¹		101,122		7,739,878
Iconix Brand Group, Inc.¹		4,943		86,354
Jones Group, Inc. (The)		10,640		101,718
PVH Corp.		147,108		11,443,531

				19,371,481
Consumer Staples—2.1%
Beverages—0.0%
Constellation Brands, Inc., Cl. A¹		628		16,994
Cott Corp.¹		14,376		118,027

				135,021
Food & Staples Retailing—0.4%
Andersons, Inc. (The)		18,570		792,196
Casey’s General Stores, Inc.		180		10,618
Harris Teeter Supermarkets, Inc.		860		35,251
Roundy’s, Inc.		89,150		910,222
Safeway, Inc.		13,280		241,032
Spartan Stores, Inc.		21,297		386,115
Village Super Market, Inc., Cl. A		6,465		210,630
Weis Markets, Inc.		12,132		540,117

				3,126,181
Food Products—1.0%
Darling International, Inc.¹		88,870		1,465,466
Smithfield Foods, Inc.¹		13,770		297,845
TreeHouse Foods, Inc.¹		115,252		7,179,047

				8,942,358
Household Products—0.3%
Church & Dwight Co., Inc.		48,149		2,670,825
Harbinger Group, Inc.¹		4,760		37,080
Spectrum Brands Holdings, Inc.¹		2,910		94,779

				2,802,684
Personal Products—0.4%
Medifast, Inc.¹		99,922		1,966,465
Nu Skin Asia Pacific, Inc., Cl. A		5,700		267,330
USANA Health Sciences, Inc.¹		30,450		1,252,104

				3,485,899
Tobacco—0.0%
Universal Corp.		4,707		218,075


	Shares		Value
Energy—6.4%
Energy Equipment & Services—1.0%
Basic Energy Services, Inc.¹		60,072	$	619,943
C&J Energy Services, Inc.¹		80,270		1,484,995
Helix Energy Solutions Group, Inc.¹		93,758		1,538,569
Helmerich & Payne, Inc.		17,030		740,464
Key Energy Services, Inc.¹		126,130		958,588
Matrix Service Co.¹		48,596		551,565
Nabors Industries Ltd.¹		17,650		254,160
Parker Drilling Co.¹		271,643		1,225,110
Pioneer Drilling Co.¹		14,600		116,362
RPC, Inc.		161,627		1,921,745

				9,411,501
Oil, Gas & Consumable Fuels—5.4%
Alon USA Energy, Inc.		57,290		484,673
Crosstex Energy, Inc.		21,400		299,600
CVR Energy, Inc.⁴		43,316		—
CVR Energy, Inc.		1,360		36,149
Delek US Holdings, Inc.		43,440		764,110
Denbury Resources, Inc.¹		58,060		877,287
Energy Partners Ltd.¹		230,880		3,901,872
Energy XXI (Bermuda) Ltd.		60,843		1,903,777
Gran Tierra Energy, Inc.¹		191,040		938,006
Green Plains Renewable Energy, Inc.¹		44,860		279,926
HollyFrontier Corp.		589,473		20,885,028
Kosmos Energy Ltd.¹		278,293		3,075,138
PAA Natural Gas Storage LP		258,233		4,614,624
Renewable Energy Group, Inc.¹		234,110		1,739,437
Rex Stores Corp.¹		18,130		353,898
Stone Energy Corp.¹		5,700		144,438
Targa Resources Corp.		30,900		1,319,430
Tesoro Corp.¹		67,651		1,688,569
TransGlobe Energy Corp.¹		85,383		764,178
VAALCO Energy, Inc.¹		229,497		1,980,559
Venoco, Inc.¹		61,730		617,917
Warren Resources, Inc.¹		114,690		275,256
Western Refining, Inc.		97,227		2,165,245

				49,109,117
Financials—21.1%
Capital Markets—1.0%
Federated Investors, Inc., Cl. B		50,457		1,102,485
Financial Engines, Inc.¹		119,540		2,564,133
KBW, Inc.		250,591		4,122,222
Knight Capital Group, Inc., Cl. A¹		123,830		1,478,530

				9,267,370

7	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Shares		Value
Commercial Banks—2.4%
Banco Latinoamericano de Exportaciones SA, Cl. E		170	$	3,643
CapitalSource, Inc.		1,479,819		9,944,384
Citizens & Northern Corp.		9,086		173,088
CVB Financial Corp.		102,690		1,196,339
Eagle Bancorp, Inc.¹		23,763		374,267
First Horizon National Corp.		12,944		111,966
FirstMerit Corp.		361,166		5,966,462
Huntington Bancshares, Inc.		199,510		1,276,864
Lakeland Financial Corp.		4,189		112,391
NBT Bancorp, Inc.		2,697		58,228
Old National Bancorp		66,730		801,427
Republic Bancorp, Inc., Cl. A		14,202		315,995
Southside Bancshares, Inc.		14,192		319,036
Univest Corp. of Pennsylvania		20,020		330,931
WesBanco, Inc.		24,729		525,739

				21,510,760
Consumer Finance—0.2%
Cash America International, Inc.		10,480		461,539
EZCORP, Inc., Cl. A¹		59,014		1,384,468
First Cash Financial Services, Inc.¹		2,180		87,571
World Acceptance Corp.¹		704		46,323

				1,979,901
Diversified Financial Services—2.4%
Moody’s Corp.		197,050		7,202,178
MSCI, Inc., Cl. A¹		411,996		14,016,104
NASDAQ OMX Group, Inc. (The)		28,000		634,760

				21,853,042
Insurance—4.2%
Allied World Assurance Holdings Ltd.		2,540		201,854
Alterra Capital Holdings Ltd.		117,423		2,741,827
American Equity Investment Life Holding Co.		11,220		123,532
American Financial Group, Inc.		61,618		2,417,274
AmTrust Financial Services, Inc.		154,828		4,599,940
Assurant, Inc.		40,830		1,422,517
Assured Guaranty Ltd.		273		3,849
Brown & Brown, Inc.		177,440		4,838,789
CNO Financial Group, Inc.		245,471		1,914,674
Everest Re Group Ltd.		330		34,152
FBL Financial Group, Inc., Cl. A		6,955		194,810
Greenlight Capital Re Ltd., Cl. A¹		21,710		551,868
Hanover Insurance Group, Inc.		190		7,435
HCC Insurance Holdings, Inc.		67,880		2,131,432


	Shares		Value
Insurance Continued
Horace Mann Educators Corp.		76,824	$	1,342,884
Maiden Holdings Ltd.		35,240		305,883
Meadowbrook Insurance Group, Inc.		127,040		1,116,682
Montpelier Re Holdings Ltd.		34,360		731,524
PartnerRe Ltd.		11,740		888,366
Primerica, Inc.		80,435		2,150,028
ProAssurance Corp.		18,176		1,619,300
Protective Life Corp.		45,812		1,347,331
Reinsurance Group of America, Inc.		35,361		1,881,559
RenaissanceRe Holdings Ltd.		17,980		1,366,660
StanCorp Financial Group, Inc.		6,650		247,114
Symetra Financial Corp.		172,303		2,174,464
Torchmark Corp.		34,737		1,755,955
Tower Group, Inc.		8,180		170,717

				38,282,420
Real Estate Investment Trusts—9.4%
Acadia Realty Trust		10,610		245,940
American Campus Communities, Inc.		24,817		1,116,269
Apartment Investment & Management Co.		26,880		726,566
Ares Commercial Real Estate Corp.		75,980		1,328,130
BRE Properties, Inc., Cl. A		5,607		280,462
Camden Property Trust		250		16,918
CBL & Associates Properties, Inc.		40,610		793,519
Chatham Lodging Trust		151,450		2,162,706
Colonial Properties Trust		10,050		222,507
CubeSmart		69,761		814,111
CYS Investments, Inc.		388,619		5,351,284
DCT Industrial Trust, Inc.		122,080		769,104
Digital Realty Trust, Inc.		138,435		10,392,315
Douglas Emmett, Inc.		11,330		261,723
Duke Realty Corp.		31,670		463,649
EastGroup Properties, Inc.		37,543		2,001,042
Education Realty Trust, Inc.		37,200		412,176
Essex Property Trust, Inc.		9,019		1,388,204
Extra Space Storage, Inc.		85,796		2,625,358
Federal Realty Investment Trust		18,231		1,897,665
First Industrial Realty Trust, Inc.¹		57,670		727,795
Glimcher Realty Trust		52,240		533,893
Hatteras Financial Corp.		229,270		6,557,122
Healthcare Realty Trust, Inc.		38,220		911,165
Home Properties of New York, Inc.		33,994		2,085,872
LaSalle Hotel Properties		370,486		10,795,962
Liberty Property Trust		29,640		1,091,938

8	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA


	Shares		Value
Real Estate Investment Trusts Continued
Mid-America Apartment Communities, Inc.		99,135	$	6,764,972
Omega Healthcare Investors, Inc.		34,140		768,150
Post Properties, Inc.		24,329		1,190,905
PS Business Parks, Inc.		17,331		1,173,655
Ramco-Gershenson Properties Trust		58,030		729,437
Realty Income Corp.		26,510		1,107,323
Regency Centers Corp.		23,060		1,096,964
RLJ Lodging Trust		1,950		35,354
Sabra Health Care REIT, Inc.		16,380		280,262
Sovran Self Storage, Inc.		29,839		1,494,636
Starwood Property Trust, Inc.		357,262		7,613,253
Sun Communities, Inc.		27,507		1,216,910
Sunstone Hotel Investors, Inc.¹		52,800		580,272
Tanger Factory Outlet Centers, Inc.		74,187		2,377,693
Taubman Centers, Inc.		33,223		2,563,487
Weingarten Realty Investors		7,030		185,170

				85,151,838
Real Estate Management & Development—0.0%
Granite Real Estate, Inc.		440		14,920
Thrifts & Mortgage Finance—1.5%
BankUnited, Inc.		162,805		3,838,942
Flushing Financial Corp.		23,933		326,207
OceanFirst Financial Corp.		17,040		244,694
Ocwen Financial Corp.¹		296,170		5,562,073
Oritani Financial Corp.		209,090		3,008,805
Washington Federal, Inc.		52,240		882,334

				13,863,055
Health Care—11.3%
Biotechnology—1.3%
Achillion Pharmaceuticals, Inc.¹		240,209		1,489,296
Halozyme Therapeutics, Inc.¹		250,182		2,216,613
Indevus Pharmaceuticals, Inc.¹		2,500		25
Medivation, Inc.¹		28,831		2,635,153
Myriad Genetics, Inc.¹		85,323		2,028,128
PDL BioPharma, Inc.		311,849		2,067,559
SciClone Pharmaceuticals, Inc.¹		91,020		638,050
United Therapeutics Corp.¹		16,014		790,771

				11,865,595
Health Care Equipment & Supplies—1.9%
ConMed Corp.		54,634		1,511,723
Cyberonics, Inc.¹		14,398		647,046
Dexcom, Inc.¹		364,450		4,723,272
Greatbatch, Inc.¹		196,051		4,452,318


	Shares		Value
Health Care Equipment & Supplies Continued
IDEXX Laboratories, Inc.¹		1,225	$	117,759
Orthofix International NV¹		72,350		2,984,438
ResMed, Inc.¹		45,150		1,408,680
RTI Biologics, Inc.¹		171,282		644,020
Steris Corp.		5,680		178,182
Vascular Solutions, Inc.¹		25,920		325,555
Young Innovations, Inc.		10,022		345,659

				17,338,652
Health Care Providers & Services—4.3%
AMERIGROUP Corp.¹		74,570		4,914,909
AmSurg Corp.¹		54,191		1,624,646
Assisted Living Concepts, Inc.		37,490		533,108
Bio-Reference Laboratories, Inc.¹		43,380		1,140,026
Chemed Corp.		25,040		1,513,418
DaVita, Inc.¹		7,510		737,557
Ensign Group, Inc. (The)		50,390		1,424,525
Hanger Orthopedic Group, Inc.¹		42,030		1,077,649
Health Management Associates, Inc., Cl. A¹		102,750		806,588
HealthSouth Corp.¹		423,380		9,847,819
HMS Holdings Corp.¹		85,339		2,842,642
Laboratory Corp. of America Holdings¹		2,510		232,451
LifePoint Hospitals, Inc.¹		4,331		177,484
Lincare Holdings, Inc.		72,087		2,452,400
Magellan Health Services, Inc.¹		1,651		74,840
Metropolitan Health Networks, Inc.¹		113,954		1,090,540
MModal, Inc.¹		5,880		76,322
Molina Healthcare, Inc.¹		154		3,613
Omnicare, Inc.		38,470		1,201,418
Patterson Cos., Inc.		47,886		1,650,630
PSS World Medical, Inc.¹		7,588		159,272
Schein (Henry), Inc.¹		18,430		1,446,571
Select Medical Holdings Corp.¹		142,132		1,436,955
Skilled Healthcare Group, Inc., Cl. A¹		12,120		76,114
Triple-S Management Corp., Cl. B¹		17,251		315,348
U.S. Physical Therapy, Inc.		36,293		922,931
Universal Health Services, Inc., Cl. B		26,280		1,134,245

				38,914,021
Health Care Technology—0.8%
Allscripts Healthcare Solutions, Inc.¹		18,020		196,959
MedAssets, Inc.¹		96,640		1,299,808
Medidata Solutions, Inc.¹		236		7,710
Omnicell, Inc.¹		71,850		1,051,884
SXC Health Solutions Corp.¹		48,800		4,841,448

				7,397,809

9	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Shares		Value
Life Sciences Tools & Services—0.8%
Bruker Corp.¹		32,820	$	436,834
Cambrex Corp.¹		137,894		1,297,583
Charles River Laboratories International, Inc.¹		19,990		654,872
eResearch Technology, Inc.¹		32,500		259,675
PerkinElmer, Inc.		6		155
Waters Corp.¹		59,105		4,697,074

				7,346,193
Pharmaceuticals—2.2%
Endo Pharmaceuticals Holdings, Inc.¹		38,770		1,201,095
MAP Pharmaceuticals, Inc.¹		125,170		1,875,047
Obagi Medical Products, Inc.¹		31,810		485,739
Questcor Pharmaceuticals, Inc.¹		272,580		14,512,159
Santarus, Inc.¹		70,150		497,364
Vivus, Inc.¹		55,630		1,587,680

				20,159,084
Industrials—15.1%
Aerospace & Defense—1.3%
B/E Aerospace, Inc.¹		202,180		8,827,179
Curtiss-Wright Corp.		45,497		1,412,682
Exelis, Inc.		12,253		120,815
LMI Aerospace, Inc.¹		14,490		251,836
Moog, Inc., Cl. A¹		37,279		1,541,487

				12,153,999
Air Freight & Logistics—0.6%
Forward Air Corp.		16,390		528,905
Hub Group, Inc., Cl. A¹		111,518		4,036,952
Park-Ohio Holdings Corp.¹		17,052		324,500
UTi Worldwide, Inc.		41,530		606,753

				5,497,110
Airlines—0.3%
Alaska Air Group, Inc.¹		1,650		59,235
Delta Air Lines, Inc.¹		60,950		667,403
JetBlue Airways Corp.¹		216,300		1,146,390
Spirit Airlines, Inc.¹		38,231		743,975

				2,617,003
Building Products—0.0%
Gibraltar Industries, Inc.¹		5,980		62,072
Commercial Services & Supplies—2.7%
Acco Brands Corp.¹		39,600		409,464
Cintas Corp.		39,980		1,543,628
Deluxe Corp.		91,137		2,272,957
Encore Capital Group, Inc.¹		48,071		1,423,863
Intersections, Inc.		32,350		512,748


	Shares		Value
Commercial Services & Supplies Continued
Knoll, Inc.		42,519	$	570,605
Miller (Herman), Inc.		47,870		886,552
Mine Safety Appliances Co.		880		35,411
Quad Graphics, Inc.		8,937		128,514
Steelcase, Inc., Cl. A		91,420		825,523
Sykes Enterprises, Inc.¹		27,236		434,687
Tetra Tech, Inc.¹		68,294		1,781,108
Waste Connections, Inc.		453,280		13,562,138

				24,387,198
Construction & Engineering—1.7%
Aecom Technology Corp.¹		71,820		1,181,439
Dycom Industries, Inc.¹		10,280		191,311
EMCOR Group, Inc.		3,927		109,249
KBR, Inc.		486,491		12,021,193
Primoris Services Corp.		32,348		388,176
URS Corp.		50,031		1,745,081

				15,636,449
Electrical Equipment—1.3%
AZZ, Inc.		2,407		147,453
Belden, Inc.		31,100		1,037,185
Brady Corp., Cl. A		35,440		974,954
EnerSys, Inc.¹		43,660		1,531,156
General Cable Corp.¹		78,493		2,036,108
Regal-Beloit Corp.		101,289		6,306,253

				12,033,109
Industrial Conglomerates—0.1%
Standex International Corp.		20,056		853,784
Machinery—1.5%
Actuant Corp., Cl. A		69,970		1,900,385
AGCO Corp.¹		240		10,975
Altra Holdings, Inc.		22,470		354,577
Barnes Group, Inc.		33,830		821,731
Briggs & Stratton Corp.		14,175		247,921
Columbus McKinnon Corp.¹		20,910		315,532
EnPro Industries, Inc.¹		870		32,512
Freightcar America, Inc.		21,090		484,437
Gardner Denver, Inc.		1,235		65,344
Kadant, Inc.¹		31,150		730,468
Kennametal, Inc.		970		32,156
Miller Industries, Inc.		30,206		481,182
NACCO Industries, Inc., Cl. A		4,970		577,763
Navistar International Corp.¹		20,081		569,698
Tennant Co.		1,810		72,310
Toro Co. (The)		1,164		85,310

10	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA


	Shares		Value
Machinery Continued
TriMas Corp.¹		39,700	$	797,970
Wabtec Corp.		61,079		4,764,773
Watts Water Technologies, Inc., Cl. A		39,790		1,326,599
Xylem, Inc.		5,293		133,225

				13,804,868
Professional Services—3.1%
Dun & Bradstreet Corp.		1,354		96,364
GP Strategies Corp.¹		34,531		637,788
ICF International, Inc.¹		53,131		1,266,643
Insperity, Inc.		49,228		1,331,617
Kforce, Inc.¹		20,110		270,681
Korn-Ferry International¹		373,481		5,359,452
Navigant Consulting, Inc.¹		74,122		936,902
Robert Half International, Inc.		573,675		16,389,895
TrueBlue, Inc.¹		86,798		1,343,633

				27,632,975
Road & Rail—2.1%
Celadon Group, Inc.		29,350		480,753
Genesee & Wyoming, Inc., Cl. A¹		103,361		5,461,595
Old Dominion Freight Line, Inc.¹		278,144		12,040,854
Swift Transportation Co.¹		138,430		1,308,164

				19,291,366
Trading Companies & Distributors—0.4%
Aceto Corp.		6,330		57,160
Applied Industrial Technologies, Inc.		36,653		1,350,663
Beacon Roofing Supply, Inc.¹		73,754		1,860,076

				3,267,899
Information Technology—14.2%
Communications Equipment—1.9%
Arris Group, Inc.¹		80,270		1,116,556
Aruba Networks, Inc.¹		371,326		5,588,456
Brocade Communications Systems, Inc.¹		312,872		1,542,459
Emulex Corp.¹		135,510		975,672
Finisar Corp.¹		366,481		5,482,556
Globecomm Systems, Inc.¹		33,659		341,302
Plantronics, Inc.		28,972		967,665
Polycom, Inc.¹		94,660		995,823

				17,010,489
Computers & Peripherals—1.6%
Diebold, Inc.		31,830		1,174,845
Electronics for Imaging, Inc.¹		85,464		1,388,790
Lexmark International, Inc., Cl. A		3,655		97,150
NCR Corp.¹		69,720		1,584,736


	Shares		Value
Computers & Peripherals Continued
QLogic Corp.¹		18,417	$	252,129
Western Digital Corp.¹		339,423		10,345,613

				14,843,263
Electronic Equipment & Instruments—0.4%
Avnet, Inc.¹		6,763		208,706
Celestica, Inc.¹		83,890		609,041
Elster Group SE, ADR¹		48,948		993,644
Flextronics International Ltd.¹		102,010		632,462
GSI Group, Inc.¹		46,190		529,337
Itron, Inc.¹		2,420		99,801
Molex, Inc.		9,450		226,233
MTS Systems Corp.		3,448		132,920
Newport Corp.¹		26,372		316,991
SYNNEX Corp.¹		8,650		298,339
Zygo Corp.¹		6,020		107,517

				4,154,991
Internet Software & Services—1.0%
Ancestry.com, Inc.¹		12,898		355,082
AOL, Inc.¹		12,898		362,176
Demand Media, Inc.¹		24,678		276,394
Dice Holdings, Inc.¹		82,060		770,543
Digital River, Inc.¹		8,971		149,098
EasyLink Services International Corp.¹		9,490		68,708
IAC/InterActiveCorp		21,450		978,120
j2 Global, Inc.		170,893		4,514,993
Move, Inc.¹		15,470		140,932
Perficient, Inc.¹		6,330		71,086
ValueClick, Inc.¹		79,867		1,309,020
XO Group, Inc.¹		6,370		56,502

				9,052,654
IT Services—2.9%
Acxiom Corp.¹		134,812		2,037,009
Alliance Data Systems Corp.¹		920		124,200
Amdocs Ltd.¹		42,358		1,258,880
Booz Allen Hamilton Holding Corp.		92,425		1,412,254
Broadridge Financial Solutions, Inc.		72,375		1,539,416
CACI International, Inc., Cl. A¹		149,784		8,241,116
Convergys Corp.		18,079		267,027
CSG Systems International, Inc.¹		64,466		1,113,972
Euronet Worldwide, Inc.¹		77,436		1,325,704
Genpact Ltd.¹		17,660		293,686
Global Cash Access, Inc.¹		103,790		748,326
Global Payments, Inc.		4,200		181,566

11	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Shares		Value
IT Services Continued
Heartland Payment Systems, Inc.		40,530	$	1,219,142
Henry (Jack) & Associates, Inc.		697		24,060
iGate Corp.¹		41,780		711,096
ManTech International Corp.		11,020		258,639
Maximus, Inc.		24,779		1,282,313
SAIC, Inc.		5,590		67,751
Sapient Corp.		111,570		1,123,510
TeleTech Holdings, Inc.¹		44,380		710,080
TNS, Inc.¹		20,250		363,285
Total System Services, Inc.		71,800		1,718,174

				26,021,206
Office Electronics—0.1%
Zebra Technologies Corp., Cl. A¹		19,330		664,179
Semiconductors & Semiconductor Equipment—2.8%
Advanced Micro Devices, Inc.¹		167,810		961,551
Brooks Automation, Inc.		20,738		195,767
Cabot Microelectronics Corp.		2,566		74,953
Cypress Semiconductor Corp.		4,974		65,756
Entegris, Inc.¹		155,840		1,330,874
GT Advanced Technologies, Inc.¹		238,006		1,256,672
Integrated Device Technology, Inc.¹		2,560		14,387
Integrated Silicon Solution, Inc.¹		39,390		397,445
IXYS Corp.¹		51,189		571,781
Magnachip Semiconductor Corp.¹		15,120		144,094
Semtech Corp.¹		466,548		11,346,447
Skyworks Solutions, Inc.¹		351,649		9,624,633

				25,984,360
Software—3.5%
Actuate Corp.¹		110,894		768,495
BMC Software, Inc.¹		6,270		267,604
Cadence Design Systems, Inc.¹		164,332		1,806,009
Ebix, Inc.		48,520		967,974
FactSet Research Systems, Inc.		40,383		3,753,196
Fair Isaac Corp.		3,606		152,462
Fortinet, Inc.¹		231,461		5,374,524
Infoblox, Inc.¹		9,130		209,351
JDA Software Group, Inc.¹		5,862		174,043
Manhattan Associates, Inc.¹		2,291		104,722
Mentor Graphics Corp.¹		88,840		1,332,600
Net 1 UEPS Technologies, Inc.¹		63,480		531,328
NetScout Systems, Inc.¹		44,305		956,545
SeaChange International, Inc.¹		37,740		310,600
Splunk, Inc.¹		3,000		84,300
Synopsys, Inc.¹		65,160		1,917,659


	Shares		Value
Software Continued
TIBCO Software, Inc.¹		364,616	$	10,909,311
Vasco Data Security International, Inc.¹		45,100		368,918
Websense, Inc.¹		85,776		1,606,584

				31,596,225
Materials—5.8%
Chemicals—2.4%
American Vanguard Corp.		3,311		88,039
Chemtura Corp.¹		48,340		700,930
Cytec Industries, Inc.		108,208		6,345,317
Fuller (H.B.) Co.		68,113		2,091,069
Huntsman Corp.		118,892		1,538,462
Innospec, Inc.¹		20,540		608,189
Koppers Holdings, Inc.		27,827		946,118
Kronos Worldwide, Inc.		70,940		1,120,143
LSB Industries, Inc.¹		10,780		333,210
Methanex Corp.		30,300		843,552
Olin Corp.		71,838		1,500,696
Omnova Solutions, Inc.¹		2,570		19,378
PolyOne Corp.		5		68
Schulman (A.), Inc.		64,768		1,285,645
TPC Group, Inc.¹		7,470		276,017
Tredegar Corp.		8,157		118,766
Valspar Corp. (The)		4,309		226,179
W.R. Grace & Co.¹		76,990		3,884,146

				21,925,924
Containers & Packaging—1.4%
Ball Corp.		2,644		108,536
Boise, Inc.		28,549		187,852
Graphic Packaging Holding Co.¹		124,947		687,209
Myers Industries, Inc.		51,795		888,802
Packaging Corp. of America		365,050		10,309,012
Silgan Holdings, Inc.		7,784		332,299

				12,513,710
Metals & Mining—1.3%
Aurizon Mines Ltd.¹		49,570		223,561
Century Aluminum Co.¹		342,087		2,507,498
Compass Minerals International, Inc.		65,864		5,024,106
Metals USA Holdings Corp.¹		33,180		527,894
Nevsun Resources Ltd.		20,820		67,457
Noranda Aluminum Holding Corp.		23,189		184,584
Steel Dynamics, Inc.		124,743		1,465,730
Worthington Industries, Inc.		103,337		2,115,308

				12,116,138

12	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA


	Shares		Value
Paper & Forest Products—0.7%
Buckeye Technologies, Inc.		60,202	$	1,715,155
Glatfelter		116,520		1,907,432
KapStone Paper & Packing Corp.¹		76,430		1,211,416
Neenah Paper, Inc.		33,070		882,638
Schweitzer-Mauduit International, Inc.		10,280		700,479

				6,417,120
Telecommunication Services—0.4%
Diversified Telecommunication Services—0.2%
Portugal Telecom SA, Sponsored ADR		90,610		403,215
Telecom Corp. of New Zealand Ltd., Sponsored ADR		54,681		515,642
Vonage Holdings Corp.¹		589,148		1,184,187

				2,103,044
Wireless Telecommunication Services—0.2%
Telephone & Data Systems, Inc.		12,986		276,472
USA Mobility, Inc.		90,266		1,160,821

				1,437,293
Utilities—3.3%
Electric Utilities—0.4%
El Paso Electric Co.		20,740		687,738
NV Energy, Inc.		51,910		912,578
Portland General Electric Co.		73,422		1,957,431

				3,557,747


	Shares			Value
Energy Traders—1.5%
AES Corp. (The)¹		1,050,087		$	13,472,616
Gas Utilities—0.1%
UGI Corp.		29,680			873,482
Multi-Utilities—0.8%
Avista Corp.		32,100			857,070
CenterPoint Energy, Inc.		31,400			649,038
CMS Energy Corp.		18,533			435,526
NorthWestern Corp.		45,846			1,682,548
Teco Energy, Inc.		100,713			1,818,877
Vectren Corp.		51,839			1,530,287

					6,973,346
Water Utilities—0.5%
American States Water Co.		890			35,226
Aqua America, Inc.		191,513			4,780,154

					4,815,380
Total Common Stocks (Cost $753,392,076)					879,860,884
Investment Company—3.2%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^2,3
(Cost $28,832,820)		28,832,820			28,832,820
Total Investments, at Value (Cost $782,224,896)		100.0	%		908,693,704
Other Assets Net of Liabilities		0.0			325,767
Net Assets		100.0	%	$	909,019,471

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		17,286,356		148,578,566		137,032,102		28,832,820

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$28,832,820		$27,220
a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

4. Escrow shares received as a result of issuer reorganization.

See accompanying Notes to Financial Statements.

13	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $753,392,076)	$	879,860,884
Affiliated companies (cost $28,832,820)		28,832,820
		908,693,704
Cash		912
Receivables and other assets:
Investments sold		7,064,692
Dividends		1,203,752
Shares of beneficial interest sold		542,355
Other		27,882
Total assets		917,533,297
Liabilities
Payables and other liabilities:
Investments purchased		7,507,891
Shares of beneficial interest redeemed		555,705
Shareholder communications		173,366
Distribution and service plan fees		159,617
Transfer and shareholder servicing agent fees		71,373
Trustees’ compensation		19,925
Other		25,949
Total liabilities		8,513,826
Net Assets	$	909,019,471
Composition of Net Assets
Par value of shares of beneficial interest	$	48,879
Additional paid-in capital		823,590,611
Accumulated net investment income		2,603,912
Accumulated net realized loss on investments		(43,692,739	)
Net unrealized appreciation on investments		126,468,808
Net Assets	$	909,019,471
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $80,592,385 and 4,302,191 shares of beneficial interest outstanding)		$18.73
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $828,427,086 and 44,576,727 shares of beneficial interest outstanding)		$18.58

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

14	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $11,246)	$	6,608,964
Affiliated companies		27,220
Interest		406
Total investment income		6,636,590
Expenses
Management fees		3,160,862
Distribution and service plan fees—Service shares		1,040,233
Transfer and shareholder servicing agent fees:
Non-Service shares		41,095
Service shares		416,091
Shareholder communications:
Non-Service shares		2,237
Service shares		22,561
Trustees’ compensation		22,652
Custodian fees and expenses		2,287
Administration service fees		750
Other		60,409
Total expenses		4,769,177
Less waivers and reimbursements of expenses		(71,058	)
Net expenses		4,698,119
Net Investment Income		1,938,471
Realized and Unrealized Gain
Net realized gain on investments from unaffiliated companies		41,403,442
Net change in unrealized appreciation/depreciation on investments		39,183,521

Net Increase in Net Assets Resulting from Operations	$	82,525,434

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

15	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	1,938,471		$	3,290,932
Net realized gain		41,403,442			130,521,268
Net change in unrealized appreciation/depreciation		39,183,521			(149,938,873	)
Net increase (decrease) in net assets resulting from operations		82,525,434			(16,126,673	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(465,213	)		(569,104	)
Service shares		(2,756,105	)		(3,235,789	)
		(3,221,318	)		(3,804,893	)
Beneficial Interest Transactions
Net decrease in net assets resulting from beneficial interest transactions:
Non-Service shares		(6,033,319	)		(13,898,613	)
Service shares		(34,725,412	)		(50,982,214	)
		(40,758,731	)		(64,880,827	)
Net Assets
Total increase (decrease)		38,545,385			(84,812,393	)
Beginning of period		870,474,086			955,286,479
End of period (including accumulated net investment income of $2,603,912 and $3,886,759, respectively)	$	909,019,471		$	870,474,086

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

16	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

FINANCIAL HIGHLIGHTS


	Six Month Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	17.17		$	17.66		$	14.40		$	10.65		$	18.20		$	19.15
Income (loss) from investment operations:
Net investment income²		.06			.10			.10			.08			.12			.09
Net realized and unrealized gain (loss)		1.61			(.48	)		3.25			3.78			(6.73	)		(.30	)
Total from investment operations		1.67			(.38	)		3.35			3.86			(6.61	)		(.21	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.11	)		(.11	)		(.09	)		(.11	)		(.08	)		(.06	)
Distributions from net realized gain		—			—			—			—			(.86	)		(.68	)
Total dividends and/or distributions to shareholders		(.11	)		(.11	)		(.09	)		(.11	)		(.94	)		(.74	)
Net asset value, end of period	$	18.73		$	17.17		$	17.66		$	14.40		$	10.65		$	18.20
Total Return, at Net Asset Value³	9.73%			(2.21)%			23.41%			37.20%			(37.83)%			(1.21)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	80,592		$	79,722		$	95,576		$	81,814		$	58,478		$	93,939
Average net assets (in thousands)	$	82,653		$	86,796		$	88,063		$	69,585		$	80,406		$	94,815
Ratios to average net assets:⁴
Net investment income		0.66	%		0.58	%		0.68	%		0.71	%		0.80	%		0.48	%
Total expenses⁵		0.82	%		0.83	%		0.85	%		0.91	%		0.75	%		0.73	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80	%		0.80	%		0.80	%		0.82	%		0.75	%		0.73	%
Portfolio turnover rate		41	%		108	%		73	%		140	%		130	%		115	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.82	%
Year Ended December 30, 2011	0.83	%
Year Ended December 31, 2010	0.85	%
Year Ended December 31, 2009	0.91	%
Year Ended December 31, 2008	0.75	%
Year Ended December 31, 2007	0.73	%

See accompanying Notes to Financial Statements.

17	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Month Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$17.02			$17.50			$14.28			$10.54			$18.03			$18.98
Income (loss) from investment operations:
Net investment income²		.04			.06			.07			.05			.08			.05
Net realized and unrealized gain (loss)		1.58			(.47	)		3.21			3.76			(6.67	)		(.29	)
Total from investment operations		1.62			(.41	)		3.28			3.81			(6.59	)		(.24	)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.06	)		(.07	)		(.06	)		(.07	)		(.04	)		(.03	)
Distributions from net realized gain		—			—			—			—			(.86	)		(.68	)
Total dividends and/or distributions to shareholders		(.06	)		(.07	)		(.06	)		(.07	)		(.90	)		(.71	)
Net asset value, end of period		$18.58			$17.02			$17.50			$14.28			$10.54			$18.03
Total Return, at Net Asset Value³	9.53%			(2.38)%			23.06%			36.88%			(38.00)%			(1.39)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	828,427		$	790,752		$	859,710		$	662,347		$	551,644		$	821,642
Average net assets (in thousands)	$	836,945		$	823,201		$	730,069		$	612,651		$	769,150		$	766,102
Ratios to average net assets:⁴
Net investment income		0.40	%		0.34	%		0.45	%		0.47	%		0.52	%		0.23	%
Total expenses⁵		1.07	%		1.08	%		1.10	%		1.15	%		0.99	%		0.97	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05	%		1.05	%		1.05	%		1.07	%		0.99	%		0.97	%
Portfolio turnover rate		41	%		108	%		73	%		140	%		130	%		115	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.07	%
Year Ended December 30, 2011	1.08	%
Year Ended December 31, 2010	1.10	%
Year Ended December 31, 2009	1.15	%
Year Ended December 31, 2008	0.99	%
Year Ended December 31, 2007	0.97	%

See accompanying Notes to Financial Statements.

18	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Main Street Small- & Mid-Cap Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

During the fiscal year ended December 30, 2011, the Fund utilized $126,312,039 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2017	$	80,902,957

19	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $39,499,515 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $41,403,442 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	787,847,078


Gross unrealized appreciation	$	151,497,635
Gross unrealized depreciation		(30,651,009)

Net unrealized appreciation	$	120,846,626

20	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

21	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

22	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	154,914,389	$	—	$	—	$	154,914,389
Consumer Staples		18,710,218		—		—		18,710,218
Energy		58,520,618		—		—		58,520,618
Financials		191,923,306		—		—		191,923,306
Health Care		103,021,329		—		25		103,021,354
Industrials		137,237,832		—		—		137,237,832
Information Technology		129,327,367		—		—		129,327,367
Materials		52,972,892		—		—		52,972,892
Telecommunication Services		3,540,337		—		—		3,540,337
Utilities		29,692,571		—		—		29,692,571
Investment Company		28,832,820		—		—		28,832,820

Total Assets	$	908,693,679	$	—	$	25	$	908,693,704

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

23	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		407,755		$	7,738,228			1,642,399		$	27,944,106
Dividends and/or distributions reinvested		25,160			465,213			30,896			569,104
Redeemed		(773,029	)		(14,236,760	)		(2,443,618	)		(42,411,823	)

Net decrease		(340,114	)	$	(6,033,319	)		(770,323	)	$	(13,898,613	)


Service Shares
Sold		2,645,066		$	49,062,732			6,217,855		$	105,066,282
Dividends and/or distributions reinvested		150,278			2,756,105			176,916			3,235,789
Redeemed		(4,691,537	)		(86,544,249	)		(9,038,872	)		(159,284,285	)

Net decrease		(1,896,193	)	$	(34,725,412	)		(2,644,101	)	$	(50,982,214	)

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	367,761,034	$	427,063,539

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

24	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $5,306 and $53,313 for Non-Service and Service shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Pending Litigation

25	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Pending Litigation Continued

complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.

26	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Main Street Small- & Mid-Cap Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

42,758,913

3,026,233

1,614,516

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

43,134,628

2,810,939

1,454,096

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

42,630,422

2,832,322

1,936,919

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

42,686,633

3,067,387

1,645,643

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

42,608,588

3,150,739

1,640,336

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

42,423,409

3,173,960

1,802,294

N/A

27	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited / Continued

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

42,737,238

3,064,372

1,598,053

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

42,604,242

3,201,194

1,594,227

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

42,089,770

3,179,811

2,130,083

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

28	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

29	OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA

OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND®/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Matthew P. Ziehl, Vice President Raymond Anello, Vice President Raman Vardharaj, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Money Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Investments

Financial Statements

LOGO

OPPENHEIMER MONEY FUND/VA

Portfolio Managers: Carol Wolf and Christopher Proctor, CFA


Current Yield For the 7-Day Period Ended 6/29/12¹
0.01%
For the 6-Month Period Ended 6/29/12¹
0.01%

The performance data quoted represents past performance, which does not guarantee future results. Yields include dividends in a hypothetical investment for the periods shown. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The yields take into account voluntary fee waivers and/or expense reimbursements, without which yields would have been lower. Some of these undertakings may be modified at any time, as indicated in the Fund’s prospectus. There is no guarantee that the Fund will maintain a positive yield. The Fund’s performance should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s performance does not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

Portfolio Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of investments.

1. June 29, 2012 was the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes to Financial Statements.

2	OPPENHEIMER MONEY FUND/VA

FUND PERFORMANCE DISCUSSION

Although short-term interest rates remained near historical lows throughout the reporting period, the Fund produced competitive levels of current income while maintaining liquidity and a stable net asset value.

Economic and Market Environment

The Fund’s performance over the first half of 2012 was primarily influenced by an unchanged monetary policy from the Federal Reserve (the “Fed”), which maintained its target for short-term interest rates in a range between 0% and 0.25%. This aggressively accommodative policy has been in place since December 2008, and the Fed has indicated that it is likely to remain unchanged for some time to come.

While short-term interest rates remained stable during the reporting period, longer term interest rates exhibited greater levels of volatility as economic expectations changed. 2012 began in the midst of a global economic recovery, as investors were encouraged by improving U.S. economic data and measures by European policymakers to stave off a more serious banking crisis. Meanwhile, inflation in China moderated and the local economy appeared headed for a “soft landing.”

By March, the U.S. unemployment rate had fallen to 8.2% together with the addition of hundreds of thousands of new non-farm jobs to the labor force. However, financial instability resurfaced in Europe, particularly when political developments in Greece brought its austerity programs into question, and fiscal conditions worsened in Italy and Spain. It later was estimated that U.S. GDP growth moderated to a relatively disappointing 1.9% annualized rate during the first quarter of 2012.

These troubling macroeconomic trends intensified in April and May. Although the U.S. unemployment rate fell to 8.1% in April, fewer new jobs were created. In May, the unemployment rate reversed course, ticking upward to 8.2%. June also produced disappointing employment data and manufacturing activity contracted for the first time in approximately three years. However, the long moribund U.S. housing market began to show signs of life as sale prices of single family homes moved higher in the spring.

These developments drove short-term interest rates higher in Europe. In addition, several European banks stopped issuing money market instruments, while others suffered credit-rating downgrades that made their instruments ineligible for U.S. money market funds. A new international banking agreement calling for more stringent capital requirements also reduced the supply of money market instruments. Meanwhile, investor demand remained strong from institutions and individuals seeking capital preservation in a challenging economic climate.

Portfolio Strategy

As might be expected in a volatile and changing market environment, we continued to focus on liquidity and safety throughout the reporting period. We maintained our focus on careful credit analysis, which led us to reduce the Fund’s exposure to European issuers and increase its allocation to issuers in the United States, Canada and Australia. We boosted the Fund’s holdings of commercial paper and variable-rate demand notes (VRDNs) as their yields became more attractive.

We also adopted a more defensive posture with regard to interest-rate sensitivity as economic conditions deteriorated in 2012. Although the Fund began the reporting period with a slightly longer weighted average maturity than market averages, we moved to a relatively shorter position by the reporting period’s end.

As of midyear, we have continued to monitor developments in the global economy, especially with regard to fiscal and monetary policies in Europe and the United States. In our judgment, the Fed is likely to keep short-term interest rates near current levels, suggesting that yields of money market instruments will remain very low compared to long-term historical norms. However, changes in supply-and-demand dynamics, stemming in part from regulatory changes, could give rise to opportunities to capture modestly higher yields. Should such opportunities present themselves, we may increase the Fund’s weighted average maturity. Until then, we expect to retain a conservative investment posture.

3	OPPENHEIMER MONEY FUND/VA

FUND PERFORMANCE DISCUSSION

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or 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.

4	OPPENHEIMER MONEY FUND/VA

FUND EXPENSES

Fund Expenses. As a shareholder of the Fund, you incur ongoing costs, including management fees; service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio, and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
	$	1,000.00	$	1,000.10	$	1.58

Hypothetical (5% return before expenses)
		1,000.00		1,023.14		1.60

Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/366 (to reflect the one-half year period). The annualized expense ratio, excluding indirect expenses from affiliated fund, based on the 6-month period ended June 29, 2012 is as follows:

Expense Ratio

0.32%

The expense ratio reflects reduction to voluntary waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” table in the Fund’s financial statements, included in this report, also shows the gross expense ratio, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

5	OPPENHEIMER MONEY FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Maturity Date**		Final Legal Maturity Date***		Principal Amount		Value

Certificates of Deposit—18.4%
Yankee Certificates of Deposit—18.4%
Bank of Nova Scotia, Houston TX:
0.33%		12/7/12		12/7/12		$5,000,000	$	5,000,000
0.34%		12/10/12		12/10/12		2,000,000		2,000,000
0.35%		8/8/12		8/8/12		1,000,000		1,000,000
DnB Bank ASA NY, 0.17%		7/3/12		7/3/12		4,000,000		4,000,000
Nordea Bank Finland plc, New York, 0.25%		7/10/12		7/10/12		4,000,000		4,000,000
Rabobank Nederland NV, New York, 0.39%		7/20/12		7/20/12		3,000,000		3,000,000
Royal Bank of Canada, New York:
0.49%¹		7/1/12		6/7/13		3,500,000		3,500,000
0.54%¹		9/14/12		12/11/12		3,000,000		3,000,000
0.77%		11/28/12		11/28/12		1,300,000		1,300,000
Westpac Banking Corp., New York, 0.24%		10/4/12		10/4/12		3,000,000		3,000,000

Total Certificates of Deposit (Cost $29,800,000)								29,800,000
Direct Bank Obligations—13.1%
Commonwealth Bank of Australia:
0.23%²		9/6/12		9/6/12		2,500,000		2,498,930
0.24%²		9/7/12		9/7/12		4,600,000		4,597,915
National Australia Funding (Delaware), Inc.:
0.20%²		8/7/12		8/7/12		2,200,000		2,199,548
0.32%²		10/23/12		10/23/12		3,000,000		2,997,008
Svenska Handelsbanken, Inc., 0.26%²		7/10/12		7/10/12		3,700,000		3,699,760
Toronto Dominion Holdings USA, Inc., 0.20%²		9/5/12		9/5/12		5,200,000		5,198,093

Total Direct Bank Obligations (Cost $21,191,254)								21,191,254
Short-Term Notes/Commercial Paper—65.6%
Banks—2.6%
HSBC USA, Inc., 0.28%		7/23/12		7/23/12		2,700,000		2,699,538
PNC Bank NA, 0.21%		7/23/12		7/23/12		1,500,000		1,499,808

								4,199,346
Diversified Financial Services—3.5%
General Electric Capital Corp.:
0.32%		8/3/12		8/3/12		1,600,000		1,599,531
0.33%		10/29/12		10/29/12		4,000,000		3,995,600

								5,595,131
Food Products—2.0%
Nestle Financial International Ltd., 0.19%		7/17/12		7/17/12		3,300,000		3,299,721
Leasing & Factoring—5.9%
American Honda Finance Corp., 0.71%^1,3		9/26/12		9/26/12		1,500,000		1,500,000
Toyota Motor Credit Corp.:
0.63%		2/6/13		2/6/13		2,700,000		2,689,605
0.67%¹		7/18/12		10/18/12		3,000,000		3,000,000
0.67%¹		9/21/12		12/17/12		2,300,000		2,300,000

								9,489,605

6	OPPENHEIMER MONEY FUND/VA


	Maturity Date**		Final Legal Maturity Date***		Principal Amount		Value

Municipal—13.9%
Austin Cnty., TX Industrial Development Corp. Revenue Bonds, Justin Industries, Inc., Series 1984, 0.18%¹		7/7/12		7/7/12	$	5,000,000	$	5,000,000
Carroll Cnty., KY Solid Waste Disposal Revenue Bonds, North American Stainless Project, Series 2006, 0.20%¹		7/7/12		7/7/12		4,300,000		4,300,000
Chicago, IL Industrial Development Revenue Bonds, Freedman Seating Co. Project, Series 1998, 0.33%¹		7/7/12		7/7/12		1,215,000		1,215,000
Cobb Cnty., GA Development Authority Revenue Bonds, Presbyterian Village-Austell, Inc., 0.29%¹		7/7/12		7/7/12		2,570,000		2,570,000
IL Finance Authority, Freedman Seating Co. Project, Series 2005, 0.33%¹		7/7/12		7/7/12		1,085,000		1,085,000
Jackson Cnty., MO Industrial Development Authority Bonds, Kansas City Hospice, Inc., Series 2005, 0.30%¹		7/7/12		7/7/12		5,600,000		5,600,000
San Antonio, TX Industrial Development Authority Revenue Bonds, Tindall Corp. Project, 0.26%¹		7/7/12		7/7/12		2,700,000		2,700,000

								22,470,000
Oil, Gas & Consumable Fuels—4.3%
Total Capital Canada:
0.20%²		8/9/12		8/9/12		4,500,000		4,499,025
0.23%²		7/10/12		7/10/12		2,500,000		2,499,856

								6,998,881
Personal Products—4.9%
Reckitt Benckiser Treasury Services plc:
0.38%²		11/7/12		11/7/12		1,000,000		998,638
0.55%²		10/11/12		10/11/12		4,000,000		3,993,767
0.55%²		10/18/12		10/18/12		1,000,000		998,335
0.70%²		7/6/12		7/6/12		2,000,000		1,999,806

								7,990,546
Receivables Finance—16.5%
Alpine Securitization Corp.:
0.18%		7/2/12		7/2/12		2,800,000		2,799,986
0.20%		7/18/12		7/18/12		1,600,000		1,599,849
0.23%		7/19/12		7/19/12		3,500,000		3,499,598
Fairway Finance Corp., 0.20%²		8/17/12		8/17/12		5,000,000		4,998,694
Gemini Securitization Corp., 0.22%²		7/2/12		7/2/12		7,800,000		7,799,952
Market Street Funding LLC, 0.25%²		9/25/12		9/25/12		1,000,000		999,403
Mont Blanc Capital Corp.:
0.22%²		7/27/12		7/27/12		1,000,000		999,841
0.23%²		7/19/12		7/19/12		3,000,000		2,999,655
Thunder Bay Funding LLC, 0.23%^2,3		9/24/12		9/24/12		1,100,000		1,099,403

								26,796,381
Special Purpose Financial—12.0%
Concord Minutemen Cap. Corp. LLC:
0.45%		7/2/12		7/2/12		1,000,000		999,988
0.45%		7/11/12		7/11/12		1,500,000		1,499,813
0.55%		7/5/12		7/5/12		3,000,000		2,999,817
Crown Point Capital Co., 0.18%		7/2/12		7/2/12		5,800,000		5,799,966
FCAR Owner Trust I, 0.27%		9/6/12		9/6/12		3,000,000		2,998,493

7	OPPENHEIMER MONEY FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Maturity Date**		Final Legal Maturity Date***		Principal Amount			Value

Special Purpose Financial Continued
Lexington Parker Capital Co. LLC:
0.38%²		8/2/12		8/2/12	$	3,500,000		$	3,498,818
0.38%²		8/6/12		8/6/12		1,700,000			1,699,354

									19,496,249
Total Short-Term Notes/Commercial Paper (Cost $106,335,860)									106,335,860
U.S. Government Obligations—1.8%
U.S. Treasury Nts.:
0.38%		6/30/13		6/30/13		2,000,000			2,002,978
1.00%		7/15/13		7/15/13		1,000,000			1,007,837

Total U.S. Government Obligations (Cost $3,010,815)									3,010,815
Total Investments, at Value (Cost $160,337,929)						98.9	%		160,337,929
Other Assets Net of Liabilities						1.1			1,838,791
Net Assets						100.0	%	$	162,176,720

Footnotes to Statement of Investments

Short-term notes and direct bank obligations are generally traded on a discount basis; the interest rate shown is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown.

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

** The Maturity Date represents the date used to calculate the Fund’s weighted average maturity as determined under Rule 2a-7.

*** If different from the Maturity Date, the Final Legal Maturity Date includes any maturity date extensions which may be affected at the option of the issuer or unconditional payments of principal by the issuer which may be affected at the option of the Fund, and represents the date used to calculate the Fund’s weighted average life as determined under Rule 2a-7.

1. Represents the current interest rate for a variable or increasing rate security.

2. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $60,275,801 or 37.17% of the Fund’s net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees.

3. 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 $2,599,403 or 1.60% of the Fund’s net assets as of June 29, 2012.

See accompanying Notes to Financial Statements

8	OPPENHEIMER MONEY FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value (cost $160,337,929)—see accompanying statement of investments	$	160,337,929
Cash		1,659,910
Receivables and other assets:
Shares of beneficial interest sold		245,327
Interest		35,601
Other		14,685
Total assets		162,293,452
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		76,960
Transfer and shareholder servicing agent fees		13,273
Trustees’ compensation		9,659
Legal, auditing and other professional fees		7,385
Shareholder communications		4,695
Dividends		607
Other		4,153
Total liabilities		116,732
Net Assets	$162,176,720
Composition of Net Assets
Par value of shares of beneficial interest	$	162,169
Additional paid-in capital		162,006,357
Accumulated net investment income		2,303
Accumulated net realized gain on investments		5,891
Net Assets—applicable to 162,168,610 shares of beneficial interest outstanding	$	162,176,720
Net Asset Value, Redemption Price Per Share and Offering Price Per Share		$1.00

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

9	OPPENHEIMER MONEY FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Interest	$	265,825
Expenses
Management fees		360,922
Transfer and shareholder servicing agent fees		80,204
Trustees’ compensation		9,752
Shareholder communications		8,234
Administration service fees		750
Custodian fees and expenses		696
Other		19,793
Total expenses		480,351
Less waivers and reimbursements of expenses		(222,910	)
Net expenses		257,441
Net Investment Income		8,384
Net Realized Gain on Investments		5,891

Net Increase in Net Assets Resulting from Operations	$	14,275

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER MONEY FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	8,384		$	16,277
Net realized gain		5,891			2,219
Net increase in net assets resulting from operations		14,275			18,496
Dividends and/or Distributions to Shareholders
Dividends from net investment income		(8,384	)		(16,277	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions		(1,802,565	)		14,274,020
Net Assets
Total increase (decrease)		(1,796,674	)		14,276,239
Beginning of period		163,973,394			149,697,155
End of period (including accumulated net investment income of $2,303 and $2,303, respectively)	$	162,176,720		$	163,973,394

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

11	OPPENHEIMER MONEY FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹			Year Ended December 31,
	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Income from investment operations-net investment income and net realized gain²		—	³		—	³		—	³		—	³		.03			.05
Dividends and/or distributions to shareholders:
Dividends from net investment income		—	³		—	³		—	³		—	³		(.03	)		(.05	)
Distributions from net realized gain		—			—			—			—			—			—	³
Total dividends and/or distributions to shareholders		—	³		—	³		—	³		—	³		(.03	)		(.05	)
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
Total Return⁴	0.01%			0.01%			0.03%			0.32%			2.78%			4.98%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	162,177		$	163,973		$	149,697		$	180,955		$	243,356		$	189,749
Average net assets (in thousands)	$	161,279		$	156,127		$	164,258		$	218,079		$	212,564		$	181,271
Ratios to average net assets:⁵
Net investment income		0.01	%		0.01	%		0.01	%		0.35	%		2.72	%		4.86	%
Total expenses		0.60	%		0.61	%		0.61	%		0.57	%		0.50	%		0.50	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.32	%		0.29	%		0.35	%		0.48	%		0.50	%		0.50	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Less than $0.005 per share.

5. Annualized for periods less than one full year.

See accompanying Notes to Financial Statements.

12	OPPENHEIMER MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Money Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, 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 Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually but may be paid at other times to maintain the net asset value per share at $1.00. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

Investment Income. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

13	OPPENHEIMER MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined under procedures approved by the Fund’s Board of Trustees’.

14	OPPENHEIMER MONEY FUND/VA

methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Certificates of Deposit	$	—	$	29,800,000	$	—	$	29,800,000
Direct Bank Obligations		—		21,191,254		—		21,191,254
Short-Term Notes/Commercial Paper		—		106,335,860		—		106,335,860
U.S. Government Obligations		—		3,010,815		—		3,010,815

Total Assets	$	—	$	160,337,929	$	—	$	160,337,929

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Sold		32,123,803			$ 32,123,803			112,694,489			$112,694,489
Dividends and/or distributions reinvested		8,384			8,384			16,277			16,277
Redeemed		(33,934,752	)		(33,934,752	)		(98,436,746	)		(98,436,746	)

Net increase (decrease)		(1,802,565	)		$(1,802,565	)		14,274,020			$14,274,020

15	OPPENHEIMER MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $500 million	0.450	%
Next $500 million	0.425
Next $500 million	0.400
Over $1.5 billion	0.375

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Waivers and Reimbursements of Expenses. The Manager has voluntarily undertaken to waive fees and/or reimburse expenses to the extent necessary to assist the Fund in attempting to maintain a positive yield. There is no guarantee that the Fund will maintain a positive yield. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $222,910.

The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as a percentage of daily net assets, will not exceed the annual rate of 0.50%.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

5. Pending Litigation

16	OPPENHEIMER MONEY FUND/VA

17	OPPENHEIMER MONEY FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Money Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

143,792,630

11,761,224

7,542,630

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

143,287,584

12,360,528

7,448,372

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

144,220,293

11,346,635

7,529,555

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

140,754,722

11,368,890

10,972,872

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

141,638,879

11,410,951

10,046,653

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

140,627,091

12,443,690

10,025,703

N/A

18	OPPENHEIMER MONEY FUND/VA

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

140,719,480

12,149,168

10,227,836

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

141,811,520

11,135,873

10,149,090

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

141,662,727

11,475,382

9,958,375

N/A

2j: Approve a change in the fund’s investment objective


For	Against		Abstain		Broker Non Vote
141,614,767		11,573,793		9,907,924		50,749,721


For	Against		Abstain		Broker Non Vote
821,085,084		23,597,959		50,749,721		50,749,721

19	OPPENHEIMER MONEY FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30^th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

20	OPPENHEIMER MONEY FUND/VA

OPPENHEIMER MONEY FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Carol E. Wolf, Vice President Christopher Proctor, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Global Strategic Income Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Portfolio Managers: Arthur P. Steinmetz, Krishna Memani, Joseph Welsh, CFA and Sara J. Zervos, Ph.D.


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	6.13%
Service Shares	5.92
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	10-Year
Non-Service Shares	2.14%	5.77%	7.45%
Service Shares	1.84	5.48	7.14
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	0.78%		0.72%
Service Shares	1.03		0.97

Portfolio Allocation

LOGO

*Represents a value of less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of investments.


Corporate Bonds & Notes—Top Ten Industries
Oil, Gas & Consumable Fuels		4.6%
Commercial Banks		3.1
Media		1.5
Electric Utilities		1.5
Hotels, Restaurants & Leisure		1.1
Wireless Telecommunication Services		1.0
Diversified Telecommunication Services		1.0
Capital Markets		0.7
Diversified Financial Services		0.6
Food Products		0.6

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FUND PERFORMANCE DISCUSSION

For the six-month period, Oppenheimer Global Strategic Income Fund/VA’s Non-Service shares provided a total return of 6.13%. In comparison, the Fund’s benchmarks, the Barclays Capital U.S. Aggregate Bond Index and the Citigroup World Government Bond Index, returned 2.37% and 0.41%, respectively.¹

The Fund produced higher returns than its benchmarks in a challenging market environment over the first half of 2012, primarily due to its allocation to credit both in the United States and internationally. A relatively defensive investment posture with regard to foreign currencies also helped fuel the Fund’s performance.

Economic and Market Overview

The reporting period began in the midst of a recovery from severe bouts of weakness in global financial markets, as investors were encouraged by the European Central Bank launching the Long Term Refinancing Operation (LTRO), a sign of apparent progress in addressing the European sovereign debt crisis. China also seemed to make progress in taming inflationary pressures while leaving its economic expansion largely intact, and U.S. employment and manufacturing trends showed marked improvement. These positive developments restored global investors’ appetite for risk, sparking a rebound during the first quarter of 2012 among securities and currencies that had been severely punished during the previous downturn. Yield differences narrowed along the global markets’ credit-quality spectrum, and yields of sovereign bonds from troubled European nations declined to more manageable levels.

However, investor sentiment again weakened early in the second quarter of the year, when U.S employment gains moderated, political developments in Europe threatened to derail proposed bailouts of some of the region’s troubled governments, and the economic slowdown in China appeared to be more severe than expected. While global bond markets again rallied to a degree in the final weeks of the reporting period, renewed market volatility offset a portion of their previous gains, particularly among European sovereign bonds. In contrast, U.S. and international high yield securities held up relatively well, withstanding economic concerns, while yields of U.S. Treasury securities plunged to record lows. Meanwhile, the U.S. dollar strengthened against most foreign currencies over the first half of 2012 as investors increasingly sought traditional safe havens, seemingly without regard to underlying market fundamentals and valuations.

Fund Review

During the reporting period, the Fund had its largest exposure to international bonds, followed by allocations to U.S. high yield securities and U.S. high-grade fixed-income securities. Towards the end of the period, the Fund substantially increased its allocation to U.S. mortgage-backed securities.

The Fund’s below investment grade investments contributed to Fund performance, due to our security selection strategy. An allocation to senior loans, which occupy a more senior position in corporations’ capital structures, also fared well. Our allocation to local currency-denominated debt performed well. We continued to favor countries with positive real interest rates such as Brazil, Mexico and South Africa. An emphasis on the Brazilian real was counterproductive as it ranked among the world’s weaker currencies over the first six months of the year. Overweight exposure to the Mexican peso and Colombian peso had relatively little impact on the Fund’s performance.

Investments in U.S. dollar-denominated debt were positive contributors to Fund performance. Our investments in Venezuelan debt performed well, as yield differences narrowed along the market’s quality spectrum in anticipation of a possible change in political leadership. Emerging market corporate debt also generated positive returns.

Early in the reporting period, we reduced the Fund’s sensitivity to fluctuating currency exchange rates, particularly with respect to developed markets in Europe and Japan. This move helped cushion the Fund from the full brunt of foreign currency weakness stemming from a stronger U.S. dollar compared to the euro. We continued to overweight

3	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FUND PERFORMANCE DISCUSSION

emerging markets over developed markets. The Fund also had an allocation to European covered bonds, which are bonds backed by pools of residential mortgage backed-securities. These investments fared well compared to their sovereign counterparts in the region. We were underweight the sovereign debt of Eastern European nations, which helped relative Fund performance as we generally avoided currency plays in this region. Eastern European markets were volatile during the period as a result of proximity to the European Union.

Within high-grade fixed income, we continued to own agency mortgage-backed securities rather than U.S. Treasuries given that prepayments remain low and the housing market may be bottoming. The Fund also had a significant allocation to non-agency mortgage-backed securities and commercial mortgage-backed securities, which generated strong returns over the period.

We reduced the portfolio’s average duration when yields fell to historically low levels, suggesting to us that further declines were unlikely. In hindsight, we made this move too early, as yields did fall further, detracting from the Fund’s relative performance.

Outlook

In our judgment, recent market volatility has created opportunities to purchase fundamentally sound bonds across a variety of markets at attractive valuations. In particular, we believe that economies in the emerging markets are now more resilient than has been the case historically due to banking and financial reforms, greater participation in global trade, relatively light sovereign debt loads, and ample flexibility among central banks to manage monetary policy. Conversely, we have continued to proceed cautiously in developed currency and bond markets. We currently favor credit over high-grade fixed income.

We believe that the economy will continue to improve albeit slowly and China does not have a hard landing. In addition, companies are in good financial shape, have cash on their balance sheets and have taken the opportunity to refinance their debt. In our opinion, this makes for a good environment to take credit risk.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FUND EXPENSE

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,061.30	$	3.63
Service shares		1,000.00		1,059.20		4.90

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,021.22		3.55
Service Shares		1,000.00		1,019.98		4.81

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended June 29, 2012 are as follows:


Class	Expense Ratios
Non-Service Shares		0.71	%
Service Shares		0.96

5	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012*/ Unaudited


	Shares		Value

Wholly-Owned Subsidiary—0.1%
Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd.^1,2 (Cost $1,500,000)		15,000	$	1,457,156

	Principal Amount
Asset-Backed Securities—2.0%
Ally Auto Receviables Trust, Automobile Receivable Nts., Series 2012-A, Cl. D, 3.15%, 10/15/18³	$	2,125,000		2,128,317
AmeriCredit Automobile Receivables Trust 2012-1, Automobile Receivables-Backed Nts., Series 2012-1, Cl. D, 4.72%, 3/8/18		8,055,000		8,515,185
AmeriCredit Automobile Receivables Trust 2012-3, Automobile Receivable Nts., Series 2012-3, Cl. D, 3.59%, 7/9/18		2,625,000		2,627,878
Avis Budget Rental Car Funding AESOP LLC, Automobile Receivable Nts., Series 2011-2A, Cl. A, 2.37%, 11/20/14³		750,000		765,028
CarMax Auto Owner Trust 2012-2, Automobile Receivables Nts., Series 2012-2, Cl. D, 3.77%, 11/15/18		1,200,000		1,204,759
Citibank Omni Master Trust, Credit Card Receivables, Series 2009-A17, Cl. A17, 4.90%, 11/15/18³		615,000		671,853
DSC Floorplan Master Owner Trust, Automobile Receivable Nts., Series 2011-1, Cl. A, 3.91%, 3/15/16		520,000		533,877
DT Auto Owner Trust 2011-1A, Automobile Receivable Nts., Series 2011-1A, Cl. C, 3.05%, 8/15/15³		720,000		721,762
Embarcadero Aircraft Securitization Trust, Airplane Receivable Nts., Series 2000-A, Cl. B, 0.656%, 8/15/25^4,5		1,820,063		—
Exeter Automobile Receivables Trust, Automobile Receivable Nts., Series 2012-1A, Cl. C, 5.27%, 10/16/17³		1,200,000		1,233,716
Ice 1 Em CLO Ltd./Ice 1 Em CLO Corp., Sr. Sec. Sub. Term Nts.: Series 2007-1A, Cl. B, 2.456%, 8/15/22^5,6		7,870,000		5,351,600


	Principal Amount		Value

Asset-Backed Securities Continued
Ice 1 Em CLO Ltd./Ice 1 Em CLO Corp., Sr. Sec. Sub. Term Nts.: Continued
Series 2007-1A, Cl. C,
3.756%, 8/15/22^5,6	$	5,270,000	$	3,372,800
Series 2007-1A, Cl. D,
5.756%, 8/15/22^5,6		5,270,000		3,267,400
Santander Drive Auto Receivables Trust 2010-B, Automobile Receivables Nts., Series 2010-B, Cl. C, 3.02%, 10/17/16³		585,000		595,495
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17⁵		173,239		173,696
Santander Drive Auto Receivables Trust 2012-3, Automobile Receivables Nts.: Series 2012-3, Cl. C, 3.27%, 4/16/18		5,830,000		5,844,085
Series 2012-3, Cl. D,
3.91%, 5/15/18		4,380,000		4,399,198
Santander Drive Auto Receivables Trust 2012-4, Automobile Receivables Nts., Series 2012-4, Cl. D, 4.18%, 6/15/18⁷		3,510,000		3,526,761
SLM Student Loan Trust, Student Loan Receivables, Series 2005-B, Cl. B, 0.868%, 6/15/39⁶		2,487,000		1,622,803
SNAAC Auto Receivables Trust, Automobile Receivable Nts.: Series 2012-1A, Cl. B, 3.11%, 6/15/17³		525,000		526,819
Series 2012-1A, Cl. C,
4.38%, 6/15/17³		545,000		546,813

Total Asset-Backed Securities (Cost $54,630,470)				47,629,845
Corporate Loans—0.2%
Autoparts Holdings Ltd., Sr. Sec. Credit Facilities 1st Lien Term Loan, 5%, 7/21/17^6,7		718,191		694,401
Chesapeake Energy Corp., Sr. Sec. Credit Facilities Term Loan, 7%, 12/2/17^6,7		1,015,000		1,007,388
Hallertau SPC, Sr. Sec. Credit
Facilities Term Loan, 7.94%, 9/17/13⁴		12,143,750		4,250,313

Total Corporate Loans (Cost $6,001,311)				5,952,102

6	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Mortgage-Backed Obligations—29.6%
Government Agency—17.1%
FHLMC/FNMA/FHLB/Sponsored—16.7%
Federal Home Loan Mortgage Corp.:
4.50%, 8/1/42⁷	$	4,305,000	$	4,597,605
5%, 9/15/33		1,278,031		1,383,021
5.50%, 9/1/39		1,250,173		1,362,109
6%, 5/15/18-10/1/37		628,028		686,631
6.50%, 3/15/18-8/15/32		1,528,011		1,722,415
7%, 10/1/31-10/1/37		366,746		428,856
7.50%, 1/1/32		649,643		794,591
Federal Home Loan Mortgage Corp.,
Gtd. Real Estate Mtg. Investment
Conduit Multiclass
Pass-Through Certificates:
Series 1360, Cl. PZ,
7.50%, 9/15/22		739,342		853,062
Series 151, Cl. F, 9%, 5/15/21		21,428		24,646
Series 1674, Cl. Z, 6.75%, 2/15/24		567,545		645,463
Series 1897, Cl. K, 7%, 9/15/26		1,322,113		1,538,464
Series 2006-11, Cl. PS, 23.667%, 3/25/36⁶		396,366		573,962
Series 2043, Cl. ZP, 6.50%, 4/15/28		529,100		610,090
Series 2106, Cl. FG, 0.692%, 12/15/28⁶		908,905		915,779
Series 2122, Cl. F, 0.692%, 2/15/29⁶		27,003		27,209
Series 2148, Cl. ZA, 6%, 4/15/29		718,886		805,677
Series 2195, Cl. LH, 6.50%, 10/15/29		399,147		458,141
Series 2326, Cl. ZP, 6.50%, 6/15/31		53,079		61,161
Series 2344, Cl. FP, 1.192%, 8/15/31⁶		277,301		283,577
Series 2368, Cl. PR, 6.50%, 10/15/31		219,895		253,426
Series 2412, Cl. GF, 1.192%, 2/15/32⁶		496,873		508,112
Series 2449, Cl. FL, 0.792%, 1/15/32⁶		346,206		350,376
Series 2451, Cl. FD, 1.242%, 3/15/32⁶		177,334		181,584
Series 2453, Cl. BD, 6%, 5/15/17		68,744		74,007
Series 2461, Cl. PZ, 6.50%, 6/15/32		821,698		948,195
Series 2464, Cl. FI, 1.242%, 2/15/32⁶		161,768		164,952
Series 2470, Cl. AF, 1.242%, 3/15/32⁶		304,262		311,553
Series 2470, Cl. LF, 1.242%, 2/15/32⁶		165,546		168,804
Series 2471, Cl. FD, 1.242%, 3/15/32⁶		242,045		246,879
Series 2477, Cl. FZ, 0.792%, 6/15/31⁶		662,127		668,775
Series 2500, Cl. FD, 0.742%, 3/15/32⁶		22,718		22,930
Series 2517, Cl. GF, 1.242%, 2/15/32⁶		143,934		146,767
Series 2526, Cl. FE, 0.642%, 6/15/29⁶		42,839		43,075
Series 2551, Cl. FD, 0.642%, 1/15/33⁶		19,380		19,494
Series 2668, Cl. AZ, 4%, 9/1/18		141,200		148,715
Series 2676, Cl. KY, 5%, 9/15/23		2,947,209		3,238,756
Series 3025, Cl. SJ, 23.864%, 8/15/35⁶		460,303		683,046
Series 3465, Cl. HA, 4%, 7/1/17		93,372		96,421
Series 3617, Cl. DC, 4%, 7/1/27		433,922		447,394
Series 3676, Cl. DA, 4%, 4/1/22		294,727		298,061
Series 3822, Cl. JA, 5%, 6/1/40		149,509		159,127
Series 3848, Cl. WL, 4%, 4/1/40		716,206		758,316
Series 3917, Cl. BA, 4%, 6/1/38		1,006,742		1,061,910


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security: Series 192, Cl. IO, 12.741%, 2/1/28⁸	$	19,306	$	3,165
Series 205, Cl. IO, 14.026%, 9/1/29⁸		109,195		18,664
Series 2074, Cl. S, 57.575%, 7/17/28⁸		28,594		6,231
Series 2079, Cl. S, 68.89%, 7/17/28⁸		49,616		11,127
Series 2136, Cl. SG, 72.156%, 3/15/29⁸		1,289,519		257,871
Series 2399, Cl. SG, 67.824%, 12/15/26⁸		744,443		149,947
Series 243, Cl. 6, 0.505%, 12/15/32⁸		289,009		63,026
Series 2437, Cl. SB, 75.573%, 4/15/32⁸		2,245,987		487,245
Series 2526, Cl. SE, 43.335%, 6/15/29⁸		53,783		11,298
Series 2795, Cl. SH, 18.498%, 3/15/24⁸		1,102,414		178,052
Series 2802, Cl. AS, 87.879%, 4/15/33⁸		218,780		13,139
Series 2920, Cl. S, 66.285%, 1/15/35⁸		490,812		83,910
Series 3110, Cl. SL, 99.999%, 2/15/26⁸		278,263		38,855
Series 3450, Cl. BI, 12.377%, 5/15/38⁸		579,156		96,106
Series 3659, Cl. IE, 7.107%, 3/1/19⁸		1,236,356		116,189
Series 3662, Cl. SM, 24.883%, 10/15/32⁸		379,997		50,695
Series 3685, Cl. EI, 10.90%, 3/1/19⁸		1,096,755		87,786
Series 3736, Cl. SN, 6.506%, 10/15/40⁸		960,283		158,108
Federal Home Loan Mortgage Corp., Mtg.-Linked Global Debt Securities, 2.06%, 1/15/22		2,007,686		2,050,786
Federal National Mortgage Assn.: 2.50%, 7/1/27⁷		90,885,000		93,668,353
2.74%, 10/1/36⁶		4,001,974		4,273,191
3.50%, 8/1/42⁷		77,555,000		81,335,806
4%, 9/1/18-10/1/18		1,778,107		1,905,468
4%, 7/1/27⁷		355,000		377,631
4.50%, 7/1/27⁷		2,910,000		3,119,611
5%, 2/25/18-7/25/33		5,522,087		5,989,309
5.50%, 4/25/21-1/1/36		643,957		705,629
5.50%, 7/1/27-8/1/42⁷		3,938,000		4,291,196
6%, 10/25/16-1/25/19		368,790		399,830
6%, 8/1/42⁷		4,680,000		5,142,882
6.50%, 4/25/17-1/1/34		1,935,105		2,215,938
7%, 11/1/17-6/25/34		2,097,224		2,485,525
7.50%, 2/25/27-3/25/33		2,342,403		2,850,348
8.50%, 7/1/32		2,455		3,053
Federal National Mortgage Assn., 15 yr.: 3%, 7/1/27⁷		96,315,000		100,935,105
3.50%, 7/1/27⁷		1,485,000		1,569,459
Federal National Mortgage Assn., 30 yr.: 4%, 8/1/42⁷		15,910,000		16,906,862
4.50%, 8/1/42⁷		10,320,000		11,064,974

7	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: Trust 1999-54, Cl. LH, 6.50%, 11/25/29	$	394,047	$	451,344
Trust 2001-51, Cl. OD, 6.50%, 10/25/31		212,456		245,856
Trust 2001-69, Cl. PF, 1.245%, 12/25/31⁶		362,766		370,160
Trust 2001-80, Cl. ZB, 6%, 1/25/32		425,905		477,852
Trust 2002-12, Cl. PG, 6%, 3/25/17		229,588		248,622
Trust 2002-29, Cl. F, 1.245%, 4/25/32⁶		173,636		177,199
Trust 2002-60, Cl. FH, 1.245%, 8/25/32⁶		360,289		367,463
Trust 2002-64, Cl. FJ, 1.245%, 4/25/32⁶		53,468		54,565
Trust 2002-68, Cl. FH, 0.743%, 10/18/32⁶		122,004		123,079
Trust 2002-84, Cl. FB, 1.245%, 12/25/32⁶		754,400		769,446
Trust 2002-9, Cl. PC, 6%, 3/25/17		234,680		253,875
Trust 2002-9, Cl. PR, 6%, 3/25/17		287,355		308,301
Trust 2002-90, Cl. FH, 0.745%, 9/25/32⁶		422,088		425,611
Trust 2003-11, Cl. FA, 1.245%, 9/25/32⁶		754,417		769,464
Trust 2003-112, Cl. AN, 4%, 11/1/18		292,510		308,132
Trust 2003-116, Cl. FA, 0.645%, 11/25/33⁶		63,048		63,420
Trust 2003-119, Cl. FK, 0.745%, 5/25/18^6,7		1,736,923		1,746,826
Trust 2004-101, Cl. BG, 5%, 1/25/20		1,053,919		1,129,247
Trust 2005-109, Cl. AH, 5.50%, 12/25/25		2,160,000		2,471,331
Trust 2005-25, Cl. PS, 27.081%, 4/25/35⁶		452,313		777,623
Trust 2005-31, Cl. PB, 5.50%, 4/25/35		560,000		701,465
Trust 2005-71, Cl. DB, 4.50%, 8/25/25		475,936		518,215
Trust 2006-46, Cl. SW, 23.30%, 6/25/36⁶		655,578		943,052
Trust 2007-42, Cl. A, 6%, 2/1/33		711,503		740,292
Trust 2008-14, Cl. BA, 4.25%, 3/1/23		138,831		147,116
Trust 2009-114, Cl. AC, 2.50%, 12/1/23		255,973		264,166
Trust 2009-36, Cl. FA, 1.185%, 6/25/37⁶		330,298		335,424
Trust 2011-122, Cl. EA, 3%, 11/1/29		895,749		919,573
Trust 2011-122, Cl. EC, 1.50%, 1/1/20		683,306		693,115
Trust 2011-15, Cl. DA, 4%, 3/1/41		749,491		801,086
Trust 2011-3, Cl. KA, 5%, 4/1/40		536,851		584,806
Trust 2011-6, Cl. BA, 2.75%, 6/1/20		744,657		773,502


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Trust 2001-61, Cl. SH, 35.024%, 11/18/31⁸	$	198,923	$	37,494
Trust 2001-63, Cl. SD, 33.317%, 12/18/31⁸		50,338		9,156
Trust 2001-68, Cl. SC, 24.461%, 11/25/31⁸		32,996		6,301
Trust 2001-81, Cl. S, 26.376%, 1/25/32⁸		40,566		8,563
Trust 2002-28, Cl. SA, 39.269%, 4/25/32⁸		26,971		5,234
Trust 2002-38, Cl. SO, 52.326%, 4/25/32⁸		151,686		27,972
Trust 2002-48, Cl. S, 32.933%, 7/25/32⁸		41,767		8,325
Trust 2002-52, Cl. SL, 35.76%, 9/25/32⁸		27,101		5,416
Trust 2002-56, Cl. SN, 34.89%, 7/25/32⁸		57,393		11,459
Trust 2002-77, Cl. IS, 47.574%, 12/18/32⁸		258,429		56,479
Trust 2002-77, Cl. SH, 42.088%, 12/18/32⁸		60,197		12,498
Trust 2002-9, Cl. MS, 31.019%, 3/25/32⁸		54,512		10,714
Trust 2003-13, Cl. IO, 14.502%, 3/25/33⁸		482,218		93,768
Trust 2003-26, Cl. DI, 11.332%, 4/25/33⁸		356,115		79,987
Trust 2003-33, Cl. SP, 86.997%, 5/25/33⁸		353,855		55,666
Trust 2003-38, Cl. SA, 31.367%, 3/25/23⁸		474,102		48,895
Trust 2003-4, Cl. S, 32.305%, 2/25/33⁸		103,782		18,837
Trust 2004-56, Cl. SE, 16.515%, 10/25/33⁸		1,572,349		266,373
Trust 2005-14, Cl. SE, 45.905%, 3/25/35⁸		1,575,132		259,241
Trust 2005-40, Cl. SA, 58.134%, 5/25/35⁸		1,321,175		258,800
Trust 2005-40, Cl. SB, 94.648%, 5/25/35⁸		2,187,422		477,990
Trust 2005-5, Cl. SD, 11.403%, 1/25/35⁸		91,971		14,473
Trust 2005-63, Cl. SA, 56.253%, 10/25/31⁸		85,285		17,394
Trust 2005-71, Cl. SA, 63.77%, 8/25/25⁸		297,460		42,618
Trust 2006-51, Cl. SA, 15.12%, 6/25/36⁸		7,130,963		971,869
Trust 2006-60, Cl. DI, 43.186%, 4/25/35⁸		1,356,153		184,692
Trust 2006-90, Cl. SX, 99.999%, 9/25/36⁸		1,460,065		331,788

8	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored Continued
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Continued
Trust 2007-77, Cl. SB, 40.042%, 12/25/31⁸	$	446,604	$	15,477
Trust 2007-84, Cl. DS, 12.147%, 8/25/37⁸		151,609		26,713
Trust 2007-88, Cl. XI, 42.632%, 6/25/37⁸		2,283,741		384,501
Trust 2008-46, Cl. EI, 12.785%, 6/25/38⁸		592,857		105,609
Trust 2008-55, Cl. SA, 22.511%, 7/25/38⁸		458,085		73,692
Trust 2009-8, Cl. BS, 18.395%, 2/25/24⁸		464,168		46,086
Trust 2010-95, Cl. DI, 8.396%, 11/1/20⁸		1,619,519		121,557
Trust 2011-84, Cl. IG, 5.068%, 8/1/13⁸		4,979,918		87,461
Trust 214, Cl. 2, 40.424%, 3/1/23⁸		322,562		68,301
Trust 221, Cl. 2, 40.953%, 5/1/23⁸		38,544		8,263
Trust 254, Cl. 2, 32.653%, 1/1/24⁸		628,064		133,950
Trust 2682, Cl. TQ, 99.999%, 10/15/33⁸		522,862		98,783
Trust 2981, Cl. BS, 99.999%, 5/15/35⁸		938,719		169,699
Trust 301, Cl. 2, 2.323%, 4/1/29⁸		136,381		21,895
Trust 313, Cl. 2, 23.912%, 6/1/31⁸		1,365,582		224,459
Trust 319, Cl. 2, 2.10%, 2/1/32⁸		652,217		101,266
Trust 321, Cl. 2, 6.305%, 4/1/32⁸		177,382		27,360
Trust 324, Cl. 2, 0%, 7/1/32^8,9		184,072		28,610
Trust 328, Cl. 2, 0%, 12/1/32^8,9		431,877		82,192
Trust 331, Cl. 5, 0%, 2/1/33^8,9		693,464		146,183
Trust 332, Cl. 2, 0%, 3/1/33^8,9		3,725,352		688,664
Trust 334, Cl. 12, 0%, 2/1/33^8,9		601,866		115,790
Trust 339, Cl. 15, 9.003%, 7/1/33⁸		1,837,691		350,446
Trust 345, Cl. 9, 0%, 1/1/34^8,9		656,676		81,893
Trust 351, Cl. 10, 0%, 4/1/34^8,9		372,102		54,724
Trust 351, Cl. 8, 0%, 4/1/34^8,9		616,342		87,812
Trust 356, Cl. 10, 0%, 6/1/35^8,9		496,744		69,384
Trust 356, Cl. 12, 0%, 2/1/35^8,9		247,612		34,731
Trust 362, Cl. 13, 0%, 8/1/35^8,9		301,295		49,626

				397,683,861
GNMA/Guaranteed—0.2%
Government National Mortgage Assn.: 1.625%, 12/9/25⁶		4,967		5,151
7%, 3/29/28-7/29/28		206,121		246,402
7.50%, 3/1/27		11,967		13,023
8%, 11/29/25-5/29/26		48,471		50,450
Government National Mortgage Assn., Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates: Series 1999-32, Cl. ZB, 8%, 9/16/29		868,293		1,059,501
Series 2000-12, Cl. ZA, 8%, 2/16/30		1,918,483		2,309,550


	Principal Amount		Value

GNMA/Guaranteed Continued
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security: Series 1998-19, Cl. SB, 68.458%, 7/16/28⁸	$	104,096	$	23,019
Series 1998-6, Cl. SA,
83.021%, 3/16/28⁸		63,180		14,360
Series 2001-21, Cl. SB,
88.793%, 1/16/27⁸		464,723		86,120
Series 2007-17, Cl. AI,
22.033%, 4/16/37⁸		561,234		111,611
Series 2010-111, Cl. GI,
28.396%, 9/1/13⁸		11,089,418		200,058
Series 2011-52, Cl. HS,
9.436%, 4/16/41⁸		926,290		237,384

				4,356,629
Other Agency—0.2%
NCUA Guaranteed Notes
Trust 2010-C1, Gtd. Nts.:
Series 2010-C1, Cl.
A1, 1.60%, 10/29/20		481,667		488,121
Series 2010-C1, Cl. A2,
2.90%, 10/29/20		1,015,000		1,082,244
Series 2010-C1, Cl. APT,
2.65%, 10/29/20		1,139,493		1,191,910
NCUA Guaranteed Notes
Trust 2010-R1, Gtd. Nts.,
Series 2010-R1, Cl. 1A,
0.689%, 10/7/20⁶		907,717		909,560
NCUA Guaranteed Notes
Trust 2010-R3, Gtd. Nts.,
Series 2010-R3, Cl. 3A,
2.40%, 12/8/20		744,713		762,750

				4,434,585
Non-Agency—12.5%
Commercial—7.7%
Banc of America Commercial
Mortgage Trust 2006-1,
Commercial Mtg. Pass-Through
Certificates, Series 2006-1, Cl. AJ,
5.46%, 9/1/45		2,200,000		2,041,740
Banc of America Commercial
Mortgage Trust 2006-3,
Commercial Mtg. Pass-Through
Certificates, Series 2006-3, Cl. AM,
6.053%, 7/10/44⁶		4,242,000		4,139,870
Banc of America Commercial
Mortgage Trust 2006-5,
Commercial Mtg. Pass-Through
Certificates, Series 2006-5, Cl. AM,
5.448%, 9/1/47		6,055,000		5,900,694

9	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Commercial Continued
Banc of America Commercial
Mortgage Trust 2007-1,
Commercial Mtg. Pass-Through
Certificates, Series 2007-1, Cl. AMFX,
5.482%, 1/1/49	$	4,159,386	$	4,266,484
Banc of America Commercial
Mortgage Trust 2007-5,
Commercial Mtg. Pass-Through
Certificates, Series 2007-5, Cl. AM,
5.772%, 2/1/51		8,090,000		8,242,954
Banc of America Commercial
Mortgage, Inc., Commercial
Mtg. Pass-Through
Certificates: Series 2007-3, Cl. A4,
5.805%, 6/1/49⁶		480,000		544,744
Series 2008-1, Cl. AM,
6.438%, 2/10/51⁶		3,415,000		3,581,473
BCAP LLC Trust,
Mtg. Pass-Through
Certificates: Series 2012-RR2, Cl. 6A3,
2.762%, 9/1/35^3,6		953,871		943,418
Series 2012-RR6, Cl. 1A5,
2.243%, 11/1/36^5,6		560,000		552,300
Bear Stearns ARM Trust 2007-4,
Mtg. Pass-Through
Certificates, Series 2007-4, Cl. 22A1,
5.569%, 6/1/47⁶		999,839		743,848
Bear Stearns Commercial
Mortgage Securities
Trust 2006-PWR13,
Commercial Mtg. Pass-Through
Certificates, Series 2006-PWR13,
Cl. AJ, 5.611%, 9/1/41		6,630,000		5,659,620
Bear Stearns Commercial
Mortgage Securities
Trust 2007-PWR17,
Commercial Mtg. Pass-Through
Certificates: Series 2007-PWR17, Cl. AJ,
5.897%, 6/1/50⁶		7,400,000		5,798,344
Series 2007-PWR17, Cl. AM,
5.915%, 6/1/50⁶		2,330,000		2,468,496
CHL Mortgage Pass-Through
Trust 2005-17, Mtg. Pass-Through
Certificates, Series 2005-17, Cl. 1A8,
5.50%, 9/1/35		2,898,695		2,830,702
CHL Mortgage Pass-Through
Trust 2005-HYB8, Mtg. Pass-Through Certificates, Series 2005-HYB8, Cl. 4A1, 4.891%, 12/20/35⁶		156,150		110,971


	Principal Amount		Value

Commercial Continued
CHL Mortgage Pass-Through
Trust 2007-J3, Mtg. Pass-Through
Certificates, Series 2007-J3, Cl. A9,
6%, 7/1/37	$	8,130,073	$	5,951,689
Citigroup Commercial
Mortgage Trust 2008-C7, Commercial
Mtg. Pass-Through
Certificates, Series 2008-C7, Cl. AM,
6.276%, 12/1/49⁶		4,270,000		4,172,302
Citigroup, Inc./Deutsche Bank
2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. A4,
5.322%, 12/1/49		955,000		1,065,175
CSMC Mortgage-Backed Trust 2006-C1, Mtg. Pass-Through Certificates, Series 2006-C1, Cl. AJ,
5.593%, 2/1/39⁶		3,725,000		3,606,143
DBUBS Mortgage Trust, Commercial
Mtg. Pass-Through
Certificates, Series 2011-LC1, Cl. E,
5.728%, 11/1/46^3,6		2,515,000		2,203,842
Deutsche Alt-B Securities, Inc., Mtg. Pass-Through Certificates: Series 2006-AB2, Cl. A1,
5.885%, 6/25/36		125,413		82,207
Series 2006-AB4, Cl. A1A,
6.005%, 10/25/36		609,802		359,115
Deutsche Mortgage & Asset Receiving, Commercial Mtg. Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security, Series 2010-C1, Cl. XPA,
4.885%, 9/1/20^3,8		5,320,488		361,384
FDIC Trust, Commercial
Mtg. Pass-Through
Certificates, Series 2012-C1, Cl. A,
0.841%, 5/1/35⁵		1,556,650		1,556,457
First Horizon Alternative Mortgage Securities Trust 2007-FA2, Mtg. Pass-Through Certificates, Series 2007-FA2, Cl. 1A1,
5.50%, 4/25/37		569,788		357,387
GMAC Commercial Mortgage Securities, Inc., Commercial Mtg. Pass-Through Certificates, Series 1998-C1, Cl. F, 7.111%, 5/15/30⁶		1,567,000		1,571,718

10	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Commercial Continued
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2006-GG7, Commercial Mtg. Pass-Through Certificates, Series 2006-GG7, Cl. AJ, 6.071%, 7/10/38⁶	$	6,150,000	$	5,477,162
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG11, Commercial Mtg. Pass-Through Certificates, Series 2007-GG11, Cl. AM, 5.867%, 12/1/49		5,550,000		5,464,749
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. AM, 5.475%, 3/1/39		5,035,000		5,013,888
GS Mortgage Securities Corp. II, Commercial Mtg. Obligations, Series 2011-GC3, Cl. D, 5.728%, 3/1/44^3,6		3,130,000		2,719,208
GSR Mortgage Loan Trust 2005-AR4, Mtg. Pass-Through Certificates, Series 2005-AR4, Cl. 6A1, 5.25%, 7/1/35		68,573		67,220
IndyMac Index Mortgage Loan Trust 2005-AR23, Mtg. Pass-Through Certificates, Series 2005-AR23, Cl. 6A1, 5.009%, 11/1/35⁶		1,492,576		1,093,717
JPMorgan Chase Commercial Mortgage Securities Corp., Commercial Mtg. Pass-Through Certificates: Series 2006-CIBC15, Cl. AM, 5.855%, 6/1/43		775,000		771,641
Series 2007-CB15, Cl. AJ, 5.502%, 6/1/47		8,281,000		6,075,207
Series 2007-CB18, Cl. A4, 5.44%, 6/1/47		2,315,000		2,626,204
Series 2007-CB18, Cl. AM, 5.466%, 6/1/47		6,400,000		6,642,093
JPMorgan Chase Commercial Mortgage Securities Trust 2006-CIBC16, Commercial Mtg. Pass-Through Certificates, Series 2006-CIBC16, Cl. AJ, 5.623%, 5/1/45		2,175,000		1,637,236
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Commercial Mtg. Pass-Through Certificates, Series 2006-LDP7, 6.064%, 4/1/45⁶		120,000		129,864


	Principal Amount		Value

Commercial Continued
JPMorgan Chase Commercial Mortgage Securities Trust 2007-CB19, Commercial Mtg. Pass-Through Certificates, Series 2007-CB19, Cl. AM, 5.924%, 2/1/49⁶	$	5,850,000	$	5,910,682
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP11, Commercial Mtg. Pass-Through Certificates, Series 2007-LDP11, Cl. ASB, 6.009%, 6/1/49⁶		531,179		573,555
JPMorgan Mortgage Trust 2006-A7, Mtg. Pass-Through Certificates, Series 2006-A7, Cl. 2A2, 2.72%, 1/1/37⁶		302,355		213,972
LB-UBS Commercial Mortgage Trust 2006-C3, Commercial Mtg. Pass-Through Certificates, Series 2006-C3, Cl. AJ, 5.72%, 3/11/39		1,325,000		1,201,997
LB-UBS Commercial Mortgage Trust 2007-C6, Commercial Mtg. Pass-Through Certificates: Series 2007-C6, Cl. A4, 5.858%, 7/11/40		1,095,000		1,256,092
Series 2007-C6, Cl. AM, 6.114%, 7/11/40		5,855,000		5,913,459
LB-UBS Commercial Mortgage Trust 2008-C1, Commercial Mtg. Pass-Through Certificates, Series 2008-C1, Cl. AM, 6.315%, 4/11/41⁶		2,610,000		2,757,836
Lehman Structured Securities Corp., Mtg.-Backed Security, 6%, 5/1/29		63,408		12,869
Merrill Lynch Mortgage Trust 2006-C1, Commercial Mtg. Pass-Through Certificates, Series 2006-C1, Cl. AJ, 5.848%, 5/1/39⁶		3,845,000		3,439,108
ML-CFC Commercial Mortgage Trust 2006-3, Commercial Mtg. Pass-Through Certificates, Series 2006-3, Cl. AJ, 5.485%, 7/1/46		5,820,000		4,935,191
Morgan Stanley Capital I Trust 2006-IQ12, Commercial Mtg. Pass-Through Certificates, Series 2006-IQ12, Cl. AJ, 5.399%, 12/1/43		7,734,000		4,987,927

11	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Commercial Continued
Morgan Stanley Capital I Trust 2007-IQ15, Commercial Mtg. Pass-Through Certificates, Series 2007-IQ15, Cl. AM, 6.076%, 6/1/49⁶	$	5,875,000	$	5,864,190
Morgan Stanley Capital I Trust, Commercial Mtg. Pass-Through Certificates, Series 2006-HQ10, Cl. AM, 5.36%, 11/1/41		8,500,000		8,958,558
RALI Series 2005-QA4 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2005-QA4, Cl. A32, 3.477%, 4/25/35⁶		113,884		22,181
Residential Asset Securitization Trust 2006-A12, Mtg. Pass-Through Certificates, Series 2006-A12, Cl. 1A, 6.25%, 11/1/36		678,042		454,524
Sequoia Mortgage Trust, Mtg. Pass-Through Certificates, Series 2012-2, Cl. A2, 3.50%, 3/1/42		540,277		556,026
STARM Mortgage Loan Trust 2007-1, Mtg. Pass-Through Certificates, Series 2007-1, Cl. 2A1, 5.815%, 2/1/37⁶		8,706,597		6,301,991
Structured Adjustable Rate Mortgage Loan Trust, Mtg. Pass-Through Certificates, Series 2007-6, Cl. 3A1, 4.89%, 7/1/37⁶		6,815,029		4,503,981
Wachovia Bank Commercial Mortgage Trust 2006-C23, Commercial Mtg. Pass-Through Certificates, Series 2006-C23, Cl. AJ, 5.515%, 1/1/45		4,510,000		4,298,093
Wachovia Bank Commercial Mortgage Trust 2006-C25, Commercial Mtg. Pass-Through Certificates, Series 2006-C25, Cl. AJ, 5.922%, 5/1/43⁶		5,315,000		5,004,200
WaMu Mortgage Pass-Through Certificates 2006-AR15 Trust, Mtg. Pass-Through Certificates, Series 2006-AR15, Cl. 1A, 0.987%, 11/1/46⁶		1,117,177		753,761
WaMu Mortgage Pass-Through Certificates 2007-OA3 Trust, Mtg. Pass-Through Certificates, Series 2007-OA3, Cl. 5A, 2.413%, 4/1/47⁶		774,902		448,885


	Principal Amount		Value

Commercial Continued
Wells Fargo Mortgage-Backed Securities 2004-W Trust, Mtg. Pass-Through Certificates, Series 2004-W, Cl. B2, 2.607%, 11/1/34⁶	$	494,714	$	16,619
Wells Fargo Mortgage-Backed Securities 2005-AR1 Trust, Mtg. Pass-Through Certificates, Series 2005-AR1, Cl. 1A1, 2.61%, 2/1/35⁶		3,592,166		3,354,801
Wells Fargo Mortgage-Backed Securities 2007-AR3 Trust, Mtg. Pass-Through Certificates, Series 2007-AR3, Cl. A4, 5.749%, 4/1/37⁶		2,200,378		1,918,423
WFRBS Commercial Mortgage Trust 2011-C3, Interest-Only Commercial Mtg. Pass-Through Certificates, Series 2011-C3, Cl. XA, 9.116%, 3/1/44⁸		6,059,121		519,115
WFRBS Commercial Mortgage
Trust 2012-C7, Commercial Mtg. Pass-Through Certificates, Series 2012-C7, Cl. C, 4.851%, 6/1/45⁶		2,295,000		2,095,110

				183,104,412
Multifamily—0.8%
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2006-2, Cl. AJ, 5.954%, 5/1/45⁶		4,295,000		3,854,597
Citigroup Mortgage Loan Trust, Inc. 2006-AR3, Mtg. Pass-Through Certificates, Series 2006-AR3, Cl. 1A2A, 5.625%, 6/1/36⁶		5,554,169		4,809,252
JPMorgan Mortgage Trust 2007-A3, Mtg. Pass-Through Certificates, Series 2007-A3, Cl. 3A2M, 5.133%, 5/1/37⁶		4,376,811		3,742,887
Wells Fargo Mortgage-Backed Securities 2005-AR15 Trust, Mtg. Pass-Through Certificates, Series 2005-AR15, Cl. 1A2, 5.077%, 9/1/35⁶		401,678		353,622
Wells Fargo Mortgage-Backed Securities 2006-AR2 Trust, Mtg. Pass-Through Certificates, Series 2006-AR2, Cl. 2A3, 2.622%, 3/1/36⁶		3,534,545		3,069,491

12	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Multifamily Continued
Wells Fargo Mortgage-Backed
Securities 2006-AR6 Trust, Mtg. Pass-Through Certificates, Series 2006-AR6, Cl. 3A1, 2.668%, 3/25/36⁶	$	3,145,026	$	2,672,879

				18,502,728
Other—0.1%
Greenwich Capital Commercial Funding Corp./Commercial Mortgage Trust 2007-GG9, Commercial Mtg. Pass-Through Certificates, Series 2007-GG9, Cl. A4, 5.444%, 3/1/39		2,315,000		2,577,454
Residential—3.9%
Argent Securities Trust 2004-W8, Asset-Backed Pass-Through Certificates, Series 2004-W8, Cl. A2, 1.205%, 5/25/34⁶		920,464		791,525
Argent Securities Trust 2006-M3, Asset-Backed Pass-Through Certificates, Series 2006-M3, Cl. A2B, 0.345%, 9/25/36⁶		342,371		109,534
Banc of America Commercial Mortgage, Inc., Commercial Mtg. Pass-Through Certificates, Series 2007-4, Cl. AM, 5.984%, 2/1/51⁶		3,960,000		3,982,974
Banc of America Funding 2007-C Trust, Mtg. Pass-Through Certificates, Series 2007-C, Cl. 1A4, 5.532%, 5/1/36⁶		2,025,000		1,812,600
Bear Stearns ARM Trust 2004-2, Mtg. Pass-Through Certificates, Series 2004-2, Cl. 12A2, 2.972%, 5/1/34⁶		2,761,123		2,372,235
CHL Mortgage Pass-Through Trust 2005-29, Mtg. Pass-Through Certificates, Series 2005-29, Cl. A1, 5.75%, 12/1/35		5,515,999		4,847,675
CHL Mortgage Pass-Through Trust 2005-J4, Mtg. Pass-Through Certificates, Series 2005-J4, Cl. A7, 5.50%, 11/1/35		1,845,297		1,838,975
CHL Mortgage Pass-Through Trust 2006-6, Mtg. Pass-Through Certificates, Series 2006-6, Cl. A3, 6%, 4/1/36		488,677		442,832
CHL Mortgage Pass-Through Trust 2007-HY3, Mtg. Pass-Through Certificates, Series 2007-HY3, Cl. 1A1, 3.253%, 6/1/47⁶		2,054,132		1,507,826


	Principal Amount		Value

Residential Continued
Citigroup Mortgage Loan Trust, Inc. 2005-2, Mtg. Pass-Through Certificates, Series 2005-2, Cl. 1A3, 2.653%, 5/1/35⁶	$	2,314,296	$	2,103,240
Citigroup Mortgage Loan Trust, Inc. 2005-3, Mtg. Pass-Through Certificates, Series 2005-3, Cl. 2A4, 4.353%, 8/1/35⁶		4,598,692		3,135,602
Citigroup, Inc./Deutsche Bank 2007-CD4 Commercial Mortgage Trust, Commercial Mtg. Pass-Through Certificates, Series 2007-CD4, Cl. AMFX, 5.366%, 12/1/49		6,060,000		5,940,430
Countrywide Alternative Loan Trust 2006-43CB, Mtg. Pass-Through Certificates, Series 2006-43CB, Cl.1A10, 6%, 2/1/37		9,299,221		6,335,043
Countrywide Alternative Loan Trust 2007-19, Mtg. Pass-Through Certificates, Series 2007-19, Cl. 1A4, 6%, 8/1/37		2,629,501		1,827,780
Countrywide Home Loans, Asset-Backed Certificates, Series 2005-16, Cl. 2AF2, 5.331%, 5/1/36⁶		804,653		625,585
CSMC Mortgage-Backed Trust 2007-3, Mtg. Pass-Through Certificates, Series 2007-3, Cl. 2A10, 6%, 4/1/37		2,528,427		2,121,779
CWABS Asset-Backed Certificates Trust 2006-25, Asset-Backed Certificates, Series 2006-25, Cl. 2A2, 0.365%, 6/25/47⁶		3,360,215		3,311,007
CWHEQ Revolving Home Equity Loan Trust, Asset-Backed Certificates: Series 2005-G, Cl. 2A, 0.472%, 12/15/35⁶		158,619		87,065
Series 2006-H, Cl. 2A1A, 0.392%, 11/15/36⁶		64,534		17,156
GSR Mortgage Loan Trust 2006-5F, Mtg. Pass-Through Certificates, Series 2006-5F, Cl. 2A1, 6%, 6/1/36		777,884		708,457
Home Equity Mortgage Trust 2005-1, Mtg. Pass-Through Certificates, Series 2005-1, Cl. M6, 5.863%, 6/1/35		1,046,000		592,423
JPMorgan Alternative Loan Trust 2006-S4, Mtg. Pass-Through Certificates, Series 2006-S4, Cl. A6, 5.71%, 12/1/36		291,164		252,972

13	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Residential Continued
LB-UBS Commercial Mortgage Trust 2007-C7, Commercial Mtg. Pass-Through Certificates, Series 2007-C7, Cl. AM, 6.367%, 9/11/45⁶	$	10,430,000	$	10,582,158
Mastr Asset-Backed Securities Trust 2006-WMC3, Mtg. Pass-Through Certificates, Series 2006-WMC3, Cl. A3, 0.345%, 8/25/36⁶		1,161,321		371,810
Merrill Lynch Mortgage Investors Trust 2006-3, Mtg. Pass-Through Certificates, Series MLCC 2006-3, Cl. 2A1, 2.563%, 10/25/36⁶		1,595,304		1,467,657
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/29^4,5		66,744		5,840
Popular ABS Mortgage Pass-Through Trust 2005-6, Mtg. Pass-Through Certificates, Series 2005-6, Cl. A3, 5.284%, 1/1/36⁶		182,203		123,546
RALI Series 2006-QS13 Trust, Mtg. Asset-Backed Pass-Through Certificates: Series 2006-QS13, Cl. 1A5, 6%, 9/25/36		1,778,782		1,172,129
Series 2006-QS13, Cl. 1A8, 6%, 9/25/36		35,555		23,429
RALI Series 2007-QS6 Trust, Mtg. Asset-Backed Pass-Through Certificates, Series 2007-QS6, Cl. A28, 5.75%, 4/25/37		869,245		536,985
Residential Asset Securitization Trust 2005-A14, Mtg. Pass-Through Certificates, Series 2005-A14, Cl. A1, 5.50%, 12/1/35		3,399,140		2,819,443
Residential Asset Securitization Trust 2005-A15, Mtg. Pass-Through Certificates, Series 2005-A15, Cl. 1A4, 5.75%, 2/1/36		3,854,449		3,028,483
Residential Asset Securitization Trust 2005-A6CB, Mtg. Pass-Through Certificates, Series 2005-A6CB, Cl. A7, 6%, 6/1/35		4,317,609		3,584,442
Terwin Mortgage Trust, Home Equity Asset-Backed Securities, Series 2006-4SL, Cl. A1, 2.848%, 5/1/37^3,6,10		165,470		78,096
WaMu Mortgage Pass-Through Certificates 2005-AR12 Trust, Mtg. Pass-Through Certificates, Series 2007-AR12, Cl. 1A8, 2.451%, 10/1/35⁶		2,281,223		1,941,033


	Principal Amount		Value

Residential Continued
WaMu Mortgage Pass-Through Certificates 2006-AR10 Trust, Mtg. Pass-Through Certificates, Series 2006-AR10, Cl. 1A2, 2.506%, 9/1/36⁶	$	875,125	$	629,960
WaMu Mortgage Pass-Through Certificates 2007-HY1 Trust, Mtg. Pass-Through Certificates: Series 2007-HY1, Cl. 4A1, 2.713%, 2/1/37⁶		13,237,922		9,720,229
Series 2007-HY1, Cl. 5A1, 4.971%, 2/1/37⁶		8,025,111		5,755,706
WaMu Mortgage Pass-Through Certificates 2007-HY5 Trust, Mtg. Pass-Through Certificates, Series 2007-HY5, Cl. 3A1, 5.312%, 5/1/37⁶		974,676		867,001
Wells Fargo Mortgage-Backed Securities 2005-9 Trust, Mtg. Pass-Through Certificates, Series 2005-9, Cl. 2A6, 5.25%, 10/25/35		384,013		388,556
Wells Fargo Mortgage-Backed
Securities 2006-AR14 Trust, Mtg. Pass-Through Certificates, Series 2006-AR14, Cl. 1A2, 5.662%, 10/1/36⁶		3,250,410		2,940,147

				90,801,365

Total Mortgage-Backed Obligations (Cost $705,486,426)				701,461,034
U.S. Government Obligations—4.0%
Federal Home Loan Mortgage Corp. Nts.: 1.25%, 5/12/17		955,000		969,218
1.75%, 5/30/19		9,085,000		9,313,488
2.375%, 1/13/22		1,113,000		1,145,630
Federal National Mortgage Assn. Nts.: 1.125%, 4/27/17		1,120,000		1,132,367
4.375%, 10/15/15		4,000,000		4,493,180
5.375%, 6/12/17¹¹		7,297,000		8,854,705
U.S. Treasury Bonds, STRIPS, 4.833%, 2/15/16^12,13		2,116,000		2,072,180
U.S. Treasury Nts.,
2%, 2/15/22¹³		65,000,000		67,249,650

Total U.S. Government Obligations (Cost $91,619,935)				95,230,418
Foreign Government Obligations—28.8%
Argentina—0.1%
Argentina (Republic of) Bonds: 2.50%, 12/31/38⁶		4,550,000		1,478,750
6.976%, 10/3/15		910,000		691,275
Argentina (Republic of) Sr. Unsec.
Bonds, Series X, 6.976%, 4/17/17		830,000		565,110

				2,735,135

14	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount			Value

Australia—0.4%
New South Wales Treasury Corp. Bonds: Series 14, 5.50%, 8/1/14		875,000	AUD	$	942,815
Series 15, 6%, 4/1/25		640,000	AUD		702,584
Series 17, 5.50%, 3/1/17		625,000	AUD		699,864
Queensland Treasury Corp. Nts.: Series 15, 6%, 10/14/15		1,275,000	AUD		1,420,129
Series 17, 6%, 9/14/17		1,020,000	AUD		1,164,832
Series 21, 6%, 6/14/21		1,255,000	AUD		1,485,989
Series 24, 5.75%, 7/22/24		1,065,000	AUD		1,194,457
Victoria Treasury Corp. Nts., Series 1116, 5.75%, 11/15/16		1,555,000	AUD		1,741,564
Western Australia Treasury Corp. Nts., Series 15, 7%, 4/15/15		630,000	AUD		709,872

					10,062,106
Austria—0.1%
Austria (Republic of) Bonds, 6.25%, 7/15/27		820,000	EUR		1,454,911
Belgium—0.1%
Belgium (Kingdom of) Bonds, Series 58, 3.75%, 9/28/20		2,550,000	EUR		3,423,480
Brazil—2.4%
Brazil (Federative Republic of) Nota Do Tesouro Nacional Nts.: 9.762%, 1/1/17		28,238,000	BRR		14,404,780
9.762%, 1/1/21		33,538,000	BRR		16,753,877
12.681%, 5/15/45¹⁴		6,470,000	BRR		8,400,679
Series NTNB, 12.205%, 8/15/50¹⁴		3,265,000	BRR		4,296,810
Series NTNB, 12.681%, 5/15/15¹⁴		10,930,000	BRR		12,533,688

					56,389,834
Canada—0.2%
Canada (Government of) Nts., 3.75%, 6/1/19		1,850,000	CAD		2,089,822
Canada (Government of) Treasury Bills, Series 364, 0.896%, 7/5/12¹²		1,835,000	CAD		1,802,125

					3,891,947
Colombia—0.5%
Bogota Distrio Capital Sr. Bonds, 9.75%, 7/26/28³		2,407,000,000	COP		1,882,697
Colombia (Republic of) Sr. Unsec. Bonds, 6.125%, 1/18/41		7,170,000			9,356,850

					11,239,547
Croatia—0.1%
Croatia (Republic of) Unsec. Nts., 6.25%, 4/27/17³		2,570,000			2,566,762
Denmark—0.1%
Denmark (Kingdom of) Bonds, 4%, 11/15/19		5,560,000	DKK		1,144,480


	Principal Amount			Value

Finland—0.0%
Finland (Republic of) Sr. Unsec. Unsub. Nts., 3.875%, 9/15/17		585,000	EUR	$	841,957
France—0.5%
Caisse D’Amortissement de la Dette Sociale Bonds, 1.625%, 7/6/15^5,7		640,000			639,834
France (Republic of) Bonds:
3.25%, 10/25/21		1,660,000	EUR		2,217,722
3.75%, 4/25/17		1,975,000	EUR		2,762,166
3.75% 10/25/19		2,460,000	EUR		3,446,229
4%, 4/25/60		520,000	EUR		711,546
4.50%, 4/25/41		660,000	EUR		976,051

					10,753,548
Germany—0.1%
Germany (Federal Republic of) Bonds: 2.25%, 9/4/21		625,000	EUR		843,253
2.50%, 7/4/44		735,000	EUR		962,788

					1,806,041
Ghana—0.1%
Ghana (Republic of) Bonds, 8.50%, 10/4/17³		1,255,000			1,396,188
Hungary—2.1%
Hungary (Republic of) Bonds: 4.75%, 2/3/15		980,000			945,700
6.75%, 11/24/17		747,000,000	HUF		3,186,769
Sereis 23A, 6%, 11/24/23		74,000,000	HUF		285,065
Series 13/D, 6.75%, 2/12/13		3,277,000,000	HUF		14,460,629
Series 14/D, 6.75%, 8/22/14		451,000,000	HUF		1,975,376
Series 15C, 7.75%, 8/24/15		592,000,000	HUF		2,646,969
Series 15/A, 8%, 2/12/15		238,000,000	HUF		1,071,495
Series 16/C, 5.50%, 2/12/16		315,000,000	HUF		1,315,972
Series 17/B, 6.75%, 2/24/17		678,000,000	HUF		2,904,683
Series 19/A, 6.50%, 6/24/19		369,000,000	HUF		1,538,532
Series 20/A, 7.50%, 11/12/20		455,000,000	HUF		1,991,300
Series 22A, 7%, 6/24/22		193,000,000	HUF		813,469
Hungary (Republic of) Sr. Unsec.
Bonds, 7.625%, 3/29/41		805,000			790,913
Hungary (Republic of) Sr. Unsec. Nts., 5.75%, 6/11/18		880,000	EUR		1,037,135
Hungary (Republic of) Sr. Unsec. Unsub. Nts., 6.375%, 3/29/21		2,210,000			2,163,590
Hungary (Republic of) Treasury
Bills: 7.195%, 8/22/12¹²		183,000,000	HUF		803,168
7.275%, 9/5/12¹²		330,000,000	HUF		1,443,294
7.31%, 12/27/12¹²		2,152,000,000	HUF		9,247,181

					48,621,240
Indonesia—0.5%
Indonesia (Republic of) Nts., 5.25%, 1/17/42³		3,245,000			3,411,306

15	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

Indonesia Continued
Indonesia (Republic of) Sr. Unsec.
Bonds, 4.875%, 5/5/21³	$	1,455,000		$	1,591,406
Indonesia (Republic of) Sr. Unsec.
Nts., 7.75%, 1/17/38³		1,605,000			2,218,913
Indonesia (Republic of) Unsec.
Nts.: 3.75%, 4/25/22³		2,375,000			2,380,938
8.50%, 10/12/35³		840,000			1,236,900

					10,839,463
Israel—0.2%
Israel (State of) Sr. Unsec. Bonds, 4%, 6/30/22		3,520,000			3,652,884
Italy—0.5%
Buoni Poliennali Del Tesoro Bonds, 4.50%, 3/1/19		2,765,000	EUR		3,339,824
Italy (Republic of) Bonds:
3%, 4/1/14		625,000	EUR		784,097
4%, 9/1/20		1,565,000	EUR		1,800,358
5%, 3/1/22		500,000	EUR		605,264
5%, 9/1/40		1,035,000	EUR		1,103,022
Series EU, 1.853%, 10/15/17⁶		630,000	EUR		660,596
Italy (Republic of) Nts., 1.50%, 3/1/14⁶		250,000	EUR		304,353
Italy (Republic of) Sr. Unsec. Nts.,
4.50%, 6/8/15		124,000,000	JPY		1,557,965
Italy (Republic of) Treasury Bonds:
4.75%, 9/15/16		510,000	EUR		645,573
5.75%, 2/1/33		440,000	EUR		526,044

					11,327,096
Ivory Coast—0.0%
Ivory Coast Bonds, 3.75%, 12/31/32		850,000			637,500
Japan—2.0%
Japan Bonds: 2 yr., 0.10%, 5/15/14		986,000,000	JPY		12,334,529
5 yr., 0.30%, 3/20/17		557,000,000	JPY		7,001,010
10 yr., 1.10%, 3/20/21		234,000,000	JPY		3,031,956
20 yr., Series 112, 2.10%, 6/20/29		713,000,000	JPY		9,701,599
30 yr., 2%, 3/20/42		433,000,000	JPY		5,534,405
Japan Sr. Unsec. Bonds, Series 134, 1.80%, 3/20/32		344,000,000	JPY		4,405,588
Japan Sr. Unsec. Unsub. Bonds,
10 yr., Series 307, 1.30%, 3/20/20		436,000,000	JPY		5,766,649

					47,775,736
Latvia—0.1%
Latvia (Republic of) Nts., 5.25%, 2/22/17³		2,690,000			2,784,150
Lithuanua—0.1%
Lithuania (Republic of) Sr. Unsec. Bonds, 6.625%, 2/1/22³		2,495,000			2,866,131


	Principal Amount			Value

Malaysia—0.2%
Malaysia (Government of) Sr. Unsec. Bonds, Series 1/06, 4.262%, 9/15/16		2,205,000	MYR	$	725,009
Wakala Global Sukuk Bhd Bonds,
4.646%, 7/6/21³		2,540,000			2,797,767

					3,522,776
Mexico—4.9%
United Mexican States Bonds: 4.592%, 11/29/12¹²		109,230,000	MXN		8,035,709
21.301%, 12/18/14¹⁴		18,000,000	MXN		7,030,645
Series M, 6.50%, 6/10/21⁶		129,160,000	MXN		10,520,483
Series M20, 7.50%, 6/3/27⁶		167,740,000	MXN		14,307,173
Series M10, 7.75%, 12/14/17		76,260,000	MXN		6,493,136
Series M, 8%, 6/11/20		81,000,000	MXN		7,201,183
Series M20, 8.50%, 5/31/29⁶		55,400,000	MXN		5,080,585
Series MI10, 9%, 12/20/12⁶		357,200,000	MXN		27,361,305
United Mexican States Treasury Bills:
4.569%, 12/13/12¹²		162,930,000	MXN		11,965,242
4.59%, 10/18/12¹²		257,700,000	MXN		19,057,865

					117,053,326
Nigeria—0.1%
Nigeria (Federal Republic of) Treasury Bills: 15.149%, 3/7/13¹²		38,000,000	NGN		208,690
15.205%, 3/28/13¹²		145,000,000	NGN		787,793
Series 364, 15.455%, 2/21/13¹²		180,000,000	NGN		994,931
Series 364, 15.572%, 4/25/13¹²		109,000,000	NGN		585,653

					2,577,067
Panama—0.2%
Panama (Republic of) Bonds: 6.70%, 1/26/36		1,446,000			1,959,330
8.875%, 9/30/27		1,120,000			1,744,400
9.375%, 4/1/29		1,130,000			1,853,200

					5,556,930
Peru—1.0%
Peru (Republic of) Bonds, 7.35%, 7/21/25		3,785,000			5,336,850
Peru (Republic of) Sr. Unsec. Bonds: 6.95%, 8/12/31³		14,795,000	PEN		6,446,968
8.20%, 8/12/26³		9,280,000	PEN		4,457,220
Peru (Republic of) Sr. Unsec. Nts., 7.84%, 8/12/20³		12,095,000	PEN		5,391,588
Peru (Republic of) Sr. Unsec. Unsub. Bonds, 5.625%, 11/18/50		2,550,000			3,104,625

					24,737,251
Philippines—0.1%
Philippines (Republic of the) Sr. Unsec. Bonds, 5%, 1/13/37		1,290,000			1,409,325

16	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount			Value

Philippines Continued
Philippines (Republic of the) Sr. Unsec. Unsub. Bonds, 6.375%, 10/23/34	$	925,000		$	1,186,313

					2,595,638
Poland—1.0%
Poland (Republic of) Bonds: 5.25%, 10/25/20		15,280,000	PLZ		4,648,103
Series WS0922, 5.75%, 9/23/22		12,870,000	PLZ		4,032,148
Series 0415, 5.50%, 4/25/15		2,165,000	PLZ		665,225
Series 0416, 5%, 4/25/16		16,905,000	PLZ		5,142,562
Series 1017, 5.25%, 10/25/17		15,440,000	PLZ		4,738,150
Poland (Republic of) Sr. Unsec. Nts.: 5%, 3/23/22		870,000			953,955
5.125%, 4/21/21		3,285,000			3,639,780

					23,819,923
Qatar—0.2%
Qatar (State of) Sr. Nts., 5.25%, 1/20/20³		1,945,000			2,252,310
Qatar (State of) Sr. Unsec. Nts.: 5.75%, 1/20/42³		1,490,000			1,784,275
6.40%, 1/20/40³		860,000			1,098,650

					5,135,235
Romania—0.2%
Romania Sr. Unsec. Bonds, 6.75%, 2/7/22³		5,535,000			5,790,994
Russia—1.3%
Russian Federation Bonds: 7.50%, 3/15/18⁶		88,200,000	RUR		2,664,825
7.50%, 2/27/19⁶		96,700,000	RUR		2,897,753
7.60%, 4/14/21⁶		131,000,000	RUR		3,907,399
Series 6206, 7.40%, 6/14/17		380,000,000	RUR		11,551,425
Russian Federation Unsec. Bonds: 4.50%, 4/4/22³		1,720,000			1,806,189
5.625%, 4/4/42³		3,430,000			3,677,989
Series 9, 7.90%, 3/18/21⁶		43,800,000	RUR		1,309,824
Vnesheconombank Via VEB Finance plc Sr. Unsec. Nts., 6.025%, 7/15/20^5,7		2,335,000			2,353,972

					30,169,376
Singapore—0.0%
Singapore (Republic of) Sr. Unsec. Bonds, 2.375%, 4/1/17		670,000	SGD		577,411
Slovakia—0.1%
Slovakia (Republic of) Bonds, 4.375%, 5/21/22³		2,575,000			2,549,250
South Africa—2.5%
South Africa (Republic of) Bonds: Series R209, 6.25%, 3/31/36		68,040,000	ZAR		6,377,072
Series R208, 6.75%, 3/31/21		89,410,000	ZAR		10,572,187


	Principal Amount			Value

South Africa Continued
South Africa (Republic of) Bonds: Continued
Series R213, 7%, 2/28/31		87,295,000	ZAR	$	9,335,016
Series R207, 7.25%, 1/15/20		123,670,000	ZAR		15,223,847
Series R186, 10.50%, 12/21/26		105,040,000	ZAR		15,618,805
South Africa (Republic of) Sr. Unsec. Nts., 4.665%, 1/17/24		2,300,000			2,501,250

					59,628,177
Spain—0.1%
Spain (Kingdom of) Sr. Unsec. Bonds, 4.30%, 10/31/19		765,000	EUR		868,956
Spain (Kingdom of) Sr. Unsub. Bonds, 4.70%, 7/30/41		505,000	EUR		467,678

					1,336,634
Sri Lanka—0.1%
Sri Lanka (Democratic Socialist Republic of) Sr. Unsec. Nts.: 6.25%, 10/4/20³		1,230,000			1,266,900
6.25% 7/27/21³		1,525,000			1,541,543

					2,808,443
The Netherlands—0.2%
Netherlands (Kingdom of the) Nts., 4.50%, 7/15/17		3,480,000	EUR		5,099,622
Turkey—4.9%
Turkey (Republic of) Bonds: 6.875%, 3/17/36		2,545,000			2,997,374
7%, 3/11/19		1,200,000			1,399,500
8.984%, 11/7/12¹²		96,800,000	TRY		51,858,787
9%, 3/5/14		15,375,000	TRY		8,616,291
9%, 3/8/17		35,160,000	TRY		19,840,077
9.50%, 1/12/22⁶		12,350,000	TRY		7,248,839
9.907%, 7/17/13¹²		24,355,000	TRY		12,325,098
10.50%, 1/15/20⁶		1,120,000	TRY		682,156
15.577%, 8/14/13¹⁴		2,310,000	TRY		1,877,440
Turkey (Republic of) Nts., 7.50%, 7/14/17		1,520,000			1,776,500
Turkey (Republic of) Unsec. Bonds, 6.25%, 9/26/22		4,175,000			4,738,625
Turkey (Republic of) Unsec. Nts.: 5.125%, 3/25/22		1,150,000			1,200,313
6%, 1/14/41		2,260,000			2,387,125

					116,948,125
Ukraine—0.1%
Ukraine (Republic of) Bonds, 7.75%, 9/23/20³		820,000			747,020
Ukraine (Republic of) Sr. Unsec. Nts.: 6.75%, 11/14/17³		1,800,000			1,608,120
7.95%, 2/23/21³		1,195,000			1,095,815

					3,450,955

17	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

United Kingdom—0.4%
United Kingdom Treasury Bonds: 3.75%, 9/7/21		1,235,000	GBP	$	2,277,637
4%, 9/7/16		1,890,000	GBP		3,371,464
4.75%, 12/7/38		2,340,000	GBP		4,884,451

					10,533,552
Uruguay—0.3%
Uruguay (Oriental Republic of) Bonds, 7.625%, 3/21/36		2,665,000			3,864,250
Uruguay (Oriental Republic of) Unsec. Bonds, 8%, 11/18/22		2,316,250			3,271,703

					7,135,953
Venezuela—0.7%
Venezuela (Republic of) Bonds: 9%, 5/7/23		4,090,000			3,169,750
11.95%, 8/5/31		1,260,000			1,127,700
Venezuela (Republic of) Nts., 8.25%, 10/13/24		2,125,000			1,545,938
Venezuela (Republic of) Sr. Unsec. Unsub. Nts.: 7.75%, 10/13/19		1,550,000			1,197,375
12.75%, 8/23/22		1,105,000			1,066,325
Venezuela (Republic of) Unsec. Bonds: 7%, 3/31/38		1,945,000			1,283,700
7.65%, 4/21/25		3,585,000			2,491,575
Venezuela (Republic of) Unsec. Nts., 13.625%, 8/15/18³		5,465,000			5,328,375

					17,210,738

Total Foreign Government Obligations (Cost $678,230,769)					684,447,512
Loan Participations—0.9%
Atlantic Broadband Finance LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 9.75%, 9/20/19⁶		685,000			679,577
Brock Holdings III, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 10%, 2/15/18⁶		620,000			613,800
Cengage Learning Holdings II LP, Sr. Sec. Credit Facilities 1st Lien Exit Term Loan: 5.74%, 7/5/17⁶		1,050,797			908,446
5.74%, 7/5/17^6,7		515,295			445,489
Clear Channel Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 3.889%, 1/29/16⁶		3,612,257			2,882,468
Crestwood Holdings LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 9.75%, 3/8/18⁶		1,005,000			1,012,118


	Principal Amount			Value

Loan Participations Continued
Entegra Holdings LLC, Sr. Sec. Credit Facilities 3rd Lien Term Loan: Tranche B, 3.709%, 10/19/15^6,15	$	7,043,685		$	3,821,200
Tranche B, 3.709%, 10/19/15^6,7,15		554,888			301,027
iStar Financial, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche A2, 7%, 3/19/17⁶		2,010,000			2,012,010
Lone Star Intermediate Super Holdings LLC, Sr. Sec. Credit Facilities Term Loan, 11%, 8/7/19⁶		1,215,000			1,249,628
Nuveen Investments, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 8.25%, 3/1/19⁶		2,275,000			2,283,531
OneLink Communications/San Juan Cable LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan, Tranche B, 10%, 6/9/18⁶		1,055,000			1,057,638
Revel Entertainment LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan: 7.50%, 2/17/17^6,7		305,000			262,300
9%, 2/17/17^6,7		1,715,000			1,474,900
Springleaf Financial Services, Sr. Sec. Credit Facilities 1st Lien Term Loan, 5.50%, 5/10/17⁶		1,085,000			1,024,550
Texas Competitive Electric Holdings Co. LLC, Non-Extended Sr. Sec. Credit Facilities 1st Lien Term Loan: 3.739%, 10/10/14⁶		635,000			399,978
3.741%, 10/10/14⁶		1,595,000			1,004,668

Total Loan Participations (Cost $22,428,141)					21,433,328
Corporate Bonds and Notes—26.2%
Consumer Discretionary—3.8%
Auto Components—0.4%
Goodyear Tire & Rubber Co. (The), 8.25% Sr. Unsec. Unsub. Nts., 8/15/20		2,190,000			2,329,613
Tower Automotive Holdings USA LLC/TA Holdings Finance, Inc., 10.625% Sr. Sec. Nts., 9/1/17³		4,652,000			4,954,380
UCI International, Inc., 8.625% Sr. Unsec. Nts., 2/15/19		605,000			611,806
Visteon Corp., 6.75% Sr. Unsec. Nts., 4/15/19		2,470,000			2,414,425

					10,310,224
Automobiles—0.0%
Jaguar Land Rover plc: 7.75% Sr. Unsec. Bonds, 5/15/18³		390,000			403,650
8.25% Sr. Nts., 3/15/20³		245,000	GBP		391,955

					795,605

18	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Diversified Consumer Services—0.1%
Monitronics International, Inc., 9.125% Sr. Nts., 4/1/20³	$	1,005,000	$	969,825
ServiceMaster Co., 8% Sr. Unsec.
Unsub. Nts., 2/15/20		605,000		661,719

				1,631,544
Hotels, Restaurants & Leisure—1.1%
Boyd Gaming Corp., 9.125% Sr. Unsec. Nts., 12/1/18		1,875,000		1,940,625
Burger King Corp., 9.875% Sr. Unsec. Unsub. Nts., 10/15/18		860,000		983,625
Chester Downs & Marina LLC, 9.25% Sr. Sec. Nts., 1/15/20³		970,000		1,013,650
CKE Restaurants, Inc., 11.375% Sec. Nts., 7/15/18		865,000		992,588
Equinox Holdings, Inc., 9.50% Sr. Sec. Nts., 2/1/16³		1,780,000		1,895,700
Harrah’s Operating Co., Inc., 10% Sr. Sec. Nts., 12/15/18		9,522,000		6,558,278
HOA Restaurants Group LLC/HOA Finance Corp., 11.25% Sr. Sec. Nts., 4/1/17³		2,280,000		2,123,250
Isle of Capri Casinos, Inc., 7.75% Sr. Unsec. Unsub. Nts., 3/15/19		2,030,000		2,090,900
Landry’s, Inc., 9.375% Sr. Unsec. Nts., 5/1/20³		2,005,000		2,047,606
MGM Mirage, Inc., 6.625% Sr. Unsec. Nts., 7/15/15		3,890,000		4,026,150
Penn National Gaming, Inc., 8.75% Sr. Unsec. Sub. Nts., 8/15/19		1,550,000		1,724,375
Premier Cruise Ltd., 11% Sr. Nts., 3/15/08^4,5		250,000		—

				25,396,747
Household Durables—0.3%
Beazer Homes USA, Inc.: 6.875% Sr. Unsec. Nts., 7/15/15		995,000		960,175
9.125% Sr. Unsec. Nts., 5/15/19		2,825,000		2,478,938
Jarden Corp., 6.125% Sr. Unsec. Nts., 11/15/22		225,000		238,500
Libbey Glass, Inc., 6.875% Sr. Sec. Nts., 5/15/20³		770,000		795,025
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA: 9% Sr. Nts., 5/15/18³		1,045,000		1,029,325
9% Sr. Nts., 4/15/19³		1,000,000		1,002,500

				6,504,463


	Principal Amount		Value

Leisure Equipment & Products—0.1%
FGI Operating Co. LLC/FGI Finance, Inc., 7.875% Sr. Sec. Nts., 5/1/20³	$	2,005,000	$	2,095,225
Media—1.5%
Affinion Group Holdings, Inc., 11.625% Sr. Unsec. Nts., 11/15/15		1,140,000		906,300
Affinion Group, Inc., 7.875% Sr. Unsec. Nts., 12/15/18		3,055,000		2,619,663
AMC Entertainment, Inc., 8.75% Sr. Unsec. Nts., 6/1/19		940,000		1,012,850
Belo (A.H.) Corp., 7.75% Sr. Unsec. Unsub. Debs., 6/1/27		2,983,000		2,938,255
Cequel Communications Holdings I LLC, 8.625% Sr. Unsec. Nts., 11/15/17³		1,800,000		1,948,500
Clear Channel Communications, Inc., 5.75% Sr. Unsec. Unsub. Nts., 1/15/13		3,010,000		2,998,713
Cumulus Media Holdings, Inc., 7.75% Sr. Unsec. Unsub. Nts., 5/1/19		1,230,000		1,165,425
DISH DBS Corp.: 5.875% Sr. Unsec. Nts., 7/15/22³		770,000		781,550
7.875% Sr. Unsec. Nts., 9/1/19		2,215,000		2,563,863
Entravision Communications Corp., 8.75% Sr. Sec. Nts., 8/1/17		1,806,000		1,923,390
Gray Television, Inc., 10.50% Sr. Sec. Nts., 6/29/15		1,835,000		1,917,575
Lamar Media Corp., 5.875% Sr. Sub. Nts., 2/1/22³		785,000		808,550
Newport Television LLC/NTV Finance Corp., 13.75% Sr. Nts., 3/15/17³		2,216,028		2,304,669
Nexstar Broadcasting, Inc./Mission Broadcasting, Inc., 8.875% Sec. Nts., 4/15/17		1,780,000		1,889,025
Sinclair Television Group, Inc., 8.375% Sr. Unsec. Nts., 10/15/18		2,505,000		2,742,975
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 7.50% Sr. Sec. Nts., 3/15/19		1,595,000		1,698,675
Univision Communications, Inc., 7.875% Sr. Sec. Nts., 11/1/20³		945,000		1,015,875
UPCB Finance V Ltd., 7.25% Sr. Sec. Nts., 11/15/21³		1,225,000		1,286,250
UPCB Finance VI Ltd., 6.875% Sr. Sec. Nts., 1/15/22³		1,965,000		2,014,125
Virgin Media Finance plc: 5.25% Sr. Unsec. Unsub. Nts., 2/15/22		760,000		780,900

19	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

Media Continued
Virgin Media Finance plc: Continued
8.375% Sr. Unsec. Unsub. Nts., 10/15/19	$	860,000		$	970,725

					36,287,853
Specialty Retail—0.2%
Burlington Coat Factory Warehouse Corp., 10% Sr. Unsec. Nts., 2/15/19		500,000			532,500
J. Crew Group, Inc., 8.125% Sr. Unsec. Nts., 3/1/19		980,000			1,016,750
Limited Brands, Inc., 5.625% Sr. Nts., 2/15/22		1,975,000			2,044,125
Michaels Stores, Inc., 7.75% Sr. Unsec. Nts., 11/1/18		155,000			164,300
Sally Holdings LLC/Sally Capital, Inc., 6.875% Sr. Unsec. Nts., 11/15/19		1,830,000			1,999,275

					5,756,950
Textiles, Apparel & Luxury Goods—0.1%
Levi Strauss & Co., 7.625% Sr. Unsec. Unsub. Nts., 5/15/20		940,000			1,003,450
Quiksilver, Inc., 6.875% Sr. Unsec.
Nts., 4/15/15		725,000			703,250

					1,706,700
Consumer Staples—1.0%
Beverages—0.1%
AmBev International Finance Co. Ltd., 9.50% Sr. Unsec. Unsub. Nts., 7/24/17⁶		2,080,000	BRR		1,134,887
Food & Staples Retailing—0.2%
Cencosud SA, 5.50% Sr. Unsec. Nts., 1/20/21³		2,840,000			2,961,862
Rite Aid Corp., 7.50% Sr. Sec. Nts., 3/1/17		935,000			958,375

					3,920,237
Food Products—0.6%
American Seafoods Group LLC, 10.75% Sr. Sub. Nts., 5/15/16³		2,150,000			2,031,750
ASG Consolidated LLC, 12.075% Sr. Nts., 5/15/17^3,15		5,391,928			4,313,542
Bumble Bee Acquisition Corp., 9% Sr. Sec. Nts., 12/15/17³		1,662,000			1,666,155
MHP SA, 10.25% Sr. Unsec. Nts., 4/29/15³		2,258,000			2,187,460
Post Holdings, Inc., 7.375% Sr. Unsec. Nts., 2/15/22³		1,890,000			1,998,675
Southern States Cooperative, Inc.,
11.25% Sr. Nts., 5/15/15³		2,465,000			2,600,575

					14,798,157


	Principal Amount		Value

Household Products—0.1%
Spectrum Brands Holdings, Inc., 9.50% Sr. Sec. Nts., 6/15/18	$	870,000	$	987,450
Personal Products—0.0%
NBTY, Inc., 9% Sr. Unsec. Nts., 10/1/18		460,000		510,600
Tobacco—0.0%
Alliance One International, Inc., 10% Sr. Unsec. Nts., 7/15/16		980,000		987,350
Energy—5.1%
Energy Equipment & Services—0.5%
Forbes Energy Services Ltd., 9% Sr. Unsec. Nts., 6/15/19		1,185,000		1,125,750
Global Geophysical Services, Inc.,
10.50% Sr. Unsec. Nts., 5/1/17		1,510,000		1,445,825
Hercules Offshore, Inc., 7.125%
Sr. Sec. Nts., 4/1/17³		1,005,000		976,106
Hornbeck Offshore Services, Inc.,
5.875% Sr. Unsec. Nts., 4/1/20³		2,010,000		2,004,975
Offshore Group Investments Ltd.:
11.50% Sr. Sec. Nts., 8/1/15		3,105,000		3,384,450
11.50% Sr. Sec. Nts., 8/1/15³		815,000		888,350
Precision Drilling Corp., 6.625%
Sr. Unsec. Nts., 11/15/20		1,850,000		1,914,750
SESI LLC, 6.375% Sr. Unsec. Nts., 5/1/19		705,000		742,013

				12,482,219
Oil, Gas & Consumable Fuels—4.6%
Alliance Oil Co. Ltd., 9.875%
Sr. Unsec. Nts., 3/11/15³		1,680,000		1,738,800
Antero Resources Finance Corp.,
9.375% Sr. Unsec. Nts., 12/1/17		2,070,000		2,297,700
Atlas Pipeline Partners LP/Atlas Pipeline Finance Corp., 8.75%
Sr. Unsec. Sub. Nts., 6/15/18		1,535,000		1,646,288
Bill Barrett Corp., 7.625%
Sr. Unsec. Unsub. Nts., 10/1/19		795,000		798,975
BreitBurn Energy Partners LP/BreitBurn Finance Corp., 8.625%
Sr. Unsec. Nts., 10/15/20		2,805,000		2,980,313
Chaparral Energy, Inc., 9.875%
Sr. Unsec. Nts., 10/1/20		1,760,000		1,964,600
Chesapeake Midstream Partners LP/CHKM Finance Corp., 6.125% Sr. Unsec. Unsub. Nts., 7/15/22		1,880,000		1,851,800
Cimarex Energy Co., 5.875% Sr. Unsec. Unsub. Nts., 5/1/22		3,040,000		3,165,400
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp.,
8.50% Sr. Unsec. Unsub. Nts., 12/15/19		380,000		396,150

20	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Oil, Gas & Consumable Fuels Continued
Continental Resources, Inc., 5% Sr. Unsec. Nts., 9/15/22³	$	1,215,000	$	1,234,744
Gaz Capital SA:
7.288% Sr. Sec. Nts., 8/16/37³		7,090,000		8,082,600
8.146% Sr. Sec. Nts., 4/11/18³		3,630,000		4,340,471
8.625% Sr. Sec. Nts., 4/28/34³		2,290,000		2,925,475
9.25% Sr. Unsec. Unsub. Nts., 4/23/19³		4,965,000		6,217,620
James River Coal Co., 7.875% Sr. Unsec. Unsub. Nts., 4/1/19		1,395,000		711,450
KazMunayGaz National Co., 6.375% Sr. Unsec. Bonds, 4/9/21³		1,890,000		2,088,450
KMG Finance Sub BV, 9.125% Sr. Unsec. Unsub. Nts., 7/2/18³		4,600,000		5,709,750
Linn Energy LLC/Linn Energy Finance Corp., 8.625% Sr. Unsec. Nts., 4/15/20		3,620,000		3,918,650
Lukoil International Finance BV:
6.125% Sr. Unsec. Nts., 11/9/20³		5,180,000		5,458,166
6.656% Sr. Unsec. Unsub. Bonds, 6/7/22³		1,085,000		1,194,466
7.25% Sr. Unsec. Unsub. Nts., 11/5/19³		830,000		937,900
MEG Energy Corp., 6.50% Sr. Unsec. Nts., 3/15/21³		3,195,000		3,278,869
Murray Energy Corp., 10.25% Sr. Sec. Nts., 10/15/15³		1,315,000		1,160,488
Navios Maritime Acquisition Corp.,
8.625% Sr. Sec. Nts., 11/1/17		695,000		649,825
Odebrecht Drilling Norbe VIII/IX Ltd., 6.35% Sr. Sec. Nts., 6/30/21³		1,705,200		1,794,723
Pemex Project Funding Master Trust, 6.625% Unsec. Unsub. Bonds, 6/15/35		4,340,000		5,186,300
Pertamina Persero PT:
5.25% Nts., 5/23/21³		1,575,000		1,653,750
6% Sr. Unsec. Nts., 5/3/42³		1,720,000		1,707,100
6.50% Sr. Unsec. Nts., 5/27/41³		1,075,000		1,139,500
Petrobras International Finance Co.,
5.75% Sr. Unsec. Unsub. Nts., 1/20/20		1,685,000		1,852,745
Petroleos de Venezuela SA:
4.90% Sr. Unsec. Nts., Series 2014, 10/28/14		3,060,000		2,639,250
8.50% Sr. Nts., 11/2/17³		3,415,000		2,783,225
12.75% Sr. Unsec. Nts., 2/17/22³		1,635,000		1,540,988
Petroleos Mexicanos:
1.95% Sr. Unsec. Nts., 12/20/22⁷		185,000		185,000
2% Sr. Unsec. Nts., 12/20/22⁷		915,000		915,000
5.50% Sr. Unsec. Unsub. Nts., 1/21/21		1,995,000		2,264,325
5.50% Sr. Unsec. Unsub. Nts., 6/27/44³		1,930,000		1,978,250
6% Sr. Unsec. Unsub. Nts., 3/5/20		2,420,000		2,810,830


	Principal Amount		Value

Oil, Gas & Consumable Fuels Continued
Petroleum Co. of Trinidad & Tobago Ltd., 9.75% Sr. Unsec. Nts., 8/14/19³	$	2,825,000	$	3,493,113
Quicksilver Resources, Inc.:
8.25% Sr. Unsec. Nts., 8/1/15		985,000		925,900
11.75% Sr. Nts., 1/1/16		1,395,000		1,365,356
Range Resources Corp., 8% Sr. Unsec. Sub. Nts., 5/15/19		875,000		960,313
Samson Investment Co., 9.75% Sr. Unsec. Nts., 2/15/20³		1,510,000		1,504,338
SandRidge Energy, Inc.:
8.75% Sr. Unsec. Nts., 1/15/20		875,000		916,563
9.875% Sr. Unsec. Nts., 5/15/16		1,290,000		1,419,000
Schahin II Finance Co. SPV Ltd., 5.875% Sr. Sec. Unsub. Nts., 9/25/22³		2,260,000		2,271,300
SM Energy Co., 6.50% Sr. Nts., 1/1/23³		1,015,000		1,023,881
Tengizchevroil LLP, 6.124% Nts., 11/15/14⁵		661,080		691,225
Venoco, Inc., 8.875% Sr. Unsec. Nts., 2/15/19		1,375,000		1,258,125

				109,029,050
Financials—5.1%
Capital Markets—0.7%
Credit Suisse AG (Guernsey),
1.625% Sec. Bonds, 3/6/15³		381,500		383,595
Edgen Murray Corp., 12.25% Sr. Sec. Nts., 1/15/15		1,420,000		1,420,000
Korea Development Bank (The),
3.875% Sr. Unsec. Nts., 5/4/17		1,520,000		1,620,443
Nationstar Mortgage/Nationstar Capital Corp. ,10.875% Sr. Unsec. Nts., 4/1/15		3,715,000		4,030,775
Nuveen Investments, Inc.:
5.50% Sr. Unsec. Nts., 9/15/15		845,000		768,950
10.50% Sr. Unsec. Unsub. Nts., 11/15/15		845,000		861,900
Pinafore LLC/Pinafore, Inc., 9% Sec. Nts., 10/1/18		2,826,000		3,158,055
Springleaf Finance Corp., 6.90% Nts., Series J, 12/15/17		1,300,000		1,044,056
UBS AG (London), 2.25% Sec. Nts., 3/30/17³		495,000		497,299
Verso Paper Holdings LLC, 11.375% Sr. Unsec. Sub. Nts., Series B, 8/1/16		1,460,000		693,500
Verso Paper Holdings LLC/Verso Paper, Inc., 8.75% Sr. Sec. Nts., 2/1/19		2,495,000		998,000

				15,476,573

21	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

Commercial Banks—3.1%
Akbank TAS, 5.125% Sr. Unsec. Nts., 7/22/15⁵	$	2,065,000		$	2,114,147
Alfa Bank/Alfa Bond Issuance plc, 7.875% Nts., 9/25/17³		1,770,000			1,790,355
Australia & New Zealand Banking Group Ltd., 2.40% Sec. Bonds, 11/23/16³		640,000			656,256
Banco BMG SA: 9.15% Nts., 1/15/16⁵		1,304,000			1,193,160
9.95% Unsec. Unsub. Nts., 11/5/19³		1,260,000			1,152,900
Banco de Credito del Peru, 5.375% Sr. Nts., 9/16/20³		635,000			661,988
Banco de Credito del Peru/Panama, 6.875% Sub. Nts., 9/16/26^3,6		1,708,000			1,865,990
Banco del Estado de Chile, 3.875% Sr. Unsec. Nts., 2/8/22³		1,680,000			1,718,442
Banco do Brasil SA, 5.875% Unsec. Sub. Nts., 1/26/22³		1,160,000			1,196,308
Banco do Brasil SA (Cayman), 9.25% Perpetual Jr. Sub. Bonds^3,16		5,345,000			5,953,261
Banco do Estado do Rio Grande do Sul SA, 7.375% Sub Nts., 2/2/22³		2,110,000			2,173,300
Banco PanAmericano SA, 8.50% Sr. Unsec. Sub. Nts., 4/23/20³		1,295,000			1,392,125
Bank of Scotland plc: 4.875% Sr. Sec. Nts., 12/20/24		210,000	GBP		358,425
4.875% Sr. Sec. Unsub. Nts., 11/8/16		125,000	GBP		216,728
Barclays Bank plc, 2.25% Sr. Sec. Bonds, 5/10/17³		870,000			871,341
BOM Capital plc, 6.699% Sr. Unsec. Nts., 3/11/15³		3,970,000			4,118,875
BPCE SFH SA, 3.75% Sr. Sec. Nts., 9/13/21		580,000	EUR		779,478
CIT Group, Inc., 7% Sec. Bonds, 5/2/17⁵		1,485,735			1,490,378
Compagnie de Financement Foncier:
4.875% Sec. Nts., 5/25/21		375,000	EUR		538,216
5.75% Sec. Nts., 10/4/21		150,000	EUR		229,630
Corp Financiera de Desarrollo SA, 4.75% Sr. Unsec. Nts., 2/8/22³		1,730,000			1,816,500
EUROFIMA Bonds, 6.25%, 12/28/18		870,000	AUD		963,198
Grupo Aval Ltd., 5.25% Sr. Unsec. Nts., 2/1/17³		2,385,000			2,510,213
Halyk Savings Bank of Kazakhstan JSC: 7.25% Unsec. Unsub. Nts., 5/3/17³		585,000			585,000
9.25% Sr. Nts., 10/16/13⁵		8,350,000			8,752,111
ICICI Bank Ltd., 6.375% Bonds, 4/30/22^3,6		3,460,000			3,114,000


	Principal Amount			Value

Commercial Banks Continued
Lloyds TSB Bank plc, 6% Sr. Sec. Nts., 2/8/29		375,000	GBP	$	701,732
National Australia Bank Ltd., 2% Sec. Bonds, 6/20/17³		755,000			754,774
Sberbank of Russia Via SB Capital SA: 5.40% Sr. Unsec. Nts., 3/24/17		3,465,000			3,607,827
6.125% Sr. Nts., 2/7/22³		2,835,000			2,965,183
Societe Generale SCF SA, 2.018% Sec. Unsub. Nts., 6/19/17⁶		100,000			95,130
Sparebank 1 Boligkreditt AS, 2.30% Sec. Bonds, 6/30/17³		620,000			623,906
Stadshypotek AB, 6% Sec. Unsub. Bonds, 6/21/17		32,000,000	SEK		5,335,918
Swedbank Hypotek AB: 2.375% Sec. Nts., 4/5/17³		470,000			475,687
3.75% Bonds, 3/15/17		13,000,000	SEK		1,967,234
Toronto-Dominion Bank (The), 1.50% Sec. Bonds, 3/13/17³		510,000			515,202
Turkiye Vakiflar Bankasi TAO, 5.75% Sr. Unsec. Nts., 4/24/17³		1,275,000			1,294,125
VEB Finance Ltd., 6.902% Sr. Unsec. Unsub. Nts., 7/9/20³		2,135,000			2,318,012
VTB Capital SA: 6.315% Nts., 2/22/18³		2,845,000			2,891,231
6.465% Sr. Sec. Unsub. Nts., 3/4/15³		800,000			841,000
Yapi ve Kredi Bankasi AS, 6.75% Sr. Unsec. Nts., 2/8/17³		1,080,000			1,105,650

					73,704,936
Consumer Finance—0.1%
JSC Astana Finance, 9.16% Nts., 3/14/12⁴		7,200,000			720,000
Speedy Cash, Inc., 10.75% Sr. Sec. Nts., 5/15/18³		1,180,000			1,224,250
TMX Finance LLC/TitleMax
Finance Corp., 13.25% Sr. Sec. Nts., 7/15/15		900,000			999,000

					2,943,250
Diversified Financial Services—0.6%
Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/26³		2,472,556			2,413,709
BA Covered Bond Issuer, 4.25% Sec. Nts., 4/5/17		835,000	EUR		1,123,327
Banco Invex SA, 30.555% Mtg.-Backed Certificates, Series 062U, 3/13/34^6,14		4,830,734	MXN		470,833
Bank of America Corp., 4.75% Sr. Unsec. Nts., 4/3/17		250,000	EUR		329,666

22	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount			Value

Diversified Financial Services Continued
Caisse Centrale Desjardins du Quebec, 1.60% Sec. Bonds, 3/6/17³	$	510,000		$	516,528
Export Credit Bank of Turkey, 5.875% Sr. Unsec. Nts., 4/24/19³		1,705,000			1,758,281
GMAC LLC, 8% Sr. Unsec. Nts., 11/1/31		2,140,000			2,519,850
Instituto de Credito Oficial: 1.95% Sr. Unsec. Unsub. Nts., 12/20/22		250,000	GBP		373,065
5% Sr. Unsec. Unsub. Nts., 11/14/16		510,000			478,812
5% Sr. Unsec. Unsub. Nts., 4/10/17		1,260,000			1,143,458
JPMorgan Hipotecaria su Casita: 8.066% Sec. Nts., 8/26/35^5,14		5,808,600	MXN		52,252
28.897% Mtg.-Backed Certificates, Series 06U, 9/25/35¹⁴		1,586,240	MXN		224,334
Korea Development Bank (The), 4% Sr. Unsec. Unsub. Nts., 9/9/16		1,755,000			1,876,876
PHH Corp., 9.25% Sr. Unsec. Unsub. Nts., 3/1/16		2,030,000			2,167,025

					15,448,016
Insurance—0.1%
International Lease Finance Corp., 8.75% Sr. Unsec. Unsub. Nts., 3/15/17		1,475,000			1,663,063
Real Estate Investment Trusts—0.2%
FelCor Escrow Holdings LLC, 6.75% Sr. Sec. Nts., 6/1/19		1,980,000			2,036,925
OMEGA Healthcare Investors, Inc.,
6.75% Sr. Unsec. Nts., 10/15/22		2,470,000			2,649,075

					4,686,000
Real Estate Management & Development—0.3%
Ainsworth Lumber Co. Ltd., 11% Sr. Unsec. Unsub. Nts., 7/29/15^3,15		2,992,558			2,618,488
Realogy Corp.: 7.625% Sr. Sec. Nts., 1/15/20³		1,975,000			2,049,063
9% Sr. Sec. Nts., 1/15/20³		1,010,000			1,045,350
Wallace Theater Holdings, Inc.,
12.50% Sr. Sec. Nts., 6/15/13^3,6		2,075,000			1,963,469

					7,676,370
Thrifts & Mortgage Finance—0.0%
Compagnie de Financement Foncier, 5.625% Sr. Sec. Nts., 6/19/17		90,000			99,495
Health Care—1.0%
Biotechnology—0.1%
Grifols SA, 8.25% Sr. Sec. Nts., 2/1/18		800,000			862,000


	Principal Amount		Value

Health Care Equipment & Supplies—0.2%
Accellent, Inc., 10% Sr. Unsec. Sub. Nts., 11/1/17	$	1,145,000	$	967,525
Alere, Inc.: 7.875% Sr. Unsec. Unsub. Nts., 2/1/16		1,045,000		1,076,350
8.625% Sr. Unsec. Sub. Nts., 10/1/18		1,030,000		1,045,450
Biomet, Inc., 11.625% Sr. Unsec. Sub. Nts., 10/15/17		1,836,000		1,989,765

				5,079,090
Health Care Providers & Services—0.5%
Catalent Pharma Solutions, Inc., 9.50% Sr. Unsec. Nts., 4/15/15		1,579,400		1,624,808
Fresenius Medical Care US Finance II, Inc.: 5.625% Sr. Unsec. Nts., 7/31/19³		625,000		653,125
5.875% Sr. Unsec. Nts., 1/31/22³		315,000		328,781
Gentiva Health Services, Inc., 11.50% Sr. Unsec. Unsub. Nts., 9/1/18		1,170,000		1,023,750
Kindred Healthcare, Inc., 8.25% Sr. Unsec. Nts., 6/1/19		2,145,000		2,000,213
Multiplan, Inc., 9.875% Sr. Nts., 9/1/18³		1,150,000		1,265,000
Oncure Holdings, Inc., 11.75% Sr. Sec. Nts., 5/15/17		1,130,000		813,600
PSS World Medical, Inc., 6.375% Sr. Unsec. Unsub. Nts., 3/1/22³		455,000		468,650
Radiation Therapy Services, Inc.: 8.875% Sec. Nts., 1/15/17³		1,080,000		1,042,200
9.875% Sr. Unsec. Sub. Nts., 4/15/17		900,000		708,750
US Oncology, Inc., Escrow Shares (related to 9.125% Sr. Sec. Nts., 8/15/17)⁴		1,730,000		34,600
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc., 8% Sr. Nts., 2/1/18		1,595,000		1,638,863

				11,602,340
Health Care Technology—0.0%
MedAssets, Inc., 8% Sr. Unsec. Nts., 11/15/18		305,000		323,300
Life Sciences Tools & Services—0.0%
Jaguar Holding Co./Jaguar Merger Sub, Inc., 9.50% Sr. Unsec. Nts., 12/1/19³		770,000		846,038
Pharmaceuticals—0.2%
DJO Finance LLC/DJO Finance Corp., 10.875% Sr. Unsec. Nts., 11/15/14		535,000		555,063
Mylan, Inc., 6% Sr. Nts., 11/15/18³		810,000		856,575

23	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount		Value

Pharmaceuticals Continued
Valeant Pharmaceuticals International, Inc., 6.875% Sr. Unsec. Nts., 12/1/18³	$	765,000	$	794,644
Warner Chilcott Co. LLC/Warner Chilcott Finance LL C, 7.75% Sr. Unsec. Nts., 9/15/18		2,320,000		2,499,800

				4,706,082
Industrials—2.6%
Aerospace & Defense—0.5%
BE Aerospace, Inc., 6.875% Sr. Nts., 10/1/20		840,000		932,400
DynCorp International, Inc., 10.375% Sr. Unsec. Nts., 7/1/17		4,005,000		3,444,300
Embraer SA, 5.15% Sr. Unsec. Unsub. Nts., 6/15/22		1,330,000		1,368,570
Huntington Ingalls Industries, Inc., 7.125% Sr. Unsec. Unsub. Nts., 3/15/21		1,410,000		1,480,500
Kratos Defense & Security Solutions, Inc., 10% Sr. Sec. Nts., 6/1/17		1,040,000		1,125,800
Schaeffler Finance BV, 8.50% Sr. Sec. Nts., 2/15/19³		1,100,000		1,179,750
TransDigm, Inc., 7.75% Sr. Unsec. Sub. Nts., 12/15/18		2,660,000		2,932,650

				12,463,970
Air Freight & Logistics—0.0%
AMGH Merger Sub, Inc., 9.25% Sr. Sec. Nts., 11/1/18³		770,000		804,650
Airlines—0.2%
American Airlines 2011-2 Class A Pass-Through Trust, 8.625% Sec. Certificates, 4/15/23		407,601		427,981
Delta Air Lines, Inc., 12.25% Sr. Sec. Nts., 3/15/15³		3,630,000		3,965,775

				4,393,756
Building Products—0.1%
Associated Materials LLC, 9.125% Sr. Sec. Nts., 11/1/17³		1,105,000		991,738
Ply Gem Industries, Inc., 13.125% Sr. Unsec. Sub. Nts., 7/15/14		1,940,000		1,973,950

				2,965,688
Commercial Services & Supplies—0.2%
R.R. Donnelley & Sons Co., 7.25% Sr. Nts., 5/15/18		2,000,000		1,915,000
STHI Holding Corp., 8% Sec. Nts., 3/15/18³		795,000		844,688


	Principal Amount			Value

Commercial Services & Supplies Continued
West Corp., 8.625% Sr. Unsec. Nts., 10/1/18	$	1,785,000		$	1,901,025

					4,660,713
Construction & Engineering—0.4%
IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24⁵		3,608,768			4,348,566
Odebrecht Finance Ltd.: 5.125% Sr. Nts., 6/26/22⁵		1,785,000			1,771,613
7% Sr. Unsec. Nts., 4/21/20³		970,000			1,067,000
7.125% Sr. Nts., 6/26/42⁵		1,335,000			1,335,000

					8,522,179
Electrical Equipment—0.1%
Thermon Industries, Inc., 9.50% Sr. Sec. Nts., 5/1/17		1,397,000			1,543,685
Industrial Conglomerates—0.0%
GE Capital Australia Funding Pty Ltd., 7% Bonds, 10/8/15		590,000	AUD		647,882
Machinery—0.5%
Actuant Corp., 5.625% Sr. Unsec. Unsub. Nts., 6/15/22³		1,220,000			1,259,650
Cleaver-Brooks, Inc., 12.25% Sr. Sec. Nts., 5/1/16³		1,880,000			2,006,900
CNH Capital LLC, 6.25% Sr. Unsec. Nts., 11/1/16³		520,000			559,000
Manitowoc Co., Inc. (The), 8.50% Sr. Unsec. Nts., 11/1/20		2,655,000			2,880,675
Terex Corp., 8% Sr. Unsec. Sub. Nts., 11/15/17		1,910,000			1,991,175
Thermadyne Holdings Corp., 9% Sr. Sec. Nts., 12/15/17		1,930,000			1,983,075
Xerium Technologies, Inc., 8.875% Sr. Unsec. Nts., 6/15/18		1,245,000			986,663

					11,667,138
Marine—0.2%
Marquette Transportation Co./Marquette Transportation Finance Corp., 10.875% Sec. Nts., 1/15/17		2,790,000			2,950,425
Navios Maritime Holdings, Inc., 8.875% Sr. Sec. Nts., 11/1/17		565,000			572,063

					3,522,488
Professional Services—0.0%
Altegrity, Inc., 10.50% Sr. Unsec. Sub. Nts., 11/1/15⁵		995,000			910,425
Road & Rail—0.3%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 8.25% Sr. Unsec. Unsub. Nts., 1/15/19		620,000			668,050

24	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value

Road & Rail Continued
Hertz Corp. (The), 7.50% Sr. Unsec. Nts., 10/15/18	$	2,840,000	$	3,060,100
Kazakhstan Temir Zholy Finance BV, 6.375% Sr. Unsec. Nts., 10/6/20³		980,000		1,082,900
Western Express, Inc., 12.50% Sr. Sec. Nts., 4/15/15³		3,730,000		2,275,300

				7,086,350
Trading Companies & Distributors—0.1%
UR Financing Escrow Corp.: 7.375% Sr. Unsec. Nts., 5/15/20³		2,430,000		2,545,425
7.625% Sr. Unsec. Nts., 4/15/22³		605,000		635,250

				3,180,675
Information Technology—1.2%
Communications Equipment—0.1%
Avaya, Inc., 7% Sr. Sec. Nts., 4/1/19³		1,955,000		1,823,038
ViaSat, Inc., 6.875% Sr. Unsec. Unsub. Nts., 6/15/20⁵		913,000		926,695
Zayo Escrow Corp.: 8.125% Sr. Sec. Nts., 1/1/20		465,000		488,250
10.125% Sr. Unsec. Nts., 7/1/20³		310,000		330,925

				3,568,908
Computers & Peripherals—0.1%
Seagate HDD (Cayman), 7% Sr. Unsec. Nts., 11/1/21		1,665,000		1,802,363
Electronic Equipment & Instruments—0.1%
Anixter, Inc., 5.625% Sr. Unsec. Nts., 5/1/19		770,000		798,875
CDW LLC/CDW Finance Corp., 12.535% Sr. Unsec. Sub. Nts., 10/12/17		1,920,000		2,092,800

				2,891,675
Internet Software & Services—0.1%
ITC DeltaCom, Inc., 10.50% Sr. Sec. Nts., 4/1/16		3,650,000		3,905,500
IT Services—0.3%
Ceridian Corp., 11.25% Sr. Unsec. Nts., 11/15/15		2,145,000		2,069,925
First Data Corp.: 8.875% Sr. Sec. Nts., 8/15/20³		1,530,000		1,663,875
9.875% Sr. Unsec. Nts., 9/24/15		955,000		971,713
12.625% Sr. Unsec. Nts., 1/15/21		1,670,000		1,680,438

				6,385,951
Semiconductors & Semiconductor Equipment—0.4%
Advanced Micro Devices, Inc., 7.75% Sr. Unsec. Nts., 8/1/20		2,705,000		2,989,025
Amkor Technologies, Inc., 6.625% Sr. Unsec. Nts., 6/1/21		935,000		937,338


	Principal Amount		Value

Semiconductors & Semiconductor Equipment Continued
Freescale Semiconductor, Inc.: 9.25% Sr. Sec. Nts., 4/15/18³	$	1,710,000	$	1,838,250
10.75% Sr. Unsec. Nts., 8/1/20		1,950,000		2,106,000
NXP BV/NXP Funding LLC, 9.75% Sr. Sec. Nts., 8/1/18³		855,000		978,975

				8,849,588
Software—0.1%
Lawson Software, Inc., 9.375% Sr. Nts., 4/1/19³		380,000		407,550
SunGard Data Systems, Inc.: 7.375% Sr. Unsec. Nts., 11/15/18		560,000		603,400
7.625% Sr. Unsec. Nts., 11/15/20		765,000		818,550

				1,829,500
Materials—2.0%
Chemicals—0.6%
Braskem America Finance Co., 7.125% Sr. Unsec. Nts., 7/22/41³		825,000		827,063
Braskem Finance Ltd.: 5.375% Sr. Unsec. Nts., 5/2/22³		1,755,000		1,768,163
5.75% Sr. Unsec. Nts., 4/15/21³		1,760,000		1,817,200
Ferro Corp., 7.875% Sr. Unsec. Nts., 8/15/18		1,545,000		1,514,100
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC: 8.875% Sr. Sec. Nts., 2/1/18		980,000		1,004,500
9% Sec. Nts., 11/15/20		1,340,000		1,162,450
Ineos Finance plc, 8.375% Sr. Sec. Bonds, 2/15/19³		1,480,000		1,535,500
LyondellBasell Industries NV, 6% Sr. Nts., 11/15/21³		1,525,000		1,681,313
Momentive Performance Materials, Inc., 9% Sec. Nts., 1/15/21		2,165,000		1,650,813
Scotts Miracle-Gro Co. (The), 6.625% Sr. Unsec. Unsub. Nts., 12/15/20		250,000		269,375

				13,230,477
Construction Materials—0.1%
Building Materials Corp. of America, 6.75% Sr. Nts., 5/1/21³		1,540,000		1,651,650
Ply Gem Industries, Inc., 8.25% Sr. Sec. Nts., 2/15/18		1,315,000		1,295,275

				2,946,925
Containers & Packaging—0.3%
Berry Plastics Corp., 9.75% Sec. Nts., 1/15/21		1,580,000		1,726,150
Consolidated Container Co. LLC/Consolidated Container Capital, Inc., 10.125% Sr. Unsec. Nts., 7/15/20^3,7		465,000		481,275

25	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

Containers & Packaging Continued
Polymer Group, Inc., 7.75% Sr. Sec. Nts., 2/1/19	$	2,075,000		$	2,202,094
Rock-Tenn Co., 4.45% Sr. Unsec. Nts., 3/1/19³		455,000			468,311
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75% Sr. Sec. Nts., 1/15/19³		1,949,000			1,490,985

					6,368,815
Metals & Mining—0.5%
Aleris International, Inc., 7.625% Sr. Unsec. Nts., 2/15/18		2,715,000			2,769,300
Alrosa Co. Ltd., 8.25% Sr. Unsec. Nts., 6/23/15⁶		19,220,000	RUR		594,649
Alrosa Finance SA, 7.75% Nts., 11/3/20³		1,815,000			1,909,870
Consolidated Minerals Ltd., 8.875% Sr. Sec. Nts., 5/1/16³		1,245,000			958,650
CSN Islands XI Corp., 6.875% Sr. Unsec. Nts., 9/21/19³		1,095,000			1,199,025
Evraz Group SA, 7.40% Nts., 4/24/17³		1,700,000			1,674,806
Ferrexpo Finance plc, 7.875% Sr. Unsec. Bonds, 4/7/16³		1,435,000			1,302,263
JSC Severstal, 6.70% Nts., 10/25/17³		2,235,000			2,266,424
Novelis, Inc., 8.75% Sr. Unsec. Nts., 12/15/20		465,000			503,363

					13,178,350
Paper & Forest Products—0.5%
Appleton Papers, Inc., 10.50% Sr. Sec. Nts., 6/15/15³		3,700,000			3,977,500
Catalyst Paper Corp., 11% Sr. Sec. Nts., 12/15/16^3,4		3,981,000			1,970,595
Mercer International, Inc., 9.50% Sr. Unsec. Nts., 12/1/17		2,005,000			2,090,213
NewPage Corp., 11.375% Sr. Sec. Nts., 12/31/14⁴		3,325,000			2,177,875
Norske Skogindustrier ASA, 6.125% Unsec. Bonds, 10/15/15³		1,500,000			1,057,500

					11,273,683
Telecommunication Services—2.0%
Diversified Telecommunication Services—1.0%
Axtel SAB de CV, 9% Sr. Unsec. Nts., 9/22/19³		1,470,000			984,900
Brasil Telecom SA, 9.75% Sr. Unsec. Nts., 9/15/16³		2,990,000	BRR		1,566,828
Cincinnati Bell, Inc.: 8.25% Sr. Nts., 10/15/17		1,365,000			1,426,425
8.75% Sr. Unsec. Sub. Nts., 3/15/18		1,215,000			1,175,513


	Principal Amount			Value

Diversified Telecommunication Services Continued
Frontier Communications Corp.: 8.25% Sr. Unsec. Nts., 4/15/17	$	950,000		$	1,026,000
8.50% Sr. Unsec. Nts., 4/15/20		635,000			676,275
Intelsat Bermuda Ltd.: 11.25% Sr. Unsec. Nts., 2/4/17		2,055,000			2,124,356
11.50% Sr. Unsec. Nts., 2/4/17¹⁵		1,424,414			1,476,049
Intelsat Jackson Holdings SA, 7.25% Sr. Unsec. Nts., 10/15/20		755,000			796,525
Level 3 Financing, Inc., 9.375% Sr. Unsec. Unsub. Nts., 4/1/19		1,820,000			1,974,700
Telemar Norte Leste SA, 5.50% Sr. Unsec. Nts., 10/23/20³		5,842,000			5,988,050
Wind Acquisition Finance SA, 7.25% Sr. Sec. Nts., 2/15/18³		1,975,000			1,738,000
Windstream Corp., 7.50% Sr. Unsec. Unsub. Nts., 6/1/22³		1,975,000			2,044,125

					22,997,746
Wireless Telecommunication Services—1.0%
America Movil SAB de CV, 8.46% Sr. Unsec. Unsub. Bonds, 12/18/36		14,700,000	MXN		1,158,417
Cricket Communications, Inc., 7.75% Sr. Unsec. Nts., 10/15/20		2,440,000			2,342,400
MetroPCS Wireless, Inc., 6.625% Sr. Unsec. Nts., 11/15/20		1,945,000			1,920,688
MTS International Funding Ltd., 8.625% Sr. Unsec. Nts., 6/22/20³		2,300,000			2,644,287
Nextel Communications, Inc., 7.375% Sr. Nts., Series D, 8/1/15		2,065,000			2,077,906
Sistema International Funding SA, 6.95% Unsec. Nts., 5/17/19³		1,700,000			1,680,875
Sprint Capital Corp., 8.75% Nts., 3/15/32		480,000			439,200
Sprint Nextel Corp., 9% Sr. Unsec. Nts., 11/15/18³		1,800,000			2,016,000
Vimpel Communications/VIP Finance Ireland Ltd. OJSC: 7.748% Sec. Nts., 2/2/21³		1,370,000			1,326,489
9.125% Sr. Unsec. Nts., 4/30/18³		4,910,000			5,241,425
Vimpel-Communications: 8.85% Sr. Unsec. Nts., 3/8/22⁶		21,900,000	RUR		656,603
8.85% Sr. Unsec. Nts., 3/8/22⁶		21,900,000	RUR		656,603
VimpelCom Holdings BV, 7.504% Sr. Unsec. Unsub. Nts., 3/1/22³		2,295,000			2,161,752

					24,322,645
Utilities—2.4%
Electric Utilities—1.5%
Centrais Eletricas Brasileiras SA, 5.75% Sr. Unsec. Unsub. Nts., 10/27/21³		2,495,000			2,739,510

26	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount			Value

Electric Utilities Continued
Empresa Distribuidora y Comercializadora Norte SA, 9.75% Nts., 10/25/22³	$	910,000		$	332,150
Empresas Publicas de Medellin ESP, 7.625% Sr. Unsec. Nts., 7/29/19³		1,690,000			2,070,250
Energy Future Intermediate Holding Co. LLC, 10% Sr. Sec. Nts., 12/1/20		1,807,000			1,974,148
Eskom Holdings Ltd.: 5.75% Sr. Unsec. Bonds, 1/26/21³		1,845,000			2,027,194
7.85% Sr. Unsec. Unsub. Nts., Series ES26, 4/2/26		31,000,000	ZAR		3,585,416
10% Nts., Series ES23, 1/25/23		44,000,000	ZAR		6,178,639
Israel Electric Corp. Ltd.: 6.70% Sr. Unsec. Nts., 2/10/17³		1,415,000			1,468,133
7.25% Nts., 1/15/19³		6,165,000			6,314,446
Majapahit Holding BV: 7.75% Nts., 10/17/16³		1,835,000			2,103,369
8% Sr. Unsec. Nts., 8/7/19³		1,410,000			1,706,100
National Power Corp., 5.875% Unsec. Unsub. Bonds, 12/19/16		109,600,000	PHP		2,641,601
Perusahaan Listrik Negara PT, 5.50% Sr. Unsec. Nts., 11/22/21³		2,410,000			2,530,500

					35,671,456
Energy Traders—0.6%
AES Corp. (The): 7.375% Sr. Unsec. Nts., 7/1/21³		525,000			586,688
8% Sr. Unsec. Unsub. Nts., 10/15/17		855,000			976,838
Calpine Corp.: 7.50% Sr. Sec. Nts., 2/15/21³		885,000			960,225
7.875% Sr. Sec. Nts., 1/15/23³		555,000			607,725
Colbun SA, 6% Sr. Unsec. Nts., 1/21/20³		2,380,000			2,572,383
Comision Federal de Electricidad, 4.875% Sr. Nts., 5/26/21³		2,040,000			2,223,600
Energy Future Holdings Corp., 10% Sr. Sec. Nts., 1/15/20		1,840,000			1,973,400
First Wind Capital LLC, 10.25% Sr. Sec. Nts., 6/1/18³		270,000			271,350
Foresight Energy LLC, 9.625% Sr. Unsec. Nts., 8/15/17³		575,000			578,594
United Maritime Group LLC, 11.75% Sr. Sec. Nts., 6/15/15		2,595,000			2,848,013

					13,598,816
Gas Utilities—0.2%
AmeriGas Finance LLC/AmeriGas Finance Corp., 6.75% Sr. Unsec. Nts., 5/20/20		1,910,000			1,952,815


	Principal Amount			Value

Gas Utilities Continued
Empresa de Energia de Bogota SA ESP, 6.125% Sr. Unsec. Unsub. Nts., 11/10/21³	$	1,140,000		$	1,208,400
Transportadora de Gas Internacional SA ESP, 5.70% Sr. Unsec. Nts., 3/20/22³		1,560,000			1,626,300

					4,787,515
Water Utilities—0.1%
Cia de Saneamento Basico do Estado de Sao Paulo, 6.25% Sr. Unsec. Nts., 12/16/20³		1,640,000			1,746,600

Total Corporate Bonds and Notes (Cost $622,703,552)					621,177,926

	Shares
Preferred Stocks—0.2%
Ally Financial, Inc., 7% Cum., Series G, Non-Vtg.		2,040			1,817,576
Greektown Superholdings, Inc., Cv., Series A-12		29,815			2,101,958

Total Preferred Stocks (Cost $4,848,095)					3,919,534
Common Stocks—0.2%
American Media Operations, Inc.²		161,731			2,102,503
Arco Capital Corp. Ltd.^2,5		690,638			1,035,957
Dana Holding Corp.		62,573			801,560
Global Aviation Holdings, Inc.²		100			—
Greektown Superholdings, Inc., Series A-1²		3,450			179,400
Kaiser Aluminum Corp.		229			11,871
LyondellBasell Industries NV, Cl. A		24,183			973,849
Orbcomm, Inc.²		375			1,223
Premier Holdings Ltd.²		18,514			—
Resolute Forest Products²		64,417			745,949

Total Common Stocks (Cost $20,298,776)					5,852,312

	Units
Rights, Warrants and Certificates—0.0%
MediaNews Group, Inc. Wts., Strike Price $0.001, Exp. 3/19/17² (Cost $3,162,655)		11,668			420

	Principal Amount
Structured Securities—2.7%
Barclays Bank plc: Indonesia (Republic of) Total Return Linked Bonds, 7%, 5/19/27		12,180,000,000	IDR		1,351,892

27	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Principal Amount			Value

Structured Securities Continued
Barclays Bank plc: Continued
Indonesia (Republic of) Total Return Linked Bonds, 8.25%, 6/17/32		22,430,000,000	IDR	$	2,734,347
Citigroup Global Markets Holdings, Inc.: Colombia (Republic of) Credit Linked Bonds, 11.25%, 10/25/18⁵		3,255,000,000	COP		2,268,663
Colombia (Republic of) Credit Linked Nts., Series 2, 10%, 7/25/24^5,14		3,660,000,000	COP		2,541,339
Colombia (Republic of) Credit Linked Nts., Series 2, 10%, 7/25/24		10,368,000,000	COP		7,199,072
Colombia (Republic of) Total Return Linked Bonds, Series 2, 11%, 7/27/20		2,665,000,000	COP		1,869,316
Credit Suisse First Boston International, Moitk Total Return Linked Nts., 21%, 3/30/11⁴		53,910,000	RUR		—
Credit Suisse First Boston, Inc. (Nassau Branch), Russian Specialized Construction & Installation Administration Total Return Linked Nts., 13%, 5/24/10⁴		97,250,000	RUR		—
Deutsche Bank AG: Coriolanus Ltd. Sec. Credit Linked Bonds, Series 128, 3.006%, 5/6/25^5,12		1,763,500			1,269,033
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.061%, 5/6/25^5,12		2,246,971			1,616,944
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.10%, 5/6/25^5,12		1,939,900			1,395,972
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.134%, 5/6/25^5,12		1,734,026			1,247,823
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.187%, 5/6/25^5,12		2,159,003			1,553,641
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.239%, 5/6/25^5,12		2,464,173			1,773,245
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.266%, 5/6/25^5,12		1,968,587			1,416,615
Coriolanus Ltd. Sec. Credit Linked Bonds, 3.343%, 5/6/25^5,12		1,850,388			1,331,558
Coriolanus Ltd. Sec. Credit Linked Nts., 12.762%, 12/31/17^5,14		15,420,000	BRR		9,020,911
Opic Reforma I Credit Linked Nts., Cl. 2A, 8.265%, 5/22/15^5,6		697,693	MXN		50,210
Opic Reforma I Credit Linked Nts., Cl. 2B, 8.265%, 5/22/15^5,6		1,220,632	MXN		87,844
Opic Reforma I Credit Linked Nts., Cl. 2C, 8.265%, 5/22/15^5,6		18,404,162	MXN		1,324,467
Opic Reforma I Credit Linked Nts., Cl. 2D, 8.265%, 5/22/15^5,6		1,341,270	MXN		96,525
Opic Reforma I Credit Linked Nts., Cl. 2E, 8.265%, 5/22/15^5,6		974,458	MXN		70,127


	Principal Amount			Value

Structured Securities Continued
Deutsche Bank AG: Continued
Opic Reforma I Credit Linked Nts., Cl. 2F, 8.265%, 5/22/15^5,6		622,337	MXN	$	44,787
Opic Reforma I Credit Linked Nts., Cl. 2G, 8.265%, 5/22/15^5,6		114,609	MXN		8,248
Goldman Sachs Capital Markets LP, Colombia (Republic of) Credit Linked Nts., 10.476%, 2/8/37^5,12		63,720,800,000	COP		2,941,276
Hallertau SPC Credit Linked Nts.: Series 2007-01, 2.787%, 12/20/17^5,6		6,250,000			5,385,000
Series 2008-01, 9.888%, 8/2/10^4,5,12		14,337,604	BRR		713,846
HSBC Bank USA NA, Indonesia (Republic of) Credit Linked Nts., 8.25%, 6/15/32³		14,960,000,000	IDR		1,823,710
JPMorgan Chase & Co.: Colombia (Republic of) Credit Linked Nts., 11%, 7/28/20⁵		1,315,000,000	COP		922,357
Indonesia (Republic of) Credit Linked Nts., 7%, 5/19/27³		28,640,000,000	IDR		3,178,834
LB Peru Trust II Certificates, Series 1998-A, 4.534%, 2/28/16^4,12		363,871			36,387
Merrill Lynch, Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16⁵		1,784,000,000	COP		1,061,610
Morgan Stanley: Peru (Republic of) Credit Linked Nts., 6.25%, 3/23/17³		4,885,000	PEN		1,591,497
Russian Federation Total Return Linked Bonds, Series 007, Cl. VR, 5%, 8/22/34		57,685,329	RUR		845,147
Morgan Stanley Capital Services, Inc.: Brazil (Federative Republic of) Credit Linked Nts., 12.551%, 1/5/22^3,12		28,914,000	BRR		2,159,373
United Mexican States Credit Linked Nts., 5.64%, 11/20/15³		2,000,000			1,662,000
UBS AG, Indonesia (Republic of) Total Return Linked Nts., 8.25%, 6/17/32		20,320,000,000	IDR		2,477,125

Total Structured Securities (Cost $85,171,527)					65,070,741

Expiration
Date

Strike
Price

Contracts

Options Purchased—0.3%

Australian Dollar (AUD) Call²

8/23/12

1AUD per
1.035USD

7,295,000

64,209

Australian Dollar (AUD) Call²

8/27/12

1AUD per
1.035USD

43,700,000

403,158

28	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA



	Expiration Date		Strike Price		Contracts		Value
Options Purchased Continued
Australian Dollar (AUD) Call²		8/27/12		1AUD per 1.013USD		21,800,000	$	436,286
Australian Dollar (AUD) Call²		8/28/12		1AUD per 1.035USD		43,700,000		407,605
Australian Dollar (AUD) Call²		8/28/12		1AUD per 1.0185USD		21,900,000		371,836
Australian Dollar (AUD) Call²		8/31/12		1AUD per 1.0195USD		6,060,000		101,542
Australian Dollar (AUD) Call²		8/31/12		1AUD per 1.0195USD		6,060,000		101,542
Australian Dollar (AUD) Call²		8/31/12		1AUD per 1.0195USD		3,640,000		60,992
Brazilian Real (BRR) Call²		10/18/12		1USD per 1.82BRR		13,175,000		11,272
Brazilian Real (BRR) Call²		10/18/12		1USD per 1.90BRR		13,770,000		40,763
Canadian Dollar (CAD) Put²		10/8/12		1AUD per 0.98CAD		2,480,000		7,578
Euro (EUR) FX Futures, 9/17/12 Call²		7/9/12		1.290		20		2,750
Euro (EUR) FX Futures, 9/17/12 Call²		7/9/12		1.310		20		500
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.160		2		13
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.170		200		1,250
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.190		125		781
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.230		302		15,100
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.190		94		588
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.200		54		338
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.200		231		1,444



	Expiration Date		Strike Price		Contracts		Value
Options Purchased Continued
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12	$	1.210		58	$	725
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.230		288		10,800
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.250		15		2,625
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.250		66		17,325
Euro (EUR) FX Futures, 9/17/12 Put²		7/9/12		1.260		1		588
Euro (EUR) FX Futures, 9/17/12 Put²		9/10/12		1.200		57		37,050
Euro$ 1 yr. MID-CRV Futures, 9/16/13 Put²		7/16/12		99.250		376		4,700
Euro$ 1 yr. MID-CRV Futures, 9/16/13 Put²		9/17/12		99.250		188		9,400
Japanese Yen (JPY) Futures, 9/17/12 Call²		7/9/12		128.500		18		563
Japanese Yen (JPY) Futures, 9/17/12 Call²		7/9/12		131.500		61		381
Japanese Yen (JPY) Futures, 9/17/12 Call²		7/9/12		133.000		21		131
Japanese Yen (JPY) Futures, 9/17/12 Call²		7/9/12		133.500		61		381
Japanese Yen (JPY) Futures, 9/17/12 Call²		9/10/12		141.000		20		250
Japanese Yen (JPY) Futures, 9/17/12 Put²		7/9/12		123.000		34		2,550
Japanese Yen (JPY) Futures, 9/17/12 Put²		7/9/12		123.500		102		14,025
Japanese Yen (JPY) Futures, 9/17/12 Put²		7/9/12		124.000		82		18,450
Japanese Yen (JPY) Futures, 9/17/12 Put²		9/10/12		120.000		131		58,950
Japanese Yen (JPY) Futures, 9/17/12 Put²		9/10/12		122.000		18		15,975

29	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Expiration
Date

Strike
Price

Contracts

Value

Options Purchased Continued

Japanese Yen (JPY) Put²

3/29/13

1USD per
85JPY

204,000,000

31,810

Japanese Yen (JPY) Put²

5/31/13

1USD per
82JPY

416,833,857

141,569

Mexican Nuevo Peso (MXN) Call²

11/9/12

1USD per
12.84MXN

186,100,000

182,278

Mexican Nuevo Peso (MXN) Call²

11/13/12

1USD per
12.925MXN

187,300,000

214,075

Mexican Nuevo Peso (MXN) Call²

11/30/12

1USD per
13.333MXN

171,010,000

373,826

Mexican Nuevo Peso (MXN) Put²

9/26/12

1AUD per
13MXN

1,240,000

7,535

New Turkish Lira (TRY) Call²

8/29/12

1USD per
1.80TRY

49,200,000

309,775

New Turkish Lira (TRY) Call²

8/29/12

1USD per
1.80TRY

39,400,000

248,072

New Turkish Lira (TRY) Call²

8/30/12

1USD per
1.80TRY

10,900,000

69,267

New Turkish Lira (TRY) Call²

9/3/12

1USD per
1.80TRY

8,730,000

58,774

New Turkish Lira (TRY) Call²

9/3/12

1USD per
1.81TRY

8,230,000

66,214

Polish Zloty (PLZ) Call²

8/29/12

1USD per
3.250PLZ

135,100,000

579,856

Polish Zloty (PLZ) Call²

8/31/12

1USD per
3.32PLZ

20,140,000

145,753

Polish Zloty (PLZ) Call²

8/31/12

1USD per
3.311PLZ

12,040,000

81,256

Russian Ruble (RUR) Call²

11/29/12

1USD per
31.25RUR

308,600,000

93,913

South African Rand (ZAR) Call²

8/29/12

1USD per
7.90ZAR

293,800,000

306,328

South African Rand (ZAR) Call²

8/31/12

1USD per
8.002ZAR

48,500,000

75,073

South African Rand (ZAR) Call²

8/31/12

1USD per
8.018ZAR

34,020,000

55,715

South Korean Won (KRW) Call²

8/28/12

1USD per
1,137KRW

24,860,000,000

215,288



	Expiration Date		Strike Price		Contracts		Value
Options Purchased Continued
South Korean Won (KRW) Call²		8/28/12		1USD per 1,137KRW		24,860,000,000	$	215,288
South Korean Won (KRW) Call²		8/31/12		1USD per 1,135.50KRW		6,880,000,000		58,205
South Korean Won (KRW) Call²		8/31/12		1USD per 1,136.50KRW		4,480,000,000		39,514
South Korean Won (KRW) Call²		8/31/12		1USD per 1,138KRW		3,795,000,000		35,559
U.S. Treasury Nts., 10 yr. Futures, 9/19/12 Put²		7/30/12		132.500		194		72,750
U.S. Treasury Nts., 10 yr. Futures, 9/19/12 Put²		7/30/12		131.500		254		43,656
U.S. Treasury Nts., 10 yr. Futures, 9/19/12 Put²		8/27/12		128.000		66		4,125
U.S. Treasury Nts., 10 yr. Futures, 9/19/12 Put²		8/27/12		130.000		66		11,344
Worst performing of: Euro (EUR) Put/United States Dollar (USD) Call/ or the United States Dollar (USD) Call/ Japanese Yen (JPY) Put²		7/26/12		1EUR per 1.275USD/ 1USD per 79.50JPY		4,936,000		24,483
Total Options Purchased (Cost $5,006,446)								5,985,717

Swaption
Expiration
Date

Notional
Amount

Swaptions Purchased—0.2%

Bank of America NA, Interest Rate Swaption (European); Swap Terms: Paid: 1.35%; Received: Three-Month USD BBA LIBOR; Termination Date: 11/5/17²

11/2/12

1,240,000

2,633

30	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA



	Swaption Expiration Date		Notional Amount		Value
Swaptions Purchased Continued
Bank of America NA, Interest Rate Swaption (European); Swap Terms: Paid: 2.195%; Received: Three-Month USD BBA LIBOR; Termination Date: 10/2/19²		10/1/12	$	4,000,000	$	1,624
Bank of America NA, Interest Rate Swaption (European); Swap Terms: Paid: 2.275%; Received: Three-Month USD BBA LIBOR; Termination Date: 7/9/22²		7/5/12		29,355,000		—
Bank of America NA, Interest Rate Swaption (European); Swap Terms: Paid: 3.10%; Received: Three-Month USD BBA LIBOR; Termination Date: 5/22/43²		5/21/13		10,110,000		327,906
Bank of America NA; Index Credit Default Swaption (European); Swap Terms: Paid: Sell Protection on iTraxx Europe Crossover Series 17 Version 1; Received: 5%; Termination Date: 6/20/17²		9/20/12		1,255,000		27,531
Barclays Bank plc; Interest Rate Swaption (European); Swap Terms: Paid: 2.67%; Received: Six-Month EUR EURIBOR; Termination Date: 5/8/44²		5/7/14		5,030,000		531,249
Barclays Bank plc; Interest Rate Swaption (European); Swap Terms: Paid: 2.695%; Received: Three-Month USD BBA LIBOR; Termination Date: 5/15/23²		4/12/13		25,100,000		222,613
Barclays Bank plc; Interest Rate Swaption (European); Swap Terms: Paid: 3.48%; Received: Three-Month USD BBA LIBOR; Termination Date: 4/27/47²		4/26/17		5,040,000		495,332
Goldman Sachs International, Interest Rate Swaption (European); Swap Terms: Paid: 1.88%; Received: Three-Month USD BBA LIBOR; Termination Date: 7/24/19²		7/23/12		19,685,000		141
Goldman Sachs International, Interest Rate Swaption (European); Swap Terms: Paid: 1.945%; Received: Three-Month USD BBA LIBOR; Termination Date: 10/2/19²		10/1/12		10,005,000		11,184



	Swaption Expiration Date		Notional Amount		Value
Swaptions Purchased Continued
Goldman Sachs International, Interest Rate Swaption (European); Swap Terms: Paid: 2.185%; Received: Three-Month USD BBA LIBOR; Termination Date: 7/13/22²		7/12/12	$	14,735,000	$	296
Goldman Sachs International, Interest Rate Swaption (European); Swap Terms: Paid: 2.495%; Received: Three-Month USD BBA LIBOR; Termination Date: 11/22/22²		11/23/12		37,700,000		157,559
JPMorgan Chase Bank NA, Index Credit Default Swaption (European); Swap Terms: Paid: Sell Protection on iTraxx Europe Crossover Series 17 Version 1; Received: 5%; Termination Date: 6/20/17²		9/20/12		1,280,000		22,158
JPMorgan Chase Bank NA, Interest Rate Swaption (European); Swap Term: Paid: 2.245%; Received: Three-Month USD BBA LIBOR; Termination Date: 7/10/22²		7/9/12		29,420,000		4
JPMorgan Chase Bank NA, Interest Rate Swaption (European); Swap Terms: Paid: 1.65%; Received: Three-Month USD BBA LIBOR; Termianation Date: 2/25/18²		2/22/13		24,810,000		80,409
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: 1.17%; Received: Six -Month JPY BBA LIBOR; Termination Date: 9/26/22²		9/25/12		990,000,000		14,689
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: 2.11%; Received: Six-Month EUR EURIBOR; Termination Date: 1/3/23²		1/2/13		3,205,000		94,503
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: 2.215%; Received: Three-Month USD BBA LIBOR; Termination Date: 12/4/22²		12/3/12		96,515,000		898,879
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: 2.98%; Received: Six-Month EUR EURIBOR; Termination Date: 3/4/23²		3/1/13		24,830,000		223,407

31	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued


	Swaption Expiration Date		Notional Amount		Value
Swaptions Purchased Continued
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: 3.025%; Received: Six-Month EUR EURIBOR; Termination Date: 2/27/23²		2/26/13	$	24,845,000	$	201,939
UBS AG, Interest Rate Swaption (European); Swap Terms: Paid: Three-Month AUD BBR BBSW; Received: 3.35%; Termination Date: 12/10/15²		12/10/12		3,770,000		39,182
UBS AG, Interest Rate
Swaption (European); Swap Terms: Paid: Three-Month USD BBA LIBOR; Received: 1.54%; Termination Date: 6/13/23²		6/12/13		25,380,000		273,428

Total Swaptions Purchased (Cost $13,032,842)						3,626,666



	Shares			Value
Investment Companies—17.6%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^1,17		44,544,249		$	44,544,249
Oppenheimer Master Event-Linked Bond Fund, LLC¹		4,827,322			56,111,439
Oppenheimer Master Loan Fund, LLC¹		24,613,303			307,186,686
Oppenheimer Short Duration
Fund, Cl. Y¹		1,005,307			10,073,178

Total Investment Companies (Cost $419,900,287)					417,915,552
Total Investments, at Value (Cost $2,734,021,232)		113.0	%		2,681,160,263
Liabilities in Excess of Other Assets		(13.0	)		(307,956,933	)

Net Assets		100.0	%	$	2,373,203,330

32	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies:


AUD	Australian Dollar	MYR	Malaysian Ringgit
BRR	Brazilian Real	NGN	Nigeria Naira
CAD	Canadian Dollar	PEN	Peruvian New Sol
COP	Colombian Peso	PHP	Philippines Peso
DKK	Danish Krone	PLZ	Polish Zloty
EUR	Euro	RUR	Russian Ruble
GBP	British Pound Sterling	SEK	Swedish Krona
HUF	Hungarian Forint	SGD	Singapore Dollar
IDR	Indonesia Rupiah	TRY	New Turkish Lira
JPY	Japanese Yen	ZAR	South African Rand
MXN	Mexican Nuevo Peso

1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended June 29, 2012, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd.^b		15,000		—		—		15,000
Oppenheimer Institutional Money Market Fund, Cl. E		27,393,119		489,551,317		472,400,187		44,544,249
Oppenheimer Master Event-Linked Bond Fund, LLC		4,827,322		—		—		4,827,322
Oppenheimer Master Loan Fund, LLC		29,466,809		—		4,853,506		24,613,303
Oppenheimer Short Duration Fund, Cl. Y		1,001,329		3,978		—		1,005,307


	Value		Income			Realized Loss
Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd.^b	$	1,457,156	$	—		$	—
Oppenheimer Institutional Money Market Fund, Cl. E		44,544,249		39,276			—
Oppenheimer Master Event-Linked Bond Fund, LLC		56,111,439		2,371,815	^c		2,182,980	^c
Oppenheimer Master Loan Fund, LLC		307,186,686		11,792,831	^d		2,163,697	^d
Oppenheimer Short Duration Fund, Cl. Y		10,073,178		34,665			—

	$	419,372,708	$	14,238,587		$	4,346,677

a. December 30, 2011 represents the last business day of the Fund’s 2011 reporting period. See Note 1 of the accompanying Notes.

b. Investment in a wholly-owned subsidiary. See Note 1 of the accompanying Notes and individual financial statements of the entity included herein.

c. Represents the amount allocated to the Fund from Oppenheimer Master Event-Linked Bond Fund, LLC.

d. Represents the amount allocated to the Fund from Oppenheimer Master Loan Fund, LLC.

2. Non-income producing security.

3. 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 $393,108,205 or 16.56% of the Fund’s net assets as of June 29, 2012.

4. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and/or principal payments. The rate shown is the original contractual interest rate. See Note 1 of the accompanying Notes.

5. Restricted security. The aggregate value of restricted securities as of June 29, 2012 was $80,037,469, which represents 3.37% of the Fund’s net assets. See Note 7 of the accompanying Notes. Information concerning restricted securities is as follows:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation (Depreciation)
Akbank TAS, 5.125% Sr. Unsec. Nts., 7/22/15		7/15/10-12/16/11	$	2,051,194	$	2,114,147	$	62,953
Altegrity, Inc., 10.50% Sr. Unsec. Sub. Nts., 11/1/15		2/17/10		937,224		910,425		(26,799	)
Arco Capital Corp. Ltd.		2/27/07		10,359,570		1,035,957		(9,323,613	)
Banco BMG SA, 9.15% Nts., 1/15/16		12/15/05-4/3/12		1,307,666		1,193,160		(114,506	)
BCAP LLC Trust, Mtg. Pass-Through Certificates, Series 2012-RR6, Cl. 1A5, 2.243%, 11/1/36		6/14/12		552,300		552,300		—
Caisse D’Amortissement de la Dette Sociale Bonds,1.625%, 7/6/15		6/26/12		638,931		639,834		903
CIT Group, Inc., 7% Sec. Bonds, 5/2/17		8/19/10-2/1/12		1,466,478		1,490,378		23,900
Citigroup Global Markets Holdings, Inc., Colombia (Republic of) Credit Linked Bonds, 11.25%, 10/25/18		12/9/08		1,379,053		2,268,663		889,610
Citigroup Global Markets Holdings, Inc., Colombia (Republic of) Credit Linked Nts., Series 2, 10%, 7/25/24		3/28/12		2,581,733		2,541,339		(40,394	)
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, Series 128, 3.006%, 5/6/25		10/8/10		1,215,106		1,269,033		53,927
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.343%, 5/6/25		4/16/09		1,239,301		1,331,558		92,257
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.266%, 5/6/25		8/18/09		1,326,365		1,416,615		90,250
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.239%, 5/6/25		9/25/09		1,663,739		1,773,245		109,506
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.187%, 5/6/25		12/17/09		1,463,845		1,553,641		89,796
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.134%, 5/6/25		3/30/10		1,180,936		1,247,823		66,887
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.10%, 5/6/25		5/18/10		1,325,410		1,395,972		70,562
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 3.061%, 5/6/25		7/16/10		1,540,321		1,616,944		76,623
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Nts., 12.762%, 12/31/17		9/19/07		6,966,017		9,020,911		2,054,894
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2A, 8.265%, 5/22/15		5/21/08		67,269		50,210		(17,059	)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2B, 8.265%, 5/22/15		6/12/08		117,680		87,844		(29,836	)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2C, 8.265%, 5/22/15		6/18/08		1,785,486		1,324,467		(461,019	)

33	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation (Depreciation)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2D, 8.265%, 5/22/15		7/8/08	$	130,028	$	96,525	$	(33,503	)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2E, 8.265%, 5/22/15		7/15/08		94,626		70,127		(24,499	)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2F, 8.265%, 5/22/15		8/8/08		61,263		44,787		(16,476	)
Deutsche Bank AG, Opic Reforma I Credit Linked Nts., Cl. 2G, 8.265%, 5/22/15		8/22/08		11,304		8,248		(3,056	)
Embarcadero Aircraft Securitization Trust, Airplane Receivable Nts., Series 2000-A, Cl. B, 0.656%, 8/15/25		8/17/00		1,820,063		—		(1,820,063	)
FDIC Trust, Commerical Mtg. Pass-Through Certificates, Series 2012-C1, Cl. A, 0.841%, 5/1/35		5/10/12		1,556,650		1,556,457		(193	)
Goldman Sachs Capital Markets LP, Colombia (Republic of) Credit Linked Nts., 10.476%, 2/8/37		1/18/07		6,937,545		2,941,276		(3,996,269	)
Hallertau SPC Credit Linked Nts., Series 2007-01, 2.787%, 12/20/17		12/13/07		6,250,000		5,385,000		(865,000	)
Hallertau SPC Credit Linked Nts., Series 2008-01, 9.888%, 8/2/10		4/18/08-10/1/08		7,188,001		713,846		(6,474,155	)
Halyk Savings Bank of Kazakhstan JSC, 9.25% Sr. Nts., 10/16/13		4/9/08-4/3/12		8,404,811		8,752,111		347,300
Ice 1 Em CLO Ltd./Ice 1 Em CLO Corp., Sr. Sec. Sub. Term Nts., Series 2007-1A, Cl. B, 2.456%, 8/15/22		11/6/07		7,026,708		5,351,600		(1,675,108	)
Ice 1 Em CLO Ltd./Ice 1 Em CLO Corp., Sr. Sec. Sub. Term Nts., Series 2007-1A, Cl. C, 3.756%, 8/15/22		6/8/07		5,270,000		3,372,800		(1,897,200	)
Ice 1 Em CLO Ltd./Ice 1 Em CLO Corp., Sr. Sec. Sub. Term Nts., Series 2007-1A, Cl. D, 5.756%, 8/15/22		6/8/07		5,270,000		3,267,400		(2,002,600	)
IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24		8/3/06-7/24/07		3,849,823		4,348,566		498,743
JPMorgan Chase & Co., Colombia (Republic of) Credit Linked Nts., 11%, 7/28/20		8/24/10		894,433		922,357		27,924
JPMorgan Hipotecaria su Casita, 8.066% Sec. Nts., 8/26/35		3/21/07		526,714		52,252		(474,462	)
Merrill Lynch, Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16		10/20/06		762,393		1,061,610		299,217
NC Finance Trust, Collateralized Mtg. Obligation Pass-Through Certificates, Series 1999-I, Cl. ECFD, 3.405%, 1/25/29		8/10/10		66,025		5,840		(60,185	)
Odebrecht Finance Ltd., 5.125% Sr. Nts., 6/26/22		6/21/12		1,774,665		1,771,613		(3,052	)
Odebrecht Finance Ltd., 7.125% Sr. Nts., 6/26/42		6/21/12		1,314,695		1,335,000		20,305
Premier Cruise Ltd., 11% Sr. Nts., 3/15/08		3/6/98		242,675		—		(242,675	)
Santander Drive Auto Receivables Trust 2011-S1A, Automobile Receivables Nts., Series 2011-S1A, Cl. D, 3.10%, 5/15/17		2/4/11-4/14/11		173,457		173,696		239
Tengizchevroil LLP, 6.124% Nts., 11/15/14		4/29/05-3/16/10		677,254		691,225		13,971
ViaSat, Inc., 6.875% Sr. Unsec. Unsub. Nts., 6/15/20		2/22/12		918,332		926,695		8,363
Vnesheconombank Via VEB Finance plc Sr. Unsec. Nts., 6.025%, 7/15/20		6/26/12		2,335,000		2,353,972		18,972

			$	104,722,089	$	80,037,469	$	(24,684,620	)

6. Represents the current interest rate for a variable or increasing rate security.

7. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after June 29, 2012. See Note 1 of the accompanying Notes.

8. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans or other receivables. 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 or asset-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. These securities amount to $10,211,594 or 0.43% of the Fund’s net assets as of June 29, 2012.

9. The current amortization rate of the security’s cost basis exceeds the future interest payments currently estimated to be received. Both the amortization rate and interest payments are contingent on future mortgage pre-payment speeds and are therefore subject to change.

34	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

10. This security is accruing partial income at an anticipated effective rate based on expected interest and/or principal payments. The rate shown is the original contractual interest rate.

11. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements under certain derivative contracts. The aggregate market value of such securities is $3,215,701. See Note 6 of the accompanying Notes.

12. Zero coupon bond reflects effective yield on the date of purchase.

13. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $7,310,940. See Note 6 of the accompanying Notes.

14. Denotes an inflation-indexed security: coupon or principal are indexed to a consumer price index.

15. Interest or dividend is paid-in-kind, when applicable.

16. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security.

17. Rate shown is the 7-day yield as of June 29, 2012.

Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:


Geographic Holdings	Value		Percent
United States	$	1,619,780,284		60.4	%
Mexico		139,621,754		5.2
Turkey		123,972,430		4.6
Brazil		115,895,643		4.3
Russia		101,350,200		3.8
South Africa		71,856,542		2.7
Hungary		48,621,240		1.8
Japan		48,075,460		1.8
Peru		46,663,010		1.7
Colombia		37,458,343		1.4
Indonesia		33,245,690		1.2
Poland		24,626,788		0.9
Venezuela		24,174,201		0.9
Kazakhstan		19,629,436		0.7
Canada		15,501,023		0.6
United Kingdom		15,012,883		0.6
Australia		14,433,251		0.5
Italy		13,065,096		0.5
Supranational		12,979,481		0.5
France		12,495,497		0.5
The Netherlands		12,034,134		0.5
Israel		11,435,463		0.4
Philippines		10,622,239		0.4
Sweden		7,778,839		0.3
Chile		7,252,687		0.3
Uruguay		7,135,953		0.3
Ukraine		6,940,678		0.3
Romania		5,790,994		0.2
Germany		5,666,372		0.2
Panama		5,556,930		0.2
Qatar		5,135,235		0.2
Spain		4,193,969		0.2
Korea, Republic of South		4,061,173		0.2
India		3,617,363		0.1
Luxembourg		3,600,405		0.1
Malaysia		3,522,776		0.1
Trinidad & Tobago		3,493,113		0.1
Belgium		3,423,480		0.1

35	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Geographic Holdings Continued	Value		Percent
Argentina	$	3,067,285		0.1	%
Lithuanua		2,866,131		0.1
Sri Lanka		2,808,443		0.1
Latvia		2,784,150		0.1
Nigeria		2,577,067		0.1
Croatia		2,566,762		0.1
Slovakia		2,549,250		0.1
Dominican Republic		2,413,709		0.1
Norway		1,681,406		0.1
Austria		1,454,911		0.1
Ghana		1,396,188		0.1
European Union		1,192,664		0.1
Denmark		1,144,480		—
Switzerland		880,894		—
Finland		841,957		—
Ivory Coast		637,500		—
Singapore		577,411		—

Total	$	2,681,160,263		100.0	%


Foreign Currency Exchange Contracts as of June 29, 2012 are as follows:
Counterparty/ Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
Bank of America:
Chilean Peso (CLP)		Sell		440,900	CLP		7/17/12	$	878,198	$	20,036	$	3,260
Colombian Peso (COP)		Buy		2,222,000	COP		8/24/12		1,233,608		8,353		—
Colombian Peso (COP)		Sell		19,442,500	COP		7/16/12-8/24/12		10,843,751		—		157,257
Euro (EUR)		Sell		19,589	EUR		7/17/12-7/23/12		24,794,486		9,158		18,731
Indian Rupee (INR)		Sell		10,250	INR		7/17/12		182,901		—		744
Indonesia Rupiah (IDR)		Sell		72,909,000	IDR		7/16/12		7,745,998		123,228		44,686
Malaysian Ringgit (MYR)		Sell		380	MYR		7/17/12		119,523		1,323		—
Mexican Nuevo Peso (MXN)		Sell		70	MXN		7/2/12		5,280		—		120
Peruvian New Sol (PEN)		Buy		4,330	PEN		7/10/12		1,623,093		—		8,889
Philippines Peso (PHP)		Sell		113,000	PHP		7/17/12		2,678,204		—		46,625
Polish Zloty (PLZ)		Sell		25,070	PLZ		8/6/12-8/23/12		7,488,115		—		500,681
South African Rand (ZAR)		Buy		24,412	ZAR		7/3/12-7/20/12		2,978,457		16,773		84,859
South African Rand (ZAR)		Sell		124,500	ZAR		7/11/12		15,203,526		460,857		17,092
Swiss Franc (CHF)		Buy		530	CHF		8/23/12		559,171		—		5,122

											639,728		888,066
Barclay’s Capital:
Australian Dollar (AUD)		Sell		1,040	AUD		7/23/12		1,062,049		—		7,051
British Pound Sterling (GBP)		Sell		2,745	GBP		7/16/12		4,298,928		68,544		—
Euro (EUR)		Buy		2,165	EUR		7/23/12		2,740,318		2,474		74,823
Euro (EUR)		Sell		13,750	EUR		7/25/12		17,404,146		645,411		—
Hungarian Forint (HUF)		Buy		723,271	HUF		7/2/12-10/24/12		3,188,217		75,322		—
Israeli Shekel (ILS)		Buy		2,030	ILS		4/2/13		515,632		—		13,980
Israeli Shekel (ILS)		Sell		2,030	ILS		4/2/13		515,632		20,285		—
Japanese Yen (JPY)		Sell		1,859,000	JPY		7/17/12		23,262,227		367,377		—
Malaysian Ringgit (MYR)		Sell		200	MYR		9/20/12		62,668		—		285
Mexican Nuevo Peso (MXN)		Sell		33,700	MXN		10/18/12		2,499,825		7,149		—
Norwegian Krone (NOK)		Sell		80	NOK		9/20/12		13,407		—		97

36	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Foreign Currency Exchange Contracts: Continued
Counterparty/ Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
Barclay’s Capital: Continued
Peruvian New Sol (PEN)		Sell		7,320	PEN		7/10/12	$	2,743,889	$	—	$	4,368
Polish Zloty (PLZ)		Buy		246	PLZ		7/17/12		73,678		2,099		—
Russian Ruble (RUR)		Buy		26,560	RUR		7/17/12-7/19/12		817,315		10,099		8,588
Russian Ruble (RUR)		Sell		637,976	RUR		7/16/12-11/30/12		19,524,342		990,049		192,460
South African Rand (ZAR)		Sell		299,640	ZAR		7/20/12-9/12/12		36,382,175		113,143		655,514
Swedish Krona (SEK)		Sell		140	SEK		9/20/12		20,178		—		405

											2,301,952		957,571
Chase Manhattan Bank:
Nigerian Naira (NGN)		Sell		138,473	NGN		7/3/12		850,834		—		835
Russian Ruble (RUR)		Sell		42,623	RUR		7/6/12		1,316,038		—		29,242

											—		30,077
Citigroup:
Australian Dollar (AUD)		Sell		9,770	AUD		8/23/12		9,946,849		—		396,466
Canadian Dollar (CAD)		Sell		770	CAD		8/23/12		755,366		—		3,075
Chilean Peso (CLP)		Buy		993,900	CLP		7/12/12-9/20/12		1,980,707		10,515		33
Colombian Peso (COP)		Buy		2,020,000	COP		7/17/12-8/24/12		1,125,090		12,229		5,227
Czech Koruna (CZK)		Buy		10,700	CZK		8/23/12		530,508		10,372		—
Hungarian Forint (HUF)		Sell		330,000	HUF		9/5/12		1,447,383		—		85,061
Indian Rupee (INR)		Buy		2,000	INR		9/20/12		35,229		—		312
Mexican Nuevo Peso (MXN)		Buy		9,200	MXN		9/20/12-10/18/12		682,519		855		21,085
Mexican Nuevo Peso (MXN)		Sell		452,260	MXN		9/20/12-12/13/12		33,479,260		518,792		868,487
New Taiwan Dollar (TWD)		Buy		2,990	TWD		7/17/12		100,062		—		535
New Zealand Dollar (NZD)		Sell		4	NZD		7/17/12		3,198		—		33
Norwegian Krone (NOK)		Sell		1,240	NOK		9/20/12		207,808		—		2,652
Peruvian New Sol (PEN)		Sell		8,940	PEN		7/10/12		3,351,143		—		7,837
Singapore Dollar (SGD)		Sell		20	SGD		9/20/12		15,790		—		37
South Korean Won (KRW)		Buy		36,000	KRW		9/20/12		31,260		—		146
South Korean Won (KRW)		Sell		127,600	KRW		7/17/12-9/20/12		110,881		146		1,487
Swedish Krona (SEK)		Buy		140	SEK		7/17/12		20,226		590		—
Swiss Franc (CHF)		Sell		970	CHF		7/23/12		1,022,520		—		947

											553,499		1,393,420
Credit Suisse:
British Pound Sterling (GBP)		Sell		1,380	GBP		8/23/12		2,160,984		14,162		8,769
Hong Kong Dollar (HKD)		Buy		892	HKD		7/3/12		114,954		—		13
Mexican Nuevo Peso (MXN)		Buy		3,480	MXN		7/17/12		260,428		—		2,835
New Turkish Lira (TRY)		Sell		3,240	TRY		7/17/13		1,669,988		—		100,165
Peruvian New Sol (PEN)		Sell		1,690	PEN		7/10/12		633,494		3,041		—
Russian Ruble (RUR)		Buy		5,576	RUR		7/17/12		171,634		—		16,252
Russian Ruble (RUR)		Sell		6,760	RUR		7/17/12		208,079		18,107		—
South African Rand (ZAR)		Sell		1,580	ZAR		7/17/12		192,765		—		8,218
Swedish Krona (SEK)		Sell		43,020	SEK		7/17/12-8/23/12		6,206,205		1,721		161,835

											37,031		298,087
Deutsche Bank Securities, Inc.:
Australian Dollar (AUD)		Sell		745	AUD		7/16/12		761,316		7,355		5,686
Canadian Dollar (CAD)		Sell		375	CAD		9/20/12		367,648		—		3,707
Hungarian Forint (HUF)		Sell		2,561,000	HUF		7/16/12-8/6/12		11,293,522		—		617,177
Indian Rupee (INR)		Buy		10,250	INR		7/17/12		182,901		—		11,818
Malaysian Ringgit (MYR)		Buy		35,400	MYR		8/10/12		11,116,639		—		469,405

37	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Foreign Currency Exchange Contracts: Continued
Counterparty/ Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
Deutsche Bank Securities, Inc.: Continued
New Turkish Lira (TRY)		Sell		7,555	TRY		7/25/12	$	4,153,314	$	5,202	$	—
Russian Ruble (RUR)		Sell		72,370	RUR		7/19/12		2,226,790		197,465		—
South Korean Won (KRW)		Buy		10,555,800	KRW		7/17/12-9/19/12		9,166,953		196,516		—
Swedish Krona (SEK)		Sell		5,730	SEK		7/16/12		827,836		16,237		4,859

											422,775		1,112,652
Goldman Sachs & Co.:
Australian Dollar (AUD)		Buy		745	AUD		8/23/12		758,485		29,648		—
Canadian Dollar (CAD)		Sell		1,515	CAD		7/16/12		1,487,529		28,352		2,239
Japanese Yen (JPY)		Buy		1,178,000	JPY		8/23/12		14,748,434		—		102,089
Mexican Nuevo Peso (MXN)		Sell		881,000	MXN		7/16/12-12/20/12		65,312,203		1,235,375		907,425
South African Rand (ZAR)		Buy		34	ZAR		7/17/12		4,148		—		152

											1,293,375		1,011,905
HSBC:
New Turkish Lira (TRY)		Buy		3,240	TRY		7/17/13		1,669,988		6,316		—
New Turkish Lira (TRY)		Sell		91,370	TRY		11/7/12		49,205,919		—		187,679

											6,316		187,679
JP Morgan Chase:
Australian Dollar (AUD)		Buy		155	AUD		7/17/12		158,379		6,666		—
Australian Dollar (AUD)		Sell		6	AUD		7/17/12		6,131		19		—
British Pound Sterling (GBP)		Sell		118	GBP		7/17/12-9/20/12		184,782		3,215		336
Canadian Dollar (CAD)		Buy		645	CAD		7/17/12		633,290		—		14,482
Canadian Dollar (CAD)		Sell		30	CAD		7/17/12		29,455		456		—
Euro (EUR)		Buy		625	EUR		7/17/12-8/17/12		791,216		—		36,115
Euro (EUR)		Sell		38,256	EUR		7/16/12-9/28/12		48,430,604		1,512,374		123,820
Hungarian Forint (HUF)		Sell		3,962,000	HUF		8/22/12-2/12/13		17,093,832		35,018		814,705
Indian Rupee (INR)		Buy		2,000	INR		9/20/12		35,229		106		—
Indian Rupee (INR)		Sell		2,000	INR		9/20/12		35,229		—		885
Indonesia Rupiah (IDR)		Buy		61,339,000	IDR		7/9/12		6,522,851		—		57,881
Malaysian Ringgit (MYR)		Buy		67,380	MYR		7/17/12-9/25/12		21,108,090		31,689		1,940
Mexican Nuevo Peso (MXN)		Buy		10,800	MXN		11/9/12		799,576		13,549		—
Mexican Nuevo Peso (MXN)		Sell		84,587	MXN		7/2/12-9/12/12		6,317,235		1,775		235,726
New Taiwan Dollar (TWD)		Sell		5,990	TWD		7/17/12-9/20/12		200,531		1,480		188
New Turkish Lira (TRY)		Sell		1,560	TRY		7/25/12		857,600		783		—
New Zealand Dollar (NZD)		Buy		135	NZD		7/17/12		107,936		5,964		—
Peruvian New Sol (PEN)		Sell		11,430	PEN		7/16/12		4,282,349		125		11,921
Russian Ruble (RUR)		Buy		58,200	RUR		7/19/12		1,790,786		—		124,318
Singapore Dollar (SGD)		Buy		18,640	SGD		7/17/12		14,714,756		—		237,915
South Korean Won (KRW)		Buy		10,796,000	KRW		7/17/12		9,414,544		192,426		—
South Korean Won (KRW)		Sell		7,956,200	KRW		7/16/12-7/17/12		6,938,614		18,737		36,221

											1,824,382		1,696,453
Morgan Stanley & Co., Inc.:
Australian Dollar (AUD)		Sell		220	AUD		9/20/12		223,440		—		3,931
Brazilian Real (BRR)		Sell		30,775	BRR		8/2/12		15,212,894		—		473,203
Canadian Dollar (CAD)		Sell		4,465	CAD		7/23/12-9/20/12		4,382,961		—		6,450
Euro (EUR)		Buy		12,479	EUR		7/2/12-8/23/12		15,800,118		27,919		93,817
Euro (EUR)		Sell		383	EUR		7/5/12		484,514		12		201
Japanese Yen (JPY)		Sell		500,000	JPY		7/23/12		6,257,204		74,218		—

38	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Foreign Currency Exchange Contracts: Continued
Counterparty/ Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
Morgan Stanley & Co., Inc.: Continued
New Zealand Dollar (NZD)		Buy		80	NZD		9/20/12	$	63,678	$	—	$	188
New Zealand Dollar (NZD)		Sell		1,210	NZD		9/20/12		963,127		—		2,641
Singapore Dollar (SGD)		Buy		3,520	SGD		7/17/12		2,778,752		—		40,744
South African Rand (ZAR)		Buy		6,336	ZAR		7/5/12-7/17/12		774,074		6,415		466
South African Rand (ZAR)		Sell		4,760	ZAR		7/20/12		580,464		493		—

											109,057		621,641
Nomura Securities:
Australian Dollar (AUD)		Buy		1,005	AUD		9/20/12		1,020,716		4,249		41
Australian Dollar (AUD)		Sell		95	AUD		9/20/12		96,486		—		1,696
Brazilian Real (BRR)		Sell		66,835	BRR		8/2/12		33,038,303		—		975,458
British Pound Sterling (GBP)		Sell		80	GBP		7/3/12-9/20/12		125,467		514		2
Canadian Dollar (CAD)		Sell		394	CAD		7/17/12		386,847		12,942		—
Euro (EUR)		Buy		136	EUR		7/3/12		172,698		21		—
Euro (EUR)		Sell		500	EUR		9/20/12		633,261		41		3,344
Indonesia Rupiah (IDR)		Buy		3,690,000	IDR		7/9/12		392,398		—		7,949
Japanese Yen (JPY)		Buy		149,000	JPY		8/23/12		1,865,464		—		21,731
Japanese Yen (JPY)		Sell		25,000	JPY		9/20/12		313,116		2,693		—
Malaysian Ringgit (MYR)		Buy		280	MYR		7/17/12		88,070		—		2,662
Malaysian Ringgit (MYR)		Sell		50,805	MYR		7/16/12		15,981,090		449,058		—
Norwegian Krone (NOK)		Buy		2,700	NOK		7/17/12		453,600		572		—
Norwegian Krone (NOK)		Sell		2,660	NOK		7/17/12-9/20/12		445,946		2,056		703
Singapore Dollar (SGD)		Sell		30	SGD		9/20/12		23,685		—		328

											472,146		1,013,914
RBS Greenwich Capital:
Australian Dollar (AUD)		Buy		132	AUD		7/17/12		134,878		—		1,093
Australian Dollar (AUD)		Sell		32	AUD		7/17/12		32,698		—		321
British Pound Sterling (GBP)		Buy		58	GBP		7/17/12		90,833		515		—
British Pound Sterling (GBP)		Sell		2,595	GBP		7/23/12		4,063,954		9,620		—
Canadian Dollar (CAD)		Buy		30	CAD		7/17/12		29,455		97		—
Canadian Dollar (CAD)		Sell		251	CAD		7/17/12		246,443		4,560		—
Czech Koruna (CZK)		Sell		10,700	CZK		8/23/12		530,508		13,758		—
Hungarian Forint (HUF)		Sell		1,860,000	HUF		12/27/12		8,044,291		—		457,651
Norwegian Krone (NOK)		Buy		400	NOK		7/17/12		67,200		414		777
Norwegian Krone (NOK)		Sell		2,700	NOK		7/17/12		453,600		10,495		—
Polish Zloty (PLZ)		Sell		23,476	PLZ		7/16/12-7/17/12		7,032,056		283,371		34,922
Singapore Dollar (SGD)		Sell		210	SGD		7/17/12		165,778		258		539

											323,088		495,303
Standard Chartered Bank:
Colombian Peso (COP)		Sell		608,500	COP		7/17/12		339,991		—		1,747
Malaysian Ringgit (MYR)		Buy		35,400	MYR		7/9/12		11,140,809		—		460,043

											—		461,790
State Street:
New Turkish Lira (TRY)		Sell		22,000	TRY		7/16/12		12,119,712		—		145,738
Singapore Dollar (SGD)		Sell		7,190	SGD		7/16/12		5,675,918		51,477		10,874
South African Rand (ZAR)		Buy		520	ZAR		9/20/12		62,833		—		66
South African Rand (ZAR)		Sell		51,524	ZAR		7/16/12-7/17/12		6,287,062		130,750		22,089

											182,227		178,767

39	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Foreign Currency Exchange Contracts: Continued
Counterparty/ Contract Description	Buy/Sell		Contract Amount (000’s)			Expiration Dates		Value		Unrealized Appreciation		Unrealized Depreciation
UBS Investment Bank
Indonesia Rupiah (IDR)		Buy		22,828,000	IDR		7/9/12	$	2,427,552		$ —	$	40,340
Westpac:
Australian Dollar (AUD)		Buy		38	AUD		7/17/12		38,828		820		—
Australian Dollar (AUD)		Sell		287	AUD		7/17/12		293,257		2,267		—
New Zealand Dollar (NZD)		Sell		131	NZD		7/17/12		104,738		—		2,389

											3,087		2,389

Total unrealized appreciation and depreciation											$8,168,663		$10,390,054


Futures Contracts as of June 29, 2012 are as follows:
Contract Description	Buy/Sell		Number of Contracts		Expiration Date		Value		Unrealized Appreciation (Depreciation)
Australian (Commonwealth of) Bonds, 10 yr.		Sell		21		9/17/12	$	2,696,525	$	9,072
Australian Treasury Bonds, 3 yr.		Sell		130		9/17/12		14,688,080		14,892
Australian Treasury Bonds, 10 yr.		Buy		3		9/17/12		385,218		(91	)
CBOE Volatility Index		Sell		60		8/21/12		1,317,000		119,315
Euro Buxl 30 yr. Bonds		Buy		18		9/6/12		2,982,688		(63,489	)
Euro OAT		Buy		97		9/6/12		15,718,616		(125,650	)
Euro-Bundesobligation		Buy		12		9/6/12		2,139,711		3,129
FTSE 100 Index		Sell		24		9/21/12		2,075,958		(49,488	)
NIKKEI 225 Index		Sell		45		9/13/12		5,072,246		(383,443	)
SPI 200 Index		Sell		20		9/20/12		2,076,169		28,720
Standard & Poor’s 500 E-Mini Index		Sell		662		9/21/12		44,896,840		(1,140,070	)
Standard & Poor’s/Toronto Stock Exchange 60 Index		Sell		11		9/20/12		1,429,211		(26,247	)
U.S. Treasury Long Bonds		Buy		591		9/19/12		87,449,531		39,752
U.S. Treasury Long Bonds		Sell		26		9/19/12		3,847,188		32,461
U.S. Treasury Nts., 2 yr.		Sell		793		9/28/12		174,608,688		109,752
U.S. Treasury Nts., 5 yr.		Sell		118		9/28/12		14,628,313		(27,370	)
U.S. Treasury Nts., 5 yr.		Buy		153		9/28/12		18,967,219		(15,787	)
U.S. Treasury Nts., 10 yr.		Buy		394		9/19/12		52,549,750		(84,055	)
U.S. Treasury Nts., 10 yr.		Sell		781		9/19/12		104,165,875		43,452
U.S. Treasury Ultra Bonds		Buy		197		9/19/12		32,868,219		497,031

									$	(1,018,114	)


Written Options as of June 29, 2012 are as follows:
Description	Type		Numberof Contracts		Exercise Price		Expiration Date		Premiums Received		Value			Unrealized Appreciation/ (Depreciation)
Australian Dollar (AUD)		Call		21,900,000		1AUD per 1.050USD		8/28/12	$	89,106	$	(105,701	)	$	(16,595	)
Australian Dollar (AUD)		Call		21,800,000		1AUD per 1.050USD		8/27/12		116,075		(103,444	)		12,631
Australian Dollar (AUD)		Call		6,060,000		1AUD per 1.050USD		8/31/12		35,603		(30,689	)		4,914
Australian Dollar (AUD)		Call		6,060,000		1AUD per 1.050USD		8/31/12		28,824		(28,824	)		—
Euro (EUR) FX Futures, 9/17/12		Call		111		1.340		7/9/12		30,496		(694	)		29,802
Euro (EUR) FX Futures, 9/17/12		Call		57		1.370		9/10/12		18,932		(4,988	)		13,944
Euro (EUR) FX Futures, 9/17/12		Call		41		1.320		7/9/12		5,829		(513	)		5,316
Euro (EUR) FX Futures, 9/17/12		Call		41		1.305		7/9/12		4,548		(1,538	)		3,010

40	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Written Options: Continued
Description	Type		Number of Contracts		Exercise Price		Expiration Date		Premiums Received		Value			Unrealized Appreciation/ (Depreciation)
Euro (EUR) FX Futures, 9/17/12		Put		496	$	1.215		7/9/12	$	64,997	$	(9,300	)	$	55,697
Euro (EUR) FX Futures, 9/17/12		Put		414		1.220		7/9/12		223,568		(10,350	)		213,218
Euro (EUR) FX Futures, 9/17/12		Put		283		1.175		7/9/12		67,047		(1,769	)		65,278
Euro (EUR) FX Futures, 9/17/12		Put		281		1.180		7/9/12		29,595		(1,756	)		27,839
Euro (EUR) FX Futures, 9/17/12		Put		134		1.165		7/9/12		15,555		(838	)		14,717
Euro (EUR) FX Futures, 9/17/12		Put		113		1.100		9/10/12		57,873		(6,356	)		51,517
Euro (EUR) FX Futures, 9/17/12		Put		105		1.155		7/9/12		15,271		(656	)		14,615
Euro (EUR) FX Futures, 9/17/12		Put		89		1.210		7/9/12		9,094		(1,669	)		7,425
Euro (EUR) FX Futures, 9/17/12		Put		23		1.240		7/9/12		42,514		(2,588	)		39,926
Euro (EUR) FX Futures, 9/17/12		Put		21		1.120		7/9/12		2,058		(131	)		1,927
Euro (EUR) FX Futures, 9/17/12		Put		9		1.180		9/10/12		19,448		(3,600	)		15,848
Japanese Yen (JPY)		Call		366,000,460		1USD per 72JPY		5/31/13		85,817		(54,713	)		31,104
Japanese Yen (JPY)		Call		207,905,000		1USD per 82JPY		9/20/12		53,624		(87,056	)		(33,432	)
Japanese Yen (JPY)		Put		204,000,000		1USD per 90JPY		3/29/13		38,647		(12,783	)		25,864
Japanese Yen (JPY)		Put		482,917,273		1USD per 95JPY		5/31/13		22,217		(18,732	)		3,485
Japanese Yen (JPY) Futures, 9/17/12		Call		123		132.500		7/9/12		13,644		(769	)		12,875
Japanese Yen (JPY) Futures, 9/17/12		Call		43		135.000		9/10/12		23,585		(4,838	)		18,747
Japanese Yen (JPY) Futures, 9/17/12		Call		41		138.000		9/10/12		11,979		(1,538	)		10,441
Japanese Yen (JPY) Futures, 9/17/12		Call		18		129.500		7/9/12		422		(225	)		197
Japanese Yen (JPY) Futures, 9/17/12		Put		114		112.000		9/10/12		7,028		(4,988	)		2,040
Japanese Yen (JPY) Futures, 9/17/12		Put		113		110.000		9/10/12		6,342		(2,825	)		3,517
Japanese Yen (JPY) Futures, 9/17/12		Put		112		122.000		7/9/12		10,133		(2,800	)		7,333
Japanese Yen (JPY) Futures, 9/17/12		Put		106		121.000		7/9/12		5,725		(1,325	)		4,400
Japanese Yen (JPY) Futures, 9/17/12		Put		89		121.500		7/9/12		3,810		(1,669	)		2,141
Japanese Yen (JPY) Futures, 9/17/12		Put		61		120.500		7/9/12		692		(381	)		311
Japanese Yen (JPY) Futures, 9/17/12		Put		41		122.500		7/9/12		6,086		(1,794	)		4,292
Mexican Nuevo Peso (MXN)		Put		216,500,000		1USD per 14.94MXN		11/13/12		275,335		(168,004	)		107,331
Mexican Nuevo Peso (MXN)		Put		211,055,000		1USD per 16.455MXN		11/30/12		214,839		(58,179	)		156,660
Mexican Nuevo Peso (MXN)		Put		214,500,000		1USD per 14.800MXN		11/9/12		272,618		(178,580	)		94,038
Russian Ruble (RUR)		Put		375,200,000		1USD per 38RUR		11/29/12		165,878		(90,025	)		75,853
U.S. Treasury Nts., 10 yr. Futures, 9/19/12		Put		132		129.000		8/27/12		22,505		(12,375	)		10,130

									$	2,117,359	$	(1,019,003	)	$	1,098,356


Credit Default Swap Contracts as of June 29, 2012 are as follows:
Reference Entity/ Swap Counterparty	Buy/Sell Credit Protection		Notional Amount (000’s)		Pay/ Receive Fixed Rate			Termination Date		Upfront Payment Received/ (Paid)			Value			Unrealized Appreciation (Depreciation)
Barrick Gold Corp.
Barclays Bank plc		Buy	$	4,720		1.0	%		6/20/17	$	(55,255	)	$	144,702		$	89,447

		Total		4,720							(55,255	)		144,702			89,447
Brazil (Federative Republic of):
Deutsche Bank AG		Sell		3,720		1.0			6/20/17		33,143			(102,394	)		(69,251	)
Deutsche Bank AG		Sell		670		1.0			6/20/17		17,542			(18,442	)		(900	)

		Total		4,390							50,685			(120,836	)		(70,151	)
CDX Emerging Market Index, Series 17
Deutsche Bank AG		Buy		5,260		5.0			6/20/17		685,261			(518,344	)		166,917

		Total		5,260							685,261			(518,344	)		166,917

41	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Credit Default Swap Contracts: Continued
Reference Entity/ Swap Counterparty	Buy/Sell Credit Protection		Notional Amount (000’s)			Pay/ Receive Fixed Rate		Termination Date		Upfront Payment Received/ (Paid)			Value			Unrealized Appreciation (Depreciation)
Dell, Inc.
Citibank NA		Buy	$	4,660			1.0%		6/20/17	$	(239,162	)	$	219,322		$	(19,840	)

		Total		4,660							(239,162	)		219,322			(19,840	)
Expedia, Inc.
Deutsche Bank AG		Sell		4,780			1.0		6/20/17		180,856			(171,804	)		9,052

		Total		4,780							180,856			(171,804	)		9,052
Freeport-McMoRan Copper & Gold, Inc.
JPMorgan Chase Bank NA		Buy		4,780			1.0		6/20/17		(123,734	)		228,845			105,111

		Total		4,780							(123,734	)		228,845			105,111
Gap, Inc. (The)
Bank of America NA		Sell		4,720			1.0		6/20/17		246,747			(257,990	)		(11,243	)

		Total		4,720							246,747			(257,990	)		(11,243	)
Halliburton Co.
Credit Suisse International		Buy		4,720			1.0		6/20/17		78,820			(33,164	)		45,656

		Total		4,720							78,820			(33,164	)		45,656
Hungary (Republic of):
HSBC Bank USA NA		Sell		1,640			1.0		6/20/17		293,847			(278,995	)		14,852
UBS AG		Sell		1,640			1.0		6/20/17		299,906			(278,995	)		20,911

		Total		3,280							593,753			(557,990	)		35,763
Istanbul Bond Co. SA for Finansbank AS
Morgan Stanley Capital Services, Inc.		Sell		3,100			1.3		3/24/13		—			(54,629	)		(54,629	)

		Total		3,100							—			(54,629	)		(54,629	)
iTraxx Europe Crossover Index Series 17 Version 1
JPMorgan Chase Bank NA		Buy		895	EUR		5.0		6/20/17		(68,344	)		68,344			—

		Total		895	EUR						(68,344	)		68,344			—
M.D.C. Holdings, Inc.
Deutsche Bank AG		Sell		4,660			1.0		6/20/17		214,562			(152,405	)		62,157

		Total		4,660							214,562			(152,405	)		62,157
Nabors Industries, Inc.
Credit Suisse International		Buy		4,660			1.0		6/20/17		(194,125	)		234,764			40,639

		Total		4,660							(194,125	)		234,764			40,639
Peru (Republic of)
Deutsche Bank AG		Buy		2,000			1.0		6/20/17		(15,844	)		58,578			42,734

		Total		2,000							(15,844	)		58,578			42,734
Sherwin-Williams Co. (The)
Deutsche Bank AG		Sell		4,660			1.0		6/20/17		(75,618	)		72,502			(3,116	)

		Total		4,660							(75,618	)		72,502			(3,116	)
SLM Corp.
Bank of America NA		Sell		4,720			5.0		6/20/17		(162,650	)		105,465			(57,185	)

		Total		4,720							(162,650	)		105,465			(57,185	)

42	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Credit Default Swap Contracts: Continued
Reference Entity/ Swap Counterparty	Buy/Sell Credit Protection		Notional Amount (000’s)		Pay/ Receive Fixed Rate		Termination Date		Upfront Payment Received/ (Paid)		Value			Unrealized Appreciation (Depreciation)
Spain (Kingdom of)
JPMorgan Chase Bank NA		Sell	$	885		1.0%		6/20/22	$	242,001	$	(225,350	)	$	16,651

		Total		885						242,001		(225,350	)		16,651

				Grand Total Buys						67,617		403,047			470,664

				Grand Total Sells						1,290,336		(1,363,037	)		(72,701	)

				Total Credit Default Swaps					$	1,357,953	$	(959,990	)	$	397,963

Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currency:


EUR			Euro

The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:


Type of Reference Asset on which the Fund Sold Protection	Total Maximum Potential Payments for Selling Credit Protection (Undiscounted)		Amount Recoverable*		Reference Asset Rating Range**
Investment Grade Single Name Corporate Debt	$	17,260,000	$	—		A to BBB-
Non-Investment Grade Single Name Corporate Debt		9,380,000		—		BB+
Investment Grade Sovereign Debt		5,275,000		—		BBB+ to BBB
Non-Investment Grade Sovereign Debt		3,280,000		—		BB+

Total	$	35,195,000	$	—

* The Fund has no amounts recoverable from related purchased protection. In addition, the Fund has no recourse provisions under the credit derivatives and holds no collateral which can offset or reduce potential payments under a triggering event.

**The period end reference asset security ratings, as rated by any rating organization, are included in the equivalent Standard & Poor’s rating category. The reference asset rating represents the likelihood of a potential credit event on the reference asset which would result in a related payment by the Fund.


Interest Rate Swap Contracts as of June 29, 2012 are as follows:
Interest Rate/ Swap Counterparty	Notional Amount (000’s)			Paid by the Fund		Received by the Fund			Termination Date		Value
BZDI:
Bank of America NA		10,140	BRR		BZDI		9.020	%		1/2/15	$	65,394
Citibank NA		8,380	BRR		BZDI		9.490			1/2/14		90,349
Credit Suisse International		7,240	BRR		BZDI		9.010			1/2/15		10,113
Deutsche Bank AG		10,130	BRR		BZDI		9.050			1/2/15		69,763
Goldman Sachs International		11,550	BRR		BZDI		8.840			1/2/15		53,944
Goldman Sachs International		20,940	BRR		BZDI		8.330			1/2/14		60,935

Total		68,380	BRR									350,498
MXN TIIE BANXICO
Bank of America NA		22,600	MXN		MXN TIIE BANXICO		7.030			6/4/32		20,913
Six-Month AUD BBR BBSW:
Bank of America NA		1,260	AUD		Six-Month AUD BBR BBSW		3.950			6/13/22		(1,948	)
Bank of America NA		1,305	AUD		Six-Month AUD BBR BBSW		3.888			6/27/22		(10,074	)

Total		2,565	AUD									(12,022	)

43	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Interest Rate Swap Contracts: Continued
Interest Rate/ Swap Counterparty	Notional Amount (000’s)			Paid by the Fund			Received by the Fund			Termination Date		Value
Six-Month JPY BBA LIBOR
Goldman Sachs International		459,000	JPY		0.860	%		Six-Month JPY BBA LIBOR			6/4/22	$	(18,569	)
Three-Month CAD BA CDOR:
Bank of America NA		1,860	CAD		Three-Month CAD BA CDOR			1.861	%		3/28/17		30,892
Bank of America NA		6,225	CAD		Three-Month CAD BA CDOR			1.825			4/27/14		31,424
Bank of America NA		2,490	CAD		Three-Month CAD BA CDOR			1.950			4/27/15		26,699

Total		10,575	CAD										89,015
Three-Month NZD BBR FRA
Westpac Banking Corp.		7,740	NZD		Three-Month NZD BBR FRA			3.655			6/7/22		(75,918	)
Three-Month SEK STIBOR SIDE
Goldman Sachs International		39,350	SEK		2.440			Three-Month SEK STIBOR SIDE			11/3/21		(110,130	)
Three-Month USD BBA LIBOR
Barclays Bank plc		5,870			Three-Month USD BBA LIBOR			2.358			11/2/21		361,461

					Total Interest Rate Swaps							$	605,248


Notional amount is reported in U.S. Dollars (USD), except for those		Abbreviations/Definitions are as follows:
denoted in the following currencies:		BA CDOR	Canada Bankers Acceptances Deposit
AUD	Australian Dollar		Offering Rate
BRR	Brazilian Real	BANXICO	Banco de Mexico
CAD	Canadian Dollar	BBA LIBOR	British Bankers’ Association London-Interbank
JPY	Japanese Yen		Offered Rate
MXN	Mexican Nuevo Peso	BBR	Bank Bill Rate
NZD	New Zealand Dollar	BBR BBSW	Bank Bill Swap Reference Rate
SEK	Swedish Krona		(Australian Financial Market)
		BZDI	Brazil Interbank Deposit Rate
		FRA	Forward Rate Agreement
		STIBOR SIDE	Stockholm Interbank Offered Rate
		TIIE	Interbank Equilibrium Interest Rate

Total Return Swap Contracts as of June 29, 2012 are as follows:

Reference Entity/
Swap Counterparty

Notional
Amount
(000’s)

Paid by
the Fund

Received by
the Fund

Termination
Date

Value

Custom Basket of Securities:

Citibank NA

404,272

JPY

One-Month JPY BBA LIBOR plus 53 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

4/16/13

452,541

44	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Total Return Swap Contracts: Continued

Reference Entity/
Swap Counterparty

Notional
Amount
(000’s)

Paid by
the Fund

Received by
the Fund

Termination
Date

Value

Custom Basket of Securities: Continued

Citibank NA

4,305

AUD

One-Month AUD BBA LIBOR plus 50 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

3/8/13

9,211

Citibank NA

4,302

CAD

One-Month CAD BA CDOR plus 30 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

3/6/13

42,295

Goldman Sachs International

32,021

HKD

One-Month HKD HIBOR HKAB plus 40 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

6/11/13

305,081

Goldman Sachs International

22,805

One-Month USD BBA LIBOR plus 18 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

6/6/13

1,209,402

Morgan Stanley & Co. International plc

1,412

GBP

One-Month GBP BBA LIBOR plus 50 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

1/10/13

106,772

UBS AG

3,131

One-Month USD BBA LIBOR plus 30 basis points and if negative, the absolute value of the Total Return of a Custom Basket of Securities

If positive, the Total Return of a Custom Basket of Securities

4/5/13

198,190

Reference Entity Total

2,323,492

HANG SENG Index (The) Futures Contract expiring 7/30/12

Goldman Sachs International

36,944

HKD

If positive, the Total Return of the HANG SENG Index (The) Futures Contract expiring 7/30/12

If negative, the absolute value of the Total Return of the HANG SENG Index (The) Futures Contract expiring 7/30/12

8/6/12

(126,498

)

IBOVESPA Futures Contract expiring 8/15/12

UBS AG

1,632

If positive, the Total Return of the IBOVESPA Futures Contract expiring 8/15/12

If negative, the absolute value of the Total Return of the IBOVESPA Futures Contract expiring 8/15/12 plus 5 basis points

8/17/12

(53,669

)

Total of Total Return Swaps

2,143,325

45	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies:
AUD		Australian Dollar
CAD		Canadian Dollar
GBP		British Pounds Sterling
HKD		Hong Kong Dollar
JPY		Japanese Yen

Abbreviations are as follows:
BA CDOR		Canada Bankers Acceptances Deposit offering Rate
BBA LIBOR		British Bankers’ Association London-Interbank Offered Rate
HANG SENG		Hang Seng Bank
HIBOR		Hong Kong Interbank Offered Rate
HKAB		Hong Kong Association of Banks
IBOVESPA		Index of stocks that trade on the Sao Paulo, Mercantile & Futures Exchange


Volatility Swaps as of June 29, 2012 are as follows:
Reference Entity/ Swap Counterparty	Notional Amount (000’s)			Paid by the Fund	Received by the Fund			Termination Date		Value
AUD/CHF Spot Exchange Rate:
Bank of America NA		56 AUD		The Historic Volatility of the mid AUD/CHF spot exchange rate during the period 6/25/12 to 7/25/12		8.150	%		7/27/12	$	(1,717	)
Goldman Sachs International		59	AUD	The Historic Volatility of the mid AUD/CHF spot exchange rate during the period 5/31/12 to 7/3/12		10.150			7/5/12		137,076
Goldman Sachs International		56	AUD	The Historic Volatility of the mid AUD/CHF spot exchange rate during the period 6/13/12 to 7/12/12		9.800			7/16/12		138,480

						Reference Entity Total					273,839
CHF/JPY Spot Exchange Rate:
Bank of America NA		51	CHF	The Historic Volatility of the mid CHF/JPY spot exchange rate during the period 6/18/12 to 7/18/12		13.050			7/20/12		(74,463	)
Credit Suisse (USA) LLC		51	CHF	The Historic Volatility of the mid CHF/JPY spot exchange rate during the period 6/14/12 to 7/16/12		14.550			7/18/12		54,151
Royal Bank of Scotland plc (The)		50	CHF	The Historic Volatility of the mid CHF/JPY spot exchange rate during the period 6/19/12 to 7/19/12		12.250			7/23/12		(122,265	)

						Reference Entity Total					(142,577	)

46	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Volatility Swaps: Continued
Reference Entity/ Swap Counterparty	Notional Amount (000’s)			Paid by the Fund	Received by the Fund			Termination Date		Value
CHF/NOK Spot Exchange Rate
Credit Suisse International		50	CHF	The Historic Volatility of the mid CHF/NOK spot exchange rate during the period 6/20/12 to 7/19/12		5.800	%		7/23/12	$	14,404
CHF/SEK Spot Exchange Rate
Royal Bank of Scotland plc (The)		51	CHF	The Historic Volatility of the mid CHF/SEK spot exchange rate during the period 6/21/12 to 7/24/12		5.750			7/26/12		14,032
GBP/CAD Spot Exchange Rate:
Bank of America NA		24	GBP	The Historic Volatility of the mid GBP/CAD spot exchange rate during the period 6/8/12 to 7/10/12		7.600			7/12/12		19,155
Bank of America NA		23	GBP	The Historic Volatility of the mid GBP/CAD spot exchange rate during the period 6/7/12 to 7/9/12		8.000			7/11/12		32,459
Royal Bank of Scotland plc (The)		23	GBP	The Historic Volatility of the mid GBP/CAD spot exchange rate during the period 6/6/12 to 7/5/12		8.550			7/9/12		61,240

						Reference Entity Total					112,854
GBP/NZD Spot Exchange Rate:
Bank of America NA		23	GBP	The Historic Volatility of the mid GBP/NZD spot exchange rate during the period 6/26/12 to 7/26/12		8.250			7/30/12		(23,139	)
Credit Suisse International		23	GBP	The Historic Volatility of the mid GBP/NZD spot exchange rate during the period 6/22/12 to 7/24/12		8.550			7/26/12		(5,421	)
Goldman Sachs International		23	GBP	The Historic Volatility of the mid GBP/NZD spot exchange rate during the period 6/28/12 to 7/31/12		8.350			8/2/12		(12,728	)

				Reference Entity Total							(41,288	)

47	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Volatility Swaps: Continued
Reference Entity/ Swap Counterparty	Notional Amount (000’s)			Paid by the Fund	Received by the Fund			Termination Date		Value
NZD/CHF Spot Exchange Rate
Bank of America NA		98	NZD	The Historic Volatility of the mid NZD/CHF spot exchange rate during the period 6/5/12 to 7/5/12		10.600	%		7/9/12	$	144,393
USD/CHF Spot Exchange Rate
Royal Bank of Scotland plc (The)		56		The Historic Volatility of the mid USD/CHF spot exchange rate during the period 6/11/12 to 7/11/12		12.650			7/13/12		92,919
USD/NZD Spot Exchange Rate
Credit Suisse International		56		The Historic Volatility of the mid USD/NZD spot exchange rate during the period 6/27/12 to 7/27/12		10.900			7/31/12		(114,646	)
USD/SEK Spot Exchange Rate:
Credit Suisse International		56		The Historic Volatility of the mid USD/SEK spot exchange rate during the period 6/12/12 to 7/12/12		13.700			7/16/12		61,904
Credit Suisse International		56		The Historic Volatility of the mid USD/SEK spot exchange rate during the period 6/4/12 to 7/5/12		13.600			7/9/12		98,975
Royal Bank of Scotland plc (The)		56		The Historic Volatility of the mid USD/SEK spot exchange rate during the period 6/1/12 to 7/3/12		14.100			7/5/12		100,452
Royal Bank of Scotland plc (The)		56		The Historic Volatility of the mid USD/SEK spot exchange rate during the period 6/15/12 to 7/17/12		13.400			7/19/12		41,493

						Reference Entity Total					302,824

						Total Volatility Swaps				$	656,754

48	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies:
AUD		Australian Dollar
CAD		Canadian Dollar
CHF		Swiss Franc
GBP		British Pounds Sterling
JPY		Japanese Yen
NOK		Norwegian Krone
NZD		New Zealand Dollar
SEK		Swedish Krona

The following table aggregates, as of period end, the amount receivable from/(payable to) each counterparty with whom the Fund has entered into a swap agreement. Swaps are individually disclosed in the preceding tables.


Swap Summary as of June 29, 2012 is as follows:
Swap Counterparty	Swap Type from Fund Perspective	Notional Amount (000’s)			Value
Bank of America NA:
	Credit Default Sell Protection	$	9,440		$	(152,525	)
	Interest Rate		2,565	AUD		(12,022	)
	Interest Rate		10,140	BRR		65,394
	Interest Rate		10,575	CAD		89,015
	Interest Rate		22,600	MXN		20,913
	Volatility		56	AUD		(1,717	)
	Volatility		51	CHF		(74,463	)
	Volatility		70	GBP		28,475
	Volatility		98	NZD		144,393

						107,463
Barclays Bank plc:
	Credit Default Buy Protection		4,720			144,702
	Interest Rate		5,870			361,461

						506,163
Citibank NA:
	Credit Default Buy Protection		4,660			219,322
	Interest Rate		8,380	BRR		90,349
	Total Return		4,305	AUD		9,211
	Total Return		4,302	CAD		42,295
	Total Return		404,272	JPY		452,541

						813,718
Credit Suisse (USA) LLC	Volatility		51	CHF		54,151
Credit Suisse International:
	Credit Default Buy Protection		9,380			201,600
	Interest Rate		7,240	BRR		10,113
	Volatility		50	CHF		14,404
	Volatility		23	GBP		(5,421	)
	Volatility		168			46,233

						266,929
Deutsche Bank AG:
	Credit Default Buy Protection		7,260			(459,766	)
	Credit Default Sell Protection		18,490			(372,543	)
	Interest Rate		10,130	BRR		69,763

						(762,546	)

49	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


Swap Summary: Continued
Swap Counterparty	Swap Type from Fund Perspective	Notional Amount (000’s)			Value
Goldman Sachs International:
	Interest Rate		32,490	BRR	$	114,879
	Interest Rate		459,000	JPY		(18,569	)
	Interest Rate		39,350	SEK		(110,130	)
	Total Return		68,965	HKD		178,583
	Total Return		22,805			1,209,402
	Volatility		115	AUD		275,556
	Volatility		23	GBP		(12,728	)

						1,636,993
HSBC Bank USA NA	Credit Default Sell Protection		1,640			(278,995	)
JPMorgan Chase Bank NA:
	Credit Default Buy Protection		895	EUR		68,344
	Credit Default Buy Protection		4,780			228,845
	Credit Default Sell Protection		885			(225,350	)

						71,839
Morgan Stanley & Co. International plc	Total Return		1,412	GBP		106,772
Morgan Stanley Capital Services, Inc.	Credit Default Sell Protection		3,100			(54,629	)
Royal Bank of Scotland plc (The):
	Volatility		101	CHF		(108,233	)
	Volatility		23	GBP		61,240
	Volatility		168			234,864

						187,871
UBS AG:
	Credit Default Sell Protection		1,640			(278,995	)
	Total Return		4,763			144,521

						(134,474	)
Westpac Banking Corp.	Interest Rate		7,740	NZD		(75,918	)

			Total Swaps		$	2,445,337

Notional amount is reported in U.S.Dollars (USD), except for those denoted in the following currencies:


AUD	Australian Dollar	HKD	Hong Kong Dollar
BRR	Brazilian Real	JPY	Japanese Yen
CAD	Canadian Dollar	MXN	Mexican Nuevo Peso
CHF	Swiss Franc	NZD	New Zealand Dollar
EUR	Euro	SEK	Swedish Krona
GBP	British Pounds Sterling

As of June 29, 2012, the Fund had entered into the following written swaption contracts:

Reference Entity /
Swaption Counterparty

Swaption Description

Underlying
Swap Type from
Fund Perspective

Notional
Amount
(000’s)

Swaption
Expiration
Date

Premium
Received

Value

Unrealized
Appreciation
(Depreciation)

iTraxx Europe Crossover Series 17 Version 1:

Bank of America NA

Index Credit Default Swaption (European); Swap Terms: Paid: 5%; Received: Bought Protection on iTraxx Europe Crossover Series 17 Version 1; Termination Date: 6/20/17

Index Credit Default Pay Fixed

1,255

EUR

9/20/12

3,617

(5,263

)

(1,646

)

50	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


As of June 29, 2012, the Fund had entered into the following written swaption contracts: Continued
Reference Entity / Swaption Counterparty	Swaption Description	Underlying Swap Type from Fund Perspective	Notional Amount (000’s)			Swaption Expiration Date		Premium Received		Value			Unrealized Appreciation (Depreciation)
iTraxx Europe Crossover Series 17 Version 1: Continued
JPMorgan Chase Bank NA	Index Credit Default Swaption (European); Swap Terms: Paid: Sold Protection on iTraxx Europe Crossover Series 17 Version 1; Received: 5%; Termination Date: 6/20/17	Index Credit Default Pay Floating		1,280	EUR		9/20/12	$	20,589	$	(18,311	)	$	2,278

									24,206		(23,574	)		632
Six-Month EUR EURIBOR:
Goldman Sachs Bank USA	Interest Rate Swaption (European); Swap Terms: Paid: 2.71%; Received: Six-Month EUR EURIBOR; Termination Date: 11/17/42	Interest Rate Pay Fixed		14,850	EUR		11/16/12		805,251		(911,608	)		(106,357	)
Goldman Sachs Bank USA	Interest Rate Swaption (European); Swap Terms: Paid: 2.65%; Received: Six-Month EUR EURIBOR; Termination Date: 12/1/42	Interest Rate Pay Fixed		14,900	EUR		11/30/12		750,380		(851,045	)		(100,665	)

		Total where Fund pays a fixed rate							1,555,631		(1,762,653	)		(207,022	)

Barclays Bank plc	Interest Rate Swaption (European); Swap Terms: Paid: Six-Month EUR EURIBOR; Received: 2.70%; Termination Date: 5/8/24	Interest Rate Pay Floating		11,970	EUR		5/7/14		527,996		(506,184	)		21,812

		Total where Fund pays a floating rate							527,996		(506,184	)		21,812

							Total		2,083,627		(2,268,837	)		(185,210	)
Six-Month GBP BBA LIBOR:
Barclays Bank plc	Interest Rate Swaption (European); Swap Terms: Paid: 2.29%; Received: Six-Month GBP BBA LIBOR; Termination Date: 6/26/23	Interest Rate Pay Fixed		10,275	GBP		6/27/13		470,143		(433,846	)		36,297

51	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


As of June 29, 2012, the Fund had entered into the following written swaption contracts: Continued
Reference Entity / Swaption Counterparty	Swaption Description	Underlying Swap Type from Fund Perspective	Notional Amount (000’s)			Swaption Expiration Date		Premium Received		Value			Unrealized Appreciation (Depreciation)
Six-Month GBP BBA LIBOR: Continued
JPMorgan Chase Bank NA	Interest Rate Swaption (European); Swap Terms: Paid: 3.231%; Received: Six-Month GBP BBA LIBOR; Termination Date: 2/14/43	Interest Rate Pay Fixed		500	GBP		2/15/13	$	49,596	$	(61,890	)	$	(12,294	)

		Total where Fund pays a fixed rate							519,739		(495,736	)		24,003

Barclays Bank plc	Interest Rate Swaption (European); Swap Terms: Paid: Six-Month GBP BBA LIBOR; Received: 2.29%; Termination Date: 6/26/23	Interest Rate Pay Floating		10,275	GBP		6/27/13		470,143		(502,406	)		(32,263	)

		Total where Fund pays a floating rate							470,143		(502,406	)		(32,263	)

							Total		989,882		(998,142	)		(8,260	)
Three-Month CAD BA CDOR:
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 1.59%; Received: Three-Month CAD BA CDOR; Termination Date: 8/7/14	Interest Rate Pay Fixed		2,485	CAD		8/8/12		7,239		(15,720	)		(8,481	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.30%; Received: Three-Month CAD BA CDOR; Termination Date: 9/5/22	Interest Rate Pay Fixed		4,970	CAD		9/6/12		53,495		(96,876	)		(43,381	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.2255%; Received: Three-Month CAD BA CDOR; Termination Date: 9/27/22	Interest Rate Pay Fixed		10,260	CAD		9/28/12		166,089		(160,696	)		5,393
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 1.5375%; Received: Three-Month CAD BA CDOR; Termination Date: 8/13/13	Interest Rate Pay Fixed		6,220	CAD		8/14/12		8,390		(20,489	)		(12,099	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 1.525%; Received: Three-Month CAD BA CDOR; Termination Date: 8/3/13	Interest Rate Pay Fixed		6,215	CAD		8/6/12		7,856		(19,694	)		(11,838	)

52	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


As of June 29, 2012, the Fund had entered into the following written swaption contracts: Continued
Reference Entity / Swaption Counterparty	Swaption Description	Underlying Swap Type from Fund Perspective	Notional Amount (000’s)			Swaption Expiration Date		Premium Received		Value			Unrealized Appreciation (Depreciation)
Three-Month CAD BA CDOR: Continued
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.53%; Received: Three-Month CAD BA CDOR; Termination Date: 9/24/22	Interest Rate Pay Fixed		5,010	CAD		9/25/12	$	56,687	$	(175,755	)	$	(119,068	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.61%; Received: Three-Month CAD BA CDOR; Termination Date: 9/21/22	Interest Rate Pay Fixed		10,000	CAD		9/24/12		113,883		(406,434	)		(292,551	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.27%; Received: Three-Month CAD BA CDOR; Termination Date: 8/27/22	Interest Rate Pay Fixed		9,945	CAD		8/28/12		112,485		(170,794	)		(58,309	)

									526,124		(1,066,458	)		(540,334	)
Three-Month USD BBA LIBOR:
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.2825%; Received: Three-Month USD BBA LIBOR; Termination Date: 10/11/22	Interest Rate Pay Fixed		20,095			10/10/12		476,252		(892,636	)		(416,384	)
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: 2.93%; Received: Three-Month USD BBA LIBOR; Termination Date: 8/18/22	Interest Rate Pay Fixed		19,810			8/17/12		213,948		(292,590	)		(78,642	)
Goldman Sachs International	Interest Rate Swaption (European); Swap Terms: Paid: 2.90%; Received: Three-Month USD BBA LIBOR; Termination Date: 11/13/22	Interest Rate Pay Fixed		145,605			11/9/12		1,314,085		(2,642,777	)		(1,328,692	)

		Total where Fund pays a fixed rate							2,004,285		(3,828,003	)		(1,823,718	)

53	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments Continued


As of June 29, 2012, the Fund had entered into the following written swaption contracts: Continued
Reference Entity / Swaption Counterparty	Swaption Description	Underlying Swap Type from Fund Perspective	Notional Amount (000’s)			Swaption Expiration Date		Premium Received		Value			Unrealized Appreciation (Depreciation)
Three-Month USD BBA LIBOR: Continued
Bank of America NA	Interest Rate Swaption (European); Swap Terms: Paid: Three-Month USD BBA LIBOR; Received: 3%; Termination Date: 8/22/42	Interest Rate Pay Floating	$	10,110			8/21/12	$	93,518	$	(25,010	)	$	68,508
Barclays Bank plc	Interest Rate Swaption (European); Swap Terms: Paid: Three-Month USD BBA LIBOR; Received: 3.50%; Termination Date: 4/27/22	Interest Rate Pay Floating		20,515			4/26/17		681,481		(468,746	)		212,735
Goldman Sachs International	Interest Rate Swaption (European); Swap Terms: Paid: Three-Month USD BBA LIBOR; Received: 1.115%; Termination Date: 10/1/12	Interest Rate Pay Floating		23,230			10/1/12		84,209		(2,508	)		81,701
UBS AG	Interest Rate Swaption (European); Swap Terms: Paid: Three-Month USD BBA LIBOR; Received: 2.80%; Termination Date: 6/13/23	Interest Rate Pay Floating		25,380			6/12/13		304,560		(256,139	)		48,421

		Total where Fund pays a floating rate							1,163,768		(752,403	)		411,365

							Total		3,168,053		(4,580,406	)		(1,412,353	)
Three-Month ZAR JIBAR SAFEX:
Barclays Bank plc	Interest Rate Swaption (European); Swap Terms: Paid: 7%, Received: Three-Month ZAR JIBAR SAFEX; Termination Date: 11/14/22	Interest Rate Pay Fixed		17,000	ZAR		11/13/12		22,009		(37,125	)		(15,116	)
JPMorgan Chase Bank NA	Interest Rate Swaption (European); Swap Terms: Paid: 7%; Received: Three-Month ZAR JIBAR SAFEX; Termination Date: 11/19/22	Interest Rate Pay Fixed		17,090	ZAR		11/20/12		22,519		(38,239	)		(15,720	)

54	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


As of June 29, 2012, the Fund had entered into the following written swaption contracts: Continued
Reference Entity / Swaption Counterparty	Swaption Description	Underlying Swap Type from Fund Perspective	Notional Amount (000’s)			Swaption Expiration Date		Premium Received		Value			Unrealized Appreciation (Depreciation)
Three-Month ZAR JIBAR SAFEX: Continued
JPMorgan Chase Bank NA	Interest Rate Swaption (European); Swap Terms: Paid: 7%; Received: Three-Month ZAR JIBAR SAFEX; Termination Date: 12/18/22	Interest Rate Pay Fixed		17,265	ZAR		12/19/12	$	22,751	$	(42,315	)	$	(19,564	)

									67,279		(117,679	)		(50,400	)

		Total Written Swaptions						$	6,859,171	$	(9,055,096	)	$	(2,195,925	)

Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies:


CAD		Canadian Dollar
EUR		Euro
GBP		British Pound Sterling
ZAR		South African Rand

Abbreviations/Definitions are as follows:
BA CDOR		Canada Bankers Acceptances Deposit Offering Rate
BBA LIBOR		British Bankers’ Association London-Interbank Offered Rate
EURIBOR		Euro Interbank Offered Rate
iTraxx Europe Crossover Series 17 Version 1		Credit Default Swap Trading Index for a Specific Basket of Securities
JIBAR		South Africa Johannesburg Interbank Agreed Rate
SAFEX		South African Futures Exchange

See accompanying Notes to Financial Statements.

55	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $2,312,620,945)	$	2,261,787,555
Affiliated companies (cost $419,900,287)		417,915,552
Wholly-owned subsidiary (cost $1,500,000)		1,457,156
		2,681,160,263
Cash		691,634
Unrealized appreciation on foreign currency exchange contracts		8,168,663
Appreciated swaps, at value (upfront payments paid $388,958)		4,823,401
Depreciated swaps, at value (upfront payments paid $477,430)		397,289
Swaps, at value (upfront payments paid $68,344)		68,344
Receivables and other assets:
Investments sold (including $129,326,964 sold on a when-issued or delayed delivery basis)		395,943,597
Interest, dividends and principal paydowns		26,669,532
Closed foreign currency contracts		4,297,334
Shares of beneficial interest sold		671,405
Futures margins		618,166
Other		1,775,594
Total assets		3,125,285,222
Liabilities
Bank overdraft-foreign currencies (cost $0)		835,564
Appreciated options written, at value (premiums received $1,945,805)		797,422
Depreciated options written, at value (premiums received $142,730)		192,757
Options written, at value (premiums received $28,824)		28,824
Appreciated swaptions written, at value (premiums received $2,348,585)		1,871,440
Depreciated swaptions written, at value (premiums received $4,510,586)		7,183,656
Unrealized depreciation on foreign currency exchange contracts		10,390,054
Appreciated swaps, at value (upfront payments received $1,995,253)		1,659,057
Depreciated swaps, at value (upfront payments received $297,432)		1,184,640
Payables and other liabilities:
Investments purchased (including $463,057,309 purchased on a when-issued or delayed delivery basis)		720,695,490
Futures margins		3,214,082
Closed foreign currency contracts		1,520,675
Shares of beneficial interest redeemed		1,449,345
Foreign capital gains tax		363,980
Distribution and service plan fees		340,920
Transfer and shareholder servicing agent fees		191,160
Shareholder communications		99,809
Trustees’ compensation		45,578
Other		17,439
Total liabilities		752,081,892

Net Assets	$	2,373,203,330

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

56	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Composition of Net Assets
Par value of shares of beneficial interest	$	440,927
Additional paid-in capital		2,378,577,585
Accumulated net investment income		83,580,292
Accumulated net realized loss on investments and foreign currency transactions		(35,236,076	)
Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies		(54,159,398	)
Net Assets	$	2,373,203,330
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $682,151,256 and 128,746,838 shares of beneficial interest outstanding)		$5.30
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,691,052,074 and 312,180,407 shares of beneficial interest outstanding)		$5.42

See accompanying Notes to Financial Statements.

57	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Allocation of Income and Expenses from Master Funds²
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC:
Interest	$	2,368,884
Dividends		2,931
Expenses³		(114,704	)
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC		2,257,111
Net investment income allocated from Oppenheimer Master Loan Fund, LLC:
Interest		11,778,054
Dividends		14,777
Expenses⁴		(527,538	)
Net investment income allocated from Oppenheimer Master Loan Fund, LLC		11,265,293
Total allocation of net investment income from master funds		13,522,404
Investment Income
Interest		63,384,603
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $2,358)		101,355
Affiliated companies		73,941
Fee income on when-issued securities		905,267
Total investment income		64,465,166
Expenses
Management fees		6,745,056
Distribution and service plan fees—Service shares		2,072,064
Transfer and shareholder servicing agent fees:
Non-Service shares		337,190
Service shares		828,810
Shareholder communications:
Non-Service shares		23,614
Service shares		58,037
Custodian fees and expenses		106,275
Trustees’ compensation		26,531
Administration service fees		750
Other		95,661
Total expenses		10,293,988
Less waivers and reimbursements of expenses		(636,484	)
Net expenses		9,657,504

Net Investment Income		68,330,066

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

2. The Fund invests in certain affiliated Mutual Funds that expect to be treated as partnerships for tax purposes. See Note 1 of the accompanying Notes

3. Net of expense waivers and/or reimbursements $1,327.

4. Net of expense waivers and/or reimbursements $6,636.

58	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments from unaffiliated companies (including premiums on options exercised)	$	(15,374,381	)
Distributions received from affiliated companies		5,553
Closing and expiration of option contracts written		6,753,263
Closing and expiration of swaption contracts written		4,203,777
Closing and expiration of futures contracts		5,329,556
Foreign currency transactions		(17,893,517	)
Swap contracts		790,410
Increase from payment by affiliate		7,699
Net realized loss allocated from:
Oppenheimer Master Event-Linked Bond Fund, LLC		(2,182,980	)
Oppenheimer Master Loan Fund, LLC		(2,163,697	)
Net realized loss		(20,524,317	)
Net change in unrealized appreciation/depreciation on:
Investments (net of foreign capital gains tax of $313,555)		69,240,957
Translation of assets and liabilities denominated in foreign currencies		12,790,791
Futures contracts		(3,068,079	)
Option contracts written		(9,872	)
Swaption contracts written		(2,815,861	)
Swap contracts		2,589,150
Net change in unrealized appreciation/deprecation allocated from:
Oppenheimer Master Event-Linked Bond Fund, LLC		1,651,580
Oppenheimer Master Loan Fund, LLC		5,903,484
Net change in unrealized appreciation/depreciation		86,282,150

Net Increase in Net Assets Resulting from Operations	$	134,087,899

See accompanying Notes to Financial Statements.

59	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	68,330,066		$	149,720,270
Net realized gain (loss)		(20,524,317	)		38,586,175
Net change in unrealized appreciation/depreciation		86,282,150			(168,669,648	)
Net increase in net assets resulting from operations		134,087,899			19,636,797
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(41,097,829	)		(23,004,040	)
Service shares		(95,632,597	)		(46,831,691	)
		(136,730,426	)		(69,835,731	)
Distributions from net realized gain:
Non-Service shares		(7,582,316	)		(8,843,118	)
Service shares		(18,415,501	)		(20,376,612	)
		(25,997,817	)		(29,219,730	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		43,399,683			(39,359,888	)
Service shares		105,453,893			(10,325,962	)
		148,853,576			(49,685,850	)
Net Assets
Total increase (decrease)		120,213,232			(129,104,514	)
Beginning of period		2,252,990,098			2,382,094,612
End of period (including accumulated net investment income of $83,580,292 and $151,980,652, respectively)	$	2,373,203,330		$	2,252,990,098

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

60	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$5.38			$5.58			$5.30			$4.49			$5.56			$5.26
Income (loss) from investment operations:
Net investment income²		.17			.36			.34			.30			.30			.28
Net realized and unrealized gain (loss)		.15			(.31	)		.40			.53			(1.04	)		.21
Total from investment operations		.32			.05			.74			.83			(.74	)		.49
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.34	)		(.18	)		(.46	)		(.02	)		(.27	)		(.19	)
Distributions from net realized gain		(.06	)		(.07	)		—			—³			(.06	)		—
Total dividends and distributions to shareholders		(.40	)		(.25	)		(.46	)		(.02	)		(.33	)		(.19	)
Net asset value, end of period		$5.30			$5.38			$5.58			$5.30			$4.49			$5.56
Total Return, at Net Asset Value⁴	6.13%			0.85%			14.97%			18.83%			(14.21)%			9.69%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	682,151		$	648,084		$	711,755		$	757,772		$	648,570		$	734,611
Average net assets (in thousands)	$	678,275		$	694,868		$	737,071		$	681,926		$	753,062		$	664,668
Ratios to average net assets:^5,6
Net investment income		6.04	%		6.50	%		6.47	%		6.20	%		5.78	%		5.34	%
Total expenses		0.76	%⁷		0.77	%⁷		0.75	%⁸		0.67	%⁸		0.59	%⁸		0.59	%⁸
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.71	%⁹		0.71	%⁹		0.71	%		0.64	%		0.57	%		0.57	%
Portfolio turnover rate¹⁰		45	%		49	%		99	%		110	%		86	%		76	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Less than $0.005 per share.

5. Annualized for periods less than one full year.

6. Includes the Fund’s share of the allocated expenses and/or net investment income from the master funds.

7. Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.77	%
Year Ended December 30, 2011	0.78	%

8. Total expenses including all affiliated fund expenses were as follows:


Year Ended December 31, 2010	0.75	%
Year Ended December 31, 2009	0.68	%
Year Ended December 31, 2008	0.60	%
Year Ended December 31, 2007	0.61	%

9. Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.72	%
Year Ended December 30, 2011	0.72	%

10. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	1,207,855,796	$	971,057,466
Year Ended December 30, 2011	$	1,050,654,783	$	1,039,506,614
Year Ended December 31, 2010	$	1,034,550,699	$	1,085,289,655
Year Ended December 31, 2009	$	1,909,574,925	$	1,836,038,328
Year Ended December 31, 2008	$	634,319,548	$	594,845,589
Year Ended December 31, 2007	$	1,061,009,472	$	1,120,098,096

See accompanying Notes to Financial Statements.

61	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$5.49			$5.68			$5.38			$4.56			$5.65			$5.34
Income (loss) from investment operations:
Net investment income²		.16			.35			.33			.29			.29			.28
Net realized and unrealized gain (loss)		.16			(.31	)		.42			.54			(1.06	)		.22
Total from investment operations		.32			.04			.75			.83			(.77	)		.50
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.33	)		(.16	)		(.45	)		(.01	)		(.26	)		(.19	)
Distributions from net realized gain		(.06	)		(.07	)		—			—	³		(.06	)		—
Total dividends and distributions to shareholders		(.39	)		(.23	)		(.45	)		(.01	)		(.32	)		(.19	)
Net asset value, end of period		$5.42			$5.49			$5.68			$5.38			$4.56			$5.65
Total Return, at Net Asset Value⁴	5.92%			0.65%			14.77%			18.41%			(14.49)%			9.55%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,691,052		$	1,604,906		$	1,670,340		$	3,656,726		$	2,810,315		$	2,876,016
Average net assets (in thousands)	$	1,667,244		$	1,673,715		$	2,485,427		$	3,143,836		$	3,152,967		$	2,075,028
Ratios to average net assets:^5,6
Net investment income		5.79	%		6.25	%		6.15	%		5.95	%		5.54	%		5.08	%
Total expenses		1.01	%⁷		1.02	%⁷		0.99	%⁸		0.92	%⁸		0.84	%⁸		0.84	%⁸
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.96	%⁹		0.96	%⁹		0.95	%		0.89	%		0.82	%		0.82	%
Portfolio turnover rate¹⁰		45	%		49	%		99	%		110	%		86	%		76	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

3. Less than $0.005 per share.

5. Annualized for periods less than one full year.

6. Includes the Fund’s share of the allocated expenses and/or net investment income from the master funds.

7. Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.02	%
Year Ended December 30, 2011	1.03	%

8. Total expenses including all affiliated fund expenses were as follows:


Year Ended December 31, 2010	0.99	%
Year Ended December 31, 2009	0.93	%
Year Ended December 31, 2008	0.85	%
Year Ended December 31, 2007	0.86	%

9. Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	0.97	%
Year Ended December 30, 2011	0.97	%

10. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions
Six Months Ended June 29, 2012	$	1,207,855,796	$	971,057,466
Year Ended December 30, 2011	$	1,050,654,783	$	1,039,506,614
Year Ended December 31, 2010	$	1,034,550,699	$	1,085,289,655
Year Ended December 31, 2009	$	1,909,574,925	$	1,836,038,328
Year Ended December 31, 2008	$	634,319,548	$	594,845,589
Year Ended December 31, 2007	$	1,061,009,472	$	1,120,098,096

See accompanying Notes to Financial Statements.

62	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Global Strategic Income Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek total return. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

Structured Securities. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note’s market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures.

As of June 29, 2012, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions
Purchased securities	$	463,057,309
Sold securities		129,326,964

63	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued


Cost	$	33,477,648
Market Value	$	9,909,456
Market Value as a % of Net Assets		0.42	%

Investment in Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd. The Fund has established a Cayman Islands company that is wholly-owned and controlled by the Fund (the “Subsidiary”). The Fund may invest up to 25% of its total assets in the Subsidiary. The Subsidiary invests primarily in commodity-linked derivatives (including commodity related futures, options and swap contracts), exchange traded funds and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. Investments in the Subsidiary are expected to provide the Fund with exposure to commodities markets within the limitations of the federal tax requirements that apply to the Fund. The Subsidiary is subject to the same investment restrictions and guidelines, and follows the same compliance policies and procedures, as the Fund. The Fund wholly owns and controls the Subsidiary, and the Fund and Subsidiary are both managed by the Manager.

The Fund does not consolidate the assets, liabilities, capital or operations of the Subsidiary into its financial statements. Rather, the Subsidiary is separately presented as an investment in the Fund’s Statement of Investments. Shares of the Subsidiary are valued at their net asset value per share. Gains or losses on withdrawals of capital from the Subsidiary by the Fund are recognized on an average cost basis. Unrealized appreciation or depreciation on the Fund’s investment in the Subsidiary is recorded in the Fund’s Statement of Assets and Liabilities and the Fund’s Statement of Operations. Distributions received from the Subsidiary are recorded as income on the ex-dividend date.

For tax purposes, the Subsidiary is an exempted Cayman investment company. The Subsidiary has received an undertaking from the Government of the Cayman Islands exempting it from all local income, profits and capital gains taxes through September of 2030. No such taxes are levied in the Cayman Islands at the present time. For U.S. income tax purposes, the Subsidiary is a Controlled Foreign Corporation and as such is not subject to U.S. income tax. However, as a wholly-owned Controlled Foreign Corporation, the Subsidiary’s net income and capital gain, to the extent of its earnings

64	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

and profits, will be included each year in the Fund’s investment company taxable income. For the six months ended June 29, 2012, the Subsidiary has a deficit of $25,363 in its taxable earnings and profits. In addition, any in-kind capital contributions made by the Fund to the Subsidiary will result in the Fund recognizing taxable gain to the extent of unrealized gain, if any, on securities transferred to the Subsidiary while any unrealized losses on securities so transferred will not be recognized at the time of transfer.

Investment in Oppenheimer Master Funds. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC and Oppenheimer Master Event-Linked Bond Fund, LLC (the “Master Funds”). Each Master Fund has its own investment risks, and those risks can affect the value of the Fund’s investments and therefore the value of the Fund’s shares. To the extent that the Fund invests more of its assets in one Master Fund than in another, the Fund will have greater exposure to the risks of that Master Fund.

The investment objective of Oppenheimer Master Loan Fund, LLC is to seek as high a level of current income and preservation of capital as is consistent with investing primarily in loans and other debt securities. The investment objective of Oppenheimer Master Event-Linked Bond Fund, LLC is to seek a high level of current income principally derived from interest on debt securities. The Fund’s investments in the Master Funds are included in the Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each Master Fund according to its allocated pro-rata share, based on its relative proportion of total outstanding Master Fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the Master Funds. As a shareholder, the Fund is subject to its proportional share of the Master Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Master Funds.

65	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

During the fiscal year ended December 30, 2011, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had straddle losses of $792,837. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $20,524,317 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	2,743,468,818
Federal tax cost of other investments		(164,966,976)

Total federal tax cost	$	2,578,501,842


Gross unrealized appreciation	$	148,038,333
Gross unrealized depreciation		(209,069,950)

Net unrealized depreciation	$	(61,031,617)

Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized.

66	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold (except for the investments in the Subsidiary) are determined on the basis of identified cost.

2. Securities Valuation

67	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

68	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.
Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

Classifications

69	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Wholly-Owned Subsidiary	$	—		$	1,457,156		$	—	$	1,457,156
Asset-Backed Securities		—			35,638,045			11,991,800		47,629,845
Corporate Loans		—			1,701,789			4,250,313		5,952,102
Mortgage-Backed Obligations		—			701,461,034			—		701,461,034
U.S. Government Obligations		—			95,230,418			—		95,230,418
Foreign Government Obligations		—			684,447,512			—		684,447,512
Loan Participations		—			21,433,328			—		21,433,328
Corporate Bonds and Notes		391,955			620,785,971			—		621,177,926
Preferred Stocks		—			3,919,534			—		3,919,534
Common Stocks		2,534,452			3,317,860			—		5,852,312
Rights, Warrants and Certificates		—			—			420		420
Structured Securities		—			65,034,354			36,387		65,070,741
Options Purchased		349,508			5,636,209			—		5,985,717
Swaptions Purchased		—			3,626,666			—		3,626,666
Investment Companies		54,617,427			363,298,125			—		417,915,552

Total Investments, at Value		57,893,342			2,606,988,001			16,278,920		2,681,160,263
Other Financial Instruments:
Appreciated swaps, at value		—			4,823,401			—		4,823,401
Depreciated swaps, at value		—			397,289			—		397,289
Swaps, at value		—			68,344			—		68,344
Futures margins		618,166			—			—		618,166
Foreign currency exchange contracts		—			8,168,663			—		8,168,663

Total Assets	$	58,511,508		$	2,620,445,698		$	16,278,920	$	2,695,236,126

Liabilities Table
Other Financial Instruments:
Appreciated swaps, at value	$	—		$	(1,659,057	)	$	—	$	(1,659,057	)
Depreciated swaps, at value		—			(1,184,640	)		—		(1,184,640	)
Appreciated options written, at value		(82,273	)		(715,149	)		—		(797,422	)
Depreciated options written, at value		—			(192,757	)		—		(192,757	)
Options written, at value		—			(28,824	)		—		(28,824	)

70	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value
Appreciated swaptions written, at value	$	—		$	(1,871,440	)	$	—	$	(1,871,440	)
Depreciated swaptions written, at value		—			(7,183,656	)		—		(7,183,656	)
Futures margins		(3,214,788	)		—			—		(3,214,788	)
Foreign currency exchange contracts		—			(10,390,054	)		—		(10,390,054	)

Total Liabilities	$	(3,297,061	)	$	(23,225,577	)	$	—	$	(26,522,638	)

The table below shows the significant transfers between Level 3 and Level 2. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers into Level 2*		Transfers out of Level 3*
Assets Table
Investments, at Value:
Common Stocks	$	208,932	$	(208,932	)
Preferred Stocks		2,968,560		(2,968,560	)

Total Assets	$	3,177,492	$	(3,177,492	)

*Transferred from Level 3 to Level 2 due to the availability of market data for this security.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

The net asset value per share of the Subsidiary is determined as of the close of the Exchange, on each day the Exchange is open for trading. The net asset value per share is determined by dividing the value of the Subsidiary’s net assets by the number of shares that are outstanding. The Subsidiary values its investments in the same manner as the Fund as described above.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		7,168,231		$	39,885,007			11,331,249		$	62,405,055
Dividends and/or distributions reinvested		9,254,780			48,680,145			5,843,515			31,847,158
Redeemed		(8,088,128	)		(45,165,469	)		(24,340,756	)		(133,612,101	)

Net increase (decrease)		8,334,883		$	43,399,683			(7,165,992	)	$	(39,359,888	)


Service Shares
Sold		16,240,758		$	92,301,966			30,704,662		$	172,623,711
Dividends and/or distributions reinvested		21,198,531			114,048,098			12,087,824			67,208,303
Redeemed		(17,751,813	)		(100,896,171	)		(44,589,582	)		(250,157,976	)

Net increase (decrease)		19,687,476		$	105,453,893			(1,797,096	)	$	(10,325,962	)

71	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in the Subsidiary and IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	755,004,611	$	739,492,339
U.S. government and government agency obligations		77,990,595		85,207,360
To Be Announced (TBA) mortgage-related securities		1,207,855,796		971,057,466

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Next $200 million	0.60
Over $1 billion	0.50

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

The Manager has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee it receives from the Subsidiary. This undertaking will continue in effect for so long as the Fund invests in the Subsidiary and may not be terminated unless approved by the Fund’s Board of Trustees. During the six months ended June 29, 2012, the Manager waived $5,474.

The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investments in IMMF, Oppenheimer Short Duration Fund and the Master Funds. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $631,010 for management fees.

72	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

During the six months ended June 29, 2012, the Manager voluntarily reimbursed the Fund $7,699 for certain transactions. The payment is reported separately in the Statement of Operations and increased the Fund’s total returns by less than .005%.

6. Risk Exposures and the Use of Derivative Instruments

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

73	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

Counterparty Credit Risk. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund’s derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction. As of June 29, 2012, the maximum amount of loss that the Fund would incur if the counterparties to its derivative transactions failed to perform would be $27,017,906, which represents gross payments to be received by the Fund on these derivative contracts were they to be unwound as of period end. To reduce this risk the Fund has entered into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. master agreements, which allow the Fund to net unrealized appreciation and depreciation for certain positions in swaps, over-the-counter options, swaptions, and forward currency exchange contracts for each individual counterparty. The amount of loss that the Fund would incur taking into account these master netting arrangements would be $6,604,318 as of June 29, 2012. In addition, the Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to International Swap and Derivatives Association, Inc. master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fund.

As of June 29, 2012 the Fund has required certain counterparties to post collateral of $13,604,449.

As of June 29, 2012, the aggregate fair value of derivative instruments with credit related contingent features in a net liability position was $3,885,536 for which the Fund has posted collateral of $3,215,701. If a contingent feature would

74	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

have been triggered as of June 29, 2012, the Fund could have been required to pay this amount in cash to its counterparties. If the Fund fails to perform under these contracts and agreements, the cash and/or securities posted as collateral will be made available to the counterparty. Cash posted as collateral for these contracts, if any, is reported on the Statement of Assets and Liabilities; securities posted as collateral, if any, are reported on the Statement of Investments.

Valuations of derivative instruments as of June 29, 2012 are as follows:

Asset Derivatives

Liability Derivatives

Derivatives Not
Accounted for as
Hedging Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Credit contracts

Appreciated swaps,

at value

666,889

Appreciated swaps,

at value

1,659,057

Credit contracts

Depreciated swaps,

at value

397,289

Depreciated swaps,

at value

433,455

Credit contracts

Swaps, at value

68,344

Equity contracts

Appreciated swaps,

at value

2,323,492

Depreciated swaps,

at value

180,167

Interest rate contracts

Appreciated swaps,

at value

821,887

Depreciated swaps,

at value

216,639

Volatility contracts

Appreciated swaps,

at value

1,011,133

Depreciated swaps,

at value

354,379

Equity contracts

Futures margins

81,000

Futures margins

1,271,943

Interest rate contracts

Futures margins

537,166

Futures margins

1,942,139

Foreign exchange contracts

Unrealized appreciation on foreign currency exchange contracts

8,168,663

Unrealized depreciation on foreign currency exchange contracts

10,390,054

Foreign exchange contracts

Closed foreign currency contracts

4,297,334

Closed foreign currency contracts

1,520,675

Foreign exchange contracts

Appreciated options written, at value

785,047

Foreign exchange contracts

Depreciated options written, at value

192,757

Foreign exchange contracts

Options written, at value

28,824

Interest rate contracts

Appreciated options written, at value

12,375

Interest rate contracts

Appreciated swaptions written, at value

1,853,129

Credit contracts

Appreciated swaptions written, at value

18,311

Credit contracts

Depreciated swaptions written, at value

5,263

Interest rate contracts

Depreciated swaptions written, at value

7,178,393

Foreign exchange contracts

Investments, at value

5,839,742

Credit contracts

Investments, at value

49,689

Interest rate contracts

Investments, at value

3,722,952

Total

27,985,580

28,042,607

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.

**Amounts relate to purchased option contracts and purchased swaption contracts, if any.

75	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments from unaffiliated companies (including premiums on options exercised)*			Closing and expiration of swaption contracts written		Closing and expiration of option contracts written		Closing and expiration of futures contracts			Foreign currency transactions			Swap contracts			Total
Credit contracts	$	—		$	12,172	$	—	$	—		$	—		$	(374,581	)	$	(362,409	)
Equity contracts		—			—		—		(2,994,279	)		—			(1,366,177	)		(4,360,456	)
Foreign exchange contracts		(2,732,927	)		—		2,787,992		466,168			(556,221	)		16,034			(18,954	)
Interest rate contracts		(9,675,398	)		4,191,605		3,965,271		7,857,667			—			404,722			6,743,867
Volatility contracts		—			—		—		—			—			2,110,412			2,110,412

Total	$	(12,408,325	)	$	4,203,777	$	6,753,263	$	5,329,556		$	(556,221	)	$	790,410		$	4,112,460

*Includes purchased option contracts, purchased swaption contracts and written option contracts exercised, if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments*			Option contracts written			Swaption contracts written			Futures contracts			Translation of assets and liabilities denominated in foreign currencies		Swap contracts		Total
Credit contracts	$	2,608		$	—		$	632		$	—		$	—	$	348,002	$	351,242
Equity contracts		—			—			—			(1,117,547	)		—		1,773,961		656,414
Foreign exchange contracts		1,983,850			277,256			—			—			514,526		573		2,776,205
Interest rate contracts		(5,616,846	)		(287,128	)		(2,816,493	)		(1,950,532	)		—		72,361		(10,598,638	)
Volatility contracts		—			—			—			—			—		394,253		394,253

Total	$	(3,630,388	)	$	(9,872	)	$	(2,815,861	)	$	(3,068,079	)	$	514,526	$	2,589,150	$	(6,420,524	)

*Includes purchased option contracts and purchased swaption contracts, if any.

Foreign Currency Exchange Contracts

The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.

The Fund has entered into forward foreign currency exchange contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to take a positive investment perspective on the related currency. These forward foreign currency exchange contracts seek to increase exposure to foreign exchange rate risk.

76	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

The Fund has entered into forward foreign currency exchange contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

The Fund has entered into forward foreign currency exchange contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to take a negative investment perspective on the related currency. These forward foreign currency exchange contracts seek to increase exposure to foreign exchange rate risk.

The Fund has entered into forward foreign currency exchange contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

During the six months ended June 29, 2012, the Fund had daily average contract amounts on forward foreign currency contracts to buy and sell of $329,477,040 and $651,691,615, respectively.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty will default.

Futures Contracts

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

The Fund has purchased futures contracts on various equity indexes to increase exposure to equity risk.

The Fund has sold futures contracts on various equity indexes to decrease exposure to equity risk.

The Fund has purchased futures contracts on various currencies to increase exposure to foreign exchange rate risk.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $339,341,055 and $213,803,172 on futures contracts purchased and sold, respectively.

77	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

Option Activity

The Fund has purchased call options on currencies to increase exposure to foreign exchange rate risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has purchased put options on currencies to decrease exposure to foreign exchange rate risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

The Fund has purchased call options on treasury and/or euro futures to increase exposure to interest rate risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has purchased put options on treasury and/or euro futures to decrease exposure to interest rate risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $2,755,085 and $1,162,396 on purchased call options and purchased put options, respectively.

The Fund has written put options on currencies to increase exposure to foreign exchange rate risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has written call options on currencies to decrease exposure to foreign exchange rate risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

The Fund has written call options on treasury and/or euro futures to decrease exposure to interest rate risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

The Fund has written put options on treasury and/or euro futures to increase exposure to interest rate risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $561,513 and $1,068,989 on written call options and written put options, respectively.

78	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Additional associated risks to the Fund include counterparty credit risk for over-the-counter options and liquidity risk.

Written option activity for the six months ended June 29, 2012 was as follows:


	Call Options						Put Options
	Number of Contracts			Amount of Premiums			Number of Contracts			Amount of Premiums
Options outstanding as of December 30, 2011		115,871,391,682		$	2,007,763			134,242,404,666		$	1,464,690
Options written		4,322,949,247			2,760,996			5,447,412,080			9,721,643
Options closed or expired		(118,183,704,994	)		(3,919,353	)		(135,672,386,467	)		(9,208,660	)
Options exercised		(1,380,910,000	)		(330,922	)		(2,313,255,270	)		(378,798	)

Options outstanding as of June 29, 2012		629,725,935		$	518,484			1,704,175,009		$	1,598,875

Swap Contracts

The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps.

Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The values of swap contracts are aggregated by positive and negative values and disclosed separately on the Statement of Assets and Liabilities by contracts in unrealized appreciation and depreciation positions. Upfront payments paid or received, if any, affect the value of the respective swap. Therefore, to determine the unrealized appreciation (depreciation) on swaps, upfront payments paid should be subtracted from, while upfront payments received should be added to, the value of contracts reported as an asset on the Statement of Assets and Liabilities. Conversely, upfront payments paid should be added to, while upfront payments received should be subtracted from the value of contracts reported as a liability. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations.

Swap contract agreements are exposed to the market risk factor of the specific underlying reference asset. Swap contracts are typically more attractively priced compared to similar investments in related cash securities because they isolate the risk to one market risk factor and eliminate the other market risk factors. Investments in cash securities (for instance bonds) have exposure to multiple risk factors (credit and interest rate risk). Because swaps require little or no initial cash investment, they can expose the Fund to substantial risk in the isolated market risk factor.

Credit Default Swap Contracts. A credit default swap is a bilateral contract that enables an investor to buy or sell protection on a debt security against a defined-issuer credit event, such as the issuer’s failure to make timely payments of interest or principal on the debt security, bankruptcy or restructuring. The Fund may enter into credit default swaps either by buying or selling protection on a single security, sovereign debt, or a basket of securities (the “reference asset”).

The buyer of protection pays a periodic fee to the seller of protection based on the notional amount of debt securities underlying the swap contract. The seller of protection agrees to compensate the buyer of protection for future potential losses as a result of a credit event on the reference asset. The contract effectively transfers the credit event risk of the reference asset from the buyer of protection to the seller of protection.

The ongoing value of the contract will fluctuate throughout the term of the contract based primarily on the credit risk of the reference asset. If the credit quality of the reference asset improves relative to the credit quality at contract initiation, the buyer of protection may have an unrealized loss greater than the anticipated periodic fee owed. This

79	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

unrealized loss would be the result of current credit protection being cheaper than the cost of credit protection at contract initiation. If the buyer elects to terminate the contract prior to its maturity, and there has been no credit event, this unrealized loss will become realized. If the contract is held to maturity, and there has been no credit event, the realized loss will be equal to the periodic fee paid over the life of the contract.

If there is a credit event, the buyer of protection can exercise its rights under the contract and receive a payment from the seller of protection equal to the notional amount of the reference asset less the market value of the reference asset. Upon exercise of the contract the difference between the value of the underlying reference asset and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations.

The Fund has sold credit protection through credit default swaps to increase exposure to the credit risk of individual securities and/or, indexes that are either unavailable or considered to be less attractive in the bond market.

The Fund has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and/or, indexes.

For the six months ended June 29, 2012, the Fund had ending monthly average notional amounts of $51,170,375 and $43,637,143 on credit default swaps to buy protection and credit default swaps to sell protection, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Interest Rate Swap Contracts. An interest rate swap is an agreement between counterparties to exchange periodic payments based on interest rates. One cash flow stream will typically be a floating rate payment based upon a specified interest rate while the other is typically a fixed interest rate.

The Fund has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. Typically, if relative interest rates rise, payments made by the Fund under a swap agreement will be greater than the payments received by the Fund.

The Fund has entered into interest rate swaps in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. Typically, if relative interest rates rise, payments received by the Fund under the swap agreement will be greater than the payments made by the Fund.

For the six months ended June 29, 2012, the Fund had ending monthly average notional amounts of $34,135,494 and $76,280,326 on interest rate swaps which pay a fixed rate and interest rate swaps which receive a fixed rate, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Total Return Swap Contracts. A total return swap is an agreement between counterparties to exchange periodic payments based on asset or non-asset references. One cash flow is typically based on a non-asset reference (such as an interest rate or index) and the other on the total return of a reference asset (such as a security or a basket of securities). The total return of the reference asset typically includes appreciation or depreciation on the reference asset, plus any interest or dividend payments.

Total return swap contracts are exposed to the market risk factor of the specific underlying financial instrument or index. Total return swaps are less standard in structure than other types of swaps and can isolate and/or, include multiple types of market risk factors including equity risk, credit risk, and interest rate risk.

The Fund has entered into total return swaps on various equity securities or indexes to increase exposure to equity risk. These equity risk related total return swaps require the Fund to pay a floating reference interest rate, or an amount equal to the negative price movement of securities or an index multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same securities or index multiplied by the notional amount of the contract.

80	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

The Fund has entered into total return swaps on various equity securities or indexes to decrease exposure to equity risk. These equity risk related total return swaps require the Fund to pay an amount equal to the positive price movement of securities or an index multiplied by the notional amount of the contract. The Fund will receive payments of a floating reference interest rate or an amount equal to the negative price movement of the same securities or index multiplied by the notional amount of the contract.

For the six months ended June 29, 2012, the Fund had ending monthly average notional amounts of $51,714,393 and $11,228,926 on total return swaps which are long the reference asset and total return swaps which are short the reference asset, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Currency Swaps. A currency swap is an agreement between counterparties to exchange different currencies equivalent to the notional value at contract inception and reverse the exchange of the same notional values of those currencies at contract termination. The contract may also include periodic exchanges of cash flows based on a specified index or interest rate.

The Fund has entered into currency swap contracts with the obligation to pay an interest rate on various foreign currency notional amounts and receive an interest rate on the dollar notional amount in order to take a negative investment perspective on the related currencies for which the Fund receives a payment. These currency swap contracts seek to decrease exposure to foreign exchange rate risk.

For the six months ended June 29, 2012, the Fund had ending monthly average notional amounts of $314,286 on currency swaps.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

As of June 29, 2012, the Fund had no such currency swap agreements outstanding.

Volatility Swap Contracts. A volatility swap is an agreement between counterparties to exchange periodic payments based on the measured volatility of a reference security, index, currency or other reference investment over a specified time frame. One cash flow is typically based on the volatility of the reference investment as measured by changes in its price or level while the other cash flow is based on an interest rate or the measured volatility of a different reference investment. The appreciation or depreciation on a volatility swap will typically depend on the magnitude of the reference investment’s volatility, or size of the movement, rather than general directional increases or decreases in its price.

Volatility swaps are less standard in structure than other types of swaps and provide pure, or isolated, exposure to volatility risk of the specific underlying reference investment. Volatility swaps are typically used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of investments held by the Fund.

The Fund has entered into volatility swaps to increase exposure to the volatility risk of various reference investments. These types of volatility swaps require the fund to pay the measured volatility and receive a fixed interest payment over the period of the contract. If the measured volatility of the related reference investment increases over the period, the swaps will depreciate in value. Conversely, if the measured volatility of the related reference investment decreases over the period, the swaps will appreciate in value.

The Fund has entered into volatility swaps to decrease exposure to the volatility risk of various reference investments. These types of volatility swaps require the fund to pay a fixed interest payment and receive the measured volatility over the period of the contract. If the measured volatility of the related reference investment increases over the period, the swaps will appreciate in value. Conversely, if the measured volatility of the related reference investment decreases over the period, the swaps will depreciate in value.

81	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

For the six months ended June 29, 2012, the Fund had ending monthly average notional amounts of $96,265 and $548,204 on volatility swaps which pay volatility and volatility swaps which receive volatility, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Swaption Transactions

The Fund may enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. The purchaser pays a premium to the swaption writer who bears the risk of unfavorable changes in the preset terms on the underlying swap.

Swaptions are marked to market daily using primarily portfolio pricing services or quotations from counterparties and brokers. Purchased swaptions are reported as a component of investments in the Statement of Investments, the Statement of Assets and Liabilities and the Statement of Operations. Written swaptions are reported on a schedule following the Statement of Investments and their value is reported as a separate asset or liability line item in the Statement of Assets and Liabilities. The net change in unrealized appreciation or depreciation on written swaptions is separately reported in the Statement of Operations. When a swaption is exercised, the cost of the swap is adjusted by the amount of premium paid or received. Upon the expiration or closing of an unexercised swaption contract, a gain or loss is reported in the Statement of Operations for the amount of the premium paid or received.

The Fund generally will incur a greater risk when it writes a swaption than when it purchases a swaption. When the Fund writes a swaption it will become obligated, upon exercise of the swaption, according to the terms of the underlying agreement. Swaption contracts written by the Fund do not give rise to counterparty credit risk as they obligate the Fund, not its counterparty, to perform. When the Fund purchases a swaption it only risks losing the amount of the premium it paid if the swaption expires unexercised. However, when the Fund exercises a purchased swaption there is a risk that the counterparty will fail to perform or otherwise default on its obligations under the swaption contract.

The Fund has purchased swaptions which gives it the option to sell credit protection through credit default swaps in order to increase exposure to the credit risk of individual securities and, or, indexes. A purchased swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset decreases.

The Fund purchased swaptions which gives it the option to enter into an interest rate swap in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. A purchased swaption of this type becomes more valuable as the reference interest rate depreciates relative to the preset interest rate.

The Fund has purchased swaptions which gives it the option to enter into an interest rate swap in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. A purchased swaption of this type becomes more valuable as the reference interest rate appreciates relative to the preset interest rate.

The Fund has written swaptions which gives it the obligation, if exercised by the purchaser, to enter into an interest rate swap in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. A written swaption of this type becomes more valuable as the reference interest rate depreciates relative to the preset interest rate.

The Fund has written swaptions which gives it the obligation, if exercised by the purchaser, to enter into an interest rate swap in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. A written swaption of this type becomes more valuable as the reference interest rate appreciates relative to the preset interest rate.

The Fund has written swaptions which give it the obligation, if exercised by the purchaser, to sell credit protection through credit default swaps in order to increase exposure to the credit risk of individual securities and/or, indexes. A written swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset decreases.

82	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

The Fund has written swaptions which give it the obligation, if exercised by the purchaser, to buy credit protection through credit default swaps in order to decrease exposure to the credit risk of individual securities and, or, indexes. A written swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset increases.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $5,541,169 and $6,860,303 on purchased and written swaptions, respectively.

Written swaption activity for the six months ended June 29, 2012 was as follows:


	Call Swaptions
	Notional Amount		Amount of Premiums
Swaptions outstanding as of December 30, 2011	$	385,315,000	$	8,188,797
Swaptions written		1,820,740,000		10,976,007
Swaptions closed or expired		(1,759,540,000)		(12,152,785)
Swaptions exercised		(10,005,000)		(152,848)

Swaptions outstanding as of June 29, 2012	$	436,510,000	$	6,859,171

7. Restricted Securities

As of June 29, 2012, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Directors as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.

8. Pending Litigation

83	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

8. Pending Litigation Continued

between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

84	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

SPECIAL SHAREHOLDER MEETING (Unaudited)

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Global Strategic Income Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

358,547,893

19,482,394

14,893,181

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

361,080,204

18,855,930

12,987,334

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

358,491,763

18,973,715

15,457,991

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

358,157,455

19,006,813

15,759,201

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

359,289,237

19,591,634

14,042,597

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

357,467,844

20,137,700

15,317,925

N/A

85	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

SPECIAL SHAREHOLDER MEETING (Unaudited) / Continued

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

359,132,796

19,166,435

14,624,238

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

358,787,656

19,495,268

14,640,545

N/A

2i: Convert the Fund’s investment objective from fundamental to non-fundamental

For

Against

Abstain

Broker Non Vote

354,999,142

20,479,311

17,445,016

N/A

2j: Approve a change in the fund’s investment objective

For

Against

Abstain

Broker Non Vote

358,711,219

19,198,770

15,013,479

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

86	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30^th, no later than August 31^st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

87	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA



		Financial Statements for Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd. for the Six Months Ended June 29, 2012

88	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA (CAYMAN) LTD.

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Cash		1,462,131
Receivables and other assets:
Other		6,824
Total assets		1,468,955
Liabilities
Payables and other liabilities:
Auditing and other professional fees		11,795
Other		4
Total liabilities		11,799
Net Assets	$	1,457,156
Composition of Net Assets
Par value of shares of beneficial interest	$	150
Additional paid-in capital		1,499,850
Accumulated net investment loss		(42,844	)
Net Assets—applicable to 15,000 shares of beneficial interest outstanding	$	1,457,156
Net Asset Value, Redemption Price Per Share and Offering Price Per Share	$97.14

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

89	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA (CAYMAN) LTD.

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Expenses
Management fees	$	5,474
Auditing and other professional fees		12,861
Directors’ compensation		5,939
Custodian fees and expenses		972
Other		117
Total expenses		25,363
Net Investment Loss		(25,363	)
Net Decrease in Net Assets Resulting from Operations	$	(25,363	)
1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

90	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA (CAYMAN) LTD.

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Period Ended December 30, 2011^1,2
Operations
Net investment loss	$	(25,363	)	$	(17,481	)
Net decrease in net assets resulting from operations		(25,363	)		(17,481	)
Capital Transactions
Net increase in net assets resulting from capital transactions		—			1,500,000
Net Assets
Total increase (decrease)		(25,363	)		1,482,519
Beginning of period		1,482,519			—
End of period (including accumulated net investment loss of $42,844 and $17,481, respectively)	$	1,457,156		$	1,482,519

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. For the period from November 21, 2011 (commencement of operations) through December 30, 2011.

See accompanying Notes to Financial Statements.

91	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies

Oppenheimer Global Strategic Income Fund/VA (Cayman) Ltd. (the “Fund”) is organized as a Cayman Islands Company Limited by Shares. The Fund intends to carry on the business of an investment company and to acquire, invest in and hold by way of investment, sell and deal primarily in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts) and exchange traded funds (“ETF”). The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”). The Sub-Adviser is Oppenheimer Real Asset Management, Inc. (“ORAMI” or the “Sub-Adviser”), a wholly-owned subsidiary of the Manager. As of June 29, 2012, 100% of the Fund was owned by Oppenheimer Global Strategic Income Fund/VA (“OGSIFVA”). The Manager is also the investment adviser of OGSIFVA.

The beneficial interest of each investor in the Fund is represented by units of participating shares. The Fund’s directors may further designate classes of participating shares and series within each class. As of June 29, 2012, the directors have not designated classes or series of outstanding participating shares. During the six months ended June 29, 2012, all income, profits, losses and expenses, if any, of the Fund were allocated pro rata to all participating shares of the Fund. Issuance of additional participating shares is at the discretion of the Fund’s directors.

The following is a summary of significant accounting policies consistently followed by the Fund.

Income Taxes. The Fund has received an undertaking from the Government of the Cayman Islands exempting it from all local income, profits and capital gains taxes through September of 2030. No such taxes are levied in the Cayman Islands at the present time. The Fund is a Controlled Foreign Corporation under U.S. tax laws and as such is not subject to U.S. income tax. Therefore, the Fund is not required to record a tax provision.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, if any, are declared and paid annually from the Fund’s tax basis earnings and profits. Distributions are recorded on ex-dividend date. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

92	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

93	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

94	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

3. Capital Transactions

The Fund has authorized 5,000,000 participating shares of $0.01 par value per share. The Fund issued 15,000 participating shares for $1,500,000 on November 21, 2011 in conjunction with OGSI’s initial capitalization of the Fund. All subsequent capital contributions and withdrawals did not have participating shares associated with the transaction.

Capital transactions were as follows:


	Six Months Ended June 29, 2012		Period Ended December 30, 2011¹
	Amount		Amount
Contributions		$—		$ 1,500,000
Withdrawals		—		—

Net increase		$—		$1,500,000

1. For the period from November 21, 2011 (commencement of operations) to December 30, 2011.

4. Expenses

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Next $200 million	0.60
Over $1 billion	0.50

Sub-Adviser Fees. The Manager retains the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser a fee in monthly installments, based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.375	%
Next $200 million	0.360
Next $200 million	0.345
Next $200 million	0.330
Next $200 million	0.300
Over $1 billion	0.250

The Fund shall bear all fees and expenses related to the business and affairs of the Fund, including among others, directors’ fees, audit fees, custodian fees and expenses in connection with the purchase and sale of securities and other Fund assets.

5. Financial Highlights

The following represents the total return of the Fund for the six months ended June 29, 2012. Total return was calculated based upon the daily returns of the Fund during this period. The calculation has not been annualized for reporting purposes:


Six Months Ended June 29, 2012	(1.71	)%
Period Ended December 30, 2011¹	(1.17	)%

95	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

5. Financial Highlights Continued

The following represents certain financial ratios of the Fund for the periods noted. The computation of the net investment income and total expense ratios was based upon the daily net assets of the Fund during these periods. The calculations have been annualized for reporting purposes:


	Six Months Ended June 29, 2012			Period Ended December 30, 2011¹
Ratios to average net assets:
Net investment loss		(3.48	)%		(10.44	)%
Total expenses		3.48	%		10.44	%

1. For the period from November 21, 2011 (commencement of operations) through December 30, 2011.

6. Pending Litigation

96	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by the Manager’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of contract against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees.

7. Subsequent Events Evaluation

The Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through August 16, 2012, the date the financial statements were available to be issued. This evaluation determined that there are no subsequent events that necessitated disclosures and/or adjustments.

97	OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Arthur P. Steinmetz, Vice President Krishna Memani, Vice President Joseph Welsh, Vice President Sara J. Zervos, Ph.D. Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent auditors.


^©2012 OppenheimerFunds, Inc. All rights reserved.

June 30, 2012

Oppenheimer

Value Fund/VA

A Series of Oppenheimer Variable Account Funds

Semiannual

Report

LOGO

SEMIANNUAL REPORT

Fund Performance Discussion

Listing of Top Holdings

Financial Statements

LOGO

OPPENHEIMER VALUE FUND/VA

Portfolio Manager: Mitch Williams, CFA


Cumulative Total Returns For the 6-Month Period Ended 6/29/12¹
Non-Service Shares	5.68%
Service Shares	4.42
Average Annual Total Returns For the Periods Ended 6/29/12¹

	1-Year	5-Year	Since Inception (1/2/03)
Non-Service Shares	–6.27%	0.65%	8.02%

	1-Year	5-Year	Since Inception (9/18/06)
Service Shares	–5.70%	–3.66%	0.01%
Expense Ratios For the Fiscal Year Ended 12/30/11¹

	Gross Expense Ratios		Net Expense Ratios
Non-Service Shares	1.83%		0.80%
Service Shares	1.90		1.05

Sector Allocation

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on the total market value of common stocks.


Top Ten Common Stock Holdings
Chevron Corp.		5.3%
Humana, Inc.		3.8
Coca-Cola Co. (The)		3.8
Honeywell International, Inc.		3.5
Merck & Co., Inc.		3.4
Wells Fargo & Co.		3.2
Target Corp.		3.2
Exxon Mobil Corp.		3.1
UnitedHealth Group, Inc.		3.0
Goldman Sachs Group, Inc. (The)		3.0

Portfolio holdings and allocations are subject to change. Percentages are as of June 29, 2012, and are based on net assets.

2	OPPENHEIMER VALUE FUND/VA

FUND PERFORMANCE DISCUSSION

During the six-month period ended June 29, 2012, the Fund’s Non-Service shares returned 5.68%. In comparison, the Fund underperformed the Russell 1000 Value Index (the “Index”), which returned 8.68%.¹ The Fund underperformed the Index primarily in the industrials and information technology sectors, and underperformed to a lesser degree in the utilities, telecommunication services and materials sectors. The Fund outperformed the Index in the consumer staples sector.

Economic and Market Environment

Fund Review

Four out of the top five performing stocks of the Fund were in the financials sector: Wells Fargo & Co., JPMorgan Chase & Co., U.S. Bancorp and MetLife, Inc. Following another round of bank stress tests by the Federal Reserve in March 2012, stocks of banks, including Wells Fargo, JPMorgan Chase and U.S. Bancorp, rallied. We exited our position in JPMorgan by period end. The stock of insurance company MetLife performed positively early in the period, and we exited our position over the first quarter, locking in gains. Also contributing to performance was consumer discretionary stock Comcast Corp. The cable provider’s high-speed Internet subscriptions increased during the period, which contributed to a positive earnings surprise. Additionally, Comcast aggressively repurchased shares and increased its dividend by over forty percent.

The most significant detractors from the Fund’s performance were Juniper Networks, Inc., Navistar International Corp. and GenOn Energy, Inc. Networking company Juniper experienced declines over the second quarter of 2012, announcing a decrease in revenue. Navistar, a manufacturer of commercial and military trucks, was negatively impacted by higher costs. It also has lost share in the Heavy Duty Class 8 truck market as the company struggles to develop an engine that meets new emissions rules. GenOn Energy is one of the largest generators of wholesale electricity in the United States. Shares of GenOn were hampered by declining natural gas prices, which hit 10-year lows during the period. We continue to believe that GenOn will benefit from its healthy balance sheet and the potential for higher power prices stemming from EPA regulations that may essentially force the closure of several competing power plants.

3	OPPENHEIMER VALUE FUND/VA

FUND PERFORMANCE DISCUSSION

Also hurting performance were Humana, Inc. and Cisco Systems, Inc. Humana, Inc. detracted from results as the managed health care company reported a decrease in profit in its first quarter, breaking a streak of four straight profit increases. Networking company Cisco declined after releasing earnings guidance below analysts’ expectations.

Outlook

We continue to have a tempered view of the global economy as the world continues to delever, with the risk of a European financial crisis or hard landing in China undermining companies’ willingness to invest. We believe that the U.S. currently has better investment prospects than the world’s other developed markets, though we do not believe the U.S. would be immune to worsening problems in Europe. Overall, we expect another year of continued higher volatility as the world continues to struggle with deleveraging, but we believe the U.S. market may be a relative winner in this process.

Our relative optimism on the U.S. stems from lower energy prices, an improving housing market and a general belief that, especially in an election year, the government will not engage in a radical withdrawal of stimulative economic measures. Moreover, the U.S. economy has proven time and time again to be more flexible and adaptive than its larger peers. Given this backdrop, we believe we remain well-positioned in inexpensive names that may perform well in a recovering economy. While we have seen some names in our portfolio move to discounts that we find surprising, we are excited about the prospects that lie ahead for the Fund.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc.

4	OPPENHEIMER VALUE FUND/VA

FUND EXPENSES

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended June 29, 2012.


Actual	Beginning Account Value January 1, 2012		Ending Account Value June 29, 2012		Expenses Paid During 6 Months Ended June 29, 2012
Non-Service Shares	$	1,000.00	$	1,056.80	$	4.08
Service Shares		1,000.00		1,044.20		5.32

Hypothetical (5% return before expenses)
Non-Service Shares		1,000.00		1,020.77		4.01
Service Shares		1,000.00		1,019.53		5.26


Class	Expense Ratios
Non-Service Shares		0.80	%
Service Shares		1.05

5	OPPENHEIMER VALUE FUND/VA

STATEMENT OF INVESTMENTS June 29, 2012* / Unaudited


	Shares		Value

Common Stocks—97.9%
Consumer Discretionary—9.7%
Automobiles—1.4%
Ford Motor Co.		10,120	$	97,051
Household Durables—2.3%
Mohawk Industries, Inc.¹		2,330		162,704
Media—2.7%
Comcast Corp., Cl. A		5,050		161,449
Viacom, Inc., Cl. B		720		33,854

				195,303
Multiline Retail—3.2%
Target Corp.		3,940		229,269
Specialty Retail—0.1%
Talbots, Inc. (The)¹		1,940		4,889
Consumer Staples—8.2%
Beverages—6.9%
Coca-Cola Co. (The)		3,410		266,628
Molson Coors Brewing Co., Cl. B, Non-Vtg.		3,600		149,796
PepsiCo, Inc.		1,010		71,367

				487,791
Household Products—1.3%
Church & Dwight Co., Inc.		1,630		90,416
Energy—11.6%
Energy Equipment & Services—1.6%
Baker Hughes, Inc.		2,650		108,915
Oil, Gas & Consumable Fuels—10.0%
Apache Corp.		710		62,402
Chevron Corp.		3,570		376,635
Exxon Mobil Corp.		2,574		220,257
Valero Energy Corp.		2,110		50,957

				710,251
Financials—22.0%
Capital Markets—5.2%
BlackRock, Inc.		920		156,234
Goldman Sachs Group, Inc. (The)		2,180		208,975

				365,209
Commercial Banks—9.8%
M&T Bank Corp.		1,900		156,883
PNC Financial Services Group, Inc.		1,690		103,276
SunTrust Banks, Inc.		5,350		129,631
U.S. Bancorp		2,260		72,682
Wells Fargo & Co.		6,880		230,067

				692,539


	Shares		Value

Diversified Financial Services—2.5%
Citigroup, Inc.		6,440	$	176,520
Insurance—4.5%
ACE Ltd.		2,360		174,947
Marsh & McLennan Cos., Inc.		1,980		63,815
Travelers Cos., Inc. (The)		1,300		82,992

				321,754
Health Care—15.2%
Health Care Equipment & Supplies—1.3%
Baxter International, Inc.		1,810		96,202
Health Care Providers & Services—6.8%
Humana, Inc.		3,460		267,942
UnitedHealth Group, Inc.		3,610		211,185

				479,127
Pharmaceuticals—7.1%
Merck & Co., Inc.		5,800		242,150
Pfizer, Inc.		6,700		154,100
Teva Pharmaceutical Industries Ltd., Sponsored ADR		2,690		106,094

				502,344
Industrials—9.4%
Aerospace & Defense—3.5%
Honeywell International, Inc.		4,380		244,579
Airlines—0.5%
United Continental Holdings, Inc.¹		1,420		34,549
Construction & Engineering—1.1%
Quanta Services, Inc.¹		3,100		74,617
Industrial Conglomerates—2.0%
Tyco International Ltd.		2,700		142,695
Machinery—0.7%
Navistar International Corp.¹		1,870		53,052
Trading Companies & Distributors—1.6%
AerCap Holdings NV¹		10,290		116,071
Information Technology—8.8%
Communications Equipment—4.6%
Cisco Systems, Inc.		7,570		129,977
Juniper Networks, Inc.¹		11,910		194,252

				324,229
Electronic Equipment & Instruments—1.9%
TE Connectivity Ltd.		4,360		139,128
Semiconductors & Semiconductor Equipment—2.3%
Analog Devices, Inc.		1,960		73,833
Xilinx, Inc.		2,650		88,961

				162,794

6	OPPENHEIMER VALUE FUND/VA


	Shares		Value
Materials—4.0%
Chemicals—2.5%
Celanese Corp., Series A		950	$	32,889
Mosaic Co. (The)		2,670		146,209

				179,098
Containers & Packaging—1.5%
Rock-Tenn Co., Cl. A		1,880		102,554
Telecommunication Services—2.8%
Diversified Telecommunication Services—2.8%
AT&T, Inc.		2,972		105,982
Verizon Communications, Inc.		2,020		89,769

				195,751
Utilities—6.2%
Electric Utilities—3.7%
American Electric Power Co., Inc.		2,160		86,184
Edison International, Inc.		3,800		175,560
				261,744
Energy Traders—1.0%
GenOn Energy, Inc.¹		44,550		76,181
Multi-Utilities—1.5%
NiSource, Inc.		1,630		40,343
Public Service Enterprise Group, Inc.		1,980		64,346

				104,689
Total Common Stocks (Cost $6,528,371)				6,932,015


	Expiration Date		Strike Price		Contracts			Value
Options Purchased—0.0%
Humana, Inc. Put¹		7/23/12	$	72.500		5		$	150
Humana, Inc. Put¹		8/20/12		67.500		5			250
UnitedHealth Group, Inc. Put¹		7/23/12		55.000		8			360
UnitedHealth Group, Inc. Put¹		8/20/12		52.500		8			480

Total Options Purchased (Cost $2,559)									1,240

					Shares
Investment Company—4.1%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.20%^2,3 (Cost $289,326)						289,326			289,326
Total Investments, at Value (Cost $6,820,256)						102.0	%		7,222,581
Liabilities in Excess of Other Assets						(2.0	)		(141,771	)
Net Assets						100.0	%	$	7,080,810

Footnotes to Statement of Investments

* June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

1. Non-income producing security.


	Shares December 30, 2011^a		Gross Additions		Gross Reductions		Shares June 29, 2012
Oppenheimer Institutional Money Market Fund, Cl. E		374,186		2,019,924		2,104,784		289,326

					Value		Income
Oppenheimer Institutional Money Market Fund, Cl. E						$289,326		$334

a. December 30, 2011 represents the last business day of the Fund’s 2011 fiscal year. See Note 1 of the accompanying Notes.

3. Rate shown is the 7-day yield as of June 29, 2012.

See accompanying Notes to Financial Statements.

7	OPPENHEIMER VALUE FUND/VA

STATEMENT OF ASSETS AND LIABILITIES Unaudited


June 29, 2012¹
Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $6,530,930)	$	6,933,255
Affiliated companies (cost $289,326)		289,326
		7,222,581
Cash		2,309
Receivables and other assets:
Investments sold		73,599
Dividends		7,885
Shares of beneficial interest sold		2,486
Other		6,576
Total assets		7,315,436
Liabilities
Payables and other liabilities:
Investments purchased		193,659
Shareholder communications		20,803
Legal, auditing and other professional fees		9,913
Trustees’ compensation		5,620
Distribution and service plan fees		1,351
Shares of beneficial interest redeemed		662
Transfer and shareholder servicing agent fees		569
Other		2,049
Total liabilities		234,626
Net Assets	$	7,080,810
Composition of Net Assets
Par value of shares of beneficial interest	$	711
Additional paid-in capital		7,892,561
Accumulated net investment income		36,726
Accumulated net realized loss on investments and foreign currency transactions		(1,251,513	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		402,325
Net Assets	$	7,080,810
Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $124,791 and 14,985 shares of beneficial interest outstanding)		$8.33
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $6,956,019 and 695,731 shares of beneficial interest outstanding)		$10.00

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

8	OPPENHEIMER VALUE FUND/VA

STATEMENT OF OPERATIONS Unaudited


For the Six Months Ended June 29, 2012¹
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $354)	$	82,070
Affiliated companies		334
Interest		21
Total investment income		82,425
Expenses
Management fees		27,223
Distribution and service plan fees—Service shares		8,922
Transfer and shareholder servicing agent fees:
Non-Service shares		61
Service shares		3,569
Shareholder communications:
Non-Service shares		269
Service shares		14,562
Legal, auditing and other professional fees		12,116
Trustees’ compensation		4,350
Administration service fees		750
Custodian fees and expenses		620
Other		2,144
Total expenses		74,586
Less waivers and reimbursements of expenses		(36,624	)
Net expenses		37,962
Net Investment Income		44,463
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments from unaffiliated companies		100,887
Foreign currency transactions		2
Net realized gain		100,889
Net change in unrealized appreciation/depreciation on:
Investments		158,301
Translation of assets and liabilities denominated in foreign currencies		(5	)
Net change in unrealized appreciation/depreciation		158,296

Net Increase in Net Assets Resulting from Operations	$	303,648

1. June 29, 2012 represents the last business day of the Fund’s 2012 semiannual period. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

9	OPPENHEIMER VALUE FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended June 29, 2012¹ (Unaudited)			Year Ended December 30, 2011¹
Operations
Net investment income	$	44,463		$	82,226
Net realized gain		100,889			600,874
Net change in unrealized appreciation/depreciation		158,296			(1,040,601	)
Net increase (decrease) in net assets resulting from operations		303,648			(357,501	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(1,809	)		(904	)
Service shares		(81,182	)		(66,745	)
		(82,991	)		(67,649	)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		17,019			17,714
Service shares		(146,299	)		(6,322	)
		(129,280	)		11,392
Net Assets
Total increase (decrease)		91,377			(413,758	)
Beginning of period		6,989,433			7,403,191
End of period (including accumulated net investment income of $36,726 and $75,254, respectively)	$	7,080,810		$	6,989,433

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

10	OPPENHEIMER VALUE FUND/VA

FINANCIAL HIGHLIGHTS


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Non-Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period	$	8.00		$	8.49		$	7.22		$	4.99		$	11.73		$	11.58
Income (loss) from investment operations:
Net investment income²		.08			.15			.11			.11			.12			.10
Net realized and unrealized gain (loss)		.37			(.56	)		1.24			2.14			(4.44	)		.59
Total from investment operations		.45			(.41	)		1.35			2.25			(4.32	)		.69
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.12	)		(.08	)		(.08	)		(.02	)		(2.42	)		(.10	)
Distributions from net realized gain		—			—			—			—			—			(.44	)
Total dividends and/or distributions to shareholders		(.12	)		(.08	)		(.08	)		(.02	)		(2.42	)		(.54	)
Net asset value, end of period	$	8.33		$	8.00		$	8.49		$	7.22		$	4.99		$	11.73
Total Return, at Net Asset Value³	5.68%			(4.93)%			18.85%			45.08%			(36.43)%			5.89%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$125			$104			$92			$38			$ 6			$1,728
Average net assets (in thousands)		$122			$101			$57			$20			$857			$2,753
Ratios to average net assets:⁴
Net investment income		1.92	%		1.78	%		1.46	%		1.75	%		1.07	%		0.80	%
Total expenses⁵		1.95	%		1.83	%		2.05	%		2.30	%		1.48	%		1.49	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80	%		0.80	%		0.57	%		0.85	%		1.25	%		1.25	%
Portfolio turnover rate		54	%		86	%		109	%		122	%		175	%		142	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	1.95	%
Year Ended December 30, 2011	1.83	%
Year Ended December 31, 2010	2.05	%
Year Ended December 31, 2009	2.31	%
Year Ended December 31, 2008	1.48	%
Year Ended December 31, 2007	1.49	%

See accompanying Notes to Financial Statements.

11	OPPENHEIMER VALUE FUND/VA

FINANCIAL HIGHLIGHTS Continued


	Six Months Ended June 29, 2012¹			Year Ended December 30,			Year Ended December 31,
Service Shares	(Unaudited)			2011¹			2010			2009			2008			2007

Per Share Operating Data
Net asset value, beginning of period		$ 9.69			$10.23			$ 8.99			$6.79			$11.75			$11.57
Income (loss) from investment operations:
Net investment income²		.06			.11			.08			.09			.08			.06
Net realized and unrealized gain (loss)		.37			(.56	)		1.24			2.12			(4.97	)		.60
Total from investment operations		.43			(.45	)		1.32			2.21			(4.89	)		.66
Dividends and/or distributions to shareholders:
Dividends from net investment income		(.12	)		(.09	)		(.08	)		(.01	)		(.07	)		(.04	)
Distributions from net realized gain		—			—			—			—			—			(.44	)
Total dividends and/or distributions to shareholders		(.12	)		(.09	)		(.08	)		(.01	)		(.07	)		(.48	)
Net asset value, end of period		$10.00			$ 9.69			$10.23			$8.99			$ 6.79			$11.75
Total Return, at Net Asset Value³	4.42%			(4.48)%			14.81%			32.57%			(41.62)%			5.70%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,956			$6,885			$7,311			$7,505			$4,690			$6,481
Average net assets (in thousands)		$7,177			$7,449			$7,008			$5,501			$5,561			$3,527
Ratios to average net assets:⁴
Net investment income		1.21	%		1.08	%		0.85	%		1.10	%		0.84	%		0.49	%
Total expenses⁵		2.06	%		1.90	%		2.08	%		2.17	%		2.13	%		1.63	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05	%		1.05	%		0.93	%		1.15	%		1.50	%		1.50	%
Portfolio turnover rate		54	%		86	%		109	%		122	%		175	%		142	%

1. June 29, 2012 and December 30, 2011 represent the last business days of the Fund’s respective reporting periods. See Note 1 of the accompanying Notes.

2. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund were as follows:


Six Months Ended June 29, 2012	2.06	%
Year Ended December 30, 2011	1.90	%
Year Ended December 31, 2010	2.08	%
Year Ended December 31, 2009	2.18	%
Year Ended December 31, 2008	2.13	%
Year Ended December 31, 2007	1.63	%

See accompanying Notes to Financial Statements.

12	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited

1. Significant Accounting Policies

Oppenheimer Value Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to seek long-term growth of capital by investing primarily in common stocks with low price earnings ratios and better-than-anticipated earnings. Realization of current income is a secondary consideration. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The following is a summary of significant accounting policies consistently followed by the Fund.

13	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

1. Significant Accounting Policies Continued

During the fiscal year ended December 30, 2011, the Fund utilized $652,156 of capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October losses of $85,825. Details of the fiscal year ended December 30, 2011 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring
2016	$	204,829
2017		999,882
No expiration		85,825

Total	$	1,290,536

As of June 29, 2012, it is estimated that the capital loss carryforwards would be $1,189,647 expiring by 2017. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended June 29, 2012, it is estimated that the Fund will utilize $100,889 of capital loss carryforward to offset realized capital gains.


Federal tax cost of securities	$	6,953,345


Gross unrealized appreciation	$	669,230
Gross unrealized depreciation		(399,994)

Net unrealized appreciation	$	269,236

14	OPPENHEIMER VALUE FUND/VA

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

15	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.

16	OPPENHEIMER VALUE FUND/VA


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Classifications

Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

17	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Securities Valuation Continued

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of June 29, 2012 based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	689,216	$	—	$	—	$	689,216
Consumer Staples		578,207		—		—		578,207
Energy		819,166		—		—		819,166
Financials		1,556,022		—		—		1,556,022
Health Care		1,077,673		—		—		1,077,673
Industrials		665,563		—		—		665,563
Information Technology		626,151		—		—		626,151
Materials		281,652		—		—		281,652
Telecommunication Services		195,751		—		—		195,751
Utilities		442,614		—		—		442,614
Options Purchased		1,240		—		—		1,240
Investment Company		289,326		—		—		289,326

Total Assets	$	7,222,581	$	—	$	—	$	7,222,581

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

3. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Six Months Ended June 29, 2012						Year Ended December 30, 2011
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		3,210			$ 27,707			4,906			$ 40,931
Dividends and/or distributions reinvested		219			1,809			101			904
Redeemed		(1,500	)		(12,497	)		(2,787	)		(24,121	)

Net increase		1,929			$ 17,019			2,220			$ 17,714


Service Shares
Sold		38,159			$ 395,579			114,846			$ 1,183,318
Dividends and/or distributions reinvested		8,159			81,182			6,285			66,745
Redeemed		(61,321	)		(623,060	)		(125,191	)		(1,256,385	)

Net decrease		(15,003	)		$(146,299	)		(4,060	)		$ (6,322	)

18	OPPENHEIMER VALUE FUND/VA

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended June 29, 2012, were as follows:


	Purchases		Sales
Investment securities	$	3,748,192	$	3,736,391

5. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Over $800 million	0.60

Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund’s tax returns.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the six months ended June 29, 2012, the Manager waived fees and/or reimbursed the Fund $696 and $35,778 for Non-Service and Service shares, respectively.

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

6. Risk Exposures and the Use of Derivative Instruments

19	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors.

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

The Fund’s actual exposures to these market risk factors during the period are discussed in further detail, by derivative type, below.

20	OPPENHEIMER VALUE FUND/VA

Valuations of derivative instruments as of June 29, 2012 are as follows:

* Amounts relate to purchased options.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments from unaffiliated companies*
Volatility contracts		$(25,532	)

* Includes purchased option contracts and purchased swaption contracts, if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments*
Equity contracts		$(1,319	)
Volatility contracts		14,149

Total		$12,830

* Includes purchased option contracts and purchased swaption contracts, if any.

21	OPPENHEIMER VALUE FUND/VA

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

6. Risk Exposures and the Use of Derivative Instruments Continued

Option Activity

The Fund has purchased call options on volatility indexes to increase exposure to volatility risk. A purchased call option becomes more valuable as the level of the underlying volatility index increases relative to the strike price.

During the six months ended June 29, 2012, the Fund had an ending monthly average market value of $1,276 and $177 on purchased call options and purchased put options, respectively.

Additional associated risks to the Fund include counterparty credit risk for over-the-counter options and liquidity risk.

As of June 29, 2012, the Fund had no outstanding written options.

7. Pending Litigation

22	OPPENHEIMER VALUE FUND/VA

enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. On July 29, 2011, a stipulation of settlement between certain affiliates of the Manager and the Trustee appointed under the Securities Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern District of New York to resolve purported preference and fraudulent transfer claims by the Trustee. On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and adequate. In October 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against the Manager and its affiliates relating to BLMIS.

23	OPPENHEIMER VALUE FUND/VA

SPECIAL SHAREHOLDER MEETING Unaudited

On February 29, 2012, a shareholder meeting of the Oppenheimer Variable Account Funds, on behalf of Oppenheimer Value Fund/VA (the “Fund”) was held at which the twelve Trustees identified below were elected to the Trust (Proposal No. 1). At the meeting Proposal No. 2 (including all of its sub-proposals) and Proposal No. 3 were approved as described in the Fund’s proxy statement for that meeting. The following is a report of the votes cast:


Nominee/Proposal	For		Withheld
Trustees
William L. Armstrong		859,155,000		36,277,763
Edward L. Cameron		860,463,149		34,969,615
Jon S. Fossel		861,382,389		34,050,375
Sam Freedman		860,173,958		35,258,806
Richard F. Grabish		862,692,974		32,739,789
Beverly L. Hamilton		862,904,192		32,528,571
Robert J. Malone		862,354,488		33,078,275
F. William Marshall, Jr.		860,997,182		34,435,581
Victoria J. Herget		861,814,105		33,618,659
Karen L. Stuckey		861,434,246		33,998,517
James D. Vaughn		861,208,178		34,224,585
William F. Glavin, Jr.		861,148,846		34,283,917

2a: Proposal to revise the fundamental policy relating to borrowing

For

Against

Abstain

Broker Non Vote

533,826

14,414

21,771

N/A

2b: Proposal to revise the fundamental policy relating to concentration of investments

For

Against

Abstain

Broker Non Vote

533,826

14,414

21,771

N/A

2c: Proposal to remove the fundamental policy relating to diversification of investments

For

Against

Abstain

Broker Non Vote

531,949

14,414

23,647

N/A

2d: Proposal to revise the fundamental policy relating to lending

For

Against

Abstain

Broker Non Vote

539,895

8,345

21,771

N/A

2e-1: Proposal to revise the fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

531,949

16,290

21,771

N/A

2e-2: Proposal to remove the additional fundamental policy relating to real estate and commodities

For

Against

Abstain

Broker Non Vote

531,949

14,414

23,647

N/A

24	OPPENHEIMER VALUE FUND/VA

2f: Proposal to revise the fundamental policy relating to senior securities

For

Against

Abstain

Broker Non Vote

539,895

8,345

21,771

N/A

2g: Proposal to revise the fundamental policy relating to underwriting

For

Against

Abstain

Broker Non Vote

539,895

8,345

21,771

N/A

For

Against

Abstain

Broker Non Vote

821,085,084

23,597,959

50,749,721

N/A

25	OPPENHEIMER VALUE FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;

UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

26	OPPENHEIMER VALUE FUND/VA

OPPENHEIMER VALUE FUND/VA


A Series of Oppenheimer Variable Account Funds
Trustees and Officers		William L. Armstrong, Chairman of the Board of Trustees and Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly L. Hamilton, Trustee Victoria J. Herget, Trustee Robert J. Malone, Trustee F. William Marshall, Jr., Trustee Karen L. Stuckey, Trustee James D. Vaughn, Trustee William F. Glavin, Jr., Trustee, President and Principal Executive Officer Mitch Williams, Vice President Arthur S. Gabinet, Secretary and Chief Legal Officer Christina M. Nasta, Vice President and Chief Business Officer Mark S. Vandehey, Vice President and Chief Compliance Officer Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager		OppenheimerFunds, Inc.
Distributor		OppenheimerFunds Distributor, Inc.
Transfer Agent		OppenheimerFunds Services
Independent Registered Public Accounting Firm		KPMG LLP
Counsel		K&L Gates LLP

The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.


^©2012 OppenheimerFunds, Inc. All rights reserved.

Item 2. Code of Ethics.

Not applicable to semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable to semiannual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable to semiannual reports.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards

The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection.

The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as

defined in the Investment Company Act of 1940; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder.

The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following:

•

the name, address, and business, educational, and/or other pertinent background of the person being recommended;

•

a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940;

•

any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and

•

the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares.

The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation.

Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds’ investment adviser) would be deemed an “interested person” under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds’ outside legal counsel may cause a person to be deemed an “interested person.”

Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company.

Item 11. Controls and Procedures.

Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 6/29/2012, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Not applicable to semiannual reports.

(2) Exhibits attached hereto.

(3) Not applicable.

(b)	Exhibit attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Oppenheimer Variable Account Funds



By:		/s/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer
Date:		8/9/2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



By:		/s/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer
Date:		8/9/2012



By:		/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer
Date:		8/9/2012