N-SAR EXHIBIT 77E


Pending Litigation. Since 2009, a number of lawsuits have been filed in federal
courts against the Manager, the Distributor, and certain funds in the
Oppenheimer family of funds (the "Defendant Funds") advised by the Manager and
distributed by the Distributor (but not against the Fund). The lawsuits naming
the Defendant Funds also name certain officers, trustees and former trustees of
the respective Defendant Funds. The plaintiffs seek class action status on
behalf of purchasers of shares of the respective Defendant Fund during a
particular time period. The lawsuits against the Defendant Funds raise claims
under federal securities laws alleging that, among other things, the disclosure
documents of the respective Defendant Fund contained misrepresentations and
omissions, that such Defendant Fund's investment policies were not followed, and
that such Defendant Fund and the other defendants violated federal securities
laws and regulations. The plaintiffs seek unspecified damages, equitable relief
and an award of attorneys' fees and litigation expenses. Additionally, in 2009,
lawsuits were filed in state court against the Manager, the Distributor and
another subsidiary of the Manager (but not against the Fund), on behalf of the
New Mexico Education Plan Trust. These lawsuits allege breach of contract,
breach of fiduciary duty, negligence and violation of state securities laws, and
seek compensatory damages, equitable relief and an award of attorneys' fees and
litigation expenses.

         Other lawsuits have been filed since 2008 in various state and federal
courts, by investors who made investments through an affiliate of the Manager,
against the Manager and certain of its affiliates. Those lawsuits relate to the
alleged investment fraud perpetrated by Bernard Madoff and his firm ("Madoff")
and allege 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 an award of attorneys' fees and litigation
expenses. None of the suits have named the Distributor, any of the Oppenheimer
mutual funds or any of their independent Trustees or Directors. None of the
Oppenheimer funds invested in any funds or accounts managed by Madoff.

         The Manager believes that the lawsuits described above are without
legal merit and intends to defend them vigorously. The Defendant Funds' Boards
of Trustees have also engaged counsel to defend the suits vigorously on behalf
of those Funds, their boards and the individual Trustees named in those suits.
The Manager believes that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to it and that no estimate can be made with
any degree of certainty as to the amount or range of any potential loss. The
Manager also 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 the suits together should not have any material effect
on the operations of any of the Oppenheimer Funds.