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 including the Fund). The lawsuits naming
the Defendant Funds also name as defendants 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 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, against the Manager and certain of its affiliates. Those lawsuits were
filed by investors who made investments through an affiliate of the Manager, and
relate to the alleged investment fraud perpetrated by Bernard Madoff and his
firm ("Madoff"). Those suits 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
as defendants. 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 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 funds.