-------------------------------
Semiannual Report June 30, 1999
-------------------------------
Growth Portfolio
A Series of Panorama Series Fund, Inc.
[logo]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
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Panorama Series Fund, Inc.--Growth Portfolio
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================================================================================
Objective
Panorama Series Fund, Inc.--Growth Portfolio seeks 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.
================================================================================
Narrative by Peter Antos and Team, Portfolio Managers
The Portfolio's cumulative total return for the six-month period that ended June
30, 1999 was 3.00%.1 During this period, the stock market saw what we believe
may be the start of a fundamental change in investor sentiment. Early in the
year, we saw a continuation of a longstanding trend in the market favoring
large, highly valued growth stocks over the solid, undervalued companies in
which the Portfolio invests. During the second half of the period, however,
value stocks began to outperform growth stocks. While we remain disappointed
with the Portfolio's performance overall, we are encouraged that undervalued
stocks with low price/earnings ratios have begun to reward investors for their
perseverance.
Historically, undervalued stocks have proven to be bargains over the
long term. However, beginning in the summer of 1997 when currency devaluations
in emerging Asian markets triggered the start of a global currency and credit
crisis, investors sought the safety of the largest and most visible companies.
These were generally large, growth-oriented companies with a history of
relatively predictable earnings. Stocks that did not meet these growth
criteria--including value-oriented stocks selling at attractive prices relative
to earnings--typically lagged the averages.
Starting in April of this year, the investment environment began to
change again. Evidence emerged that the global financial crisis was finally
abating, suggesting that the worst might be over for markets in Asia, Latin
America and Western Europe. The U.S. economy defied most analysts' expectations
by continuing to grow robustly. In fact, the Federal Reserve Board, which
reduced key short-term interest rates three times last fall in an attempt to
stimulate global economic growth, raised interest rates modestly in late June in
an effort to forestall a possible reacceleration of inflation.
In this current economic climate, with long-term interest rates no
longer at historically low levels and growth stocks at historically high
valuations, investors began to turn their attention to stocks selling at
inexpensive prices relative to their potential earnings. As a result, many value
stocks began to outperform formerly high-flying growth stocks during the second
half of the reporting period. We took advantage of this shift in investor
sentiment by increasing the number of stocks in our portfolio, and by expanding
our focus from mostly large-cap companies to include a larger percentage of
mid-cap holdings. That's because mid-cap companies had not participated fully in
the market's 1998 and first-quarter 1999 advances. We believed that some of the
best-managed companies in the mid-cap range were poised to benefit from renewed
investor interest. In making these moves, we also attempted to diversify more
broadly so that disappointments in any single industry or company would have a
smaller impact on the overall portfolio.
In addition, we increased our exposure to economic sectors such as
basic materials, energy and utilities. We also changed our holdings within
certain sectors. In the financial services industry, we reduced our holdings of
large, money-center banks in favor of mid-sized regional banks and insurance
companies. That's because large banks' stock prices had gotten expensive
relative to earnings, while mid-sized banks and insurance companies were
attractively valued compared to historical norms.
Because the stock market can be volatile, the Fund's performance may be subject
to substantial short-term changes. For updates on the Fund's performance, please
contact your financial advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
1. Includes changes in net asset value per share and
does not include the charges associated with the separate account products which
offer this Fund. Such performance is not annualized and would have been lower if
such charges were taken into account.
2 Growth Portfolio
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Panorama Series Fund, Inc.--Growth Portfolio
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For example, one of the Portfolio's largest holdings was Cigna Corp., a
multi-line insurance company. Cigna Corp.'s stock was attractive to us because
the company has been undergoing a strategic restructuring that is transforming
it into a healthcare giant. We believed that this transition was being achieved
successfully by the company's management, as evidenced recently by strong
earnings. As more investors have begun to recognize Cigna Corp.'s
transformation, its stock has been rewarded with an improved valuation, making
it one of the Portfolio's more successful holdings during the reporting period.
Another top-performing stock was IBM Corp., which has undergone its own
transformation from a computer hardware company to a computer solutions provider
emphasizing consulting services and software. The latter is a higher margin and
faster growing business, so IBM Corp.'s stock has advanced dramatically.
Of course, it is impossible to determine at this point if the recent
trend toward value will persist in the period immediately ahead, but we believe
that our strategy continues to offer investors the potential for attractive
long-term total return through investments in undervalued stocks. That's why
Panorama Series Fund, Inc.--Growth Portfolio remains part of The Right Way to
Invest.
Growth Portfolio 3
<PAGE>
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Statement of Investments June 30, 1999 (Unaudited)
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<TABLE>
<CAPTION>
Market Value
Shares Note 1
<S> <C> <C>
==================================================================================================================
Common Stocks--95.8%
==================================================================================================================
Basic Materials--2.1%
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Chemicals--1.5%
Dow Chemical Co. 28,300 $ 3,590,562
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Engelhard Corp. 75,200 1,701,400
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International Flavors & Fragrances, Inc. 54,900 2,436,187
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Rohm & Haas Co. 127,700 5,475,137
------------
13,203,286
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Paper--0.6%
Louisiana-Pacific Corp. 208,400 4,949,500
==================================================================================================================
Capital Goods--8.6%
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Aerospace/Defense--2.5%
Cordant Technologies, Inc. 38,900 1,757,794
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General Dynamics Corp. 229,600 15,727,600
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Northrop Grumman Corp. 62,500 4,144,531
------------
21,629,925
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Electrical Equipment--0.6%
SPX Corp.(1) 62,600 5,227,100
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Industrial Services--1.4%
Valassis Communications, Inc.(1) 70,800 2,593,050
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Viad Corp. 302,500 9,358,594
------------
11,951,644
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Manufacturing--4.1%
Briggs & Stratton Corp. 78,700 4,544,925
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ITT Industries, Inc. 107,800 4,109,875
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Textron, Inc. 52,300 4,304,944
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Tyco International Ltd. 56,800 5,381,800
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United Technologies Corp. 233,000 16,703,187
------------
35,044,731
==================================================================================================================
Communication Services--13.2%
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Telecommunications: Long Distance--6.2%
ALLTELL Corp. 196,500 14,049,750
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AT&T Corp. 466,200 26,019,787
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L-3 Communications Holdings, Inc.(1) 76,500 3,695,906
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Sprint Corp. (Fon Group) 171,400 9,052,062
------------
52,817,505
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Telephone Utilities--7.0%
Ameritech Corp. 207,300 15,236,550
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Bell Atlantic Corp. 265,800 17,376,675
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BellSouth Corp. 192,200 9,009,375
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GTE Corp. 124,600 9,438,450
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U S West, Inc. 152,400 8,953,500
------------
60,014,550
</TABLE>
4 Growth Portfolio
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Statement of Investments (Unaudited) (Continued)
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<TABLE>
<CAPTION>
Market Value
Shares Note 1
<S> <C> <C>
==================================================================================================================
Consumer Cyclicals--12.3%
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Autos & Housing--5.0%
Cooper Tire & Rubber Co. 111,300 $ 2,629,462
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Ford Motor Co. 84,000 4,740,750
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Genuine Parts Co. 279,600 9,786,000
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Martin Marietta Materials, Inc. 65,400 3,858,600
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Maytag Corp. 139,100 9,693,531
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Southdown, Inc. 52,700 3,385,975
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USG Corp. 79,100 4,429,600
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Vulcan Materials Co. 83,900 4,048,175
------------
42,572,093
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Consumer Services--1.2%
Harte-Hanks, Inc. 73,600 1,996,400
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Hertz Corp., Cl. A 127,200 7,886,400
------------
9,882,800
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Leisure & Entertainment--1.1%
Hasbro, Inc. 147,900 4,131,956
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Mandalay Resort Group(1) 115,500 2,439,937
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MGM Grand, Inc.(1) 53,800 2,636,200
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9,208,093
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Media--1.8%
Deluxe Corp. 68,800 2,678,900
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Gannett Co., Inc. 111,400 7,951,175
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Knight-Ridder, Inc. 83,400 4,581,787
------------
15,211,862
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Retail: General--1.0%
May Department Stores Co. 201,400 8,232,225
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Retail: Specialty--1.1%
Ross Stores, Inc. 69,400 3,496,025
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TJX Cos., Inc. 166,800 5,556,525
------------
9,052,550
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Textile/Apparel & Home Furnishings--1.1%
Shaw Industries, Inc.(1) 184,200 3,039,300
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VF Corp. 142,500 6,091,875
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9,131,175
==================================================================================================================
Consumer Staples--8.5%
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Beverages--0.9%
Anheuser-Busch Cos., Inc. 109,300 7,753,469
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Entertainment--0.3%
Brinker International, Inc.(1) 83,200 2,262,000
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Food--1.7%
General Mills, Inc. 65,400 5,256,525
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Hormel Foods Corp. 78,900 3,175,725
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IBP, Inc. 272,400 6,469,500
------------
14,901,750
</TABLE>
Growth Portfolio 5
<PAGE>
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Statement of Investments (Unaudited) (Continued)
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<TABLE>
<CAPTION>
Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--2.3%
Albertson's, Inc. 242,300 $ 12,493,594
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SUPERVALU, Inc. 284,300 7,302,956
------------
19,796,550
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Household Goods--2.3%
Kimberly-Clark Corp. 169,100 9,638,700
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Premark International, Inc. 262,300 9,836,250
------------
19,474,950
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Tobacco--1.0%
Philip Morris Cos., Inc. 212,200 8,527,787
==================================================================================================================
Energy--6.9%
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Energy Services--0.9%
Anadarko Petroleum Corp. 67,100 2,470,119
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ENSCO International, Inc. 129,000 2,571,937
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Global Marine, Inc.(1) 161,000 2,485,437
------------
7,527,493
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Oil: Domestic--4.5%
Apache Corp. 67,100 2,616,900
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Burlington Resources, Inc. 53,700 2,322,525
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Conoco, Inc., Cl. A 139,100 3,877,412
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Exxon Corp. 203,400 15,687,225
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Mobil Corp. 91,600 9,068,400
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Texaco, Inc. 71,500 4,468,750
------------
38,041,212
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Oil: International--1.5%
BP Amoco plc, ADR 80,200 8,701,700
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Total Fina SA, Sponsored ADR(1) 62,100 4,001,569
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12,703,269
==================================================================================================================
Financial--23.7%
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Banks--5.9%
Bank of America Corp. 61,800 4,530,712
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Bank United Corp., Cl. A 27,800 1,117,212
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Chase Manhattan Corp. 127,500 11,044,687
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J.P. Morgan & Co., Inc. 29,700 4,172,850
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National City Corp. 82,000 5,371,000
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Old Kent Financial Corp. 87,255 3,653,803
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Roslyn Bancorp, Inc. 48,100 826,719
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Union Planters Corp. 82,900 3,704,594
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UnionBanCal Corp. 208,700 7,539,287
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Wachovia Corp. 98,300 8,410,794
------------
50,371,658
</TABLE>
6 Growth Portfolio
<PAGE>
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Statement of Investments (Unaudited) (Continued)
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<TABLE>
<CAPTION>
Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Diversified Financial--3.9%
AMBAC Financial Group, Inc. 86,700 $ 4,952,737
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Citigroup, Inc. 188,000 8,930,000
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Fannie Mae 65,900 4,505,913
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Freddie Mac 106,500 6,177,000
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Morgan Stanley Dean Witter & Co. 41,100 4,212,750
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Nationwide Financial Services, Inc., Cl. A 103,500 4,683,375
------------
33,461,775
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Insurance--13.5%
ACE Ltd. 167,700 4,737,525
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Allstate Corp. 318,300 11,419,013
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American General Corp. 123,100 9,278,663
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American International Group, Inc. 55,500 6,496,969
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Chubb Corp. 50,900 3,537,550
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Cigna Corp. 171,300 15,245,700
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Equitable Cos., Inc. 143,000 9,581,000
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Hartford Financial Services Group, Inc. 104,600 6,099,488
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Hartford Life, Inc., Cl. A 51,000 2,683,875
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Jefferson-Pilot Corp. 112,700 7,459,331
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Lincoln National Corp. 114,000 5,963,625
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Marsh & McLennan Cos., Inc. 155,500 11,740,250
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Old Republic International Corp. 166,200 2,877,338
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Provident Companies, Inc. 102,100 4,084,000
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Safeco Corp. 109,700 4,840,513
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St. Paul Cos., Inc. 76,800 2,443,200
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Travelers Property Casualty Corp., Cl. A 174,900 6,842,963
------------
115,331,003
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Savings & Loans--0.4%
Greenpoint Financial Corp. 98,900 3,245,156
==================================================================================================================
Healthcare--2.0%
- ------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--1.4%
Abbott Laboratories 148,000 6,734,000
- ------------------------------------------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 93,400 5,306,288
------------
12,040,288
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Healthcare/Supplies & Services--0.6%
Beckman Coulter, Inc. 96,900 4,711,763
- ------------------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 19,600 305,025
------------
5,016,788
</TABLE>
Growth Portfolio 7
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Value
Shares Note 1
<S> <C> <C>
==================================================================================================================
Technology--7.6%
- ------------------------------------------------------------------------------------------------------------------
Computer Hardware--6.4%
Apple Computer, Inc.(1) 191,300 $ 8,859,581
- ------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 99,900 10,039,950
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International Business Machines Corp. 211,400 27,323,450
- ------------------------------------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A(1) 113,800 7,517,913
- ------------------------------------------------------------------------------------------------------------------
Seagate Technology, Inc.(1) 33,000 845,625
------------
54,586,519
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Computer Services--0.9%
First Data Corp. 164,800 8,064,900
- ------------------------------------------------------------------------------------------------------------------
Computer Software--0.3%
BISYS Group, Inc. (The)(1) 50,900 2,977,650
==================================================================================================================
Transportation--2.1%
- ------------------------------------------------------------------------------------------------------------------
Air Transportation--1.1%
Continental Airlines, Inc., Cl. B(1) 92,100 3,465,263
- ------------------------------------------------------------------------------------------------------------------
Delta Air Lines, Inc. 111,100 6,402,138
------------
9,867,401
- ------------------------------------------------------------------------------------------------------------------
Railroads & Truckers--1.0%
Burlington Northern Santa Fe Corp. 127,800 3,961,800
- ------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. 85,100 4,962,394
------------
8,924,194
==================================================================================================================
Utilities--8.8%
- ------------------------------------------------------------------------------------------------------------------
Electric Utilities--8.1%
Carolina Power & Light Co. 59,700 2,555,906
- ------------------------------------------------------------------------------------------------------------------
Conectiv, Inc. 110,900 2,710,119
- ------------------------------------------------------------------------------------------------------------------
Duke Energy Corp. 159,800 8,689,125
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Entergy Corp. 33,100 1,034,375
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FPL Group, Inc. 130,200 7,112,175
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Montana Power Co. 49,400 3,482,700
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Peco Energy Co. 283,300 11,863,188
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PG&E Corp. 257,200 8,359,000
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Potomac Electric Power Co. 88,600 2,608,163
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Public Service Enterprise Group, Inc. 119,500 4,884,563
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Reliant Energy, Inc. 261,500 7,223,938
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Texas Utilities Co. 107,500 4,434,375
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Unicom Corp. 107,100 4,130,044
------------
69,087,671
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Gas Utilities--0.7%
El Paso Energy Corp. 115,800 4,074,713
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NICOR, Inc. 46,800 1,781,325
------------
5,856,038
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Total Common Stocks (Cost $741,642,598) 817,948,560
</TABLE>
8 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market Value
Amount Note 1
<S> <C> <C>
==================================================================================================================
U.S. Government Obligations--0.6%
- ------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 4.88%, 7/16/99(2) (Cost $4,989,833) $ 5,000,000 $ 4,989,833
==================================================================================================================
Repurchase Agreements--2.1%
- ------------------------------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 4.80%, dated 6/30/99, to be
repurchased at $17,802,373 on 7/1/99, collateralized by U.S. Treasury Nts.,
4.625%-9.25%, 11/30/00-2/15/16, with a value of $18,198,394 (Cost $17,800,000) 17,800,000 17,800,000
- ------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $764,432,431) 98.5% 840,738,393
- ------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.5 12,956,633
------------- ------------
Net Assets 100.0% $853,695,026
============= ============
</TABLE>
1. Non-income producing security.
2. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
Growth Portfolio 9
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
==================================================================================================================
Assets
Investments, at value (cost $764,432,431)--see accompanying statement $840,738,393
- ------------------------------------------------------------------------------------------------------------------
Cash 51,034
- ------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 15,294,800
Interest and dividends 1,045,850
Shares of capital stock sold 141,446
Other 4,821
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Total assets 857,276,344
==================================================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 3,517,058
Shareholder reports 42,026
Legal, auditing and other professional fees 11,136
Custodian fees 9,843
Other 1,255
------------
Total liabilities 3,581,318
==================================================================================================================
Net Assets $853,695,026
============
==================================================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 266,628
- ------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 644,228,124
- ------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 4,734,667
- ------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 128,159,645
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 76,305,962
- ------------------------------------------------------------------------------------------------------------------
Net assets--applicable to 266,628,422 shares of capital
stock outstanding $853,695,026
============
==================================================================================================================
Net Asset Value, Redemption Price Per Share and Offering Price Per Share $3.20
See accompanying Notes to Financial Statements.
</TABLE>
10 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
==================================================================================================================
Investment Income
Dividends (net of foreign withholding taxes of $2,675) $ 5,785,797
- ------------------------------------------------------------------------------------------------------------------
Interest 1,242,524
-------------
Total income 7,028,321
==================================================================================================================
Expenses
Management fees--Note 4 2,232,483
- ------------------------------------------------------------------------------------------------------------------
Shareholder reports 34,361
- ------------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 11,770
- ------------------------------------------------------------------------------------------------------------------
Accounting service fees--Note 4 7,501
- ------------------------------------------------------------------------------------------------------------------
Insurance expenses 3,153
- ------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 2,872
- ------------------------------------------------------------------------------------------------------------------
Directors' compensation 1,686
- ------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 947
-------------
Total expenses 2,294,773
Less expenses paid indirectly--Note 1 (2,467)
-------------
Net expenses 2,292,306
==================================================================================================================
Net Investment Income 4,736,015
==================================================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on investments 128,295,491
- ------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (107,954,311)
-------------
Net realized and unrealized gain 20,341,180
==================================================================================================================
Net Increase in Net Assets Resulting from Operations $ 25,077,195
=============
</TABLE>
See accompanying Notes to Financial Statements.
Growth Portfolio 11
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 4,736,015 $ 10,211,556
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain 128,295,491 33,310,716
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (107,954,311) 24,320,298
------------ -------------
Net increase in net assets resulting from operations 25,077,195 67,842,570
================================================================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income (10,168,122) (9,799,624)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (33,413,443) (107,624,371)
================================================================================================================================
Capital Stock Transactions
Net increase (decrease) in net assets resulting from
capital stock transactions--Note 2 (46,672,063) 137,081,544
================================================================================================================================
Net Assets
Total increase (decrease) (65,176,433) 87,500,119
- --------------------------------------------------------------------------------------------------------------------------------
Beginning of period 918,871,459 831,371,340
------------ -------------
End of period (including undistributed net investment
income of $4,734,667 and $10,166,774, respectively) $853,695,026 $ 918,871,459
============ =============
</TABLE>
See accompanying Notes to Financial Statements.
12 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Financial highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
June 30,1999 Year Ended December 31,
(Unaudited) 1998 1997 1996(1) 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $3.27 $3.45 $2.98 $2.53 $1.97 $2.08
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 .04 .04 .04 .04 .03
Net realized and unrealized gain (loss) .07 .26 .69 .43 .71 (.04)
- --------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations .09 .30 .73 .47 .75 (.01)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.04) (.04) (.03) (.01) (.04) (.03)
Distributions from net realized gain (.12) (.44) (.23) (.01) (.15) (.07)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.16) (.48) (.26) (.02) (.19) (.10)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $3.20 $3.27 $3.45 $2.98 $2.53 $1.97
===== ===== ===== ===== ===== =====
================================================================================================================================
Total Return, at Net Asset Value(2) 3.00% 8.43% 26.37% 18.87% 38.06% (0.51)%
================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $853,695 $918,871 $831,371 $586,222 $405,935 $230,195
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $873,515 $877,874 $721,555 $494,281 $303,193(3) $198,879(3)
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.09% 1.16% 1.38% 1.63% 2.01% 1.87%
Expenses(5) 0.53% 0.53% 0.54% 0.58% 0.66% 0.67%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 79.0% 98% 92% 83% 69% 97%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods less than one full year. Total return
information does not reflect expenses that apply at the separate account level
or to related insurance products. Inclusion of these charges would reduce the
total return figures for all periods shown.
3. This information is not covered by the auditors' opinion.
4. Annualized for periods less than one full year.
5. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expense ratios have not been adjusted.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended June 30, 1999, were $660,632,121 and $736,980,754, respectively.
See accompanying Notes to Financial Statements.
Growth Portfolio 13
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Growth Portfolio (the Fund) is a series of Panorama Series Fund, Inc. (the
Company) which is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. 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. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager). Shares of the Fund are sold only to separate accounts of life
insurance companies, a majority of such shares are held by separate accounts of
Massachusetts Mutual Life Insurance Co., an affiliate of the investment advisor.
The following is a summary of significant accounting policies consistently
followed by the Fund.
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Securities Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Directors. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Directors to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount.
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Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
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Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders.
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Distributions to Shareholders. Distributions to shareholders, which are
determined in accordance with income tax regulations, are recorded on the
ex-dividend date.
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Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
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Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
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Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
14 Growth Portfolio
<PAGE>
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Notes to Financial Statements (Unaudited) (Continued)
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================================================================================
2. Shares of Capital Stock
The Fund has authorized 950 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1999 Year Ended December 31, 1998
----------------------------------- ---------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 9,869,550 $ 31,575,657 47,037,578 $ 152,546,029
Dividends and distributions reinvested 14,289,038 43,581,565 35,262,461 117,423,995
Redeemed (38,289,597) (121,829,285) (42,207,549) (132,888,480)
----------- ------------- ----------- -------------
Net increase (decrease) (14,131,009) $ (46,672,063) 40,092,490 $ 137,081,544
=========== ============= =========== =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of June 30, 1999, net unrealized appreciation on investments of $76,305,962
was composed of gross appreciation of $95,763,330, and gross depreciation of
$19,457,368.
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.625% of the first
$300 million of average daily net assets of the Portfolio, 0.50% of the next
$100 million and 0.45% of average daily net assets over $400 million. The Fund's
management fee for the six months ended June 30, 1999 was 0.52% of average
annual net assets.
The Manager acts as the accounting agent for the Fund at an annual fee
of $15,000, plus out-of-pocket costs and expenses reasonably incurred.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer agent for the Fund and is responsible for maintaining the shareholder
registry and shareholder accounting records for the Fund. OFS provides these
services at cost.
Growth Portfolio 15
<PAGE>
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Growth Portfolio
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A Series of Panorama Series Fund, Inc.
<TABLE>
<S> <C>
================================================================================================================================
Officers and Directors James C. Swain, Chairman of the Board of Directors
Bridget A. Macaskill, President
Robert G. Avis, Director
William A. Baker, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Peter M. Antos, Vice President
Stephen F. Libera, Vice President
Michael C. Strathearn, Vice President
Kenneth B. White, Vice President
Arthur J. Zimmer, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================================================================
Investment Advisor OppenheimerFunds, Inc.
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Transfer Agent OppenheimerFunds Services
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Custodian of Portfolio Securities Bank of New York
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Independent Auditors Deloitte & Touche LLP
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Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the Fund
without examination of the independent auditors.
This is a copy of a report to shareholders of Growth Portfolio. This report must be
preceded or accompanied by a Prospectus of Growth Portfolio. For material information
concerning the Fund, see the Prospectus.
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.
</TABLE>
16 Growth Portfolio
