Semiannual Report June 30, 2000
Total Return Portfolio
A Series of Panorama Series Fund, Inc.
[logo]OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
Panorama Series Fund, Inc.--Total Return Portfolio
================================================================================
Objective
Panorama Series Fund, Inc.--Total Return Portfolio seeks to maximize total
investment return (including both capital appreciation and income) principally
by allocating its assets among stocks, corporate bonds, U.S. government
securities and money market instruments according to changing market conditions.
================================================================================
Narrative by Portfolio Management Team
We are relatively pleased with the Fund's performance over the six-month period
that ended June 30, 2000. This was a challenging period for both stock and bond
investing, especially among the value-oriented equities on which the Fund
focuses its equity investments. However, our disciplined strategy of allocating
assets among stocks, bonds and cash enabled us to limit risks and improve
returns for our shareholders.
Historically, the low P/E value stocks in which the Fund invests have
proven to be bargains over the long term. However, they tend to underperform the
market when corporate earnings growth appears likely to slow and concerns
regarding the economic future are on the rise. At such times, investors tend to
seek large, growth-oriented companies.
Throughout the reporting period, actual U.S. economic growth remained
robust. However, the unusually rapid pace of U.S. economic growth raised
concerns that inflation might appear. In an effort to prevent the economy from
overheating, the Federal Reserve Board (the Fed) raised interest rates, and
declared the intention to continue raising them until the pace of consumer
spending and economic growth had slowed. The Fed's actions and statements
heightened uncertainties regarding the sustainability of U.S. economic growth,
and, as a result, value-oriented stocks suffered. Many of our holdings in
traditional value-oriented sectors were considerably affected, despite good
earnings and strong business conditions.
Over the six-month period, we pursued our strategy of conducting
in-depth analyses of financial markets and economic trends to guide our
decisions on allocating the Fund's assets among stocks, bonds and cash. Our
analyses during this time led us to invest approximately 35% of the Fund's
assets in bonds and cash. These investments enhanced the Fund's performance in
an environment that was generally unfavorable for value-oriented stocks.
We believe we positioned the Fund's equity holdings to perform as
strongly as possible during a difficult time for value investing. During the
period, we added substantially to our value-oriented technology holdings to take
advantage of strength in the computer and telecommunications industries. The
percentage of the Fund's assets allocated to technology rose from approximately
7% of the Fund's stocks at the beginning of the period to approximately 20% near
the end of the period.(1) Most of the Fund's best-performing stocks were
concentrated in this sector. We also scored successes with several of our energy
holdings, which benefited from a rebound in energy prices, and certain utility
holdings, which participated in the explosive build-out of cellular and fiber
optic communications networks.
While these moves enhanced the Fund's performance, the negative
environment for value investing still took a significant toll. Stocks in the
consumer-staples sector, including beverage companies and other commodity
suppliers, lost value in spite of strong company fundamentals and good earnings
performance. Solid companies in the capital-goods sector faced a similarly
unfavorable investment environment. Reasonably priced stocks of retailers in the
consumer-cyclical sector also turned in disappointing performance, as investors
focused on a narrow group of high-growth companies in the sector.
Because the stock market can be volatile, the Fund's performance may be subject
to substantial short-term changes.
1. Portfolio is subject to change.
2 Total Return Portfolio
<PAGE>
Panorama Series Fund, Inc.--Total Return Portfolio
================================================================================
To further counter the negative impact of interest rates, we invested a
relatively high percentage of the Fund's bond portfolio in long-term Treasury
bonds. This proved to be an effective portfolio-management strategy. Due to
supply-and-demand factors driven by a Treasury Department buyback of long-term
bonds, these investments outperformed most other sectors of the bond market.
Corporate bonds, on the other hand, came under pricing pressures as a
result of rising interest rates and an oversupply of corporate debt issuance. We
took advantage of the relatively low prices of high-quality corporate bonds
during the period, opportunistically increasing the Fund's exposure to
high-credit-rated corporate bonds.
As we enter the second half of 2000, a sizeable gap has opened between
the prices of value-oriented stocks and growth-oriented stocks. However, the
vulnerability of some overpriced growth stocks was exposed during April 2000,
when prices of some of the market's highest fliers fell significantly. We
continue to believe that a balanced portfolio that includes bonds, undervalued
stocks and cash offers investors the potential for attractive long-term total
returns. We remain committed to a disciplined asset-allocation and investment
strategy designed to deliver such returns to our investors.
Total Return Portfolio 3
<PAGE>
Statement of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market Value
Shares Note 1
========================================================================================================================
<S> <C> <C>
Common Stocks--66.4%
------------------------------------------------------------------------------------------------------------------------
Basic Materials--1.4%
------------------------------------------------------------------------------------------------------------------------
Chemicals--0.8%
Dow Chemical Co. 53,400 $ 1,612,012
------------------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) de Nemours & Co. 75,500 3,303,125
------------------------------------------------------------------------------------------------------------------------
PPG Industries, Inc. 18,800 833,075
------------------------------------------------------------------------------------------------------------------------
Rohm & Haas Co. 19,300 665,850
-----------
6,414,062
------------------------------------------------------------------------------------------------------------------------
Metals--0.3%
Inco Ltd.(1) 131,200 2,017,200
------------------------------------------------------------------------------------------------------------------------
Paper--0.3%
Louisiana-Pacific Corp. 60,400 656,850
------------------------------------------------------------------------------------------------------------------------
Weyerhaeuser Co. 46,300 1,990,900
-----------
2,647,750
------------------------------------------------------------------------------------------------------------------------
Capital Goods--5.9%
------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--0.2%
TRW, Inc. 27,500 1,192,812
------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--3.3%
General Electric Co. 429,000 22,737,000
------------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 82,600 2,601,900
-----------
25,338,900
------------------------------------------------------------------------------------------------------------------------
Manufacturing--2.4%
Avery-Dennison Corp. 43,900 2,946,787
------------------------------------------------------------------------------------------------------------------------
Cooper Industries, Inc. 4,100 133,506
------------------------------------------------------------------------------------------------------------------------
Deere & Co. 42,000 1,554,000
------------------------------------------------------------------------------------------------------------------------
Dover Corp. 8,100 328,556
------------------------------------------------------------------------------------------------------------------------
Honeywell International, Inc. 24,100 811,869
------------------------------------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 71,900 5,931,750
------------------------------------------------------------------------------------------------------------------------
Pall Corp. 54,100 1,000,850
------------------------------------------------------------------------------------------------------------------------
Textron, Inc. 3,500 190,094
------------------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 21,300 1,009,087
------------------------------------------------------------------------------------------------------------------------
United Technologies Corp. 69,100 4,068,262
-----------
17,974,761
------------------------------------------------------------------------------------------------------------------------
Communication Services--4.6%
------------------------------------------------------------------------------------------------------------------------
Telecommunications: Long Distance--1.7%
AT&T Corp. 38,600 1,220,725
------------------------------------------------------------------------------------------------------------------------
WorldCom, Inc.(1) 249,300 11,436,637
-----------
12,657,362
------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--2.0%
Bell Atlantic Corp. 109,200 5,548,725
------------------------------------------------------------------------------------------------------------------------
BellSouth Corp. 193,400 8,243,675
------------------------------------------------------------------------------------------------------------------------
SBC Communications, Inc. 29,900 1,293,175
-----------
15,085,575
4 Total Return Portfolio
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
------------------------------------------------------------------------------------------------------------------------
Telecommunications: Wireless--0.9%
Nextel Communications, Inc., Cl. A(1) 116,800 $ 7,146,700
------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--5.0%
------------------------------------------------------------------------------------------------------------------------
Autos & Housing--1.0%
Ford Motor Co. 107,100 4,605,300
------------------------------------------------------------------------------------------------------------------------
Fortune Brands, Inc. 69,000 1,591,312
------------------------------------------------------------------------------------------------------------------------
Stanley Works (The) 60,000 1,425,000
------------------------------------------------------------------------------------------------------------------------
Visteon Corp.(1) 14,022 170,017
-----------
7,791,629
------------------------------------------------------------------------------------------------------------------------
Media--0.4%
Gannett Co., Inc. 13,300 795,506
------------------------------------------------------------------------------------------------------------------------
Knight-Ridder, Inc. 40,600 2,159,412
-----------
2,954,918
------------------------------------------------------------------------------------------------------------------------
Retail: General--2.2%
Costco Wholesale Corp.(1) 6,400 211,200
------------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 58,200 1,964,250
------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 255,100 14,700,138
-----------
16,875,588
------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--1.3%
Gap, Inc. 65,300 2,040,625
------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. 133,800 6,681,638
------------------------------------------------------------------------------------------------------------------------
Target Corp. 16,800 974,400
-----------
9,696,663
------------------------------------------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.1%
Liz Claiborne, Inc. 17,700 623,925
------------------------------------------------------------------------------------------------------------------------
Consumer Staples--5.2%
------------------------------------------------------------------------------------------------------------------------
Beverages--1.3%
Anheuser-Busch Cos., Inc. 59,300 4,428,969
------------------------------------------------------------------------------------------------------------------------
Coca-Cola Enterprises, Inc. 155,600 2,538,225
------------------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 73,100 3,248,381
-----------
10,215,575
------------------------------------------------------------------------------------------------------------------------
Entertainment--1.5%
Darden Restaurants, Inc. 57,100 927,875
------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 209,700 8,138,981
------------------------------------------------------------------------------------------------------------------------
McDonald's Corp. 33,200 1,093,525
------------------------------------------------------------------------------------------------------------------------
Wendy's International, Inc. 71,700 1,277,156
-----------
11,437,537
------------------------------------------------------------------------------------------------------------------------
Food--1.7%
Campbell Soup Co. 20,000 582,500
------------------------------------------------------------------------------------------------------------------------
General Mills, Inc. 97,000 3,710,250
------------------------------------------------------------------------------------------------------------------------
Hershey Foods Corp. 19,900 965,150
------------------------------------------------------------------------------------------------------------------------
Ralston Purina Co. 124,300 2,478,231
------------------------------------------------------------------------------------------------------------------------
Sysco Corp. 109,600 4,616,900
------------------------------------------------------------------------------------------------------------------------
Wrigley William Jr. Co. 11,300 906,119
-----------
13,259,150
Total Return Portfolio 5
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
------------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--0.1%
Great Atlantic & Pacific Tea Co., Inc. (The) 54,600 $ 907,725
------------------------------------------------------------------------------------------------------------------------
Household Goods--0.4%
Newell Rubbermaid, Inc. 116,400 2,997,300
------------------------------------------------------------------------------------------------------------------------
Tobacco--0.2%
UST, Inc. 79,600 1,169,125
------------------------------------------------------------------------------------------------------------------------
Energy--3.8%
------------------------------------------------------------------------------------------------------------------------
Oil: Domestic--2.9%
Amerada Hess Corp. 15,800 975,650
------------------------------------------------------------------------------------------------------------------------
Apache Corp. 60,000 3,528,750
------------------------------------------------------------------------------------------------------------------------
Burlington Resources, Inc. 47,900 1,832,175
------------------------------------------------------------------------------------------------------------------------
Exxon Mobil Corp. 89,000 6,986,500
------------------------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 173,800 3,660,663
------------------------------------------------------------------------------------------------------------------------
Texaco, Inc. 33,400 1,778,550
------------------------------------------------------------------------------------------------------------------------
USX-Marathon Group 135,500 3,395,969
-----------
22,158,257
------------------------------------------------------------------------------------------------------------------------
Oil: International--0.9%
Royal Dutch Petroleum Co., NY Shares 109,400 6,734,938
------------------------------------------------------------------------------------------------------------------------
Financial--8.5%
------------------------------------------------------------------------------------------------------------------------
Banks--2.8%
Chase Manhattan Corp. 150,450 6,930,103
------------------------------------------------------------------------------------------------------------------------
Huntington Bancshares, Inc. 116,200 1,837,413
------------------------------------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 42,400 4,669,300
------------------------------------------------------------------------------------------------------------------------
National City Corp. 85,500 1,458,844
------------------------------------------------------------------------------------------------------------------------
Northern Trust Corp. 6,300 409,894
------------------------------------------------------------------------------------------------------------------------
SunTrust Banks, Inc. 96,700 4,417,981
------------------------------------------------------------------------------------------------------------------------
Wachovia Corp. 26,200 1,421,350
------------------------------------------------------------------------------------------------------------------------
Wells Fargo Co. 13,500 523,125
-----------
21,668,010
------------------------------------------------------------------------------------------------------------------------
Diversified Financial--3.6%
American Express Co. 172,800 9,007,200
------------------------------------------------------------------------------------------------------------------------
Citigroup, Inc. 243,700 14,682,925
------------------------------------------------------------------------------------------------------------------------
Fannie Mae 28,400 1,482,125
------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 30,200 2,514,150
-----------
27,686,400
------------------------------------------------------------------------------------------------------------------------
Insurance--2.1%
American General Corp. 82,300 5,020,300
------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 94,425 11,094,938
-----------
16,115,238
6 Total Return Portfolio
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
------------------------------------------------------------------------------------------------------------------------
Healthcare--7.9%
------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--7.6%
American Home Products Corp. 143,600 $ 8,436,500
------------------------------------------------------------------------------------------------------------------------
Biogen, Inc.(1) 67,200 4,334,400
------------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 174,300 10,152,975
------------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 16,900 1,721,688
------------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 187,000 14,328,875
------------------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 132,275 6,349,200
------------------------------------------------------------------------------------------------------------------------
Pharmacia Corp. 153,500 7,934,031
------------------------------------------------------------------------------------------------------------------------
UnitedHealth Group, Inc. 54,200 4,647,650
-----------
57,905,319
------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.3%
Bard (C.R.), Inc. 15,500 745,938
------------------------------------------------------------------------------------------------------------------------
Baxter International, Inc. 5,200 365,625
------------------------------------------------------------------------------------------------------------------------
HEALTHSOUTH Corp.(1) 172,400 1,239,125
-----------
2,350,688
------------------------------------------------------------------------------------------------------------------------
Technology--21.7%
------------------------------------------------------------------------------------------------------------------------
Computer Hardware--2.9%
Agilent Technologies, Inc.(1) 3,623 267,196
------------------------------------------------------------------------------------------------------------------------
Apple Computer, Inc.(1) 85,200 4,462,350
------------------------------------------------------------------------------------------------------------------------
EMC Corp.(1) 6,300 484,706
------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 9,500 1,186,313
------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 32,900 3,604,606
------------------------------------------------------------------------------------------------------------------------
Network Appliance, Inc.(1) 61,800 4,974,900
------------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 80,600 7,329,563
-----------
22,309,634
------------------------------------------------------------------------------------------------------------------------
Computer Services--0.0%
First Data Corp. 2,800 138,950
------------------------------------------------------------------------------------------------------------------------
Computer Software--6.0%
Adobe Systems, Inc. 18,500 2,405,000
------------------------------------------------------------------------------------------------------------------------
America Online, Inc.(1) 22,300 1,176,325
------------------------------------------------------------------------------------------------------------------------
Microsoft Corp.(1) 152,100 12,168,000
------------------------------------------------------------------------------------------------------------------------
Oracle Corp.(1) 185,400 15,585,188
------------------------------------------------------------------------------------------------------------------------
Siebel Systems, Inc.(1) 37,600 6,149,950
------------------------------------------------------------------------------------------------------------------------
Veritas Software Corp.(1) 70,500 7,967,602
-----------
45,452,065
------------------------------------------------------------------------------------------------------------------------
Communications Equipment--3.8%
ADC Telecommunications, Inc.(1) 65,500 5,493,813
------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 202,000 12,839,625
------------------------------------------------------------------------------------------------------------------------
Lucent Technologies, Inc. 52,500 3,110,625
------------------------------------------------------------------------------------------------------------------------
Nortel Networks Corp. 47,000 3,207,750
------------------------------------------------------------------------------------------------------------------------
QUALCOMM, Inc.(1) 73,000 4,380,000
-----------
29,031,813
Total Return Portfolio 7
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
------------------------------------------------------------------------------------------------------------------------
Electronics--8.2%
Advanced Micro Devices, Inc.(1) 55,400 $ 4,279,650
------------------------------------------------------------------------------------------------------------------------
Altera Corp.(1) 55,200 5,626,950
------------------------------------------------------------------------------------------------------------------------
Analog Devices, Inc.(1) 79,500 6,042,000
------------------------------------------------------------------------------------------------------------------------
Applied Materials, Inc.(1) 88,200 7,993,125
------------------------------------------------------------------------------------------------------------------------
Intel Corp. 106,300 14,210,981
------------------------------------------------------------------------------------------------------------------------
LSI Logic Corp.(1) 76,200 4,124,325
------------------------------------------------------------------------------------------------------------------------
Motorola, Inc. 130,800 3,801,375
------------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 27,500 1,560,625
------------------------------------------------------------------------------------------------------------------------
Teradyne, Inc.(1) 55,200 4,057,200
------------------------------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 60,000 4,121,250
------------------------------------------------------------------------------------------------------------------------
Xilinx, Inc.(1) 77,600 6,406,850
------------
62,224,331
------------------------------------------------------------------------------------------------------------------------
Photography--0.8%
Eastman Kodak Co. 95,200 5,664,400
------------------------------------------------------------------------------------------------------------------------
Polaroid Corp. 41,300 745,981
------------
6,410,381
------------------------------------------------------------------------------------------------------------------------
Transportation--0.5%
------------------------------------------------------------------------------------------------------------------------
Air Transportation--0.2%
AMR Corp.(1) 53,900 1,424,981
------------------------------------------------------------------------------------------------------------------------
Railroads & Truckers--0.3%
CSX Corp. 122,800 2,601,825
------------------------------------------------------------------------------------------------------------------------
Utilities--1.9%
------------------------------------------------------------------------------------------------------------------------
Electric Utilities--1.3%
AES Corp. (The)(1) 103,800 4,735,875
------------------------------------------------------------------------------------------------------------------------
Pinnacle West Capital Corp. 39,400 1,334,675
------------------------------------------------------------------------------------------------------------------------
Reliant Energy, Inc. 125,100 3,698,269
------------
9,768,819
------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.6%
El Paso Energy Corp. 58,700 2,990,031
------------------------------------------------------------------------------------------------------------------------
Sempra Energy 81,900 1,392,300
------------
4,382,331
------------
Total Common Stocks (Cost $505,774,178) 506,768,237
8 Total Return Portfolio
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
========================================================================================================================
Asset-Backed Securities--0.3%
------------------------------------------------------------------------------------------------------------------------
IROQUOIS Trust, Asset-Backed Amortizing Nts., Series 1997-2, Cl. A,
6.752%, 6/25/07(2) (Cost $2,531,923) $2,531,922 $ 2,470,998
========================================================================================================================
Mortgage-Backed Obligations--4.7%
------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg.
Participation Certificates, 6%, 3/1/09 2,090,366 2,018,855
------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security,
Series 1583, Cl. IC, 12.99%, 1/15/20(3) 3,843,819 289,478
------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6%, 12/1/03 1,171,398 1,149,622
6.50%, 4/1/24-4/1/26 2,279,461 2,161,747
7.50%, 5/1/07--12/1/08 695,661 696,731
8%, 3/1/17-6/1/17 132,312 133,994
------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations, Gtd. Multiclass
Mtg. Participation Certificates, Trust 1992-15, Cl. KZ, 7%, 2/25/22 2,683,450 2,488,900
------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations, Gtd. Real Estate
Mtg. Investment Conduit Pass-Through Certificates, Trust 1993-190, Cl. Z, 5.85%, 7/25/08 367,845 364,969
------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security,
Trust 1993-223, Cl. PM, 7.04%, 10/25/23(3) 4,005,521 498,167
------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Services, Inc., Collateralized Mtg. Obligations,
Series 1998-12, Cl. A3, 6.50%, 4/25/29 2,500,000 2,258,575
------------------------------------------------------------------------------------------------------------------------
GE Capital Mortgage Services, Inc., Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates, Series 1994-7, Cl. A18, 6%, 2/25/09 4,707,789 4,288,467
------------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
7%, 11/15/08-1/15/24 1,582,347 1,556,956
7.50%, 1/15/09-6/15/24 3,317,137 3,316,510
8%, 5/15/17 599,484 610,959
------------------------------------------------------------------------------------------------------------------------
IMC Home Equity Trust, Asset-Backed Home Equity Securities,
Series 1998-3, Cl. A5, 6.36%, 8/20/22(4) 3,400,000 3,306,500
------------------------------------------------------------------------------------------------------------------------
Norwest Asset Securities Corp., Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation Certificates:
Series 1999-16, Cl. A3, 6%, 6/25/29 2,000,000 1,913,120
Series 1999-18, Cl. A2, 6%, 7/25/29 4,000,000 3,777,480
------------------------------------------------------------------------------------------------------------------------
Prudential Home Mortgage Securities Co., Sub. Fixed Rate Mtg. Securities,
Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Series 1993-L, Cl. 1B2, 6.641%, 12/25/23(2)(4) 943,703 935,152
------------------------------------------------------------------------------------------------------------------------
Residential Accredit Loans, Inc., Mtg. Asset-Backed Pass-Through Certificates,
Series 1999-QS12, Cl. M1, 7%, 9/25/14 2,722,955 2,614,881
------------------------------------------------------------------------------------------------------------------------
Residential Funding Mortgage Securities I, Inc., Mtg. Pass-Through Certificates,
Series 1998-S4, Cl. M1, 6.50%, 2/25/13 1,899,591 1,801,629
-----------
Total Mortgage-Backed Obligations (Cost $37,052,565) 36,182,692
Total Return Portfolio 9
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
========================================================================================================================
U.S. Government Obligations--4.5%
------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 $26,500,000 $25,912,045
STRIPS, 5.85%, 11/15/18(5) 25,500,000 8,205,186
-----------
Total U.S. Government Obligations (Cost $37,388,555) 34,117,231
========================================================================================================================
Non-Convertible Corporate Bonds and Notes--23.1%
------------------------------------------------------------------------------------------------------------------------
Basic Materials--1.0%
------------------------------------------------------------------------------------------------------------------------
Chemicals--0.6%
PPG Industries, Inc., 9% Debs., 5/1/21 1,190,000 1,319,389
------------------------------------------------------------------------------------------------------------------------
Rohm & Haas Co., 7.85% Unsec. Debs., 7/15/29 3,000,000 3,041,328
-----------
4,360,717
------------------------------------------------------------------------------------------------------------------------
Metals--0.1%
Alcan Aluminium Ltd., 9.625% Debs., 7/15/19 500,000 499,965
------------------------------------------------------------------------------------------------------------------------
Paper--0.3%
Donohue Forest Products, Inc., 7.625% Gtd. Sr. Nts., 5/15/07 2,500,000 2,447,637
------------------------------------------------------------------------------------------------------------------------
Capital Goods--3.8%
------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--0.3%
Raytheon Co., 6.45% Nts., 8/15/02 2,500,000 2,442,802
------------------------------------------------------------------------------------------------------------------------
Industrial Services--2.5%
Fred Meyer, Inc., 7.375% Sr. Nts., 3/1/05 6,750,000 6,589,262
------------------------------------------------------------------------------------------------------------------------
Interface, Inc., 7.30% Sr. Nts., 4/1/08 2,000,000 1,550,000
------------------------------------------------------------------------------------------------------------------------
Norse CBO Ltd., 6.515% Collateralized Bond Obligations, Series 1A, Cl. A3, 8/13/10(2) 4,000,000 3,667,500
------------------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., 7.15% Sr. Nts., 5/15/05 5,000,000 4,534,970
------------------------------------------------------------------------------------------------------------------------
USI American Holdings, Inc., 7.25% Sr. Nts., Series B, 12/1/06 2,860,000 2,724,433
-----------
19,066,165
------------------------------------------------------------------------------------------------------------------------
Manufacturing--1.0%
Federal-Mogul Corp., 7.50% Nts., 7/1/04 2,150,000 1,663,756
------------------------------------------------------------------------------------------------------------------------
Fort James Corp., 6.875% Sr. Nts., 9/15/07 5,000,000 4,671,535
------------------------------------------------------------------------------------------------------------------------
Norsk Hydro AS, 8.75% Bonds, 10/23/01 1,500,000 1,524,000
-----------
7,859,291
------------------------------------------------------------------------------------------------------------------------
Communication Services--0.2%
------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.2%
Telefonica de Argentina SA, 9.125% Nts., Series 1, 5/7/08 2,000,000 1,875,000
------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--1.3%
------------------------------------------------------------------------------------------------------------------------
Autos & Housing--0.7%
Ford Motor Co., 6.375% Sr. Unsec. Unsub. Nts., 2/1/29 4,000,000 3,274,332
------------------------------------------------------------------------------------------------------------------------
Lear Corp., 7.96% Sr. Unsec. Nts., Series B, 5/15/05 2,000,000 1,881,788
-----------
5,156,120
------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--0.2%
Felcor Suites LP, 7.375% Sr. Nts., 10/1/04 2,000,000 1,799,380
------------------------------------------------------------------------------------------------------------------------
Media--0.4%
AT&T Corp./Liberty Media Group, 8.25% Nts., 2/1/30(6) 1,600,000 1,473,616
------------------------------------------------------------------------------------------------------------------------
Reed Elsevier, Inc., 6.625% Nts., 10/15/23(6) 1,600,000 1,383,648
-----------
2,857,264
10 Total Return Portfolio
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
------------------------------------------------------------------------------------------------------------------------
Consumer Staples--4.3%
------------------------------------------------------------------------------------------------------------------------
Broadcasting--0.7%
British Sky Broadcasting Group plc, 8.20% Sr. Unsec. Nts., 7/15/09 $1,600,000 $ 1,503,525
------------------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc., 7.625% Sr. Unsec. Debs., 7/15/18 4,000,000 3,595,904
-----------
5,099,429
------------------------------------------------------------------------------------------------------------------------
Entertainment--0.8%
Tricon Global Restaurants, Inc., 7.45% Sr. Unsec. Nts., 5/15/05 4,650,000 4,363,509
------------------------------------------------------------------------------------------------------------------------
Viacom, Inc., 6.75% Sr. Unsec. Nts., 1/15/03 1,500,000 1,474,462
-----------
5,837,971
------------------------------------------------------------------------------------------------------------------------
Food--1.5%
CPC International, Inc., 6.15% Unsec. Nts., Series C, 1/15/06 2,000,000 1,914,898
------------------------------------------------------------------------------------------------------------------------
Dole Food Co., 6.75% Nts., 7/15/00 3,500,000 3,497,049
------------------------------------------------------------------------------------------------------------------------
Grand Metro Inventory Corp., 7.125% Nts., 9/15/04 6,115,000 6,048,481
-----------
11,460,428
------------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--0.7%
Albertson's, Inc., 7.45% Unsec. Debs., 8/1/29 4,000,000 3,724,336
------------------------------------------------------------------------------------------------------------------------
Price/Costco Wholesale Corp., 7.125% Sr. Nts., 6/15/05 2,000,000 1,966,514
-----------
5,690,850
------------------------------------------------------------------------------------------------------------------------
Household Goods--0.6%
Dial Corp. (The), 5.89% Medium-Term Nts., Series A, 10/22/01 3,250,000 3,172,000
------------------------------------------------------------------------------------------------------------------------
Fort James Corp., 6.234% Nts., 3/15/01 1,750,000 1,733,021
-----------
4,905,021
------------------------------------------------------------------------------------------------------------------------
Energy--2.8%
------------------------------------------------------------------------------------------------------------------------
Energy Services--2.7%
Coastal Corp., 8.125% Sr. Nts., 9/15/02 3,190,000 3,252,537
------------------------------------------------------------------------------------------------------------------------
Colorado Interstate Gas Corp., 10% Sr. Debs., 6/15/05 455,000 501,837
------------------------------------------------------------------------------------------------------------------------
Columbia Gas System, Inc., 6.80% Nts., Series C, 11/28/05 2,000,000 1,929,980
------------------------------------------------------------------------------------------------------------------------
Gulf Canada Resources Ltd., 8.25% Sr. Nts., 3/15/17 2,000,000 1,850,000
------------------------------------------------------------------------------------------------------------------------
HNG Internorth/Enron Corp., 9.625% Debs., 3/15/06 700,000 756,681
------------------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co., 7.65% Debs., 12/1/23 4,000,000 3,802,340
------------------------------------------------------------------------------------------------------------------------
Petroleum Geo-Services ASA, 7.50% Nts., 3/31/07 3,600,000 3,435,764
------------------------------------------------------------------------------------------------------------------------
Petroliam Nasional Berhad, 6.875% Nts., 7/1/03(6) 2,500,000 2,411,857
------------------------------------------------------------------------------------------------------------------------
TransCanada PipeLines Ltd., 9.875% Debs., 1/1/21 2,250,000 2,624,447
-----------
20,565,443
------------------------------------------------------------------------------------------------------------------------
Oil: Domestic--0.1%
Texaco Capital, Inc., 8.875% Gtd. Debs., 9/1/21 500,000 569,626
------------------------------------------------------------------------------------------------------------------------
Financial--6.8%
------------------------------------------------------------------------------------------------------------------------
Banks--1.3%
Fleet Mtg./Norstar Group, Inc., 9.90% Sub. Nts., 6/15/01 750,000 766,985
------------------------------------------------------------------------------------------------------------------------
Greenpoint Bank (Brooklyn New York), 6.70% Sr. Medium-Term Bank Nts., 7/15/02 5,000,000 4,913,620
------------------------------------------------------------------------------------------------------------------------
People's Bank of Bridgeport (Connecticut), 7.20% Sub. Nts., 12/1/06 4,000,000 3,890,744
-----------
9,571,349
Total Return Portfolio 11
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
------------------------------------------------------------------------------------------------------------------------
Diversified Financial--2.3%
American General Institutional Capital, 8.125% Bonds, Series B, 3/15/46(6) $2,750,000 $ 2,596,050
------------------------------------------------------------------------------------------------------------------------
Capital One Financial Corp., 7.25% Nts., 12/1/03 4,830,000 4,719,422
------------------------------------------------------------------------------------------------------------------------
Conseco Financing Trust III, 8.796% Bonds, 4/1/27 2,750,000 1,168,750
------------------------------------------------------------------------------------------------------------------------
Finova Capital Corp., 7.625% Sr. Nts., 9/21/09 3,250,000 2,716,639
------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.625% Nts., 2/15/01 1,200,000 1,189,511
------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The), 7.50% Sr. Unsec. Unsub. Nts., 1/28/05 3,500,000 3,487,057
------------------------------------------------------------------------------------------------------------------------
United Mexican States Bonds, 6.97%, 8/12/00 1,750,000 1,754,690
------------
17,632,119
------------------------------------------------------------------------------------------------------------------------
Insurance--1.7%
Conseco, Inc., 6.40% Unsec. Mandatory Par Put Remarketed Securities, 6/15/01 3,000,000 2,385,000
------------------------------------------------------------------------------------------------------------------------
Equitable Life Assurance Society (U.S.A.), 6.95% Surplus Nts., 12/1/05(6) 2,000,000 1,934,334
------------------------------------------------------------------------------------------------------------------------
GenAmerica Capital I, 8.525% Nts., 6/30/27(2) 3,250,000 3,235,970
------------------------------------------------------------------------------------------------------------------------
Life Re Capital Trust I, 8.72% Nts., 6/15/27(6) 2,500,000 2,341,955
------------------------------------------------------------------------------------------------------------------------
Travelers Property Casualty Corp., 6.75% Sr. Unsec. Nts., 11/15/06 3,500,000 3,342,224
------------
13,239,483
------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--1.5%
Chelsea GCA Realty Partner, Inc., 7.75% Unsec. Nts., 1/26/01 5,520,000 5,515,176
------------------------------------------------------------------------------------------------------------------------
First Industrial LP, 7.15% Bonds, 5/15/27 3,000,000 2,937,303
------------------------------------------------------------------------------------------------------------------------
Simon DeBartolo Group LP, 6.625% Unsec. Nts., 6/15/03 3,000,000 2,871,288
------------
11,323,767
------------------------------------------------------------------------------------------------------------------------
Healthcare--0.4%
------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.4%
Tenet Healthcare Corp.:
8% Sr. Nts., 1/15/05 1,500,000 1,447,500
8.625% Sr. Unsec. Nts., 12/1/03 2,000,000 1,980,260
------------
3,427,760
------------------------------------------------------------------------------------------------------------------------
Technology--0.3%
------------------------------------------------------------------------------------------------------------------------
Computer Software--0.3%
Electric Data Systems Corp., 7.125% Nts., 5/15/05(6) 2,000,000 1,984,246
------------------------------------------------------------------------------------------------------------------------
Transportation--0.8%
------------------------------------------------------------------------------------------------------------------------
Air Transportation--0.5%
Northwest Airlines Corp., 8.375% Unsec. Nts., 3/15/04 4,250,000 4,009,425
------------------------------------------------------------------------------------------------------------------------
Railroads & Truckers--0.3%
Union Pacific Corp., 7.60% Nts., 5/1/05 2,000,000 1,987,644
------------------------------------------------------------------------------------------------------------------------
Utilities--1.4%
------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.9%
Cleveland Electric Illumination, Inc., 6.86% First Mtg. Nts., 10/1/08 4,000,000 3,695,636
------------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 8.25% First Mtg. Bonds, Series C, 2/1/03 3,278,000 3,300,022
------------
6,995,658
------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.5%
Tennessee Gas Pipeline Co., 7.50% Bonds, 4/1/17 3,800,000 3,616,772
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $188,356,875) 176,281,332
12 Total Return Portfolio
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
========================================================================================================================
Repurchase Agreements--0.8%
------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 6.55%, dated 6/30/00, to be
repurchased at $5,767,146 on 7/3/00, collateralized by U.S. Treasury Bonds,
7.25%-7.875%, 5/15/16-2/15/21, with a value of $2,218,250 and U.S. Treasury Nts.,
5.25%-6.625%, 6/30/01-2/15/06, with a value of $3,672,088 (Cost $5,764,000) $5,764,000 $ 5,764,000
------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $776,868,096) 99.8% 761,584,490
------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.2 1,200,119
---------- ------------
Net Assets 100.0% $762,784,609
========== ============
</TABLE>
1. Non-income-producing security.
2. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
3. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. 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-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.
4. Represents the current interest rate for a variable or increasing rate
security.
5. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
6. 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
Directors. These securities amount to $14,125,706 or 1.85% of the Portfolio's
net assets as of June 30, 2000.
See accompanying Notes to Financial Statements.
Total Return Portfolio 13
<PAGE>
Statement of Assets and Liabilities June 30, 2000 (Unaudited)
<TABLE>
============================================================================================
<S> <C>
Assets
Investments, at value (cost $776,868,096)--see accompanying statement $761,584,490
--------------------------------------------------------------------------------------------
Cash 2,887
--------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 6,051,518
Interest, dividends and principal paydowns 4,974,221
Other 3,331
------------
Total assets 772,616,447
============================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 7,709,392
Shares of capital stock redeemed 2,090,088
Directors' compensation 8,224
Transfer and shareholder servicing agent fees 369
Other 23,765
------------
Total liabilities 9,831,838
============================================================================================
Net Assets $762,784,609
============
============================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 504,963
--------------------------------------------------------------------------------------------
Additional paid-in capital 776,659,665
--------------------------------------------------------------------------------------------
Undistributed net investment income 14,123,878
--------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (13,220,291)
--------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (15,283,606)
------------
Net assets--applicable to 504,962,800 shares of capital stock outstanding $762,784,609
============
============================================================================================
Net Asset Value, Redemption Price Per Share and Offering Price Per Share $1.51
</TABLE>
See accompanying Notes to Financial Statements.
14 Total Return Portfolio
<PAGE>
Statement of Operations For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
============================================================================================
<S> <C>
Investment Income
Interest $ 12,938,736
--------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $6,696) 3,795,665
------------
Total income 16,734,401
============================================================================================
Expenses
Management fees 2,538,055
--------------------------------------------------------------------------------------------
Custodian fees and expenses 16,606
--------------------------------------------------------------------------------------------
Directors' compensation 14,176
--------------------------------------------------------------------------------------------
Accounting service fees 2,868
--------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,234
--------------------------------------------------------------------------------------------
Other 18,739
------------
Total expenses 2,591,678
Less expenses paid indirectly (10,912)
------------
Net expenses 2,580,766
============================================================================================
Net Investment Income 14,153,635
============================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (14,185,750)
Closing of futures contracts 9,910,674
------------
Net realized loss (4,275,076)
--------------------------------------------------------------------------------------------
Net change in unrealized depreciation on investments (5,686,314)
------------
Net realized and unrealized loss (9,961,390)
============================================================================================
Net Increase in Net Assets Resulting from Operations $ 4,192,245
============
</TABLE>
See accompanying Notes to Financial Statements.
Total Return Portfolio 15
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 2000 December 31,
(Unaudited) 1999
===================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 14,153,635 $ 40,249,770
-------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (4,275,076) 99,654,480
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (5,686,314) (156,341,136)
-------------- --------------
Net increase (decrease) in net assets resulting from operations 4,192,245 (16,436,886)
===================================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income (40,253,730) (43,060,498)
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (98,059,927) (47,469,898)
===================================================================================================================
Capital Stock Transactions
Net decrease in net assets resulting from capital stock transactions (177,130,842) (162,878,234)
===================================================================================================================
Net Assets
Total decrease (311,252,254) (269,845,516)
-------------------------------------------------------------------------------------------------------------------
Beginning of period 1,074,036,863 1,343,882,379
-------------- --------------
End of period (including undistributed net investment
income of $14,123,878 and $40,223,973, respectively) $ 762,784,609 $1,074,036,863
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
16 Total Return Portfolio
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended June 30,
2000 Year Ended December 31,
(Unaudited) 1999 1998 1997 1996(1) 1995
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $1.75 $1.91 $2.00 $1.91 $1.75 $1.51
-----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .04 .07 .06 .07 .07 .07
Net realized and unrealized gain (loss) (.02) (.10) .14 .25 .11 .30
-----------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations .02 (.03) .20 .32 .18 .37
-----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.08) (.06) (.07) (.07) (.01) (.07)
Distributions from net realized gain (.18) (.07) (.22) (.16) (.01) (.06)
-----------------------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.26) (.13) (.29) (.23) (.02) (.13)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.51 $1.75 $1.91 $2.00 $1.91 $1.75
===== ===== ===== ===== ===== =====
=============================================================================================================================
Total Return, at Net Asset Value(2) 1.53% (1.54)% 10.90% 18.81% 10.14% 24.66%
=============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $763 $1,074 $1,344 $1,279 $1,122 $994
-----------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $899 $1,230 $1,299 $1,208 $1,058 $864(3)
-----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 3.17% 3.27% 3.30% 3.57% 4.12% 4.48%
Expenses 0.58% 0.55% 0.55%(5) 0.55%(5) 0.55%(5) 0.59%(5)
-----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 77% 113% 93% 104% 104% 62%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor to the
Portfolio.
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 of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
Total Return Portfolio 17
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant Accounting Policies
Total Return Portfolio (the Portfolio) is a series of Panorama Series Fund, Inc.
(the Company) which is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Portfolio's
investment objective is to seek to maximize total investment return (including
capital appreciation and income) principally by allocating its assets among
stocks, corporate bonds, U.S. government securities and money market
instruments, according to changing market conditions. The Portfolio's investment
advisor is OppenheimerFunds, Inc. (the Manager). Shares of the Portfolio 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 Portfolio.
--------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Portfolio'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 closing
bid and asked prices, and if not, at the closing bid price. Securities
(including restricted securities) for which quotations are not readily available
are valued primarily using dealer-supplied valuations, a portfolio pricing
service authorized by the Board of Directors, or at their fair value. Fair value
is determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value.)
--------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Portfolio are
maintained in U.S. dollars. Prices of securities denominated in foreign
currencies are translated into U.S. dollars at the closing rates of exchange.
Amounts related to the purchase and sale of foreign securities and investment
income are translated at the rates of exchange prevailing on the respective
dates of such transactions.
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 Portfolio's Statement of Operations.
--------------------------------------------------------------------------------
Repurchase Agreements. The Portfolio 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 Portfolio may be delayed or limited.
--------------------------------------------------------------------------------
Federal Taxes. The Portfolio 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.
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
18 Total Return Portfolio
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of paydown gains and losses and the
recognition of certain foreign currency gains (losses) as ordinary income (loss)
for tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and 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 Portfolio.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Portfolio.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Portfolio is informed of the dividend
if such information is obtained subsequent to the ex-dividend 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.
================================================================================
2. Shares of Capital Stock
The Portfolio has authorized 1,950 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, 2000 Year Ended December 31, 1999
---------------------------------- ---------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 11,856,083 $ 18,595,487 39,107,889 $ 70,396,179
Dividends and/or distributions reinvested 93,455,174 138,313,657 51,437,725 90,530,396
Redeemed (212,346,806) (334,039,986) (182,957,660) (323,804,809)
------------ ------------- ------------ -------------
Net decrease (107,035,549) $(177,130,842) (92,412,046) $(162,878,234)
============ ============= ============ =============
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended June 30, 2000, were
$637,602,020 and $800,702,808, respectively.
Total Return Portfolio 19
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Portfolio. The annual fees are 0.625% of
the first $600 million of average daily net assets of the Portfolio and 0.45% of
average daily net assets in excess of $600 million. The Portfolio's management
fee for the six months ended June 30, 2000, was an annualized rate of 0.57%,
before any waiver by the Manager.
--------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Portfolio at
an annual fee of $15,000 plus out-of-pocket costs and expenses reasonably
incurred.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer agent for the Portfolio and is responsible for maintaining the
shareholder registry and shareholder accounting records for the Portfolio. OFS
provides these services for cost.
================================================================================
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Portfolio may buy and sell futures contracts that relate to
broadly-based securities indices "financial futures" or debt securities
"interest rate futures" in order to gain exposure to or to seek to protect
against changes in market value of stock and bonds or interest rates. The
Portfolio may also buy or write put or call options on these futures contracts.
The Portfolio generally sells futures contracts to hedge against
increases in interest rates and decreases in market value of portfolio
securities. The Portfolio may also purchase futures contracts to gain exposure
to changes in interest rates as it may be more efficient or cost effective than
actually buying fixed income securities.
Upon entering into a futures contract, the Portfolio 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 Portfolio each day. The variation margin payments
are equal to the daily changes in the contract value and are recorded as
unrealized gains and losses. The Portfolio recognizes a realized gain or loss
when the contract is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include
the possibility that there may be an illiquid market and that a change in the
value of the contract or option may not correlate with changes in the value of
the underlying securities.
================================================================================
6. Illiquid Securities
As of June 30, 2000, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Portfolio intends to invest no more than 15% of its net assets (determined at
the time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of June 30,
2000, was $10,309,620, which represents 1.35% of the Portfolio's net assets.
Certain restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limit.
20 Total Return Portfolio
<PAGE>
Total Return Portfolio
A Series of Panorama Series Fund, Inc.
<TABLE>
====================================================================================================================================
<S> <C>
Officers and Directors James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, President
William L. Armstrong, Director
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
Patrick Bisbey, Vice President
David Dalzell, Vice President
George Evans, Vice President
Alan Gilston, Vice President
Stephen F. Libera, Vice President
David P. Negri, Vice President
Thomas P. Reedy, 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 J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
====================================================================================================================================
Investment Advisor OppenheimerFunds, Inc.
====================================================================================================================================
Transfer Agent OppenheimerFunds Services
====================================================================================================================================
Custodian of Portfolio Securities The Bank of New York
====================================================================================================================================
Independent Auditors Deloitte & Touche LLP
====================================================================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the
Portfolio without examination of those records by the independent auditors.
This is a copy of a report to shareholders of Total Return Portfolio. For other material
information concerning the Portfolio, see its prospectus. This report must be preceded or
accompanied by the Portfolio's prospectus, the separate account prospectus, and current
standardized average annual total returns for the separate account being offered.
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>
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
Total Return Portfolio 21
