Annual Report December 31, 1999
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Government Securities
Portfolio
A Series of Panorama Series Fund, Inc.
[logo] OppenheimerFunds(R)
The Right Way to Invest
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Panorama Series Fund, Inc.--Government Securities Portfolio
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Objective
The Panorama Series Fund, Inc.--Government Securities Portfolio seeks a high
level of current income with a high degree of safety of principal by investing
primarily in U.S. government securities and U.S. government-related securities.
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Narrative by David Negri and John Kowalik, Portfolio Managers
After a turbulent environment in 1998, the world markets began to stabilize in
1999. The U.S. inflation rate remained low, while consumer spending and
corporate earnings continued to grow. With the signs of worldwide recession
fading, the Fed began reversing the interest rate reductions it made in 1998,
raising its key rate 0.25% three times.
During the 1999 fiscal year we continued to closely monitor the
ever-changing economic environment and revise our investment strategy as
necessary. Our extensive research on Treasury securities shows that two- to
three-year issues provide the greatest return for the risk involved. In short,
we believe they are the "sweet spot" on the Treasury yield curve. Generally, we
keep our Treasury holdings within this range, moving to the short or long end of
the range based on our view of interest rate trends. This provides a measure of
price stability for the Fund, while the use of mortgage-backed securities (MBSs)
enhances its yield.
MBSs are subject to prepayment risk, or the possibility that property
owners will refinance their mortgages, especially when interest rates fall. Due
to this risk and the uncertainty associated with it, MBSs offer higher yields
than Treasuries but are more volatile. They may outperform Treasuries when
interest rates rise but provide their best total returns when interest rates are
stable.
At the start of the fiscal year, the Fund was underweighted in MBSs,
which was fortunate, since they generally underperform when rates decline. Later
in the period, MBS had become relatively inexpensive, though they still offered
attractive yields, so we steadily increased the MBS portfolio to nearly 50% of
assets.
MBSs were a major contributor to the Fund's performance. As interest
rates rose in 1999, our Treasury investments lost some value. Fortunately, we
were still focused on shorter-term issues, so the impact was minimized. And any
impact was offset by results in the MBS portfolio, which performed very well. We
owned short-term collateralized mortgage obligations (CMOs), which have
collateral to secure payment of interest and principal. Less volatile than most
MBSs when rates change, CMOs still offer much higher yields than comparable
Treasuries.
After April, we moved the Fund's duration (a measure of sensitivity to
interest rate changes) to a relatively neutral position. We also trimmed our MBS
holdings and began a period of "cherry picking." Despite fairly predictable
interest rates in recent months, mortgage-backed securities have not done as
well as might be expected. The spillover effect has made MBSs more volatile than
the interest rate and economic situation warrant. For this reason, we have held
the Fund's MBS allocation below normal levels since mid-summer while actively
taking advantage of short-term anomalies in the marketplace. For instance, we
have purchased MBSs and CMOs whose prices were depressed temporarily and traded
them quickly when their prices rebounded.
We look for interest rates to remain in a relatively narrow range,
which would bode well for the Fund's MBS portfolio. In fact, we expect to
increase our MBS investments in the coming quarter. This should help to keep the
Fund's income strong while our emphasis on the shortest of intermediate
Treasuries keeps its value relatively stable.
2 Government Securities Portfolio
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Panorama Series Fund, Inc.--Government Securities Portfolio
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Management's Discussion of Performance. During the fiscal year that ended
December 31, 1999, Government Securities Portfolio endured a period of volatile
interest rates. To protect the Portfolio against fluctuating interest rates, we
maintained a shorter-duration Treasury portfolio and selectively purchased and
sold short-term collateralized mortgage obligations and other mortgage-backed
securities. Due to technical factors, including a larger-than-usual supply of
alternative fixed income investments, mortgage-backed securities as a whole did
not fare particularly well. However, these instruments provided important
diversification for the Fund and boosted its current and effective yields. The
Fund's portfolio holdings, allocations and strategies are subject to change.
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Comparing the Portfolio's Performance to the Market. The graph that follows
shows the performance of a hypothetical $10,000 investment in the Portfolio held
until December 31, 1999. Performance information does not reflect charges that
apply to separate accounts investing in the Portfolio. If these charges were
taken into account, performance would be lower.
The Portfolio is compared to the performance of the Merrill Lynch
Government Master Index, which is a composite of both Treasury and Agency Master
indices. It includes all issues of the U.S. Government and agencies thereof,
exclusive of pass-through securities and flower bonds. Index performance
reflects the reinvestment of income but does not consider the effect of
transaction costs, and none of the data that follows shows the effect of taxes.
The Portfolio's performance reflects the effects of the Portfolio's business and
operating expenses. While index comparisons may be useful to provide a benchmark
for the Portfolio's performance, it must be noted that the Portfolio's
investments are not limited to the investments in the index.
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Panorama Series Fund, Inc. Government Securities Portfolio and
Merrill Lynch Government Master Index
[LINE CHART]
<TABLE>
<CAPTION>
Panorama Series Fund, Inc. Government Securities Portfolio Merrill Lynch Government Master Index
<S> <C> <C>
5.13.92 10000 10000
12.31.92 10661 10834
12.31.93 11832 11986
12.31.94 11254 11599
12.31.95 13382 13722
12.31.96 13640 14101
12.31.97 14843 15455
12.31.98 16052 16977
12.31.99 15773 16619
</TABLE>
Average Annual Total Return of the Portfolio at 12/31/99
1-Year -1.73% 5-Year 6.99% Life 6.15%
The Fund's performance may from time to time be subject to substantial
short-term changes, particularly during periods of market or interest rate
volatility. For updates on the Fund's performance, please call us at
1.800.981.2871.
The performance information in the graph for the Merrill Lynch Government Master
Index begins on 4/30/92. The inception date of the Portfolio is 5/13/92.
Total returns and the ending account value in the graph show change in share
value and include reinvestment of all dividends and capital gains distributions.
Past performance is not predictive of future performance.
Government Securities Portfolio 3
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Statement of Investments December 31, 1999
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<TABLE>
<CAPTION>
Principal Market Value
Amount Note 1
====================================================================================================================
<S> <C> <C>
Mortgage-Backed Obligations--23.5%
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Government Agency--23.5%
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FHLMC/FNMA/Sponsored--9.5%
Federal Home Loan Mortgage Corp., Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation Certificates, 10.50%, 10/1/20 $ 80,894 $ 86,430
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Federal National Mortgage Assn.:
6.50%, 2/1/09-8/1/28 1,799,749 1,706,650
7.50%, 9/1/22 125,241 124,459
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1,917,539
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GNMA/Guaranteed--14.0%
Government National Mortgage Assn.:
6.50%, 7/15/28 1,128,297 1,058,829
7%, 10/15/23-3/15/26 1,811,269 1,758,389
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2,817,218
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Total Mortgage-Backed Obligations (Cost $4,953,048) 4,734,757
====================================================================================================================
U.S. Government Obligations--54.6%
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U.S. Treasury Bonds:
7.50%, 11/15/16(1) 2,175,000 2,327,250
8.125%, 8/15/19 500,000 569,844
9.25%, 2/15/16 1,200,000 1,482,376
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U.S. Treasury Nts.:
5.75%, 8/15/03 500,000 489,687
7.50%, 11/15/01-2/15/05 3,405,000 3,544,300
7.875%, 11/15/04 2,255,000 2,386,072
8.50%, 2/15/00 200,000 200,937
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Total U.S. Government Obligations (Cost $11,083,757) 11,000,466
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Short-Term Notes--12.3%
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Federal Farm Credit Bank, Medium-Term Nts., 6.37%, 9/1/00(2) 1,000,000 1,000,160
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Tennessee Valley Authority, 5.67%, 1/28/00(2) 1,500,000 1,493,621
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Total Short-Term Notes (Cost $2,494,402) 2,493,781
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Repurchase Agreement--3.0%
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Repurchase agreement with Banc One Capital Markets, Inc., 2.75%, dated 12/31/99,
to be repurchased at $600,138 on 1/3/00, collateralized by U.S. Treasury Bonds,
5.25%-12%, 2/15/01-11/15/28, with a value of $235,494 and U.S. Treasury Nts.,
5%-7.50%, 12/31/00-2/15/07, with a value of $376,855 (Cost $600,000) 600,000 600,000
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Total Investments, at Value (Cost $19,131,207) 93.4% 18,829,004
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Other Assets Net of Liabilities 6.6 1,321,435
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Net Assets 100.0% $20,150,439
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</TABLE>
1. Securities with an aggregate market value of $42,936 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
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.
4 Government Securities Portfolio
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Statement of Assets and Liabilities December 31, 1999
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<TABLE>
<S> <C>
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Assets
Investments, at value (cost $19,131,207)--see accompanying statement $18,829,004
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Cash 1,091,399
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Receivables and other assets:
Interest and principal paydowns 259,450
Shares of capital stock sold 117
Other 1,281
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Total assets 20,181,251
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Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 9,276
Legal, auditing and other professional fees 6,456
Shareholder reports 6,275
Daily variation on futures contracts 6,000
Accounting service fees 1,311
Directors' compensation 325
Transfer and shareholder servicing agent fees 184
Other 985
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Total liabilities 30,812
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Net Assets $20,150,439
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Composition of Net Assets
Par value of shares of capital stock $ 19,278
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Additional paid-in capital 20,074,450
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Undistributed net investment income 1,306,007
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Accumulated net realized loss on investment transactions (924,781)
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Net unrealized depreciation on investments (324,515)
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Net assets--applicable to 19,277,681 shares of capital stock outstanding $20,150,439
===========
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Net Asset Value, Redemption Price Per Share and Offering Price Per Share $1.05
</TABLE>
See accompanying Notes to Financial Statements.
Government Securities Portfolio 5
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Statement of Operations For the Year Ended December 31, 1999
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<TABLE>
<S> <C>
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Investment Income
Interest $ 1,471,760
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Expenses
Management fees 119,156
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Accounting service fees 15,000
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Shareholder reports 8,971
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Legal, auditing and other professional fees 7,831
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Custodian fees and expenses 2,549
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Transfer and shareholder servicing agent fees 2,104
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Directors' compensation 1,302
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Other 1,886
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Total expenses 158,799
Less expenses paid indirectly (2,545)
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Net expenses 156,254
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Net Investment Income 1,315,506
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Realized and Unrealized Loss
Net realized loss on:
Investments (92,263)
Closing of futures contracts (229,865)
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Net realized loss (322,128)
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Net change in unrealized appreciation or depreciation on investments (1,564,589)
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Net realized and unrealized loss (1,886,717)
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Net Decrease in Net Assets Resulting from Operations $ (571,211)
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</TABLE>
See accompanying Notes to Financial Statements.
6 Government Securities Portfolio
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Statements of Changes in Net Assets
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<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
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<S> <C> <C>
Operations
Net investment income $ 1,315,506 $ 1,356,876
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Net realized loss (322,128) (140,127)
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Net change in unrealized appreciation or depreciation (1,564,589) 627,658
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Net increase (decrease) in net assets resulting from operations (571,211) 1,844,407
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Dividends and/or Distributions to Shareholders
Dividends from net investment income (1,340,571) (1,367,579)
====================================================================================================================
Capital Stock Transactions
Net increase (decrease) in net assets resulting from capital stock transactions (2,860,658) 727,031
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Net Assets
Total increase (decrease) (4,772,440) 1,203,859
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Beginning of period 24,922,879 23,719,020
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End of period (including undistributed net investment
income of $1,306,007 and $1,337,809, respectively) $20,150,439 $24,922,879
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</TABLE>
See accompanying Notes to Financial Statements.
Government Securities Portfolio 7
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Financial Highlights
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<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998 1997 1996(1) 1995
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<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $1.13 $1.11 $1.09 $1.07 $0.95
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Income (loss) from investment operations:
Net investment income .07 .06 .07 .07 .06
Net realized and unrealized gain (loss) (.09) .03 .02 (.05) .12
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Total income (loss) from investment operations (.02) .09 .09 .02 .18
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Dividends to shareholders:
Dividends from net investment income (.06) (.07) (.07) --(2) (.06)
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Total dividends to shareholders (.06) (.07) (.07) -- (.06)
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Net asset value, end of period $1.05 $1.13 $1.11 $1.09 $1.07
===== ===== ===== ===== =====
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Total Return, at Net Asset Value(3) (1.73)% 8.14% 8.82% 1.93% 18.91%
========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $20,150 $24,923 $23,719 $23,236 $24,309
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Average net assets (in thousands) $22,683 $24,044 $23,034 $23,880 $23,157(4)
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Ratios to average net assets:(5)
Net investment income 5.80% 5.64% 5.96% 6.11% 6.08%
Expenses 0.70% 0.68%(6) 0.67%(6) 0.62%(6) 0.71%(6)
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Portfolio turnover rate(7) 14% 43% 0% 6% 55%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor to the
Fund.
2. Less than $0.005 per share.
3. 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 of 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
figures for all periods shown.
4. This information is not covered by the auditors' opinion.
5. Annualized for periods less than one full year.
6. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
7. 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 December 31, 1999, were $2,666,016 and $3,845,969, respectively.
See accompanying Notes to Financial Statements.
8 Government Securities Portfolio
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Notes to Financial Statements
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1. Significant Accounting Policies
Government Securities 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 a high level of current income with a high
degree of safety of principal by investing primarily (at least 65% of its total
assets under normal market conditions) in U.S. government securities and U.S.
government-related securities. 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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
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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. As of December 31,
1999, the Fund had available for federal income tax purposes an unused capital
loss carryover of approximately $862,000, which expires between 2002 and 2007.
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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.
Government Securities Portfolio 9
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Notes to Financial Statements (Continued)
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1. Significant Accounting Policies (continued)
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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended December 31, 1999, amounts have been reclassified to reflect a
decrease in undistributed net investment income of $6,737. Accumulated net
realized loss on investments was decreased by the same amount.
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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. Discount on securities purchased is
amortized over the life of the respective securities, in accordance with federal
income tax requirements. Realized gains and losses on investments and options
written and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes. Dividends-in-kind are recognized as income on the ex-dividend date, at
the current market value of the underlying security. Interest on payment-in-kind
debt instruments is accrued as income at the coupon rate and a market adjustment
is made periodically.
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.
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2. Shares of Capital Stock
The Fund has authorized 200 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1999 Year Ended December 31, 1998
------------------------------ -----------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 2,089,799 $ 2,246,159 4,843,177 $ 5,379,324
Dividends and/or distributions reinvested 1,264,689 1,340,571 1,290,169 1,367,579
Redeemed (6,090,812) (6,447,388) (5,441,013) (6,019,872)
---------- ----------- ---------- -----------
Net increase (decrease) (2,736,324) $(2,860,658) 692,333 $ 727,031
========== =========== ========== ===========
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of December 31, 1999, net unrealized depreciation on securities of $302,203
was composed of gross appreciation of $168,529, and gross depreciation of
$470,732.
10 Government Securities Portfolio
<PAGE>
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Notes to Financial Statements (Continued)
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4. Management Fees and Other Transactions with Affiliates
Management Fees. Management Fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.525%
of the first $300 million average daily net assets of the Fund, 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 year ended December 31, 1999, was 0.525% of
average annual net assets.
- --------------------------------------------------------------------------------
Accounting Fees. 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.
- --------------------------------------------------------------------------------
Transfer Agent Fees. 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 for cost.
================================================================================
5. Futures Contracts
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases
in interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund 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 Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund may recognize 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.
As of December 31, 1999, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts December 31, 1999 Depreciation
- --------------------------------------------------------------------------------------------------------
Contracts to Purchase
- ---------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds, 20 yr. 3/22/00 12 $1,091,250 $22,312
=======
</TABLE>
Government Securities Portfolio 11
<PAGE>
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Independent Auditors' Report
- --------------------------------------------------------------------------------
================================================================================
To the Board of Directors and Shareholders of Government Securities Portfolio:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Government Securities Portfolio (which is a
series of Panorama Series Fund, Inc.) as of December 31, 1999, the related
statement of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1999 and 1998, and the financial
highlights for the period January 1, 1996 to December 31, 1999. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the period January 1, 1995 to December 31, 1995, were audited by
other auditors whose report dated February 15, 1996, expressed an unqualified
opinion on this information.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of Government
Securities Portfolio as of December 31, 1999, the results of its operations, the
changes in its net assets, and the financial highlights for the respective
stated periods, in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Denver, Colorado
January 24, 2000
12 Government Securities Portfolio
<PAGE>
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Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
Government Securities Portfolio 13
<PAGE>
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Government Securities Portfolio
- --------------------------------------------------------------------------------
A Series of Panorama Series Fund, Inc.
================================================================================
Officers and Directors James C. Swain, Director and
Chairman of the Board
Bridget A. Macaskill, President
William H. 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
George Evans, Vice President
Alan Gilston, Vice President
John S. Kowalik, 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 G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
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Investment Advisor OppenheimerFunds, Inc.
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Transfer Agent OppenheimerFunds Services
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Custodian of Portfolio Securities The 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.
This is a copy of a report to shareholders
of Government Securities Portfolio. This
report must be preceded or accompanied by a
Prospectus of Government Securities
Portfolio. For material information
concerning the Funds, 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.
14 Government Securities Portfolio
