Annual Report December 31, 1999
================================================================================
Growth Portfolio
A Series of Panorama Series Fund, Inc.
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
- --------------------------------------------------------------------------------
Panorama Series Fund, Inc.--Growth Portfolio
- --------------------------------------------------------------------------------
================================================================================
Objective
Panorama Series Fund, Inc.--Growth Portfolio seeks long-term growth of capital
by investing primarily in common stocks with low price-earnings ratios and
better-than-anticipated earnings. Realization of current income is a secondary
consideration.
================================================================================
Narrative by Peter Antos and Team, Portfolio Managers
The fiscal year that ended December 31, 1999, saw the continuation of a trend in
the market favoring large growth stocks over the solid, undervalued companies in
which the Fund invests. While we are disappointed with the Fund's return over
the period, we believe that, over time as in the past, low P/E stocks with
evidence of impending improvement are likely to reward investors for their
perseverance.
Historically, value stocks 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 recent one-year period, actual U.S. economic growth
remained robust. However, the threat of slowing growth fueled widespread
economic uncertainty. In early 1999, those uncertainties were driven by economic
difficulties in the world's emerging markets. Significant weakness in Asian
markets, along with Brazil's devaluation of its currency in January 1999, raised
the prospect of slowing corporate growth, since multinational corporations can
sell fewer products in depressed markets. Consequently, the performance of the
overall market--and value-oriented stocks in particular--suffered.
In April 1999, continuing strength in the U.S. economy and signs of
recovery in emerging markets caused value-oriented stocks to rise. However, the
rebound proved short-lived. In June, the Federal Reserve Board (Fed) embarked on
a series of interest rate hikes aimed at preventing the economy from
overheating. The Fed's actions renewed concerns regarding the sustainability of
U.S. economic growth. Value-oriented stocks again suffered as a result, as
investors focused once more on a narrow group of mostly high P/E growth stocks.
Several of our holdings in traditional value-oriented groups, such as housing
and manufacturing, were particularly hard hit despite good earnings and strong
business conditions.
We believe we positioned the Fund to perform as strongly as possible
during a difficult time for value investing. For example, we entered the period
with substantial holdings among technology and financial company stocks that met
our criteria for both attractive valuations and potential for quantitative signs
of improvement. Many of these stocks performed relatively well for much of the
period. When the Fed began raising interest rates in mid-1999, we trimmed the
Fund's financial holdings, since interest rate increases tend to hurt financial
stocks. Our timely action limited the Fund's losses in this sector.
During the second half of 1999, we implemented a sophisticated new
screening system to help us better evaluate the broad universe of value-oriented
stocks. Whereas we used to focus primarily on positive earnings surprises to
help identify attractive investment opportunities among low P/E value stocks, we
now incorporate a broader range of factors into our analytic process, such as
quality and price patterns, as well as earnings-related measures. This highly
quantitative process provides a more robust analysis of potential holdings.
It's important to note that our basic investment philosophy remains
unchanged. We continue to employ quantitative and fundamental analysis to
identify overlooked, undervalued investment opportunities. Our new screening
system enhances our ability to implement that strategy. Although the
multi-factor screening system was only in place during the second half of the
recent period, it enabled us to identify a number of investments that helped the
Fund's performance.
Historically, we have found that buying stocks with low price-earnings
ratios--the value approach--creates a portfolio that, over the long term, can
outperform the stock market. We remain committed to value investing, and
continually seek value companies we consider likely to surpass the market's
expectations. We believe such companies are likely to add value to the Fund's
portfolio over time. We further believe our disciplined strategy positions
investors to benefit from such opportunities.
2 Growth Portfolio
<PAGE>
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Panorama Series Fund, Inc.--Growth Portfolio
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================================================================================
Management's discussion of performance. The fiscal year that ended December 31,
1999, was marked by persistent concerns regarding the sustainability of U.S.
economic growth. These concerns created a generally unfavorable environment for
value-oriented investing. At the beginning of the period, market fears revolved
around the potential negative impact on the U.S. economy of difficulties in
emerging markets. We took advantage of depressed prices among technology and
financial stocks to add to our holdings in these sectors. Although many of these
holdings performed relative strongly in early 1999, overall Fund performance
suffered as the market favored growth-oriented, large-company investments.
Value-oriented stocks recovered during April 1999 in response to strong domestic
economic performance. However, shortly thereafter, interest rate hikes renewed
concerns about U.S. economic growth. Accordingly, we reduced our positions in
the particularly vulnerable financial sector. We also benefited from the
performance of individual stocks in the capital goods and retail sectors.
Nevertheless, generally poor performance in traditional value-oriented sectors,
such as housing and manufacturing, caused Fund performance to suffer. The
portfolio holdings, allocations and strategies are subject to change.
- --------------------------------------------------------------------------------
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 Fund's performance is compared to the performance of the S&P 500
Index, a broad-based index of equity securities widely regarded as a general
measurement of the performance of the U.S. equity securities market. 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.
[Begin Line Chart]
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Panorama Series Fund, Inc.--Growth Portfolio and S&P 500 Index
<TABLE>
<CAPTION>
Panorama Series Fund, Inc.--
Growth Portfolio S&P 500 Index
<S> <C> <C>
12.31.89 10000 10000
9210 9690
12.31.91 12666 12635
14233 13597
12.31.93 17253 14966
17165 15162
12.31.95 23698 20851
28171 25630
12.31.97 35599 34176
38597 43944
12.31.99 37147 53181
</TABLE>
Average Annual Total Return of the Portfolio at 12/31/99
1-Year -3.76% 5-Year 16.70% 10-Year 14.02%
[End Line Chart]
Because the stock market can be volatile, the Fund's performance may be subject
to substantial short-term changes. For updates on the Fund's performance,
please call us at 1.800.981.2871.
The performance information in the graph for the S&P 500 Index begins on
12/31/89. The inception date of the Portfolio is 1/21/82.
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.
Growth Portfolio 3
<PAGE>
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Statement of Investments December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
========================================================================================================================
Common Stocks--94.2%
- ------------------------------------------------------------------------------------------------------------------------
Basic Materials--4.0%
- ------------------------------------------------------------------------------------------------------------------------
Chemicals--1.8%
- ------------------------------------------------------------------------------------------------------------------------
Dow Chemical Co. 61,500 $ 8,217,937
- ------------------------------------------------------------------------------------------------------------------------
Rohm & Haas Co. 100,700 4,097,231
-----------
12,315,168
- ------------------------------------------------------------------------------------------------------------------------
Paper--2.2%
Georgia Pacific Group 79,200 4,019,400
- ------------------------------------------------------------------------------------------------------------------------
Georgia Pacific Group/Timber Group 58,500 1,440,562
- ------------------------------------------------------------------------------------------------------------------------
Louisiana-Pacific Corp. 168,100 2,395,425
- ------------------------------------------------------------------------------------------------------------------------
Weyerhaeuser Co. 99,500 7,145,344
-----------
15,000,731
- ------------------------------------------------------------------------------------------------------------------------
Capital Goods--14.5%
- ------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.8%
General Dynamics Corp. 174,100 9,183,775
- ------------------------------------------------------------------------------------------------------------------------
Northrop Grumman Corp. 49,400 2,670,687
-----------
11,854,462
- ------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--2.2%
Integrated Device Technology, Inc.(1) 61,600 1,786,400
- ------------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 56,600 2,709,725
- ------------------------------------------------------------------------------------------------------------------------
SPX Corp.(1) 122,000 9,859,125
-----------
14,355,250
- ------------------------------------------------------------------------------------------------------------------------
Industrial Services--0.4%
Valassis Communications, Inc.(1) 70,800 2,991,300
- ------------------------------------------------------------------------------------------------------------------------
Manufacturing--10.1%
Avery-Dennison Corp. 37,700 2,747,387
- ------------------------------------------------------------------------------------------------------------------------
Ball Corp. 52,700 2,075,062
- ------------------------------------------------------------------------------------------------------------------------
Briggs & Stratton Corp. 78,700 4,220,287
- ------------------------------------------------------------------------------------------------------------------------
Cooper Industries, Inc. 94,000 3,801,125
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Crane Co. 92,100 1,830,487
- ------------------------------------------------------------------------------------------------------------------------
Dover Corp. 150,000 6,806,250
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Eaton Corp. 29,200 2,120,650
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Honeywell International, Inc. 198,800 11,468,275
- ------------------------------------------------------------------------------------------------------------------------
Miller (Herman), Inc. 84,500 1,943,500
- ------------------------------------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 113,100 11,069,662
- ------------------------------------------------------------------------------------------------------------------------
Parker-Hannifin Corp. 75,600 3,879,225
- ------------------------------------------------------------------------------------------------------------------------
Textron, Inc. 52,300 4,010,756
- ------------------------------------------------------------------------------------------------------------------------
United Technologies Corp. 178,500 11,602,500
-----------
67,575,166
</TABLE>
4 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Communication Services--6.3%
- ------------------------------------------------------------------------------------------------------------------------
Telecommunications: Long Distance--4.7%
ADC Telecommunications, Inc.(1) 54,700 $ 3,969,169
- ------------------------------------------------------------------------------------------------------------------------
ALLTELL Corp. 196,500 16,248,094
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AT&T Corp. 177,300 8,997,975
- ------------------------------------------------------------------------------------------------------------------------
L-3 Communications Holdings, Inc.(1) 58,600 2,439,225
-----------
31,654,463
- ------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--1.6%
BellSouth Corp. 223,200 10,448,550
- ------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--13.7%
- ------------------------------------------------------------------------------------------------------------------------
Autos & Housing--3.3%
Cooper Tire & Rubber Co. 111,300 1,732,106
- ------------------------------------------------------------------------------------------------------------------------
Ethan Allen Interiors, Inc. 77,300 2,478,431
- ------------------------------------------------------------------------------------------------------------------------
Fortune Brands, Inc. 59,400 1,963,912
- ------------------------------------------------------------------------------------------------------------------------
Genuine Parts Co. 180,400 4,476,175
- ------------------------------------------------------------------------------------------------------------------------
Masco Corp. 130,500 3,311,437
- ------------------------------------------------------------------------------------------------------------------------
Stanley Works (The) 83,600 2,518,450
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USG Corp. 63,500 2,992,437
- ------------------------------------------------------------------------------------------------------------------------
Vulcan Materials Co. 67,900 2,711,756
-----------
22,184,704
- ------------------------------------------------------------------------------------------------------------------------
Consumer Services--0.8%
Harte-Hanks, Inc. 73,600 1,600,800
- ------------------------------------------------------------------------------------------------------------------------
Young & Rubicam, Inc. 51,200 3,622,400
-----------
5,223,200
- ------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--0.9%
MGM Grand, Inc. 53,800 2,706,812
- ------------------------------------------------------------------------------------------------------------------------
Mirage Resorts, Inc.(1) 202,200 3,096,188
-----------
5,803,000
- ------------------------------------------------------------------------------------------------------------------------
Media--2.7%
Central Newspapers, Inc., Cl. A 46,400 1,827,000
- ------------------------------------------------------------------------------------------------------------------------
Deluxe Corp. 68,800 1,887,700
- ------------------------------------------------------------------------------------------------------------------------
Gannett Co., Inc. 125,700 10,252,406
- ------------------------------------------------------------------------------------------------------------------------
Knight-Ridder, Inc. 73,400 4,367,300
-----------
18,334,406
- ------------------------------------------------------------------------------------------------------------------------
Retail: General--1.8%
Family Dollar Stores, Inc. 91,600 1,494,225
- ------------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1) 124,800 6,310,200
- ------------------------------------------------------------------------------------------------------------------------
May Department Stores Co. 51,500 1,660,875
- ------------------------------------------------------------------------------------------------------------------------
Nordstrom, Inc. 87,600 2,294,025
-----------
11,759,325
</TABLE>
Growth Portfolio 5
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--2.6%
- ------------------------------------------------------------------------------------------------------------------------
Circuit City Stores-Circuit City Group 107,800 $ 4,857,738
- ------------------------------------------------------------------------------------------------------------------------
Gap, Inc. 149,600 6,881,600
- ------------------------------------------------------------------------------------------------------------------------
Ross Stores, Inc. 124,200 2,227,838
- ------------------------------------------------------------------------------------------------------------------------
Sherwin-Williams Co. 91,600 1,923,600
- ------------------------------------------------------------------------------------------------------------------------
TJX Cos., Inc. 86,200 1,761,713
-----------
17,652,489
- ------------------------------------------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--1.6%
Jones Apparel Group, Inc.(1) 158,400 4,296,600
- ------------------------------------------------------------------------------------------------------------------------
Liz Claiborne, Inc. 53,900 2,027,988
- ------------------------------------------------------------------------------------------------------------------------
Shaw Industries, Inc. 184,200 2,843,588
- ------------------------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc. 79,200 1,386,000
-----------
10,554,176
- ------------------------------------------------------------------------------------------------------------------------
Consumer Staples--7.4%
- ------------------------------------------------------------------------------------------------------------------------
Beverages--2.0%
Adolph Coors Co., Cl. B 64,300 3,375,750
- ------------------------------------------------------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 139,900 9,915,413
-----------
13,291,163
- ------------------------------------------------------------------------------------------------------------------------
Entertainment--0.5%
Brinker International, Inc.(1) 83,200 1,996,800
- ------------------------------------------------------------------------------------------------------------------------
Darden Restaurants, Inc. 79,800 1,446,375
-----------
3,443,175
- ------------------------------------------------------------------------------------------------------------------------
Food--1.9%
Flowers Industries, Inc. 80,800 1,287,750
- ------------------------------------------------------------------------------------------------------------------------
Hormel Foods Corp. 38,600 1,568,125
- ------------------------------------------------------------------------------------------------------------------------
IBP, Inc. 212,900 3,832,200
- ------------------------------------------------------------------------------------------------------------------------
International Home Foods, Inc.(1) 110,400 1,918,200
- ------------------------------------------------------------------------------------------------------------------------
Keebler Foods Co.(1) 68,200 1,918,125
- ------------------------------------------------------------------------------------------------------------------------
Sara Lee Corp. 103,600 2,285,675
-----------
12,810,075
- ------------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--0.9%
Albertson's, Inc. 96,200 3,102,450
- ------------------------------------------------------------------------------------------------------------------------
SUPERVALU, Inc. 137,200 2,744,000
-----------
5,846,450
</TABLE>
6 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Household Goods--1.7%
Kimberly-Clark Corp. 169,100 $11,033,775
- ------------------------------------------------------------------------------------------------------------------------
Tobacco--0.4%
UST, Inc. 115,500 2,909,156
- ------------------------------------------------------------------------------------------------------------------------
Energy--9.0%
- ------------------------------------------------------------------------------------------------------------------------
Energy Services--1.1%
Anadarko Petroleum Corp. 53,600 1,829,100
- ------------------------------------------------------------------------------------------------------------------------
ENSCO International, Inc. 129,000 2,950,875
- ------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc.(1) 161,000 2,676,625
-----------
7,456,600
- ------------------------------------------------------------------------------------------------------------------------
Oil: Domestic--4.6%
Apache Corp. 67,100 2,478,506
- ------------------------------------------------------------------------------------------------------------------------
Burlington Resources, Inc. 53,700 1,775,456
- ------------------------------------------------------------------------------------------------------------------------
Conoco, Inc., Cl. A 112,700 2,789,325
- ------------------------------------------------------------------------------------------------------------------------
Exxon Mobil Corp. 217,588 17,529,433
- ------------------------------------------------------------------------------------------------------------------------
Murphy Oil Corp. 37,600 2,157,300
- ------------------------------------------------------------------------------------------------------------------------
Texaco, Inc. 71,500 3,883,344
-----------
30,613,364
- ------------------------------------------------------------------------------------------------------------------------
Oil: International--3.3%
BP Amoco plc, ADR 160,400 9,513,725
- ------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co., NY Shares 132,800 8,026,100
- ------------------------------------------------------------------------------------------------------------------------
Total Fina SA, Sponsored ADR 62,100 4,300,425
-----------
21,840,250
- ------------------------------------------------------------------------------------------------------------------------
Financial--18.4%
- ------------------------------------------------------------------------------------------------------------------------
Banks--1.9%
Chase Manhattan Corp. 41,000 3,185,188
- ------------------------------------------------------------------------------------------------------------------------
Roslyn Bancorp, Inc. 48,100 889,850
- ------------------------------------------------------------------------------------------------------------------------
UnionBanCal Corp. 61,400 2,421,463
- ------------------------------------------------------------------------------------------------------------------------
Wachovia Corp. 50,700 3,447,600
- ------------------------------------------------------------------------------------------------------------------------
Wells Fargo Co. 67,200 2,717,400
-----------
12,661,501
- ------------------------------------------------------------------------------------------------------------------------
Diversified Financial--3.6%
AMBAC Financial Group, Inc. 74,400 3,882,750
- -------------------------------------------------------------------------------------------------------------------------
Citigroup, Inc. 141,300 7,850,981
- ------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 28,300 2,665,506
- ------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 29,800 4,253,950
- ------------------------------------------------------------------------------------------------------------------------
Nationwide Financial Services, Inc., Cl. A 103,500 2,891,531
- ------------------------------------------------------------------------------------------------------------------------
PMI Group, Inc. (The) 53,900 2,630,994
-----------
24,175,712
</TABLE>
Growth Portfolio 7
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Insurance--12.7%
ACE Ltd. 167,700 $ 2,798,494
- ------------------------------------------------------------------------------------------------------------------------
Allstate Corp. 136,100 3,266,400
- ------------------------------------------------------------------------------------------------------------------------
American General Corp. 53,600 4,066,900
- ------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 65,175 7,047,047
- ------------------------------------------------------------------------------------------------------------------------
AXA Financial, Inc. 227,700 7,713,338
- ------------------------------------------------------------------------------------------------------------------------
Chubb Corp. 82,800 4,662,675
- ------------------------------------------------------------------------------------------------------------------------
Cigna Corp. 108,900 8,773,256
- ------------------------------------------------------------------------------------------------------------------------
Conseco, Inc. 123,200 2,202,200
- ------------------------------------------------------------------------------------------------------------------------
Hartford Life, Inc., Cl. A 66,600 2,930,400
- ------------------------------------------------------------------------------------------------------------------------
Jefferson-Pilot Corp. 144,500 9,862,125
- ------------------------------------------------------------------------------------------------------------------------
Lincoln National Corp. 175,100 7,004,000
- ------------------------------------------------------------------------------------------------------------------------
Manulife Financial Corp.(1) 136,400 1,730,575
- ------------------------------------------------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc. 38,000 3,636,125
- ------------------------------------------------------------------------------------------------------------------------
Radian Group, Inc. 53,900 2,573,725
- ------------------------------------------------------------------------------------------------------------------------
St. Paul Cos., Inc. 106,000 3,570,875
- ------------------------------------------------------------------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 182,600 6,254,050
- ------------------------------------------------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 134,900 6,997,938
-----------
85,090,123
- ------------------------------------------------------------------------------------------------------------------------
Savings & Loans--0.2%
Greenpoint Financial Corp. 53,000 1,262,063
- ------------------------------------------------------------------------------------------------------------------------
Healthcare--1.3%
- ------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--1.3%
United Healthcare Corp. 78,300 4,159,688
- ------------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(1) 67,600 4,457,375
-----------
8,617,063
- ------------------------------------------------------------------------------------------------------------------------
Technology--12.4%
- ------------------------------------------------------------------------------------------------------------------------
Computer Hardware--5.7%
Apple Computer, Inc.(1) 76,400 7,854,875
- ------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 45,900 5,229,731
- ------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 120,100 12,970,800
Lexmark International Group, Inc., Cl. A(1) 130,600 11,819,300
-----------
37,874,706
- ------------------------------------------------------------------------------------------------------------------------
Computer Services--1.2%
First Data Corp. 164,800 8,126,700
- ------------------------------------------------------------------------------------------------------------------------
Computer Software--0.5%
Synopsys, Inc.(1) 44,900 2,997,075
- ------------------------------------------------------------------------------------------------------------------------
Communications Equipment--0.5%
BISYS Group, Inc. (The)(1) 50,500 3,295,125
- ------------------------------------------------------------------------------------------------------------------------
Electronics--4.5%
Cypress Semiconductor Corp.(1) 187,900 6,083,263
- ------------------------------------------------------------------------------------------------------------------------
Dallas Semiconductor Corp. 65,900 4,246,431
- ------------------------------------------------------------------------------------------------------------------------
Intel Corp. 51,100 4,206,169
- ------------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 148,900 6,374,781
- ------------------------------------------------------------------------------------------------------------------------
Teradyne, Inc.(1) 136,400 9,002,400
-----------
29,913,044
</TABLE>
8 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Market Value
Shares Note 1
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Transportation--1.1%
- ------------------------------------------------------------------------------------------------------------------------
Air Transportation--0.5%
Delta Air Lines, Inc. 68,200 $ 3,397,213
- ------------------------------------------------------------------------------------------------------------------------
Railroads & Truckers--0.6%
Union Pacific Corp. 98,800 4,310,150
- ------------------------------------------------------------------------------------------------------------------------
Utilities--6.1%
- ------------------------------------------------------------------------------------------------------------------------
Electric Utilities--5.2%
Carolina Power & Light Co. 59,700 1,817,119
- ------------------------------------------------------------------------------------------------------------------------
Conectiv, Inc. 110,900 1,864,506
- ------------------------------------------------------------------------------------------------------------------------
Duke Energy Corp. 133,600 6,696,700
- ------------------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 80,400 3,442,125
- ------------------------------------------------------------------------------------------------------------------------
Montana Power Co. 185,800 6,700,413
Potomac Electric Power Co. 88,600 2,032,263
- ------------------------------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 100,500 3,498,656
- ------------------------------------------------------------------------------------------------------------------------
Reliant Energy, Inc. 232,800 5,325,300
- ------------------------------------------------------------------------------------------------------------------------
Texas Utilities Co. 88,500 3,147,281
------------
34,524,363
- ------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.9%
El Paso Energy Corp. 115,800 4,494,488
- ------------------------------------------------------------------------------------------------------------------------
NICOR, Inc. 46,800 1,521,000
------------
6,015,488
------------
Total Common Stocks (Cost $604,761,408) 629,210,724
Principal
Amount
========================================================================================================================
Short-Term Notes--2.2%(2)
- ------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.75%, 1/11/00 $ 5,000,000 4,992,014
- ------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.64%, 1/6/00 5,000,000 4,996,083
- ------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.64%, 1/7/00 5,000,000 4,995,300
------------
Total Short-Term Notes (Cost $14,983,397) 14,983,397
========================================================================================================================
Repurchase Agreements--3.3%
- ------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Banc One Capital Markets, Inc., 2.75%, dated 12/31/99,
to be repurchased at $21,804,996 on 1/3/00, collateralized by U.S. Treasury Bonds,
5.25%-12%, 2/15/01-11/15/28, with a value of $8,556,275 and U.S. Treasury Nts.,
5%-7.50%, 12/31/00-2/15/07, with a value of $13,692,377 (Cost $21,800,000) 21,800,000 21,800,000
- ------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $641,544,805) 99.7% 665,994,121
- ------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.3 2,144,704
----------- ------------
Net Assets 100.0% $668,138,825
=========== ============
</TABLE>
1. Non-income producing security.
2. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
Growth Portfolio 9
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
============================================================================================================
Assets
Investments, at value (cost $641,544,805)--see accompanying statement $665,994,121
- ------------------------------------------------------------------------------------------------------------
Cash 1,060,023
- ------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 3,501,797
Interest and dividends 763,235
Shares of capital stock sold 91,498
Other 6,996
-------------
Total assets 671,417,670
============================================================================================================
Liabilities Payables and other liabilities:
Shares of capital stock redeemed 2,251,183
Investments purchased 963,109
Transfer and shareholder servicing agent fees 186
Directors' compensation 158
Other 64,209
------------
Total liabilities 3,278,845
============================================================================================================
Net Assets $668,138,825
============
============================================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 223,515
- ------------------------------------------------------------------------------------------------------------
Additional paid-in capital 515,604,860
- ------------------------------------------------------------------------------------------------------------
Undistributed net investment income 10,353,236
- ------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 117,507,898
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 24,449,316
------------
Net assets--applicable to 223,515,253 shares of capital stock outstanding $668,138,825
============
============================================================================================================
Net Asset Value, Redemption Price Per Share and Offering Price Per Share $2.99
</TABLE>
See accompanying Notes to Financial Statements.
10 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
============================================================================================================
Investment Income
Dividends (net of foreign withholding taxes of $14,452) $ 12,206,173
- ------------------------------------------------------------------------------------------------------------
Interest 2,449,699
-------------
Total income 14,655,872
============================================================================================================
Expenses
Management fees 4,214,611
- ------------------------------------------------------------------------------------------------------------
Accounting service fees 15,000
- ------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 12,291
- ------------------------------------------------------------------------------------------------------------
Directors' compensation 3,916
- ------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 2,107
- ------------------------------------------------------------------------------------------------------------
Other 65,248
-------------
Total expenses 4,313,173
Less expenses paid indirectly (11,885)
-------------
Net expenses 4,301,288
============================================================================================================
Net Investment Income 10,354,584
============================================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on investments 117,643,744
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (159,810,957)
-------------
Net realized and unrealized loss (42,167,213)
============================================================================================================
Net Decrease in Net Assets Resulting from Operations $ (31,812,629)
=============
</TABLE>
See accompanying Notes to Financial Statements.
Growth Portfolio 11
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
<S> <C> <C>
========================================================================================================================
Operations
Net investment income $ 10,354,584 $ 10,211,556
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain 117,643,744 33,310,716
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (159,810,957) 24,320,298
------------- -------------
Net increase (decrease) in net assets resulting from operations (31,812,629) 67,842,570
========================================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income (10,168,122) (9,799,624)
- ------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain (33,413,443) (107,624,371)
========================================================================================================================
Capital Stock Transactions
Net increase (decrease) in net assets resulting from capital stock transactions (175,338,440) 137,081,544
========================================================================================================================
Net Assets
Total increase (decrease) (250,732,634) 87,500,119
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 918,871,459 831,371,340
------------- -------------
End of period (including undistributed net investment income
of $10,353,236 and $10,166,774, respectively) $ 668,138,825 $ 918,871,459
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
12 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998 1997 1996(1) 1995
<S> <C> <C> <C> <C> <C>
================================================================================================================================
Per Share Operating Data
Net asset value, beginning of period $3.27 $3.45 $2.98 $2.53 $1.97
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .05 .04 .04 .04 .04
Net realized and unrealized gain (loss) (.17) .26 .69 .43 .71
- --------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations (.12) .30 .73 .47 .75
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.04) (.04) (.03) (.01) (.04)
Distributions from net realized gain (.12) (.44) (.23) (.01) (.15)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.16) (.48) (.26) (.02) (.19)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.99 $3.27 $3.45 $2.98 $2.53
===== ===== ===== ===== =====
================================================================================================================================
Total Return, at Net Asset Value(2) (3.76)% 8.43% 26.37% 18.87% 38.06%
================================================================================================================================
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $668,139 $918,871 $831,371 $586,222 $405,935
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $808,715 $877,874 $721,555 $494,281 $303,193(3)
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.28% 1.16% 1.38% 1.63% 2.01%
Expenses 0.53% 0.53%(5) 0.54%(5) 0.58%(5) 0.66%(5)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 132% 98% 92% 83% 69%
</TABLE>
1. On March 1, 1996, OppenheimerFunds, Inc. became the investment advisor to the
Fund.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period.
Total returns are not annualized for periods less than one full year. Total
return information does not reflect expenses that apply at the separate account
level or to related insurance products. Inclusion of these charges would reduce
the total return figures for all periods shown.
3. This information is not covered by the auditors' opinion.
4. Annualized for periods less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1999, were $1,004,973,144 and $1,207,551,336, respectively.
See accompanying Notes to Financial Statements.
Growth Portfolio 13
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Growth Portfolio (the Fund) is a series of Panorama Series Fund, Inc. (the
Company) which is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The Fund's
investment objective is to seek long-term growth of capital by investing
primarily in common stocks with low price-earnings ratios and
better-than-anticipated earnings. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). Shares of the Fund are sold only to
separate accounts of life insurance companies, a majority of such shares are
held by separate accounts of Massachusetts Mutual Life Insurance Co., an
affiliate of the investment advisor. The following is a summary of significant
accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
14 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 Fund 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 Fund has authorized 950 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 16,664,490 $ 52,051,244 47,037,578 $ 152,546,029
Dividends and/or distributions reinvested 14,289,038 43,581,565 35,262,461 117,423,995
Redeemed (88,197,706) (270,971,249) (42,207,549) (132,888,480)
----------- ------------- ----------- -------------
Net increase (decrease) (57,244,178) $(175,338,440) 40,092,490 $ 137,081,544
=========== ============= =========== =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of December 31, 1999, net unrealized appreciation on securities of
$24,449,316 was composed of gross appreciation of $70,528,029, and gross
depreciation of $46,078,713.
================================================================================
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 0.625%
of the first $300 million of 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 0.52% 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.
Growth Portfolio 15
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
================================================================================
To the Board of Directors and Shareholders of Growth Portfolio:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Growth 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
confirmations 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 Growth
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
16 Growth Portfolio
<PAGE>
- --------------------------------------------------------------------------------
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.
Distributions of $0.1603 per share were paid to shareholders on March
22, 1999, of which $0.1229 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or in cash, the capital
gain distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended December 31,
1999, which are not designated as capital gain distributions should be
multiplied by 35.51% to arrive at the net amount eligible for the corporate
dividend-received deduction.
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.
Growth Portfolio 17
<PAGE>
- --------------------------------------------------------------------------------
Growth 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 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
=======================================================================================================
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.
This is a copy of a report to shareholders of
Growth Portfolio. This report must be preceded or
accompanied by a Prospectus of Growth Portfolio.
For material information concerning the 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.
</TABLE>
18 Growth Portfolio
