Semiannual Report June 30, 2000
Oppenheimer
International Growth
Fund/VA
A Series of Panorama Series Fund, Inc.
[logo]OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
Panorama Series Fund, Inc.--Oppenheimer International Growth Fund/VA
================================================================================
Objective
Panorama Series Fund, Inc.--Oppenheimer International Growth Fund/VA seeks
long-term growth of capital by investing primarily in equity securities of
companies worldwide whose primary stock market is located outside the United
States.
================================================================================
Narrative by George Evans, Portfolio Manager
We are pleased with Oppenheimer International Growth Fund/VA's performance
during the six-month period that ended June 30, 2000, a period when
international markets were quite volatile.
Early in the six-month period, international markets experienced robust
gains, retreated in the middle months, and advanced again as the period came to
a close. The initial charge was led by high gains among high-tech stocks from
January through March, at which point investors became concerned that the sector
had become too overvalued, too quickly. Investors thus shifted their focus to
other sectors; as a result, foreign markets with large technology weightings
declined noticeably through April. Once the valuations of most price-inflated
technology stocks had returned to more normal levels, foreign markets began to
rebound in May.
Because new technology is a major investment theme for the Fund, we had
a sizable allocation to this area. We responded to the technology-sector
correction after mid-March by liquidating a few positions where, despite strong
fundamentals for the underlying companies, valuations could not be justified. In
other cases, we trimmed positions. Overall, the adjustments we made were not
significant.
Perhaps the most significant change we made in the portfolio during
this period was our increased exposure to the Japanese equity market. For some
time now, we have felt that Japan has not sufficiently addressed the problems
that depressed its economy and markets in the 1990s. For this reason, we have
been cautious about indiscriminately increasing our allocation to Japan.
However, we have selected Japanese companies that we like based on their
individual merits. We've focused almost exclusively on companies that provide
components used in the manufacture of electronic devices and high-tech consumer
products. In particular, we like businesses that have made major investments in
research and development and have maintained competitive positions over the long
term.
Beyond increasing our investment in Japan, we made little change to the
Fund's composition. This reflects our buy-and-hold strategy for managing the
Fund--when we commit to a stock, we expect to own it for what may be years--as
well as our view that, on a fundamental level, little has changed regarding our
holdings in overseas markets since our last report in December.
Throughout the period, we continued to believe that Europe offered many
investment opportunities, despite weakness in the euro. Europe was by far the
Fund's largest regional allocation at the end of the period, and our European
investments cover our major investment themes: mass affluence, new technology,
restructuring and aging. One European stock that we added to the portfolio is
Getronics NV, a Dutch computer services company with a very impressive
management team.(1)
The euro, the currency used by several European countries, was weak
relative to the U.S. dollar during the reporting period. The euro's decline
posed little challenge to performance, however, because most of the Fund's
European companies sell their products and services in more than one currency.
For those that export their products, the weak euro has allowed them to sell at
a noticeable discount, making their products more attractive to buyers. What's
more, when these companies make sales in countries with strong currencies, they
receive higher-valued money that can be converted to the cheaper euro.
Because the stock market can be volatile, the Fund's performance may be subject
to substantial short-term changes.
1. Portfolio is subject to change.
2 Oppenheimer International Growth Fund/VA
<PAGE>
Panorama Series Fund, Inc.--Oppenheimer International Growth Fund/VA
================================================================================
Over the coming months, we largely anticipate a continuation of patterns similar
to those we observed during this reporting period. There are pockets of
opportunity in Japan, and we expect continued strength in European markets.
Throughout Europe, lower rates of inflation, declining unemployment rates, lower
taxes, and easier cross-border flow of workers and capital have proven
beneficial to the economy, business and investors. For the emerging markets, the
picture is mixed but much improved over where it stood two years ago. Although
Asia (outside Japan) remains weak, the outlook for Latin America, especially
Brazil, is positive. In terms of the worldwide markets as a whole, we see great
potential for international investments over the next several years.
For the immediate future, however, we should point out that we also
expect a continuation of the short-term volatility that embroiled foreign
markets in recent months. As bottom-up investors, we work to reduce the impact
of this volatility by investing not in regions but in what we regard as
fundamentally sound individual companies.
Oppenheimer International Growth Fund/VA 3
<PAGE>
Statement of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market Value
Shares Note 1
=================================================================================================================
<S> <C> <C>
Common Stocks--96.8%
-----------------------------------------------------------------------------------------------------------------
Capital Goods--23.8%
-----------------------------------------------------------------------------------------------------------------
Aerospace/Defense--2.3%
Embraer-Empresa Brasileira de Aeronautica SA, Preference 673,000 $ 3,883,553
-----------------------------------------------------------------------------------------------------------------
Electrical Equipment--10.6%
Halma plc 671,100 1,036,298
-----------------------------------------------------------------------------------------------------------------
Mitsubishi Electric Corp. 304,000 3,298,445
-----------------------------------------------------------------------------------------------------------------
Toshiba Corp. 923,000 10,442,144
-----------------------------------------------------------------------------------------------------------------
Ushio, Inc. 113,000 3,118,567
-----------
17,895,454
-----------------------------------------------------------------------------------------------------------------
Industrial Services--3.8%
3i Group plc 123,300 2,536,762
-----------------------------------------------------------------------------------------------------------------
Boskalis Westminster 137,900 2,253,856
-----------------------------------------------------------------------------------------------------------------
Fomento de Construccionse y Contrates SA 83,600 1,586,751
-----------
6,377,369
-----------------------------------------------------------------------------------------------------------------
Manufacturing--7.1%
Cie Financiere Richemont AG, A Units 850 2,297,368
-----------------------------------------------------------------------------------------------------------------
GSI Lumonics, Inc.(1) 91,200 3,203,400
-----------------------------------------------------------------------------------------------------------------
HAMAMATSU PHOTONICS K.K. 34,000 2,426,161
-----------------------------------------------------------------------------------------------------------------
Jenoptik AG 140,800 4,055,875
-----------
11,982,804
-----------------------------------------------------------------------------------------------------------------
Communication Services--2.6%
-----------------------------------------------------------------------------------------------------------------
Telephone Utilities--2.6%
DDI Corp. 100 964,038
-----------------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar) 108,330,673 2,071,134
-----------------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar), Preference 12,684,334 297,421
-----------------------------------------------------------------------------------------------------------------
Videsh Sanchar Nigam Ltd., GDR(2) 70,000 1,102,500
-----------
4,435,093
-----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--12.5%
-----------------------------------------------------------------------------------------------------------------
Autos & Housing--3.6%
Aucnet, Inc. 26,500 1,264,827
-----------------------------------------------------------------------------------------------------------------
Ducati Motor Holding SpA(1) 400,000 1,029,536
-----------------------------------------------------------------------------------------------------------------
Porsche AG, Preference 980 2,677,370
-----------------------------------------------------------------------------------------------------------------
Solidere, GDR(1)(2) 196,400 1,114,570
-----------
6,086,303
-----------------------------------------------------------------------------------------------------------------
Consumer Services--0.7%
Brunel International NV 9,100 54,084
-----------------------------------------------------------------------------------------------------------------
Prosegur CIA de Seguridad SA 87,400 1,026,325
-----------
1,080,409
-----------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--1.2%
Granada Group plc 206,681 2,065,103
-----------------------------------------------------------------------------------------------------------------
Media--6.5%
Impresa-Sociedade Gestora de Participacoes SA(1) 20,400 224,888
-----------------------------------------------------------------------------------------------------------------
Reed International plc 1,131,500 9,849,623
-----------------------------------------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 60,000 936,958
-----------
11,011,469
4 Oppenheimer International Growth Fund/VA
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
-----------------------------------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.5%
Gucci Group NV, NY Registered Shares 9,000 $ 852,750
-----------------------------------------------------------------------------------------------------------------
Consumer Staples--12.6%
-----------------------------------------------------------------------------------------------------------------
Broadcasting--7.1%
Carlton Communications plc 212,200 2,730,621
-----------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR(1) 50,000 3,446,875
-----------------------------------------------------------------------------------------------------------------
ProSieben Media AG, Preference 46,000 5,743,452
-----------
11,920,948
-----------------------------------------------------------------------------------------------------------------
Entertainment--4.0%
Imagineer Co. Ltd. 30,000 567,081
-----------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 21,400 3,745,834
-----------------------------------------------------------------------------------------------------------------
TelePizza SA(1) 123,900 700,746
-----------------------------------------------------------------------------------------------------------------
Village Roadshow Ltd., Cl. A, Preference 1,494,800 1,669,309
-----------
6,682,970
-----------------------------------------------------------------------------------------------------------------
Household Goods--1.5%
Wella AG, Preference 80,000 2,454,016
-----------------------------------------------------------------------------------------------------------------
Energy--0.4%
-----------------------------------------------------------------------------------------------------------------
Energy Services--0.4%
Expro International Group plc 92,500 574,147
-----------------------------------------------------------------------------------------------------------------
Financial--5.8%
-----------------------------------------------------------------------------------------------------------------
Banks--3.8%
Espirito Santo Financial Group, ADR 100,000 1,800,000
-----------------------------------------------------------------------------------------------------------------
Julius Baer Holding AG, Cl. B 650 2,578,255
-----------------------------------------------------------------------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros SA, Sponsored GDR 70,000 2,012,500
-----------
6,390,755
-----------------------------------------------------------------------------------------------------------------
Diversified Financial--1.1%
ICICI Ltd., Sponsored ADR 96,700 1,813,125
-----------------------------------------------------------------------------------------------------------------
Insurance--0.9%
AXA SA 10,000 1,581,690
-----------------------------------------------------------------------------------------------------------------
Healthcare--16.7%
-----------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--9.5%
Actelion Ltd.(1) 1,200 392,596
-----------------------------------------------------------------------------------------------------------------
Biocompatibles International plc(1) 566,600 2,607,638
-----------------------------------------------------------------------------------------------------------------
Elan Corp. plc, ADR(1) 60,000 2,906,250
-----------------------------------------------------------------------------------------------------------------
FUJISAWA PHARMACEUTICAL Co. Ltd. 58,000 2,351,685
-----------------------------------------------------------------------------------------------------------------
Genset, Sponsored ADR(1) 60,000 1,387,500
-----------------------------------------------------------------------------------------------------------------
GPC Biotech AG(1) 7,800 401,743
-----------------------------------------------------------------------------------------------------------------
NeuroSearch AS(1) 13,400 1,050,319
-----------------------------------------------------------------------------------------------------------------
Nicox SA 27,200 1,525,324
-----------------------------------------------------------------------------------------------------------------
Oxford GlycoSciences plc(1) 20,000 572,573
-----------------------------------------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(2) 120,200 1,250,080
-----------------------------------------------------------------------------------------------------------------
Serono SA 1,900 1,589,078
-----------
16,034,786
Oppenheimer International Growth Fund/VA 5
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares Note 1
-----------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--7.2%
Fresenius AG, Preference 7,000 $ 1,623,868
-----------------------------------------------------------------------------------------------------------------
Jomed NV(1) 8,400 333,190
-----------------------------------------------------------------------------------------------------------------
Nichii Gakkan Co. 19,700 865,791
-----------------------------------------------------------------------------------------------------------------
Novogen Ltd.(1) 744,900 1,788,952
-----------------------------------------------------------------------------------------------------------------
Ortivus AB, Cl. B(1) 251,300 845,211
-----------------------------------------------------------------------------------------------------------------
PowderJect Pharmaceuticals plc(1) 288,900 1,749,463
-----------------------------------------------------------------------------------------------------------------
SkyePharma plc(1) 1,600,000 2,083,126
-----------------------------------------------------------------------------------------------------------------
SSL International plc 266,900 2,889,028
------------
12,178,629
-----------------------------------------------------------------------------------------------------------------
Technology--22.4%
-----------------------------------------------------------------------------------------------------------------
Computer Services--6.7%
Cap Gemini SA 10,300 1,821,676
-----------------------------------------------------------------------------------------------------------------
Computer Services Solutions Holding NV 99,300 2,313,092
-----------------------------------------------------------------------------------------------------------------
Getronics NV 303,201 4,693,973
-----------------------------------------------------------------------------------------------------------------
Magnus Holding NV 170,700 1,006,343
-----------------------------------------------------------------------------------------------------------------
Unit 4(1) 30,000 1,436,462
------------
11,271,546
-----------------------------------------------------------------------------------------------------------------
Computer Software--5.8%
Misys plc 350,411 2,960,119
-----------------------------------------------------------------------------------------------------------------
Psion plc 616,200 5,961,008
-----------------------------------------------------------------------------------------------------------------
Solution 6 Holdings Ltd.(1) 465,700 908,720
------------
9,829,847
-----------------------------------------------------------------------------------------------------------------
Communications Equipment--4.2%
Alcatel Alsthom CGE SA, Sponsored ADR 64,000 4,256,000
-----------------------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co. ADR, Cl. B 80,000 1,600,000
-----------------------------------------------------------------------------------------------------------------
Toyo Communications Equipment Co. Ltd. 86,000 1,282,624
------------
7,138,624
-----------------------------------------------------------------------------------------------------------------
Electronics--5.7%
Hoya Corp. 32,000 2,873,210
-----------------------------------------------------------------------------------------------------------------
Sharp Corp. 200,000 3,544,256
-----------------------------------------------------------------------------------------------------------------
Sony Corp. 14,000 1,309,957
-----------------------------------------------------------------------------------------------------------------
STMicroelectronics NV, NY Registered Shares 30,000 1,925,625
------------
9,653,048
------------
Total Common Stocks (Cost $146,125,908) 163,194,438
=================================================================================================================
Preferred Stocks--1.0%
-----------------------------------------------------------------------------------------------------------------
Fresenius Medical Care AG, Preferred (Cost $1,808,983) 40,900 1,711,374
6 Oppenheimer International Growth Fund/VA
<PAGE>
Statement of Investments (Unaudited) (Continued)
Principal Market Value
Amount Note 1
=================================================================================================================
Repurchase Agreements--0.5%
-----------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 6.55%, dated 6/30/00, to be
repurchased at $896,489 on 7/3/00, collateralized by U.S. Treasury Bonds,
7.25%-7.875%, 5/15/16-2/15/21, with a value of $344,822 and U.S. Treasury Nts.,
5.25%-6.625%, 6/30/01-2/15/06, with a value of $570,817 (Cost $896,000) $896,000 $ 896,000
=================================================================================================================
Total Investments, at Value (Cost $148,830,891) 98.3% 165,801,812
-----------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.7 2,825,101
-------- ------------
Net Assets 100.0% $168,626,913
======== ============
</TABLE>
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
<TABLE>
<CAPTION>
Geographical Diversification Market Value Percent
-----------------------------------------------------------------------------
<S> <C> <C>
Japan $ 38,054,619 23.0%
Great Britain 37,615,509 22.6
Germany 18,667,699 11.3
France 12,497,815 7.5
The Netherlands 11,757,810 7.1
Brazil 8,264,608 5.0
Switzerland 7,190,486 4.3
Australia 4,366,981 2.6
Mexico 3,446,875 2.1
Spain 3,313,823 2.0
Canada 3,203,400 1.9
Ireland 2,906,250 1.8
India 2,915,625 1.8
Sweden 2,445,211 1.5
Portugal 2,024,888 1.2
Italy 1,882,286 1.1
Croatia 1,250,080 0.8
Lebanon 1,114,570 0.7
Denmark 1,050,319 0.6
Singapore 936,958 0.6
United States 896,000 0.5
------------ -----
Total $165,801,812 100.0%
============ =====
</TABLE>
1. Non-income-producing security.
2. Represents securities sold under Rule 144A, which is exempt from registration
under the Securities Act of 1933, as amended. These securities have been
determined to be liquid under guidelines established by the Board of
Directors.These securities amount to $3,467,150 or 2.06% of the Fund's net
assets as of June 30, 2000.
See accompanying Notes to Financial Statements.
Oppenheimer International Growth Fund/VA 7
<PAGE>
Statement of Assets and Liabilities June 30, 2000 (Unaudited)
<TABLE>
============================================================================================
<S> <C>
Assets
Investments, at value (cost $148,830,891)--see accompanying statement $165,801,812
--------------------------------------------------------------------------------------------
Cash--foreign currencies (cost $4,014) 4,014
--------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 2,237,701
Shares of capital stock sold 894,024
Interest and dividends 130,060
Other 1,997
------------
Total assets 169,069,608
============================================================================================
Liabilities
Bank overdraft 140,547
--------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 4,003
--------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 168,634
Shares of capital stock redeemed 66,552
Custodian fees 26,474
Registration and filing fees 9,754
Legal, auditing and other professional fees 7,922
Shareholder reports 7,415
Directors' compensation 2,403
Transfer and shareholder servicing agent fees 188
Other 8,803
------------
Total liabilities 442,695
============================================================================================
Net Assets $168,626,913
============
============================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 83,517
--------------------------------------------------------------------------------------------
Additional paid-in capital 117,053,070
--------------------------------------------------------------------------------------------
Undistributed net investment income 565,240
--------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 33,934,274
--------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 16,990,812
------------
Net assets--applicable to 83,516,997 shares of capital stock outstanding $168,626,913
============
============================================================================================
Net Asset Value, Redemption Price Per Share and Offering Price Per Share $2.02
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer International Growth Fund/VA
<PAGE>
Statement of Operations For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
===========================================================================================
<S> <C>
Investment Income
Dividends (net of foreign withholding taxes of $117,237) $ 1,509,598
-------------------------------------------------------------------------------------------
Interest 61,326
------------
Total income 1,570,924
===========================================================================================
Expenses
Management fees 820,010
-------------------------------------------------------------------------------------------
Custodian fees and expenses 130,522
-------------------------------------------------------------------------------------------
Accounting service fees 1,503
-------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,058
-------------------------------------------------------------------------------------------
Directors' compensation 76
-------------------------------------------------------------------------------------------
Other 24,903
------------
Total expenses 978,072
Less expenses paid indirectly (850)
------------
Net expenses 977,222
===========================================================================================
Net Investment Income 593,702
===========================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 36,037,216
Foreign currency transactions (1,862,960)
------------
Net realized gain 34,174,256
-------------------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (24,463,075)
Translation of assets and liabilities denominated in foreign currencies (2,962,926)
------------
Net change (27,426,001)
------------
Net realized and unrealized gain 6,748,255
===========================================================================================
Net Increase in Net Assets Resulting from Operations $ 7,341,957
============
</TABLE>
See accompanying Notes to Financial Statements.
Oppenheimer International Growth Fund/VA 9
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 2000 December 31,
(Unaudited) 1999
===========================================================================================
<S> <C> <C>
Operations
Net investment income $ 593,702 $ 181,380
-------------------------------------------------------------------------------------------
Net realized gain 34,174,256 31,357,287
-------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (27,426,001) 18,521,621
------------ ------------
Net increase in net assets resulting from operations 7,341,957 50,060,288
===========================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income (1,797,509) (580,211)
-------------------------------------------------------------------------------------------
Distributions from net realized gain (28,230,274) (1,992,059)
===========================================================================================
Capital Stock Transactions
Net increase (decrease) in net assets resulting from
capital stock transactions 43,967,748 (3,546,775)
===========================================================================================
Net Assets
Total increase 21,281,922 43,941,243
-------------------------------------------------------------------------------------------
Beginning of period 147,344,991 103,403,748
------------ ------------
End of period (including undistributed net investment
income of $565,240 and $1,769,047, respectively) $168,626,913 $147,344,991
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer International Growth Fund/VA
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended June 30,
2000 Year Ended December 31,
(Unaudited) 1999 1998 1997 1996(1) 1995
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $2.30 $1.57 $1.36 $1.29 $1.15 $1.09
------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .01 --(2) .01 .01 .02 .03
Net realized and unrealized gain .16 .77 .25 .09 .13 .08
------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations .17 .77 .26 .10 .15 .11
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) (.01) (.01) (.01) (.01) (.04)
Distributions from net realized gain (.42) (.03) (.04) (.02) -- (.01)
------------------------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.45) (.04) (.05) (.03) (.01) (.05)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $2.02 $2.30 $1.57 $1.36 $1.29 $1.15
===== ===== ===== ===== ===== =====
==============================================================================================================================
Total Return, at Net Asset Value(3) 5.15% 50.37% 19.40% 8.11% 13.26% 10.30%
==============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $168,627 $147,345 $103,404 $82,257 $62,585 $45,775
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $165,014 $107,403 $ 94,651 $73,318 $56,893 $37,474(4)
------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment income 0.72% 0.17% 0.68% 0.72% 0.76% 1.61%
Expenses 1.19% 1.08% 1.09%(6) 1.12%(6) 1.21%(6) 1.26%(6)
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 44% 127% 48% 49% 54% 85%
</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 (or commencement of operations), 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.
4. This information is not covered by the auditors' opinion.
5. Annualized for periods of less than one full year.
6. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
Oppenheimer International Growth Fund/VA 11
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
1. Significant Accounting Policies
Oppenheimer International Growth Fund/VA (the Fund) is a series of Panorama
Series Portfolio, Inc. (the Company) which is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek long-term growth of capital by
investing under normal circumstances, at least 90% of its assets in equity
securities of companies wherever located, the primary stock market of which is
outside the United States. 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. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value.)
--------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments
is separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
--------------------------------------------------------------------------------
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 Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of paydown gains and losses and the
recognition of certain foreign currency gains (losses) as ordinary income (loss)
for tax purposes. The character of dividends and distributions made during the
fiscal year from net investment income or net realized gains may differ from its
ultimate characterization for federal income tax purposes. Also, due to timing
of dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
12 Oppenheimer International Growth Fund/VA
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
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 200 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 2000 Year Ended December 31, 1999
------------------------------ --------------------------------
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 32,646,212 $ 71,881,081 23,276,935 $ 41,294,941
Dividends and/or distributions reinvested 13,228,098 30,027,783 1,703,490 2,572,270
Redeemed (26,309,846) (57,941,116) (26,922,819) (47,413,986)
----------- ------------ ----------- ------------
Net increase (decrease) 19,564,464 $ 43,967,748 (1,942,394) $ (3,546,775)
=========== ============ =========== ============
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended June 30, 2000, were
$82,974,704 and $71,543,065, respectively.
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund. The annual fees are 1.00% of the
first $250 million of average daily net assets of the Fund and 0.90% of average
daily net assets in excess of $250 million. The Fund's management fee for the
six months ended June 30, 2000, was an annualized rate of 1.00%, before any
waiver by the Manager.
--------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Fund at an
annal 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.
Oppenheimer International Growth Fund/VA 13
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all
contractual commitments held by the Fund and the resulting unrealized
appreciation or depreciation are determined using foreign currency exchange
rates as provided by a reliable bank, dealer or pricing service. Unrealized
appreciation and depreciation on foreign currency contracts are reported in the
Statement of Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of
the foreign currency transactions. Realized gains and losses are reported with
all other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
As of June 30, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Expiration Contract Valuation as of Unrealized
Contract Description Date Amount (000s) June 30, 2000 Depreciation
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase
---------------------
British Pound Sterling (GBP) 7/5/00 111(GBP) $168,651 $ 440
------
Contracts to Sell
-----------------
Euro (EUR) 7/3/00 382(EUR) 366,482 2,874
Swiss Franc (CHF) 7/3/00-7/4/00 252(CHF) 155,030 689
------
Total Unrealized Depreciation $3,563
======
</TABLE>
14 Oppenheimer International Growth Fund/VA
<PAGE>
Oppenheimer International Growth Fund/VA
A Series of Panorama Series Fund, Inc.
<TABLE>
====================================================================================================================================
<S> <C>
Officers and Directors James C. Swain, Director and Chairman of the Board
Bridget A. Macaskill, President
William L. Armstrong, Director
Robert G. Avis, Director
William A. Baker, Director
Jon S. Fossel, Director
Sam Freedman, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
Peter M. Antos, Vice President
George Evans, Vice President
Alan Gilston, Vice President
Stephen F. Libera, Vice President
David P. Negri, Vice President
Thomas P. Reedy, Vice President
Michael C. Strathearn, Vice President
Kenneth B. White, Vice President
Arthur J. Zimmer, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
====================================================================================================================================
Investment Advisor OppenheimerFunds, Inc.
====================================================================================================================================
Transfer Agent OppenheimerFunds Services
====================================================================================================================================
Custodian of Portfolio Securities The Bank of New York
====================================================================================================================================
Independent Auditors Deloitte & Touche LLP
====================================================================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the Fund
without examination of those records by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer International Growth Fund/VA.
For other material information concerning the Portfolio, see its prospectus. This report
must be preceded or accompanied by the Portfolio's prospectus, the separate account
prospectus, and current standardized average annual total returns for the separate
account being offered.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency, and involve
investment risks, including the possible loss of the principal amount invested.
</TABLE>
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
Oppenheimer International Growth Fund/VA 15
