<PAGE>
OPPENHEIMER MULTIPLE STRATEGIES FUND
Semiannual Report March 31, 1997
[PHOTO]
"We need the
COMFORT
that comes from
diversifying
across different
types of
investments--but
we want it from
ONE fund."
[LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE>
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the
5-Year Period Ended 3/31/97:
Oppenheimer Multiple
Strategies Fund
Class A Shares (at net asset value)(1)
78.40%
Lipper Flexible Portfolio Average for 51 Funds for the 5-Year Period
Ended 3/31/97(3)
69.42%
THIS FUND IS FOR PEOPLE WHO WANT AN INVESTMENT THAT'S STRATEGICALLY ALLOCATED TO
PURSUE GROWTH WITH LESS RISK.
HOW YOUR FUND IS MANAGED
Oppenheimer Multiple Strategies Fund uses a combination of investment styles to
seek high total return while managing risk. The Fund seeks to achieve its goals
by investing in a com-bination of stocks, bonds and money market instruments--
strategically allocated to take advantage of current economic conditions.
The Fund's managers invest in U.S. and inter-national companies that they
believe have excellent potential for appreciation. And the Fund seeks income
from diversified fixed income and money market investments which can act as a
cushion against fluctuations in the value of the stocks in the Fund's portfolio.
PERFORMANCE
Total returns for the six months ended 3/31/97 were 6.14% for Class A shares,
5.64% for Class B shares, and 5.68% for Class C shares, without deducting
sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-
and 5-year periods ended 3/31/97 and since inception on 4/24/87 were 6.92%,
10.95% and 9.44%, respectively.
For Class B shares, average annual total returns for the 1-year period ended
3/31/97 and since inception on 8/29/95 were 7.48% and 10.84%, respectively. For
Class C shares, average annual total returns for the 1-year period ended 3/31/97
and since inception on 12/1/93 were 11.49% and 11.01%, respectively.(2)
OUTLOOK
"Because the holdings in the portfolio are broadly diversified, we believe that
the Fund is properly positioned to benefit from the best opportunities in
tomorrow's markets."
Richard Rubinstein, Portfolio Manager
March 31, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. On March 6, 1997,
the Fund changed its name from "Oppenheimer Asset Allocation Fund."
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Prior to 4/1/91, the Fund's maximum sales charge rate for Class A shares was
higher, so that actual account results would have been less. Class B returns
include the applicable contingent deferred sales charge of 5% (1 year) and 4%
(since inception). Class C returns include the 1% contingent deferred sales
charge for the 1-year result. An explanation of the different performance
calculations is in the Fund's prospectus. Class B and Class C shares are subject
to a 0.75% asset-based sales charge.
3. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Multiple Strategies
Fund is characterized by Lipper as a flexible portfolio fund. Lipper performance
is based on total return and does not take sales charges into account.
2 Oppenheimer Multiple Strategies Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Multiple
Strategies Fund
DEAR SHAREHOLDER,
The U.S. economy has continued to maintain its healthy balance between higher
growth and relatively low inflation. As a result, we've enjoyed low interest
rates, strong corporate earnings and the lowest rate of inflation in 30 years.
But, as today's economic environment becomes increasingly more complex,
many market watchers find themselves uncertain of what will follow. Although the
latest data point to an increase in the growth of the economy, these indicators
are also signaling a slowdown in that growth rate. Once you factor in the
Federal Reserve's decision to increase interest rates, future developments
become even more difficult to predict. The bottom line appears to be that most
investors can look forward to more ups and downs in the U.S. market--making
investing in stocks and bonds a wise option.
Over the past six months, the stock market, though often unsteady, reported
tremendous gains. In fact, the Dow Jones Industrial Average broke straight
through the 7,000 mark, pushed by the demand for large-cap stocks. As the stock
market spiraled upward, valuations followed suit. At the end of March, fears of
too much growth and mounting inflationary pressure led the Federal Reserve to
raise interest rates .25%. This rate increase sent the stock market into the
correction we had predicted would occur this year.
During this same six-month period, the bond market didn't receive the same
fanfare as the stock market, but it did experience a significant amount of
restlessness. In October, the yield on the long bond progressively retreated to
6.42%--representing the lowest interest-rate level since April of 1996--only to
rally by year's end. Then, as we moved through the early months of 1997, long-
term interest rates began to inch upward, once again due to fears about high
stock market valuations and the possible re-emergence of inflation. Following
the March Federal Reserve rate increase, the yield on 30-year Treasuries rose
further, to a high of 7.18% for the period.
These scenarios clearly illustrate the benefits of diversifying investments
across market sectors, and possibly countries as well. Although stocks tend to
produce the highest long-term returns, they also typically present the greatest
risk. Bonds, on the other hand, tend to produce more stable returns and
generally fluctuate less on the downside than stocks. For example, while last
year's interest rates hindered the performance of many fixed income investments,
a broadly allocated portfolio, including large-cap stocks, could have offset
many of those lackluster returns. In turn, the income from bonds can help to
lower your portfolio's overall risk.(1)
When you look at the opportunities available in both the U.S. fixed income
and equity markets, as well as foreign markets, the outlook for diversified
investing remains very appealing. A mutual fund that invests in both stocks and
bonds offers access to professional managers who are continually evaluating the
appropriate combination of domestic and international stocks and bonds relative
to the economy.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, The Right Way to Invest. We look forward to helping you reach
your investment goals in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 21, 1997
1. Past performance is no guarantee of future results.
3 Oppenheimer Multiple Strategies Fund
<PAGE>
Q + A
Q WHAT AREAS ARE YOU CURRENTLY TARGETING?
[PHOTO] [PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW DID THE FUND PERFORM?
Over the past six-month period, Oppenheimer Multiple Strategies Fund performed
very well. According to Lipper Analytical Services, the Fund's Class A shares
ranked 39th out of 195 flexible portfolio funds, finishing in the first quartile
of its peer group for the 1-year period ended 3/31/97.(1) The Fund is managed to
seek high total return while managing risk, regardless of the market
environment. We believe the key to achieving this successfully is strategic
diversification of the portfolio across stocks, bonds and money market
instruments, both in the United States and abroad.
WHAT INVESTMENTS CONTRIBUTED TO THE FUND'S PERFORMANCE?
Broad diversification among many sectors of the bond market contributed to the
performance of our fixed income investments. Although the U.S. bond market
lacked any luster over the past few months, by spreading our fixed income
holdings across foreign, Brady and high-yield issues, we were able to capture
higher yields, which translated into a better total return for the Fund.
While broad diversifi-cation worked with bonds, "focus" was the buzz word
for stocks. That's why the Fund's group of healthcare stocks earned the best
returns for the portfolio. These stocks performed well because the impending
threat of health-care regulation began to fade away. With the current admin-
istration's mixed viewpoints on the topic, investors had little fear about the
impact of aggressive legislation. As a result, much of the healthcare industry
prospered.(2)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS EXPECTED?
While we continue to believe that international diversification is essential to
the performance
[PHOTO]
1. Source: Lipper Analytical Services, 3/31/97. Oppenheimer Multiple Strategies
Fund's Class A shares were ranked 14th out of 51 funds in its category for the
5-year period ended 3/31/97. Oppenheimer Multiple Strategies Fund is
characterized by Lipper as a flexible portfolio fund. Lipper rankings are based
on total return and do not take sales charges into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Multiple Strategies Fund
<PAGE>
FACING PAGE
Top left: Richard Rubinstein,
Portfolio Manager, with Robert Doll,
Executive VP, Director of Equity
Investments
Top right: Paul LaRocco, Member
of Equity Investments Team
Bottom: Robert Doll
THIS PAGE
Top: Richard Rubinstein
Bottom: Bruce Bartlett, Member
of Equity Investments Team
A WE ARE INCREASING OUR INTERNATIONAL HOLDINGS.
of the Fund, many of our foreign holdings lagged the U.S. equity market this
period. However, over the long run, diversifying into international investments
can help mitigate volatility and offer additional investment opportunities.
As we mentioned earlier, the U.S. bond market has experienced a slowdown
over the past several months. Recent fluctuations in interest rates prompted
investors to worry about the re-emergence of inflation. These factors sent bond
prices higher, as yields decreased. However, we believe these are tempo-rary
concerns.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We're beginning to modify the allocation of the Fund's port-folio. While last
year we sold bonds and bought stocks, this year we've started to sell some
stocks. The proceeds are being directed into cash and some bonds and will serve
as a reserve to be used for stock purchases in a market decline.
In our view, the stock market has been very concentrated this past year,
with a small percentage of stocks accounting for a great percen-tage of the
market's momentum. In this case, the fastest-growing, biggest and most
consistent businesses have had the most significant increases in valuations.
But, many now appear overvalued. In response, our approach is to seek alternate
investments to today's large-cap star performers, such as energy stocks, mid-cap
companies and luxury consumer products.
[PHOTO]
[PHOTO]
Finally, although foreign stocks have not fully competed with U.S. equities
over the last few years, we still believe international investments make sense
as part of a long-term strategy. So, we're currently taking advantage of low
stock prices in these markets and increasing our holdings abroad.
WHAT IS YOUR OUTLOOK FOR THE FUND?
No one can predict with certainty how the market will move in the future.
Therefore, we attempt to provide stability for our investors by striving
to earn steady returns in any market environment. And, because the holdings in
the portfolio are broadly diversified, we believe that the Fund is properly
positioned to benefit from the best opportunities in tomorrow's markets.
5 Oppenheimer Multiple Strategies Fund
<PAGE>
FINANCIALS
CONTENTS
STATEMENT OF INVESTMENTS 7
STATEMENT OF ASSETS AND LIABILITIES 17
STATEMENT OF OPERATIONS 18
STATEMENTS OF CHANGES IN NET ASSETS 19
FINANCIAL HIGHLIGHTS 20
NOTES TO FINANCIAL STATEMENTS 22
6 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MORTGAGE-BACKED
OBLIGATIONS--0.4% Federal National Mortgage Assn.:
11.50%, 7/1/11 $ 139,922 $ 154,908
11.75%, 1/1/16 173,827 195,881
---------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., 9%, 11/15/08--5/15/09 482,459 511,379
---------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1994-C2, Cl. E, 8%, 4/25/25 365,623 360,711
------------
Total Mortgage-Backed Obligations (Cost $1,105,596) 1,222,879
- -----------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS--10.9%
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
7.10%, 11/15/18(2) 17,000,000 3,562,381
7.322%, 8/15/19(2) 18,700,000 3,710,733
---------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
8.25%, 7/15/98 16,000,000 16,395,007
8.875%, 11/15/98(3) 950,000 986,220
9.25%, 8/15/98 9,450,000 9,813,239
------------
Total U.S. Government Obligations (Cost $34,312,762) 34,467,580
- -----------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
OBLIGATIONS--13.6%
- -----------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Par Bonds, 5.50%, 3/31/23(4) 14,000,000 8,767,500
Past Due Interest Bonds, Series L, 6.75%, 3/31/05(5) 7,760,000 6,959,750
---------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Par Bonds, 5%, 4/15/24(4) 7,500,000 4,696,875
---------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
9.75%, 12/1/01 CAD 6,000,000 4,994,507
9.75%, 6/1/01 CAD 2,000,000 1,652,432
---------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06 DKK 21,900,000 3,743,659
---------------------------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E168, 11%, 6/1/08 ZAR 6,430,000 1,117,073
---------------------------------------------------------------------------------------------------------
Eskom Sec. Bonds, 11%, 6/1/08 ZAR 3,000,000 521,185
---------------------------------------------------------------------------------------------------------
New Zealand (Government of) Bonds, 8%, 2/15/01 NZD 7,460,000 5,201,954
---------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts., 10.50%, 5/15/03 (AUD) 2,500,000 2,209,622
---------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 AUD 1,500,000 1,195,610
---------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 13%, 7/14/00 GBP 1,050,000 2,003,585
------------
Total Foreign Government Obligations (Cost $40,053,934) 43,063,752
- -----------------------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE
CORPORATE BONDS
AND NOTES--13.9%
- -----------------------------------------------------------------------------------------------------------------------------
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 2,250,000 2,233,125
---------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10.25% Sr. Sub. Nts., 12/1/06(6) 425,000 443,063
---------------------------------------------------------------------------------------------------------
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06(7) 160,000 166,800
---------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, 10.375% Debs., 1/31/02 320,000 334,400
---------------------------------------------------------------------------------------------------------
Bell Cablemedia plc, 0%/11.95% Sr. Disc. Nts., 7/15/04(8) 200,000 174,250
---------------------------------------------------------------------------------------------------------
Building Materials Corp. of America, 8.625% Sr. Nts., 12/15/06 50,000 48,938
---------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 1,000,000 1,038,129
---------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 516,250
---------------------------------------------------------------------------------------------------------
CalEnergy, Inc., 9.50% Sr. Nts., 9/15/06 120,000 124,500
</TABLE>
7 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NON-CONVERTIBLE Calpine Corp.:
CORPORATE BONDS 10.50% Sr. Nts., 5/15/06 $ 225,000 $ 242,156
AND NOTES 9.25% Sr. Nts., 2/1/04 155,000 157,713
(CONTINUED) ---------------------------------------------------------------------------------------------------------
CMI Industries, Inc., 9.50% Sr. Sub. Nts., 10/1/03 40,000 39,000
---------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01(7) 500,000 547,500
---------------------------------------------------------------------------------------------------------
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 12.32%, 5/27/98(2) 1,500,000 1,320,000
---------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(8) 500,000 340,000
---------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts.,
Series B, 8/1/05(7) 1,000,000 1,112,500
---------------------------------------------------------------------------------------------------------
Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 1,024,809
---------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/11.75% Sr. Disc. Nts., 12/15/05(8) 300,000 196,500
---------------------------------------------------------------------------------------------------------
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,000,000 960,000
---------------------------------------------------------------------------------------------------------
First Nationwide Escrow Corp., 10.625% Sr. Sub. Nts., 10/1/03(6) 650,000 690,625
---------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 520,000 554,450
---------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 12.75% Sr. Sub. Disc. Debs., 5/15/05 750,000 821,250
---------------------------------------------------------------------------------------------------------
Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99 400,000 425,500
---------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 1,250,000 1,262,500
---------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 100,000 98,250
---------------------------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 1,600,000 1,596,000
---------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc., 10.75% Gtd. Sr. Sub. Nts., 10/15/03 100,000 100,375
---------------------------------------------------------------------------------------------------------
Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 725,000 752,187
---------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc., 0%/13% Sr. Disc. Nts., Series B, 4/15/03(8) 275,000 153,313
---------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9% Sr. Nts., 10/15/03(6) 85,000 85,850
---------------------------------------------------------------------------------------------------------
J. Ray McDermott SA, 9.375% Sr. Sub. Bonds, 7/15/06 1,000,000 1,030,000
---------------------------------------------------------------------------------------------------------
Jitney-Jungle Stores of America, Inc., 12% Gtd. Sr. Nts., 3/1/06 45,000 47,813
---------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 545,000
---------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 100,000 100,250
---------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 1,000,000 1,040,000
---------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 1,000,000 1,110,000
---------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 1,000,000 1,050,000
---------------------------------------------------------------------------------------------------------
McLeod, Inc., 0%/10.50% Sr. Disc. Nts., 3/1/07(6)(8) 500,000 280,000
---------------------------------------------------------------------------------------------------------
Mesa Operating Co., 10.625% Gtd. Sr. Sub. Nts., 7/1/06 1,000,000 1,042,500
---------------------------------------------------------------------------------------------------------
Mettler Toledo, Inc., 9.75% Gtd. Sr. Sub. Nts., 10/1/06 100,000 103,500
---------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,050,472
</TABLE>
8 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NON-CONVERTIBLE NL Industries, Inc.:
CORPORATE BONDS 0%/13% Sr. Sec. Disc. Nts., 10/15/05(8) $ 50,000 $ 45,250
AND NOTES 11.75% Sr. Sec. Nts., 10/15/03 113,000 119,497
(CONTINUED) ---------------------------------------------------------------------------------------------------------
Omnipoint Corp., 11.625% Sr. Nts., 8/15/06(6) 750,000 663,750
---------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc.:
10% Sr. Sub. Nts., 8/1/02 500,000 526,875
11% Sr. Debs., 12/1/03 650,000 716,625
---------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 0%/11.375% Sr. Sub. Disc. Nts.,
8/1/03(8) 1,250,000 1,178,125
---------------------------------------------------------------------------------------------------------
Pathmark Stores, Inc., 9.625% Sr. Sub. Nts., 5/1/03 30,000 28,800
---------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts., 10/1/03(8) 1,000,000 900,000
---------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 536,564
---------------------------------------------------------------------------------------------------------
Ralph's Grocery Co.:
10.45% Sr. Nts., 6/15/04 500,000 526,250
11% Sr. Sub. Nts., 6/15/05 545,000 564,075
---------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc.:
10.625% Second Priority Sr. Sec. Nts., 4/15/05 45,000 44,212
8.875% First Priority Sr. Sec. Nts., 7/15/00(5) 500,000 490,000
---------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 1,105,000 1,074,612
---------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 9.50% Gtd. Sr. Sub. Nts., 4/15/07(6) 250,000 246,875
---------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 1,000,000 1,042,500
---------------------------------------------------------------------------------------------------------
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05(7) 356,000 399,610
---------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05(7) 500,000 536,250
---------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,095,000
---------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 11.75% Sr. Unsec. Sub. Nts., 8/15/06 125,000 131,875
---------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 9.25% Sr. Sub. Nts., 2/15/07(6) 50,000 50,375
---------------------------------------------------------------------------------------------------------
TCI Satellite Entertainment, Inc., 10.875% Sr. Sub. Nts., 2/15/07(6) 295,000 259,600
---------------------------------------------------------------------------------------------------------
TeleWest plc, 0%/11% Sr. Disc. Debs., 10/1/07(8) 1,000,000 657,500
---------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 8.625% Sr. Sub. Nts., 1/15/07 1,000,000 970,000
---------------------------------------------------------------------------------------------------------
Time Warner, Inc., 7.95% Nts., 2/1/00 1,000,000 1,021,344
---------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,100,000 1,189,572
---------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375%
Sr. Disc. Nts., Series B, 12/15/03(7)(8) 500,000 406,250
---------------------------------------------------------------------------------------------------------
TransTexas Gas Corp., 11.50% Gtd. Sr. Sec. Nts., 6/15/02 965,000 1,066,325
---------------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City Funding, Inc.,
11.25% First Mtg. Nts., 5/1/06 50,000 45,375
---------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03(7) 500,000 505,000
---------------------------------------------------------------------------------------------------------
Unisys Corp., 15% Credit Sensitive Nts., 7/1/97(5)(7) 200,000 211,000
---------------------------------------------------------------------------------------------------------
Universal Outdoor, Inc., 9.75% Sr. Sub. Nts., Series B, 10/15/06(6) 500,000 491,875
---------------------------------------------------------------------------------------------------------
Western Wireless Corp.:
10.50% Sr. Sub. Nts., 2/1/07 250,000 248,750
10.50% Sr. Sub. Nts., 6/1/06 750,000 746,250
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $43,096,267) 43,695,429
</TABLE>
9 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON
STOCKS--49.7%
- -----------------------------------------------------------------------------------------------------------------------------
BASIC
MATERIALS--2.8%
- -----------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.4% Agrium, Inc. 110,000 $ 1,402,500
---------------------------------------------------------------------------------------------------------
Bayer AG, Sponsored ADR 63,000 2,620,604
---------------------------------------------------------------------------------------------------------
Great Lakes Chemical Corp. 6,000 276,000
------------
4,299,104
- -----------------------------------------------------------------------------------------------------------------------------
METALS--0.8% Alumax, Inc.(9)(10) 26,059 902,293
---------------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 81,800 1,482,625
------------
2,384,918
- -----------------------------------------------------------------------------------------------------------------------------
PAPER--0.6% Aracruz Celulose SA, Sponsored ADR 57,000 1,040,250
---------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 64,900 907,709
------------
1,947,959
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER
CYCLICALS--9.9%
- -----------------------------------------------------------------------------------------------------------------------------
AUTOS & AutoZone, Inc.(9) 35,000 787,500
HOUSING--0.8% ---------------------------------------------------------------------------------------------------------
General Motors Corp.(10) 18,000 996,750
---------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 193,056 724,048
------------
2,508,298
- -----------------------------------------------------------------------------------------------------------------------------
LEISURE & Alaska Air Group, Inc.(9)(10) 77,000 1,973,125
ENTERTAINMENT--5.4% ---------------------------------------------------------------------------------------------------------
AMR Corp.(9) 19,400 1,600,500
---------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A(10) 43,800 1,620,600
---------------------------------------------------------------------------------------------------------
Choice Hotels International, Inc.(9) 21,600 291,600
---------------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(9) 24,000 624,000
---------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 45,000 1,175,625
---------------------------------------------------------------------------------------------------------
Eastman Kodak Co.(10) 22,000 1,669,250
---------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A(10) 36,000 774,000
---------------------------------------------------------------------------------------------------------
International Game Technology 74,800 1,206,150
---------------------------------------------------------------------------------------------------------
King World Productions, Inc.(9)(10) 15,000 547,500
---------------------------------------------------------------------------------------------------------
Mattel, Inc. 437 10,488
---------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 31,500 2,259,267
---------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(9)(10) 12,000 240,000
---------------------------------------------------------------------------------------------------------
Shangri-La Asia Ltd. 550,000 638,790
---------------------------------------------------------------------------------------------------------
Shimano, Inc. 65,000 1,049,996
---------------------------------------------------------------------------------------------------------
Time Warner, Inc.(10) 33,000 1,427,250
------------
17,108,141
- -----------------------------------------------------------------------------------------------------------------------------
MEDIA--1.5% Comcast Corp., Cl. A Special 82,800 1,397,250
---------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc.(10) 27,600 1,121,250
---------------------------------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 1,440,000 1,226,477
---------------------------------------------------------------------------------------------------------
U S West Media Group(9)(10) 56,000 1,043,000
------------
4,787,977
</TABLE>
10 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL: Cone Mills Corp.(9) 177,500 $ 1,309,062
GENERAL--0.8% ---------------------------------------------------------------------------------------------------------
Donna Karan International, Inc.(9) 58,500 563,062
---------------------------------------------------------------------------------------------------------
Neiman-Marcus Group, Inc.(9) 25,000 643,750
------------
2,515,874
- -----------------------------------------------------------------------------------------------------------------------------
RETAIL: Costco Cos., Inc.(9)(10) 50,000 1,381,250
SPECIALTY--1.4% ---------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc.(9) 20,000 405,000
---------------------------------------------------------------------------------------------------------
Gymboree Corp.(9) 40,600 1,091,125
---------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(9)(10) 45,700 1,279,600
---------------------------------------------------------------------------------------------------------
Tractor Supply Co.(9) 4,900 94,325
------------
4,251,300
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER
NON-CYCLICALS--8.1%
- -----------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.6% Guinness plc 170,000 1,433,375
---------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 16,000 522,000
------------
1,955,375
- -----------------------------------------------------------------------------------------------------------------------------
FOOD--1.3% Chiquita Brands International, Inc. 45,000 703,125
---------------------------------------------------------------------------------------------------------
Groupe Danone 6,707 1,062,920
---------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 20,000 1,169,634
---------------------------------------------------------------------------------------------------------
Sara Lee Corp. 30,000 1,215,000
------------
4,150,679
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/ Abbott Laboratories 20,000 1,122,500
DRUGS--3.5% ---------------------------------------------------------------------------------------------------------
American Home Products Corp. 18,000 1,080,000
---------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 16,500 798,315
---------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 20,600 1,215,400
---------------------------------------------------------------------------------------------------------
Genzyme Corp.(9) 42,000 945,000
---------------------------------------------------------------------------------------------------------
Johnson & Johnson(10) 36,800 1,945,800
---------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 54,800 801,450
---------------------------------------------------------------------------------------------------------
Novartis AG(9) 1,693 2,098,885
---------------------------------------------------------------------------------------------------------
SmithKline Beecham plc, ADR(10) 16,000 1,120,000
------------
11,127,350
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/ Manor Care, Inc.(10) 21,600 526,500
SUPPLIES ---------------------------------------------------------------------------------------------------------
& SERVICES--1.2% Medtronic, Inc.(10) 10,000 622,500
---------------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc.(9) 60,400 1,064,550
---------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(9)(10) 39,409 1,635,473
------------
3,849,023
- -----------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD Kimberly-Clark Corp.(10) 9,800 973,875
GOODS--0.6% ---------------------------------------------------------------------------------------------------------
Procter & Gamble Co.(10) 2,400 276,000
---------------------------------------------------------------------------------------------------------
Wella AG 1,350 736,338
------------
1,986,213
</TABLE>
11 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOBACCO--0.9%
Philip Morris Cos., Inc.(10) 25,000 $ 2,853,125
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY--4.2%
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES Global Marine, Inc.(9) 36,000 774,000
& PRODUCERS--0.8% ---------------------------------------------------------------------------------------------------------
Kerr-McGee Corp.(10) 9,000 556,875
---------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc.(9)(10) 23,000 675,625
---------------------------------------------------------------------------------------------------------
Western Atlas, Inc.(9) 10,000 606,250
------------
2,612,750
- -----------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED-- Atlantic Richfield Co.(10) 13,500 1,822,500
3.4% ---------------------------------------------------------------------------------------------------------
Elan Energy, Inc.(9) 110,000 842,790
---------------------------------------------------------------------------------------------------------
Enterprise Oil plc 90,000 957,222
---------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co. 16,000 758,000
---------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 34,000 837,250
---------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co.(10) 6,300 1,102,500
---------------------------------------------------------------------------------------------------------
Talisman Energy, Inc.(9) 21,500 638,706
---------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 17,800 754,275
---------------------------------------------------------------------------------------------------------
Unocal Corp. 50,000 1,906,250
---------------------------------------------------------------------------------------------------------
YPF SA, Cl. D, ADR 42,000 1,113,000
------------
10,732,493
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL--8.0%
- -----------------------------------------------------------------------------------------------------------------------------
BANKS--5.1% Akbank T.A.S. 1,995,500 321,993
---------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 80,926 807,740
---------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 81,000 7,583,625
---------------------------------------------------------------------------------------------------------
Citicorp(10) 2,300 248,975
---------------------------------------------------------------------------------------------------------
NationsBank Corp. 104,400 5,781,150
---------------------------------------------------------------------------------------------------------
Societe Generale 10,300 1,204,122
------------
15,947,605
- -----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED American Express Co.(10) 24,500 1,466,937
FINANCIAL--1.5% ---------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co.(10) 36,500 1,272,937
---------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.(10) 34,400 937,400
---------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 11,000 944,625
------------
4,621,899
- -----------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.4% ACE Ltd. 20,000 1,280,000
---------------------------------------------------------------------------------------------------------
American International Group, Inc. 5,500 645,563
---------------------------------------------------------------------------------------------------------
Equitable Cos., Inc. 25,000 681,250
---------------------------------------------------------------------------------------------------------
Skandia Forsakrings AB 27,000 851,178
---------------------------------------------------------------------------------------------------------
UNUM Corp.(10) 12,000 876,000
------------
4,333,991
</TABLE>
12 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL--4.7%
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL General Electric Co. 13,400 $ 1,329,950
EQUIPMENT--0.7% ---------------------------------------------------------------------------------------------------------
Rockwell International Corp.(10) 13,000 843,375
------------
2,173,325
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL Owens Corning(10) 54,000 2,173,500
MATERIALS--1.1% ---------------------------------------------------------------------------------------------------------
Wolverine Tube, Inc.(9) 50,000 1,300,000
------------
3,473,500
- -----------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL Calgon Carbon Corp. 59,200 651,200
SERVICES--0.2%
- -----------------------------------------------------------------------------------------------------------------------------
MANUFACTURING-- AGCO Corp. 38,000 1,049,750
1.4% ---------------------------------------------------------------------------------------------------------
Komatsu Ltd. 32,000 233,907
---------------------------------------------------------------------------------------------------------
Mannesmann AG 2,700 1,031,682
---------------------------------------------------------------------------------------------------------
Tenneco, Inc.(10) 38,000 1,482,000
---------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Co. 51,100 664,300
------------
4,461,639
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-- Burlington Northern Santa Fe Corp.(10) 24,500 1,813,000
1.3% ---------------------------------------------------------------------------------------------------------
Canadian National Railway Co. 22,000 779,978
---------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA 58,200 1,003,950
---------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 25,650 452,883
------------
4,049,811
- -----------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--10.3%
- -----------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ Lockheed Martin Corp. 11,000 924,000
DEFENSE--0.3%
- -----------------------------------------------------------------------------------------------------------------------------
COMPUTER Cabletron Systems, Inc.(9) 20,000 585,000
HARDWARE--2.3% ---------------------------------------------------------------------------------------------------------
Canon, Inc. 27,000 577,901
---------------------------------------------------------------------------------------------------------
Hewlett-Packard Co.(10) 21,500 1,144,875
---------------------------------------------------------------------------------------------------------
International Business Machines Corp.(10) 13,600 1,868,300
---------------------------------------------------------------------------------------------------------
Moore Corp. Ltd. 44,000 880,000
---------------------------------------------------------------------------------------------------------
Xerox Corp. 38,100 2,166,938
------------
7,223,014
- -----------------------------------------------------------------------------------------------------------------------------
COMPUTER America Online, Inc.(9)(10) 26,640 1,128,870
SOFTWARE--2.2% ---------------------------------------------------------------------------------------------------------
Business Objects SA, Sponsored ADR(9) 45,100 439,725
---------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 54,300 2,110,913
---------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(9)(10) 38,500 1,025,063
---------------------------------------------------------------------------------------------------------
Novell, Inc.(9) 107,000 1,016,500
---------------------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc.(9) 15,000 378,750
---------------------------------------------------------------------------------------------------------
Symantec Corp.(9)(10) 63,502 904,904
------------
7,004,725
</TABLE>
13 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS--3.9% General Motors Corp., Cl. H 18,000 $ 976,500
---------------------------------------------------------------------------------------------------------
Input/Output, Inc.(9) 75,000 1,087,500
---------------------------------------------------------------------------------------------------------
Intel Corp.(10) 43,200 6,010,200
---------------------------------------------------------------------------------------------------------
Keyence Corp. 5,500 626,363
---------------------------------------------------------------------------------------------------------
Kyocera Corp. 12,000 680,397
---------------------------------------------------------------------------------------------------------
LSI Logic Corp.(9)(10) 36,500 1,268,375
---------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(10) 16,500 961,125
---------------------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(9) 12,000 793,500
------------
12,403,960
- -----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- Airtouch Communications, Inc.(9) 52,100 1,198,300
TECHNOLOGY--1.6% ---------------------------------------------------------------------------------------------------------
AT&T Corp. 11,000 382,250
---------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(9)(10) 24,870 1,196,869
---------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd.(10) 52,000 962,000
---------------------------------------------------------------------------------------------------------
MCI Communications Corp.(10) 17,800 634,125
---------------------------------------------------------------------------------------------------------
Newbridge Networks Corp.(9) 23,000 658,375
------------
5,031,919
- -----------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.7%
- -----------------------------------------------------------------------------------------------------------------------------
ELECTRIC PacifiCorp 28,500 609,188
UTILITIES--0.5% ---------------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 42,000 1,102,500
------------
1,711,688
- -----------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.1% Southwestern Energy Co. 24,000 321,000
- -----------------------------------------------------------------------------------------------------------------------------
TELEPHONE BCE, Inc.(10) 26,100 1,200,600
UTILITIES--1.1% ---------------------------------------------------------------------------------------------------------
SBC Communications, Inc. 11,000 578,875
---------------------------------------------------------------------------------------------------------
U S West Communications Group 50,000 1,700,000
------------
3,479,475
------------
Total Common Stocks (Cost $113,209,227) 156,883,330
- -----------------------------------------------------------------------------------------------------------------------------
PREFERRED
STOCKS--0.3%
- -----------------------------------------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A (Cost $919,750) 17,666 945,131
<CAPTION>
<S> <C> <C> <C>
UNITS
- -----------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS
AND CERTIFICATES
- --0.0%
- -----------------------------------------------------------------------------------------------------------------------------
Hong Kong & China Gas Co. Ltd. Wts., Exp. 9/97 57,874 26,140
---------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01(7) 275 8,250
------------
Total Rights, Warrants and Certificates (Cost $15,337) 34,390
</TABLE>
14 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement
- --11.7%
- -----------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.35%, dated
3/31/97, to be repurchased at $36,906,509 on 4/1/97, collateralized by
U.S. Treasury Nts., 6.375%--9.125%, 5/15/99--8/15/05, with a value of
$37,736,728 (Cost $36,900,000) $ 36,900,000 $ 36,900,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $269,612,873) 100.5% 317,212,491
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN
EXCESS OF OTHER
ASSETS (0.5) (1,537,602)
------------ ------------
NET ASSETS 100.0% $315,674,889
------------ ------------
------------ ------------
1. Face amount is reported in U.S. Dollars, except for those denoted in the following currencies:
AUD -- Australian Dollar GBP -- British Pound Sterling
CAD -- Canadian Dollar NZD -- New Zealand Dollar
DKK -- Danish Krone ZAR -- South African Rand
2. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase.
3. Securities with an aggregate market value of $986,220 are held in collateralized accounts to cover
initial margin requirements on open futures sales contracts. See Note 5 of Notes to Financial Statements.
4. Represents the current interest rate for an increasing rate security.
5. Represents the current interest rate for a variable rate security.
6. Represents securities sold under Rule 144A, which are exempt from registration under the Securities
Act of 1933, as amended. These securities have been determined to be liquid under guidelines established
by the Board of Trustees. These securities amount to $3,212,013 or 1.02% of the Fund's net assets, at
March 31, 1997.
7. Identifies issues considered to be illiquid or restricted--See Note 7 of Notes to Financial Statements.
8. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a
designated future date.
9. Non-income producing security.
</TABLE>
15 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
<S><C>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
-------------------------------------------------------------------------------------------------------------
10. A sufficient amount of securities has been designated to cover outstanding call options, as follows:
<CAPTION>
MARKET
SHARES EXPIRATION EXERCISE PREMIUM VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alaska Air Group, Inc. 8,600 7/97 $ 25 $ 11,782 $ 23,113
- ----------------------------------------------------------------------------------------------------------------------------------
Alumax, Inc. 5,200 7/97 40 12,519 8,775
- ----------------------------------------------------------------------------------------------------------------------------------
America Online, Inc. 5,200 4/97 48 8,944 2,925
- ----------------------------------------------------------------------------------------------------------------------------------
American Express Co. 5,800 7/97 60 8,888 23,925
- ----------------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 2,600 7/97 145 5,609 3,900
- ----------------------------------------------------------------------------------------------------------------------------------
BCE, Inc. 5,200 6/97 50 5,369 2,275
- ----------------------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 4,800 4/97 90 16,055 900
- ----------------------------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 2,400 7/97 35 3,528 8,400
- ----------------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 2,600 7/97 85 10,322 163
- ----------------------------------------------------------------------------------------------------------------------------------
Citicorp 2,000 4/97 115 5,440 2,375
- ----------------------------------------------------------------------------------------------------------------------------------
Costco Co., Inc. 10,800 4/97 25 13,176 39,150
- ----------------------------------------------------------------------------------------------------------------------------------
Costco Co., Inc. 10,800 7/97 30 10,841 14,175
- ----------------------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 5,600 4/97 35 6,072 6,300
- ----------------------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 5,600 7/97 35 9,016 12,950
- ----------------------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co. 5,600 7/97 45 12,782 700
- ----------------------------------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc. 5,400 9/97 50 13,000 7,088
- ----------------------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. 5,500 8/97 25 10,147 4,813
- ----------------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 13,200 7/97 90 38,653 9,900
- ----------------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 6,200 6/97 35 30,813 2,713
- ----------------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 18,400 6/97 40 46,946 1,150
- ----------------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 5,500 6/97 45 15,411 344
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 6,800 4/97 29 7,386 4,675
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 6,400 7/97 30 9,352 8,000
- ----------------------------------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A 7,200 9/97 30 13,317 450
- ----------------------------------------------------------------------------------------------------------------------------------
General Motors Corp. 4,000 6/97 65 6,380 1,000
- ----------------------------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 2,400 6/97 65 11,328 150
- ----------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 6,200 5/97 60 14,539 6,200
- ----------------------------------------------------------------------------------------------------------------------------------
Intel Corp. 10,400 4/97 135 52,986 76,700
- ----------------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 2,600 4/97 175 14,872 163
- ----------------------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 7,200 7/97 60 20,483 10,800
- ----------------------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 1,800 7/97 75 3,546 225
- ----------------------------------------------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 1,800 7/97 50 8,721 10,800
- ----------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. 5,400 5/97 40 7,938 338
- ----------------------------------------------------------------------------------------------------------------------------------
LSI Logic Corp. 7,200 7/97 35 19,583 25,200
- ----------------------------------------------------------------------------------------------------------------------------------
MCI Communications Corp. 17,800 7/97 33 37,290 80,100
- ----------------------------------------------------------------------------------------------------------------------------------
Manor Care, Inc. 4,200 4/97 40 5,649 1,050
- ----------------------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 3,800 5/97 70 15,085 3,563
- ----------------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 4,000 4/97 60 13,880 4,250
- ----------------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR 4,000 7/97 70 23,879 5,000
- ----------------------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. 12,000 5/97 30 23,639 750
- ----------------------------------------------------------------------------------------------------------------------------------
Owens Corning 10,800 9/97 55 17,900 2,700
- ----------------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 4,000 6/97 110 17,879 39,000
- ----------------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 2,400 7/97 115 7,728 19,200
- ----------------------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 3,000 7/97 75 6,660 2,438
- ----------------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 1,200 7/97 175 7,614 10,050
- ----------------------------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc, ADR 3,200 5/97 75 5,504 6,400
- ----------------------------------------------------------------------------------------------------------------------------------
Symantec Corp. 14,400 4/97 18 15,767 3,600
- ----------------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 8,000 8/97 50 12,760 2,000
- ----------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 6,600 9/97 50 6,402 4,950
- ----------------------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. 6,400 6/97 40 9,808 400
- ----------------------------------------------------------------------------------------------------------------------------------
U S West Communications Group 10,000 7/97 35 12,200 10,625
- ----------------------------------------------------------------------------------------------------------------------------------
UNUM Corp. 2,400 6/97 80 7,428 3,600
- ----------------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. 1,000 9/97 40 2,657 250
- ----------------------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. 7,800 7/97 35 27,060 65,320
---------- ----------
$ 762,533 $ 585,981
---------- ----------
---------- ----------
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (including repurchase agreement of $36,900,000)
(cost $269,612,873)--see accompanying statement $317,212,491
--------------------------------------------------------------------------------------------------------------
Cash 369,285
--------------------------------------------------------------------------------------------------------------
Receivables:
Interest, dividends and principal paydowns 2,673,615
Investments sold 811,379
Shares of beneficial interest sold 592,694
--------------------------------------------------------------------------------------------------------------
Other 14,811
------------
Total assets 321,674,275
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Options written, at value (premiums received $762,533)--
see accompanying statement--Note 6 585,981
--------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 4,104,446
Shares of beneficial interest redeemed 623,653
Trustees' fees--Note 1 155,121
Distribution and service plan fees 148,305
Shareholder reports 91,311
Daily variation on futures contracts--Note 5 33,068
Transfer and shareholder servicing agent fees 27,328
Custodian fees 25,459
Other 204,714
------------
Total liabilities 5,999,386
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $315,674,889
------------
------------
- ----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $254,197,900
NET ASSETS --------------------------------------------------------------------------------------------------------------
Undistributed net investment income 907,746
--------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 12,823,980
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 47,745,263
------------
Net assets $315,674,889
------------
------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $273,785,508 and 19,686,583 shares of beneficial interest outstanding) $13.91
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $14.76
--------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $11,216,777 and 812,445 shares of beneficial interest outstanding) $13.81
--------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $30,672,604 and 2,217,474 shares of beneficial interest outstanding) $13.83
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest (net of foreign withholding taxes of $4,138) $ 6,551,201
--------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $22,102) 1,148,856
--------------------------------------------------------------------------------------------------------------
Total income 7,700,057
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 1,145,109
--------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 247,637
Class B 41,985
Class C 131,101
--------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 176,560
--------------------------------------------------------------------------------------------------------------
Shareholder reports 138,797
--------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 30,993
--------------------------------------------------------------------------------------------------------------
Legal and auditing fees 17,712
--------------------------------------------------------------------------------------------------------------
Insurance expenses 5,212
--------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 1,653
Class C 3,074
--------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 3,432
--------------------------------------------------------------------------------------------------------------
Other 3,534
------------
Total expenses 1,946,799
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT
INCOME 5,753,258
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND Net realized gain (loss) on:
UNREALIZED Investments 13,565,840
GAIN (LOSS) Closing and expiration of options written 190,618
Foreign currency transactions (188,180)
------------
Net realized gain 13,568,278
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (509,472)
Translation of assets and liabilities denominated in foreign currencies (1,192,470)
------------
Net change (1,701,942)
------------
Net realized and unrealized gain 11,866,336
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS $ 17,619,594
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED NINE MONTHS
MARCH 31, 1997 ENDED SEPT. 30,
(UNAUDITED) 1996(1)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 5,753,258 $ 9,695,717
--------------------------------------------------------------------------------------------------------------
Net realized gain 13,568,278 15,544,485
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (1,701,942) 4,393,283
--------------- ---------------
Net increase in net assets resulting from operations 17,619,594 29,633,485
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A (4,929,024) (8,029,426)
SHAREHOLDERS Class B (136,475) (114,496)
Class C (395,070) (478,886)
--------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (14,621,587) --
Class B (435,849) --
Class C (1,359,035) --
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL Net increase (decrease) in net assets resulting from
INTEREST beneficial interest transactions--Note 2:
TRANSACTIONS Class A 12,891,039 (6,428,157)
Class B 5,454,189 4,480,009
Class C 10,145,360 4,355,405
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 24,233,142 23,417,934
--------------------------------------------------------------------------------------------------------------
Beginning of period 291,441,747 268,023,813
--------------- ---------------
End of period (including undistributed net investment
income of $907,746 and $615,057, respectively) $ 315,674,889 $ 291,441,747
--------------- ---------------
--------------- ---------------
1. The Fund changed its fiscal year end from December 31 to September 30. See accompanying Notes to Financial
Statements.
</TABLE>
19 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
CLASS A
--------------------------------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED ENDED
MARCH 31, 1997 SEPTEMBER 30, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.09 $13.07 $11.52 $13.05 $11.63 $11.22
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .27 .49 .52 .54 .44 .39
Net realized and unrealized gain (loss) .59 .96 2.08 (.75) 1.43 .44
-------- -------- -------- -------- -------- --------
Total income (loss) from investment operations .86 1.45 2.60 (.21) 1.87 .83
Dividends and distributions to shareholders:
Dividends from net investment income (.25) (.43) (.49) (.53) (.44) (.42)
Distributions from net realized gain (.79) -- (.56) (.79) (.01) --
-------- -------- -------- -------- -------- --------
Total dividends and distributions
to shareholders (1.04) (.43) (1.05) (1.32) (.45) (.42)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.91 $14.09 $13.07 $11.52 $13.05 $11.63
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 6.14% 11.22% 22.79% (1.59)% 16.30% 7.54%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $273,786 $264,359 $251,353 $237,771 $277,914 $266,713
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $276,351 $256,765 $249,660 $260,767 $272,303 $269,096
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.92%(5) 4.73%(5) 3.97% 4.10% 3.58% 3.41%
Expenses 1.16%(5) 1.21%(5) 1.15% 1.09% 1.14% 1.17%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 18.4% 31.7% 28.5% 31.5% 32.7% 60.3%
Average brokerage commission rate(7) $0.0476 $0.0336 $0.0350 -- -- --
1. For the period from December 1, 1993 (inception of offering) to December 31, 1993.
2. The Fund changed its fiscal year end from December 31 to September 30.
3. For the period from August 29, 1995 (inception of offering) to December 31, 1995.
4. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period (or inception of
offering), 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. Sales charges are not reflected in the total
returns. Total returns are not annualized for periods of less than one full year.
</TABLE>
20 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------
SIX MONTHS NINE MONTHS
ENDED ENDED PERIOD ENDED
MARCH 31, 1997 SEPTEMBER 30, DECEMBER 31,
(UNAUDITED) 1996(2) 1995(3)
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.01 $13.03 $13.28
- --------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .21 .41 .17
Net realized and unrealized gain (loss) .57 .93 .41
-------- -------- --------
Total income (loss) from investment operations .78 1.34 .58
- --------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.20) (.36) (.27)
Distributions from net realized gain (.79) -- (.56)
-------- -------- --------
Total dividends and distributions
to shareholders (.99) (.36) (.83)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $13.81 $14.01 $13.03
-------- -------- --------
-------- -------- --------
- --------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 5.64% 10.37% 4.44%
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $11,217 $5,996 $1,265
- --------------------------------------------------------------------------------------------
Average net assets (in thousands) $8,457 $3,546 $ 520
- --------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.11%(5) 3.69%(5) 2.62%(5)
Expenses 1.99%(5) 2.12%(5) 2.27%(5)
- --------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 18.4% 31.7% 28.5%
Average brokerage commission rate(7) $0.0476 $0.0336 $0.0350
<CAPTION>
CLASS C
-------------------------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED ENDED
MARCH 31, 1997 SEPTEMBER 30, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993(1)
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.02 $13.01 $11.49 $13.05 $12.86
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .22 .40 .40 .44 (.97)
Net realized and unrealized gain (loss) .58 .96 2.07 (.77) 1.29
-------- -------- -------- -------- --------
Total income (loss) from investment operations .80 1.36 2.47 (.33) .32
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.20) (.35) (.39) (.44) (.12)
Distributions from net realized gain (.79) -- (.56) (.79) (.01)
-------- -------- -------- -------- --------
Total dividends and distributions
to shareholders (.99) (.35) (.95) (1.23) (.13)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.83 $14.02 $13.01 $11.49 $13.05
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 5.68% 10.55% 21.69% (2.50)% 2.51%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $30,673 $21,087 $15,405 $9,182 $396
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,389 $17,898 $11,827 $5,601 $194
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.11%(5) 3.84%(5) 3.08% 3.30% 2.19%(5)
Expenses 1.98%(5) 2.07%(5) 1.99% 2.00% 2.50%(5)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 18.4% 31.7% 28.5% 31.5% 32.7%
Average brokerage commission rate(7) $0.0476 $0.0336 $0.0350 -- --
5. Annualized.
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 March 31, 1997 were $55,370,211 and $52,184,011, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of portfolio securities for the period, divided by
the total of related shares purchased and sold.
See accompanying Notes to Financial Statements
</TABLE>
21 Oppenheimer Multiple Strategies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Multiple Strategies Fund (the Fund),
ACCOUNTING POLICIES formerly named Oppenheimer Asset Allocation Fund,
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 high total
investment return (current income and capital
appreciation in the value of its shares) through
investment in stocks, bonds and cash equivalents.
The Fund's investment adviser is OppenheimerFunds,
Inc. (the Manager). The Fund offers Class A, Class
B and Class C shares. Class A shares are sold with
a front-end sales charge. Class B and Class C
shares may be subject to a contingent deferred
sales charge. All classes of shares have identical
rights to earnings, assets and voting privileges,
except that each class has its own distribution
and/or service plan, expenses directly
attributable to a particular class and exclusive
voting rights with respect to matters affecting a
single class. Class B shares will automatically
convert to Class A shares six years after the date
of purchase. The following is a summary of
significant accounting policies consistently
followed by the Fund.
--------------------------------------------------
INVESTMENT 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
Trustees. Such securities which cannot be valued
by the 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 Trustees 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. Forward
foreign currency exchange contracts are valued
based on the closing prices of the forward
currency contracts 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.
--------------------------------------------------
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 securities and
investment income are translated at the rate 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.
--------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND
LOSSES. Income, expenses (other than those
attributable to a specific class) and gains and
losses are allocated daily to each class of shares
based upon the relative proportion of net assets
represented by such class. Operating expenses
directly attributable to a specific class are
charged against the operations of that class.
--------------------------------------------------
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.
Therefore, no federal income or excise tax
provision is required.
22 Oppenheimer Multiple Strategies Fund
<PAGE>
- -------------------------------------------------------------------------------
1. SIGNIFICANT TRUSTEES' FEES AND EXPENSES. The Fund has adopted
ACCOUNTING POLICIES a nonfunded retirement plan for the Fund's
(CONTINUED) independent trustees. Benefits are based on years
of service and fees paid to each trustee during
the years of service. During the six months ended
March 31, 1997, a reduction of $13,665 was made
for the Fund's projected benefit obligations, and
payments of $7,544 were made to retired trustees,
resulting in an accumulated liability of $145,077
at March 31, 1997.
--------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
distributions to shareholders 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 primarily because of the recognition of
certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes. The
character of the distributions made during the
year from net investment income or net realized
gains may differ from their 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 year that the income or realized
gain was recorded by the Fund.
--------------------------------------------------
OTHER. Investment transactions are accounted for
on the date the investments are purchased or sold
(trade date) and dividend income is recorded on
the ex-dividend date. Discount on securities
purchased is amortized over the life of the
respective securities, in accordance with federal
income tax requirements. Realized gains and losses
on investments and options written and unrealized
appreciation and depreciation are determined on an
identified cost basis, which is the same basis
used for federal income tax purposes. Dividends in
kind are recognized as income on the ex-dividend
date, at the current market value of the
underlying security. Interest on payment-in-kind
debt instruments is accrued as income at the
coupon rate and a market adjustment is made
periodically.
The preparation of financial statements
in conformity with generally accepted accounting
principles requires management to make estimates
and assumptions that affect the reported amounts
of assets and liabilities and disclosure of
contingent assets and liabilities at the date of
the financial statements and the reported amounts
of income and expenses during the reporting
period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no
BENEFICIAL INTEREST par value shares of beneficial interest for each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 31, 1997 PERIOD ENDED SEPTEMBER 30, 1996(1)
---------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 880,645 $ 12,661,997 860,353 $ 11,689,114
Dividends and distributions reinvested 1,259,162 17,611,635 524,674 7,190,397
Redeemed (1,209,658) (17,382,593) (1,862,109) (25,307,668)
---------- ------------ ---------- ------------
Net increase (decrease) 930,149 $ 12,891,039 (477,082) $ (6,428,157)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
- ---------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 393,736 $ 5,601,328 366,656 $ 4,968,484
Dividends and distributions reinvested 35,702 496,167 6,864 93,829
Redeemed (45,123) (643,306) (42,546) (582,304)
---------- ------------ ---------- ------------
Net increase 384,315 $ 5,454,189 330,974 $ 4,480,009
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
- ---------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 705,042 $ 10,057,540 448,796 $ 6,095,106
Dividends and distributions reinvested 119,477 1,662,967 33,327 455,037
Redeemed (110,858) (1,575,147) (162,380) (2,194,738)
---------- ------------ -------- ------------
Net increase 713,661 $ 10,145,360 319,743 $ 4,355,405
---------- ------------ -------- ------------
---------- ------------ -------- ------------
1. The Fund changed its fiscal year end from December 31 to September 30.
</TABLE>
23 Oppenheimer Multiple Strategies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At March 31, 1997, net unrealized appreciation on
LOSSES ON INVESTMENTS investments and options written of $47,768,847 was
AND OPTIONS WRITTEN composed of gross appreciation of $54,041,803, and
gross depreciation of $6,272,956.
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager are in
AND OTHER TRANSACTIONS accordance with the investment advisory agreement
WITH AFFILIATES with the Fund which provides for a fee of 0.75% on
the first $200 million of average annual net
assets, 0.72% on the next $200 million, 0.69% of
the next $200 million, 0.66% of the next $200
million and 0.60% of aggregate net assets in
excess of $800 million.
For the six months ended March 31, 1997,
commissions (sales charges paid by investors) on
sales of Class A shares totaled $223,828, of which
$72,590 was retained by OppenheimerFunds
Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an
affiliated broker/dealer. Sales charges advanced
to broker/dealers by OFDI on sales of the Fund's
Class B and Class C shares totaled $191,234 and
$96,674, of which $13,278 was paid to an
affiliated broker/dealer. During the six months
ended March 31, 1997, OFDI received contingent
deferred sales charges of $10,848 and $1,754,
respectively, upon redemption of Class B and Class
C shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such
shares.
OppenheimerFunds Services (OFS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for
other registered investment companies. OFS's total
costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for
Class A shares to reimburse OFDI for a portion of
its costs incurred in connection with the personal
service and maintenance of accounts that hold
Class A shares. Reimbursement is made quarterly at
an annual rate that may not exceed 0.25% of the
average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial
institutions quarterly for providing personal
service and maintenance of accounts of their
customers that hold Class A shares. During the six
months ended March 31, 1997, OFDI paid $25,359 to
an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses.
The Fund has adopted a compensation type
Distribution and Service Plan for Class B shares
to compensate OFDI for its services and costs in
distributing Class B shares and servicing
accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year
on Class B shares. OFDI also receives a service
fee of 0.25% per year to compensate dealers for
providing personal services for accounts that hold
Class B shares. Both fees are computed on the
average annual net assets of Class B shares,
determined as of the close of each regular
business day. During the six months ended March
31, 1997, OFDI retained $39,808 as compensation
for Class B sales commissions and service fee
advances, as well as financing costs. If the Plan
is terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain
expenses it incurred before the Plan was
terminated. As of March 31, 1997, OFDI had
incurred unreimbursed expenses of $408,660 for
Class B.
The Fund has adopted a reimbursement
type Distribution and Service Plan for Class C
shares to reimburse OFDI for its services and
costs in distributing Class C shares and servicing
accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year
on Class C shares. OFDI also receives a service
fee of 0.25% per year to reimburse dealers for
providing personal services for accounts that hold
Class C shares. Both fees are computed on the
average annual net assets of Class C shares,
determined as of the close of each regular
business day. During the six months ended March
31, 1997, OFDI paid $5,207 to an affiliated
broker/dealer as reimbursement for Class C
personal service and maintenance expenses and
retained $53,731 as reimbursement for Class C
sales commissions and service fee advances, as
well as financing costs. If the Plan is terminated
by the Fund, the Board of Trustees may allow the
Fund to continue payments of the asset-based sales
charge to OFDI for certain expenses it incurred
before the Plan was terminated. As of March 31,
1997, OFDI had incurred unreimbursed expenses of
$317,226 for Class C.
24 Oppenheimer Multiple Strategies Fund
<PAGE>
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS The Fund may buy and sell interest rate futures
contracts in order to gain exposure to or protect
against changes in interest rates. The Fund may
also buy or write put or call options on these
futures contracts.
The Fund generally sells futures
contracts to hedge against increases in interest
rates and the resulting negative effect on the
value of fixed rate portfolio securities. The Fund
may also purchase futures contracts to gain
exposure to changes in interest rates as it may be
more efficient or cost effective than actually
buying fixed income securities.
Upon entering into a futures contract,
the Fund is required to deposit either cash or
securities in an amount (initial margin) equal to
a certain percentage of the contract value.
Subsequent payments (variation margin) are made or
received by the Fund each day. The variation
margin payments are equal to the daily changes in
the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized
gain or loss when the contract is closed or
expires.
Securities held in collateralized
accounts to cover initial margin requirements on
open futures contracts are noted in the Statement
of Investments. The Statement of Assets and
Liabilities reflects a receivable or payable for
the daily mark to market for variation margin.
Risks of entering into futures contracts
(and related options) include the possibility that
there may be an illiquid market and that a change
in the value of the contract or option may not
correlate with changes in the value of the
underlying securities.
At March 31, 1997, the Fund had outstanding
futures contracts as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
DATE FUTURES CONTRACTS MARCH 31, 1997 DEPRECIATION
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Russell 2000 Futures 6/97 6,000 $2,069,400 $30,225
</TABLE>
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY The Fund may buy and sell put and call options, or
write put and covered call options on portfolio
securities in order to produce incremental
earnings or protect against changes in the value
of portfolio securities.
The Fund generally purchases put options
or writes covered call options to hedge against
adverse movements in the value of portfolio
holdings. When an option is written, the Fund
receives a premium and becomes obligated to sell
or purchase the underlying security at a fixed
price, upon exercise of the option.
Options are valued daily based upon the
last sale price on the principal exchange on which
the option is traded and unrealized appreciation
or depreciation is recorded. The Fund will realize
a gain or loss upon the expiration or closing of
the option transaction. When an option is
exercised, the proceeds on sales for a written
call option, the purchase cost for a written put
option, or the cost of the security for a
purchased put or call option is adjusted by the
amount of premium received or paid.
Securities designated to cover
outstanding call options are noted in the
Statement of Investments where applicable. Shares
subject to call, expiration date, exercise price,
premium received and market value are detailed in
a footnote to the Statement of Investments.
Options written are reported as a liability in the
Statement of Assets and Liabilities. Gains and
losses are reported in the Statement of
Operations.
The risk in writing a call option is
that the Fund gives up the opportunity for profit
if the market price of the security increases and
the option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the
market price of the security decreases and the
option is exercised. The risk in buying an option
is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the
additional risk of not being able to enter into a
closing transaction if a liquid secondary market
does not exist.
Written option activity for the six months ended
March 31, 1997 was as follows:
CALL OPTIONS
-----------------------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
- --------------------------------------------------------------------------------
Options outstanding at September 30, 1996 1,728 $ 552,194
- --------------------------------------------------------------------------------
Options written 3,844 895,807
- --------------------------------------------------------------------------------
Options closed or expired (1,092) (311,775)
- --------------------------------------------------------------------------------
Options exercised (1,146) (373,693)
------ ---------
Options outstanding at March 31, 1997 3,334 $ 762,533
------ ---------
------ ---------
25 Oppenheimer Multiple Strategies Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
7. ILLIQUID AND At March 31, 1997, investments in securities
RESTRICTED SECURITIES included issues that are illiquid or restricted.
Restricted securities are often purchased in
private placement transactions, are not registered
under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued
under methods approved by the Board of Trustees as
reflecting fair value. A security may be
considered illiquid if it lacks a
readily-available market or if its valuation has
not changed for a certain period of time. The Fund
intends to invest no more than 10% of its net
assets (determined at the time of purchase and
reviewed from time to time) in illiquid or
restricted securities. Certain restricted
securities, eligible for resale to qualified
institutional investors, are not subject to that
limit. The aggregate value of illiquid or
restricted securities subject to this limitation
at March 31, 1997 was $3,893,160, which represents
1.42% of the Fund's net assets.
- --------------------------------------------------------------------------------
8. SHAREHOLDER MEETING On March 6, 1997, a special shareholder meeting
was held at which the eleven Trustees identified
below were elected, the selection of KPMG Peat
Marwick LLP as the independent certified public
accountants and auditors of the Fund for the
fiscal year beginning October 1, 1996 was ratified
(Proposal No. 1), the proposed changes to certain
of the Fund's fundamental investment policies was
approved (Proposal No. 2), the proposed change in
the Investment Advisory Agreement between the Fund
and OppenheimerFunds, Inc. was approved (Proposal
No. 3), the Fund's Class B 12b-1 Distribution and
Service Plan was approved by Class B shareholders
(Proposal No. 4), and the Fund's Class C 12b-1
Distribution and Service Plan was approved by
Class C shareholders (Proposal No. 5) as described
in the Fund's proxy statement for that meeting.
The following is a report of the votes cast:
<TABLE>
<CAPTION>
BROKER
NOMINEE/PROPOSAL FOR AGAINST WITHHELD/ABSTAIN NON-VOTES TOTAL
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUSTEES
Robert G. Galli 11,253,871.448 246,747.379 558,388 11,500,618.827
Leon Levy 11,203,229.913 297,388.914 558,388 11,500,618.827
Benjamin Lipstein 11,197,133.782 303,485.045 558,388 11,500,618.827
Bridget A. Macaskill 11,256,812.337 243,806.490 558,388 11,500,618.827
Elizabeth Moynihan 11,241,337.324 259,281.503 558,388 11,500,618.827
Kenneth A. Randall 11,273,072.084 227,546.743 558,388 11,500,618.827
Edward V. Regan 11,273,698.840 226,919.987 558,388 11,500,618.827
Russell S. Reynolds, Jr. 11,255,535.799 245,083.028 558,388 11,500,618.827
Donald W. Spiro 11,224,018.248 276,600.579 558,388 11,500,618.827
Pauline Trigere 11,177,490.513 323,128.314 558,388 11,500,618.827
Clayton K. Yeutter 11,240,495.627 260,123.200 558,388 11,500,618.827
- ----------------------------------------------------------------------------------------------------------------------------------
Proposal No. 1 10,852,678.097 111,936.414 545,000.862 558,388 11,509,615.373
Proposal No. 2 9,183,461.857 412,290.120 863,922.725 1,779,281 10,459,674.702
Proposal No. 3 10,308,932.225 295,359.382 904,804.998 558,388 11,509,096.605
Proposal No. 4 324,274.123 6,197.510 12,654.165 15,827 343,125.798
Proposal No. 5 883,841.782 30,674.191 62,486.495 61,410 927,002.468
</TABLE>
26 Oppenheimer Multiple Strategies Fund
<PAGE>
OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISER OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
by the independent auditors. This is a copy of a report
to shareholders of Oppenheimer Multiple Strategies
Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Multiple Strategies Fund. For
material information concerning the Fund, see the
Prospectus. Shares of Oppenheimer funds are not
deposits or obligations of any bank, are not guaranteed
by any bank, are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
27 Oppenheimer Multiple Strategies Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0240.001.0397 May 31, 1997
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or
ready account access, you can benefit from services designed to make
investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
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[LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 130
Torrington, CT
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