<PAGE> 1
ANNUAL REPORT SEPTEMBER 30, 1997
OPPENHEIMER
MULTIPLE
STRATEGIES FUND
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview with the Fund's Managers
11 Statement of Investments
28 Statement of Assets & Liabilities
30 Statement of Operations
31 Statements of Changes in Net Assets
32 Financial Highlights
34 Notes to Financial Statements
43 Independent Auditors' Report
44 Federal Income Tax Information
45 Officers & Trustees
48 Information & Services
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - THE JUNE 1997 MERGER of Oppenheimer Fund and Oppenheimer Strategic Income &
Growth Fund into Oppenheimer Multiple Strategies Fund has allowed us to build
an even more expanded portfolio. In doing so, we are working towards an asset
mix of 55% equities and 45% fixed-income investments and cash.
- - OUR STOCK PORTFOLIO is broken into five segments: growth, value, contrarian,
international and high-dividend yield.
- - HISTORICALLY EACH BOND MARKET WILL REACT DIFFERENTLY to the same influences.
Within fixed-income the Fund's assets are invested among three markets--U.S.
Treasury securities, high-yield corporate bonds and foreign bonds.
- - "A PORTFOLIO FOR ALL SEASONS" With such broad diversification, we are able to
participate in many markets, while providing protection against unexpected
market declines.
AVG ANNUAL TOTAL RETURNS
For the 1-year period ended
9/30/97 without sales charges(1)
CLASS A
25.46%
CLASS B
24.34%
CLASS C
24.42%
Total returns include changes 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.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2 Oppenheimer Multiple Strategies Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer Multiple
Strategies Fund
Dear SHAREHOLDER,
- -------------------------------------------------------------------------------
As you are no doubt aware, during the end of October and early November many
stock markets around the world recorded their all-time largest point declines,
followed by subsequent gains and continued volatility, leaving investors
uncertain about what would occur next.
To put those events in focus, let's look at a "snapshot" of the
two-week time period. Sharp declines in the overseas stock markets,
particularly in Asia, triggered a series of sell-offs throughout Europe, Latin
America and the United States. In response, the U.S. stock market, as measured
by the Dow Jones Industrial Average, dropped 554 points on October 27, its
largest point decline in history. However, almost as quickly, the U.S. stock
market bounced back over the succeeding few days, regaining nearly all of its
losses.
While no one could have predicted the timing or extent of these
fluctuations, many analysts, including our fund managers here at
OppenheimerFunds, had warned of a correction for several months. We believed
that U.S. valuations were too high, stocks were expensive relative to bonds,
recent corporate earnings were somewhat disappointing and that Federal Reserve
Chairman Alan Greenspan could possibly seek a short-term interest rate hike.
As a result, when October 27 arrived, our equity funds held
above-average cash positions relative to many of our competitors. Not only did
our higher cash levels serve as a protection, they also enabled us to buy the
stocks of numerous excellent companies that were selling at more reasonable
prices. In addition, our international and global funds were not as impacted
because they weren't heavily invested in Southeast Asia and Japan. Finally, on
the fixed-income side, our bond funds were generally characterized by
longer-than-normal durations, which allowed us to lock in higher yields.
In conclusion, many of our funds experienced relatively strong
performance during the October-November market shake-ups. We'd like to take
this opportunity to remind shareholders that stock market volatility is a
normal and expected part of the business cycle. As Alan Greenspan suggested, in
years to come this period will likely be remembered as a positive change for a
market that was growing too quickly.
For frequent market updates, please visit our website at
WWW.OPPENHEIMERFUNDS.COM or call 1-800-835-3104 to listen to our recorded
messages. In the meantime, 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.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 7, 1997
3 Oppenheimer Multiple Strategies Fund
<PAGE> 4
AVG ANNUAL TOTAL RETURNS
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
1 year 5 year 10 year
<S> <C> <C>
18.25% 13.85% 10.40%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
Since
1 year 5 year Inception
<S> <C> <C>
19.34% N/A 17.63%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
Since
1 year 5 year Inception
<S> <C> <C>
23.42% N/A 14.28%
</TABLE>
CUMULATIVE TOTAL RETURN
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
5 year
<S> <C>
91.31% $19,131(4)
</TABLE>
PERFORMANCE update
- -------------------------------------------------------------------------------
Oppenheimer Multiple Strategies Fund's Class A shares performed very well for
the one-year period ended September 30, 1997, providing an average annual total
return of 25.46%, without sales charges.(2) This return is higher than the
24.03% average return earned by the 333 funds in Lipper's balanced fund
category for the same period.(3)
<TABLE>
<CAPTION>
GROWTH OF $10,000
Over five years
(without sales charges)(4)
Lipper Balanced Oppenheimer Multiple Strategies
Index Fund Class A
<S> <C> <C>
9/30/92 $10,000 $10,000
10,376 10,350.8
10,864.7 10,840.8
11,087.4 11,146
11,493.2 11,608.3
11,617.4 12,037.5
11,263 11,655.1
11,177.4 11,543.9
11,504.9 12,068.3
11,379.5 11,846.6
12,066.9 12,639
12,911.5 13,456
13,604.9 14,229.3
14,213 14,546.1
14,531.4 15,135.8
14,826.4 15,574.7
15,214.8 16,178.3
16,062.3 17,052.2
16,133 17,171.3
17,860.8 18,725.9
9/30/97 19,007.5 20,297.9
</TABLE>
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 4/24/87. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception on
8/29/95). Class C returns for the 1-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 12/1/93. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge and 0.25% distribution fee. Class A shares are subject to an
annual asset-based sales charge not to exceed 0.25%.
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
3. Source: Lipper Analytical Services, Inc., 9/30/97. Lipper performance is
based on total return and does not take sales charges into account.
4 Oppenheimer Multiple Strategies Fund
<PAGE> 5
SECTOR ALLOCATION (5)
<TABLE>
<S> <C>
Technology 25.8%
Consumer Cyclical 17.5
Financial 14.3
Consumer Non-Cyclical 14.3
Industrial 10.1
Energy 9.3
Basic Materials 5.2
Utility 3.2
Other 0.3
</TABLE>
PORTFOLIO REVIEW
- -------------------------------------------------------------------------------
Oppenheimer Multiple Strategies Fund is for investors who are looking for high
total return from a flexible portfolio.
WHAT WE LOOK FOR
- - Value companies with ABOVE-AVERAGE FUNDAMENTALS at below average prices.
- - Contrarian companies in "out-of-favor" industries that are believed to be ON
THE REBOUND.
- - Growth companies with the POTENTIAL FOR STRONG FUTURE GROWTH.
- - Companies with ABOVE-AVERAGE DIVIDEND YIELDS.
- - HIGH CURRENT INCOME generated by strategically investing in U.S. government
bonds, foreign fixed-income securities and corporate bonds.
- - International DIVERSIFICATION.
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(5)
<S> <C>
...............................................
Intel Corp. 5.2%
...............................................
Chase Manhattan Corp. 3.3
...............................................
NationsBank Corp. 2.5
...............................................
Xerox Corp. 2.1
...............................................
Computer Associates
International, Inc. 1.7
...............................................
IBM Corp. 1.7
...............................................
Philip Morris Cos. 1.5
...............................................
Burlington Northern
Santa Fe Corp. 1.4
...............................................
Input/Output, Inc. 1.4
...............................................
Unocal Corp. 1.4
...............................................
</TABLE>
4. Results of a hypothetical $10,000 investment in Class A shares on September
30, 1992. The Lipper Balanced Index includes funds whose primary objective is
to conserve principal by maintaining a balanced portfolio of stocks and bonds
without considering sales charges, and cannot be purchased directly by
investors. Stocks and bonds are subject to different risks, described in the
prospectus.
5. Portfolio is subject to change. Percentages are as of September 30, 1997 and
are based on total market value of stock holdings.
5 Oppenheimer Multiple Strategies Fund
<PAGE> 6
"IN JUNE 1997, TWO OTHER FUNDS MERGED INTO OPPENHEIMER MULTIPLE STRATEGIES
FUND."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- -------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED DURING THE 12-MONTH PERIOD ENDED SEPTEMBER 30, 1997?
Oppenheimer Multiple Strategies Fund's Class A shares provided an average
annual total return of 25.46%, without sales charges, for the one-year period
ended September 30, 1997.(1) We also performed well relative to our peers,
beating the average total return of 24.03% earned by the 333 funds in the
balanced fund category as measured by Lipper Analytical Services.(2) These
returns reflect the effects of the Fund's merger with Oppenheimer Fund and
Oppenheimer Strategic Income & Growth Fund, which occurred in June.
WHAT IS YOUR CURRENT ALLOCATION AMONG STOCKS, BONDS AND CASH, AND HOW HAS IT
CHANGED?
As of September 30, 1997, the Fund's assets were allocated 60% to stocks, 32%
to bonds and 8% to cash and equivalents. Going forward, we are striving to
maintain a mix of approximately 55% equities and 45% fixed-income securities
and cash. We believe that this allocation will help us produce attractive
returns with low risks over a full market cycle. We also believe that this
allocation will produce a portfolio that can perform well in many different
market environments.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2. Source: Lipper Analytical Services Inc., 9/30/97. Lipper performance is
based on total return and does not take sales charges into account.
6 Oppenheimer Multiple Strategies Fund
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT TEAM (L TO R)
Mike Levine
Richard Rubinstein
(Fund Manager)
David Negri
HOW HAVE YOU MANAGED THE FIXED-INCOME PORTION OF THE FUND DURING THE PERIOD?
Our approach to fixed-income investing is to diversify among U.S. Treasury
securities, high-yield corporate bonds and foreign bonds. This approach
enabled us to capture extra yield while reducing risks. That's because the
three bond markets react differently to the changing environments. For example,
within the U.S. Treasury market, the greatest risk is maturity; within foreign
markets, the major risk is currency; and for high-yield corporate bonds, the
greatest risk is credit. By participating in all three markets, we've been able
to earn incrementally higher yields because we've always enjoyed some exposure
to the better-performing areas.
This year, we began to reduce our exposure to the riskier markets.
Early in the year, we reduced our positions in high-yield bonds, primarily
because we were concerned about high valuations in the stock market. More
recently, we cut back some of our foreign bond holdings. That's because yield
spreads have narrowed, and foreign bonds are not as attractive relative to U.S.
Treasuries as they were when we initially bought them.
7 Oppenheimer Multiple Strategies Fund
<PAGE> 8
"THE RECENT STELLAR PERFORMANCE OF LARGER STOCKS HAS CREATED A DISPARITY IN
VALUATIONS..."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- -------------------------------------------------------------------------------
IN WHAT AREAS OF THE STOCK MARKET DID YOU PARTICIPATE?
We break our overall stock participation into five segments: growth, value,
contrarian, international and high dividend yield. By participating in all of
these segments, we are able to achieve broad diversification. Typically, about
25% of the assets in our stock portfolio are allocated to growth, about 35% to
value, 10% to contrarian, 25% to international, and about 5% is high dividend
yield.
Within each of these areas, we take a "bottom-up" approach to
selecting stocks, preferring to evaluate individual companies rather than
entire economies or industries. Since the start of 1997, this approach has led
us to a number of medium-capitalization companies. While large-cap stocks have
represented the best-performing stocks in the marketplace so far this year, a
strong U.S. dollar may make large companies' foreign earnings less attractive
in the months ahead. This change may help domestic-oriented companies close the
earnings-growth differential.
8 Oppenheimer Multiple Strategies Fund
<PAGE> 9
"... AND WE THINK THAT DIFFERENCE WILL SOON RETURN TO MORE NORMAL LEVELS."
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We are cautiously optimistic. We've seen no evidence that inflation is rearing
its ugly head, and there is no indication that the Federal Reserve believes
that it should raise interest rates. Looking ahead to 1998, we expect to
continue to see modest increases in corporate earnings. The flow of assets into
the financial markets remains strong, especially from retirement plans. As a
result, demand for stocks has risen, while the supply has remained stable. The
same supply-and-demand factors are also developing in the bond market. As tax
revenues have increased and the U.S. moves closer to balancing its budget, the
U.S. Treasury has issued fewer bonds. These positive supply-and-demand
characteristics should tend to keep interest rates low.
Nonetheless, we will continue to manage the Fund as a "portfolio for
all seasons." Our multiple-strategies approach should enable us to participate
in rising markets, while broad diversification provides protection against
unexpected market declines. We are prepared to help our shareholders prosper,
no matter what the markets have in store.
9 Oppenheimer Multiple Strategies Fund
<PAGE> 10
FINANCIALS
- -------------------------------------------------------------------------------
10 Oppenheimer Multiple Strategies Fund
<PAGE> 11
STATEMENT OF INVESTMENTS September 30, 1997
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================
<S> <C> <C>
COMMON STOCKS--60.0%
- ------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--3.2%
- ------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.6%
Bayer AG, Sponsored ADR 144,000 $ 5,735,736
- ------------------------------------------------------------------------------------------------------------------
Ecolab, Inc.(1) 35,400 1,719,112
- ------------------------------------------------------------------------------------------------------------------
IMC Global, Inc. 82,300 2,901,075
- ------------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 40,000 3,140,000
------------
13,495,923
- ------------------------------------------------------------------------------------------------------------------
METALS--0.7%
Alumax, Inc.(2) 52,118 2,130,323
- ------------------------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 130,000 3,339,375
- ------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum Corp.(2) 1,999 28,361
------------
5,498,059
- ------------------------------------------------------------------------------------------------------------------
PAPER--0.9%
Aracruz Celulose SA, Sponsored ADR 121,000 2,488,062
- ------------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 185,469 2,716,137
- ------------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 4,900 72,275
- ------------------------------------------------------------------------------------------------------------------
Union Camp Corp. 30,000 1,850,625
------------
7,127,099
- ------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--10.5%
- ------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.6%
Champion Enterprises, Inc.(2) 70,000 1,338,750
- ------------------------------------------------------------------------------------------------------------------
Dana Corp. 38,000 1,876,250
- ------------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 407,562 1,813,988
------------
5,028,988
- ------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--5.7%
Alaska Air Group, Inc.(1) 126,000 4,142,250
- ------------------------------------------------------------------------------------------------------------------
AMR Corp.(2) 43,000 4,759,562
- ------------------------------------------------------------------------------------------------------------------
Boston Chicken, Inc.(2) 160,000 2,360,000
- ------------------------------------------------------------------------------------------------------------------
Brunswick Corp. 33,000 1,163,250
- ------------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A(1) 46,700 2,159,875
- ------------------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 120,000 3,885,000
- ------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co.(1) 6,000 483,750
- ------------------------------------------------------------------------------------------------------------------
Gaylord Entertainment Co., Cl. A 83,000 2,142,437
- ------------------------------------------------------------------------------------------------------------------
International Game Technology(1) 202,000 4,595,500
- ------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 1 50
- ------------------------------------------------------------------------------------------------------------------
Mirage Resorts, Inc.(2) 55,000 1,656,875
- ------------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 67,000 6,271,016
- ------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1)(2) 81,000 2,237,625
</TABLE>
11 Oppenheimer Multiple Strategies Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LEISURE & ENTERTAINMENT (CONTINUED)
Shangri-La Asia Ltd. 1,400,000 $ 1,438,260
- ------------------------------------------------------------------------------------------------------------------
Shimano, Inc. 165,000 3,826,720
- ------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 66,100 3,581,794
- ------------------------------------------------------------------------------------------------------------------
West Marine, Inc.(1)(2) 100,000 2,287,500
------------
46,991,464
- ------------------------------------------------------------------------------------------------------------------
MEDIA--1.3%
Comcast Corp., Cl. A Special(1) 130,000 3,347,500
- ------------------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc.(1) 42,600 1,991,550
- ------------------------------------------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 2,800,000 2,550,877
- ------------------------------------------------------------------------------------------------------------------
U S West Media Group(2) 120,000 2,677,500
------------
10,567,427
- ------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.1%
Cone Mills Corp.(2) 422,000 3,507,875
- ------------------------------------------------------------------------------------------------------------------
Dayton Hudson Corp. 21,000 1,258,687
- ------------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(2) 40,000 1,725,000
- ------------------------------------------------------------------------------------------------------------------
Neiman-Marcus Group, Inc. 84,500 2,704,000
------------
9,195,562
- ------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.8%
AutoZone, Inc.(2) 100,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------
Costco Cos., Inc.(1)(2) 58,100 2,186,012
- ------------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc.(1)(2) 110,000 3,203,750
- ------------------------------------------------------------------------------------------------------------------
Gymboree Corp.(1)(2) 105,000 2,730,000
- ------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc.(2) 115,000 4,082,500
------------
15,202,262
- ------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--8.5%
- ------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.4%
Guinness plc 390,000 3,682,389
- ------------------------------------------------------------------------------------------------------------------
FOOD--1.4%
Chiquita Brands International, Inc. 181,000 2,918,625
- ------------------------------------------------------------------------------------------------------------------
Groupe Danone 18,748 2,954,947
- ------------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 48,000 3,348,130
- ------------------------------------------------------------------------------------------------------------------
Sara Lee Corp.(1) 54,000 2,781,000
------------
12,002,702
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.9%
Abbott Laboratories(1) 50,000 3,196,875
- ------------------------------------------------------------------------------------------------------------------
American Home Products Corp. 55,000 4,015,000
- ------------------------------------------------------------------------------------------------------------------
Amgen, Inc.(2) 60,000 2,876,250
- ------------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 180,000 3,323,461
</TABLE>
12 Oppenheimer Multiple Strategies Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/DRUGS(CONTINUED)
Bristol-Myers Squibb Co.(1) 18,500 $ 1,530,875
- ------------------------------------------------------------------------------------------------------------------
Genzyme Corp.(2) 3,225 31,444
- ------------------------------------------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1)(2) 107,500 3,198,125
- ------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 46,800 2,696,850
- ------------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 160,000 3,590,000
- ------------------------------------------------------------------------------------------------------------------
Novartis AG 3,323 5,102,553
- ------------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc, ADR 62,000 3,030,250
------------
32,591,683
- ------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.3%
HemaSure, Inc.(2) 132,500 513,437
- ------------------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc. 55,000 1,839,062
- ------------------------------------------------------------------------------------------------------------------
MedPartners, Inc.(2) 108,000 2,315,250
- ------------------------------------------------------------------------------------------------------------------
United States Surgical Corp. 69,000 2,013,937
- ------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc.(1)(2) 71,400 4,136,737
------------
10,818,423
- ------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.3%
Wella AG 3,100 2,204,523
- ------------------------------------------------------------------------------------------------------------------
Wella AG, Preference 350 266,931
------------
2,471,454
- ------------------------------------------------------------------------------------------------------------------
TOBACCO--1.2%
Imperial Tobacco Group plc 350,000 2,097,599
- ------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc.(1) 180,000 7,481,250
------------
9,578,849
- ------------------------------------------------------------------------------------------------------------------
ENERGY--5.6%
- ------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--1.6%
Global Marine, Inc.(1) 78,000 2,593,500
- ------------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co. 25,200 1,973,475
- ------------------------------------------------------------------------------------------------------------------
Transocean Offshore, Inc. 68,000 3,259,750
- ------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc.(1)(2) 44,500 2,372,406
- ------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc.(1) 36,000 3,168,000
------------
13,367,131
- ------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--4.0%
Atlantic Richfield Co. 57,000 4,869,937
- ------------------------------------------------------------------------------------------------------------------
Elan Energy, Inc.(2) 385,000 2,839,987
- ------------------------------------------------------------------------------------------------------------------
Enron Corp. 55,000 2,117,500
- ------------------------------------------------------------------------------------------------------------------
Enterprise Oil plc 130,000 1,417,515
- ------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 22,000 1,513,875
- ------------------------------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 75,000 1,945,312
</TABLE>
13 Oppenheimer Multiple Strategies Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OIL-INTEGRATED (CONTINUED)
Royal Dutch Petroleum Co., NY Shares 41,600 $ 2,308,800
- ------------------------------------------------------------------------------------------------------------------
Talisman Energy, Inc.(2) 60,000 2,065,445
- ------------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR(1) 63,480 3,638,197
- ------------------------------------------------------------------------------------------------------------------
Unocal Corp.(1) 150,000 6,487,500
- ------------------------------------------------------------------------------------------------------------------
YPF SA, Cl. D, ADR 99,000 3,650,625
------------
32,854,693
- ------------------------------------------------------------------------------------------------------------------
FINANCIAL--8.7%
- ------------------------------------------------------------------------------------------------------------------
BANKS--4.5%
Akbank T.A.S. 8,080,304 625,985
- ------------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 157,711 1,703,596
- ------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New)(1) 140,000 16,520,000
- ------------------------------------------------------------------------------------------------------------------
NationsBank Corp. 200,000 12,375,000
- ------------------------------------------------------------------------------------------------------------------
Societe Generale 30,100 4,358,558
- ------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 5,700 1,567,500
------------
37,150,639
- ------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.0%
American Express Co.(1) 50,100 4,101,938
- ------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 80,000 2,820,000
- ------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(1) 70,000 5,193,125
- ------------------------------------------------------------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover & Co. 77,900 4,211,469
------------
16,326,532
- ------------------------------------------------------------------------------------------------------------------
INSURANCE--2.2%
ACE Ltd.(1) 51,500 4,841,000
- ------------------------------------------------------------------------------------------------------------------
American International Group, Inc.(1) 3,000 309,563
- ------------------------------------------------------------------------------------------------------------------
Cigna Corp. 7,000 1,303,750
- ------------------------------------------------------------------------------------------------------------------
Conseco, Inc. 25,000 1,220,313
- ------------------------------------------------------------------------------------------------------------------
Equitable Cos., Inc.(1) 77,000 3,161,813
- ------------------------------------------------------------------------------------------------------------------
Skandia Forsakrings AB 67,000 2,995,467
- ------------------------------------------------------------------------------------------------------------------
UNUM Corp.(1) 90,000 4,106,250
------------
17,938,156
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--6.0%
- ------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.4%
General Electric Co.(1) 59,000 4,015,688
- ------------------------------------------------------------------------------------------------------------------
Methode Electronics, Inc., Cl. A(1) 80,000 2,060,000
- ------------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 44,000 2,769,250
- ------------------------------------------------------------------------------------------------------------------
Westinghouse Electric Corp. 116,500 3,152,781
------------
11,997,719
</TABLE>
14 Oppenheimer Multiple Strategies Fund
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL MATERIALS--1.1%
Equitable Bag, Inc.(2)(3) 1,861 $ 9,305
- ------------------------------------------------------------------------------------------------------------------
Owens Corning(1) 131,000 4,781,500
- ------------------------------------------------------------------------------------------------------------------
Wolverine Tube, Inc.(2) 139,000 4,361,125
------------
9,151,930
- ------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.2%
Calgon Carbon Corp. 138,500 1,809,156
- ------------------------------------------------------------------------------------------------------------------
MANUFACTURING--1.6%
AGCO Corp. 115,200 3,650,400
- ------------------------------------------------------------------------------------------------------------------
Komatsu Ltd. 260,000 1,453,657
- ------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 121,000 5,792,875
- ------------------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Co. 100,000 2,312,500
------------
13,209,432
- ------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.7%
Airborne Freight Corp.(1) 18,000 1,090,125
- ------------------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp.(1) 73,900 7,140,588
- ------------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA 155,100 4,129,538
- ------------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 67,050 1,944,450
------------
14,304,701
- ------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--15.6%
- ------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.4%
Lockheed Martin Corp. 32,000 3,412,000
- ------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.7%
Cabletron Systems, Inc.(1)(2) 95,000 3,040,000
- ------------------------------------------------------------------------------------------------------------------
Canon, Inc. 81,000 2,368,342
- ------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 71,000 4,938,938
- ------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 80,000 8,475,000
- ------------------------------------------------------------------------------------------------------------------
Moore Corp. Ltd. 70,000 1,330,000
- ------------------------------------------------------------------------------------------------------------------
Xerox Corp.(1) 123,000 10,355,063
------------
30,507,343
- ------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--4.0%
America Online, Inc.(1)(2) 60,000 4,526,250
- ------------------------------------------------------------------------------------------------------------------
Business Objects SA, Sponsored ADR(2) 83,500 845,438
- ------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc.(1) 120,450 8,649,816
- ------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(1)(2) 87,000 3,360,375
- ------------------------------------------------------------------------------------------------------------------
First Data Corp. 38,400 1,442,400
- ------------------------------------------------------------------------------------------------------------------
Inference Corp., Cl. A(2) 160,000 960,000
- ------------------------------------------------------------------------------------------------------------------
Novell, Inc.(2) 394,000 3,533,688
- ------------------------------------------------------------------------------------------------------------------
Rational Software Corp.(1)(2) 130,500 2,088,000
</TABLE>
15 Oppenheimer Multiple Strategies Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE (CONTINUED)
Sabre Group Holdings, Inc.(2) 71,000 $ 2,542,688
- ------------------------------------------------------------------------------------------------------------------
Symantec Corp.(1)(2) 142,842 3,249,656
- ------------------------------------------------------------------------------------------------------------------
Transition Systems, Inc.(2) 97,300 1,994,650
------------
33,192,961
- ------------------------------------------------------------------------------------------------------------------
ELECTRONICS--5.6%
CAE, Inc. 164,800 1,382,517
- ------------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 40,000 2,645,000
- ------------------------------------------------------------------------------------------------------------------
Input/Output, Inc.(1)(2) 233,000 6,902,625
- ------------------------------------------------------------------------------------------------------------------
Intel Corp.(1) 280,000 25,847,500
- ------------------------------------------------------------------------------------------------------------------
Keyence Corp. 14,800 2,071,730
- ------------------------------------------------------------------------------------------------------------------
LSI Logic Corp.(1)(2) 84,000 2,698,500
- ------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(1) 21,000 1,970,063
- ------------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1)(2) 6,300 793,800
- ------------------------------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(1) 27,000 2,534,625
------------
46,846,360
- ------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--1.9%
Airtouch Communications, Inc.(1)(2) 127,300 4,511,194
- ------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(1)(2) 66,870 4,885,689
- ------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd.(1) 114,400 3,703,700
- ------------------------------------------------------------------------------------------------------------------
Newbridge Networks Corp.(1)(2) 49,000 2,933,875
------------
16,034,458
- ------------------------------------------------------------------------------------------------------------------
UTILITIES--1.9%
- ------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.3%
Allegheny Power System, Inc. 27,000 816,750
- ------------------------------------------------------------------------------------------------------------------
Houston Industries, Inc. 90,000 1,957,500
- ------------------------------------------------------------------------------------------------------------------
PacifiCorp 106,400 2,380,700
- ------------------------------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 82,000 2,111,500
- ------------------------------------------------------------------------------------------------------------------
Southern Co. 100,000 2,256,250
- ------------------------------------------------------------------------------------------------------------------
Union Electric Co. 26,500 1,018,594
------------
10,541,294
- ------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.6%
SBC Communications, Inc. 29,000 1,779,875
- ------------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 4,990,000 571,610
- ------------------------------------------------------------------------------------------------------------------
U S West Communications Group 74,000 2,849,000
------------
5,200,485
------------
Total Common Stocks (Cost $296,556,534) 498,097,274
</TABLE>
16 Oppenheimer Multiple Strategies Fund
<PAGE> 17
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================
<S> <C> <C>
PREFERRED STOCKS--0.1%
- ------------------------------------------------------------------------------------------------------------------
California Federal Bank, 11.50% Non-Cum., Non-Vtg. 2,000 $ 228,125
- ------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc., $19.00 Cv., Series B 12,000 291,000
- ------------------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc.,
14.25% Cum. Sr. Exchangeable Preferred Stock, Non-Vtg.(4) 400 419,000
------------
Total Preferred Stocks (Cost $929,000) 938,125
<CAPTION>
UNITS
==================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99(3) 2,000 20
- ------------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03(3) 300 16,500
- ------------------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01(3) 550 22,275
- ------------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 300 --
- ------------------------------------------------------------------------------------------------------------------
Venezuela Government Wts., Exp. 4/20 2,500 --
Total Rights, Warrants and Certificates (Cost $0) 38,795
<CAPTION>
FACE
AMOUNT(5)
==================================================================================================================
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS--4.3%
- ------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg.
Participation Certificates, Series 151, Cl. F, 9%, 5/15/21 $ 1,000,000 1,086,883
Interest-Only Stripped Mtg.-Backed Security, Series 177,
Cl. B, 10.58%, 7/1/26(6) 1,518,103 495,281
- ------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
7.50%, 10/1/27(7) 5,000,000 5,082,800
11.50%, 7/1/11 131,248 146,078
11.75%, 1/1/16 121,572 140,417
- ------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
7%, 3/20/26 1,214,769 1,247,423
7%, 4/15/26 4,248,351 4,252,175
7.50%, 5/15/27 19,638,584 19,990,901
9%, 11/15/08 221,439 238,436
9%, 2/15/09 192,254 207,237
9%, 5/15/09 46,711 50,352
- ------------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. F, 7.51%, 2/15/28(3)(8) 97,137 72,458
- ------------------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(4) 400,000 381,250
- ------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1992-CHF, Cl. D, 8.25%, 12/25/20 262,477 264,036
Series 1993-C1, Cl. D, 9.45%, 5/25/24 252,980 255,253
Series 1994-C2, Cl. E, 8%, 4/25/25 783,747 793,422
Series 1994-C2, Cl. G, 8%, 4/25/25 190,036 190,586
Series 1991-M6, Cl. B4, 7.174%, 6/25/21(8) 4,884 4,853
</TABLE>
17 Oppenheimer Multiple Strategies Fund
<PAGE> 18
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS(CONTINUED)
Salomon Brothers Mortgage Securities VII:
Series 1996-CL, Cl. F, 9.186%, 1/20/28(8) $ 250,000 $ 212,812
Series 1996-B, Cl. 1, 7.136%, 4/25/26 295,645 203,626
- ------------------------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.804%, 6/25/26(3)(8) 27,688 28,475
------------
Total Mortgage-Backed Obligations (Cost $34,628,169) 35,344,754
==================================================================================================================
U.S. GOVERNMENT OBLIGATIONS--8.6%
- ------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 500,000 469,844
6.50%, 11/15/26 360,000 362,363
STRIPS, Zero Coupon, 7.10%, 11/15/18(9) 17,000,000 4,313,034
STRIPS, Zero Coupon, 7.64%, 8/15/19(9) 18,700,000 4,509,318
- ------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.25%, 2/15/03 6,330,000 6,393,306
6.25%, 2/15/07 5,800,000 5,832,630
7.25%, 2/15/98 14,700,000 14,796,476
7.50%, 5/15/02 327,000 346,722
8.25%, 7/15/98 16,000,000 16,325,007
8.50%, 2/15/00 5,500,000 5,817,971
8.875%, 11/15/98 950,000 982,360
9.25%, 8/15/98 9,450,000 9,736,457
10.75%, 5/15/03 1,190,000 1,452,916
------------
Total U.S. Government Obligations (Cost $70,080,074) 71,338,404
==================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--10.7%
- ------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series I, 5.625%, 4/1/01(8) 473,645 460,126
- ------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Floating Rate Bonds,
Series L, 6.688%, 3/31/05(8) 10,437,200 9,962,307
- ------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Nts., 11.75%, 2/12/07(4) (ARP) 650,000 735,612
- ------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 5.50%, 3/31/23(11) 13,000,000 9,847,500
- ------------------------------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 110,000 126,362
- ------------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion,
Zero Coupon, 23.149%, 12/31/97(9) (MXP) 5,386,170 661,890
- ------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds, 6.875%, 4/15/06(8) 1,039,500 977,780
- ------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Par Bonds, 5.25%, 4/15/24(11) 6,500,000 4,801,875
- ------------------------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds, 6.688%, 7/28/11(8) 170,000 137,275
- ------------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
11.75%, 2/1/03 (CAD) 290,000 272,150
6.50%, 6/1/04 (CAD) 13,320,000 10,186,755
7%, 12/1/06 (CAD) 60,000 47,352
8.75%, 12/1/05 (CAD) 495,000 430,072
9.75%, 12/1/01 (CAD) 6,260,000 5,303,706
</TABLE>
18 Oppenheimer Multiple Strategies Fund
<PAGE> 19
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
Canada (Government of) Bonds:
9.75%, 6/1/01 (CAD) 3,270,000 $ 2,732,936
Series A-33, 11.50%, 9/1/00 (CAD) 585,000 498,113
- ------------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06 (DKK) 21,900,000 3,723,939
- ------------------------------------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E168, 11%, 6/1/08 (ZAR) 6,430,000 1,141,418
- ------------------------------------------------------------------------------------------------------------------
Eskom Sec. Bonds, 11%, 6/1/08 (ZAR) 3,000,000 532,544
- ------------------------------------------------------------------------------------------------------------------
Finland (Republic of) Bonds, 9.50%, 3/15/04 (FIM) 4,000,000 921,567
- ------------------------------------------------------------------------------------------------------------------
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24 (DEM) 2,665,000 1,527,309
- ------------------------------------------------------------------------------------------------------------------
Hellenic Republic Treasury Bills, Zero Coupon,
10.65%, 2/5/98(9) (GRD) 260,000,000 901,434
- ------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
10.50%, 4/1/00 (ITL) 200,000,000 129,209
10.50%, 7/15/00 (ITL) 1,270,000,000 830,816
9%, 10/1/03 (ITL) 195,000,000 130,922
9.50%, 2/1/01 (ITL) 405,000,000 263,132
9.50%, 5/1/01 (ITL) 195,000,000 127,566
- ------------------------------------------------------------------------------------------------------------------
New Zealand (Government of) Bonds:
10%, 3/15/02 (NZD) 1,085,000 781,219
8%, 11/15/06 (NZD) 345,000 241,321
8%, 2/15/01 (NZD) 7,460,000 4,949,809
- ------------------------------------------------------------------------------------------------------------------
Norway (Government of) Bonds, 9.50%, 10/31/02 (NOK) 880,000 147,494
- ------------------------------------------------------------------------------------------------------------------
Philippines (Republic of) Bonds, 8.60%, 6/15/27 1,500,000 1,505,026
- ------------------------------------------------------------------------------------------------------------------
Philippines (Republic of) Par Bonds, Series B, 6.25%, 12/1/17(3)(11) 1,675,000 1,453,063
- ------------------------------------------------------------------------------------------------------------------
Poland (Republic of) Bonds:
12%, 6/12/01 (PLZ) 18,000,000 4,093,267
16%, 2/12/99 (PLZ) 940,000 252,044
16%, 6/12/98 (PLZ) 300,000 82,787
- ------------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts.:
10.50%, 5/15/03 (AUD) 2,590,000 2,287,690
8%, 8/14/01 (AUD) 615,000 482,919
- ------------------------------------------------------------------------------------------------------------------
South Africa (Republic of) Bonds, 12.50%, 12/21/06 (ZAR) 800,000 157,898
- ------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
10.25%, 11/30/98 (ESP) 25,800,000 183,131
10.30%, 6/15/02 (ESP) 39,150,000 316,399
10.50%, 10/30/03 (ESP) 22,100,000 185,977
12.25%, 3/25/00 (ESP) 31,600,000 247,205
- ------------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Medium-Term Nts., 11.437%,
12/9/99(3)(8) 10,000 10,600
- ------------------------------------------------------------------------------------------------------------------
Telkom SA Ltd. Bonds, Series TK05, 12%, 3/31/98 (ZAR) 699,000 147,784
- ------------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 (AUD) 1,500,000 1,213,831
- ------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Bonds:
10%, 9/8/03 (GBP) 325,000 613,436
7%, 6/7/02 (GBP) 2,415,000 3,981,658
7.25%, 12/7/07 (GBP) 2,400,000 4,105,948
</TABLE>
19 Oppenheimer Multiple Strategies Fund
<PAGE> 20
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
United Kingdom Treasury Nts.:
12.50%, 11/21/05 (GBP) 62,000 $ 129,888
13%, 7/14/00 (GBP) 1,050,000 1,955,898
9.75%, 8/27/02 (GBP) 55,000 100,508
- ------------------------------------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03 (DEM) 150,000 97,456
16.50%, 9/1/08(3) (GBP) 35,000 87,636
- ------------------------------------------------------------------------------------------------------------------
United Mexican States, Collateralized Fixed Rate Par Bonds,
Series B, 6.25%, 12/31/19 250,000 208,125
- ------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Disc. Bonds, Series DL, 6.75%, 12/18/07(8) 500,000 478,438
- ------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) New Money Bonds, Series A, 6.875%,
12/18/05(8) 250,000 240,625
- ------------------------------------------------------------------------------------------------------------------
Wijaya Karya Negotiable Promissory Nts., Zero Coupon,
15.09%, 12/9/97(9) (IDR) 2,000,000,000 586,589
------------
Total Foreign Government Obligations (Cost $82,585,430) 88,737,336
==================================================================================================================
LOAN PARTICIPATIONS--0.1%
- ------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan
Facility Bonds, 6.937%, 7/1/01(3)(8) 232,669 225,108
- ------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 6.812%, 1/1/09(8) 665,000 624,061
------------
Total Loan Participations (Cost $813,198) 849,169
==================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--7.9%
- ------------------------------------------------------------------------------------------------------------------
Adelphia Communications Corp., 10.50% Sr. Nts., 7/15/04(4) 500,000 533,125
- ------------------------------------------------------------------------------------------------------------------
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 1,150,000 1,220,437
- ------------------------------------------------------------------------------------------------------------------
Alliance & Leicester Building Society,
8.75% Unsec. Sub. Nts., 12/7/06 (GBP) 60,000 106,011
- ------------------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10.25% Sr. Sub. Nts., 12/1/06 425,000 466,438
- ------------------------------------------------------------------------------------------------------------------
America West Airlines, Inc., 10.75% Sr. Nts., 9/1/05 510,000 548,250
- ------------------------------------------------------------------------------------------------------------------
American International Group, Inc.,
11.70% Unsec. Unsub. Bonds, 12/4/01 (ITL) 95,000,000 67,280
- ------------------------------------------------------------------------------------------------------------------
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06 360,000 383,400
- ------------------------------------------------------------------------------------------------------------------
Amresco, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 209,500
- ------------------------------------------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04(4) 500,000 511,875
- ------------------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, 10.375% Debs., 1/31/02 320,000 336,800
- ------------------------------------------------------------------------------------------------------------------
Asia Pulp & Paper International Finance Co.,
Zero Coupon Asian Currency Nts., 14.91%, 1/23/98(9) (IDR) 130,000,000 36,913
- ------------------------------------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 50,000 50,254
- ------------------------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 300,000 324,000
- ------------------------------------------------------------------------------------------------------------------
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07(4) 1,000,000 1,012,500
- ------------------------------------------------------------------------------------------------------------------
Bell & Howell Co. (New), 0%/11.50% Sr. Disc. Debs.,
Series B, 3/1/05(12) 250,000 211,250
</TABLE>
20 Oppenheimer Multiple Strategies Fund
<PAGE> 21
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES (CONTINUED)
Bell Cablemedia plc, 0%/11.95% Sr. Disc. Nts., 7/15/04(3)(12) $ 500,000 $ 467,500
- ------------------------------------------------------------------------------------------------------------------
Blue Bell Funding, Inc., 11.85% Sec. Extendible
Adjustable Rate Nts., 5/1/99 396,000 407,880
- ------------------------------------------------------------------------------------------------------------------
Building Materials Corp. of America, 8.625% Sr. Nts., Series B, 12/15/06 50,000 51,875
- ------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp.:
10.50% Sr. Sub. Debs., 5/15/16 250,000 285,000
9.875% Sr. Sub. Debs., 2/15/13 250,000 271,250
- ------------------------------------------------------------------------------------------------------------------
CalEnergy, Inc., 9.50% Sr. Nts., 9/15/06 30,000 32,288
- ------------------------------------------------------------------------------------------------------------------
California Energy, Inc., 10.25% Sr. Disc. Nts., 1/15/04 450,000 487,125
- ------------------------------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04(12) 200,000 181,000
- ------------------------------------------------------------------------------------------------------------------
Calpine Corp.:
10.50% Sr. Nts., 5/15/06(3) 225,000 246,938
8.75% Sr. Nts., 7/15/07(4) 650,000 664,625
9.25% Sr. Nts., 2/1/04 655,000 676,288
- ------------------------------------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., 7/15/07(4) 500,000 525,000
- ------------------------------------------------------------------------------------------------------------------
Capstar Broadcasting Partners, Inc., 9.25% Sr. Sub. Nts., 7/1/07 400,000 412,000
- ------------------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 250,000 268,750
- ------------------------------------------------------------------------------------------------------------------
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04(3)(12) 350,000 337,750
- ------------------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc.,
Zero Coupon Sr. Disc. Nts., 12.23%, 8/15/00(9) 500,000 387,500
- ------------------------------------------------------------------------------------------------------------------
Cityscape Financial Corp., 12.75% Sr. Nts., 6/1/04(4) 230,000 201,825
- ------------------------------------------------------------------------------------------------------------------
CMI Industries, Inc., 9.50% Sr. Sub. Nts., 10/1/03(3) 40,000 39,400
- ------------------------------------------------------------------------------------------------------------------
Coleman Escrow Corp., Zero Coupon
Sr. First Priority Disc. Nts., 11.13%, 5/15/01(4)(9) 700,000 479,500
- ------------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Gtd. Sr. Sub. Nts., 4/15/06 200,000 229,750
- ------------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(12) 850,000 671,500
- ------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc.,
12% Sr. Sub. Nts., Series B, 8/1/05 1,300,000 1,446,250
- ------------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA, 0%/13.125% Sr. Deferred
Coupon Bonds, 11/15/03(12) 300,000 234,000
- ------------------------------------------------------------------------------------------------------------------
Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 1,056,786
- ------------------------------------------------------------------------------------------------------------------
Dan River, Inc., 10.125% Sr. Sub. Nts., 12/15/03 500,000 540,000
- ------------------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc,
0%/11.75% Sr. Disc. Nts., 12/15/05(12) 300,000 226,500
- ------------------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 100,000 101,250
- ------------------------------------------------------------------------------------------------------------------
EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04(12) 50,000 45,312
- ------------------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp.,
0%/13.125% Sr. Sec. Disc. Nts., 3/15/04(12) 500,000 420,000
- ------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Bonds, Series E, 5/1/11 250,000 277,500
- ------------------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA de CV, 11.875% Nts., 5/30/01 30,000 33,525
- ------------------------------------------------------------------------------------------------------------------
First Nationwide Holdings, Inc., 10.625% Sr. Sub. Nts., 10/1/03 700,000 775,250
</TABLE>
21 Oppenheimer Multiple Strategies Fund
<PAGE> 22
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES (CONTINUED)
First PV Funding Corp., 10.15% Lease Obligation Bonds,
Series 1986B, 1/15/16(3) $ 625,000 $ 665,625
- ------------------------------------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Sub. Nts., 7/31/07(4) 1,150,000 1,207,500
- ------------------------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd.:
10% Cv. Unsec. Sub. Nts., 4/30/05 (NZD) 35,000 24,668
10.75% Cv. Sub. Nts., 12/15/97 (NZD) 35,000 22,493
14.50% Cv. Sub. Nts., 9/30/00 (NZD) 35,000 26,048
- ------------------------------------------------------------------------------------------------------------------
Global Marine, Inc., 12.75% Sr. Sec. Nts., 12/15/99(3) 400,000 412,000
- ------------------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 500,000 532,500
- ------------------------------------------------------------------------------------------------------------------
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02(3) 25,000 26,250
- ------------------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc., 10.75% Gtd. Sr. Sub. Nts., 10/15/03 100,000 103,750
- ------------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 224,750
- ------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts.,
Series B, 11/1/03(8) 200,000 211,500
- ------------------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 8.875% Sr. Nts., 7/15/07(4) 1,250,000 1,289,062
- ------------------------------------------------------------------------------------------------------------------
Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 725,000 766,687
- ------------------------------------------------------------------------------------------------------------------
ICG Holdings, Inc.:
0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06(12) 470,000 352,500
0%/13.50% Sr. Disc. Nts., 9/15/05(12) 250,000 202,500
- ------------------------------------------------------------------------------------------------------------------
Imax Corp., 10% Sr. Nts., 3/1/01 320,000 338,800
- ------------------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts., 6/1/05(4) 500,000 548,750
- ------------------------------------------------------------------------------------------------------------------
ISP Holdings, Inc., 9% Sr. Nts., Series B, 10/15/03 85,000 89,250
- ------------------------------------------------------------------------------------------------------------------
J. Ray McDermott SA, 9.375% Sr. Sub. Bonds, 7/15/06 1,000,000 1,047,500
- ------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 541,875
- ------------------------------------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts., Series B, 3/15/07 1,000,000 1,055,000
- ------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 100,000 106,000
- ------------------------------------------------------------------------------------------------------------------
Laroche Industries, Inc., 9.50% Sr. Sub. Nts., 9/15/07(4) 500,000 506,250
- ------------------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 990,000
- ------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 1,070,000 1,183,688
- ------------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 0%/10.50% Sr. Disc. Nts., 3/1/07(12) 500,000 357,500
- ------------------------------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Bonds, 12/30/99 38,000 38,570
- ------------------------------------------------------------------------------------------------------------------
Mesa Operating Co., 10.625% Gtd. Sr. Sub. Nts., 7/1/06 1,000,000 1,156,250
- ------------------------------------------------------------------------------------------------------------------
Mettler Toledo, Inc., 9.75% Gtd. Sr. Sub. Nts., 10/1/06 400,000 450,000
- ------------------------------------------------------------------------------------------------------------------
Millicom International Cellular SA,
0%/13.50% Sr. Disc. Nts., 6/1/06(12) 1,000,000 780,000
- ------------------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc,
10.50% First Priority Ship Mtg. Nts., 6/30/07(4) 500,000 537,500
- ------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,079,222
- ------------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 113,000 125,147
- ------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp., 11.875% Nts., 10/1/03(3) 500,000 563,750
</TABLE>
22 Oppenheimer Multiple Strategies Fund
<PAGE> 23
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES (CONTINUED)
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 $ 300,000 $ 312,000
11.625% Sr. Nts., Series A, 8/15/06 525,000 546,000
- ------------------------------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr. Nts., 8/15/04 155,000 161,975
- ------------------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Sub. Nts., 6/15/07(4) 900,000 942,750
- ------------------------------------------------------------------------------------------------------------------
Panamsat International Systems LP, 12.75% Debs., 4/15/05(10) 271,000 327,910
- ------------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03(3)(12) 750,000 734,527
- ------------------------------------------------------------------------------------------------------------------
Panda Global Energy Co., 12.50% Sr. Nts., 4/15/04(3) 1,000,000 975,000
- ------------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07(4) 1,000,000 1,015,000
- ------------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp.:
0%/12.25% Sr. Sub. Disc. Nts., 10/1/03(12) 1,000,000 1,017,500
0%/14% Sr. Sub. Disc. Nts., 11/15/01(12) 500,000 560,000
- ------------------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 530,271
- ------------------------------------------------------------------------------------------------------------------
Ralph's Grocery Co., 10.45% Sr. Nts., 6/15/04 1,375,000 1,512,500
- ------------------------------------------------------------------------------------------------------------------
Randall's Food Markets, Inc., 9.375% Sr. Sub. Nts., 7/1/07(4) 1,600,000 1,620,000
- ------------------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 9.063% First Priority Sr. Sec. Nts., 7/15/00(8) 600,000 594,000
- ------------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 1,725,000 1,875,937
- ------------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp.,
Zero Coupon Sr. Sec. Disc. Nts., 10.09%, 3/15/01(9) 1,000,000 727,500
- ------------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 9.50% Gtd. Sr. Sub. Nts., 4/15/07 250,000 265,625
- ------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.625% Sr. Nts., 8/1/07(4) 550,000 577,500
- ------------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec. Debs., 12/1/07 1,300,000 1,430,000
- ------------------------------------------------------------------------------------------------------------------
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05 575,000 661,250
- ------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts.,
Series B, 4/1/02 300,000 323,250
- ------------------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05(3) 500,000 526,250
- ------------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,137,500
- ------------------------------------------------------------------------------------------------------------------
Showboat Marina Casino Partnership/Showboat Marina Finance Corp.,
13.50% First Mtg. Nts., Series B, 3/15/03 400,000 462,000
- ------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 9% Sr. Sub. Nts., 7/15/07(4) 450,000 448,875
- ------------------------------------------------------------------------------------------------------------------
Sprint Spectrum LP/Sprint Spectrum Finance Corp.,
0%/12.50% Sr. Disc. Nts., 8/15/06(12) 295,000 224,938
- ------------------------------------------------------------------------------------------------------------------
Stater Brothers Holdings, Inc., 9% Sr. Sub. Nts., 7/1/04(4) 500,000 515,625
- ------------------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 10.125% Sr. Sub. Nts., 3/15/06 500,000 508,750
- ------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 11.75% Sr. Unsec. Sub. Nts., 8/15/06 325,000 359,937
- ------------------------------------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 396,551 407,074
9.50% Sr. Sec. Nts., 12/28/08(4) 79,310 81,415
- ------------------------------------------------------------------------------------------------------------------
Sun Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 7/1/07(4) 600,000 621,000
</TABLE>
23 Oppenheimer Multiple Strategies Fund
<PAGE> 24
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES (CONTINUED)
Synthetic Industries, Inc., 9.25% Sr. Sub. Nts., 2/15/07 $ 50,000 $ 51,750
- ------------------------------------------------------------------------------------------------------------------
TCI Satellite Entertainment, Inc., 10.875% Sr. Sub. Nts., 2/15/07(4) 295,000 311,225
- ------------------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc., 0%/11.125%
Sr. Disc. Nts., 7/1/07(12) 500,000 392,500
- ------------------------------------------------------------------------------------------------------------------
Telewest Communications plc, 0%/11% Sr. Disc. Debs., 10/1/07(12) 1,000,000 755,000
- ------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,400,000 1,554,766
- ------------------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375%
Sr. Disc. Nts., Series B, 12/15/03(12) 1,000,000 872,500
- ------------------------------------------------------------------------------------------------------------------
Trump Atlantic City Associates/Trump Atlantic City Funding, Inc.,
11.25% First Mtg. Nts., 5/1/06 100,000 97,375
- ------------------------------------------------------------------------------------------------------------------
TV Azteca SA de CV, 10.50% Gtd. Sr. Nts., Series B, 2/15/07 200,000 212,750
- ------------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03(3) 500,000 518,750
- ------------------------------------------------------------------------------------------------------------------
Universal Outdoor, Inc., 9.75% Sr. Sub. Nts., Series B, 10/15/06 500,000 535,000
- ------------------------------------------------------------------------------------------------------------------
Western Financial Bank, 8.875% Sub. Bonds, 8/1/07 450,000 448,305
- ------------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 900,000 882,000
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $61,750,443) 64,697,815
==================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.0%
- ------------------------------------------------------------------------------------------------------------------
Banco de Colombia, 5.20% Cv. Jr. Unsec. Sub. Nts., 2/1/99(3) 50,000 51,750
- ------------------------------------------------------------------------------------------------------------------
Banco Nacional de Mexico SA,
11% Sub. Exchangeable Capital Debs., 7/15/03 100,000 107,750
- ------------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc.,
6.75% Cv. Gtd. Sr. Sub. Nts., 9/15/03 110,000 128,150
------------
Total Convertible Corporate Bonds and Notes (Cost $259,847) 287,650
==================================================================================================================
STRUCTURED INSTRUMENTS--0.1%
- ------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale (New York Branch)
Canada Banker's Acceptance Indexed Yield Nts., 8.405%, 5/22/98 250,000 248,325
- ------------------------------------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce (New York Branch)
Three Month British Pound LIBOR Forward Linked Nts., 5.79%, 5/22/98 160,000 158,592
- ------------------------------------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce, U.S. Dollar/Japanese
Yen Basis Arbitrage Nts., 10.379%, 4/14/98(3)(8) 75,000 75,000
- ------------------------------------------------------------------------------------------------------------------
ING (U.S.) Financial Holdings Corp. Zero Coupon Czech Koruna
Linked Promissory Nts., 10.98%, 11/17/97(3)(9) CZK 4,462,296 133,577
- ------------------------------------------------------------------------------------------------------------------
ING (U.S.) Financial Holdings Corp. Zero Coupon
Czech Koruna/U.S. Dollar Linked Nts., 10.881%, 3/4/98(9) 75,000 61,868
- ------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. Greek Drachma/Swiss Franc
Linked Nts., Zero Coupon, 14.71%, 1/15/98(9) 50,000 50,900
- ------------------------------------------------------------------------------------------------------------------
Morgan Guaranty Trust Co. of New York, Japanese
Government Bond 193 Currency Protected Bank Nts., 8.14%, 4/29/98 75,000 57,075
</TABLE>
24 Oppenheimer Multiple Strategies Fund
<PAGE> 25
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
STRUCTURED INSTRUMENTS (CONTINUED)
Salomon, Inc. Russian S-Account Credit Linked Nts.,
Zero Coupon, 13.71%, 4/3/98(9) $ 150,000 $ 141,735
- ------------------------------------------------------------------------------------------------------------------
SPARC EM Ltd., Russian GKO Linked/U.S. Dollar Nts.,
Zero Coupon, 12.24%, 10/15/97(9) 40,000 39,858
------------
Total Structured Instruments (Cost $1,021,041) 966,930
==================================================================================================================
REPURCHASE AGREEMENTS--8.9%
- ------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 6.125%,
dated 9/30/97, to be repurchased at $74,112,607 on 10/1/97,
collateralized by U.S. Treasury Nts., 5.875%-7.25%, 5/31/99-8/15/04,
with a value of $75,658,209 (Cost $74,100,000) 74,100,000 74,100,000
- ------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $622,723,736) 100.7% 835,396,252
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.7) (5,470,877)
------------ ------------
NET ASSETS 100.0% $829,925,375
============ ============
</TABLE>
1. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ACE Ltd. 10,000 2/98 $ 90 $ 42,199 $ 83,750
- ---------------------------------------------------------------------------------------------------------------------------
Abbott Laboratories 10,000 11/97 65 25,949 25,000
- ---------------------------------------------------------------------------------------------------------------------------
Airborne Freight Corp. 18,000 11/97 40 43,334 378,000
- ---------------------------------------------------------------------------------------------------------------------------
Airtouch Communications, Inc. 24,000 1/98 40 35,279 25,500
- ---------------------------------------------------------------------------------------------------------------------------
Alaska Air Group, Inc. 24,000 1/98 35 31,209 54,000
- ---------------------------------------------------------------------------------------------------------------------------
America Online, Inc. 12,600 10/97 60 33,090 193,725
- ---------------------------------------------------------------------------------------------------------------------------
American Express Co. 13,000 10/97 75 28,859 95,875
- ---------------------------------------------------------------------------------------------------------------------------
American International
Group, Inc. 2,000 11/97 87 16,939 51,000
- ---------------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 18,500 12/97 70 75,755 277,500
- ---------------------------------------------------------------------------------------------------------------------------
Burlington Northern
Santa Fe Corp. 16,200 10/97 90 23,813 113,400
- ---------------------------------------------------------------------------------------------------------------------------
Cabletron Systems, Inc. 12,800 10/97 40 52,414 800
- ---------------------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 10,500 10/97 40 21,997 65,625
- ---------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 26,000 3/98 125 181,214 182,000
- ---------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 13,200 10/97 75 39,203 23,100
- ---------------------------------------------------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 41,000 1/98 20 35,054 240,875
- ---------------------------------------------------------------------------------------------------------------------------
Computer Associates
International, Inc. 24,000 1/98 80 89,277 84,000
- ---------------------------------------------------------------------------------------------------------------------------
Costco Cos., Inc. 28,000 10/97 35 35,284 77,000
- ---------------------------------------------------------------------------------------------------------------------------
Costco Cos., Inc. 20,000 4/98 40 86,897 95,000
- ---------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 2,000 1/98 90 2,690 3,000
- ---------------------------------------------------------------------------------------------------------------------------
Disney (Walt) Co. 4,000 10/97 85 12,380 2,000
</TABLE>
25 Oppenheimer Multiple Strategies Fund
<PAGE> 26
STATEMENT OF INVESTMENTS (Continued)
- -------------------------------------------------------------------------------
1. Outstanding written call options (continued)
<TABLE>
<CAPTION>
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dow Jones & Co., Inc. 26,800 12/97 $ 45 $ 55,307 $ 97,150
- ---------------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. 22,000 2/98 35 51,588 49,500
- ---------------------------------------------------------------------------------------------------------------------------
Ecolab, Inc. 7,000 10/97 45 12,040 26,250
- ---------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 28,400 12/97 35 105,644 166,850
- ---------------------------------------------------------------------------------------------------------------------------
Equitable Cos., Inc. 15,000 1/98 35 29,549 106,875
- ---------------------------------------------------------------------------------------------------------------------------
General Electric Co. 17,600 12/97 60 44,834 184,800
- ---------------------------------------------------------------------------------------------------------------------------
General Electric Co. 17,600 3/98 80 47,870 35,200
- ---------------------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc. 18,000 10/97 25 21,959 74,250
- ---------------------------------------------------------------------------------------------------------------------------
Genzyme Corp. (General Division) 20,000 4/98 35 61,898 43,750
- ---------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc. 15,600 1/98 25 38,531 138,450
- ---------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc. 15,600 4/98 35 58,030 66,300
- ---------------------------------------------------------------------------------------------------------------------------
Gymboree Corp. 23,000 10/97 30 26,622 1,438
- ---------------------------------------------------------------------------------------------------------------------------
Input/Output, Inc. 46,000 2/98 30 90,617 132,250
- ---------------------------------------------------------------------------------------------------------------------------
Intel Corp. 33,000 1/98 98 104,689 226,875
- ---------------------------------------------------------------------------------------------------------------------------
Intel Corp. 39,000 10/97 85 148,098 341,250
- ---------------------------------------------------------------------------------------------------------------------------
International Game Technology 40,000 4/98 25 63,798 95,000
- ---------------------------------------------------------------------------------------------------------------------------
LSI Logic Corp. 15,400 10/97 45 88,085 963
- ---------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 5,200 1/98 60 14,793 86,450
- ---------------------------------------------------------------------------------------------------------------------------
Methode Electronics, Inc., Cl. A 16,000 4/98 30 17,519 28,000
- ---------------------------------------------------------------------------------------------------------------------------
Newbridge Networks Corp. 12,800 12/97 45 55,614 201,600
- ---------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares,
Sponsored ADR 12,000 1/98 85 86,637 165,000
- ---------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares,
Sponsored ADR 9,000 10/97 70 33,479 213,750
- ---------------------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc. 2,800 12/97 85 35,615 119,000
- ---------------------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc. 2,500 3/98 115 56,798 59,375
- ---------------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. 16,200 11/97 25 28,876 50,625
- ---------------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. 16,200 2/98 30 29,068 25,312
- ---------------------------------------------------------------------------------------------------------------------------
Owens Corning 18,300 12/97 45 52,062 4,575
- ---------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 25,000 12/97 55 25,812 3,125
- ---------------------------------------------------------------------------------------------------------------------------
Rational Software Corp. 26,000 10/97 25 22,229 1,625
- ---------------------------------------------------------------------------------------------------------------------------
SGS-Thomson
Microelectronics NV 5,400 4/98 100 48,436 48,600
- ---------------------------------------------------------------------------------------------------------------------------
Sara Lee Corp. 14,800 10/97 45 19,905 96,200
- ---------------------------------------------------------------------------------------------------------------------------
Symantec Corp. 33,400 1/98 20 103,370 154,475
- ---------------------------------------------------------------------------------------------------------------------------
Symantec Corp. 33,400 10/97 18 40,747 175,350
- ---------------------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 13,800 11/97 45 19,663 170,775
- ---------------------------------------------------------------------------------------------------------------------------
UNUM Corp. 11,600 12/97 45 51,850 33,350
</TABLE>
26 Oppenheimer Multiple Strategies Fund
<PAGE> 27
- --------------------------------------------------------------------------------
1. Outstanding written call options (continued)
<TABLE>
<CAPTION>
SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unocal Corp. 25,000 10/97 $45 $ 46,123 $ 18,750
- ---------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. 10,000 3/98 50 23,137 77,500
- ---------------------------------------------------------------------------------------------------------------------------
WellPoint Health Networks, Inc. 4,200 1/98 50 22,973 40,950
- ---------------------------------------------------------------------------------------------------------------------------
West Marine, Inc. 20,000 1/98 30 29,399 5,000
- ---------------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc. 7,000 3/98 85 39,164 54,250
- ---------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 27,400 10/97 70 65,961 397,300
---------- ----------
$2,931,225 $6,089,238
========== ==========
</TABLE>
2. Non-income producing security.
3. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
4. 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 $15,686,764 or 1.89% of the Fund's net
assets, at September 30, 1997.
5. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C>
ARP -- Argentine Peso GRD -- Greek Drachma
AUD -- Australian Dollar IDR -- Indonesian Rupiah
CAD -- Canadian Dollar ITL -- Italian Lira
CZK -- Czech Koruna MXP -- Mexican Peso
DEM -- German Mark NOK -- Norwegian Krone
DKK -- Danish Krone NZD -- New Zealand Dollar
ESP -- Spanish Peseta PLZ -- Polish Zloty
FIM -- Finnish Markka ZAR -- South African Rand
GBP -- British Pound Sterling
</TABLE>
6. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to
changes in prepayment rates than traditional mortgage-backed securities (for
example, GNMA pass-throughs). Interest rates disclosed represent current yields
based upon the current cost basis and estimated timing and amount of future
cash flows.
7. When-issued security to be delivered and settled after September 30, 1997.
8. Represents the current interest rate for a variable rate security.
9. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
10. Interest or dividend is paid in kind.
11. Represents the current interest rate for an increasing rate security.
12. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
See accompanying Notes to Financial Statements.
27 Oppenheimer Multiple Strategies Fund
<PAGE> 28
STATEMENT OF ASSETS AND LIABILITIES September 30, 1997
<TABLE>
<S> <C>
==============================================================================================================
ASSETS
Investments, at value (cost $622,723,736)--see accompanying statement $835,396,252
- --------------------------------------------------------------------------------------------------------------
Cash 236,102
- --------------------------------------------------------------------------------------------------------------
Receivables:
Interest, dividends and principal paydowns 5,011,963
Investments sold 1,488,529
Shares of beneficial interest sold 720,371
- --------------------------------------------------------------------------------------------------------------
Other 22,015
-------------
Total assets 842,875,232
==============================================================================================================
LIABILITIES
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 319
- --------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $2,931,225)--
see accompanying statement--Note 6 6,089,238
- --------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,226,160
Shares of beneficial interest redeemed 574,386
Distribution and service plan fees 390,449
Trustees' fees--Note 1 268,376
Shareholder reports 132,506
Transfer and shareholder servicing agent fees 74,890
Other 193,533
-------------
Total liabilities 12,949,857
==============================================================================================================
NET ASSETS $829,925,375
=============
==============================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $565,496,117
- --------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,488,298
- --------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 53,451,616
- --------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 209,489,344
-------------
Net assets $829,925,375
=============
</TABLE>
28 Oppenheimer Multiple Strategies Fund
<PAGE> 29
<TABLE>
==============================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $712,470,073 and 44,059,355 shares of beneficial interest outstanding) $16.17
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $17.16
- --------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $67,916,052 and 4,234,638 shares of beneficial interest outstanding) $16.04
- --------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $49,539,250 and 3,082,083 shares of beneficial interest outstanding) $16.07
</TABLE>
See accompanying Notes to Financial Statements.
29 Oppenheimer Multiple Strategies Fund
<PAGE> 30
STATEMENT OF OPERATIONS For the Year Ended September 30, 1997
<TABLE>
==============================================================================================================
<S> <C>
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $57,272) $ 16,298,110
- --------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $10,725) 3,947,066
-------------
Total income 20,245,176
==============================================================================================================
EXPENSES
Management fees--Note 4 3,267,378
- --------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 721,139
Class B 249,390
Class C 337,442
- --------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 533,884
- --------------------------------------------------------------------------------------------------------------
Shareholder reports 325,700
- --------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 115,622
- --------------------------------------------------------------------------------------------------------------
Legal and auditing fees 94,601
- --------------------------------------------------------------------------------------------------------------
Registration and filing fees 53,970
- --------------------------------------------------------------------------------------------------------------
Insurance expenses 14,719
- --------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 4,152
- --------------------------------------------------------------------------------------------------------------
Other 15,397
-------------
Total expenses 5,733,394
==============================================================================================================
NET INVESTMENT INCOME 14,511,782
==============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 53,944,505
Closing of futures contracts 194,802
Expiration of option contracts written--Note 6 1,074,688
Foreign currency transactions (716,935)
-------------
Net realized gain 54,497,060
- --------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 42,324,101
Translation of assets and liabilities denominated in foreign currencies (4,647,165)
-------------
Net change 37,676,936
-------------
Net realized and unrealized gain 92,173,996
==============================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $106,685,778
=============
</TABLE>
See accompanying Notes to Financial Statements.
30 Oppenheimer Multiple Strategies Fund
<PAGE> 31
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1997 1996(1)
========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 14,511,782 $ 9,695,717
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain 54,497,060 15,544,485
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 37,676,936 4,393,283
-------------- --------------
Net increase in net assets resulting from operations 106,685,778 29,633,485
========================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (12,706,372) (8,029,426)
Class B (600,770) (114,496)
Class C (936,710) (478,886)
- ------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (14,621,660) --
Class B (435,849) --
Class C (1,359,035) --
========================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A 382,443,207 (6,428,157)
Class B 56,924,508 4,480,009
Class C 23,090,531 4,355,405
========================================================================================================================
NET ASSETS
Total increase 538,483,628 23,417,934
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 291,441,747 268,023,813
-------------- --------------
End of period (including undistributed net investment
income of $1,488,298 and $615,057, respectively) $829,925,375 $291,441,747
============== ==============
</TABLE>
1. For the nine months ended September 30, 1996. The Fund changed its fiscal
year end from December 31 to September 30.
See accompanying Notes to Financial Statements.
31 Oppenheimer Multiple Strategies Fund
<PAGE> 32
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED DECEMBER 31,
1997 1996(2) 1995 1994 1993
=====================================================================================================================
<S> <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
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .50 .49 .52 .54 .44
Net realized and unrealized
gain (loss) 2.88 .96 2.08 (.75) 1.43
------- ------- ------- ------- -------
Total income (loss) from
investment operations 3.38 1.45 2.60 (.21) 1.87
- ---------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.51) (.43) (.49) (.53) (.44)
Distributions from net realized gain (.79) -- (.56) (.79) (.01)
------- ------- ------- ------- -------
Total dividends and distributions
to shareholders (1.30) (.43) (1.05) (1.32) (.45)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.17 $14.09 $13.07 $11.52 $13.05
======= ======= ======= ======= =======
=====================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 25.46% 11.22% 22.79% (1.59)% 16.30%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $712,470 $264,359 $251,353 $237,771 $277,914
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $395,436 $256,765 $249,660 $260,767 $272,303
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.30% 4.73%(5) 3.97% 4.10% 3.58%
Expenses 1.16% 1.21%(5) 1.15% 1.09% 1.14%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 51.0% 31.7% 28.5% 31.5% 32.7%
Average brokerage
commission rate(7) $0.0244 $0.0336 $0.0350 -- --
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to December 31,
1993.
2. For the nine months ended September 30, 1996. 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.
5. Annualized.
32 Oppenheimer Multiple Strategies Fund
<PAGE> 33
<TABLE>
<CAPTION>
CLASS B CLASS C
- ----------- ----------------------------------- ---------------------------------------------------------------
PERIOD
ENDED
YEAR ENDED SEPTEMBER 30, DEC. 31, YEAR ENDED SEPTEMBER 30, YEAR ENDED DECEMBER 31,
1992 1997 1996(2) 1995(3) 1997 1996(2) 1995 1994 1993(1)
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$11.22 $14.01 $13.03 $13.28 $14.02 $13.01 $11.49 $13.05 $12.86
- ---------------------------------------------------------------------------------------------------------------------------
.39 .45 .41 .17 .41 .40 .40 .44 (.97)
.44 2.78 .93 .41 2.83 .96 2.07 (.77) 1.29
------- ------- ------- ------- ------- ------- ------- ------- -------
.83 3.23 1.34 .58 3.24 1.36 2.47 (.33) .32
- ---------------------------------------------------------------------------------------------------------------------------
(.42) (.41) (.36) (.27) (.40) (.35) (.39) (.44) (.12)
-- (.79) -- (.56) (.79) -- (.56) (.79) (.01)
------- ------- ------- ------- ------- ------- ------- ------- -------
(.42) (1.20) (.36) (.83) (1.19) (.35) (.95) (1.23) (.13)
- ---------------------------------------------------------------------------------------------------------------------------
$11.63 $16.04 $14.01 $13.03 $16.07 $14.02 $13.01 $11.49 $13.05
======= ======= ======= ======= ======= ======= ======= ======= =======
===========================================================================================================================
7.54% 24.34% 10.37% 4.44% 24.42% 10.55% 21.69% (2.50)% 2.51%
===========================================================================================================================
$266,713 $67,916 $5,996 $1,265 $49,539 $21,087 $15,405 $9,182 $396
- ---------------------------------------------------------------------------------------------------------------------------
$269,096 $25,113 $3,546 $ 520 $33,813 $17,898 $11,827 $5,601 $194
- ---------------------------------------------------------------------------------------------------------------------------
3.41% 2.26% 3.69%(5) 2.62%(5) 2.61% 3.84%(5) 3.08% 3.30% 2.19%(5)
1.17% 1.96% 2.12%(5) 2.27%(5) 1.97% 2.07%(5) 1.99% 2.00% 2.50%(5)
- ---------------------------------------------------------------------------------------------------------------------------
60.3% 51.0% 31.7% 28.5% 51.0% 31.7% 28.5% 31.5% 32.7%
-- $0.0244 $0.0336 $0.0350 $0.0244 $0.0336 $0.0350 -- --
</TABLE>
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 September 30, 1997 were $213,351,231 and $231,418,251,
respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities.
See accompanying Notes to Financial Statements.
33 Oppenheimer Multiple Strategies Fund
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Multiple Strategies Fund (the 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). The Fund's investment advisor 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 that class and exclusive voting rights with respect to matters
affecting that 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 an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is
reliable and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of 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 contract rates in the
London foreign exchange markets on a daily basis as provided by a reliable bank
or dealer. Options are valued based upon the last sale price on the principal
exchange on which the option is traded or, in the absence of any transactions
that day, the value is based upon the last sale price on the prior trading date
if it is within the spread between the closing bid and asked prices. If the
last sale price is outside the spread, the closing bid is used.
34 Oppenheimer Multiple Strategies Fund
<PAGE> 35
- -------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the 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. At September 30, 1997, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $445,000, which expires in 1998.
- -------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 1997, a credit of $29,188 was made for the Fund's projected
benefit obligations, and payments of $8,352 were made to retired trustees,
resulting in an accumulated liability of $262,195 at September 30, 1997.
35 Oppenheimer Multiple Strategies Fund
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 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 its ultimate characterization for federal income tax purposes.
Also, due to timing of dividend distributions, the fiscal year in which amounts
are distributed may differ from the fiscal year in which the income or realized
gain was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders
to reflect the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, during the year ended September 30, 1997, amounts have been
reclassified to reflect an increase in undistributed net investment income of
$605,311, a decrease in accumulated net realized gain on investments of
$301,073, and a decrease in paid-in capital of $304,238.
- -------------------------------------------------------------------------------
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.
36 Oppenheimer Multiple Strategies Fund
<PAGE> 37
===============================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest for each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
YEAR ENDED SEPTEMBER 30, 1997 SEPTEMBER 30, 1996(1)
---------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,219,229 $ 32,694,783 860,353 $ 11,689,114
Dividends reinvested 1,707,937 24,639,919 524,674 7,190,397
Issued in connection with
the acquisition of:
Oppenheimer Fund--Note 8 21,161,450 321,019,207 -- --
Oppenheimer Strategic
Income & Growth Fund--Note 8 3,530,859 53,563,143 -- --
Redeemed (3,316,554) (49,473,845) (1,862,109) (25,307,668)
---------- ------------ ---------- ------------
Net increase (decrease) 25,302,921 $382,443,207 (477,082) $ (6,428,157)
========== ============ ========== ============
- -------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,162,177 $ 17,259,750 366,656 $ 4,968,484
Dividends reinvested 60,758 888,166 6,864 93,829
Issued in connection with
the acquisition of:
Oppenheimer Fund--Note 8 233,975 3,521,330 -- --
Oppenheimer Strategic
Income & Growth Fund--Note 8 2,758,332 41,512,900 -- --
Redeemed (408,734) (6,257,638) (42,546) (582,304)
---------- ------------ ---------- ------------
Net increase 3,806,508 $ 56,924,508 330,974 $ 4,480,009
========== ============ ========== ============
- -------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 1,211,432 $ 17,627,875 448,796 $ 6,095,106
Dividends reinvested 151,633 2,159,025 33,327 455,037
Issued in connection with
the acquisition of:
Oppenheimer Fund--Note 8 350,467 5,285,049 -- --
Oppenheimer Strategic
Income & Growth Fund--Note 8 246,193 3,712,604 -- --
Redeemed (381,455) (5,694,022) (162,380) (2,194,738)
---------- ------------ ---------- ------------
Net increase 1,578,270 $ 23,090,531 319,743 $ 4,355,405
========== ============ ========== ============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to September 30.
37 Oppenheimer Multiple Strategies Fund
<PAGE> 38
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS AND OPTIONS WRITTEN
At September 30, 1997, net unrealized appreciation on investments and options
written of $209,514,503 was composed of gross appreciation of $223,024,323, and
gross depreciation of $13,509,820.
===============================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager are in accordance with the investment
advisory agreement 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
average annual net assets in excess of $800 million.
For the year ended September 30, 1997, commissions (sales charges paid
by investors) on sales of Class A shares totaled $589,802, of which $187,259
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 $585,932 and $164,027, respectively, of which $42,232
and $2,018, respectively, was paid to an affiliated broker/dealer. During the
year ended September 30, 1997, OFDI received contingent deferred sales charges
of $65,210 and $9,747, 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 shareholder 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 maintaining accounts
of their customers that hold Class A shares. During the year ended September
30, 1997, OFDI paid $59,946 to an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses.
38 Oppenheimer Multiple Strategies Fund
<PAGE> 39
===============================================================================
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its services and costs in distributing Class B
and Class C shares and servicing accounts. Under the Plans, the Fund pays OFDI
an annual asset-based sales charge of 0.75% per year on Class B shares and
Class C shares, as compensation for sales commissions paid from its own
resources at the time of sale and associated financing costs. OFDI also
receives a service fee of 0.25% per year as compensation for costs incurred in
connection with the personal service and maintenance of accounts that hold
shares of the Fund, including amounts paid to brokers, dealers, banks and other
financial institutions. Both fees are computed on the average annual net assets
of Class B and Class C shares, determined as of the close of each regular
business day. During the year ended September 30, 1997, OFDI paid $1,286 and
$11,217 to an affiliated broker/dealer as compensation for Class B and Class C
personal service and maintenance expenses and retained $218,968 and $144,768,
respectively, as compensation for Class B and Class C sales commissions and
service fee advances, as well as financing costs. If either 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 distributing shares before the Plan
was terminated. At September 30, 1997, OFDI had incurred unreimbursed expenses
of $2,459,920 for Class B and $487,837 for Class C.
===============================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Fund generally enters into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the
forward currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable bank or dealer. The Fund will realize a
gain or loss upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
39 Oppenheimer Multiple Strategies Fund
<PAGE> 40
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
5. FORWARD CONTRACTS (Continued)
At September 30, 1997, the Fund had outstanding forward currency exchange
contracts as follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED
CONTRACTS TO PURCHASE EXPIRATION DATE AMOUNT (000S) SEPTEMBER 30, 1997 DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
JAPANESE YEN (JPY) 10/1/97 20,199 JPY $167,305 $319
</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.
40 Oppenheimer Multiple Strategies Fund
<PAGE> 41
===============================================================================
Written option activity for the year ended September 30, 1997 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
----------------------------------- ---------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
OPTIONS PREMIUMS OPTIONS PREMIUMS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at
September 30, 1996 1,728 $ 552,194 -- $ --
Options written 11,114 2,746,062 -- --
Options acquired in connection
with acquisition of:
Oppenheimer Fund 8,071 1,976,169 -- --
Oppenheimer Strategic Income
& Growth Fund 200,000 1,440 200 4,800
Options closed or expired (205,814) (1,378,828) (200) (4,800)
Options exercised (4,121) (965,812) -- --
----------- ----------- ----------- -----------
Options outstanding at
September 30, 1997 10,978 $ 2,931,225 -- $ --
=========== =========== =========== ===========
</TABLE>
===============================================================================
7. ILLIQUID AND RESTRICTED SECURITIES
At September 30, 1997, investments in 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 periodically) 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 September 30, 1997 was $7,699,507, which
represents 0.93% of the Fund's net assets.
===============================================================================
8. ACQUISITION OF OPPENHEIMER FUND AND OPPENHEIMER STRATEGIC INCOME & GROWTH
FUND
On June 20, 1997, the Fund acquired all the net assets of Oppenheimer Fund,
pursuant to an agreement and plan of reorganization approved by the Oppenheimer
Fund shareholders on October 10, 1996. The Fund issued 21,161,450, 233,975 and
350,467 shares of beneficial interest for Class A, Class B, and Class C,
respectively, valued at $321,019,208, $3,521,330, and $5,285,049, in exchange
for the net assets, resulting in combined Class A net assets of $675,300,917,
Class B net assets of $60,510,384 and Class C net assets of $45,364,088 on June
20, 1997. The net assets acquired included net unrealized appreciation of
$114,271,242. The exchange qualified as a tax-free reorganization for federal
income tax purposes.
41 Oppenheimer Multiple Strategies Fund
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
8. ACQUISITION OF OPPENHEIMER FUND AND OPPENHEIMER STRATEGIC INCOME &
GROWTH FUND (CONTINUED)
On June 20, 1997, the Fund acquired all the net assets of Oppenheimer Strategic
Income & Growth Fund, pursuant to an agreement and plan of reorganization
approved by the Oppenheimer Strategic Income & Growth Fund shareholders on
March 10, 1997. The Fund issued 3,530,859, 2,758,332 and 246,193 shares of
beneficial interest for Class A, Class B, and Class C, respectively, valued at
$53,563,143, $41,512,901, and $3,712,604, in exchange for the net assets,
resulting in combined Class A net assets of $675,300,917, Class B net assets of
$60,510,384 and Class C net assets of $45,364,088 on June 20, 1997. The net
assets acquired included net unrealized appreciation of $8,093,961. The
exchange qualified as a tax-free reorganization for federal income tax
purposes.
===============================================================================
9. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other OppenheimerFunds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended September
30, 1997.
42 Oppenheimer Multiple Strategies Fund
<PAGE> 43
INDEPENDENT AUDITORS' REPORT
===============================================================================
The Board of Trustees and Shareholders of
Oppenheimer Multiple Strategies Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Multiple Strategies Fund (formerly Oppenheimer Asset
Allocation Fund) as of September 30, 1997, and the related statement of
operations for the year then ended, the statements of changes in net assets for
the year then ended and the nine-month period ended September 30, 1996, and the
financial highlights for the year ended September 30, 1997, the nine-month
period ended September 30, 1996 and each of the years in the four-year period
ended December 31, 1995. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Multiple Strategies Fund as of September 30, 1997, the
results of its operations for the year then ended, the changes in its net
assets for the year then ended and the nine-month period ended September 30,
1996, and the financial highlights for the year ended September 30, 1997, the
nine-month period ended September 30, 1996 and each of the years in the
four-year period ended December 31, 1995, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1997
43 Oppenheimer Multiple Strategies Fund
<PAGE> 44
FEDERAL INCOME TAX INFORMATION (Unaudited)
===============================================================================
In early 1998, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1997.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Distributions of $0.8909, $0.8628 and $0.8604 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 20, 1996,
of which, for each class of shares, $0.6548 was designated as a "capital gain
distribution" for federal income tax purposes. Whether received in stock or
cash, the capital gain distribution should be treated by shareholders as a gain
from the sale of capital assets held for more than one year (long-term capital
gains).
Dividends paid by the Fund during the year ended September 30, 1997
which are not designated as capital gain distributions should be multiplied by
2.50% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
44 Oppenheimer Multiple Strategies Fund
<PAGE> 45
OPPENHEIMER MULTIPLE STRATEGIES FUND
<TABLE>
<S> <C>
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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
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INVESTMENT ADVISOR OppenheimerFunds, Inc.
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DISTRIBUTOR OppenheimerFunds Distributor, Inc.
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TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
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CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
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INDEPENDENT AUDITORS KPMG Peat Marwick LLP
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LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
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, and are not insured by the FDIC or any other agency, and involve investment
risks, including possible loss of the principal amount invested.
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45 Oppenheimer Multiple Strategies Fund
<PAGE> 46
OPPENHEIMERFUNDS FAMILY
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REAL ASSET FUNDS
- ------------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
============================================================================================================
STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund Capital Appreciation Fund(1) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
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STOCK & BOND FUNDS
- ------------------------------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth &Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
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BOND FUNDS
- ------------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
============================================================================================================
MUNICIPAL FUNDS
- ------------------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund3 Intermediate Municipal Fund Municipal Fund
============================================================================================================
MONEY MARKET FUNDS(4)
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Money Market Fund Cash Reserves
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LIFESPAN
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Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
(c) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
46 Oppenheimer Multiple Strategies Fund
<PAGE> 47
INTERNET
24-hr access to account information
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-2pm 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
INFORMATION AND SERVICES
- -------------------------------------------------------------------------------
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.
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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[OPPENHEIMERFUNDS LOGO]
RA0240.001.0997 November 28, 1997
