<PAGE> 1
SEMIANNUAL REPORT MARCH 31, 1998
OPPENHEIMER
MULTIPLE STRATEGIES FUND
[PHOTO]
[OPPENHEIMER LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview with the
Fund's Manager
10 Statement of Investments
26 Statement of Assets and
Liabilities
28 Statement of Operations
29 Statements of Changes in Net Assets
30 Financial Highlights
33 Notes to Financial Statements
42 Officers and
Trustees
44 Information and Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - THE CONTRARIAN STYLE OF INVESTING led us to temporarily distressed companies
with excellent long-term prospects. We expect these stocks to rise as the
companies solve their problems and valuations return to more normal levels.
- - THE FUND CONTINUED TO FIND attractive investments throughout the world,
particularly in Europe and Latin America.
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS
For the 6-Month Period
Ended 3/31/98
<S> <C>
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
6.07% (0.03)%
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
5.67% 0.87%
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
5.65% 4.69%
</TABLE>
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. This performance is not annualized.
2. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. 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.
2 Oppenheimer Multiple Strategies Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Multiple Strategies Fund
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since the government
began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch farther and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting
that if the rate of inflation falls any lower, it might actually trigger a
period of deflation, where we see the prices of American goods and services
decline. While lower prices may sound like positive news, in reality it isn't:
When prices fall too low, it erodes the value of those goods to the producer.
That is, when economic conditions force a decrease in the price of goods,
companies have to sell more of those items in order to make the same amount of
profit, which translates into greater difficulties for corporations seeking to
improve their bottom lines.
At OppenheimerFunds, we do not believe we will see a period of deflation
in the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money
managers, we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
April 21, 1998
3 Oppenheimer Multiple Strategies Fund
<PAGE> 4
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 3/31/98(1)
<TABLE>
<CAPTION>
CLASS A
1 year 5 year 10 year
<S> <C> <C>
18.18% 13.36% 11.93%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
Since
1 year 5 year Inception
<S> <C> <C>
19.37% N/A 16.48%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
Since
1 year 5 year Inception
<S> <C> <C>
23.39% N/A 13.96%
</TABLE>
CUMULATIVE TOTAL RETURN
For the Period Ended 3/31/98(1)
<TABLE>
<CAPTION>
CLASS A
5 year
<S> <C>
87.19% $18,718(3)
</TABLE>
PERFORMANCE UPDATE
- --------------------------------------------------------------------------------
Oppenheimer Multiple Strategies Fund performed reasonably well over the past six
months primarily because of its ability to shift assets to the most promising
asset classes and investment styles. The Fund's Class A shares provided a
cumulative total return without sales charges of 6.07% for the six-month period
ended March 31, 1998.2
<TABLE>
<CAPTION>
GROWTH OF $10,000
Over five years(3)
(without sales charges)
Oppenheimer Multiple
Strategies Fund Class A Lipper Balanced Index
<S> <C>
$ 10,000 $ 10,000
10,281.5 10,205
10,707.9 10,578.5
11,103.8 10,692.8
10,751.1 10,366.6
10,648.5 10,287.8
11,132.3 10,589.3
10,927.8 10,473.9
11,658.7 11,106.5
12,412.4 11,883.9
13,125.7 12,522.1
13,417.9 13,081.8
13,961.6 13,374.9
14,366.7 13,646.4
14,923.5 14,003.9
15,729.6 14,783.9
15,839.5 14,849
17,273.5 16,439.3
18,723.5 17,494.7
18,524.5 17,748.4
19,860.6 19,150.5
</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 one-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.
4 Oppenheimer Multiple Strategies Fund
<PAGE> 5
ASSET ALLOCATION(4)
<TABLE>
<S> <C>
- - Stocks 51
- - Bonds 33.3
- - Cash & Equivalents 15.7
</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(4)
.......................................................................................
<S> <C> <C> <C>
Chase Manhattan Corp. 2.0% Societe Generale 0.9%
.......................................................................................
NationsBank Corp. 2.0 Bayer AG, Sponsored ADR 0.7
.......................................................................................
Intel Corp. 1.6 Novartis AG 0.7
.......................................................................................
IBM Corp. 1.2 Computer Associates
International, Inc. 0.7
.......................................................................................
Xerox Corp. 0.9 CBS Corp. 0.6
.......................................................................................
</TABLE>
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
3. Results of a hypothetical $10,000 investment in Class A shares on March 31,
1998. 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.
4. Portfolio is subject to change. Percentages are as of March 31, 1998, and are
based on total market value of investments.
5 Oppenheimer Multiple Strategies Fund
<PAGE> 6
"WE BELIEVE THAT THE RECENT INCREASE IN U.S.INTEREST RATES IS TEMPORARY, AND
WE EXPECT BOND PRICES TO DECLINE MODESTLY IN THE MONTHS AHEAD."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED DURING THE PERIOD?
Oppenheimer Multiple Strategies Fund provided a cumulative total return without
sales charges of 6.07% for the six-month period ended March 31, 1998.(1)
WHAT ASSET CLASSES PROVIDED THE HIGHEST RETURNS OVER THE PAST SIX MONTHS?
Both stocks and bonds provided annualized total returns significantly above
their historical averages. In the U.S. stock market, a major setback in late
October occurred in response to the economic crisis in Southeast Asia. Over the
ensuing months, however, U.S. stocks rallied strongly, recovering all lost
ground and more. By mid-March, most broad U.S. stock indices--such as the
Standard & Poor's 500 and Dow Jones Industrial Average--were again setting new
records. Overseas, European stocks generally performed quite well, while the
Japanese and emerging markets did not.
The U.S. bond market also provided excellent returns, but for
different reasons. Unlike stocks, bond prices rose in the aftermath of the Asian
crisis. Fixed-income investors believed that the crisis would slow U.S. economic
growth, helping to relieve domestic inflation pressures. As a result, by the end
of December, long-term U.S. Treasury bond yields were at their lowest levels in
more than 20 years. Although yields have increased modestly since then,
investors who purchased long-term U.S. Treasury bonds at the start of the
six-month period benefited from a combination of competitive yields and capital
appreciation.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
were taken into account.
6 Oppenheimer Multiple Strategies Fund
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Mike Levine
Richard Rubinstein
(Portfolio Manager)
David Negri
DID YOU CHANGE YOUR ASSET ALLOCATION STRATEGY OVER THE PAST SIX MONTHS?
In the first quarter of 1998, we took profits in some of our most successful
stock holdings, temporarily reallocating those assets to cash. We expect to
deploy that cash soon in the fixed-income markets. We believe that the recent
increase in U.S. interest rates is temporary, and we expect bond prices to
decline modestly in the months ahead. Volatility in overseas fixed-income
markets, particularly in Latin America, created some attractive opportunities.
We took advantage of some of those compelling values by purchasing Brady Bonds,
which are U.S. dollar-denominated bonds issued by Latin American governments and
secured by the U.S. Federal Reserve Bank.
IN THE STOCK MARKET, WHICH INVESTMENT STYLES PRODUCED THE MOST ATTRACTIVE
OPPORTUNITIES?
We believe our contrarian style of equity investing worked well over the past
six months. Using this approach, we look for companies with promising futures,
but that are currently experiencing temporary setbacks. We found several
opportunities of this kind in the U.S. technology and consumer goods industries.
In both sectors, stock prices declined after the Asian crisis because many of
these companies obtained a significant portion of their sales from Asian
markets. Yet, both sectors contain well-run companies that we believed became
oversold in the Asian crisis aftermath.
7 Oppenheimer Multiple Strategies Fund
<PAGE> 8
"WE SELECTIVELY PURCHASED SOME OF THE BETTER ESTABLISHED BIOTECHNOLOGY COMPANIES
FOR THE GROWTH-ORIENTED PORTION OF OUR U.S.STOCK PORTFOLIO."
AN INTERVIEW WITH YOUR FUND'S MANAGER
We found similar contrarian opportunities in the Asian markets. Asian stocks
generally fell across the board in response to macroeconomic forces, without
regard for the strengths and weaknesses of individual companies. Even companies
with stable finances, recession-resistant products and strong balance sheets saw
their stock prices fall. We have cautiously explored the Asian markets for such
"fallen angels," and we have made small investments in a few companies that met
our criteria.
IN WHAT INDUSTRIES AND MARKET SECTORS DID YOU FIND ATTRACTIVE OPPORTUNITIES IN
STOCKS?
We selectively purchased some of the better established biotechnology companies
for the growth-oriented portion of our U.S. stock portfolio. We expect these
companies to follow the stocks of large, traditional drug companies, which have
already rallied. We also found good values in U.S. financial services companies,
some of which appear inexpensively priced relative to future earnings
expectations.
In overseas markets, we found attractive opportunities in European
banking stocks and Canadian companies in various industries. European banks are
beginning to restructure their operations in much the same way U.S. banks did
several years ago. Productivity improvements and a shift toward
fee-income-producing services, such as asset management, should drive these
stocks higher. We like Canadian companies because of positive economic
conditions domestically and our expectation that the Canadian dollar will
strengthen relative to the U.S. dollar.
WHAT STOCKS CONTRIBUTED TO THE FUND'S PERFORMANCE OVER THE PAST SIX MONTHS?
Novartis and American Home Products--both large, global companies in the
pharmaceutical industry--have contributed to the Fund's performance. Novartis, a
Swiss
8 Oppenheimer Multiple Strategies Fund
<PAGE> 9
company, is the result of the merger between Ciba Geigy and Sandoz. American
Home Products' proposed merger with Smith Kline Beecham was canceled, but the
stock remained strong. We have held both companies' stocks for some time, and
were rewarded recently by substantial gains when the entire sector rallied.
NationsBank became our second largest holding because we added to an
already substantial position. This regional U.S. bank has grown earnings
consistently, increased return on assets and successfully expanded its markets
through acquisitions. Yet, its stock sells at a lower valuation than many of its
competitors. We believe NationsBank may provide strong returns when it becomes
more fairly valued relative to other regional bank stocks.
WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS OR SO?
We are optimistic, but cautious. On one hand, we believe that declining U.S.
interest rates and low inflation should keep investors focused on the stock
market, leaving room for further expansion of valuations. On the other, the
effects of the Asian crisis and other factors could cause economic growth to
slow moderately in the U.S. and elsewhere, potentially creating a deceleration
of corporate earnings growth. In our view, the tug-of-war between slower
earnings growth and strong investor demand should produce periods of high
near-term volatility on the way to positive long-term returns.
Accordingly, we have adopted a relatively defensive posture by
shifting some assets away from stocks and into bonds, and by emphasizing the
value-oriented and contrarian equity investment styles. As always, we will
continue to employ a variety of investment approaches to ensure that we
participate in attractive opportunities regardless of which style is temporarily
in vogue.
9 Oppenheimer Multiple Strategies Fund
<PAGE> 10
STATEMENT OF INVESTMENTS March 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
===============================================================================
<S> <C> <C>
COMMON STOCKS--51.2%
- -------------------------------------------------------------------------------
BASIC MATERIALS--2.5%
- -------------------------------------------------------------------------------
CHEMICALS--1.6%
Bayer AG, Sponsored ADR 130,000 $ 5,946,993
- -------------------------------------------------------------------------------
Ecolab, Inc.(1) 14,000 406,000
- -------------------------------------------------------------------------------
IMC Global, Inc. 63,000 2,397,937
- -------------------------------------------------------------------------------
Morton International, Inc. 48,000 1,575,000
- -------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 34,400 3,126,100
----------
13,452,030
- -------------------------------------------------------------------------------
METALS--0.3%
Alumax, Inc.(1) 15,600 704,925
- -------------------------------------------------------------------------------
De Beers Consolidated Mines Ltd., ADR 100,000 2,193,750
----------
2,898,675
- -------------------------------------------------------------------------------
PAPER--0.6%
Aracruz Celulose SA, Sponsored ADR 133,000 1,995,000
- -------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 243,977 3,392,264
----------
5,387,264
- -------------------------------------------------------------------------------
CONSUMER CYCLICALS--9.3%
- -------------------------------------------------------------------------------
AUTOS & HOUSING--0.6%
Dana Corp. 42,000 2,443,875
- -------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 679,270 2,568,103
----------
5,011,978
- -------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--4.6%
Alaska Air Group, Inc.(1) (2) 53,000 2,871,937
- -------------------------------------------------------------------------------
AMR Corp.(1) (2) 24,500 3,508,094
- -------------------------------------------------------------------------------
Berjaya Sports Toto Berhad 410,000 1,115,136
- -------------------------------------------------------------------------------
Brunswick Corp. 55,000 1,918,125
- -------------------------------------------------------------------------------
Callaway Golf Co. 101,800 2,952,200
- -------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.(2) 110,000 2,310,000
- -------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc.(1) 91,600 3,664,000
- -------------------------------------------------------------------------------
International Game Technology(1) 142,000 3,550,000
- -------------------------------------------------------------------------------
Mirage Resorts, Inc.(2) 82,000 1,993,684
- -------------------------------------------------------------------------------
Nintendo Co. Ltd. 53,500 4,613,761
- -------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1) (2) 27,100 1,060,287
- -------------------------------------------------------------------------------
Shangri-La Asia Ltd. 940,000 806,783
- -------------------------------------------------------------------------------
Shimano, Inc. 165,000 3,551,153
- -------------------------------------------------------------------------------
Time Warner, Inc. 38,200 2,750,400
- -------------------------------------------------------------------------------
West Marine, Inc.(2) 105,000 3,058,125
----------
39,723,685
</TABLE>
10 Oppenheimer Multiple Strategies Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
<S> <C> <C>
MEDIA--1.2%
CBS Corp.(1) 166,798 $ 5,660,707
- -------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 3,306,000 2,218,775
- -------------------------------------------------------------------------------
U S West Media Group(2) 76,000 2,641,000
----------
10,520,482
- -------------------------------------------------------------------------------
RETAIL: GENERAL--1.3%
Cone Mills Corp.(2) 362,000 3,235,375
- -------------------------------------------------------------------------------
Dayton Hudson Corp.(1) 27,000 2,376,000
- -------------------------------------------------------------------------------
Federated Department Stores, Inc.(2) 49,000 2,538,812
- -------------------------------------------------------------------------------
Neiman-Marcus Group, Inc. 84,500 3,469,781
----------
11,619,968
- -------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.6%
AutoZone, Inc.(1)(2) 85,500 2,896,312
- -------------------------------------------------------------------------------
Costco Cos., Inc.(1)(2) 30,100 1,610,350
- -------------------------------------------------------------------------------
General Nutrition Cos., Inc.(1)(2) 100,000 3,975,000
- -------------------------------------------------------------------------------
Gymboree Corp.(1)(2) 17,500 452,812
- -------------------------------------------------------------------------------
Petco Animal Supplies, Inc.(2) 90,000 1,755,000
- -------------------------------------------------------------------------------
Toys 'R' Us, Inc.(2) 90,000 2,705,625
----------
13,395,099
- -------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--7.5%
- -------------------------------------------------------------------------------
BEVERAGES--0.6%
Coca-Cola Amatil Ltd. 55,000 431,915
- -------------------------------------------------------------------------------
Diageo plc 267,840 3,144,162
- -------------------------------------------------------------------------------
Whitman Corp. 93,000 1,836,750
----------
5,412,827
- -------------------------------------------------------------------------------
FOOD--1.0%
Groupe Danone 18,748 4,526,859
- -------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 38,500 3,678,313
----------
8,205,172
- -------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.1%
Abbott Laboratories 41,000 3,087,812
- -------------------------------------------------------------------------------
American Home Products Corp.(1) 55,000 5,245,625
- -------------------------------------------------------------------------------
Astra AB Free, Series A 180,000 3,715,162
- -------------------------------------------------------------------------------
BioChem Pharma, Inc.(2) 60,000 1,451,250
- -------------------------------------------------------------------------------
Centocor, Inc.(2) 42,000 1,874,250
- -------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1)(2) 112,000 3,584,000
- -------------------------------------------------------------------------------
Johnson & Johnson(1) 51,000 3,738,937
- -------------------------------------------------------------------------------
Mylan Laboratories, Inc.(1) 145,000 3,335,000
</TABLE>
11 Oppenheimer Multiple Strategies Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/DRUGS(CONTINUED)
Novartis AG 3,323 $ 5,880,980
- -------------------------------------------------------------------------------
SmithKline Beecham plc, Sponsored ADR, Cl. A(1) 62,000 3,878,875
----------
35,791,891
- -------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--0.3%
Acuson Corp.(2) 32,400 587,250
- -------------------------------------------------------------------------------
Oxford Health Plans, Inc.(2) 108,000 1,613,250
- -------------------------------------------------------------------------------
United Healthcare Corp.(1) 8,000 518,000
----------
2,718,500
- -------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.6%
Fort James Corp. 47,800 2,189,837
- -------------------------------------------------------------------------------
Wella AG 3,585 2,878,721
- -------------------------------------------------------------------------------
Wella AG, Preference 350 299,972
----------
5,368,530
- -------------------------------------------------------------------------------
TOBACCO--0.9%
Imperial Tobacco Group plc 350,000 2,573,025
- -------------------------------------------------------------------------------
Philip Morris Cos., Inc. 130,000 5,419,375
----------
7,992,400
- -------------------------------------------------------------------------------
ENERGY--4.1%
- -------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--1.6%
Global Marine, Inc.(1)(2) 95,000 2,351,250
- -------------------------------------------------------------------------------
Santa Fe International Corp.(1) 67,500 2,560,781
- -------------------------------------------------------------------------------
Schlumberger Ltd. 26,500 2,007,375
- -------------------------------------------------------------------------------
Transocean Offshore, Inc. 77,500 3,986,406
- -------------------------------------------------------------------------------
Weatherford Enterra, Inc.(2) 43,000 1,824,813
- -------------------------------------------------------------------------------
Western Atlas, Inc.(1)(2) 13,000 1,005,875
----------
13,736,500
- -------------------------------------------------------------------------------
OIL-INTEGRATED--2.5%
Enron Corp. 57,000 2,643,375
- -------------------------------------------------------------------------------
Kerr-McGee Corp. 44,000 3,060,750
- -------------------------------------------------------------------------------
Occidental Petroleum Corp. 60,000 1,758,750
- -------------------------------------------------------------------------------
Petroleo Brasileiro SA, Preference 1,150,000 274,087
- -------------------------------------------------------------------------------
Talisman Energy, Inc.(2) 155,090 4,662,090
- -------------------------------------------------------------------------------
Total SA, Sponsored ADR 38,200 2,294,388
- -------------------------------------------------------------------------------
Unocal Corp. 105,000 4,062,188
- -------------------------------------------------------------------------------
YPF SA, Cl. D, ADR 95,000 3,230,000
----------
21,985,628
</TABLE>
12 Oppenheimer Multiple Strategies Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--10.5%
- ---------------------------------------------------------------------------------------------
BANKS--7.0%
ABN Amro Holding NV 81,000 $ 1,868,924
- ---------------------------------------------------------------------------------------------
Banc One Corp. 30,500 1,929,125
- ---------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 157,711 1,577,394
- ---------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New)(1) 127,900 17,250,513
- ---------------------------------------------------------------------------------------------
Credit Suisse Group 5,500 1,100,373
- ---------------------------------------------------------------------------------------------
Credito Italiano SpA 725,000 3,581,507
- ---------------------------------------------------------------------------------------------
Deutsche Bank AG 12,000 899,674
- ---------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 28,500 2,424,281
- ---------------------------------------------------------------------------------------------
NationsBank Corp. 235,000 17,140,313
- ---------------------------------------------------------------------------------------------
Societe Generale 39,720 7,949,529
- ---------------------------------------------------------------------------------------------
UBS, Bearer 1,180 1,927,342
- ---------------------------------------------------------------------------------------------
Wells Fargo & Co. 8,000 2,650,000
------------
60,298,975
- ---------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.8%
American Express Co.(1) 42,500 3,902,031
- ---------------------------------------------------------------------------------------------
CRIIMI MAE, Inc. 150,000 2,315,625
- ---------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(1) 54,800 4,548,400
- ---------------------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 66,000 4,809,750
------------
15,575,806
- ---------------------------------------------------------------------------------------------
INSURANCE--1.7%
ACE Ltd. 72,000 2,713,500
- ---------------------------------------------------------------------------------------------
Cigna Corp. 15,000 3,075,000
- ---------------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 40,000 1,645,000
- ---------------------------------------------------------------------------------------------
Skandia Forsakrings AB 53,600 3,493,203
- ---------------------------------------------------------------------------------------------
UNUM Corp. 65,400 3,609,263
------------
14,535,966
- ---------------------------------------------------------------------------------------------
INDUSTRIAL--3.0%
- ---------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.6%
Methode Electronics, Inc., Cl. A(1) 120,000 1,792,500
- ---------------------------------------------------------------------------------------------
Rockwell International Corp. 52,800 3,029,400
------------
4,821,900
- ---------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.4%
Equitable Bag, Inc.(2)(3) 1,861 9,305
- ---------------------------------------------------------------------------------------------
Owens Corning 98,000 3,521,875
------------
3,531,180
</TABLE>
13 Oppenheimer Multiple Strategies Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING--1.1%
- ---------------------------------------------------------------------------------------------
AGCO Corp. 93,000 $ 2,760,938
- ---------------------------------------------------------------------------------------------
Pall Corp. 124,850 2,684,275
- ---------------------------------------------------------------------------------------------
Tenneco, Inc. 90,000 3,841,875
------------
9,287,088
- ---------------------------------------------------------------------------------------------
TRANSPORTATION--0.9%
Burlington Northern Santa Fe Corp. 34,000 3,536,000
- ---------------------------------------------------------------------------------------------
Stolt-Nielsen SA 155,100 3,102,000
- ---------------------------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 67,050 1,332,619
------------
7,970,619
- ---------------------------------------------------------------------------------------------
TECHNOLOGY--12.8%
- ---------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.3%
Lockheed Martin Corp.(1) 23,000 2,587,500
- ---------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.2%
Adaptec, Inc.(2) 60,000 1,177,500
- ---------------------------------------------------------------------------------------------
Cabletron Systems, Inc.(2) 152,000 2,213,500
- ---------------------------------------------------------------------------------------------
Canon, Inc. 81,000 1,828,332
- ---------------------------------------------------------------------------------------------
Hewlett-Packard Co. 61,000 3,865,875
- ---------------------------------------------------------------------------------------------
International Business Machines Corp. 97,000 10,075,875
- ---------------------------------------------------------------------------------------------
Xerox Corp.(1) 76,000 8,089,250
------------
27,250,332
- ---------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES--4.1%
America Online, Inc.(1) (2) 70,000 4,781,875
- ---------------------------------------------------------------------------------------------
Broderbund Software, Inc.(2) 111,000 2,025,750
- ---------------------------------------------------------------------------------------------
Computer Associates International, Inc.(1) 100,000 5,775,000
- ---------------------------------------------------------------------------------------------
Electronic Arts, Inc.(1) (2) 49,600 2,328,100
- ---------------------------------------------------------------------------------------------
First Data Corp.(1) 105,000 3,412,500
- ---------------------------------------------------------------------------------------------
Inference Corp., Cl. A(2) 120,000 577,500
- ---------------------------------------------------------------------------------------------
Novell, Inc.(2) 270,000 2,894,063
- ---------------------------------------------------------------------------------------------
PLATINUM Technology, Inc.(2) 92,500 2,381,875
- ---------------------------------------------------------------------------------------------
Rational Software Corp.(2) 204,500 2,658,500
- ---------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc.(1) (2) 87,900 3,153,413
- ---------------------------------------------------------------------------------------------
Symantec Corp.(1) (2) 66,842 1,800,556
- ---------------------------------------------------------------------------------------------
Synopsys, Inc.(2) 46,000 1,506,500
- ---------------------------------------------------------------------------------------------
Transition Systems, Inc.(2) 115,200 2,347,200
------------
35,642,832
</TABLE>
14 Oppenheimer Multiple Strategies Fund
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS--4.2%
CAE, Inc. 164,800 $ 1,315,267
- ---------------------------------------------------------------------------------------------
Credence Systems Corp.(2) 29,400 850,763
- ---------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 74,800 3,384,700
- ---------------------------------------------------------------------------------------------
Input/Output, Inc.(2) 223,000 5,212,625
- ---------------------------------------------------------------------------------------------
Intel Corp.(1) 175,000 13,660,938
- ---------------------------------------------------------------------------------------------
Keyence Corp. 14,800 2,042,128
- ---------------------------------------------------------------------------------------------
LSI Logic Corp.(2) 100,000 2,525,000
- ---------------------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(1) 12,000 1,295,250
- ---------------------------------------------------------------------------------------------
Novellus Systems, Inc.(1) (2) 10,600 458,450
- ---------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(1) (2) 30,500 2,365,656
- ---------------------------------------------------------------------------------------------
Teradyne, Inc.(1) (2) 26,000 1,041,625
- ---------------------------------------------------------------------------------------------
Xilinx, Inc.(1) (2) 55,000 2,059,063
------------
36,211,465
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--1.0%
Airtouch Communications, Inc.(2) 66,000 3,229,875
- ---------------------------------------------------------------------------------------------
Cisco Systems, Inc.(1) (2) 54,000 3,692,250
- ---------------------------------------------------------------------------------------------
ECI Telecommunications Ltd.(1) 45,200 1,389,900
- ---------------------------------------------------------------------------------------------
Newbridge Networks Corp.(1) (2) 14,200 381,625
------------
8,693,650
- ---------------------------------------------------------------------------------------------
UTILITIES--1.5%
- ---------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.7%
Allegheny Energy, Inc. 27,000 906,188
- ---------------------------------------------------------------------------------------------
Houston Industries, Inc. 90,000 2,587,500
- ---------------------------------------------------------------------------------------------
Southern Co. 100,000 2,768,750
------------
6,262,438
- ---------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.8%
SBC Communications, Inc. 58,000 2,530,250
- ---------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 8,640,000 892,839
- ---------------------------------------------------------------------------------------------
U S West Communications Group(1) 40,000 2,190,000
- ---------------------------------------------------------------------------------------------
WorldCom, Inc.(2) 37,500 1,614,844
------------
7,227,933
------------
Total Common Stocks (Cost $267,165,819) 443,118,313
=============================================================================================
PREFERRED STOCKS--0.1%
- ---------------------------------------------------------------------------------------------
California Federal Bank, 11.50% Non-Cum., Non-Vtg. 2,000 227,375
- ---------------------------------------------------------------------------------------------
Prime Retail, Inc., 8.50% Cv. Preferred Stock, Series B 12,000 291,000
- ---------------------------------------------------------------------------------------------
Spanish Broadcasting Systems, Inc., 14.25% Cum. Sr.
Exchangeable Preferred Stock, Non-Vtg.(3) (4) 456 479,940
------------
Total Preferred Stocks (Cost $988,218) 998,315
</TABLE>
15 Oppenheimer Multiple Strategies Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
UNITS SEE NOTE 1
=============================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ---------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99(3) 2,000 $ 270
- ---------------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03(3) 300 19,500
- ---------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01(3) 550 38,500
- ---------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 300 --
------------
Total Rights, Warrants and Certificates (Cost $0) 58,270
FACE
AMOUNT(5)
=============================================================================================
MORTGAGE-BACKED OBLIGATIONS--5.2%
- ---------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass
Mtg. Participation
Certificates, Series 151, Cl. F, 9%, 5/15/21 $ 1,000,000 1,079,523
Interest-Only Stripped Mtg.-Backed Security,
Series 177, Cl. B, 7.547%, 7/1/26(6) 1,449,002 410,475
- ---------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6.50%, 12/1/27-2/1/28 10,089,423 9,978,845
11.50%, 7/1/11 121,605 134,091
- ---------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
7%, 4/1/28(7) 5,000,000 5,050,000
7%, 3/20/26-4/15/26 5,106,819 5,176,448
7.50%, 5/15/27 19,303,204 19,798,139
9%, 11/15/08-5/15/09 379,478 408,844
- ---------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. F, 7.442%, 2/15/28(3) (8) 97,137 81,140
- ---------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(9) 400,000 378,000
- ---------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates:
Series 1992-CHF, Cl. D, 8.25%, 12/25/20 255,594 254,318
Series 1993-C1, Cl. D, 9.45%, 5/25/24 252,980 254,677
Series 1994-C2, Cl. E, 8%, 4/25/25 766,468 774,837
Series 1994-C2, Cl. G, 8%, 4/25/25 183,039 183,583
- ---------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII:
Series 1996-B, Cl. 1, 7.132%, 4/25/26 293,819 215,223
Series 1996-CL, Cl. F, 9.209%, 1/20/28(8) 250,000 218,750
- ---------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.774%, 6/25/26(3) (8) 27,688 28,475
- ---------------------------------------------------------------------------------------------
Total Mortgage-Backed Obligations (Cost $43,723,708) 44,425,368
</TABLE>
16 Oppenheimer Multiple Strategies Fund
<PAGE> 17
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
=============================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--9.6%
- ---------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 $ 500,000 $ 499,219
6.50%, 11/15/26 360,000 384,075
8.875%, 8/15/17 3,650,000 4,838,535
STRIPS, 7.10%, 11/15/18(10) 17,000,000 4,933,740
STRIPS, 7.313%, 8/15/19(10) 18,700,000 5,176,422
- ---------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.875%, 9/30/02 15,000,000 15,117,195
6.25%, 2/15/03-2/15/07 12,130,000 12,483,681
6.50%, 10/15/06 4,640,000 4,867,652
7.50%, 5/15/02 327,000 348,664
8.25%, 7/15/98 16,000,000 16,130,016
8.50%, 2/15/00 5,500,000 5,780,159
8.875%, 11/15/98 950,000 969,297
9.25%, 8/15/98 9,450,000 9,582,895
10.75%, 5/15/03 1,190,000 1,454,033
------------
Total U.S. Government Obligations (Cost $80,167,877) 82,565,583
=============================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--12.3%
- ---------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas,
Series I, 5.615%, 4/1/01(8) 407,673 391,811
Floating Rate Bonds, Series L, 6.625%, 3/31/05(8) 12,057,600 11,153,280
Nts., 11.75%, 2/12/07(9) (ARP) 150,000 154,715
Nts., 9.50%, 11/30/02(8) 15,000,000 15,046,875
Par Bonds, 5.75%, 3/31/23(11) 16,000,000 12,260,000
- ---------------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 110,000 126,500
- ---------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds,
6.688%, 4/15/06(8) 1,029,000 928,672
- ---------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears
Bonds, 6.563%, 7/28/11(8) 170,000 133,663
- ---------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
6.50%, 6/1/04(CAD) 13,320,000 9,988,432
7%, 12/1/06(CAD) 60,000 47,026
8.75%, 12/1/05(CAD) 495,000 422,866
9.75%, 12/1/01(CAD) 6,260,000 5,075,771
9.75%, 6/1/01(CAD) 3,270,000 2,609,254
11.75%, 2/1/03(CAD) 290,000 260,464
Series A-33, 11.50%, 9/1/00(CAD) 585,000 471,470
Series WL43, 5.75%, 6/1/29(CAD) 7,130,000 5,073,820
- ---------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06(DKK) 21,900,000 3,698,657
- ---------------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E168, 11%, 6/1/08(ZAR) 6,430,000 1,116,474
- ---------------------------------------------------------------------------------------------
Eskom Sec. Bonds, 11%, 6/1/08(ZAR) 3,000,000 520,906
- ---------------------------------------------------------------------------------------------
Finland (Republic of) Bonds, 9.50%, 3/15/04(FIM) 4,000,000 886,784
- ---------------------------------------------------------------------------------------------
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24(DEM) 2,665,000 1,596,691
</TABLE>
17 Oppenheimer Multiple Strategies Fund
<PAGE> 18
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
=======================================================================================================
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS(CONTINUED)
Italy (Republic of) Treasury Bonds:
Buoni del Tesoro Poliennali, 10.50%, 4/1/00(ITL) 200,000,000 $ 121,577
Buoni del Tesoro Poliennali, 10.50%, 7/15/00(ITL) 1,270,000,000 782,955
Buoni del Tesoro Poliennali, 9%, 10/1/03(ITL) 195,000,000 127,888
Buoni del Tesoro Poliennali, 9.50%, 2/1/01(ITL) 405,000,000 250,282
Buoni del Tesoro Poliennali, 9.50%, 5/1/01(ITL) 195,000,000 121,630
- -------------------------------------------------------------------------------------------------------
New South Wales Treasury Corp. Gtd Bonds, 7%, 4/1/04(AUD) 1,570,000 1,104,562
- -------------------------------------------------------------------------------------------------------
New Zealand (Government of) Bonds:
8%, 2/15/01(NZD) 7,460,000 4,157,678
8%, 11/15/06(NZD) 345,000 202,203
10%, 3/15/02(NZD) 1,085,000 650,222
- -------------------------------------------------------------------------------------------------------
Norway (Government of) Bonds, 9.50%, 10/31/02(NOK) 880,000 136,570
- -------------------------------------------------------------------------------------------------------
Philippines (Republic of):
Bonds, 8.60%, 6/15/27 1,500,000 1,380,000
Par Bonds, Series B, 6.50%, 12/1/17(3) (11) 1,675,000 1,499,125
- -------------------------------------------------------------------------------------------------------
Poland (Republic of) Bonds:
12%, 6/12/01(PLZ) 18,000,000 4,229,001
16%, 2/12/99(PLZ) 940,000 257,599
16%, 6/12/98(PLZ) 300,000 85,145
- -------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts.:
8%, 8/14/01(AUD) 615,000 439,147
10.50%, 5/15/03(AUD) 2,590,000 2,087,126
- -------------------------------------------------------------------------------------------------------
South Africa (Republic of) Bonds, 12.50%, 12/21/06(ZAR) 800,000 153,074
- -------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
10.25%, 11/30/98(ESP) 25,800,000 170,680
10.30%, 6/15/02(ESP) 39,150,000 302,582
10.50%, 10/30/03(ESP) 22,100,000 179,547
12.25%, 3/25/00(ESP) 31,600,000 230,916
- -------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Medium-Term Nts., 11.50%,
12/9/99(3) (8) 10,000 10,275
- -------------------------------------------------------------------------------------------------------
United Kingdom Treasury Bonds:
7%, 6/7/02(GBP) 2,415,000 4,154,113
7.25%, 12/7/07(GBP) 2,400,000 4,403,365
10%, 9/8/03(GBP) 325,000 638,298
- -------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts.:
9.75%, 8/27/02(GBP) 55,000 104,192
12.50%, 11/21/05(GBP) 62,000 134,681
13%, 7/14/00(GBP) 1,050,000 1,990,212
- -------------------------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03(DEM) 150,000 91,857
16.50%, 9/1/08(3) (GBP) 35,000 88,503
- -------------------------------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par Bonds:
Series A, 6.25%, 12/31/19 4,450,000 3,782,500
Series B, 6.25%, 12/31/19 250,000 212,500
------------
Total Foreign Government Obligations (Cost $102,904,649) 106,244,136
</TABLE>
18 Oppenheimer Multiple Strategies Fund
<PAGE> 19
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
=======================================================================================================
<S> <C> <C>
LOAN PARTICIPATIONS--0.1%
- -------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility
Bonds, 6.75%, 7/1/01(3) (8) $ 228,640 $ 215,493
- -------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche A,
6.656%, 1/1/09(3) (8) 665,000 600,163
------------
Total Loan Participations (Cost $814,218) 815,656
=======================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--6.5%
- -------------------------------------------------------------------------------------------------------
Adelphia Communications Corp., 10.50% Sr. Unsec. Nts.,
Series B, 7/15/04 500,000 548,750
- -------------------------------------------------------------------------------------------------------
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 1,150,000 1,236,250
- -------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10.25% Sr. Sub. Nts., 12/1/06 425,000 474,938
- -------------------------------------------------------------------------------------------------------
American International Group, Inc.,
11.70% Unsec. Unsub. Bonds, 12/4/01(ITL) 95,000,000 63,907
- -------------------------------------------------------------------------------------------------------
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06 360,000 385,200
- -------------------------------------------------------------------------------------------------------
AMRESCO, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 205,000
- -------------------------------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 500,000 537,500
- -------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, 10.375% Debs., 1/31/02 320,000 334,000
- -------------------------------------------------------------------------------------------------------
B.F. Saul Real Estate Investment Trust, 11.625% Sr. Sec. Nts.,
Series B, 4/1/02 300,000 318,750
- -------------------------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 50,000 50,031
- -------------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 300,000 331,500
- -------------------------------------------------------------------------------------------------------
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 1,000,000 1,015,000
- -------------------------------------------------------------------------------------------------------
Building Materials Corp. of America, 8.625% Sr. Nts.,
Series B, 12/15/06 50,000 52,125
- -------------------------------------------------------------------------------------------------------
Cablevision Systems Corp. Holdings, Inc.:
9.875% Sr. Sub. Debs., 2/15/13 250,000 278,125
10.50% Sr. Sub. Debs., 5/15/16 250,000 295,000
- -------------------------------------------------------------------------------------------------------
California Energy, Inc., 10.25% Sr Disc. Nts., 1/15/04 400,000 431,500
- -------------------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04(12) 200,000 188,500
- -------------------------------------------------------------------------------------------------------
Calpine Corp.:
8.75% Sr. Nts., 7/15/07 650,000 676,000
10.50% Sr. Nts., 5/15/06(3) 225,000 248,625
- -------------------------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., Series B, 7/15/07 500,000 520,000
- -------------------------------------------------------------------------------------------------------
Capstar Broadcasting Partners, Inc., 9.25% Sr. Sub. Nts., 7/1/07 400,000 424,000
- -------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 250,000 278,750
- -------------------------------------------------------------------------------------------------------
Celcaribe SA, 13.50% Sr. Sec. Nts., 3/15/04(3) 350,000 362,250
- -------------------------------------------------------------------------------------------------------
Coleman Escrow Corp., Zero Coupon Sr. First Priority Disc. Nts.,
11.125%, 5/15/01(10) 700,000 560,000
- -------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Gtd. Sr. Sub. Nts., 4/15/06 200,000 226,000
- -------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs., 11/15/07(12) 850,000 709,750
- -------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts.,
Series B, 8/1/05 1,300,000 1,469,000
</TABLE>
19 Oppenheimer Multiple Strategies Fund
<PAGE> 20
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
=======================================================================================================
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES(CONTINUED)
Comunicacion Celular SA, 0%/13.125% Sr. Deferred Coupon
Bonds, 11/15/03(12) $ 300,000 $ 235,500
- -------------------------------------------------------------------------------------------------------
Conseco, Inc., 8.125% Sr. Nts., 2/15/03 1,000,000 1,062,477
- -------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/11.75% Sr. Disc. Nts.,
12/15/05(12) 300,000 240,750
- -------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 100,000 103,500
- -------------------------------------------------------------------------------------------------------
EchoStar Communications Corp., 0%/12.875% Sr. Disc. Nts.,
6/1/04(12) 50,000 48,375
- -------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec. Disc.
Nts., 3/15/04(12) 500,000 460,000
- -------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Bonds, Series E, 5/1/11 250,000 286,563
- -------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA de CV,
11.875% Nts., 5/30/01 30,000 32,550
- -------------------------------------------------------------------------------------------------------
Facilicom International, 10.50% Sr Nts., 1/15/08(9) 500,000 522,500
- -------------------------------------------------------------------------------------------------------
First Nationwide Holdings, Inc., 10 625% Sr. Sub. Nts., 10/1/03 700,000 791,000
- -------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds,
Series 1986B, 1/15/16(3) 502,000 532,120
- -------------------------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Sub. Nts., Series B, 7/31/07 1,150,000 1,230,500
- -------------------------------------------------------------------------------------------------------
Fletcher Challenge Finance U.S.A., Inc., 8.05% Debs., 6/15/03(NZD) 35,000 18,411
- -------------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd.:
10% Cv. Unsec. Sub. Nts., 4/30/05(NZD) 35,000 20,386
14.50% Cv. Sub. Nts., 9/30/00(NZD) 35,000 21,489
- -------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 500,000 541,250
- -------------------------------------------------------------------------------------------------------
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02(3) 25,000 26,094
- -------------------------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(12) 500,000 417,500
- -------------------------------------------------------------------------------------------------------
Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05(9) 500,000 510,000
- -------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc., 10.75% Gtd. Sr. Sub.
Nts., 10/15/03 100,000 106,750
- -------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 227,750
- -------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts.,
Series B, 11/1/03(8) 200,000 216,500
- -------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 8.875% Sr. Nts., 7/15/07 1,250,000 1,318,750
- -------------------------------------------------------------------------------------------------------
Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts., 4/15/02 725,000 754,000
- -------------------------------------------------------------------------------------------------------
ICG Holdings, Inc.:
0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06(12) 470,000 383,050
0%/13.50% Sr. Disc. Nts., 9/15/05(12) 250,000 216,250
- -------------------------------------------------------------------------------------------------------
Imax Corp., 10% Sr. Nts., 3/1/01 320,000 336,000
- -------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc., 9 50% Sr. Sub. Nts., 9/15/07 75,000 80,063
- -------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 8.50% Sr. Nts., 1/15/08 500,000 526,250
- -------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05 500,000 557,500
- -------------------------------------------------------------------------------------------------------
J. Ray McDermott SA, 9.375% Sr. Sub. Bonds, 7/15/06 535,000 576,463
</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)
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 $ 500,000 $ 535,000
- -------------------------------------------------------------------------------------------------------
Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04 400,000 398,000
- -------------------------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts., Series B, 3/15/07 1,000,000 1,070,000
- -------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 100,000 109,000
- -------------------------------------------------------------------------------------------------------
Laroche Industries, Inc., 9.50% Sr Sub. Nts., 9/15/07(9) 500,000 496,250
- -------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 997,875
- -------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 0%/10.50% Sr. Disc Nts., 3/1/07(12) 500,000 382,500
- -------------------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Gtd. Sr. Sec. Sub. Nts.,
Series B, 12/30/99 38,000 37,715
- -------------------------------------------------------------------------------------------------------
Millicom International Cellular SA, 0%/13.50% Sr. Disc.
Nts., 6/1/06(12) 750,000 592,500
- -------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority Ship Mtg.
Nts., 6/30/07(9) 500,000 530,000
- -------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,107,086
- -------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec Nts., 10/15/03 183,000 203,130
- -------------------------------------------------------------------------------------------------------
NTL, Inc., 0%/9.75% Sr. Nts., 4/1/08(9) (12) 500,000 327,500
- -------------------------------------------------------------------------------------------------------
Ocwen Financial Corp., 11.875% Nts., 10/1/03 500,000 572,500
- -------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 300,000 331,875
11.625% Sr. Nts., Series A, 8/15/06 400,000 442,500
- -------------------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp., 14% Sr.
Nts., 8/15/04 155,000 181,738
- -------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr Unsec. Sub. Nts., 6/15/07 900,000 956,250
- -------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 1,000,000 1,037,500
- -------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp.:
0%/12.25% Sr. Sub. Disc. Nts., 10/1/03(12) 1,000,000 1,065,000
14% Sr. Sub. Disc. Nts., 11/15/01 500,000 552,500
- -------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 520,031
- -------------------------------------------------------------------------------------------------------
Randall's Food Markets, Inc., 9.375% Sr. Sub. Nts., Series B, 7/1/07 1,600,000 1,708,000
- -------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 9.062% First Priority Sr. Sec.
Nts., 7/15/00(8) 600,000 597,000
- -------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 8.625% Sr. Nts., 2/1/08(9) 500,000 507,500
- -------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts.,
10.085%, 3/15/01(10) 1,000,000 766,250
- -------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 9.50% Gtd Sr. Sub. Nts., 4/15/07 250,000 270,000
- -------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.625% Sr. Unsec. Nts., 8/1/07 550,000 583,000
- -------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Second Priority Sr. Sec.
Debs., 12/1/07 1,300,000 1,439,750
- -------------------------------------------------------------------------------------------------------
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05 575,000 649,750
- -------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05(3) 500,000 511,925
- -------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,121,250
</TABLE>
21 Oppenheimer Multiple Strategies Fund
<PAGE> 22
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(5) SEE NOTE 1
=======================================================================================================
<S> <C> <C>
NON-CONVERTIBLE CORPORATE BONDS AND NOTES (CONTINUED)
Showboat Marina Casino Partnership/Showboat Marina Finance
Corp., 13.50% First Mtg. Nts., Series B, 3/15/03 $ 400,000 $ 473,000
- -------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8.75% Sr. Sub. Nts., 12/15/07 500,000 517,500
9% Gtd. Sr. Sub. Nts., 7/15/07 450,000 471,937
- -------------------------------------------------------------------------------------------------------
Stater Brothers Holdings, Inc., 9% Sr. Unsec. Sub. Nts., 7/1/04 500,000 525,000
- -------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 10.125% Sr. Sub. Nts., 3/15/06 445,000 499,512
- -------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 11.75% Sr Unsec. Sub. Nts., 8/15/06 1,055,000 1,097,200
- -------------------------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 379,310 367,931
9.50% Sr. Sec. Nts., 12/28/08(9) 75,862 73,586
- -------------------------------------------------------------------------------------------------------
Sun Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 7/1/07(9) 525,000 548,625
- -------------------------------------------------------------------------------------------------------
TCI Satellite Entertainment, Inc., 10.875% Sr. Sub. Nts., 2/15/07(9) 295,000 315,650
- -------------------------------------------------------------------------------------------------------
Teleport Communications Group, Inc., 0%/11.125% Sr. Disc. Nts.,
7/1/07(12) 1,000,000 867,500
- -------------------------------------------------------------------------------------------------------
TeleWest Communications plc, 0%/11% Sr. Disc. Debs., 10/1/07(12) 1,000,000 815,000
- -------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,400,000 1,547,211
- -------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc.
Nts., Series B, 12/15/03(12) 1,000,000 912,500
- -------------------------------------------------------------------------------------------------------
TV Azteca SA de CV, 10.50% Gtd. Sr Nts., Series B, 2/15/07 200,000 211,750
- -------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr Nts., 11/1/03(3) 500,000 525,000
- -------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr Sub. Debs., 6/15/07 900,000 922,500
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $53,056,079) 55,913,019
=======================================================================================================
STRUCTURED INSTRUMENTS--0.0%
- -------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale (New York Branch),
Canada Banker's Acceptance Index Yield Nts., 8.405%, 5/22/98 250,000 250,000
- -------------------------------------------------------------------------------------------------------
Morgan Guaranty Trust Co. of New York, Japanese Government
Bond 193 Currency Protected Bank Nts., 8.14%, 4/29/98 75,000 36,975
------------
Total Structured Instruments (Cost $325,000) 286,975
=======================================================================================================
REPURCHASE AGREEMENTS--15.7%
- -------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities, Inc., 5.95%,
dated 3/31/98, to be repurchased at $136,122,494 on 4/1/98,
collateralized by U.S. Treasury Bonds, 7.25%-14%, 11/15/08-11/15/21,
with a value of $139,536,773 (Cost $136,100,000) 136,100,000 136,100,000
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $685,245,568) 100.7% 870,525,635
- -------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.7) (5,655,528)
------------ ------------
NET ASSETS 100.0% $864,870,107
============ ============
</TABLE>
22 Oppenheimer Multiple Strategies Fund
<PAGE> 23
- --------------------------------------------------------------------------------
1. A sufficient amount of liquid assets has been designated to cover outstanding
written 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>
AMR Corp. 8,600 5/98 $120 $107,240 $208,550
- ----------------------------------------------------------------------------------------------------------------------------
AMR Corp. 4,800 8/98 150 20,255 44,400
- ----------------------------------------------------------------------------------------------------------------------------
Alaska Air Group, Inc. 10,000 4/98 60 31,111 1,875
- ----------------------------------------------------------------------------------------------------------------------------
Alaska Air Group, Inc. 18,000 7/98 50 75,457 128,250
- ----------------------------------------------------------------------------------------------------------------------------
Alumax, Inc. 15,600 7/98 40 22,931 105,300
- ----------------------------------------------------------------------------------------------------------------------------
America Online, Inc. 16,000 10/98 70 113,756 170,000
- ----------------------------------------------------------------------------------------------------------------------------
America Online, Inc. 24,000 4/98 45 131,636 555,000
- ----------------------------------------------------------------------------------------------------------------------------
America Online, Inc. 9,000 7/98 55 30,239 141,750
- ----------------------------------------------------------------------------------------------------------------------------
American Express Co. 13,000 4/98 90 67,858 43,875
- ----------------------------------------------------------------------------------------------------------------------------
American Home Products Corp. 11,000 7/98 105 35,419 38,500
- ----------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. 25,000 6/98 35 28,937 39,063
- ----------------------------------------------------------------------------------------------------------------------------
CBS Corp. 32,000 7/98 35 63,038 64,000
- ----------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 23,900 9/98 140 226,325 203,150
- ----------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 13,200 4/98 63 70,552 113,850
- ----------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 10,000 7/98 70 33,449 51,250
- ----------------------------------------------------------------------------------------------------------------------------
Computer Associates
International, Inc. 20,000 8/98 60 71,898 102,500
- ----------------------------------------------------------------------------------------------------------------------------
Costco Cos., Inc. 20,000 4/98 40 86,897 265,000
- ----------------------------------------------------------------------------------------------------------------------------
Costco Cos., Inc. 10,100 4/98 45 23,052 85,850
- ----------------------------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 20,000 9/98 40 36,899 75,000
- ----------------------------------------------------------------------------------------------------------------------------
Dayton Hudson Corp. 5,400 7/98 75 27,512 81,675
- ----------------------------------------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. 23,200 8/98 30 60,202 72,500
- ----------------------------------------------------------------------------------------------------------------------------
Ecolab, Inc. 14,000 4/98 28 21,664 22,750
- ----------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 12,000 6/98 40 40,139 108,000
- ----------------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc. 12,000 9/98 45 40,139 78,000
- ----------------------------------------------------------------------------------------------------------------------------
First Data Corp. 15,000 8/98 35 45,937 28,125
- ----------------------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc. 20,000 7/98 40 56,898 77,500
- ----------------------------------------------------------------------------------------------------------------------------
Genzyme Corp. (General Division) 20,000 4/98 35 61,898 5,000
- ----------------------------------------------------------------------------------------------------------------------------
Global Marine, Inc. 15,600 4/98 35 58,030 975
- ----------------------------------------------------------------------------------------------------------------------------
Gymboree Corp. 17,500 7/98 30 73,848 19,688
- ----------------------------------------------------------------------------------------------------------------------------
Intel Corp. 50,000 10/98 90 229,742 218,750
- ----------------------------------------------------------------------------------------------------------------------------
Intel Corp. 19,500 4/98 115 48,163 2,438
- ----------------------------------------------------------------------------------------------------------------------------
International Game Technology 40,000 4/98 25 63,798 37,500
- ----------------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 10,000 7/98 70 35,949 60,000
- ----------------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 4,600 9/98 115 23,436 32,775
- ----------------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 4,600 9/98 120 34,361 23,000
- ----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 12,000 4/98 80 56,638 61,500
- ----------------------------------------------------------------------------------------------------------------------------
Methode Electronics, Inc., Cl. A 16,000 4/98 30 17,519 1,000
</TABLE>
23 Oppenheimer Multiple Strategies Fund
<PAGE> 24
STATEMENTS OF INVESTMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
1. Outstanding written 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>
Mylan Laboratories, Inc. 26,000 7/98 $ 25 $ 64,218 $ 39,000
- ----------------------------------------------------------------------------------------------------------------------------
Newbridge Networks Corp. 7,000 6/98 65 10,290 438
- ----------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares,
- ----------------------------------------------------------------------------------------------------------------------------
Sponsored ADR 6,000 7/98 85 42,094 153,000
- ----------------------------------------------------------------------------------------------------------------------------
Nokia Corp., A Shares,
Sponsored ADR 6,000 7/98 90 31,456 128,250
- ----------------------------------------------------------------------------------------------------------------------------
Novellus Systems, Inc. 5,600 9/98 50 46,730 28,000
- ----------------------------------------------------------------------------------------------------------------------------
Outback Steakhouse, Inc. 16,200 5/98 35 14,223 70,875
- ----------------------------------------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV 5,400 4/98 100 48,436 338
- ----------------------------------------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV 6,000 7/98 75 35,069 55,500
- ----------------------------------------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc. 14,000 5/98 40 31,954 4,375
- ----------------------------------------------------------------------------------------------------------------------------
Santa Fe International Corp. 13,500 10/98 45 38,406 38,813
- ----------------------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc,
Sponsored ADR, Cl. A 7,200 8/98 75 12,384 12,600
- ----------------------------------------------------------------------------------------------------------------------------
Symantec Corp. 33,400 4/98 25 82,495 96,025
- ----------------------------------------------------------------------------------------------------------------------------
Symantec Corp. 33,400 7/98 30 111,719 89,763
- ----------------------------------------------------------------------------------------------------------------------------
Teradyne, Inc. 6,500 10/98 50 52,616 21,121
- ----------------------------------------------------------------------------------------------------------------------------
Teradyne, Inc. 6,500 7/98 40 45,303 31,688
- ----------------------------------------------------------------------------------------------------------------------------
U S West Communications Group 12,000 4/98 48 24,389 87,000
- ----------------------------------------------------------------------------------------------------------------------------
U S West Communications Group 12,000 7/98 55 25,139 42,000
- ----------------------------------------------------------------------------------------------------------------------------
United Healthcare Corp. 7,600 6/98 60 23,521 54,150
- ----------------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc. 4,000 6/98 75 33,379 30,500
- ----------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 12,000 7/98 85 50,638 274,500
- ----------------------------------------------------------------------------------------------------------------------------
Xerox Corp. 12,000 4/98 90 28,889 198,000
- ----------------------------------------------------------------------------------------------------------------------------
Xilinx, Inc. 11,000 6/98 50 18,919 11,000
------------ ------------
$3,145,089 $4,835,275
============ ============
</TABLE>
24 Oppenheimer Multiple Strategies Fund
<PAGE> 25
- --------------------------------------------------------------------------------
2. Non-income producing security.
3. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
4. Interest or dividend is paid in kind.
5. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
<TABLE>
<S> <C> <C> <C>
ARP --Argentine Peso GBP --British Pound Sterling
AUD --Australian Dollar ITL --Italian Lira
CAD --Canadian Dollar NOK --Norwegian Krone
DEM --German Mark NZD --New Zealand Dollar
DKK --Danish Krone PLZ --Polish Zloty
ESP --Spanish Peseta ZAR --South African Rand
FIM --Finnish Marka
</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 March 31, 1998.
8. Represents the current interest rate for a variable rate security.
9. 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 $4,364,326 or 0.50% of the Fund's net
assets as of March 31, 1998.
10. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
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.
25 Oppenheimer Multiple Strategies Fund
<PAGE> 26
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES March 31, 1998 (Unaudited)
=================================================================================================
<S> <C>
ASSETS
Investments, at value (including repurchase agreement of $136,100,000)
(cost $685,245,568)--see accompanying statement $870,525,635
- -------------------------------------------------------------------------------------------------
Cash 270,288
- -------------------------------------------------------------------------------------------------
Receivables:
Interest, dividends and principal paydowns 5,041,958
Shares of beneficial interest sold 1,328,810
Investments sold 458,262
- -------------------------------------------------------------------------------------------------
Other 40,372
------------
Total assets 877,665,325
=================================================================================================
LIABILITIES
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 4,340
- -------------------------------------------------------------------------------------------------
Options written, at value (premiums received $3,145,089)--
see accompanying statement--Note 6 4,835,275
- -------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,730,155
Dividends 625,430
Shares of beneficial interest redeemed 601,431
Distribution and service plan fees 419,245
Trustees' fees--Note 1 254,213
Transfer and shareholder servicing agent fees 111,147
Shareholder reports 105,879
Other 108,103
------------
Total liabilities 12,795,218
=================================================================================================
NET ASSETS $864,870,107
============
=================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $629,168,940
- -------------------------------------------------------------------------------------------------
Undistributed net investment income 1,902,320
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 50,230,670
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 183,568,177
------------
Net assets $864,870,107
============
</TABLE>
26 Oppenheimer Multiple Strategies Fund
<PAGE> 27
<TABLE>
<CAPTION>
===================================================================================================
NET ASSET VALUE PER SHARE
<S> <C>
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$731,916,122 and 47,183,178 shares of beneficial interest outstanding) $15.51
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.46
- ---------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $78,080,520
and 5,077,729 shares of beneficial interest outstanding) $15.38
- ---------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $54,873,465
and 3,560,473 shares of beneficial interest outstanding) $15.41
</TABLE>
See accompanying Notes to Financial Statements.
27 Oppenheimer Multiple Strategies Fund
<PAGE> 28
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1998 (Unaudited)
========================================================================================================
<S> <C>
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $7,973) $15,075,945
- --------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $39,536) 2,494,833
-----------
Total income 17,570,778
========================================================================================================
EXPENSES
Management fees--Note 4 2,879,443
- --------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 593,564
Class B 352,196
Class C 253,295
- --------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 538,123
- --------------------------------------------------------------------------------------------------------
Shareholder reports 128,029
- --------------------------------------------------------------------------------------------------------
Custodian fees and expenses 71,204
- --------------------------------------------------------------------------------------------------------
Legal and auditing fees 56,642
- --------------------------------------------------------------------------------------------------------
Registration and filing fees 21,218
- --------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 19,968
- --------------------------------------------------------------------------------------------------------
Insurance expenses 9,046
- --------------------------------------------------------------------------------------------------------
Other 20,331
---------
Total expenses 4,943,059
========================================================================================================
NET INVESTMENT INCOME 12,627,719
========================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (including premiums on options exercised) 63,743,600
Closing and expiration of options written 73,017
Foreign currency transactions (1,510,973)
-----------
Net realized gain 62,305,644
- --------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (23,070,620)
Translation of assets and liabilities denominated in foreign currencies (2,850,547)
-----------
Net change (25,921,167)
-----------
Net realized and unrealized gain 36,384,477
========================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $49,012,196
===========
</TABLE>
See accompanying Notes to Financial Statements.
28 Oppenheimer Multiple Strategies Fund
<PAGE> 29
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
===============================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 12,627,719 $ 14,511,782
- ---------------------------------------------------------------------------------------------------------------
Net realized gain 62,305,644 54,497,060
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (25,921,167) 37,676,936
------------- ------------
Net increase in net assets resulting from operations 49,012,196 106,685,778
===============================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (10,821,796) (12,706,372)
Class B (812,767) (600,770)
Class C (579,134) (936,710)
- ---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (55,838,888) (14,621,660)
Class B (5,628,537) (435,849)
Class C (4,059,165) (1,359,035)
===============================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 44,157,821 382,443,207
Class B 12,471,536 56,924,508
Class C 7,043,466 23,090,531
===============================================================================================================
NET ASSETS
Total increase 34,944,732 538,483,628
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 829,925,375 291,441,747
------------ ------------
End of period (including undistributed net investment
income of $1,902,320 and $1,488,298, respectively) $864,870,107 $829,925,375
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
29 Oppenheimer Multiple Strategies Fund
<PAGE> 30
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 1998 YEAR ENDED SEPTEMBER 30, DEC. 31,
(UNAUDITED) 1997 1996(2) 1995
=========================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $16.17 $14.09 $13.07 $11.52
- ---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .24 .50 .49 .52
Net realized and unrealized gain (loss) .62 2.88 .96 2.08
------ ------ ------ ------
Total income (loss) from
investment operations .86 3.38 1.45 2.60
- ---------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.24) (.51) (.43) (.49)
Distributions from net realized gain (1.28) (.79) -- (.56)
------ ------ ------ ------
Total dividends and distributions
to shareholders (1.52) (1.30) (.43) (1.05)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.51 $16.17 $14.09 $13.07
====== ====== ====== ======
=========================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 6.07% 25.46% 11.22% 22.79%
=========================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $731,916 $712,470 $264,359 $251,353
- ---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $701,193 $395,436 $256,765 $249,660
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.20%(5) 3.30% 4.73%(5) 3.97%
Expenses 1.08%(5) 1.16% 1.21%(5) 1.15%
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 30.3% 51.0% 31.7% 28.5%
Average brokerage commission rate(7) $0.0171 $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.
30 Oppenheimer Multiple Strategies Fund
<PAGE> 31
<TABLE>
<CAPTION>
CLASS B
------------------- -------------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, 1998 YEAR ENDED SEPTEMBER 30, DEC. 31
1994 1993 (UNAUDITED) 1997 1996(2) 1995(3)
==============================================================================
<C> <C> <C> <C> <C> <C>
$13.05 $11.63 $16.04 $14.01 $13.03 $13.28
- ------------------------------------------------------------------------------
.54 .44 .18 .45 .41 .17
(.75) 1.43 .61 2.78 .93 .41
------ ------ ------ ------ ------ ------
(.21) 1.87 .79 3.23 1.34 .58
- ------------------------------------------------------------------------------
(.53) (.44) (.17) (.41) (.36) (.27)
(.79) (.01) (1.28) (.79) -- (.56)
------ ------ ------ ------ ------ ------
(1.32) (.45) (1.45) (1.20) (.36) (.83)
- ------------------------------------------------------------------------------
$11.52 $13.05 $15.38 $16.04 $14.01 $13.03
====== ====== ====== ====== ====== ======
==============================================================================
(1.59)% 16.30% 5.67% 24.34% 10.37% 4.44%
==============================================================================
$237,771 $277,914 $78,081 $67,916 $5,996 $1,265
- ------------------------------------------------------------------------------
$260,767 $272,303 $70,690 $25,113 $3,546 $ 520
- ------------------------------------------------------------------------------
4.10% 3.58% 2.38%(5) 2.26% 3.69%(5) 2.62%(5)
1.09% 1.14% 1.91%(5) 1.96% 2.12%(5) 2.27%(5)
- ------------------------------------------------------------------------------
31.5% 32.7% 30.3% 51.0% 31.7% 28.5%
-- -- $0.0171 $0.0244 $0.0336 $0.0350
</TABLE>
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1998 were $217,200,103 and $261,789,588, respectively.
31 Oppenheimer Multiple Strategies Fund
<PAGE> 32
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED
1998 SEPTEMBER 30, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1997 1996(2) 1995 1994 1993(1)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $16.07 $14.02 $13.01 $11.49 $13.05 $12.86
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .18 .41 .40 .40 .44 (.97)
Net realized and unrealized gain (loss) .61 2.83 .96 2.07 (.77) 1.29
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .79 3.24 1.36 2.47 (.33) .32
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.17) (.40) (.35) (.39) (.44) (.12)
Distributions from net realized gain (1.28) (.79) -- (.56) (.79) (.01)
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (1.45) (1.19) (.35) (.95) (1.23) (.13)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.41 $16.07 $14.02 $13.01 $11.49 $13.05
====== ====== ====== ====== ====== ======
================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 5.65% 24.42% 10.55% 21.69% (2.50)% 2.51%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $54,873 $49,539 $21,087 $15,405 $9,182 $396
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $50,828 $33,813 $17,898 $11,827 $5,601 $194
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.38%(5) 2.61% 3.84%(5) 3.08% 3.30% 2.19%(5)
Expenses 1.91%(5) 1.97% 2.07%(5) 1.99% 2.00% 2.50%(5)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 30.3% 51.0% 31.7% 28.5% 31.5% 32.7%
Average brokerage commission rate(7) $0.0171 $0.0244 $0.0336 $0.0350 --- ---
</TABLE>
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.
32 Oppenheimer Multiple Strategies Fund
<PAGE> 33
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
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 consistent with preservation of principal. 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.
- --------------------------------------------------------------------------------
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.
33 Oppenheimer Multiple Strategies Fund
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FOREIGN CURRENCY TRANSLATION (CONTINUED)
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 six months
ended March 31, 1998, a credit of $13,259 was made for the Fund's projected
benefit obligations, and payments of $9,051 were made to retired trustees,
resulting in an accumulated liability of $239,885 at March 31, 1998.
34 Oppenheimer Multiple Strategies Fund
<PAGE> 35
================================================================================
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 paydown gains and losses and 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.
- --------------------------------------------------------------------------------
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.
35 Oppenheimer Multiple Strategies Fund
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
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>
SIX MONTHS ENDED MARCH 31, 1998 YEAR ENDED SEPTEMBER 30, 1997
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,530,735 $ 23,540,651 2,219,229 $ 32,694,783
Dividends reinvested 4,223,147 61,001,078 1,707,937 24,639,919
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 (2,630,059) (40,383,908) (3,316,554) (49,473,845)
------------- ------------- ------------- -------------
Net increase 3,123,823 $ 44,157,821 25,302,921 $ 382,443,207
============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------
Class B:
Sold 913,726 $ 13,869,746 1,162,177 $ 17,259,750
Dividends reinvested 396,693 5,677,147 60,758 888,166
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 (467,328) (7,075,357) (408,734) (6,257,638)
------------- ------------- ------------- -------------
Net increase 843,091 $ 12,471,536 3,806,508 $ 56,924,508
============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------
Class C:
Sold 478,949 $ 7,320,731 1,211,432 $ 17,627,875
Dividends reinvested 301,280 4,320,397 151,633 2,159,025
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 (301,839) (4,597,662) (381,455) (5,694,022)
------------- ------------- ------------- -------------
Net increase 478,390 $ 7,043,466 1,578,270 $ 23,090,531
============= ============= ============= =============
</TABLE>
36 Oppenheimer Multiple Strategies Fund
<PAGE> 37
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS AND OPTIONS WRITTEN
At March 31, 1998, net unrealized appreciation on investments and options
written of $183,589,881 was composed of gross appreciation of $195,667,511, and
gross depreciation of $12,077,630.
================================================================================
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, 0.60% of the next $700
million, and 0.58% of average annual net assets in excess of $1.5 billion. The
agreement was amended per resolutions adopted by the Board of Trustees on
December 11, 1997 to add the final breakpoint of 0.58%on average annual net
assets in excess of $1.5 billion.
For the six months ended March 31, 1998, commissions
(sales charges paid by investors) on sales of Class A shares totaled $498,193,
of which $143,983 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 $458,523 and $68,051, respectively, of
which $19,761 and $1,864, respectively, was paid to an affiliated broker/dealer.
During the six months ended March 31, 1998, OFDI received contingent deferred
sales charges of $72,973 and $4,065, 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 maintenance of
accounts of their customers that hold Class A shares. During the six months
ended March 31, 1998, OFDI paid $41,660 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
37 Oppenheimer Multiple Strategies Fund
<PAGE> 38
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its 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
for it's services in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and C shares. Each fee is computed on
the average annual net assets of Class B or Class C shares, determined as of the
close of each regular business day. During the six months ended March 31, 1998,
OFDI paid $3,051 and $6,800, respectively, to an affiliated broker/dealer as
compensation for Class B and Class C personal service and maintenance expenses
and retained $296,955 and $112,092, 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 March 31, 1998, OFDI had
incurred excess distribution and servicing costs of $2,686,743 for Class B and
$523,352 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.
38 Oppenheimer Multiple Strategies Fund
<PAGE> 39
================================================================================
At March 31, 1998, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
CONTRACT AMOUNT VALUATION AS OF UNREALIZED
EXPIRATION DATE (000S) MARCH 31, 1998 DEPRECIATION
- -------------------------------------------------------------------------------------------------------------
CONTRACTS TO SELL
- -----------------
<S> <C> <C> <C> <C>
Indonesian Rupiah (IDR) 4/1/98 1,901,169 IDR $219,788 $2,586
Indonesian Rupiah (IDR) 4/2/98 861,940 IDR 99,646 1,754
------
Total Unrealized Depreciation $4,340
======
</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.
39 Oppenheimer Multiple Strategies Fund
<PAGE> 40
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
6. OPTION ACTIVITY (CONTINUED)
Written option activity for the six months ended March 31, 1998 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
------------------------------
NUMBER AMOUNT
OF OPTIONS OF PREMIUMS
- --------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at September 30, 1997 10,978 $ 2,931,225
Options written 8,581 3,079,649
Options closed or expired (6,227) (1,812,725)
Options exercised (4,543) (1,053,060)
------ -----------
Options outstanding at March 31, 1998 8,789 $ 3,145,089
====== ===========
</TABLE>
================================================================================
7. ILLIQUID AND RESTRICTED SECURITIES
At March 31, 1998, 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 March 31, 1998 was $5,276,703, which represents
0.61% 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 June 17, 1997. The Fund issued 21,161,450, 233,975 and
246,193 shares of beneficial interest for Class A, Class B, and Class C,
respectively, value at $321,019,208, $3,521,330, and $5,285,050, 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.
40 Oppenheimer Multiple Strategies Fund
<PAGE> 41
================================================================================
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 $53,563,144,
$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 Oppenheimer funds 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 six
months ended March 31, 1998.
41 Oppenheimer Multiple Strategies Fund
<PAGE> 42
OPPENHEIMER MULTIPLE STRATEGIES FUND
================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of
Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have
been taken from the records of the Fund without
examination of the independent auditors. This
is a copy of a report to shareholders of
Oppenheimer Multiple Strategies Fund. This
report must be preceded or accompanied by a
Prospectus of Oppenheimer Multiple Strategies
Fund. For material information concerning the
Fund, see the Prospectus. Shares of Oppenheimer
funds are not deposits or obligations of any
bank, are not guaranteed by any bank, and are
not insured by the FDIC or any other agency,
and involve investment risks, including
possible loss of the principal amount invested.
42 Oppenheimer Multiple Strategies Fund
<PAGE> 43
OPPENHEIMERFUNDS FAMILY
<TABLE>
<S> <C> <C>
====================================================================================================================================
REAL ASSET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
====================================================================================================================================
GLOBAL STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth &Income Fund
Company Fund
====================================================================================================================================
STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
====================================================================================================================================
STOCK & BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund(1) Convertible Securities Fund(2)
Value Fund Equity Income Fund
====================================================================================================================================
TAXABLE BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
====================================================================================================================================
MUNICIPAL BOND 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 Fund(3) Intermediate Municipal Fund Municipal Fund
====================================================================================================================================
MONEY MARKET FUNDS(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 5/18/98 the Fund's name was changed from "Quest Growth & Income
Value Fund."
2. On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds seek to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
43 Oppenheimer Multiple Strategies Fund
<PAGE> 44
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- --------------------------------------------------------------------------------
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When you want to make a transaction, you can do it easily by calling
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You can count on us whenever you need assistance. That's why the
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So call us today, or visit us at our website at
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[OPPENHEIMERFUNDS LOGO]
RS0240.001.0398 May 29, 1998
