<PAGE>
================================
Annual Report September 30, 1998
================================
O P P E N H E I M E R
Multiple
Strategies Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Managers
9 Fund Performance
- -----------------------------
13 Financial
Statements
44 Independent
Auditors' Report
- -----------------------------
45 Federal
Income Tax
Information
46 Officers and
Trustees
48 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o Sharp declines in global markets caused the Fund's performance to suffer.
However, our broad diversification limited losses and provided investors with
current income in a very challenging environment.
o Weakness in a wide range of equity markets enabled the Fund to shift assets to
high quality companies that were available at relatively low prices.
o U.S. Treasury securities delivered a combination of competitive yields and
capital appreciation.
Avg Annual Total Returns
For the 1-Year Period Ended 9/30/98
Class A
Without With
Sales Chg./1/ Sales Chg./2/
- -----------------------------
- -4.71% -10.19%
- -----------------------------
Class B
Without With
Sales Chg./1/ Sales Chg./2/
- -----------------------------
- -5.49% -9.72%
- -----------------------------
Class C
Without With
Sales Chg./1/ Sales Chg./2/
- -----------------------------
- -5.43% -6.28%
- -----------------------------
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. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes. For updates on the Fund's performance, please contact your
financial advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
1. Includes changes in net asset value per share without deducting any sales
charges.
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%. Class B and
C shares are subject to a 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
2 Oppenheimer Multiple Strategies Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Multiple Strategies Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July,the excitement surrounding the
stock market's continued ascent to new record highs overshadowed the favorable
economic environment that existed for bonds:low inflation and declining interest
rates. However, since late summer, amid heightened global concern, stocks
declined sharply. Yet, despite continued economic concerns worldwide, the bond
market appeared ready to benefit.
Why have the stock and bond markets responded differently? The financial
crises in Asia and Russia have weakened the earnings of some large
U.S.corporations and have contributed to a slowdown in U.S. economic growth.
Although this slowing economic growth has negatively impacted stocks, it created
a positive environment for bonds. That's because slowing economic growth
generally means fewer inflationary pressures and, as we've recently seen,
interest rates also tend to decline.
What should you do during this period of relative uncertainty? If you have
well-defined, long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged by
our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our
view, having a well-defined set of financial goals, a disciplined long-term
strategy and the help of experienced investment professionals are all
fundamental parts of The Right Way to Invest.
Sincerely,
/s/ Bridget A.Macaskill
Bridget A.Macaskill
October 21, 1998
3 Oppenheimer Multiple Strategies Fund
<PAGE>
"We also found
selected
opportunities
in emerging
markets."
An interview with your Fund's managers
- -------------------------------------------------------------------------------
How did the Fund perform during the last twelve months?
Sharp declines in many of the world's markets hurt the performance of
Oppenheimer Multiple Strategies Fund during the one-year period ended September
30, 1998. Nevertheless, our strategy of broad diversification across asset
classes and investment styles enabled us to limit our losses and provide
investors with current income while taking advantage of opportunities that arose
in this very challenging environment.
What made this such a challenging period?
Asian markets experienced economic difficulties throughout the year. With no
resolution to Asia's problems in sight, and with Russia facing an economic and
political crisis of its own, investors began to lose confidence in emerging
markets throughout the world. As a result, emerging stock and bond markets
suffered sharp losses. The impact was felt in developed markets as well. Many
U.S. and European multinational companies saw profits decline as foreign demand
for products weakened. Financial institutions with exposure to emerging markets
suffered from concerns over asset quality.
Within the United States, corporate profit growth slowed and average stock
prices fell sharply. Much of the equity market's remaining strength became
concentrated among the largest and most visible companies, though even that
segment showed increasing weakness and volatility. On the other hand, the U.S.
bond market responded favorably to an environment of slowing growth and
continuing low inflation. Long-term U.S. Treasury bonds performed well
throughout the period, providing investors with a combination of competitive
yields and capital appreciation.
4 Oppenheimer Multiple Strategies Fund
<PAGE>
[PHOTO]
Portfolio Management Team (l to r)1
Mike Levine,
Richard Rubinstein,
David Negri
How did the Fund allocate its assets during the period?
As of September 30, 1998, the Fund's invested assets were allocated 51% to
stocks, 43% to bonds and 6% to cash. Not surprisingly, considering its
diversified nature, the Fund shared in both the strengths and weaknesses of the
financial markets. By maintaining the Fund's exposure to a wide range of U.S.and
global equities and bonds, we enabled shareholders to participate in attractive
investment opportunities, while not putting too many eggs in any one basket.
Looking ahead, we generally strive to maintain about an equal mix of
equities, fixed-income securities and cash. We believe this allocation will
enable us to produce attractive returns with low risks over a full market cycle.
We also believe this allocation will produce a portfolio that can perform well
in many different market environments.
What actions did you take in response to the equity market's volatility?
Because we were concerned about relatively high valuations in U.S. equities, we
sold some of our most successful holdings during the period to lock in profits.
We reallocated those assets to cash and the fixed-income markets. However, many
of our remaining positions suffered as equity markets weakened. For example, the
value of our technology holdings fell as a result of the crisis in Asia, a major
market for technology products.
1. George Evans (not shown), Mike Levine and David Negri joined the Fund as
Portfolio Managers in August, 1998.
5 Oppenheimer Multiple Strategies Fund
<PAGE>
=================================
Avg Annual Total Returns
For the Periods Ended 9/30/98 /2/
=================================
Class A
1 year 5 year 10 year
=================================
- -10.19% 9.45% 10.19%
=================================
Class B
Since
1 year 5 year Inception
=================================
- -9.72% N/A 9.53%
=================================
Class C
Since
1 year 5 year Inception
=================================
- -6.28% N/A 9.89%
=================================
An interview with your Fund's managers
- -------------------------------------------------------------------------------
Many of our financial stocks were negatively affected by concerns over their
exposure to emerging market loans. Oil service stocks dropped in the face of
slackening global energy demand and lower oil prices.
We responded by focusing on high quality companies in areas that we believe
continue to hold significant potential for future growth. With stocks beaten
down throughout these sectors, many of the best companies in their respective
industries were available at prices we believed to be excellent values.
Therefore, we took the opportunity to trade up to companies we consider likely
to be among the first to rebound when conditions again become favorable.
We also found selected opportunities in emerging markets. Stock prices in
many of these markets fell 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 cautiously
explored these markets for such opportunities,and made small investments in a
few companies that met our criteria.
How did you manage the fixed-income portion of the Fund during the period?
Our approach to fixed-income investing is to diversify the Fund's assets among
U.S. Treasury securities, high-yield
2. 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 lower prior to 4/1/91, so actual performance
may have been higher. 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. Class B and C shares are
subject to an annual 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
6 Oppenheimer Multiple Strategies Fund
<PAGE>
corporate bonds and foreign bonds.This approach enables us to capture extra
yield while reducing risks. That's because these three bond markets generally
react differently to changing environments. For example, within the U.S.
Treasury market, the greatest risk is maturity; within foreign markets, the
major risk is currency; and for high-yield corporate bonds, the greatest risk is
credit. By participating in all three markets, we've been able to earn
incrementally higher yields because we've always enjoyed some exposure to
whichever areas are performing best under existing conditions.
As we mentioned earlier, the Fund's U.S. Treasuries holdings performed
particularly well this year. We also took advantage of volatility in overseas
fixed-income markets, particularly in Latin America.During the first half of
this fiscal year, we purchased Brady Bonds, which are U.S.dollar-denominated
bonds issued by Latin American governments and secured by the U.S.Federal
Reserve Bank. As the value of those bonds increased, we took the opportunity to
sell many. Now, the Asian crisis is creating new values in those same markets.
We are making opportunistic reinvestments in Brazil and certain other Latin
American countries. We believe these countries are likely to withstand their
current economic difficulties and eventually thrive because of their abundant
resources, growing populations and improving governments.
What is your outlook for the future?
We remain cautiously optimistic about the market's prospects over the coming
months. While many domestic equities still appear somewhat overvalued and
earnings growth seems to be slowing, market fundamentals, such as consumer
spending and money flows, remain strong.
7 Oppenheimer Multiple Strategies Fund
<PAGE>
Asset Allocation /3/
[PIE CHART]
* Stocks 50.9%
* Bonds 42.7
* Cash Equivalents 6.4
And although Asian economies and Russia continue to struggle, the rest of the
world has thus far weathered the situation fairly well. In Europe, companies are
beginning to benefit from the management changes and corporate restructurings
that helped U.S. companies become more efficient over the past decade. Latin
America has also learned some difficult lessons and appears to be on track
toward better economic growth.
The last twelve months of volatility and uncertainty illustrate the
importance of a broad-based investment strategy. We remain dedicated to our
highly diversified approach as we face the challenges ahead, searching for
attractive investments throughout the world. It's a strategy that in the past
has generally served our shareholders well...and that we believe continues to
make Oppenheimer Multiple Strategies Fund part of The Right Way to Invest.
Top 10 Stock Holdings /3/
- --------------------------------------------------------------------------------
BankAmerica Corp. (New) 1.7%
- --------------------------------------------------------------------------------
International Business Machines Corp. 1.7
- --------------------------------------------------------------------------------
Intel Corp. 1.6
- --------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 1.5
- --------------------------------------------------------------------------------
Philip Morris Cos., Inc. 0.8
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 0.7
- --------------------------------------------------------------------------------
Novartis AG 0.7
- --------------------------------------------------------------------------------
American Home Products Corp. 0.6
- --------------------------------------------------------------------------------
Groupe Danone 0.6
- --------------------------------------------------------------------------------
Xerox Corp. 0.6
- --------------------------------------------------------------------------------
3. Portfolio is subject to change. Percentages are as of September 30, 1998
and are based on total market value of investments.
8 Oppenheimer Multiple Strategies Fund
<PAGE>
Fund performance
- -------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion by the Manager of the Fund's
performance during its fiscal year ended September 30,1998, followed by a
graphical comparison of the Fund's performance to two appropriate broad-based
market indices.
. Management's Discussion of Performance. During the past fiscal year that
ended September 30, 1998, weakness in Asian economies and pressures on corporate
earnings introduced greater volatility into equities markets, causing the Fund's
overall performance to suffer. However, the Fund's losses were limited by strong
bond performance, especially in U.S. Treasury securities, driven by low rates of
inflation. The Fund also realized profits from its investments in U.S. corporate
and Latin American bonds. We found opportunities to take profits in some of the
Fund's best-performing stock holdings. Falling prices in certain sectors,
including technology, finance and oil service, provided opportunities to shift
assets to higher quality holdings within the same sector. The Fund's portfolio
and our management strategies are subject to change.
. Comparing the Fund's Performance to the Market. The graphs that follow
show the performance of a hypothetical $10,000 investment in Class A, Class B
and Class C shares of the Fund held until September 30, 1998. In the case of
Class A shares, performance is measured over a 10-year period. In the case of
Class B shares, performance is measured from inception of the Class on August
29, 1995. In the case of Class C shares, performance is measured from inception
of the Class on December 1, 1993. The Fund's performance reflects the deduction
of the 5.75% maximum initial sales charge on Class A shares, the 5% (1-year) and
3% (since inception) applicable contingent deferred sales charge for Class B,
and the 1% (1-year) contingent deferred sales charge for Class C shares. The
graphs assume that all dividends and capital gains distributions were reinvested
in additional shares.
Because the Fund invests in a variety of equity and fixed income
securities, the Fund's performance is compared to the performance of two
indices: (i) the Standard & Poor's (S&P) 500 Index, a broad-based index of
equity securities widely regarded as a general measure of the performance of the
U.S. equity securities market; and (ii) the Lehman Brothers Aggregate Bond
Index, an unmanaged index of U.S. Government Treasury and agency issues,
investment grade corporate bond issues and fixed rate mortgage-backed
securities. That index is widely regarded as a measure of the performance of the
domestic debt securities market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities or
countries in the indices.
9 Oppenheimer Multiple Strategies Fund
<PAGE>
Fund performance
- -------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class A), S&P 500 Index and
Lehman Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Lehman
Multiple Brothers
Strategies Aggregate
Fund S&P Bond
Class A 500 Index Index
----------- --------- ---------
<S> <C> <C> <C>
12.31.87 9,425 10,000 10,000
12.31.88 10,921 11,656 10,789
12.31.89 12,909 15,343 12,356
12.31.90 13,030 14,866 13,463
12.31.91 14,941 19,386 15,618
12.31.92 16,067 20,861 16,774
12.31.93 18,684 22,958 18,409
12.31.94 18,388 23,261 17,872
12.31.95 22,580 31,991 21,174
9.30.96/1/ 25,113 36,308 21,304
9.30.97 31,507 50,985 23,373
9.30.98 30,023 55,603 26,064
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 9/30/98 /2/
1 Year -10.19% 5 Year 9.45% 10 Year 10.19%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class B), S&P 500 Index and
Lehman Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Lehman
Multiple Brothers
Strategies Aggregate
Fund S&P Bond
Class B 500 Index Index
----------- --------- ---------
<S> <C> <C> <C>
8/29/95 10,000 10,000 10,000
12/31/95 10,444 11,049 10,528
9/30/96/1/ 11,527 12,540 10,592
9/30/97 14,331 17,609 11,621
9/30/98 13,244 19,204 12,959
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 9/30/98 /3/
1 Year -9.72% Life 9.53%
10 Oppenheimer Multiple Strategies Fund
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class C), S&P 500 Index and
Lehman Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Lehman
Multiple Brothers
Strategies Aggregate
Fund S&P Bond
Class C 500 Index Index
----------- --------- ---------
<S> <C> <C> <C>
12/1/93 10,000 10,000 10,000
12/31/93 10,218 10,121 10,054
12/31/94 9,963 10,254 9,761
12/31/95 12,124 14,103 11,564
9/30/96/1/ 13,403 16,006 11,635
9/30/97 16,676 22,476 12,765
9/30/98 15,771 24,512 14,235
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 9/30/98 /4/
1 Year -6.28% Life 9.89%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for both indices in the graphs for Class B begins on
8/31/95 and Class C begins on 11/30/93.
1. The Fund's fiscal year has changed from 12/31 to 9/30.
2. The inception date of the Fund's Class A shares was 4/24/87. The average
annual total returns are shown net of the applicable 5.75% maximum initial sales
charge.
3. Class B shares of the Fund were first publicly offered on 8/29/95. The
average annual total returns are shown net of the applicable 5% and 3%
contingent deferred sales charges, respectively, for the one-year period and the
life of the class. The ending account value in the graph is net of the
applicable 3% contingent deferred sales charge.
4. Class C shares of the Fund were first publicly offered on 12/1/93. The
average annual total returns are shown net of the applicable 1% contingent
deferred sales charge for the one-year period. Past performance is not
predictive of future performance. Graphs are not drawn to the same scale.
11 Oppenheimer Multiple Strategies Fund
<PAGE>
Financials
----------------------------------------
12 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments September 30, 1998
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================
<S> <C> <C>
Common Stocks--50.2%
- --------------------------------------------------------------------------------
Basic Materials--2.1%
- --------------------------------------------------------------------------------
Chemicals--1.4%
Bayer AG, Sponsored ADR 115,000 $ 4,341,687
- --------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 36,000 2,020,500
- --------------------------------------------------------------------------------
Potash Corp. of Saskatchewan,Inc. 80,000 4,210,000
-----------
10,572,187
- --------------------------------------------------------------------------------
Metals--0.2%
De Beers Consolidated Mines Ltd., ADR 126,000 1,582,875
- --------------------------------------------------------------------------------
Paper--0.5%
MacMillan Bloedel Ltd. 244,561 2,290,910
- --------------------------------------------------------------------------------
Wausau-Mosinee Paper Corp. 124,000 1,782,500
-----------
4,073,410
- --------------------------------------------------------------------------------
Consumer Cyclicals--7.9%
- --------------------------------------------------------------------------------
Autos & Housing--0.9%
Dana Corp. 55,000 2,052,187
- --------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 679,270 1,483,701
- --------------------------------------------------------------------------------
Lear Corp.(1) 70,000 3,062,500
-----------
6,598,388
- --------------------------------------------------------------------------------
Leisure & Entertainment--4.1%
Alaska Air Group,Inc.(1)(2) 37,500 1,277,344
- --------------------------------------------------------------------------------
AMR Corp.(1) 42,500 2,356,094
- --------------------------------------------------------------------------------
Berjaya Sports Toto Berhad(3) 410,000 258,947
- --------------------------------------------------------------------------------
Brunswick Corp. 90,000 1,164,375
- --------------------------------------------------------------------------------
Callaway Golf Co. 120,000 1,297,500
- --------------------------------------------------------------------------------
Carnival Corp. 10,000 318,125
- --------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 96,000 2,184,000
- --------------------------------------------------------------------------------
Host Marriott Corp.(1) 175,000 2,220,312
- --------------------------------------------------------------------------------
International Game Technology(2) 165,000 3,062,812
- --------------------------------------------------------------------------------
Mattel,Inc. 1 42
- --------------------------------------------------------------------------------
Mirage Resorts, Inc.(1) 230,000 3,852,500
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 53,500 5,030,685
- --------------------------------------------------------------------------------
Outback Steakhouse, Inc.(1)(2) 10,900 287,487
- --------------------------------------------------------------------------------
Shimano, Inc. 165,000 3,733,797
- --------------------------------------------------------------------------------
Time Warner, Inc. 36,500 3,196,031
-----------
30,240,051
</TABLE>
13 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
<S> <C> <C>
Media--1.2%
CBS Corp.(2) 181,700 $ 4,406,225
- --------------------------------------------------------------------------------
MediaOne Group, Inc.(1) 76,000 3,377,250
- --------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 3,306,000 1,301,323
-----------
9,084,798
- --------------------------------------------------------------------------------
Retail: General--0.8%
Dayton Hudson Corp. 38,200 1,365,650
- --------------------------------------------------------------------------------
Federated Department Stores, Inc.(1)(2) 60,000 2,182,500
- --------------------------------------------------------------------------------
Neiman Marcus Group, Inc.(1) 95,000 2,054,375
-----------
5,602,525
- --------------------------------------------------------------------------------
Retail: Specialty--0.9%
AutoZone, Inc.(1) 105,000 2,585,625
- --------------------------------------------------------------------------------
General Nutrition Cos., Inc.(1) 138,000 1,492,125
- --------------------------------------------------------------------------------
Gymboree Corp.(1) 40,000 300,000
- --------------------------------------------------------------------------------
Petco Animal Supplies, Inc.(1)(2) 90,000 810,000
- --------------------------------------------------------------------------------
Saks, Inc.(1) 76,260 1,711,084
-----------
6,898,834
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--8.5%
- --------------------------------------------------------------------------------
Beverages--0.5%
Coca-Cola Beverages plc(1) 55,000 125,713
- --------------------------------------------------------------------------------
Diageo plc 240,840 2,218,320
- --------------------------------------------------------------------------------
Whitman Corp. 93,000 1,482,187
-----------
3,826,220
- --------------------------------------------------------------------------------
Food--1.0%
Groupe Danone 16,948 4,454,111
- --------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 33,500 3,332,305
-----------
7,786,416
- --------------------------------------------------------------------------------
Healthcare/Drugs--4.2%
Abbott Laboratories 82,000 3,561,875
- --------------------------------------------------------------------------------
American Home Products Corp. 88,000 4,609,000
- --------------------------------------------------------------------------------
Astra AB Free, Series A 180,000 3,078,679
- --------------------------------------------------------------------------------
Biogen, Inc.(1) 15,000 987,187
- --------------------------------------------------------------------------------
Centocor, Inc.(1) 77,500 3,070,937
- --------------------------------------------------------------------------------
Genzyme Corp.(General Division)(1)(2) 55,000 1,986,875
- --------------------------------------------------------------------------------
Johnson & Johnson 41,000 3,208,250
- --------------------------------------------------------------------------------
Mylan Laboratories, Inc. 89,000 2,625,500
- --------------------------------------------------------------------------------
Novartis AG 3,000 4,808,887
- --------------------------------------------------------------------------------
SmithKline Beecham plc, Sponsored ADR, Cl.A 62,000 3,394,500
-----------
31,331,690
</TABLE>
14 Oppenheimer Multiple Strategies Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ---------------------------------------------------------------------------------
<S> <C> <C>
Healthcare/Supplies & Services--0.7%
Acuson Corp.(1) 92,000 1,569,750
- --------------------------------------------------------------------------------
Alternative Living Services, Inc.(1) 73,000 1,952,750
- --------------------------------------------------------------------------------
United Healthcare Corp.(2) 45,400 1,589,000
----------
5,111,500
- --------------------------------------------------------------------------------
Household Goods--0.7%
Fort James Corp. 83,500 2,739,844
- --------------------------------------------------------------------------------
Wella AG 3,585 2,155,692
- --------------------------------------------------------------------------------
Wella AG, Preference 350 254,016
----------
5,149,552
- --------------------------------------------------------------------------------
Tobacco--1.4%
Imperial Tobacco Group plc 400,000 4,231,513
- --------------------------------------------------------------------------------
Philip Morris Cos., Inc. 135,000 6,218,437
----------
10,449,950
- --------------------------------------------------------------------------------
Energy--3.6%
- --------------------------------------------------------------------------------
Energy Services & Producers--1.6%
Baker Hughes, Inc.(2) 40,500 847,969
- --------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR 50,000 1,981,250
- --------------------------------------------------------------------------------
Input/Output, Inc.(1)(2) 223,000 1,770,062
- --------------------------------------------------------------------------------
Santa Fe International Corp.(2) 137,000 2,106,375
- --------------------------------------------------------------------------------
Schlumberger Ltd. 40,000 2,012,500
- --------------------------------------------------------------------------------
Transocean Offshore, Inc. 85,000 2,948,437
----------
11,666,593
- --------------------------------------------------------------------------------
Oil-Integrated--2.0%
Enron Corp. 42,000 2,218,125
- --------------------------------------------------------------------------------
Kerr-McGee Corp. 47,000 2,138,500
- --------------------------------------------------------------------------------
Petroleo Brasileiro SA, Preference 3,330,000 341,286
- --------------------------------------------------------------------------------
Talisman Energy, Inc.(1) 100,090 2,140,858
- --------------------------------------------------------------------------------
Total SA, Sponsored ADR 38,200 2,399,437
- --------------------------------------------------------------------------------
Unocal Corp. 105,000 3,806,250
- --------------------------------------------------------------------------------
YPF SA, Cl.D, ADR 75,000 1,950,000
----------
14,994,456
- --------------------------------------------------------------------------------
Financial--12.2%
- --------------------------------------------------------------------------------
Banks--6.0%
ABN Amro Holding NV 77,000 1,311,193
- --------------------------------------------------------------------------------
Banc One Corp. 29,000 1,236,125
- --------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 150,000 975,115
- --------------------------------------------------------------------------------
BankAmerica Corp.(New) 235,000 12,572,500
</TABLE>
15 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Shares Market Value
See Note 1
- ------------------------------------------------------------------------------
<S> <C> <C>
Banks (continued)
Chase Manhattan Corp. (New) 255,000 $11,028,750
- ------------------------------------------------------------------------------
Credit Suisse Group 5,225 577,489
- ------------------------------------------------------------------------------
Credito Italiano SpA 688,800 2,867,829
- ------------------------------------------------------------------------------
Deutsche Bank AG 11,400 605,006
- ------------------------------------------------------------------------------
First Chicago NBD Corp. 15,000 1,027,500
- ------------------------------------------------------------------------------
Fleet Financial Group, Inc.(2) 30,000 2,203,125
- ------------------------------------------------------------------------------
Morgan J.P.& Co., Inc. 25,000 2,115,625
- ------------------------------------------------------------------------------
Societe Generale 37,800 4,181,415
- ------------------------------------------------------------------------------
UBS AG(1) 5,600 1,092,239
- ------------------------------------------------------------------------------
Wells Fargo & Co. 9,000 3,195,000
----------
44,988,911
- ------------------------------------------------------------------------------
Diversified Financial--1.1%
American Express Co.(2) 32,500 2,522,812
- ------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(2) 50,000 2,368,750
- ------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.(2) 70,000 3,014,375
-----------
7,905,937
- ------------------------------------------------------------------------------
Insurance--2.0%
ACE Ltd. 72,000 2,160,000
- ------------------------------------------------------------------------------
Cigna Corp.(2) 45,000 2,975,625
- ------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 92,500 3,451,406
- ------------------------------------------------------------------------------
Skandia Forsakrings AB 241,000 3,137,649
- ------------------------------------------------------------------------------
UNUM Corp. 65,400 3,249,563
-----------
14,974,243
- ------------------------------------------------------------------------------
Real Estate Investment Trusts--3.1%
Archstone Communities Trust 95,000 1,935,625
- ------------------------------------------------------------------------------
Avalon Bay Communities, Inc. 60,000 2,043,750
- ------------------------------------------------------------------------------
Brandywine Realty Trust 105,000 2,008,125
- ------------------------------------------------------------------------------
Camden Property Trust 65,000 1,815,938
- ------------------------------------------------------------------------------
CarrAmerica Realty Corp. 75,000 1,710,938
- ------------------------------------------------------------------------------
Chastain Capital Corp. 184,000 1,978,000
- ------------------------------------------------------------------------------
Chelsea GCA Realty, Inc. 65,000 2,226,250
- ------------------------------------------------------------------------------
Cornerstone Properties, Inc. 102,000 1,542,750
- ------------------------------------------------------------------------------
CRIIMI MAE, Inc. 170,000 1,498,125
- ------------------------------------------------------------------------------
Developers Diversified Realty Corp. 100,000 1,825,000
- ------------------------------------------------------------------------------
Horizon Group Properties, Inc.(1) 717 1,703
- ------------------------------------------------------------------------------
JDN Realty Corp. 100,000 2,300,000
- ------------------------------------------------------------------------------
Post Properties, Inc. 50,000 1,928,125
-----------
22,814,329
</TABLE>
16 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Industrial--3.2%
- --------------------------------------------------------------------------
<S> <C> <C>
Electrical Equipment--0.6%
Methode Electronics, Inc., Cl.A 143,000 $ 2,145,000
- --------------------------------------------------------------------------
Rockwell International Corp. 60,000 2,167,500
------------
4,312,500
- --------------------------------------------------------------------------
Industrial Materials--0.4%
Equitable Bag, Inc.(1)(3) 1,861 2,792
- --------------------------------------------------------------------------
Owens Corning 98,000 3,191,125
------------
3,193,917
- --------------------------------------------------------------------------
Manufacturing--1.4%
American Standard Cos., Inc.(1) 30,000 791,250
- --------------------------------------------------------------------------
ASM Lithography Holding NV(1) 40,000 627,500
- --------------------------------------------------------------------------
Case Corp. 5,000 108,750
- --------------------------------------------------------------------------
Deere & Co. 12,500 378,125
- --------------------------------------------------------------------------
Hexcel Corp.(1) 190,000 2,042,500
- --------------------------------------------------------------------------
Pall Corp. 150,000 3,328,125
- --------------------------------------------------------------------------
Tenneco, Inc.(New) 99,000 3,254,625
------------
10,530,875
- --------------------------------------------------------------------------
Transportation--0.8%
Burlington Northern Santa Fe Corp. 102,000 3,264,000
- --------------------------------------------------------------------------
Stolt-Nielsen SA 174,000 2,066,250
- --------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 67,050 787,838
------------
6,118,088
- --------------------------------------------------------------------------
Technology--10.9%
- --------------------------------------------------------------------------
Computer Hardware--2.9%
Canon, Inc. 81,000 1,643,134
- --------------------------------------------------------------------------
Hewlett-Packard Co.(2) 61,000 3,229,188
- --------------------------------------------------------------------------
International Business Machines Corp. 97,000 12,416,000
- --------------------------------------------------------------------------
Xerox Corp.(2) 52,000 4,407,000
------------
21,695,322
- --------------------------------------------------------------------------
Computer Software/Services--3.3%
America Online, Inc.(2) 37,000 4,116,250
- --------------------------------------------------------------------------
Computer Associates International, Inc. 95,000 3,515,000
- --------------------------------------------------------------------------
Electronic Arts, Inc.(1)(2) 35,000 1,535,625
- --------------------------------------------------------------------------
First Data Corp. 125,000 2,937,500
- --------------------------------------------------------------------------
Novell, Inc.(1) 231,000 2,829,750
- --------------------------------------------------------------------------
PLATINUM Technology, Inc.(1) 60,000 1,080,000
- --------------------------------------------------------------------------
Rational Software Corp.(1)(2) 197,000 3,312,063
</TABLE>
17 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
<S> <C> <C>
Computer SoftwareServices (continued)
Sabre Group Holdings, Inc.(1) 87,900 $ 2,637,000
- ------------------------------------------------------------------------------
Symantec Corp.(1)(2) 66,842 881,479
- ------------------------------------------------------------------------------
Synopsys, Inc.(1) 46,000 1,532,375
---------
24,377,042
- ------------------------------------------------------------------------------
Electronics--3.1%
Analog Devices, Inc.(1) 140,000 2,248,750
- ------------------------------------------------------------------------------
CAE, Inc. 165,390 973,646
- ------------------------------------------------------------------------------
General Motors Corp., Cl.H(2) 67,800 2,495,888
- ------------------------------------------------------------------------------
Intel Corp.(2) 140,000 12,005,000
- ------------------------------------------------------------------------------
Keyence Corp. 14,800 1,416,595
- ------------------------------------------------------------------------------
STMicroelectronics NV(1)(2) 27,000 1,213,313
- ------------------------------------------------------------------------------
Teradyne, Inc.(1)(2) 47,000 857,750
- ------------------------------------------------------------------------------
Xilinx, Inc.(1)(2) 50,000 1,750,000
----------
22,960,942
- ------------------------------------------------------------------------------
TelecommunicationsTechnology--1.6%
3Com Corp.(1) 45,000 1,352,813
- ------------------------------------------------------------------------------
Airtouch Communications, Inc.(1) 57,000 3,249,000
- ------------------------------------------------------------------------------
Cisco Systems, Inc.(1)(2) 66,000 4,079,625
- ------------------------------------------------------------------------------
ECI Telecommunications Ltd. 22,000 539,000
- ------------------------------------------------------------------------------
Embratel Participacoes SA(1) 10,200,000 85,179
- ------------------------------------------------------------------------------
RCN Corp.(1) 200,000 2,600,000
- ------------------------------------------------------------------------------
Tele Celular Sul Participacoes SA(1) 10,200,000 7,744
- ------------------------------------------------------------------------------
Tele Centro Oeste Celular Participacoes SA(1) 10,200,000 5,162
- ------------------------------------------------------------------------------
Tele Centro Sul Participacoes SA(1) 10,200,000 64,960
- ------------------------------------------------------------------------------
Tele Leste Celular Participacoes SA(1) 10,200,000 3,011
- ------------------------------------------------------------------------------
Tele Nordeste Celular Participacoes SA(1) 10,200,000 5,162
- ------------------------------------------------------------------------------
Tele Norte Celular Participacoes SA(1) 10,200,000 2,581
- ------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA(1) 10,200,000 64,487
- ------------------------------------------------------------------------------
Tele Sudeste Celular Participacoes SA(1) 10,200,000 20,650
- ------------------------------------------------------------------------------
Telemig Celular Participacoes SA(1) 10,200,000 8,604
- ------------------------------------------------------------------------------
Telesp Celular Participacoes SA(1) 10,200,000 51,624
- ------------------------------------------------------------------------------
Telesp Participacoes SA(1) 10,200,000 160,034
-----------
12,299,636
</TABLE>
18 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
<S> <C> <C>
Utilities--1.8%
- -------------------------------------------------------------------------------
Electric Utilities--1.0%
Allegheny Energy, Inc. 48,000 $ 1,515,000
- -------------------------------------------------------------------------------
Houston Industries, Inc. 85,500 2,661,188
- -------------------------------------------------------------------------------
Southern Co. 114,000 3,355,875
-----------
7,532,063
- -------------------------------------------------------------------------------
Telephone Utilities--0.8%
MCI WorldCom, Inc.(1) 37,500 1,832,813
- -------------------------------------------------------------------------------
SBC Communications, Inc. 64,000 2,844,000
- -------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 10,200,000 3,011
- -------------------------------------------------------------------------------
U S West, Inc.(2) 26,075 1,367,308
-----------
6,047,132
-----------
Total Common Stocks (Cost $294,697,795) 374,720,382
- -------------------------------------------------------------------------------
Preferred Stocks--0.3%
- -------------------------------------------------------------------------------
Budget Group, Inc., 6.25% Cv.(5) 40,000 1,875,000
- -------------------------------------------------------------------------------
Spanish Broadcasting Systems, Inc., 14.25% Cum.
Exchangeable, Non-Vtg.(3)(4) 488 479,460
-----------
Total Preferred Stocks (Cost $2,525,414) 2,354,460
Units
- -------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
- -------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99(3) 2,000 20
- -------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03 300 19,537
- -------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01 550 49,569
- -------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 300 --
-----------
Total Rights, Warrants and Certificates (Cost $0) 69,126
Face
Amount(6)
- -------------------------------------------------------------------------------
Mortgage-Backed Obligations--5.0%
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations,
Gtd. Multi class Mtg.
Participation Certificates, Series 151,
Cl. F, 9%, 5/15/21 $ 969,196 1,046,732
Interest-Only Stripped Mtg.-Backed
Security, Series 177,
Cl.B, 5.489%, 7/1/26(7) 1,285,429 162,888
- -------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6.50%, 12/1/27--2/1/28 9,697,610 9,863,052
11.50%, 7/1/11 113,222 124,480
- -------------------------------------------------------------------------------
Government National Mortgage Assn.:
7%, 3/20/26--4/15/26 4,586,469 4,726,382
7.50%, 5/15/27 17,991,775 18,658,551
9%, 11/15/08--5/15/09 335,685 358,247
</TABLE>
19 Oppenheimer Multiple Strategies Fund
<PAGE>
===============================================================================
Statement of Investments (Continued)
===============================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Mortgage-Backed Obligations (continued)
Morgan Stanley Capital I, Inc., Commercial Mtg.
Pass-Through Certificates, Series 1996-C1, Cl. F,
7.436%, 2/15/28(3)(5)(8) $ 97,137 $ 87,818
- -------------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg.
Pass-Through Certificates, Series 1996-MC1, Cl. G,
7.15%, 6/15/06(5) 400,000 355,250
- -------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates:
Series 1992-CHF, C1. D, 8.25%, 12/25/20 215,706 215,909
Series 1993-C1, C1. D, 9.45%, 5/25/24 252,980 251,538
Series 1994-C2, C1. E, 8%, 4/25/25 753,909 759,918
Series 1994-C2, C1. G, 8%, 4/25/25 178,543 178,822
- -------------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII:
Series 1996-CL, C1. F, 9.175%, 1/20/28(8) 250,000 210,859
Series 1996-B, Cl. 1, 7.132%, 4/25/26(5) 291,711 225,529
- -------------------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.734%, 6/25/26(3)(8) 27,688 28,700
----------
Total Mortgage-Backed Obligations (Cost $36,283,965) 37,254,675
- -------------------------------------------------------------------------------------------------------------
U.S. Government Obligations--12.3%
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 500,000 559,688
6.50%, 11/15/26 360,000 429,300
8.875%, 8/15/17 3,650,000 5,279,955
STRIPS, 7.10%, 11/15/18(9) 17,000,000 5,784,352
STRIPS, 7.31%, 8/15/19(9) 18,700,000 6,099,352
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.875%, 9/30/02-2/15/04 30,000,000 31,926,585
6.125%, 12/31/01 15,000,000 15,782,820
6.25%, 2/15/03-2/15/07 12,130,000 13,326,296
6.50%, 10/15/06 4,640,000 5,272,205
7.50%, 5/15/02 327,000 360,824
8.50%, 2/15/00 5,500,000 5,788,756
10.75%, 5/15/03 1,190,000 1,502,004
----------
Total U.S. Government Obligations (Cost $84,039,725) 92,112,389
</TABLE>
20 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount/(6)/ See Note 1
- -------------------------------------------------------------------------------------------------------------
Foreign Government Obligations--18.7%
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Argentina--4.5%
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas, Series I,
5.646%, 4/1/01(8) $ 341,701 $ 293,814
Bonds, Series L, 6.188%, 3/31/05(8) 11,932,000 9,500,855
Nts., 11.75%, 2/12/07(5)(ARP) 150,000 109,138
Nts., 9.15%, 11/30/02(8) 15,000,000 13,237,500
Par Bonds, 5.75%, 3/31/23(10) 16,000,000 10,760,000
-----------
33,901,307
- -------------------------------------------------------------------------------------------------------------
Australia--0.4%
New South Wales Treasury Corp. Gtd. Bonds, 7%, 4/1/04(AUD) 1,570,000 1,012,824
- -------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp.Exchangeable Gtd.Nts :
10.50%, 5/15/03(AUD) 2,590,000 1,883,988
8%, 8/14/01(AUD) 615,000 396,571
-----------
3,293,383
- -------------------------------------------------------------------------------------------------------------
Brazil--3.0%
Brazil (Federal Republic of):
Capitalization Bonds, 8%, 4/15/14 25,756,662 15,518,389
Eligible Interest Bonds, 6.625%, 4/15/06(8) 11,318,500 6,593,026
- -------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA
Medium-Term Nts., 11.25%, 12/9/99(3)(8) 10,000 8,825
-----------
22,120,240
- -------------------------------------------------------------------------------------------------------------
Bulgaria--0.0%
Bulgaria (Republic of) Interest Arrears Bonds, 6.688% 7/28/11(8) 170,000 101,150
- -------------------------------------------------------------------------------------------------------------
Canada--3.0%
Canada (Government of) Bonds:
6.50%,6/1/04(CAD) 13,320,000 9,437,352
7%, 12/1/06(CAD) 60,000 44,666
8.75%, 12/1/05(CAD) 495,000 398,441
9.75%, 12/1/01(CAD) 6,260,000 4,687,466
9.75%, 6/1/01(CAD) 3,270,000 2,403,091
11.75%, 2/1/03(CAD) 290,000 240,663
Series A-33, 11.50%, 9/1/00(CAD) 585,000 429,199
Series WL43, 5.75%, 6/1/29(CAD) 7,130,000 5,013,106
-----------
22,653,984
</TABLE>
21 Oppenheimer Multiple Strategies Fund
<PAGE>
===============================================================================
Statement of Investments (Continued)
===============================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Denmark--0.6%
Denmark (Kingdom of) Bonds, 8%, 3/15/06(DKK) 21,900,000 $ 4,172,540
- ---------------------------------------------------------------------------------------------------------------------------
Finland--0.1%
Finland (Republic of) Bonds, 9.50%, 3/15/04(FIM) 4,000,000 998,420
- ---------------------------------------------------------------------------------------------------------------------------
Germany--0.3%
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24(DEM) 2,665,000 1,919,797
- ---------------------------------------------------------------------------------------------------------------------------
Great Britain--1.6%
United Kingdom Treasury Bonds:
7%, 6/7/02(GBP) 2,415,000 4,336,194
7.25%, 12/7/07(GBP) 2,400,000 4,796,140
10%, 9/8/03(GBP) 325,000 666,737
- ---------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts.:
9.75%, 8/27/02(GBP) 55,000 107,779
12.50%, 11/21/05(GBP) 62,000 140,001
13%, 7/14/00(GBP) 1,050,000 1,994,594
----------
12,041,445
- ---------------------------------------------------------------------------------------------------------------------------
Italy--0.2%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
9%, 10/1/03(ITL) 195,000,000 144,228
9.50%, 2/1/01(ITL) 405,000,000 275,384
9.50%, 5/1/01(ITL) 195,000,000 134,091
10.50%, 4/1/00(ITL) 200,000,000 132,119
10.50%, 7/15/00(ITL) 1,270,000,000 854,403
----------
1,540,225
- ---------------------------------------------------------------------------------------------------------------------------
Mexico--0.5%
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 110,000 99,550
- ---------------------------------------------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03(DEM) 150,000 87,280
16.50%, 9/1/08(3)(GBP) 35,000 71,375
- ---------------------------------------------------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par Bonds:
Series B, 6.25%, 12/31/19 250,000 186,250
Series W-A, 6.25%, 12/31/19 4,450,000 3,315,250
-----------
3,759,705
</TABLE>
22 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
New Zealand--3.2%
New Zealand (Government of) Bonds:
8%, 11/15/06(NZD) 345,000 $ 198,685
8%, 2/15/01(NZD) 43,360,000 22,851,383
10%, 3/15/02(NZD) 1,085,000 616,535
-----------
23,666,603
- ------------------------------------------------------------------------------------------------------------------
Norway--0.0%
Norway (Government of) Bonds, 9.50%, 10/31/02(NOK) 880,000 135,200
- ------------------------------------------------------------------------------------------------------------------
Philippines--0.3%
Philippines (Republic of):
Bonds, 8.60%, 6/15/27 1,500,000 997,500
Par Bonds, Series B, 6.50%, 12/1/17(3)(10) 1,675,000 1,191,344
-----------
2,188,844
- ------------------------------------------------------------------------------------------------------------------
Poland--0.7%
Poland (Republic of) Bonds:
12%, 6/12/01(PLZ) 18,000,000 4,642,764
16%, 2/12/99(PLZ) 940,000 261,609
-----------
4,904,373
- ------------------------------------------------------------------------------------------------------------------
South Africa--0.2%
Eskom Depositary Receipts, Series E168, 11%, 6/1/08(ZAR) 6,430,000 750,150
- ------------------------------------------------------------------------------------------------------------------
Eskom Sec.Bonds, 11%, 6/1/08(ZAR) 3,000,000 349,992
- ------------------------------------------------------------------------------------------------------------------
South Africa (Republic of) Bonds, 12.50%, 12/21/06(ZAR) 800,000 106,083
-----------
1,206,225
- ------------------------------------------------------------------------------------------------------------------
Spain--0.1%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion
del Estado:
10.25%, 11/30/98(ESP) 25,800,000 183,132
10.30%, 6/15/02(ESP) 39,150,000 337,087
10.50%, 10/30/03(ESP) 22,100,000 202,262
12.25%, 3/25/00(ESP) 31,600,000 249,476
-----------
971,957
-----------
Total Foreign Government Obligations (Cost $146,503,187) 139,575,398
</TABLE>
23 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount (6) See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Loan Participations--0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan
Facility Bonds, 6.688%, 7/1/01/(3)(8) $ 185,660 $ 167,095
- ------------------------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 6.563%, 1/1/09 (3)(8) 665,000 483,787
------------
Total Loan Participations (Cost $777,805) 650,882
- ------------------------------------------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes--6.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Adelphia Communications Corp., 10.50% Sr. Unsec. Nts.,
Series B, 7/15/04 500,000 550,000
- ------------------------------------------------------------------------------------------------------------------------------------
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 1,150,000 1,158,625
- ------------------------------------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10.25% Sr. Sub. Nts. 12/1/06 425,000 465,375
- ------------------------------------------------------------------------------------------------------------------------------------
American International Group, Inc., 11.70% Unsec.
Unsub.Bonds, 12/4/01(ITL) 95,000,000 70,426
- ------------------------------------------------------------------------------------------------------------------------------------
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06 360,000 370,800
- ------------------------------------------------------------------------------------------------------------------------------------
AMRESCO,Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 161,000
- ------------------------------------------------------------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 500,000 502,500
- ------------------------------------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, 10.375% Debs., 1/31/02(5) 320,000 267,200
- ------------------------------------------------------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98(3) 50,000 49,750
- ------------------------------------------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 135,000 145,125
- ------------------------------------------------------------------------------------------------------------------------------------
Belden & Blake Corp., 9.875% Sr. Sub. Nts., 6/15/07 480,000 400,800
- ------------------------------------------------------------------------------------------------------------------------------------
Building Materials Corp. of America, 8.625% Sr. Nts.,
Series B, 12/15/06 50,000 50,500
- ------------------------------------------------------------------------------------------------------------------------------------
California Energy, Inc., 10.25% Sr. Disc. Nts., 1/15/04 400,000 425,000
- ------------------------------------------------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04(11) 140,000 134,225
- ------------------------------------------------------------------------------------------------------------------------------------
Calpine Corp.:
8.75% Sr. Nts., 7/15/07 650,000 666,250
10.50% Sr. Nts., 5/15/06 225,000 241,875
- ------------------------------------------------------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., Series B, 7/15/07 500,000 462,500
- ------------------------------------------------------------------------------------------------------------------------------------
Capstar Broadcasting Partners, Inc., 9.25% Sr. Sub. Nts., 7/1/07 400,000 406,000
- ------------------------------------------------------------------------------------------------------------------------------------
Casino America, Inc., 12.50% Sr. Nts., 8/1/03 250,000 271,250
- ------------------------------------------------------------------------------------------------------------------------------------
Celcaribe SA, 13.50% Sr. Sec. Nts., 3/15/04 350,000 358,750
- ------------------------------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Sr.
Unsec. Sub. Nts., 4/15/06 200,000 210,000
- ------------------------------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc. Debs 11/15/07(11) 850,000 692,750
- ------------------------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts.,
Series B, 8/1/05 1,300,000 1,413,750
</TABLE>
24 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) 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(11) $ 300,000 $ 204,000
- ------------------------------------------------------------------------------------------------------------------------------------
Convergent Communications, Inc., Units (each unit consists
of $1,000 principal amount of 13% sr. nts., 4/1/08 and four
warrants to purchase 10.8 shares of common stock)(5)(12) 500 402,500
- ------------------------------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc.:
9.875% Sr. Sub. Debs., 2/15/13 250,000 275,000
10.50% Sr. Sub. Debs., 5/15/16 250,000 286,250
- ------------------------------------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/11.75%
Sr. Disc. Nts., 12/15/05 (11) 300,000 240,000
- ------------------------------------------------------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 100,000 92,500
- ------------------------------------------------------------------------------------------------------------------------------------
EchoStar Communications Corp., 0%/12.875%
Sr. Disc. Nts., 6/1/04(11) 50,000 48,750
- ------------------------------------------------------------------------------------------------------------------------------------
EchoStar Satellite Broadcasting Corp., 0%/13.125%
Sr. Sec. Disc. Nts., 3/15/04(11) 500,000 445,000
- ------------------------------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Sec. Nts , Series E, 5/1/11 250,000 288,437
- ------------------------------------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA de CV,
11.875% Nts., 5/30/01 30,000 28,425
- ------------------------------------------------------------------------------------------------------------------------------------
FaciliCom International, Inc., 10.50% Sr. Nts., Series B, 1/15/08 215,000 188,125
- ------------------------------------------------------------------------------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285% Sr. Disc. Debs., 4/15/10(11) 600,000 411,000
- ------------------------------------------------------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Sub. Nts., Series B, 7/31/07 1,150,000 1,144,250
- ------------------------------------------------------------------------------------------------------------------------------------
Fletcher Challenge Finance U.S.A., Inc., 8.05% Debs. 6/15/03 (NZD) 35,000 18,040
- ------------------------------------------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd.:
10% Cv. Unsec. Sub. Nts., 4/30/05(NZD) 35,000 19,629
14.50% Cv.Sub. Nts., 9/30/00(NZD) 35,000 19,812
- ------------------------------------------------------------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 9.625% Sr. Nts., 5/15/08(5) 750,000 729,375
- ------------------------------------------------------------------------------------------------------------------------------------
Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05(5) 950,000 688,750
- ------------------------------------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% First Mtg. Sec. Nts., 12/1/03 500,000 527,500
- ------------------------------------------------------------------------------------------------------------------------------------
Grey Wolf, Inc., 8.875% Sr. Unsec. Nts., Series C, 7/1/07 750,000 573,750
- ------------------------------------------------------------------------------------------------------------------------------------
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02 25,000 19,094
- ------------------------------------------------------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(11) 465,000 337,125
- ------------------------------------------------------------------------------------------------------------------------------------
Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05(5) 500,000 497,500
- ------------------------------------------------------------------------------------------------------------------------------------
Harris Chemical North America, Inc., 10.75% Sr. Sub. Nts., 10/15/03 100,000 104,050
- ------------------------------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 220,250
- ------------------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts.,
Series B, 11/1/03(8) 200,000 209,000
- ------------------------------------------------------------------------------------------------------------------------------------
Hovnanian K. Enterprises, Inc., 11.25% Gtd. Sub. Nts. 4/15/02 725,000 723,187
</TABLE>
25 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Non-Convertible Corporate Bonds and Notes (continued)
ICG Holdings, Inc.:
0%/12.50% Sr. Sec. Disc. Nts., 5/1/06(11) $ 470,000 $ 336,050
0%/13.50% Sr. Disc. Nts., 9/15/05(11) 240,000 190,800
- -----------------------------------------------------------------------------------------------------------------------------------
Imax Corp., 10% Sr. Nts., 3/1/01(8) 320,000 331,200
- -----------------------------------------------------------------------------------------------------------------------------------
Integrated Health Services, Inc., 9.50% Sr. Sub. Nts., 9/15/07 75,000 70,125
- -----------------------------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 8.50% Sr. Nts., Series B, 1/15/08 500,0000 496,250
- -----------------------------------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts.,
Series B, 6/1/05 500,000 515,000
- -----------------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 492,500
- -----------------------------------------------------------------------------------------------------------------------------------
Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04 400,000 402,000
- -----------------------------------------------------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts., Series B, 3/15/07 1,000,000 960,000
- -----------------------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 100,000 106,500
- -----------------------------------------------------------------------------------------------------------------------------------
Laroche Industries, Inc., 9.50% Sr. Sub. Nts., Series B, 9/15/07 500,000 437,500
- -----------------------------------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 967,500
- -----------------------------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., 0%/10.50% Sr. Disc. Nts., 3/1/07(11) 500,000 365,000
- -----------------------------------------------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Gtd. Sr. Sec. Sub. Nts.,
Series B, 12/30/99 38,000 27,075
- -----------------------------------------------------------------------------------------------------------------------------------
Millicom International Cellular SA, 0%/13.50%
Sr. Disc. Nts., 6/1/06(11) 750,000 476,250
- -----------------------------------------------------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First Priority
Ship Mtg. Nts., 6/30/07(5) 500,000 475,000
- -----------------------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,139,102
- -----------------------------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 183,000 197,640
- -----------------------------------------------------------------------------------------------------------------------------------
NTL, Inc., 0%/9.75% Sr. Nts., 4/1/08(5)(11) 500,000 305,000
- -----------------------------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp., 11.875% Nts., 10/1/03 500,000 490,000
- -----------------------------------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 300,000 208,500
11.625% Sr. Nts., Series A, 8/15/06 400,000 278,000
- -----------------------------------------------------------------------------------------------------------------------------------
ORBCOMM Global LP/ORBCOMM Capital Corp.,
14% Sr. Nts., 8/15/04 155,000 137,175
- -----------------------------------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts., 6/15/07 900,000 877,500
- -----------------------------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 1,000,000 960,000
- -----------------------------------------------------------------------------------------------------------------------------------
PSINet, Inc., 10% Sr. Unsec. Nts., Series B, 2/15/05 1,250,000 1,259,375
- -----------------------------------------------------------------------------------------------------------------------------------
Randall's Food Markets, Inc., 9.375% Sr. Sub. Nts., Series B, 7/1/07 1,315,000 1,361,025
- -----------------------------------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., 8.625% Sr. Unsec.
Sub. Nts., 2/1/08 500,000 491,250
- -----------------------------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 10.085%, 3/15/01(9) 1,000,000 770,000
- -----------------------------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 9.50% Sr. Sub. Nts., 4/15/07 250,000 272,500
- -----------------------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.625% Sr. Unsec. Nts., 8/1/07 500,000 462,500
</TABLE>
26 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Non-Convertible Corporate Bonds and Notes (continued)
Rogers Cablesystems Ltd., 10% Second Priority Sr.
Sec. Debs., 12/1/07 $ 1,300,000 $ 1,426,750
- ------------------------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08 750,000 720,000
- ------------------------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,095,000
- ------------------------------------------------------------------------------------------------------------------------------
Showboat Marina Casino Partnership/Showboat Marina
Finance Corp., 13.50% First Mtg. Nts., Series B, 3/15/03 400,000 452,000
- ------------------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8.75% Sr. Sub. Nts., 12/15/07 500,000 492,500
9% Sr. Unsec. Sub.Nts., 7/15/07 450,000 450,000
- ------------------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 11.75% Sr.Unsec.Sub Nts., 8/15/06 1,055,000 917,850
- ------------------------------------------------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 362,069 303,439
9.50% Sr. Sec. Nts., 12/28/08(5) 72,413 60,688
- ------------------------------------------------------------------------------------------------------------------------------
Sun Healthcare Group, Inc.:
9.375% Sr. Sub.Nts., 5/1/08(5) 500,000 452,500
9.50% Sr. Sub. Nts., 7/1/07 525,000 480,375
- ------------------------------------------------------------------------------------------------------------------------------
TCI Satellite Entertainment, Inc., 10.875% Sr Sub. Nts., 2/15/07 195,000 181,350
- ------------------------------------------------------------------------------------------------------------------------------
TeleWest Communications plc, 0%/11% Sr. Disc Debs., 10/1/07(11) 1,000,000 825,000
- ------------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,400,000 1,541,324
- ------------------------------------------------------------------------------------------------------------------------------
Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 950,000 907,250
- ------------------------------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr.Disc. Nts., Series B, 12/15/03(11) 1,000,000 875,000
- ------------------------------------------------------------------------------------------------------------------------------
TV Azteca SA de CV, 10.50% Sr. Nts., Series B, 2/15/07 200,000 140,000
- ------------------------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr.Nts., 11/1/03(3) 500,000 502,500
- ------------------------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs, 6/15/07 900,000 897,750
-----------
Total Non-Convertible Corporate Bonds and Notes
(Cost $48,411,067) 46,795,343
==============================================================================================================================
Repurchase Agreements--6.4%
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P.Morgan Securities, Inc., 5.40%,
dated 9/30/98, to be repurchased at $47,357,103 on 10/1/98,
collateralized by U.S.Treasury Bonds,6.25%--10.625%,
8/15/15--8/15/25, with a value of $44,994,718, and U.S. Treasury Nts.,
5.625%, 5/15/08, with a value of $3,762,459 (Cost $47,350,000) 47,350,000 47,350,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $660,588,958) 99.3% 740,882,655
- ------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.7 5,465,129
--------- ------------
Net Assets 100.0% $746,347,784
========= ============
</TABLE>
27 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Continued)
================================================================================
- --------------------------------------------------------------------------------
1. Non-income producing security.
2. A sufficient amount of liquid assets has been designated to cover outstanding
written call options, as follows:
<TABLE>
<CAPTION>
Shares Expiration Exercise Premium Market Value
Subject to Call Date Price Received See Note 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alaska Air Group, Inc. 10,000 10/98 $60.000 $ 65,948 $ 1,875
Alaska Air Group, Inc. 7,000 10/98 65.000 32,164 437
America Online, Inc. 10,000 10/98 100.000 95,947 140,000
America Online,Inc 7,500 10/98 135.000 30,711 4,687
America Online, Inc. 16,000 10/98 70.000 113,756 658,000
American Express Co. 7,500 10/98 115.000 50,711 469
Baker Hughes, Inc. 4,000 12/98 85.000 43,379 250
CBS Corp. 32,000 1/99 40.000 47,038 4,000
Cigna Corp. 9,000 10/98 73.625 41,159 563
Cisco Systems, Inc. 10,000 10/98 66.625 53,448 14,063
Cisco Systems, Inc. 19,800 10/98 53.375 71,179 259,875
Electronic Arts, Inc. 12,000 12/98 50.000 74,808 33,000
Federated Department Stores, Inc. 10,000 11/98 55.000 25,324 625
Fleet Financial Group, Inc. 5,400 10/98 95.000 22,112 675
General Motors Corp., Cl.H 14,000 12/98 60.000 73,078 875
Genzyme Corp.(General Division) 22,200 10/98 35.000 49,282 49,950
Hewlett-Packard Co. 12,000 11/98 85.000 47,638 1,500
Input/Output, Inc. 25,000 11/98 30.000 47,686 3,125
Intel Corp. 50,000 10/98 90.000 229,742 75,000
Intel Corp. 5,000 10/98 95.000 4,850 2,500
International Game Technology 40,000 10/98 30.000 88,797 5,000
Merrill Lynch & Co., Inc. 8,000 10/98 105.000 26,759 500
Morgan Stanley Dean Witter & Co. 12,000 1/99 90.000 38,639 750
Outback Steakhouse, Inc. 10,900 11/98 45.000 11,447 1,363
Petco Animal Supplies, Inc. 6,000 12/98 22.500 14,070 375
Rational Software Corp. 40,000 10/98 20.000 61,298 7,500
STMicroelectronics NV 2,500 10/98 95.000 17,424 156
STMicroelectronics NV 2,500 1/99 85.000 7,112 156
Santa Fe International Corp. 13,500 10/98 45.000 38,406 844
Symantec Corp. 33,400 10/98 25.000 199,391 2,088
Teradyne, Inc. 6,500 10/98 50.000 52,616 406
U S West Communications Group 15,200 10/98 40.000 28,993 91,200
United Healthcare Corp. 400 12/98 75.000 1,738 50
Xerox Corp. 12,000 10/98 120.000 37,139 750
Xilinx, Inc. 11,000 1/99 55.000 21,669 4,125
Xilinx, Inc. 10,000 12/98 45.000 26,574 10,000
Xilinx, Inc. 11,000 12/98 50.000 75,292 4,812
---------- ----------
$1,967,325 $1,381,544
========== ==========
</TABLE>
28 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
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. 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 $6,531,248 or 0.88% of the Fund's net
assets as of September 30, 1998.
6. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
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 Markka
7. 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.
8. Represents the current interest rate for a variable rate security.
9. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
10. Represents the current interest rate for an increasing rate security.
11. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
12. Units may be comprised of several components, such as debt and equity
and/or warrants to equity at some point in the future. For units which represent
debt securities, face amount disclosed represents total underlying principal.
See accompanying Notes to Financial Statements.
29 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Assets and Liabilities September 30, 1998
================================================================================
<TABLE>
======================================================================================
<S> <C>
Assets
Investments, at value (cost $660,588,958)--see accompanying statement $740,882,655
- --------------------------------------------------------------------------------------
Cash 623,080
- --------------------------------------------------------------------------------------
Receivables:
Interest and dividends 6,576,673
Investments sold 1,627,220
Shares of beneficial interest sold 120,513
- --------------------------------------------------------------------------------------
Other 34,011
------------
Total assets 749,864,152
======================================================================================
Liabilities
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 1,910
- --------------------------------------------------------------------------------------
Options written, at value (premiums received $1,967,325)--
see accompanying statement--Note 6 1,381,544
- --------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 603,382
Shares of beneficial interest redeemed 534,580
Distribution and service plan fees 401,493
Trustees' fees--Note 1 202,842
Shareholder reports 189,802
Transfer and shareholder servicing agent fees 141,924
Custodian fees 36,107
Other 22,784
------------
Total liabilities 3,516,368
======================================================================================
Net Assets $746,347,784
============
======================================================================================
Composition of Net Assets
Paid-in capital $610,489,813
- --------------------------------------------------------------------------------------
Undistributed net investment income 2,205,024
- --------------------------------------------------------------------------------------
Accumulated net realized gain on investments
and foreign currency transactions 52,757,152
- --------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 80,895,795
------------
Net assets $746,347,784
============
</TABLE>
30 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
==============================================================================================
Net Asset Value Per Share
<S> <C>
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $624,894,508 and 45,631,441 shares of beneficial interest outstanding) $13.69
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $14.53
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $73,036,251
and 5,380,966 shares of beneficial interest outstanding) $13.57
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $48,417,025
and 3,558,635 shares of beneficial interest outstanding) $13.61
</TABLE>
See accompanying Notes to Financial Statements.
31 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Operations For the Year Ended September 30, 1998
================================================================================
<TABLE>
<S> <C>
==========================================================================================================
Investment Income
Interest $ 30,123,773
- ----------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $132,309) 6,381,938
--------------
Total income 36,505,711
==========================================================================================================
Expenses
Management fees--Note 4 5,796,545
- ----------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,166,276
Class B 744,275
Class C 523,274
- ----------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,033,666
- ----------------------------------------------------------------------------------------------------------
Shareholder reports 364,676
- ----------------------------------------------------------------------------------------------------------
Custodian fees and expenses 121,573
- ----------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 90,640
- ----------------------------------------------------------------------------------------------------------
Insurance expenses 16,305
- ----------------------------------------------------------------------------------------------------------
Registration and filing fees 17,971
- ----------------------------------------------------------------------------------------------------------
Other 92,258
----------
Total expenses 9,967,459
==========================================================================================================
Net Investment Income 26,538,252
==========================================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (including premiums on options exercised) 64,859,859
Closing and expiration of option contracts written--Note 6 2,458,718
Foreign currency transactions (2,055,189)
-----------
Net realized gain 65,263,388
- ----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (123,411,754)
Translation of assets and liabilities denominated in foreign currencies (5,181,795)
-------------
Net change (128,593,549)
-------------
Net realized and unrealized loss (63,330,161)
==========================================================================================================
Net Decrease in Net Assets Resulting from Operations $(36,791,909)
=============
</TABLE>
See accompanying Notes to Financial Statements.
32 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
Year Ended September 30,
1998 1997
====================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 26,538,252 $ 14,511,782
- --------------------------------------------------------------------------------------------------------------------
Net realized gain 65,263,388 54,497,060
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (128,593,549) 37,676,936
Net increase (decrease) in net assets Resulting from operations (36,791,909) 106,685,778
====================================================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (22,551,335) (12,706,372)
Class B (1,840,926) (600,770)
Class C (1,269,307) (936,710)
- --------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (55,838,257) (14,621,660)
Class B (5,628,562) (435,849)
Class C (4,059,155) (1,359,035)
====================================================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 20,258,200 382,443,207
Class B 17,065,629 56,924,508
Class C 7,078,031 23,090,531
====================================================================================================================
Net Assets
Total increase (decrease) (83,577,591) 538,483,628
Beginning of period 829,925,375 291,441,747
---------- -----------
End of period (including undistributed net investment
income of $2,205,024 and $1,488,298, respectively) $ 746,347,784 $829,925,375
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
33 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------
Year Ended September 30, Year Ended December 31,
1998 1997 1996(2) 1995 1994 1993
===================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.17 $14.09 $13.07 $11.52 $13.05 $11.63
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .51 .50 .49 .52 .54 .44
Net realized and unrealized gain (loss) (1.22) 2.88 .96 2.08 (.75) 1.43
------ ------ ------ ------ ------ -----
Total income (loss) from investment
operations (.71) 3.38 1.45 2.60 (.21) 1.87
- -------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.49) (.51) (.43) (.49) (.53) (.44)
Distributions from net realized gain (1.28) (.79) (.56) -- (.79) (.01)
------ ------ ------ ------ ------ -----
Total dividends and distributions
to shareholders (1.77) (1.30) (.43) (1.05) (1.32) (.45)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.69 $16.17 $14.09 $13.07 $11.52 $13.05
====== ====== ====== ====== ====== ======
===================================================================================================================
Total Return, at Net Asset Value(4) (4.71)% 25.46% 11.22% 22.79% (1.59)% 16.30%
===================================================================================================================
Ratios/Supplemental Data
Net assets,end of period
(in thousands) $624,895 $712,470 $264,359 $251,353 $237,771 $277,914
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $699,665 $395,436 $256,765 $249,660 $260,767 $272,303
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.34% 3.30% 4.73%(5) 3.97% 4.10% 3.58%
Expenses 1.08% 1.16% 1.21%(5) 1.15% 1.09% 1.14%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 58.5% 51.0% 31.7% 28.5% 31.5% 32.7%
</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.
34 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
Class B Class C
- -------------------------------------------------------- ---------------------------------------------------------------------
Period
Ended
Year Ended September 30, Dec. 31, Year Ended September 30, Year Ended December 31,
1998 1997 1996(2) 1995(3) 1998 1997 1996(2) 1995 1994 1993(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$16.04 $14.01 $13.03 $13.28 $16.07 $14.02 $13.01 $11.49 $13.05 $12.86
- ------------------------------------------------------------------------------------------------------------------------------------
.38 .45 .41 .17 .38 .41 .40 .40 .44 (.97)
(1.20) 2.78 .93 .41 (1.20) 2.83 .96 2.07 (.77) 1.29
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(.82) 3.23 1.34 .58 (.82) 3.24 1.36 2.47 (.33) .32
- ------------------------------------------------------------------------------------------------------------------------------------
(.37) (.41) (.36) (.27) (.36) (.40) (.35) (.39) (.44) (.12)
(1.28) (.79) -- (.56) (1.28) (.79) -- (.56) (.79) (.01)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(1.65) (1.20) (.36) (.83) (1.64) (1.19) (.35) (.95) (1.23) (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
$13.57 $16.04 $14.01 $13.03 $13.61 $16.07 $14.02 $13.01 $11.49 $13.05
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
====================================================================================================================================
(5.49)% 24.34% 10.37% 4.44% (5.43)% 24.42% 10.55% 21.69% (2.50)% 2.51%
====================================================================================================================================
$73,036 $67,916 $5,996 $1,265 $48,417 $49,539 $21,087 $15,405 $9,182 $396
- ------------------------------------------------------------------------------------------------------------------------------------
$74,442 $25,113 $3,546 $ 520 $52,325 $33,813 $17,898 $11,827 $5,601 $194
- ------------------------------------------------------------------------------------------------------------------------------------
2.53% 2.26% 3.69% (5) 2.62% (5) 2.51% 2.61% 3.84%(5) 3.08% 3.30% 2.19%(3)
1.91% 1.96% 2.12% (5) 2.27% (5) 1.91% 1.97% 2.07%(5) 1.99% 2.00% 2.50%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
58.5% 51.0% 31.7% 28.5% 58.5% 51.0% 31.7% 28.5% 31.5% 32.7%
</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
September 30, 1998, were $446,088,367 and $426,392,607, respectively.
See accompanying Notes to Financial Statements.
35 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to Financial Statements
================================================================================
================================================================================
1. Significant Accounting Policies
Oppenheimer Multiple Strategies Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek high
total investment return 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.
36 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent Trustees. Benefits are based on years of service and
fees paid to each Trustee during the years of service. During the year ended
September 30, 1998, a credit of $64,022 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 $189,122 as of September 30, 1998.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Trustee in shares of one or more Oppenheimer
funds selected by the Trustee. The amount paid to the Trustee under the plan
will be determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
37 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
1. Significant Accounting Policies (continued)
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
because of the recognition of certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes. The character of the distributions made
during the year from net investment income or net realized gains may differ from
its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders
to reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 1998, amounts have been reclassified to reflect an
increase in paid-in capital of $591,836, a decrease in undistributed net
investment income of $159,958, and a decrease in accumulated net realized gain
on investments of $431,878.
- --------------------------------------------------------------------------------
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.
38 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
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>
Year Ended September 30, 1998 Year Ended September 30, 1997
------------------------------- ---------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,733,445 $ 41,795,382 2,219,229 $ 32,694,783
Dividends reinvested 4,959,787 71,625,634 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 (6,121,146) (93,162,816) (3,316,554) (49,473,845)
---------- ------------ ----------- -------------
Net increase 1,572,086 $ 20,258,200 25,302,921 $382,443,207
========== ============ =========== =============
- -------------------------------------------------------------------------------------------------
Class B:
Sold 1,763,004 $ 26,611,307 1,162,177 $ 17,259,750
Dividends reinvested 459,723 6,577,938 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 (1,076,399) (16,123,616) (408,734) (6,257,638)
---------- ------------ ----------- -------------
Net increase 1,146,328 $ 17,065,629 3,806,508 $ 56,924,508
========== ============ =========== =============
- -------------------------------------------------------------------------------------------------
Class C:
Sold 981,223 $ 14,888,603 1,211,432 $ 17,627,875
Dividends reinvested 345,067 4,948,258 151,633 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 (849,738) (12,758,830) (381,455) (5,694,022)
---------- ------------ ----------- -------------
Net increase 476,552 7,078,031 1,578,270 $ 23,090,531
========== ============ =========== =============
=================================================================================================
</TABLE>
3. Unrealized Gains and Losses on Investments
As of September 30, 1998, net unrealized appreciation on investments and options
written of $80,879,478 was composed of gross appreciation of $130,299,440,
and gross depreciation of $49,419,962.
39 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
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 year ended September 30, 1998, commissions (sales charges
paid by investors) on sales of Class A shares totaled $910,294, of which
$288,141 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 $878,710 and $134,394, respectively, of which $47,196
and $3,702, respectively, was paid to an affiliated broker/dealer. During the
year ended September 30, 1998, OFDI received contingent deferred sales charges
of $164,466 and $11,263, 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 other Oppenheimer
funds. OFS's total costs of providing such services are allocated ratably to
these funds.
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 year ended September 30, 1998, OFDI paid
$83,283 to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
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 and Class C shares
for its services rendered 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
40 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
year ended September 30, 1998, OFDI paid $7,327 and $14,113, respectively, to an
affiliated broker/dealer as compensation for Class B and Class C personal
service and maintenance expenses and retained $618,987 and $227,791,
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. As of September 30, 1998, OFDI had incurred excess distribution and
servicing costs of $2,811,387 for Class B and $576,876 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.
As of September 30, 1998, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized
Expiration Date Amount (000s) September 30, 1998 Depreciation
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
Australian Dollar (AUD) 10/2/98 239 AUD $142,095 $1,910
</TABLE>
41 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to Financial Statements (Continued)
================================================================================
================================================================================
6. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call
options to hedge against adverse movements in the value of portfolio
holdings. When an option is written, the Fund receives a premium and becomes
obligated to sell or purchase the underlying security at a fixed price, upon
exercise of the option.
Options are valued daily based upon the last sale price on the
principal exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted
in the Statement of Investments where applicable. Shares subject to call,
expiration date, exercise price, premium received and market value are detailed
in a footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid secondary market does
not exist.
Written option activity for the year ended September 30, 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 14,372 5,747,199
Options closed or expired (12,063) (4,462,852)
Options exercised (8,054) (2,248,247)
------- ------------
Options outstanding at September 30, 1998 5,233 $ 1,967,325
======= ============
=================================================================================================
</TABLE>
7. Illiquid and Restricted Securities
As of September 30, 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.
42 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
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 as of September 30, 1998 was $3,332,413,
which represents 0.45% of the Fund's net assets.
================================================================================
8. Acquisition of Oppenheimer Fund and Oppenheimer Strategic Income & Growth
Fund
On June 20, 1997, the Fund acquired all the net assets of Oppenheimer Fund,
pursuant to an agreement and plan of reorganization approved by the Oppenheimer
Fund shareholders on October 10, 1996. The Fund issued 21,161,450, 233,975
and 350,467 shares of beneficial interest for Class A, Class B, and Class C,
respectively, valued at $321,019,207, $3,521,330, and $5,285,049, in
exchange for the net assets, resulting in combined Class A net assets of
$675,300,917, Class B net assets of $60,510,384 and Class C net assets of
$45,364,088 on June 20, 1997. The net assets acquired included net unrealized
appreciation of $114,271,242. The exchange qualified as a tax-free
reorganization for federal income tax purposes.
On June 20, 1997, the Fund acquired all the net assets of
Oppenheimer Strategic Income & Growth Fund, pursuant to an agreement and plan of
reorganization approved by the Oppenheimer Strategic Income & Growth Fund
shareholders on March 10, 1997. The Fund issued 3,530,859, 2,758,332 and
246,193 shares of beneficial interest for Class A, Class B, and Class C,
respectively, valued at $53,563,143, $41,512,900, 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 year ended
September 30, 1998.
43 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Independent Auditors' Report
================================================================================
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer Multiple Strategies Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Multiple Strategies Fund as of September 30, 1998,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years in the two-year period
then ended, the nine-month period ended September 30, 1996, and each of the
years in the three-year period ended December 31, 1995. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of September 30, 1998, by correspondence with the custodian and
brokers; and where confirmations were not received from brokers, we performed
other auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Multiple Strategies Fund as of September 30, 1998, the
results of its operations for the year then ended, the changes in its net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the years in the two-year period then ended, the
nine-month period ended September 30, 1996, and each of the years in the
three-year period ended December 31, 1995, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
October 21, 1998
44 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Federal Income Tax Information (Unaudited)
================================================================================
================================================================================
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S.Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.3978, $1.3599 and $1.3596 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 19, 1997,
of which, for each class of shares, $0.2933 was designated as a capital gain
distribution in the "28% Rate Group" and $0.7208 was designated as a capital
gain distribution in the "20% Rate Group" for federal income tax purposes.
Whether received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
Dividends paid by the Fund during the year ended September 30,
1998, which are not designated as capital gain distributions should be
multiplied by 21.82% to arrive at the net amount eligible for the corporate
dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue
Service. Because of the complexity of the federal regulations which may affect
your individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
45 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Oppenheimer Multiple Strategies Fund
================================================================================
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees,
Donald W. Spiro, Vice Chairman of the Board of
Trustees, Bridget A. Macaskill, Trustee and
President, Robert G. Galli, Trustee, Benjamin
Lipstein, Trustee, Elizabeth B. Moynihan,
Trustee, Kenneth A. Randall, Trustee, Edward V.
Regan, Trustee, Russell S. Reynolds, Jr.,
Trustee, Pauline Trigere, Trustee, Clayton K.
Yeutter, Trustee, George Evans, Vice President,
Michael S. Levine, Vice President David P. Negri,
Vice President 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
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.
46 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
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 may 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.
47 Oppenheimer Multiple Strategies Fund
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
Mon-Fri 8:30am-8pm ET
1-800-852-8457
PhoneLink
24-hr automated information
and automated transactions
1-800-533-3310
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links"your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds' Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
RA0240.001.0998 November 27, 1998
