[graphic]
picture of snow-capped mountains
Annual Report September 30, 1999
Oppenheimer
Multiple Strategies Fund
[logo]OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
A broadening of the stock market's rally in the second quarter of 1999 helped to
enhance Fund performance.
Many of the Fund's technology holdings generated strong returns for the Fund
during the year.
The Fund used the rising interest rate environment as an opportunity to lock in
higher yields through its increased exposure to U.S. Treasury securities.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 Financial
Statements
43 Independent
Auditors' Report
44 Federal
Income Tax
Information
45 Officers and Trustees
- ----------------------
Average Annual
Total Returns
For the 1-Year Period
Ended 9/30/99*
Class A
Without With
Sales Chg. Sales Chg.
- ----------------------
16.29% 9.60%
Class B
Without With
Sales Chg. Sales Chg.
- ----------------------
15.35% 10.35%
Class C
Without With
Sales Chg. Sales Chg.
- ----------------------
15.28% 14.28%
- ----------------------
- ----------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- ---------------------
*See page 10 for further details.
<PAGE>
[Photo of Bridget A. Macaskill]
Bridget A. Macaskill
President
Oppenheimer Multiple
Strategies Fund
PRESIDENT'S LETTER
Dear shareholder,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of largecapitalization growth stocks,
which has driven the market"s advance over the past few years, has begun to
moderate, and many previously out-of-favor value-oriented mid-cap and small-cap
stocks have rallied. At the same time, a healthy percentage of actively managed,
diversified portfolios have once again begun to outperform unmanaged stock
indices such as Standard & Poor's 500.
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against
inflation. In our view, history has repeatedly demonstrated that most financial
assets do best in a low-inflation environment. What's more, we believe that the
move to higher interest rates should be temporary.
1 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
PRESIDENT'S LETTER
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1999
2 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[photo]
Portfolio Management
Team (l to r)
George Evans
Michael Levine
David Negri
Richard Rubinstein
Q How did the Fund perform during the one-year period that ended September 30,
1999?
A. Overall, we were pleased with the performance of Oppenheimer Multiple
Strategies Fund, as it met its objective of providing total return consistent
with preservation of principal.
Can you describe the market environment over the last year?
During the latter part of 1998 and the first quarter of 1999, the stock market
continued to advance. But the market's rally was very deceiving. To a large
extent, gains were mostly limited to a few very large growth companies and the
technology sector. This "narrow" rally disguised the lackluster performance of
many stocks.
The trend abruptly changed course during the second quarter of 1999, as
investors began favoring economically sensitive, smaller capitalization, and
more value-oriented stocks. This "broadening" of the market's rally was seen as
very positive for the health of the stock market. With investors seeking a wider
universe of stocks for their portfolios, more companies were able to benefit
from the market's ascent.
During the third quarter of 1999, we've seen the stock market experience
yet another shift. With the ongoing strength of the U.S. economy, there have
been concerns over an increase in inflation. As a result, the Federal Reserve
Board raised short-term interest rates twice during the summer. Investors now
appear preoccupied with the future direction of interest rates.
3 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
What was your investment strategy throughout the period?
Even during the market's narrow rally we were optimistic about the prospects of
our diversified portfolio. In particular, we believed that our stock holdings
would provide excellent returns once the market began to focus on their
underlying values. By sticking to our convictions and not overreacting to
short-term events, we were able to reap the benefits when the stock market rally
broadened--especially with our value stocks.
How was the bond portion of the portfolio managed?
We continue to broadly diversify the bond portion of the portfolio among U.S.
government, high yield corporate and foreign bonds in order to take advantage of
different investment opportunities as they arise. This diversification strategy
has worked well for the Fund, as we have been able to generate extra yield and
temper risk. In the U.S. government market we have emphasized Treasuries, among
high yield bonds our largest exposure was in the communications sector, and our
foreign bonds were dominated by dollar-linked and selective emerging market
debt. In recent months, we have used a portion of our cash position to increase
our position in U.S. Treasuries. In doing so we were able to lock in the higher
yields of a rising interest rate environment.
What are some stocks that have performed well for the Fund?
Many of our technology stocks were strong performers over the last year. Two
holdings that have performed particularly well were IBM Corp. and Analog
Devices, Inc. IBM Corp.'s strong sales have helped it surpass Wall Street's
earnings expectations and generate very strong returns.
[callout]
"By sticking to our convictions and not overreacting to short-term events, we
were able to reap the benefits when the stock market rally broadened--
especially with our value stocks."
[end callout]
4 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
Analog Devices, Inc. is one of a handful of companies that produce Digital
Signal Processor, or DSP, chips. These chips combine analog and digital chips in
a single unit. Demand for the firm's products suffered during last year's
economic crisis in Asia. But, just as many Asian economies have rebounded, so
has Analog's sales. With few competitors and high profit margins, demand for DSP
chips has led to record revenues for Analog Devices, Inc.
Were there any areas that did not live up to your expectations?
The Fund's investments in Argentinean Brady Bonds did not perform as we had
expected. Brady Bonds are U.S.-dollar denominated bonds issued by Latin American
governments and secured by the U.S. Federal Reserve Bank. We believed
Argentina's vast resources could help it withstand their economic difficulties
that occurred as a result of last year's Asian economic crisis. This did not
prove to be the case, as economic problems in neighboring countries, rumors of
an Argentinean currency default, and uncertainty surrounding Argentina's
upcoming elections adversely affected performance.
What is your outlook for the economy and the Fund over the coming months?
While the economy still exhibits significant strength, we expect to see slower
growth as we move into the year 2000. This could occur for a variety of reasons.
Consumer spending has been exceptionally strong for quite some time, and growing
debt levels could make that difficult to sustain. In addition, with excess
capacity in much of the world, demand for U.S. exports has fallen. While we
don't anticipate a recession, we would expect to see growth rates in the United
States fall modestly in the future.
1. See page 10 for further details.
[callout]
Average Annual
Total Returns
For the Periods Ended 9/30/99(1)
Class A
1-Year 5-Year 10-Year
- --------------------------
9.60% 11.93% 9.93%
Class B Since
1-Year 5-Year Inception
- -------------------------
10.35% N/A 11.19%
Class C Since
1-Year 5-Year Inception
- -------------------------
14.28% 12.32% 10.80%
[end callout]
5 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
Given our outlook, we are satisfied with the Fund's current portfolio. We remain
highly diversified, and believe that our disciplined investment approach will
continue to serve our shareholders well. These are just two reasons why
Oppenheimer Multiple Strategies Fund is part of The Right Way to
Invest.
Top 10 Stock Holdings(2)
- -----------------------------------------------------------
Chase Manhattan Corp. 1.8%
- -----------------------------------------------------------
Bank of America Corp. 1.7
- -----------------------------------------------------------
CBS Corp. 1.0
- -----------------------------------------------------------
Societe Generale 0.9
- -----------------------------------------------------------
Analog Devices, Inc. 0.8
- -----------------------------------------------------------
Philip Morris Cos., Inc. 0.7
- -----------------------------------------------------------
MCI WorldCom, Inc. 0.7
- -----------------------------------------------------------
International Game Technology 0.6
- -----------------------------------------------------------
Novell, Inc. 0.6
- -----------------------------------------------------------
Centocor, Inc. 0.6
Top 5 Common Stock Industries(2)
- -----------------------------------------------------------
Banks 6.5%
- -----------------------------------------------------------
Electronics 5.8
- -----------------------------------------------------------
Computer Hardware 3.8
- -----------------------------------------------------------
Healthcare/Drugs 3.2
- -----------------------------------------------------------
Leisure & Entertainment 3.0
[side callout]
Asset Allocation(2)
[pie chart]
Stocks 51.9%
Bonds 41.2
Cash
Equivalents 6.9
[end side callout]
2. Portfolio is subject to change. Percentages are as of September 30, 1999, and
are based on total market value of investments.
6 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, 1999, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index and narrower market index.
Management's discussion of performance. During the fiscal year that ended
September 30, 1999, Oppenheimer Multiple Strategies Fund benefited from the
stock market's rally during the second quarter of 1999. The Fund's investment in
many value and technology stocks also enhanced performance. The Fund's
diversification strategy among its bond holdings helped to generate incremental
yield. In addition, the Fund used the rising interest rate environment as an
opportunity to lock in higher yield through its increased exposure to U.S.
Treasuries. However, foreign economic troubles caused our holdings of
Argentina's Brady Bonds to perform poorly. The Fund continued to meet its
objective of providing total return consistent with preservation of principal
for its shareholders. The Fund's portfolio holdings, allocation and 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, 1999. In the case of Class A shares,
performance is measured over a ten-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 maximum
initial sales charge on Class A shares, the applicable contingent deferred sales
charge on Class B and Class C shares, and reinvestment of all dividends and
capital gains distributions.
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: 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 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. This 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.
7 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
[plot points for Class A]
<TABLE>
<CAPTION>
Class A
Oppenheimer Multiple Lehman Brothers
Strategies Fund Class A S&P 500 Index Aggregate Bond Index
<S> <C> <C> <C>
12/88 9425 10000 10000
12/89 11141 12301 11453
12/90 11244 11920 12479
12/91 12894 15543 14476
12/92 13865 16726 15548
12/93 16125 18410 17064
12/94 15869 18651 16566
12/95 19485 25649 19626
9/96 21673 29104 19747
9/97 27190 40865 21665
9/98 25910 44572 24158
9/99 30130 56952 24070
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 9/30/99(2)
1-Year 9.60% 5-Year 11.93% 10-Year 9.93%
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
[plot points for Class B]
<TABLE>
<CAPTION>
Class B
Oppenheimer Multiple Lehman Brothers
Strategies Fund Class A S&P 500 Index Aggregate Bond Index
<S> <C> <C> <C>
8/95 10000 10000 10000
12/95 10444 11049 10528
9/96 11527 12537 10592
9/97 14331 17603 11621
9/98 13544 19200 12959
9/99 15423 24532 12911
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 9/30/99(2)
1-Year 10.35% Life 11.19%
8 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
[plot points for Class C]
<TABLE>
<CAPTION>
Class C
Oppenheimer Multiple Lehman Brothers
Strategies Fund Class A S&P 500 Index Aggregate Bond Index
<S> <C> <C> <C>
12/1/93 10000 10000 10000
12/93 10218 10121 10054
12/94 9963 10253 9761
12/95 12124 14101 11564
9/96 13403 16000 11635
9/97 16676 22466 12765
9/98 15771 25404 14235
9/99 18179 31309 14183
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 9/30/99(2)
1-Year 14.28% 5-Year 12.32% Life 10.80%
The performance information for both indices in the graphs begins on 12/31/88
for Class A, 8/31/95 for Class B and 11/30/93 for Class C.
1. The Fund's fiscal year end has changed from 12/31 to 9/30.
2. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
NOTES
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.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
Class A shares were first publicly offered on 4/24/87. The average annual total
returns are shown net of the applicable 5.75% maximum initial sales charge. 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 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 2% 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 2%
contingent deferred sales charge. Class B shares are subject to an annual 0.75%
asset-based sales charge.
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. Class 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.
10 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
Financials
11 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTSTMENTS September 30, 1999
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
====================================================================================
<S> <C> <C>
Common Stocks--51.1%
- ------------------------------------------------------------------------------------
Basic Materials--2.7%
- ------------------------------------------------------------------------------------
Chemicals--1.6%
Bayer AG, Sponsored ADR 80,000 $ 3,173,656
- ------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co.(1) 24,757 1,507,082
- ------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 74,000 2,146,000
- ------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 70,000 3,613,750
- ------------------------------------------------------------------------------------
Praxair, Inc.(1) 38,000 1,748,000
-------------
12,188,488
- ------------------------------------------------------------------------------------
Metals--0.4%
De Beers Consolidated Mines Ltd., ADR 100,000 2,700,000
- ------------------------------------------------------------------------------------
Paper--0.7%
MacMillan Bloedel Ltd. 218,561 3,421,648
- ------------------------------------------------------------------------------------
Wausau-Mosinee Paper Corp. 136,000 1,649,000
-------------
5,070,648
- ------------------------------------------------------------------------------------
Capital Goods--1.5%
- ------------------------------------------------------------------------------------
Aerospace/Defense--0.1%
BE Aerospace, Inc.(2) 67,500 805,781
- ------------------------------------------------------------------------------------
Electrical Equipment--0.2%
Honeywell, Inc.(1) 16,000 1,781,000
- ------------------------------------------------------------------------------------
Industrial Services--0.2%
Service Corp. International 174,000 1,837,875
- ------------------------------------------------------------------------------------
Manufacturing--1.0%
Deere & Co. 37,000 1,431,437
- ------------------------------------------------------------------------------------
Equitable Bag, Inc.(2,3) 1,861 1,861
- ------------------------------------------------------------------------------------
Hexcel Corp.(2) 210,000 1,220,625
- ------------------------------------------------------------------------------------
Pall Corp. 158,000 3,663,625
- ------------------------------------------------------------------------------------
Tenneco, Inc. 65,000 1,105,000
- ------------------------------------------------------------------------------------
Tyco International Ltd. 123 12,700
-------------
7,435,248
- ------------------------------------------------------------------------------------
Communication Services--1.5%
- ------------------------------------------------------------------------------------
Telecommunications: Long Distance--0.8%
AT&T Corp. 30,000 1,305,000
- ------------------------------------------------------------------------------------
MCI WorldCom, Inc.(2) 67,500 4,851,562
-------------
6,156,562
</TABLE>
12 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Telephone Utilities--0.7%
GTE Corp. 20,000 $ 1,537,500
- ------------------------------------------------------------------------------------
SBC Communications, Inc. 64,000 3,268,000
- ------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar) 26,250,000 293,945
- ------------------------------------------------------------------------------------
Telesp Participacoes SA 19,200,000 196,000
-------------
5,295,445
- ------------------------------------------------------------------------------------
Telecommunications: Wireless--0.0%
Telesp Celular Participacoes SA 49,150,000 268,789
- ------------------------------------------------------------------------------------
Consumer Cyclicals--6.9%
- ------------------------------------------------------------------------------------
Autos & Housing--1.9%
Dana Corp. 65,000 2,413,125
- ------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 591,368 1,662,076
- ------------------------------------------------------------------------------------
Lear Corp.(2) 81,000 2,850,187
- ------------------------------------------------------------------------------------
Owens Corning 114,000 2,472,375
- ------------------------------------------------------------------------------------
Southdown, Inc. 40,300 2,156,050
- ------------------------------------------------------------------------------------
Toll Brothers, Inc.(2) 65,000 1,239,062
- ------------------------------------------------------------------------------------
Wolverine Tube, Inc.(2) 65,000 1,007,500
-------------
13,800,375
- ------------------------------------------------------------------------------------
Consumer Services--0.1%
Alterra Healthcare Corp.(2) 120,000 1,065,000
- ------------------------------------------------------------------------------------
Leisure & Entertainment--2.9%
Berjaya Sports Toto Berhad(3) 200,000 423,684
- ------------------------------------------------------------------------------------
Brunswick Corp. 80,000 1,990,000
- ------------------------------------------------------------------------------------
Callaway Golf Co. 225,000 2,742,187
- ------------------------------------------------------------------------------------
Host Marriott Corp. 205,000 1,947,500
- ------------------------------------------------------------------------------------
International Game Technology 257,500 4,635,000
- ------------------------------------------------------------------------------------
Mattel, Inc. 57,000 1,083,000
- ------------------------------------------------------------------------------------
Mirage Resorts, Inc.(2) 90,000 1,265,625
- ------------------------------------------------------------------------------------
Nintendo Co. Ltd. 23,900 3,811,609
- ------------------------------------------------------------------------------------
Shimano, Inc. 165,000 3,959,566
-------------
21,858,171
- ------------------------------------------------------------------------------------
Media--0.2%
South China Morning Post Holdings Ltd. 2,480,000 1,660,187
- ------------------------------------------------------------------------------------
Retail: General--0.8%
Federated Department Stores, Inc.(2) 54,000 2,359,125
- ------------------------------------------------------------------------------------
Neiman Marcus Group, Inc.(2) 60,000 1,402,500
- ------------------------------------------------------------------------------------
Saks, Inc.(2) 136,000 2,065,500
-------------
5,827,125
</TABLE>
13 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Retail: Specialty--0.5%
AutoZone, Inc.(2) 65,000 $ 1,824,062
- ------------------------------------------------------------------------------------
Borders Group, Inc.(2) 110,000 1,615,625
- ------------------------------------------------------------------------------------
Gap, Inc. (The) 20,000 640,000
-------------
4,079,687
- ------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.5%
Jones Apparel Group, Inc.(2) 121,000 3,478,750
- ------------------------------------------------------------------------------------
Consumer Staples--5.2%
- ------------------------------------------------------------------------------------
Beverages--0.5%
Coca-Cola Enterprises, Inc. 62,700 1,414,669
- ------------------------------------------------------------------------------------
Diageo plc 192,840 1,970,635
-------------
3,385,304
- ------------------------------------------------------------------------------------
Broadcasting--1.8%
CBS Corp.(1,2) 160,000 7,400,000
- ------------------------------------------------------------------------------------
MediaOne Group, Inc.(2) 35,000 2,390,937
RCN Corp.(2) 85,000 3,485,000
-------------
13,275,937
- ------------------------------------------------------------------------------------
Entertainment--0.6%
CBRL Group, Inc. 111,000 1,720,500
- ------------------------------------------------------------------------------------
Time Warner, Inc. 46,000 2,794,500
-------------
4,515,000
- ------------------------------------------------------------------------------------
Food--0.6%
Groupe Danone 12,948 3,150,928
- ------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 11,000 1,033,601
-------------
4,184,529
- ------------------------------------------------------------------------------------
Household Goods--1.0%
Avon Products, Inc. 47,500 1,178,594
- ------------------------------------------------------------------------------------
Fort James Corp. 72,000 1,921,500
- ------------------------------------------------------------------------------------
Rexall Sundown, Inc.(2) 140,000 1,723,750
- ------------------------------------------------------------------------------------
Wella AG 93,210 2,481,716
- ------------------------------------------------------------------------------------
Wella AG, Preference 9,100 271,362
------------
7,576,922
</TABLE>
14 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Tobacco--0.7%
Philip Morris Cos., Inc. 147,500 $ 5,042,656
- ------------------------------------------------------------------------------------
Energy--3.0%
- ------------------------------------------------------------------------------------
Energy Services--1.2%
Input/Output, Inc.(2) 298,000 1,974,250
- ------------------------------------------------------------------------------------
Santa Fe International Corp. 121,000 2,609,062
- ------------------------------------------------------------------------------------
Schlumberger Ltd.(1) 36,000 2,243,250
- ------------------------------------------------------------------------------------
Transocean Offshore, Inc. 59,000 1,806,875
-------------
8,633,437
- ------------------------------------------------------------------------------------
Oil: Domestic--1.0%
Conoco, Inc., Cl. B 33,166 907,919
- ------------------------------------------------------------------------------------
Kerr-McGee Corp. 47,000 2,587,937
- ------------------------------------------------------------------------------------
Unocal Corp. 105,000 3,891,562
-------------
7,387,418
- ------------------------------------------------------------------------------------
Oil: International--0.8%
Petroleo Brasileiro SA, Preference 3,330,000 513,375
- ------------------------------------------------------------------------------------
Talisman Energy, Inc.(2) 100,090 2,979,883
- ------------------------------------------------------------------------------------
Total Fina SA, Sponsored ADR 33,000 2,093,437
-------------
5,586,695
- ------------------------------------------------------------------------------------
Financial--10.9%
- ------------------------------------------------------------------------------------
Banks--6.4%
ABN Amro Holding NV 77,000 1,730,306
- ------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 150,000 996,199
- ------------------------------------------------------------------------------------
Bank of America Corp.(1) 225,000 12,529,687
- ------------------------------------------------------------------------------------
Bank One Corp. 62,500 2,175,781
- ------------------------------------------------------------------------------------
Chase Manhattan Corp. 180,000 13,567,500
- ------------------------------------------------------------------------------------
UniCredito Italiano SpA 620,000 3,030,777
- ------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 17,000 1,942,250
- ------------------------------------------------------------------------------------
Societe Generale 33,000 6,800,558
- ------------------------------------------------------------------------------------
UBS AG 5,600 1,578,569
- ------------------------------------------------------------------------------------
Wells Fargo Co. 90,000 3,566,250
-------------
47,917,877
</TABLE>
15 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial--1.0%
- ------------------------------------------------------------------------------------
American Express Co.(1) 13,500 $ 1,817,438
- ------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 42,500 2,855,469
- ------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.(1) 32,000 2,854,000
-------------
7,526,907
- ------------------------------------------------------------------------------------
Insurance--0.9%
ACE Ltd. 164,200 2,781,138
- ------------------------------------------------------------------------------------
Skandia Forsakrings AB 170,000 3,545,987
-------------
6,327,125
- ------------------------------------------------------------------------------------
Real Estate Investment Trusts--2.6%
Archstone Communities Trust 95,000 1,834,688
- ------------------------------------------------------------------------------------
Avalonbay Communities, Inc. 60,000 2,032,500
- ------------------------------------------------------------------------------------
Brandywine Realty Trust 105,000 1,706,250
- ------------------------------------------------------------------------------------
Camden Property Trust 65,000 1,746,875
- ------------------------------------------------------------------------------------
CarrAmerica Realty Corp. 75,000 1,645,313
- ------------------------------------------------------------------------------------
Chastain Capital Corp.(2) 184,000 1,276,500
- ------------------------------------------------------------------------------------
Chelsea GCA Realty, Inc. 65,000 2,055,625
- ------------------------------------------------------------------------------------
Cornerstone Properties, Inc. 102,000 1,555,500
- ------------------------------------------------------------------------------------
Developers Diversified Realty Corp. 100,000 1,400,000
- ------------------------------------------------------------------------------------
Horizon Group Properties, Inc.(2) 717 2,510
- ------------------------------------------------------------------------------------
JDN Realty Corp. 100,000 2,050,000
- ------------------------------------------------------------------------------------
Post Properties, Inc. 50,000 1,965,625
-------------
19,271,386
- ------------------------------------------------------------------------------------
Healthcare--4.3%
- ------------------------------------------------------------------------------------
Healthcare/Drugs--3.2%
Abbott Laboratories 54,000 1,984,500
- ------------------------------------------------------------------------------------
American Home Products Corp. 68,000 2,822,000
- ------------------------------------------------------------------------------------
AstraZeneca Group plc 90,810 3,782,827
- ------------------------------------------------------------------------------------
Centocor, Inc.(1,2) 70,000 4,099,375
- ------------------------------------------------------------------------------------
Merck & Co., Inc. 35,000 2,268,438
- ------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 157,000 2,884,875
- ------------------------------------------------------------------------------------
Novartis AG 2,500 3,708,517
- ------------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(4) 20,000 203,000
- ------------------------------------------------------------------------------------
SmithKline Beecham plc, Cl. A, Sponsored ADR 39,000 2,247,375
-------------
24,000,907
</TABLE>
16 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Healthcare/Supplies & Services--1.1%
Acuson Corp.(2) 216,000 $ 2,754,000
- ------------------------------------------------------------------------------------
Manor Care, Inc.(2) 105,000 1,804,688
- ------------------------------------------------------------------------------------
St. Jude Medical, Inc.(2) 42,000 1,323,000
- ------------------------------------------------------------------------------------
United Healthcare Corp.(1) 45,400 2,210,413
-------------
8,092,101
- ------------------------------------------------------------------------------------
Technology--13.2%
- ------------------------------------------------------------------------------------
Computer Hardware--3.8%
3Com Corp.(2) 88,000 2,530,000
- ------------------------------------------------------------------------------------
Canon, Inc. 81,000 2,358,411
- ------------------------------------------------------------------------------------
Compaq Computer Corp. 32,000 734,000
- ------------------------------------------------------------------------------------
Hewlett-Packard Co.(1) 20,000 1,840,000
- ------------------------------------------------------------------------------------
International Business Machines Corp.(1) 171,000 20,755,125
-------------
28,217,536
- ------------------------------------------------------------------------------------
Computer Services--0.3%
barnesandnoble.com, inc.(2) 57,500 1,110,469
- ------------------------------------------------------------------------------------
First Data Corp.(1) 18,000 789,750
-------------
1,900,219
- ------------------------------------------------------------------------------------
Computer Software--2.3%
Computer Associates International, Inc.(1) 65,700 4,024,125
- ------------------------------------------------------------------------------------
Compuware Corp.(1,2) 79,900 2,082,394
- ------------------------------------------------------------------------------------
Electronic Arts, Inc.(1,2) 12,400 897,450
- ------------------------------------------------------------------------------------
Novell, Inc.(1,2) 210,000 4,344,375
- ------------------------------------------------------------------------------------
Oracle Corp.(2) 10,000 455,000
- ------------------------------------------------------------------------------------
Peoplesoft, Inc.(2) 100,000 1,693,750
- ------------------------------------------------------------------------------------
Rational Software Corp.(1,2) 60,800 1,780,300
- ------------------------------------------------------------------------------------
Sabre Holdings Corp.(1,2) 45,000 1,935,000
-------------
17,212,394
</TABLE>
17 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
Communications Equipment--0.5%
Cisco Systems, Inc.(1,2) 59,000 $ 4,045,188
- ------------------------------------------------------------------------------------
Electronics--5.8%
Analog Devices, Inc.(2) 121,000 6,201,250
- ------------------------------------------------------------------------------------
ASM Lithography Holding NV(1,2) 29,600 1,985,050
- ------------------------------------------------------------------------------------
Coherent, Inc.(2) 115,000 2,565,938
- ------------------------------------------------------------------------------------
General Motors Corp., Cl. H(2) 47,800 2,736,550
- ------------------------------------------------------------------------------------
Grainger (W.W.), Inc. 29,000 1,393,813
- ------------------------------------------------------------------------------------
Intel Corp.(1) 228,000 16,943,250
- ------------------------------------------------------------------------------------
Keyence Corp. 13,000 3,479,853
- ------------------------------------------------------------------------------------
Methode Electronics, Inc., Cl. A 143,000 2,699,125
- ------------------------------------------------------------------------------------
STMicroelectronics NV, NY Shares(1) 42,000 3,108,000
- ------------------------------------------------------------------------------------
Teradyne, Inc.(1,2) 48,000 1,692,000
--------------
42,804,829
- ------------------------------------------------------------------------------------
Photography--0.5%
Xerox Corp.(1) 80,000 3,355,000
- ------------------------------------------------------------------------------------
Transportation--0.9%
- ------------------------------------------------------------------------------------
Air Transportation--0.2%
Alaska Air Group, Inc.(1,2) 37,500 1,525,781
- ------------------------------------------------------------------------------------
Railroads & Truckers--0.3%
- ------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 81,000 2,227,500
- ------------------------------------------------------------------------------------
Shipping--0.4%
Stolt-Nielsen SA 174,000 2,599,125
- ------------------------------------------------------------------------------------
Utilities--1.0%
- ------------------------------------------------------------------------------------
Electric Utilities--1.0%
Allegheny Energy, Inc. 50,500 1,606,531
- ------------------------------------------------------------------------------------
Reliant Energy, Inc. 94,000 2,543,875
- ------------------------------------------------------------------------------------
Southern Co. 138,000 3,553,500
--------------
7,703,906
--------------
Total Common Stocks (Cost $264,231,044) 379,624,810
====================================================================================
Preferred Stocks--0.1%
- ------------------------------------------------------------------------------------
Spanish Broadcasting Systems, Inc., 14.25% Cum. Exchangeable,
Non-Vtg.(4,5) (Cost $599,721) 560 590,100
</TABLE>
18 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
====================================================================================
<S> <C> <C>
Other Securities--0.6%
- ------------------------------------------------------------------------------------
Budget Group, Inc., 6.25% Cum. Cv. Term Income Deferred
Equity Securities, Non-Vtg.(2,4) 40,000 $ 1,205,000
- ------------------------------------------------------------------------------------
Monsanto Co., 6.50% Cv. Adjustable Conversion-rate
Equity Security 35,500 1,278,000
- ------------------------------------------------------------------------------------
Qwest Trends Trust, 5.75% Cv.(2,4) 37,500 1,889,062
-------------
Total Other Securities (Cost $5,024,328) 4,372,062
Units
- ------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
- ------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/15/03(3) 300 18,037
- ------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 2,000 24,250
- ------------------------------------------------------------------------------------
Hyperion Telecommunications Inc. Wts., Exp. 4/15/01 550 68,819
- ------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/31/02 300 --
-------------
Total Rights, Warrants and Certificates (Cost $0) 111,106
Face
Amount
- ------------------------------------------------------------------------------------
Mortgage-Backed Obligations--4.7%
- ------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Collateralized Mtg.
Obligations, Gtd. Multiclass Mtg. Participation
Certificates, Series 151, Cl. F, 9%, 5/15/21 $ 573,050 596,328
- ------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg.
Participation Certificates, 7%, 5/1/29 6,812,304 6,700,651
- ------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only
Stripped Mtg.-Backed Security, Series 199,
Cl. IO, 24.757%, 8/1/28(7) 1,448,220 461,168
- ------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
6.50%, 12/1/27-2/1/28 8,797,814 8,440,056
11.50%, 7/1/11 65,560 71,625
- ------------------------------------------------------------------------------------
Government National Mortgage Assn.:
6.875%, 3/20/26 400,409 405,603
7%, 4/15/26 3,101,798 3,051,084
7.50%, 5/15/27 12,821,523 12,874,349
9%, 11/15/08-5/15/09 253,316 266,333
- ------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg.
Pass-Through Certificates, Series 1996-C1,
Cl. F, 7.425%, 2/15/28(3,8) 97,137 71,639
- ------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg.
Pass-Through Certificates, Series 1996-MC1,
Cl. G, 7.15%, 6/15/06(4) 400,000 314,438
- ------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg.
Pass-Through Certificates:
Series 1993-C1, Cl. D, 9.45%, 5/25/24 214,368 212,258
Series 1994-C2, Cl. E, 8%, 4/25/25 734,823 721,160
Series 1994-C2, Cl. G, 8%, 4/25/25 170,180 161,937
- ------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII:
Series 1996-B, Cl. 1, 6.581%, 4/25/26(3) 285,513 195,041
Series 1996-CL, Cl. F, 9.092%, 1/20/06(8) 250,000 190,781
- ------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass
Pass-Through Certificates,
Series 1995-C4, Cl. E, 8.731%, 6/25/26(3,8) 27,688 26,719
-------------
Total Mortgage-Backed Obligations (Cost $34,853,687) 34,761,170
</TABLE>
19 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
=======================================================================================
<S> <C> <C>
U.S. Government Obligations--11.9%
- ---------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 $ 500,000 $ 476,875
6.50%, 11/15/26 360,000 365,850
8.875%, 8/15/17 3,650,000 4,573,906
10.75%, 5/15/03 1,190,000 1,375,566
- ---------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS:
6.30%, 8/15/25(9) 18,000,000 3,634,830
6.53%, 8/15/15(9) 10,000,000 3,578,690
7.10%, 11/15/18(9) 11,000,000 3,189,626
7.31%, 8/15/19(9) 12,000,000 3,314,640
- ---------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.875%, 9/30/02-2/15/04 30,000,000 30,126,570
6.125%, 12/31/01 15,000,000 15,140,625
6.25%, 2/15/03-2/15/07 12,130,000 12,269,438
6.50%, 10/15/06 4,640,000 4,744,400
7.50%, 5/15/02 327,000 341,102
8.50%, 2/15/00 5,500,000 5,572,187
-------------
Total U.S. Government Obligations (Cost $88,715,823) 88,704,305
=======================================================================================
Foreign Government Obligations--18.6%
- ---------------------------------------------------------------------------------------
Argentina--4.4%
Argentina (Republic of) Bonds:
Bonos de Consolidacion de Deudas, Series I,
5.35%, 4/1/01(8) 209,757 202,647
Series L, 6.812%, 3/31/05(8) 11,052,800 9,712,648
- ---------------------------------------------------------------------------------------
Argentina (Republic of) Nts.:
11.75%, 2/12/07(4) [ARP] 150,000 128,276
14.25%, 11/30/02(8) 13,125,000 12,435,937
- ---------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 6%, 3/31/23(8) 16,000,000 10,380,000
-------------
32,859,508
- ---------------------------------------------------------------------------------------
Australia--0.5%
New South Wales Treasury Corp. Gtd. Bonds,
7%, 4/1/04 [AUD] 1,570,000 1,057,123
- ---------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts.,
10.50%, 5/15/03 [AUD] 2,590,000 1,938,538
- ---------------------------------------------------------------------------------------
Queensland Treasury Corp. Global Exchangeable Gtd.
Nts., 8%, 8/14/01 [AUD] 615,000 418,664
-------------
3,414,325
- ---------------------------------------------------------------------------------------
Brazil--3.3%
Brazil (Federal Republic of) Capitalization Bonds,
8%, 4/15/14 26,535,216 16,617,679
- ---------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds,
5.874%, 4/15/06(8) 10,782,500 8,477,741
- ---------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Medium-Term Nts.,
10.85%, 12/9/99(3,8) 10,000 9,975
-------------
25,105,395
</TABLE>
20 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
=======================================================================================
<S> <C> <C>
Bulgaria--0.0%
Bulgaria (Republic of) Interest Arrears Bonds,
6.50%, 7/28/11(8) $ 170,000 $ 120,912
- ---------------------------------------------------------------------------------------
Canada--3.0%
Canada (Government of) Bonds:
6.50%, 6/1/04 [CAD] 13,320,000 9,382,737
7%, 12/1/06 [CAD] 60,000 43,911
8.75%, 12/1/05 [CAD] 495,000 389,893
9.75%, 6/1/01-12/1/01 [CAD] 9,530,000 7,007,768
11.75%, 2/1/03 [CAD] 290,000 233,498
Series A-33, 11.50%, 9/1/00 [CAD] 585,000 421,252
Series WL43, 5.75%, 6/1/29 [CAD] 7,130,000 4,836,173
-------------
22,315,232
- ---------------------------------------------------------------------------------------
Denmark--0.5%
Denmark (Kingdom of) Bonds, 8%, 3/15/06 [DKK] 21,900,000 3,588,924
- ---------------------------------------------------------------------------------------
Finland--0.1%
Finland (Republic of) Bonds, 9.50%, 3/15/04 [FIM] 672,751 854,353
- ---------------------------------------------------------------------------------------
Germany--0.2%
Germany (Republic of) Bonds, Series 94, 6.25%,
1/4/24 [EUR] 1,362,592 1,521,543
- ---------------------------------------------------------------------------------------
Great Britain--1.5%
United Kingdom Treasury Bonds:
7%, 6/7/02 [GBP] 2,415,000 4,048,854
7.25%, 12/7/07 [GBP] 2,400,000 4,272,717
10%, 9/8/03 [GBP] 325,000 602,148
- ---------------------------------------------------------------------------------------
United Kingdom Treasury Nts.:
9.75%, 8/27/02 [GBP] 55,000 98,596
12.50%, 11/21/05 [GBP] 62,000 124,725
13%, 7/14/00 [GBP] 1,050,000 1,823,489
-------------
10,970,529
- ---------------------------------------------------------------------------------------
Italy--0.2%
Italy (Republic of) Treasury Bonds, Buoni del
Tesoro Poliennali:
9%, 10/1/03 [EUR] 100,708 124,394
9.50%, 2/1/01-5/1/01 [EUR] 309,872 356,438
10.50%, 4/1/00-7/15/00 [EUR] 759,190 850,749
-------------
1,331,581
- ---------------------------------------------------------------------------------------
Mexico--0.5%
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 110,000 114,955
- ---------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03 [DEM] 150,000 87,984
16.50%, 9/1/083 [GBP] 35,000 74,358
- ---------------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par Bonds:
Series B, 6.25%, 12/31/19 250,000 184,687
Series W-A, 6.25%, 12/31/19 4,450,000 3,287,437
- ---------------------------------------------------------------------------------------
3,749,421
</TABLE>
21 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
=======================================================================================
<S> <C> <C>
New Zealand--3.2%
New Zealand (Government of) Bonds:
8%, 2/15/01-11/15/06 [NZD] 43,705,000 $ 23,258,899
10%, 3/15/02 [NZD] 1,085,000 609,492
--------------
23,868,391
- ---------------------------------------------------------------------------------------
Norway--0.0%
Norway (Government of) Bonds, 9.50%, 10/31/02 [NOK] 880,000 124,920
- ---------------------------------------------------------------------------------------
Philippines--0.3%
Philippines (Republic of) Bonds, 8.60%, 6/15/27 1,500,000 1,157,700
- ---------------------------------------------------------------------------------------
Philippines (Republic of) Par Bonds, Series B,
6.50%, 12/1/17(10) 1,675,000 1,411,187
--------------
2,568,887
- ---------------------------------------------------------------------------------------
Poland--0.6%
Poland (Republic of) Bonds, 12%, 6/12/01 [PLZ] 18,000,000 4,264,430
- ---------------------------------------------------------------------------------------
South Africa--0.2%
Eskom Sec. Bonds, 11%, 6/1/08 [ZAR] 3,000,000 395,623
- ---------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E168, 11%, 6/1/08 [ZAR] 6,430,000 847,952
- ---------------------------------------------------------------------------------------
South Africa (Republic of) Bonds, 12.50%, 12/21/06 [ZAR] 800,000 119,802
--------------
1,363,377
- ---------------------------------------------------------------------------------------
Spain--0.1%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
10.30%, 6/15/02 [EUR] 235,296 289,532
10.50%, 10/30/03 [EUR] 132,823 172,479
12.25%, 3/25/00 [EUR] 189,919 210,750
--------------
672,761
--------------
Total Foreign Government Obligations (Cost $145,884,307) 138,694,489
=======================================================================================
Loan Participations--0.1%
Colombia (Republic of) 1989-1990 Integrated
Loan Facility Bonds, 6%, 7/1/01(3,8) 142,960 130,808
- ---------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 5.906%, 1/1/09(3,8) 601,666 509,913
-------------
Total Loan Participations (Cost $687,546) 640,721
</TABLE>
22 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Face Market Value
Amount(6) See Note 1
=======================================================================================
<S> <C> <C>
Non-Convertible Corporate Bonds and Notes--5.7%
- ---------------------------------------------------------------------------------------
Adelphia Communications Corp., 10.50% Sr. Unsec.
Nts., Series B, 7/15/04 $ 500,000 $ 523,750
- ---------------------------------------------------------------------------------------
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 885,000 885,000
- ---------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10% Sr. Sub.
Nts., 8/1/09(4) 750,000 690,000
- ---------------------------------------------------------------------------------------
American International Group, Inc., 11.70% Unsec.
Unsub. Bonds, 12/4/01 [ITL] 95,000,000 60,292
- ---------------------------------------------------------------------------------------
AmeriKing, Inc., 10.75% Sr. Nts., 12/1/06 360,000 322,200
- ---------------------------------------------------------------------------------------
AMRESCO, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 123,000
- ---------------------------------------------------------------------------------------
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 500,000 495,000
- ---------------------------------------------------------------------------------------
Aracruz Celulose SA, 10.375% Debs., 1/31/02(4) 320,000 319,200
- ---------------------------------------------------------------------------------------
Blount, Inc., 13% Sr. Sub. Nts., 8/1/09(4) 700,000 725,375
- ---------------------------------------------------------------------------------------
Building Materials Corp. of America, 8.625%
Sr. Nts., Series B, 12/15/06 50,000 47,750
- ---------------------------------------------------------------------------------------
Calpine Corp.:
8.75% Sr. Nts., 7/15/07 650,000 644,312
10.50% Sr. Nts., 5/15/06 225,000 235,969
- ---------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub.
Nts., Series B, 7/15/07 350,000 229,250
- ---------------------------------------------------------------------------------------
Canadaigua Brands, Inc., 8.625% Sr. Unsec. Nts., 8/1/06 750,000 738,750
- ---------------------------------------------------------------------------------------
Celcaribe SA, 13.50% Sr. Sec. Nts., 3/15/04 350,000 253,750
- ---------------------------------------------------------------------------------------
Charter Communication Holdings LLC/Charter Communication
Holdings Capital Corp., 8.625% Sr. Nts., 4/1/09(4) 750,000 712,500
- ---------------------------------------------------------------------------------------
Collins & Aikman Products Co., 11.50% Sr. Unsec.
Sub. Nts., 4/15/06 200,000 193,000
- ---------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20%
Sr. Disc. Debs., 11/15/07(12) 850,000 773,500
- ---------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12%
Sr. Sub. Nts., Series B, 8/1/05 1,300,000 1,085,500
- ---------------------------------------------------------------------------------------
Comunicacion Celular SA, 0%/14.125% Sr. Unsec.
Deferred Bonds, 3/1/05(4,12) 300,000 159,750
- ---------------------------------------------------------------------------------------
Convergent Communications, Inc., 13% Sr. Nts., 4/1/08 500,000 376,250
- ---------------------------------------------------------------------------------------
CSC Holdings, Inc.:
9.875% Sr. Sub. Debs., 2/15/13 250,000 261,875
10.50% Sr. Sub. Debs., 5/15/16 250,000 271,875
- ---------------------------------------------------------------------------------------
Diamond Cable Communications plc, 0%/11.75%
Sr. Disc. Nts., 12/15/05(12) 300,000 268,500
- ---------------------------------------------------------------------------------------
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 100,000 94,500
- ---------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Sec.
Nts., Series E, 5/1/11 250,000 272,141
- ---------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA de CV,
11.875% Nts., 5/30/01 30,000 28,575
- ---------------------------------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285% Sr. Disc.
Debs., Series B, 4/15/10(12) 600,000 429,000
- ---------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Sub. Nts.,
Series B, 7/31/07 990,000 920,700
- ---------------------------------------------------------------------------------------
Fletcher Challenge Finance U.S.A., Inc.,
8.05% Debs., 6/15/03 [NZD] 35,000 18,254
- ---------------------------------------------------------------------------------------
Global Crossing Ltd., 9.625% Sr. Nts., 5/15/08 750,000 776,250
- ---------------------------------------------------------------------------------------
Gothic Production Corp., 11.125% Sr. Sec. Nts.,
Series B, 5/1/05(4) 950,000 821,750
- ---------------------------------------------------------------------------------------
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02 25,000 22,384
- ---------------------------------------------------------------------------------------
Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05 500,000 417,500
</TABLE>
23 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
- ---------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub.
Nts., 7/15/06 $ 200,000 $ 206,500
- ---------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr.
Sec. Nts., Series B, 11/1/03(8) 200,000 207,250
- ---------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc, Zero Coupon
Sr. Disc. Nts., 13.08%, 12/31/09(4,9) 1,000,000 270,000
- ---------------------------------------------------------------------------------------
ICG Holdings, Inc., 0%/12.50% Sr. Sec. Disc. Nts.,
5/1/06(12) 470,000 359,550
- ---------------------------------------------------------------------------------------
Intermedia Communications, Inc., 8.50% Sr. Nts.,
Series B, 1/15/08 500,000 430,000
- ---------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr.
Sub. Nts., Series B, 6/1/05 500,000 516,250
- ---------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr.
Sub. Nts., 2/1/03 500,000 500,000
- ---------------------------------------------------------------------------------------
Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04 400,000 374,000
- ---------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts.,
Series B, 3/15/07(3) 1,000,000 845,000
- ---------------------------------------------------------------------------------------
Lamar Media Corp., 9.625% Sr. Unsec. Sub. Nts., 12/1/06 100,000 101,500
- ---------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 913,500
- ---------------------------------------------------------------------------------------
Loral Space & Communications Ltd., 9.50% Sr.
Nts., 1/15/06 300,000 257,250
- ---------------------------------------------------------------------------------------
Lyondell Chemical Co., 10.875% Sr. Sub. Nts. 5/1/09 500,000 505,000
- ---------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Gtd.
Sr. Sec. Sub. Nts., Series B, 12/30/99(3,11) 38,000 14,915
- ---------------------------------------------------------------------------------------
Meristar Hospitality Corp., 8.75% Sr. Unsec.
Sub. Nts., 8/15/07 500,000 453,750
- ---------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc., 10% Sr. Unsec.
Nts., Series B, 11/15/08 750,000 727,500
- ---------------------------------------------------------------------------------------
Millicom International Cellular SA, 0%/13.50%
Sr. Disc. Nts., 6/1/06(12) 750,000 536,250
- ---------------------------------------------------------------------------------------
Navigator Gas Transport plc, 10.50% First
Priority Ship Mtg. Nts., 6/30/07(3) 500,000 237,500
- ---------------------------------------------------------------------------------------
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,051,217
- ---------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 183,000 190,777
- ---------------------------------------------------------------------------------------
Nortek, Inc., 8.875% Sr. Unsec. Nts.,
Series B, 8/1/08 250,000 236,250
- ---------------------------------------------------------------------------------------
NTL, Inc., 0%/9.75% Sr. Deferred Coupon
Nts., Series B, 4/1/08(12) 500,000 335,000
- ---------------------------------------------------------------------------------------
Ocwen Financial Corp., 11.875% Nts., 10/1/03(3) 325,000 303,875
- ---------------------------------------------------------------------------------------
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 270,000 279,450
11.625% Sr. Nts., Series A, 8/15/06 365,000 377,775
- ---------------------------------------------------------------------------------------
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., Series D, 6/15/07 900,000 832,500
- ---------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 1,000,000 955,000
- ---------------------------------------------------------------------------------------
PSINet, Inc., 10% Sr. Unsec. Nts., Series B, 2/15/05 1,000,000 961,250
- ---------------------------------------------------------------------------------------
Randall's Food Markets, Inc., 9.375% Sr. Sub.
Nts., Series B, 7/1/07(3) 1,315,000 1,439,925
- ---------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 10.625% Second
Priority Sr. Sec. Nts., 4/15/05 500,000 435,000
- ---------------------------------------------------------------------------------------
Revlon Consumer Products Corp.:
8.625% Sr. Unsec. Sub. Nts., 2/1/08 1,045,000 859,512
9% Sr. Nts., 11/1/06 75,000 69,187
- ---------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 10.09%, 3/15/01(9) 260,000 141,700
</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
- --------------------------------------------------------------------------------------
Riverwood International Corp., 10.625% Sr. Unsec.
Nts., 8/1/07 $ 500,000 $ 498,750
- --------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Second Priority
Sr. Sec. Debs., 12/1/07 1,300,000 1,391,000
- --------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts.,
Series B, 5/15/08 750,000 772,500
- --------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,060,000
- --------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8.75% Sr. Sub. Nts., 12/15/07 500,000 471,250
9% Sr. Unsec. Sub. Nts., 7/15/07 375,000 359,062
- --------------------------------------------------------------------------------------
Sterling Chemicals, Inc.:
11.75% Sr. Unsec. Sub. Nts., 8/15/06 670,000 418,750
12.375% Sec. Nts., 7/15/06(4) 400,000 376,000
- --------------------------------------------------------------------------------------
Subic Power Corp.:
9.50% Sr. Sec. Nts., 12/28/08 327,586 294,828
9.50% Sr. Sec. Nts., 12/28/08(4) 65,517 58,966
- --------------------------------------------------------------------------------------
Sun Healthcare Group, Inc., 9.375% Sr. Sub. Nts.,
5/1/08(4,11) 500,000 55,000
- --------------------------------------------------------------------------------------
Telewest Communications plc, 0%/11% Sr. Disc. Debs.,
10/1/07(12) 1,000,000 897,500
- --------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,400,000 1,476,748
- --------------------------------------------------------------------------------------
Trans World Airlines, Inc., 11.50% Sr. Sec. Nts.,
12/15/04 950,000 764,750
- --------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375%
- --------------------------------------------------------------------------------------
Sr. Disc. Nts., Series B, 12/15/03(12) 1,000,000 975,000
- --------------------------------------------------------------------------------------
TV Azteca SA de CV, 10.50% Sr. Nts., Series B, 2/15/07 200,000 155,500
- --------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 500,000 510,000
- --------------------------------------------------------------------------------------
Verio, Inc., 11.25% Sr. Unsec. Nts., 12/1/08 600,000 616,500
- --------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 900,000 884,250
-------------
Total Non-Convertible Corporate Bonds and Notes
(Cost $45,827,554) 42,295,064
======================================================================================
Convertible Corporate Bonds and Notes--0.0%
- --------------------------------------------------------------------------------------
Fletcher Challenge Ltd.:
10% Cv. Unsec. Sub. Nts., 4/30/05 [NZD] 35,000 18,696
14.50% Cv. Sub. Nts., 9/30/00 [NZD] 35,000 19,306
-------------
Total Convertible Corporate Bonds and Notes (Cost $53,094) 38,002
======================================================================================
Repurchase Agreements--6.8%
Repurchase agreement with First Chicago Capital
Markets, 5.29%, dated 9/30/99, to be repurchased at
$50,707,450 on 10/1/99, collateralized by U.S. Treasury
Nts., 5.125%-8%, 10/31/99-2/15/07, with a value of
$32,243,162, U.S. Treasury Bonds, 5.25%-11.75%,
2/15/01-11/15/28, with a value of 19,502,832
(Cost $50,700,000) 50,700,000 50,700,000
- --------------------------------------------------------------------------------------
Total Investments, at Value (Cost $636,577,104) 99.6% 740,531,829
- --------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.4 2,924,196
-----------------------------
Net Assets 100.0% $743,456,025
=============================
</TABLE>
25 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
Shares Expiration Exercise Premium Market Value
Subject to Call Date Price Received See Note 1
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASM Lithography Holding NV 11,200 10/18/99 $ 55.00 $ 41,584 $ 133,000
Alaska Air Group, Inc. 18,500 10/18/99 55.00 85,005 --
American Express Co. 5,000 10/18/99 140.00 65,475 12,500
American Express Co. 8,500 10/18/99 145.00 81,555 8,500
Bank of America Corp. 30,000 1/24/00 90.00 81,597 --
CBS Corp. 48,000 1/24/00 55.00 136,560 54,000
Centocor, Inc. 20,000 1/24/00 60.00 81,897 62,500
Cisco Systems, Inc. 10,000 10/18/99 65.00 47,973 47,500
Cisco Systems, Inc. 5,000 10/18/99 67.50 24,299 15,625
Computer Associates International, Inc. 15,000 1/24/00 65.00 55,798 82,500
Compuware Corp. 15,000 1/24/00 35.00 76,423 18,750
Du Pont (E.I.) De Nemours & Co. 9,000 1/24/00 75.00 53,728 8,438
Electronic Arts, Inc. 12,400 12/20/99 65.00 54,703 142,600
First Data Corp. 18,000 11/22/99 45.00 64,710 38,250
Hewlett-Packard Co. 20,000 2/22/00 125.00 111,896 33,750
Honeywell, Inc. 8,000 11/22/99 130.00 41,759 4,000
Intel Corp. 27,000 10/18/99 75.00 100,437 77,625
International Business Machines Corp. 13,000 1/24/00 150.00 120,231 29,250
International Business Machines Corp. 6,000 10/18/99 100.00 35,159 126,000
Morgan Stanley Dean Witter & Co. 7,000 10/18/99 120.00 54,040 --
Novell, Inc. 63,000 11/22/99 30.00 179,229 15,750
Praxair, Inc. 7,500 1/24/00 55.00 25,494 7,031
Rational Software Corp. 11,300 1/24/00 40.00 57,906 14,831
Rational Software Corp. 28,700 10/18/99 35.00 150,572 8,969
STMicroelectronics NV, NY Shares 8,000 10/18/99 75.00 41,759 22,000
Sabre Holdings Corp. 14,000 11/22/99 60.00 141,824 --
Schlumberger Ltd. 18,000 11/22/99 70.00 73,710 23,625
Teradyne, Inc. 10,000 1/24/00 37.50 66,723 42,500
United Healthcare Corp. 15,000 12/20/99 75.00 59,548 --
Xerox Corp. 16,000 1/24/00 70.00 57,518 --
Xerox Corp. 16,000 10/18/99 65.00 81,520 --
---------------------------
$2,350,632 $1,029,494
===========================
</TABLE>
26 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
2. Non-income-producing security.
3. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $8,518,417 or 1.15% of the Fund's net
assets as of September 30, 1999.
5. Interest or dividend is paid-in-kind.
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 EUR Euro
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. Non-income-producing--issuer is in default.
12. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
See accompanying Notes to Financial Statements
27 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES September 30, 1999
<TABLE>
<S> <C>
==========================================================================================
Assets
Investments, at value (cost $636,577,104)--see accompanying statement $ 740,531,829
- ------------------------------------------------------------------------------------------
Cash 855,410
- ------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 7,300,462
Investments sold 1,164,571
Shares of beneficial interest sold 268,388
Other 50,777
---------------
Total assets 750,171,437
==========================================================================================
Liabilities
Options written, at value (premiums received $2,350,632)--
see accompanying statement--Note 6 1,029,494
- ------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,683,738
Shares of beneficial interest redeemed 1,123,379
Distribution and service plan fees 349,428
Trustees' compensation--Note 1 201,158
Shareholder reports 140,634
Transfer and shareholder servicing agent fees 121,720
Custodian fees 7,116
Other 58,745
---------------
Total liabilities 6,715,412
==========================================================================================
Net Assets $ 743,456,025
===============
==========================================================================================
Composition of Net Assets
- ------------------------------------------------------------------------------------------
Paid-in capital $ 583,973,731
- ------------------------------------------------------------------------------------------
Undistributed net investment income 1,169,787
- ------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign
currency transactions 53,031,809
- ------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 105,280,698
---------------
Net assets $ 743,456,025
===============
</TABLE>
28 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
==========================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$635,602,875 and 45,190,971 shares of beneficial interest outstanding) $14.06
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $14.92
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $68,875,196
and 4,944,518 shares of beneficial interest outstanding) $13.93
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $38,977,954
and 2,789,501 shares of beneficial interest outstanding) $13.97
</TABLE>
See accompanying Notes to Financial Statements.
29 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended September 30, 1999
<TABLE>
<S> <C>
====================================================================================
Investment Income
Interest (net of foreign withholding taxes of $1,005) $ 30,334,128
- ------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $22,799) 6,857,753
--------------
Total income 37,191,881
====================================================================================
Expenses
Management fees--Note 4 5,491,251
- ------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,057,289
Class B 736,848
Class C 437,267
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,057,963
- ------------------------------------------------------------------------------------
Shareholder reports 315,793
- ------------------------------------------------------------------------------------
Custodian fees and expenses 113,507
- ------------------------------------------------------------------------------------
Trustees' compensation--Note 1 61,143
- ------------------------------------------------------------------------------------
Legal, auditing and other professional fees 60,292
- ------------------------------------------------------------------------------------
Registration and filing fees 34,126
- ------------------------------------------------------------------------------------
Other 103,548
--------------
Total expenses 9,469,027
Less expenses paid indirectly--Note 1 (24,298)
--------------
Net expenses 9,444,729
====================================================================================
Net Investment Income 27,747,152
====================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (including premiums on options exercised) 64,703,806
Closing and expiration of option contracts written--Note 6 941,256
Foreign currency transactions (1,343,964)
--------------
Net realized gain 64,301,098
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 25,669,430
Translation of assets and liabilities denominated in
foreign currencies (1,284,527)
--------------
Net change 24,384,903
--------------
Net realized and unrealized gain 88,686,001
====================================================================================
Net Increase in Net Assets Resulting from Operations $116,433,153
==============
</TABLE>
See accompanying Notes to Financial Statements.
30 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended September 30, 1999 1998
====================================================================================
<S> <C> <C>
Operations
- ------------------------------------------------------------------------------------
Net investment income $ 27,747,152 $ 26,538,252
- ------------------------------------------------------------------------------------
Net realized gain 64,301,098 65,263,388
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 24,384,903 (128,593,549)
-----------------------------
Net increase (decrease) in net assets resulting
from operations 116,433,153 (36,791,909)
====================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (24,477,711) (22,551,335)
Class B (2,100,116) (1,840,926)
Class C (1,206,196) (1,269,307)
- ------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (54,659,946) (55,838,257)
Class B (6,391,151) (5,628,562)
Class C (3,772,922) (4,059,155)
====================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A (9,204,354) 20,258,200
Class B (6,385,889) 17,065,629
Class C (11,126,627) 7,078,031
====================================================================================
Net Assets
Total decrease (2,891,759) (83,577,591)
- ------------------------------------------------------------------------------------
Beginning of period 746,347,784 829,925,375
-----------------------------
End of period (including undistributed net
investment income of $1,169,787 and $2,205,024,
respectively) $743,456,025 $746,347,784
=============================
</TABLE>
See accompanying Notes to Financial Statements.
31 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Year
Ended Ended
Sept. 30, Dec. 31,
Class A 1999 1998 1997 1996(1) 1995 1994
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.69 $16.17 $14.09 $13.07 $11.52 $13.05
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .54 .51 .50 .49 .52 .54
Net realized and unrealized gain (loss) 1.59 (1.22) 2.88 .96 2.08 (.75)
--------------------------------------------------------------------
Total income (loss) from
investment operations 2.13 (.71) 3.38 1.45 2.60 (.21)
- ------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.54) (.49) (.51) (.43) (.49) (.53)
Distributions from net realized gain (1.22) (1.28) (.79) -- (.56) (.79)
--------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.76) (1.77) (1.30) (.43) (1.05) (1.32)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.06 $13.69 $16.17 $14.09 $13.07 $11.52
====================================================================
========================================================================================================================
Total Return, at Net Asset Value(2) 16.29% (4.71)% 25.46% 11.22% 22.79% (1.59)%
========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $635,603 $624,895 $712,470 $264,359 $251,353 $237,771
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $660,113 $699,665 $395,436 $256,765 $249,660 $260,767
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 3.70% 3.34% 3.30% 4.73% 3.97% 4.10%
Expenses 1.09% 1.08%(4) 1.16%(4) 1.21%(4) 1.15%(4) 1.09%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 15% 59% 51% 32% 29% 32%
</TABLE>
1. For the nine months ended September 30, 1996. The Fund changed its fiscal
year end from December 31 to September 30.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $105,610,305 and $187,048,362, respectively.
See accompanying Notes to Financial Statements.
32 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
<TABLE>
<CAPTION>
Year Period
Ended Ended
Sept. 30, Dec. 31,
Class B 1999 1998 1997 1996(1) 1995(6)
=========================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.57 $16.04 $14.01 $13.03 $13.28
- ---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .41 .38 .45 .41 .17
Net realized and unrealized gain (loss) 1.58 (1.20) 2.78 .93 .41
------------------------------------------------------
Total income (loss) from
investment operations 1.99 (.82) 3.23 1.34 .58
- ---------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.41) (.37) (.41) (.36) (.27)
Distributions from net realized gain (1.22) (1.28) (.79) -- (.56)
------------------------------------------------------
Total dividends and distributions
to shareholders (1.63) (1.65) (1.20) (.36) (.83)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.93 $13.57 $16.04 $14.01 $13.03
=======================================================
=========================================================================================================
Total Return, at Net Asset Value(2) 15.35% (5.49)% 24.34% 10.37% 4.44%
=========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $68,875 $73,036 $67,916 $5,996 $1,265
- ---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $73,673 $74,442 $25,113 $3,546 $ 520
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 2.85% 2.53% 2.26% 3.69% 2.62%
Expenses 1.93% 1.91%(4) 1.96%(4) 2.12%(4) 2.27%(4)
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 15% 59% 51% 32% 29%
</TABLE>
1. For the nine months ended September 30, 1996. The Fund changed its fiscal
year end from December 31 to September 30.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were $105,610,305 and $187,048,362, respectively.
6. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
See accompanying Notes to Financial Statements.
33 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Year Year
Ended Ended
Sept. 30, Dec. 31,
Class C 1999 1998 1997 1996(1) 1995 1994
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.61 $16.07 $14.02 $13.01 $11.49 $13.05
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .42 .38 .41 .40 .40 .44
Net realized and unrealized gain (loss) 1.57 (1.20) 2.83 .96 2.07 (.77)
------------------------------------------------------------------------
Total income (loss) from
investment operations 1.99 (.82) 3.24 1.36 2.47 (.33)
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.41) (.36) (.40) (.35) (.39) (.44)
Distributions from net realized gain (1.22) (1.28) (.79) -- (.56) (.79)
------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.63) (1.64) (1.19) (.35) (.95) (1.23)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.97 $13.61 $16.07 $14.02 $13.01 $11.49
========================================================================
============================================================================================================================
Total Return, at Net Asset Value(2) 15.28% (5.43)% 24.42% 10.55% 21.69% (2.50)%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $38,978 $48,417 $49,539 $21,087 $15,405 $9,182
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $43,701 $52,325 $33,813 $17,898 $11,827 $5,601
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 2.85% 2.51% 2.61% 3.84% 3.08% 3.30%
Expenses 1.93% 1.91%(4) 1.97%(4) 2.07%(4) 1.99%(4) 2.00%
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 15% 59% 51% 32% 29% 32%
</TABLE>
1. For the nine months ended September 30, 1996. The Fund changed its fiscal
year end from December 31 to September 30.
2. Assumes a $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
5. 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, 1999, were
$105,610,305 and $187,048,362, respectively.
6. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
See accompanying Notes to Financial Statements.
34 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 on investments up to $1 million. Class B and Class C shares may be
subject to a contingent deferred sales charge (CDSC). All classes of shares
have identical rights to earnings, assets and voting privileges, except that
each class has its own expenses directly attributable to that class and
exclusive voting rights with respect to matters affecting that class. Classes
A, B and C have separate distribution and/or service plans. 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.
- --------------------------------------------------------------------------------
Securities 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. Foreign currency exchange contracts are valued based on
the closing prices of the foreign 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.
35 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
1. Significant Accounting Policies Continued
Foreign Currency Translation. The accounting records of the Fund are
maintained in U.S. dollars. Prices of securities denominated in foreign
currencies are translated into U.S. dollars at the closing rates of
exchange. Amounts related to the purchase and sale of foreign securities
and investment income are translated at the rates of exchange prevailing on
the respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments
is separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
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' Compensation. 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, 1999, a provision of $12,485 was made for the Fund's projected
benefit obligations and payments of $9,457 were made to retired trustees,
resulting in an accumulated liability of $192,150 as of September 30, 1999.
36 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
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 compensation 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 Trustees 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.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of 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, 1999, amounts have been reclassified to reflect an
increase in paid-in capital of $200,788, a decrease in undistributed net
investment income of $998,366, and an increase in accumulated net realized gain
on investments of $797,578.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction
of custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. 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.
37 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest for each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Year Ended September 30, 1999 Year Ended September 30, 1998
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 1,797,693 $ 25,595,843 2,733,445 $ 41,795,382
Dividends and/or
distributions reinvested 5,300,198 72,227,515 4,959,787 71,625,634
Redeemed (7,538,361) (107,027,712) (6,121,146) (93,162,816)
--------------------------------------------------------------
Net increase (decrease) (440,470) $ (9,204,354) 1,572,086 $ 20,258,200
==============================================================
- ------------------------------------------------------------------------------------------
Class B
Sold 1,006,931 $ 14,207,626 1,763,004 $ 26,611,307
Dividends and/or
distributions reinvested 577,898 7,782,999 459,723 6,577,938
Redeemed (2,021,277) (28,376,514) (1,076,399) (16,123,616)
--------------------------------------------------------------
Net increase (decrease) (436,448) $ (6,385,889) 1,146,328 $ 17,065,629
==============================================================
- ------------------------------------------------------------------------------------------
Class C
Sold 411,845 $ 5,825,212 981,223 $ 14,888,603
Dividends and/or
distributions reinvested 337,524 4,555,422 345,067 4,948,258
Redeemed (1,518,503) (21,507,261) (849,738) (12,758,830)
--------------------------------------------------------------
Net increase (decrease) (769,134) $ (11,126,627) 476,552 $ 7,078,031
==============================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of September 30, 1999, net unrealized appreciation on securities and options
written of $105,275,863 was composed of gross appreciation of $149,534,011, and
gross depreciation of $44,258,148.
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management Fees. 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 of the Fund, 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 Fund's management fee for the year ended
September 30, 1999, was 0.71% of average net assets for each class of shares.
38 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
- --------------------------------------------------------------------------------
Transfer Agent Fees. 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.
- --------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 1999 $407,315 $141,422 $20,257 $381,434 $50,023
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 1999 $-- $184,453 $9,492
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution
and Service Plans for Class B and Class C shares under Rule 12b-1 of the
Investment Company Act. Under those plans the Fund pays the Distributor for all
or a portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
- --------------------------------------------------------------------------------
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements
to the Distributor at a rate of up to 0.25% of average annual net assets of
Class A shares. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the fiscal year ended September 30, 1999,
payments under the Class A Plan totaled $1,057,289, all of which was paid by
the Distributor to recipients. That included $76,248 paid to an affiliate of
the Distributor's parent company. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
39 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
4. Management Fees and Other Transactions with Affiliates Continued
Class B and Class C Distribution and Service Plan Fees. Under each plan,
service fees and distribution fees are computed on the average of the net asset
value of shares in the respective class, determined as of the close of each
regular business day during the period. The Class B and Class C plans provide
for the Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. The asset-based sales charges on
Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated. The plans allow for the carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30,
1999, were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $736,848 $590,864 $2,672,187 3.88%
Class C Plan 437,267 171,921 597,734 1.53
</TABLE>
================================================================================
5. Foreign Currency Contracts
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter
into foreign currency exchange contracts for operational purposes and to seek
to protect against adverse exchange rate fluctuations. Risks to the Fund
include the potential inability of the counterparty to meet the terms of the
contract.
40 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided
by a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of
Investments where applicable.
================================================================================
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 note
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.
41 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
6. Option Activity Continued
Written option activity for the year ended September 30, 1999, was as follows:
<TABLE>
<CAPTION>
Call Options
---------------------------
Number of Amount of
Options Premiums
- -------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding as of
September 30, 1998 5,233 $1,967,325
Options written 17,915 6,410,889
Options closed or expired (12,550) (4,010,231)
Options exercised (5,457) (2,017,351)
-------------------------
Options outstanding as of
September 30, 1999 5,141 $2,350,632
=========================
</TABLE>
================================================================================
7. Illiquid or Restricted Securities
As of September 30, 1999, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are valued under methods
approved by the Board of Trustees as reflecting fair value. A security may also
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 limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of September 30, 1999,
was $4,303,250, which represents 0.58% of the Fund's net assets.
================================================================================
8. 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, 1999.
42 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
To the Board of Trustees and Shareholders of
Oppenheimer Multiple Strategies Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Multiple Strategies Fund as of
September 30, 1999, 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 three-year period then ended, the nine-month period ended September 30,
1996, and each of the years in the two-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, 1999, 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, 1999, 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 three-year period then ended,
the nine-month period ended September 30, 1996, and each of the years in the
two-year period ended December 31, 1995, in conformity with generally accepted
accounting principles.
KPMG LLP
Denver, Colorado
October 21, 1999
43 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.3697, $1.3333 and $1.3301 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 18, 1998,
of which $1.2238 was designated as a "capital gain distribution" for federal
income tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended September 30,
1999, which are not designated as capital gain distributions should be
multiplied by 21.13% to arrive at the net amount eligible for the corporate
dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
44 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
OPPENHEIMER MULTIPLE STRATEGIES FUND
<TABLE>
================================================================================
<S> <C>
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
Phillip A. Griffiths, 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================
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 LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
</TABLE>
This is a copy of a report to shareholders of
Oppenheimer Multiple Strategies Fund. This report
must be preceded or accompanied by a Prospectus of
Oppenheimer Multiple Strategies Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
45 OPPENHEIMER MULTIPLE STRATEGIES FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
- ---------------------------------------------------------
Internet
24-hr access to account information and transactions
www.oppenheimerfunds.com
- ---------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- ---------------------------------------------------------
Telephone Transactions
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- ---------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
- ---------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- ---------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
- ---------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- ---------------------------------------------------------
[logo] OppenheimerFunds(R)
Distributor, Inc.
RA0240.001.0999 November 29, 1999
