<PAGE>
================================
Semiannual Report March 31, 1999
================================
OPPENHEIMER
Multiple Strategies Fund
[GRAPHIC]
[LOGO]
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview with Your Fund's Manager
9 Financial Statements
43 Officers and Trustees
44 Information and Services
Report highlights
- --------------------------------------------------------------------------------
o We took advantage of opportunities to acquire sound companies at attractive
prices in the wake of last summer's stock market declines.
o Our bond portfolio remains broadly diversified among U.S. government
securities, foreign bonds and high yield corporate bonds.
<TABLE>
<CAPTION>
- ------------------------------
Cumulative Total Returns
- ------------------------------
For the 6-Month Period
Ended 3/31/99
Class A
<CAPTION>
Without With
Sales Chg.(1) Sales Chg.(2)
- ------------------------------
<S> <C>
12.52% 6.05%
- ------------------------------
Class B
<CAPTION>
Without With
Sales Chg.(1) Sales Chg.(2)
- ------------------------------
<S> <C>
12.05% 7.05%
- ------------------------------
Class C
<CAPTION>
Without With
Sales Chg.(1) Sales Chg.(2)
- ------------------------------
<S> <C>
11.99% 10.99%
</TABLE>
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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 the stock market can be volatile, the Fund's
performance may be subject to substantial short-term changes. For updates on the
Fund's performance, please contact your financial advisor, call us at
1-800-525-7048 or visit our website, www.oppenheimerfunds.com.
(1.) Includes changes in net asset value per share without deducting any sales
charges.
(2.) Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. Class B and
C shares are subject to an annual 0.75% asset-based sales charge. An explanation
of the different performance calculations is in the Fund's prospectus.
2 Oppenheimer Multiple Strategies Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Multiple Strategies Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The strength of the U.S. economy continues to surprise and concern many
analysts. At a time when the majority of the world's economies are beleaguered
by financial strain, the U.S. economy has been growing at a remarkable rate.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat through March 31. What's
more, the disparity in valuations between large companies, which have led the
market's advance, and smaller ones, which have lagged, has become historically
wide.
What do these observations mean for your investments? In our view, actively
managed portfolios that are closely monitored by expert money managers may
provide better returns than passive index investing in 1999. That's because
selectivity is expected to be more critical to performance than it has been over
the past few years. In a potentially overvalued stock market and rising
interest-rate environment, the ability to identify the most promising securities
could become paramount.
Even though many equity investors may be tempted to focus their portfolio
on the technology sector, we suggest a more prudent course: broad
diversification beyond any single asset class, industry, capitalization range or
geographic region. We believe that the risks of this investment environment
require consideration of a broad range of investments and markets, including
bonds. That way, if one market experiences setbacks, one or more of the others
may help cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 22, 1999
3 Oppenheimer Multiple Strategies Fund
<PAGE>
"In our view, when the marketplace is highly stratified... that is exactly when
you need diversification the most."
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How did Oppenheimer Multiple Strategies Fund perform during the six-month period
that ended March 31, 1999?
The Fund's performance over the past six months has been mixed. On the positive
side, our U.S. technology and health stocks performed well. On the negative
side, returns were hurt by our holdings of emerging market bonds because of
economic instability in Latin America.
Most significantly, however, we believe that recent trends in the stock
market have created outstanding opportunities. The market's performance has been
dominated by stocks with the largest capitalizations, which are selling at
historically high prices relative to earnings. Many stocks, however, are selling
at attractive prices relative to earnings. We believe that these undervalued
stocks may provide excellent returns if valuation differences return to more
normal levels.
What market sectors performed best over the past six months?
Clearly and by far, U.S. stocks led the financial markets over the past six
months, as they have for the past several years. That's because investors
continued to flock to the stocks of large, well-established companies with
dominant positions and histories of consistent earnings. Our technology holdings
performed particularly well, including IBM Corp., Intel Corp., Cisco System,
Inc. and Rational Software Corp.
Early in the six-month reporting period, we took advantage of the summer's
sharp market declines to upgrade our stock portfolio. We focused on technology
companies, financial services firms and health care companies that, in our
opinion, lead their markets. In fact, some of these holdings quickly retraced
their declines and produced excellent returns. We have since sold some of these
holdings, redeploying assets to more attractively valued stocks.
4 Oppenheimer Multiple Strategies Fund
<PAGE>
[PHOTO]
Portfolio Management Team (l to r)
George Evans
Mike Levine
David Negri
Richard Rubinstein
What markets disappointed you?
In the U.S. stock market, one area that has not worked well is basic
manufacturing and industrial companies. This sector has been adversely affected
by the recession in Asia. Before the financial crisis hit, many Asian
manufacturers built new factories to fill future demand. That demand has failed
to materialize, however, and much of that new capacity remains unutilized. This
has created enormous pressure on U.S. manufacturers, who have had to reduce
prices to compete with overseas producers.
However, if economic conditions begin to recover in Asia and remain strong
in the United States and Europe, as we expect, these companies should be among
the first to benefit. Therefore, we acquired several companies that we believe
are fundamentally sound and represent attractive values. These include dominant
companies in the industrial gasses, cement and farm machinery businesses.
Have you found attractive values or opportunities in other areas of the stock
market?
Yes. For example, housing and building-related companies were hard hit in
anticipation of weaker U.S. economic growth, which has so far failed to
materialize. We established positions in a home builder, a fiberglass and
insulation company, and a dominant furniture retailer when their stock prices
were low, and we have seen them rise since.
5 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
1 year 5 year 10 year
- --------------------------------
<S> <C> <C>
- -4.73% 11.97% 10.58%
- --------------------------------
<CAPTION>
Class B
Since
1 year 5 year Inception
- --------------------------------
<S> <C> <C>
- -4.25% N/A 11.70%
- --------------------------------
<CAPTION>
Class C
Since
1 year 5 year Inception
- --------------------------------
<S> <C> <C>
- -0.65% 12.35% 11.26%
- --------------------------------
</TABLE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
We also found opportunities in companies that have lagged the market over the
past few years. After extensive fundamental analysis, for example, we invested
in several companies that produce and market vitamins. Despite low valuations,
we believe that these companies are poised to benefit from positive demographic
influences, including the aging of the baby-boomer generation and the increasing
popularity of alternative, holistic and natural remedies.
How was the bond portion of the portfolio managed?
Within our bond portfolio, we modestly increased our holdings of U.S. Treasury
securities early in the six-month reporting period in anticipation of slower
economic growth and lower interest rates. While longer term interest rates have
actually risen recently amid stronger than expected economic conditions, we
believe that this situation will probably be temporary and that yields will
decline.
We reduced our holdings of high-yield corporate bonds, also in anticipation
of a slower economy. Because prices of high yield bonds tend to fluctuate with
the financial condition of their issuers, they tend to do relatively poorly when
the economy slows.
Our overseas bond holdings have remained relatively constant, except that
we took advantage of opportunities in the emerging markets by buying Brazilian
debt at what we considered to be attractive prices.
Has the Fund's diversified approach helped to reduce volatility?
Yes, it has over the long term. But we sense that many investors are frustrated
that the multi-sector approach has lagged the performance of large, U.S. growth
stocks. In our view, when the marketplace is highly stratified, as it has been
over the past several years, that is exactly when you need diversification the
most.
6 Oppenheimer Multiple Strategies Fund
<PAGE>
While large U.S. stocks have been the best-performing market for several years,
it will not always be so. At some point--and no one can predict exactly
when--other types of investments will take the lead. When that happens, a
portfolio such as ours will provide exposure to a number of different trends and
markets. Over time, this diversified approach should provide good returns with
lower risks. In our view, maintaining a disciplined, diversified approach under
a variety of market conditions is part of what makes OppenheimerFunds The Right
Way to Invest.
Asset Allocation(2)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
<TABLE>
<S> <C>
Stocks 51.5%
Bonds 39.8%
Cash 8.7%
</TABLE>
<TABLE>
<CAPTION>
Top 10 Stock Holdings(2)
- --------------------------------------------------------------------------------
<S> <C>
BankAmerica Corp. 2.2%
- --------------------------------------------------------------------------------
IBM Corp. 2.1
- --------------------------------------------------------------------------------
Chase Manhattan Corp. 2.0
- --------------------------------------------------------------------------------
Intel Corp. 1.8
- --------------------------------------------------------------------------------
Societe Generale 1.0
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1.0
- --------------------------------------------------------------------------------
CBS Corp. 0.9
- --------------------------------------------------------------------------------
RCN Corp. 0.8
- --------------------------------------------------------------------------------
Novell, Inc. 0.7
- --------------------------------------------------------------------------------
Philip Morris Cos., Inc. 0.6
- --------------------------------------------------------------------------------
</TABLE>
(1.) Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 4/24/87. The Fund's maximum
sales charge for Class A shares was lower prior to 4/1/91, so actual performance
may have been higher. Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 3% (since inception on 8/29/95). Class C returns
for the one-year result include the contingent deferred sales charge of 1%.
Class C shares have an inception date of 12/1/93. Class B and C shares are
subject to an annual 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
(2.) Portfolio is subject to change. Percentages are as of March 31, 1999, and
are based on total market value of investments.
7 Oppenheimer Multiple Strategies Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
8 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments March 31, 1999 (Unaudited)
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks--51.0%
- ----------------------------------------------------------------------------------------------------------------
Basic Materials--2.3%
- ----------------------------------------------------------------------------------------------------------------
Chemicals--1.4%
Bayer AG, Sponsored ADR 95,000 $ 3,558,861
- ----------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 36,000 2,090,250
- ----------------------------------------------------------------------------------------------------------------
Potash Corp. of Saskatchewan, Inc. 70,000 3,745,000
- ----------------------------------------------------------------------------------------------------------------
Praxair, Inc. 38,000 1,370,375
-----------
10,764,486
- ----------------------------------------------------------------------------------------------------------------
Metals--0.4%
De Beers Consolidated Mines Ltd., ADR 150,000 2,840,625
- ----------------------------------------------------------------------------------------------------------------
Paper--0.5%
MacMillan Bloedel Ltd. 218,561 2,411,099
- ----------------------------------------------------------------------------------------------------------------
Wausau-Mosinee Paper Corp. 124,000 1,736,000
-----------
4,147,099
- ----------------------------------------------------------------------------------------------------------------
Capital Goods--2.1%
- ----------------------------------------------------------------------------------------------------------------
Electrical Equipment--0.5%
Honeywell, Inc. 19,000 1,440,437
- ----------------------------------------------------------------------------------------------------------------
Rockwell International Corp. 60,000 2,546,250
-----------
3,986,687
- ----------------------------------------------------------------------------------------------------------------
Industrial Services--0.3%
Service Corp. International 165,000 2,351,250
- ----------------------------------------------------------------------------------------------------------------
Manufacturing--1.3%
ASM Lithography Holding NV(1) 57,100 2,569,500
- ----------------------------------------------------------------------------------------------------------------
Deere & Co. 37,000 1,429,125
- ----------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc.(2)(3) 1,861 1,861
- ----------------------------------------------------------------------------------------------------------------
Hexcel Corp. (New)(3) 190,000 1,341,875
- ----------------------------------------------------------------------------------------------------------------
Pall Corp. 150,000 2,484,375
- ----------------------------------------------------------------------------------------------------------------
Tenneco, Inc. (New) 65,000 1,815,937
- ----------------------------------------------------------------------------------------------------------------
Tyco International Ltd. (New) 123 8,825
-----------
9,651,498
- ----------------------------------------------------------------------------------------------------------------
Communication Services--1.3%
- ----------------------------------------------------------------------------------------------------------------
Telecommunications: Long Distance--0.9%
Airtouch Communications, Inc.(1)(3) 15,000 1,449,375
- ----------------------------------------------------------------------------------------------------------------
AT&T Corp. 16,000 1,277,000
- ----------------------------------------------------------------------------------------------------------------
MCI WorldCom, Inc.(1)(3) 42,000 3,719,625
- ----------------------------------------------------------------------------------------------------------------
Tele Celular Sul Participacoes SA(3) 10,200,000 15,404
- ----------------------------------------------------------------------------------------------------------------
Tele Centro Oeste Celular Participacoes SA(3) 10,200,000 11,419
- ----------------------------------------------------------------------------------------------------------------
Tele Centro Sul Participacoes SA(3) 10,200,000 48,174
- ----------------------------------------------------------------------------------------------------------------
Tele Leste Celular Participacoes SA(3) 10,200,000 6,304
</TABLE>
9 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications: Long Distance (continued)
Tele Nordeste Celular Participacoes SA(3) 10,200,000 $ 10,705
- ----------------------------------------------------------------------------------------------------------------
Tele Norte Celular Participacoes SA(3) 10,200,000 6,126
- ----------------------------------------------------------------------------------------------------------------
Telemig Celular Participacoes SA(3) 10,200,000 12,787
-----------
6,556,919
- ----------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.4%
Embratel Participacoes SA(3) 10,200,000 84,453
- ----------------------------------------------------------------------------------------------------------------
SBC Communications, Inc. 64,000 3,016,000
- ----------------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA(3) 10,200,000 84,274
- ----------------------------------------------------------------------------------------------------------------
Tele Sudeste Celular Participacoes SA(3) 10,200,000 36,279
- ----------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 10,200,000 1,249
- ----------------------------------------------------------------------------------------------------------------
Telesp Celular Participacoes SA(3) 10,200,000 57,630
- ----------------------------------------------------------------------------------------------------------------
Telesp Participacoes SA(3) 10,200,000 133,816
-----------
3,413,701
- ----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--6.8%
- ----------------------------------------------------------------------------------------------------------------
Autos & Housing--1.8%
Dana Corp. 60,000 2,280,000
- ----------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 691,368 1,811,496
- ----------------------------------------------------------------------------------------------------------------
Lear Corp.(3) 81,000 3,457,687
- ----------------------------------------------------------------------------------------------------------------
Owens Corning 100,000 3,181,250
- ----------------------------------------------------------------------------------------------------------------
Southdown, Inc. 40,300 2,163,606
- ----------------------------------------------------------------------------------------------------------------
Toll Brothers, Inc.(3) 65,000 1,178,125
-----------
14,072,164
- ----------------------------------------------------------------------------------------------------------------
Consumer Services--0.2%
Alternative Living Services, Inc.(3) 93,000 1,860,000
- ----------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--2.5%
Berjaya Sports Toto Berhad(2) 410,000 410,863
- ----------------------------------------------------------------------------------------------------------------
Brunswick Corp. 72,000 1,372,500
- ----------------------------------------------------------------------------------------------------------------
Callaway Golf Co. 147,000 1,497,562
- ----------------------------------------------------------------------------------------------------------------
Host Marriott Corp. (New) 175,000 1,946,875
- ----------------------------------------------------------------------------------------------------------------
International Game Technology 257,500 3,749,844
- ----------------------------------------------------------------------------------------------------------------
Marriott International, Inc., Cl. A 18,000 605,250
- ----------------------------------------------------------------------------------------------------------------
Mattel, Inc. 1 37
- ----------------------------------------------------------------------------------------------------------------
Mirage Resorts, Inc.(3) 70,000 1,487,500
- ----------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 43,000 3,710,714
- ----------------------------------------------------------------------------------------------------------------
Shimano, Inc. 165,000 4,019,462
-----------
18,800,607
</TABLE>
10 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Media--0.2%
South China Morning Post Holdings Ltd. 3,306,000 $ 1,834,403
- ----------------------------------------------------------------------------------------------------------------
Retail: General--1.0%
Dayton Hudson Corp. 18,000 1,199,250
- ----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc.(1)(3) 54,000 2,166,750
- ----------------------------------------------------------------------------------------------------------------
Neiman Marcus Group, Inc.(3) 119,000 2,692,375
- ----------------------------------------------------------------------------------------------------------------
Saks, Inc.(3) 68,260 1,774,760
-----------
7,833,135
- ----------------------------------------------------------------------------------------------------------------
Retail: Specialty--0.7%
AutoZone, Inc.(3) 65,000 1,974,375
- ----------------------------------------------------------------------------------------------------------------
Borders Group, Inc.(3) 92,000 1,293,750
- ----------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc.(3) 125,000 1,750,000
-----------
5,018,125
- ----------------------------------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.4%
Jones Apparel Group, Inc.(3) 121,000 3,380,437
- ----------------------------------------------------------------------------------------------------------------
Consumer Staples--6.0%
- ----------------------------------------------------------------------------------------------------------------
Beverages--0.6%
Diageo plc 240,840 2,705,967
- ----------------------------------------------------------------------------------------------------------------
Whitman Corp. 93,000 1,598,437
-----------
4,304,404
- ----------------------------------------------------------------------------------------------------------------
Broadcasting--2.0%
CBS Corp.(1)(3) 160,000 6,550,000
- ----------------------------------------------------------------------------------------------------------------
MediaOne Group, Inc.(3) 40,000 2,540,000
- ----------------------------------------------------------------------------------------------------------------
RCN Corp.(3) 182,500 6,125,156
-----------
15,215,156
- ----------------------------------------------------------------------------------------------------------------
Entertainment--0.9%
CBRL Group, Inc. 106,000 1,908,000
- ----------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 66,000 4,690,125
-----------
6,598,125
- ----------------------------------------------------------------------------------------------------------------
Food--0.8%
Groupe Danone 16,948 4,264,980
- ----------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 22,000 1,998,379
-----------
6,263,359
- ----------------------------------------------------------------------------------------------------------------
Household Goods--1.1%
Fort James Corp. 80,000 2,535,000
- ----------------------------------------------------------------------------------------------------------------
NBTY, Inc.(3) 182,000 887,250
- ----------------------------------------------------------------------------------------------------------------
Rexall Sundown, Inc.(3) 140,000 2,686,250
</TABLE>
11 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Household Goods (continued)
Wella AG 3,585 $ 2,089,966
- ----------------------------------------------------------------------------------------------------------------
Wella AG, Preference 350 249,384
-----------
8,447,850
- ----------------------------------------------------------------------------------------------------------------
Tobacco--0.6%
Philip Morris Cos., Inc. 135,000 4,750,312
- ----------------------------------------------------------------------------------------------------------------
Energy--2.7%
- ----------------------------------------------------------------------------------------------------------------
Energy Services & Producers--1.1%
Input/Output, Inc.(3) 298,000 1,881,125
- ----------------------------------------------------------------------------------------------------------------
Santa Fe International Corp. 121,000 2,261,187
- ----------------------------------------------------------------------------------------------------------------
Schlumberger Ltd. 36,000 2,166,750
- ----------------------------------------------------------------------------------------------------------------
Transocean Offshore, Inc. 59,000 1,699,937
-----------
8,008,999
- ----------------------------------------------------------------------------------------------------------------
Oil: Domestic--0.7%
Kerr-McGee Corp. 47,000 1,542,187
- ----------------------------------------------------------------------------------------------------------------
Unocal Corp. 105,000 3,865,312
-----------
5,407,499
- ----------------------------------------------------------------------------------------------------------------
Oil: International--0.9%
Petroleo Brasileiro SA, Preference 3,330,000 463,858
- ----------------------------------------------------------------------------------------------------------------
Talisman Energy, Inc.(3) 100,090 2,166,821
- ----------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 33,000 2,013,000
- ----------------------------------------------------------------------------------------------------------------
YPF SA, Cl. D, ADR 75,000 2,367,187
-----------
7,010,866
- ----------------------------------------------------------------------------------------------------------------
Financial--12.3%
- ----------------------------------------------------------------------------------------------------------------
Banks--7.4%
ABN Amro Holding NV 77,000 1,604,369
- ----------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 150,000 877,554
- ----------------------------------------------------------------------------------------------------------------
Bank One Corp. 45,000 2,477,813
- ----------------------------------------------------------------------------------------------------------------
BankAmerica Corp. (New)(1) 235,000 16,596,875
- ----------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 191,500 15,571,344
- ----------------------------------------------------------------------------------------------------------------
Credit Suisse Group 5,225 974,296
- ----------------------------------------------------------------------------------------------------------------
Credito Italiano SpA 688,800 3,718,086
- ----------------------------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc. 17,000 2,097,375
- ----------------------------------------------------------------------------------------------------------------
Societe Generale 37,800 7,263,871
- ----------------------------------------------------------------------------------------------------------------
UBS AG(3) 5,600 1,759,286
- ----------------------------------------------------------------------------------------------------------------
Wells Fargo Co. 90,000 3,155,625
-----------
56,096,494
</TABLE>
12 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial--1.5%
American Express Co.(1) 26,000 $ 3,055,000
- ----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.(1) 42,500 3,758,594
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.(1) 47,500 4,747,031
-----------
11,560,625
- ----------------------------------------------------------------------------------------------------------------
Insurance--0.9%
ACE Ltd. 45,000 1,403,438
- ----------------------------------------------------------------------------------------------------------------
Skandia/Forsakrings AB 241,000 4,484,127
UNUM Corp. 25,000 1,189,063
-----------
7,076,628
- ----------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts--2.5%
Archstone Communities Trust 95,000 1,911,875
- ----------------------------------------------------------------------------------------------------------------
Avalonbay Communities, Inc. 60,000 1,897,500
- ----------------------------------------------------------------------------------------------------------------
Brandywine Realty Trust 105,000 1,706,250
- ----------------------------------------------------------------------------------------------------------------
Camden Property Trust 65,000 1,608,750
- ----------------------------------------------------------------------------------------------------------------
CarrAmerica Realty Corp. 75,000 1,654,688
- ----------------------------------------------------------------------------------------------------------------
Chastain Capital Corp. 184,000 989,000
- ----------------------------------------------------------------------------------------------------------------
Chelsea GCA Realty, Inc. 65,000 1,811,875
- ----------------------------------------------------------------------------------------------------------------
Cornerstone Properties, Inc. 102,000 1,491,750
- ----------------------------------------------------------------------------------------------------------------
CRIIMI MAE, Inc. 170,000 456,875
- ----------------------------------------------------------------------------------------------------------------
Developers Diversified Realty Corp. 100,000 1,431,250
- ----------------------------------------------------------------------------------------------------------------
Horizon Group Properties, Inc.(3) 717 3,137
- ----------------------------------------------------------------------------------------------------------------
JDN Realty Corp. 100,000 1,987,500
- ----------------------------------------------------------------------------------------------------------------
Post Properties, Inc. 50,000 1,800,000
-----------
18,750,450
- ----------------------------------------------------------------------------------------------------------------
Healthcare--4.1%
- ----------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--3.4%
Abbott Laboratories 60,000 2,808,750
- ----------------------------------------------------------------------------------------------------------------
American Home Products Corp. 72,000 4,698,000
- ----------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 180,000 4,126,228
- ----------------------------------------------------------------------------------------------------------------
Biogen, Inc.(1) 15,000 1,714,688
- ----------------------------------------------------------------------------------------------------------------
Centocor, Inc.(1)(3) 85,200 3,147,075
- ----------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc.(1) 98,000 2,688,875
- ----------------------------------------------------------------------------------------------------------------
Novartis AG 2,500 4,055,343
- ----------------------------------------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(4) 20,000 321,000
- ----------------------------------------------------------------------------------------------------------------
SmithKline Beecham plc, Cl. A Sponsored ADR 36,000 2,574,000
-----------
26,133,959
</TABLE>
13 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Healthcare/Supplies & Services--0.7%
Acuson Corp.(3) 135,000 $ 2,016,563
- ----------------------------------------------------------------------------------------------------------------
HCR Manor Care, Inc.(3) 56,000 1,277,500
- ----------------------------------------------------------------------------------------------------------------
United Healthcare Corp. 45,400 2,389,175
-----------
5,683,238
- ----------------------------------------------------------------------------------------------------------------
Technology--11.2%
- ----------------------------------------------------------------------------------------------------------------
Computer Hardware--4.1%
3Com Corp.(3) 40,000 932,500
- ----------------------------------------------------------------------------------------------------------------
Canon, Inc. 81,000 2,003,968
- ----------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.(1)(3) 66,000 7,231,125
- ----------------------------------------------------------------------------------------------------------------
Compaq Computer Corp. 32,000 1,014,000
- ----------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 55,000 3,729,688
- ----------------------------------------------------------------------------------------------------------------
International Business Machines Corp.(1) 92,000 16,307,000
-----------
31,218,281
- ----------------------------------------------------------------------------------------------------------------
Computer Services--0.4%
First Data Corp. 64,000 2,736,000
- ----------------------------------------------------------------------------------------------------------------
Computer Software/Services--2.3%
Computer Associates International, Inc. 73,000 2,596,063
- ----------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(3) 35,000 1,662,500
- ----------------------------------------------------------------------------------------------------------------
Novell, Inc.(1)(3) 210,000 5,289,375
- ----------------------------------------------------------------------------------------------------------------
Rational Software Corp. (1)(3) 177,000 4,745,813
- ----------------------------------------------------------------------------------------------------------------
Sabre Group Holdings, Inc.(3) 72,000 3,267,000
-----------
17,560,751
- ----------------------------------------------------------------------------------------------------------------
Electronics--3.8%
Analog Devices, Inc.(3) 151,000 4,492,250
- ----------------------------------------------------------------------------------------------------------------
General Motors Corp., Cl. H(3) 47,800 2,410,913
- ----------------------------------------------------------------------------------------------------------------
Intel Corp.(1) 114,000 13,551,750
- ----------------------------------------------------------------------------------------------------------------
Keyence Corp. 14,800 2,211,939
- ----------------------------------------------------------------------------------------------------------------
Methode Electronics, Inc., Cl. A 158,000 1,757,750
- ----------------------------------------------------------------------------------------------------------------
STMicroelectronics NV, NY Shares(1)(3) 24,500 2,379,563
- ----------------------------------------------------------------------------------------------------------------
Teradyne, Inc.(1)(3) 47,000 2,564,438
-----------
29,368,603
- ----------------------------------------------------------------------------------------------------------------
Photography--0.6%
Xerox Corp.(1) 80,000 4,270,000
- ----------------------------------------------------------------------------------------------------------------
Transportation--1.3%
- ----------------------------------------------------------------------------------------------------------------
Air Transportation--0.5%
Alaska Air Group, Inc.(1)(3) 37,500 1,781,250
- ----------------------------------------------------------------------------------------------------------------
AMR Corp.(3) 36,500 2,137,531
-----------
3,918,781
</TABLE>
14 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Railroads & Truckers--0.4%
Burlington Northern Santa Fe Corp. 81,000 $ 2,662,875
- ----------------------------------------------------------------------------------------------------------------
Shipping--0.4%
Stolt-Nielsen SA 174,000 1,881,375
- ----------------------------------------------------------------------------------------------------------------
Stolt-Nielsen SA, Sponsored ADR 67,050 817,172
-----------
2,698,547
- ----------------------------------------------------------------------------------------------------------------
Utilities--0.9%
- ----------------------------------------------------------------------------------------------------------------
Electric Utilities--0.9%
Allegheny Energy, Inc. 48,000 1,416,000
- ----------------------------------------------------------------------------------------------------------------
Reliant Energy, Inc. 94,000 2,449,875
- ----------------------------------------------------------------------------------------------------------------
Southern Co. 126,000 2,937,375
-----------
6,803,250
-----------
Total Common Stocks (Cost $262,427,515) 389,056,188
================================================================================================================
Preferred Stocks--0.3%
- ----------------------------------------------------------------------------------------------------------------
Budget Group, Inc., 6.25% Cum. Cv., Non-Vtg.(4) 40,000 1,435,000
- ----------------------------------------------------------------------------------------------------------------
Spanish Broadcasting Systems, Inc., 14.25% Cum. Exchangeable,
Non-Vtg.(4)(5) 522 559,845
-----------
Total Preferred Stocks (Cost $2,560,966) 1,994,845
================================================================================================================
Other Securities--0.5%
- ----------------------------------------------------------------------------------------------------------------
Monsanto Co., 6.50% Cv. Adjustable Conversion-rate
Equity Security Units 35,500 1,650,750
- ----------------------------------------------------------------------------------------------------------------
Qwest Trends Trust, 5.75% Cv.(4) 30,900 2,020,087
-----------
Total Other Securities (Cost $2,542,855) 3,670,837
<CAPTION>
Units
================================================================================================================
<S> <C> <C>
Rights, Warrants and Certificates--0.0%
- ----------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99(2) 2,000 20
- ----------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA Wts., Exp. 11/03 300 22,537
- ----------------------------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/08(2) 2,000 3,500
- ----------------------------------------------------------------------------------------------------------------
Hyperion Telecommunications, Inc. Wts., Exp. 4/01 550 27,019
- ----------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 300 --
-----------
Total Rights, Warrants and Certificates (Cost $0) 53,076
</TABLE>
15 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Face Market Value
Amount(8) See Note 1
================================================================================================================
<S> <C> <C>
Mortgage-Backed Obligations--4.2%
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Collateralized Mtg.
Obligations, Gtd. Multiclass Mtg. Participation Certificates,
Series 151, Cl. F, 9%, 5/15/21 $ 754,654 $ 796,394
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security, Series 199, Cl. IO, 24.889%, 8/1/28(6) 1,519,047 430,318
- ----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
11.50%, 7/1/11 104,646 113,940
6.50%, 12/1/27-2/1/28 9,118,930 9,079,902
- ----------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
6.875%, 3/20/26 504,694 509,429
7%, 4/15/26 3,450,546 3,506,238
7.50%, 5/15/27 14,636,721 15,085,484
9%, 11/15/08-5/15/09 287,829 307,873
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. F, 7.432%, 2/15/28(2) 97,137 73,460
- ----------------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(4) 400,000 320,937
- ----------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1992-CHF, Cl. D, 8.25%, 12/25/20(2) 42,899 42,611
Series 1993-C1, Cl. D, 9.45%, 5/25/24 252,980 250,628
Series 1994-C2, Cl. E, 8%, 4/25/25 742,521 731,731
Series 1994-C2, Cl. G, 8%, 4/25/25 173,553 167,506
- ----------------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII:
Series 1996-CL, Cl. F, 9.149%, 1/20/06(7) 250,000 204,219
Series 1996-B, Cl. 1, 7.132%, 4/25/26(2) 288,949 207,863
- ----------------------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.637%, 6/25/26(2)(7) 27,688 25,880
------------
Total Mortgage-Backed Obligations (Cost $31,081,257) 31,854,413
================================================================================================================
U.S. Government Obligations--11.0%
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6%, 2/15/26 500,000 508,907
6.50%, 11/15/26 360,000 389,813
8.875%, 8/15/17 3,650,000 4,865,906
10.75%, 5/15/03 1,190,000 1,428,372
STRIPS, 7.10%, 11/15/18(9) 11,000,000 3,376,923
STRIPS, 7.313%, 8/15/19(9) 12,000,000 3,520,428
- ----------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.875%, 9/30/02-2/15/04 30,000,000 30,782,820
6.125%, 12/31/01 15,000,000 15,384,375
6.25%, 2/15/03-2/15/07 12,130,000 12,665,944
6.50%, 10/15/06 4,640,000 4,945,952
7.50%, 5/15/02 327,000 348,868
8.50%, 2/15/00 5,500,000 5,670,159
------------
Total U.S. Government Obligations (Cost $81,276,994) 83,888,467
</TABLE>
16 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Face Market Value
Amount(8) See Note 1
================================================================================================================
<S> <C> <C>
Foreign Government Obligations--18.7%
- ----------------------------------------------------------------------------------------------------------------
Argentina--4.5%
Argentina (Republic of) Bonds:
Bonos de Consolidacion de Deudas, Series I, 4.94%, 4/1/01(7) $ 275,729 $ 264,893
Series L, 5.938%, 3/31/05(7) 11,806,400 10,153,504
- ----------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Nts.:
11.75%, 2/12/07(4)ARP 150,000 132,383
14.25%, 11/30/02(7) 13,125,000 12,501,562
- ----------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 5.75%, 3/31/23(10) 16,000,000 11,140,000
------------
34,192,342
- ----------------------------------------------------------------------------------------------------------------
Australia--0.4%
New South Wales Treasury Corp. Gtd. Bonds, 7%, 4/1/04AUD 1,570,000 1,059,886
- ----------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Exchangeable Gtd. Nts.,
10.50%, 5/15/03AUD 2,590,000 1,951,528
- ----------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Global Exchangeable Gtd. Nts.,
8%, 8/14/01 615,000 412,888
------------
3,424,302
- ----------------------------------------------------------------------------------------------------------------
Brazil--3.3%
Brazil (Federal Republic of) Capitalization Bonds, 8%, 4/15/14 26,143,164 16,666,267
- ----------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds,
6.125%, 4/15/06(7) 11,205,000 8,165,644
- ----------------------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA Medium-Term Nts.,
10.543%, 12/9/99(2)(7) 10,000 9,625
------------
24,841,536
- ----------------------------------------------------------------------------------------------------------------
Bulgaria--0.0%
Bulgaria (Republic of) Interest Arrears Bonds, 5.875%, 7/28/11(7) 170,000 114,113
- ----------------------------------------------------------------------------------------------------------------
Canada--2.9%
Canada (Government of) Bonds:
6.50%, 6/1/04CAD 13,320,000 9,411,841
7%, 12/1/06CAD 60,000 44,575
8.75%, 12/1/05CAD 495,000 395,482
9.75%, 6/1/01-12/1/01CAD 9,530,000 7,008,127
11.75%, 2/1/03CAD 290,000 236,341
Series A-33, 11.50%, 9/1/00CAD 585,000 421,633
Series WL43, 5.75%, 6/1/29CAD 7,130,000 5,032,364
------------
22,550,363
- ----------------------------------------------------------------------------------------------------------------
Denmark--0.5%
Denmark (Kingdom of) Bonds, 8%, 3/15/06DKK 21,900,000 3,921,273
- ----------------------------------------------------------------------------------------------------------------
Finland--0.1%
Finland (Republic of) Bonds, 9.50%, 3/15/04FIM 672,751 920,215
- ----------------------------------------------------------------------------------------------------------------
Germany--0.2%
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24EUR 1,362,592 1,733,024
</TABLE>
17 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Great Britain--1.5%
United Kingdom Treasury Bonds:
7%, 6/7/02GBP 2,415,000 $ 4,157,791
7.25%, 12/7/07GBP 2,400,000 4,600,759
10%, 9/8/03GBP 325,000 634,037
- ----------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts.:
9.75%, 8/27/02GBP 55,000 102,238
12.50%, 11/21/05GBP 62,000 131,114
13%, 7/14/00GBP 1,050,000 1,866,213
------------
11,492,152
- ----------------------------------------------------------------------------------------------------------------
Italy--0.2%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
9%, 10/1/03EUR 100,708 133,534
9.50%, 2/1/01-5/1/01EUR 309,872 374,184
10.50%, 4/1/00-7/15/00EUR 759,190 892,789
------------
1,400,507
- ----------------------------------------------------------------------------------------------------------------
Mexico--0.5%
Banco Nacional de Comercio Exterior SNC International
Finance BV Gtd. Registered Bonds, 11.25%, 5/30/06 110,000 116,188
- ----------------------------------------------------------------------------------------------------------------
United Mexican States Bonds:
10.375%, 1/29/03DEM 150,000 89,835
16.50%, 9/1/08(2)GBP 35,000 72,321
- ----------------------------------------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par Bonds:
Series B, 6.25%, 12/31/19 250,000 196,875
Series W-A, 6.25%, 12/31/19 4,450,000 3,504,375
------------
3,979,594
- ----------------------------------------------------------------------------------------------------------------
New Zealand--3.3%
New Zealand (Government of) Bonds:
8%, 2/15/01-11/15/06NZD 43,705,000 24,605,789
10%, 3/15/02NZD 1,085,000 654,803
------------
25,260,592
- ----------------------------------------------------------------------------------------------------------------
Norway--0.0%
Norway (Government of) Bonds, 9.50%, 10/31/02NOK 880,000 131,054
- ----------------------------------------------------------------------------------------------------------------
Philippines--0.4%
Philippines (Republic of) Bonds, 8.60%, 6/15/27 1,500,000 1,263,750
- ----------------------------------------------------------------------------------------------------------------
Philippines (Republic of) Par Bonds, Series B, 6.50%, 12/1/17(2) 1,675,000 1,461,438
------------
2,725,188
- ----------------------------------------------------------------------------------------------------------------
Poland--0.6%
Poland (Republic of) Bonds, 12%, 6/12/01PLZ 18,000,000 4,564,817
- ----------------------------------------------------------------------------------------------------------------
South Africa--0.2%
Eskom Depositary Receipts, Series E168, 11%, 6/1/08ZAR 6,430,000 824,575
</TABLE>
18 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
South Africa (continued)
Eskom Sec. Bonds, 11%, 6/1/08ZAR 3,000,000 $ 384,716
- ----------------------------------------------------------------------------------------------------------------
South Africa (Republic of) Bonds, 12.50%, 12/21/06ZAR 800,000 114,886
------------
1,324,177
- ----------------------------------------------------------------------------------------------------------------
Spain--0.1%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
10.30%, 6/15/02EUR 235,296 307,899
10.50%, 10/30/03EUR 132,823 185,628
12.25%, 3/25/00EUR 189,919 222,975
------------
716,502
------------
Total Foreign Government Obligations (Cost $145,354,277) 143,291,751
================================================================================================================
Loan Participations--0.1%
- ----------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility Bonds,
6.375%, 7/1/01(2)(7) 165,159 154,012
- ----------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 6.063%, 1/1/09(2)(7) 633,333 514,583
------------
Total Loan Participations (Cost $733,792) 668,595
================================================================================================================
Non-Convertible Corporate Bonds and Notes--5.4%
- ----------------------------------------------------------------------------------------------------------------
Basic Materials--0.7%
- ----------------------------------------------------------------------------------------------------------------
Chemicals--0.2%
Laroche Industries, Inc., 9.50% Sr. Sub. Nts., Series B, 9/15/07 500,000 372,500
- ----------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 183,000 194,895
- ----------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 11.75% Sr. Unsec. Sub. Nts., 8/15/06 670,000 633,150
------------
1,200,545
- ----------------------------------------------------------------------------------------------------------------
Metals--0.2%
AK Steel Corp., 9.125% Sr. Nts., 12/15/06 885,000 938,100
- ----------------------------------------------------------------------------------------------------------------
Bar Technologies, Inc., 13.50% Sr. Sec. Nts., 4/1/01 135,000 142,425
- ----------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 500,000 485,000
------------
1,565,525
- ----------------------------------------------------------------------------------------------------------------
Paper--0.3%
Aracruz Celulose SA, 10.375% Debs., 1/31/02(2) 320,000 296,800
- ----------------------------------------------------------------------------------------------------------------
Fletcher Challenge Finance U.S.A., Inc., 8.05% Debs., 6/15/03NZD 35,000 19,523
- ----------------------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd., 10% Cv. Unsec. Sub. Nts., 4/30/05 35,000 20,101
- ----------------------------------------------------------------------------------------------------------------
Fletcher Challenge Ltd., 14.50% Cv. Sub. Nts., 9/30/00 35,000 20,678
- ----------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.625% Sr. Unsec. Nts., 8/1/07 500,000 522,500
- ----------------------------------------------------------------------------------------------------------------
SD Warren Co., 12% Sr. Sub. Nts., Series B, 12/15/04 1,000,000 1,090,000
------------
1,969,602
</TABLE>
19 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Goods--0.6%
- ----------------------------------------------------------------------------------------------------------------
Aerospace/Defense--0.1%
Amtran, Inc., 10.50% Sr. Nts., 8/1/04 $ 500,000 $ 518,125
- ----------------------------------------------------------------------------------------------------------------
Manufacturing--0.5%
Communications & Power Industries, Inc.,
12% Sr. Sub. Nts., Series B, 8/1/05 1,300,000 1,379,625
- ----------------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA de CV,
11.875% Nts., 5/30/01 30,000 30,525
- ----------------------------------------------------------------------------------------------------------------
International Wire Group, Inc., 11.75% Sr. Sub. Nts., Series B, 6/1/05(2) 500,000 531,250
- ----------------------------------------------------------------------------------------------------------------
Mechala Group Jamaica Ltd., 12.75% Gtd. Sr. Sec. Sub. Nts.,
Series B, 12/30/99 38,000 9,215
- ----------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., 9% Sr. Sub. Nts., 7/1/07 1,000,000 1,017,500
- ----------------------------------------------------------------------------------------------------------------
Unifrax Investment Corp., 10.50% Sr. Nts., 11/1/03 500,000 510,000
------------
3,478,115
- ----------------------------------------------------------------------------------------------------------------
Communication Services--1.3%
- ----------------------------------------------------------------------------------------------------------------
Telecommunications: Long Distance--1.0%
Comcast UK Cable Partner Ltd.,
0%/11.20% Sr. Disc. Debs., 11/15/07(2)(11) 850,000 767,125
- ----------------------------------------------------------------------------------------------------------------
Convergent Communications, Inc., 13% Sr. Nts., 4/1/08 500,000 335,000
- ----------------------------------------------------------------------------------------------------------------
Diamond Cable Communications plc,
0%/11.75% Sr. Disc. Nts., 12/15/05(11) 300,000 266,625
- ----------------------------------------------------------------------------------------------------------------
Global Crossing Holdings Ltd., 9.625% Sr. Nts., 5/15/08 750,000 839,062
- ----------------------------------------------------------------------------------------------------------------
GST USA, Inc., 0%/13.875% Gtd. Sr. Disc. Nts., 12/15/05(11) 415,000 311,250
- ----------------------------------------------------------------------------------------------------------------
ICG Holdings, Inc., 0%/12.50% Sr. Sec. Disc. Nts., 5/1/06(2)(11) 470,000 387,750
- ----------------------------------------------------------------------------------------------------------------
Intermedia Communications, Inc., 8.50% Sr. Nts., Series B, 1/15/08 500,000 501,250
- ----------------------------------------------------------------------------------------------------------------
Metromedia Fiber Network, Inc., 10% Sr. Nts., 11/15/08(4) 750,000 808,125
- ----------------------------------------------------------------------------------------------------------------
NTL, Inc., 0%/9.75% Sr. Deferred Coupon Nts., Series B, 4/1/08(11) 500,000 342,500
- ----------------------------------------------------------------------------------------------------------------
PSINet, Inc., 10% Sr. Unsec. Nts., Series B, 2/15/05 1,250,000 1,328,125
- ----------------------------------------------------------------------------------------------------------------
TeleWest Communications plc, 0%/11% Sr. Disc. Debs., 10/1/07(3) 1,000,000 885,000
- ----------------------------------------------------------------------------------------------------------------
Verio, Inc., 11.25% Sr. Nts., 12/1/08(4) 600,000 679,500
------------
7,451,312
- ----------------------------------------------------------------------------------------------------------------
Telecommunications: Wireless--0.3%
Celcaribe SA, 13.50% Sr. Sec. Nts., 3/15/04 350,000 281,750
- ----------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA,
0%/14.125% Sr. Unsec. Deferred Bonds, 3/1/05(2)(11) 300,000 197,625
- ----------------------------------------------------------------------------------------------------------------
Millicom International Cellular SA,
0%/13.50% Sr. Disc. Nts., 6/1/06(11) 750,000 558,750
- ----------------------------------------------------------------------------------------------------------------
Omnipoint Corp.:
11.625% Sr. Nts., 8/15/06 270,000 237,600
11.625% Sr. Nts., Series A, 8/15/06 365,000 321,200
</TABLE>
20 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications: Wireless (continued)
ORBCOMM Global LP/ORBCOMM Capital Corp.,
14% Sr. Nts., 8/15/04 $ 155,000 $ 156,162
- ----------------------------------------------------------------------------------------------------------------
Rural Cellular Corp., 9.625% Sr. Sub. Nts., Series B, 5/15/08(2) 750,000 785,625
------------
2,538,712
- ----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--0.8%
- ----------------------------------------------------------------------------------------------------------------
Autos & Housing--0.5%
Building Materials Corp. of America,
8.625% Sr. Nts., Series B, 12/15/06 50,000 50,875
- ----------------------------------------------------------------------------------------------------------------
Cambridge Industries, Inc., 10.25% Sr. Sub. Nts., Series B, 7/15/07 350,000 292,250
- ----------------------------------------------------------------------------------------------------------------
Collins & Aikman Products Co.,
11.50% Sr. Unsec. Sub. Nts., 4/15/06 200,000 213,500
- ----------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06 200,000 222,000
- ----------------------------------------------------------------------------------------------------------------
Kaufman & Broad Home Corp., 7.75% Sr. Nts., 10/15/04(2) 400,000 396,000
- ----------------------------------------------------------------------------------------------------------------
Key Plastics, Inc., 10.25% Sr. Sub. Nts., Series B, 3/15/07 1,000,000 1,001,250
- ----------------------------------------------------------------------------------------------------------------
Lear Corp., 9.50% Sub. Nts., 7/15/06 900,000 978,750
- ----------------------------------------------------------------------------------------------------------------
Oxford Automotive, Inc., 10.125% Sr. Unsec. Sub. Nts., 6/15/07 900,000 938,250
------------
4,092,875
- ----------------------------------------------------------------------------------------------------------------
Consumer Services--0.0%
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06 100,000 108,500
- ----------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--0.2%
Casino America, Inc., 12.50% Sr. Sec. Nts., 8/1/03(2) 250,000 287,500
- ----------------------------------------------------------------------------------------------------------------
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02 25,000 22,250
- ----------------------------------------------------------------------------------------------------------------
Hard Rock Hotel, Inc., 9.25% Sr. Sub. Nts., 4/1/05 500,000 487,500
- ----------------------------------------------------------------------------------------------------------------
Meristar Hospitality Corp., 8.75% Sr. Sub. Nts., 8/15/07(4) 500,000 480,000
- ----------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 9.50% Sr. Sub. Nts., 4/15/07 250,000 273,750
------------
1,551,000
- ----------------------------------------------------------------------------------------------------------------
Media--0.1%
News America Holdings, Inc., 8.50% Sr. Nts., 2/15/05 1,000,000 1,099,432
- ----------------------------------------------------------------------------------------------------------------
Consumer Staples--1.4%
- ----------------------------------------------------------------------------------------------------------------
Broadcasting--0.9%
Adelphia Communications Corp.,
10.50% Sr. Unsec. Nts., Series B, 7/15/04 500,000 557,500
- ----------------------------------------------------------------------------------------------------------------
Capstar Broadcasting Partners, Inc., 9.25% Sr. Sub. Nts., 7/1/07 400,000 426,000
- ----------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc.:
9.875% Sr. Sub. Debs., 2/15/13 250,000 279,687
10.50% Sr. Sub. Debs., 5/15/16 250,000 298,750
- ----------------------------------------------------------------------------------------------------------------
Falcon Holding Group LP, 0%/9.285% Sr. Disc. Debs.,
Series B, 4/15/10(11) 600,000 418,500
- ----------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 11% Sr. Sec. Nts.,
Series B, 11/1/03(7) 200,000 211,750
</TABLE>
21 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting (continued)
Rogers Cablesystems Ltd.,
10% Second Priority Sr. Sec. Debs., 12/1/07 $ 1,300,000 $ 1,462,500
- ----------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
8.75% Sr. Sub. Nts., 12/15/07 500,000 508,750
9% Sr. Unsec. Sub. Nts., 7/15/07 375,000 383,437
- ----------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,400,000 1,508,573
- ----------------------------------------------------------------------------------------------------------------
TV Azteca SA de CV, 10.50% Sr. Nts., Series B, 2/15/07 200,000 168,500
- ----------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., 8.75% Sr. Sub. Debs., 6/15/07 900,000 927,000
------------
7,150,947
- ----------------------------------------------------------------------------------------------------------------
Entertainment--0.1%
AmeriKing, Inc., 10.75% Sr. Nts., 12/1/06 360,000 382,500
- ----------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--0.3%
Fleming Cos., Inc., 10.625% Sr. Sub. Nts., Series B, 7/31/07 990,000 918,225
- ----------------------------------------------------------------------------------------------------------------
Randall's Food Markets, Inc., 9.375% Sr. Sub. Nts., Series B, 7/1/07 1,315,000 1,430,063
------------
2,348,288
- ----------------------------------------------------------------------------------------------------------------
Household Goods--0.1%
Revlon Consumer Products Corp.:
8.625% Sr. Unsec. Sub. Nts., 2/1/08 500,000 460,000
9% Sr. Nts., 11/1/06 75,000 74,625
- ----------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 10.085%, 3/15/01(9) 260,000 157,300
------------
691,925
- ----------------------------------------------------------------------------------------------------------------
Energy--0.1%
- ----------------------------------------------------------------------------------------------------------------
Energy Services & Producers--0.1%
Gothic Production Corp., 11.125% Sr. Sec. Nts., Series B, 5/1/05(4) 950,000 741,000
- ----------------------------------------------------------------------------------------------------------------
Financial--0.1%
- ----------------------------------------------------------------------------------------------------------------
Diversified Financial--0.1%
AMRESCO, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04 200,000 151,000
- ----------------------------------------------------------------------------------------------------------------
Ocwen Financial Corp., 11.875% Nts., 10/1/03 325,000 307,125
------------
458,125
- ----------------------------------------------------------------------------------------------------------------
Insurance--0.0%
American International Group, Inc.,
11.70% Unsec. Unsub. Bonds, 12/4/01ITL 95,000,000 64,158
- ----------------------------------------------------------------------------------------------------------------
Healthcare--0.0%
- ----------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--0.0%
Integrated Health Services, Inc., 9.50% Sr. Sub. Nts., 9/15/07 55,000 36,575
- ----------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.0%
Sun Healthcare Group, Inc., 9.375% Sr. Sub. Nts., 5/1/08(4) 500,000 102,500
</TABLE>
22 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================================================
Face Market Value
Amount(8) See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology--0.0%
- ----------------------------------------------------------------------------------------------------------------
Computer Services--0.0%
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 $ 100,000 $ 101,625
- ----------------------------------------------------------------------------------------------------------------
Transportation--0.2%
- ----------------------------------------------------------------------------------------------------------------
Air Transportation--0.1%
Trans World Airlines, Inc., 11.50% Sr. Sec. Nts., 12/15/04 950,000 726,750
- ----------------------------------------------------------------------------------------------------------------
Railroads & Truckers--0.1%
Transtar Holdings LP/Transtar Capital Corp.,
0%/13.375% Sr. Disc. Nts., Series B, 12/15/03(11) 1,000,000 987,500
- ----------------------------------------------------------------------------------------------------------------
Shipping--0.0%
Navigator Gas Transport plc,
10.50% First Priority Ship Mtg. Nts., 6/30/07(4) 500,000 370,000
- ----------------------------------------------------------------------------------------------------------------
Utilities--0.2%
- ----------------------------------------------------------------------------------------------------------------
Electric Utilities--0.2%
Calpine Corp.:
8.75% Sr. Nts., 7/15/07 650,000 679,250
10.50% Sr. Nts., 5/15/06 225,000 247,500
- ----------------------------------------------------------------------------------------------------------------
El Paso Electric Co., 9.40% First Mtg. Sec. Nts.,
Series E, 5/1/11 250,000 288,593
- ----------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08(2) 413,792 353,794
------------
1,569,137
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $42,330,514) 41,304,773
================================================================================================================
Repurchase Agreements--8.6%
- ----------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 4.85%,
dated 3/31/99, to be repurchased at $66,008,892 on 4/1/99,
collateralized by U.S. Treasury Nts., 4%--7.875%, 11/30/99--2/15/07,
with a value of $61,002,496, U.S. Treasury Bonds, 8%--10.75%,
2/15/03--11/15/21, with a value of $3,930,310 and U.S. Treasury Bills,
4/8/99--4/22/99, with a value of $2,440,263 (Cost $66,000,000) 66,000,000 66,000,000
- ----------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $634,475,390) 99.8% 761,782,945
- ----------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.2 1,532,276
----- ------------
Net Assets 100.0% $763,315,221
===== ============
</TABLE>
23 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Statement of Investments (Unaudited) (Continued)
================================================================================
- --------------------------------------------------------------------------------
1. A sufficient amount of liquid assets has been designated to cover
outstanding written options, as follows:
<TABLE>
<CAPTION>
Shares Expiration Exercise Premium Market Value
Subject to Call Date Price Received See Note 1
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASM Lithography
Holding NV 27,500 4/99 $ 30 $ 73,860 $ 398,750
- ----------------------------------------------------------------------------------------------------------------
Airtouch Communications, Inc. 15,000 4/99 65 59,548 472,500
- ----------------------------------------------------------------------------------------------------------------
Alaska Air Group, Inc. 18,500 4/99 45 41,069 74,000
- ----------------------------------------------------------------------------------------------------------------
American Express Co. 8,000 4/99 105 24,759 105,000
- ----------------------------------------------------------------------------------------------------------------
BankAmerica Corp. (New) 35,000 5/99 75 79,885 59,063
- ----------------------------------------------------------------------------------------------------------------
Biogen, Inc. 15,000 4/99 80 98,922 515,625
- ----------------------------------------------------------------------------------------------------------------
CBS Corp. 48,000 4/99 33 82,557 402,000
- ----------------------------------------------------------------------------------------------------------------
Centocor, Inc. 15,000 4/99 60 55,798 938
- ----------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. 33,000 4/99 70 172,254 1,394,250
- ----------------------------------------------------------------------------------------------------------------
Federated Department Stores, Inc. 18,000 5/99 45 57,958 9,000
- ----------------------------------------------------------------------------------------------------------------
IBM Corp. 3,000 4/99 180 14,910 9,375
- ----------------------------------------------------------------------------------------------------------------
Intel Corp. 27,000 4/99 105 110,561 405,000
- ----------------------------------------------------------------------------------------------------------------
MCI WorldCom, Inc. 5,500 6/99 65 21,834 134,750
- ----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 12,500 4/99 95 40,249 16,406
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 12,000 4/99 80 55,138 237,000
- ----------------------------------------------------------------------------------------------------------------
Mylan Laboratories, Inc. 30,000 4/99 40 63,691 3,750
- ----------------------------------------------------------------------------------------------------------------
Novell, Inc. 63,000 5/99 20 131,981 338,624
- ----------------------------------------------------------------------------------------------------------------
Rational Software Corp. 60,000 4/99 23 183,604 255,000
- ----------------------------------------------------------------------------------------------------------------
Rational Software Corp. 60,000 4/99 30 163,195 45,000
- ----------------------------------------------------------------------------------------------------------------
STMicroelectronics NV, NY Shares 3,500 4/99 85 20,894 44,188
- ----------------------------------------------------------------------------------------------------------------
Teradyne, Inc. 23,000 4/99 35 102,807 442,750
- ----------------------------------------------------------------------------------------------------------------
Xerox Corp. 16,000 4/99 53 53,758 32,000
---------- ------------
$1,709,232 $ 5,394,969
========== ============
</TABLE>
24 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
(2.) Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
(3.) Non-income producing security.
(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 $7,970,377 or 1.04% of the Fund's net
assets as of March 31, 1999.
(5.) Interest or dividend is paid-in-kind.
(6.) Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows.
(7.) Represents the current interest rate for a variable rate security.
(8.) 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
(9.) For zero coupon bonds, the interest rate shown is the effective yield on
the date of purchase.
(10.) Represents the current interest rate for an increasing rate security.
(11.) Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
See accompanying Notes to Financial Statements.
25 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================================================
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
====================================================================================
====================================================================================
<S> <C>
Assets
Investments, at value (cost $634,475,390)--see accompanying statement $761,782,945
- ------------------------------------------------------------------------------------
Cash 529,832
Receivables and other assets:
Interest, dividends and principal paydowns 6,529,052
Investments sold 1,683,806
Shares of beneficial interest sold 113,987
Other 53,078
------------
Total assets 770,692,700
====================================================================================
Liabilities
Options written, at value (premiums received $1,709,232)--
see accompanying statement--Note 6 5,394,969
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 844,452
Distribution and service plan fees 333,787
Investments purchased 229,082
Trustees' compensation--Note 1 203,044
Shareholder reports 149,081
Transfer and shareholder servicing agent fees 137,833
Custodian fees 46,331
Other 38,900
------------
Total liabilities 7,377,479
====================================================================================
Net Assets $763,315,221
============
====================================================================================
Composition of Net Assets
Paid-in capital $615,241,264
- ------------------------------------------------------------------------------------
Undistributed net investment income 2,557,820
- ------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 21,956,685
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 123,559,452
------------
Net assets $763,315,221
============
</TABLE>
26 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
==================================================================================
==================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $649,437,546 and 46,822,730 shares of beneficial interest outstanding) $13.87
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $14.72
- ----------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $72,036,192 and 5,243,280 shares of beneficial interest outstanding) $13.74
- ----------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$41,841,483 and 3,036,472 shares of beneficial interest outstanding) $13.78
</TABLE>
See accompanying Notes to Financial Statements.
27 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
======================================================================================
Statement of Operations For the Six Months Ended March 31, 1999 (Unaudited)
======================================================================================
======================================================================================
<S> <C>
Investment Income
Interest (net of foreign withholding taxes of $1,560) $ 15,160,823
- --------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $13,895) 3,278,119
------------
Total income 18,438,942
======================================================================================
Expenses
Management fees--Note 4 2,730,084
- --------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 489,788
Class B 374,664
Class C 226,931
- --------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 587,415
- --------------------------------------------------------------------------------------
Shareholder reports 170,038
- --------------------------------------------------------------------------------------
Custodian fees and expenses 82,313
- --------------------------------------------------------------------------------------
Trustees' compensation--Note 1 36,850
- --------------------------------------------------------------------------------------
Registration and filing fees 34,075
- --------------------------------------------------------------------------------------
Legal, auditing and other professional fees 32,652
- --------------------------------------------------------------------------------------
Insurance expenses 6,082
- --------------------------------------------------------------------------------------
Other 79,076
------------
Total expenses 4,849,968
Less expenses paid indirectly--Note 4 (21,000)
------------
Net expenses 4,828,968
======================================================================================
Net Investment Income 13,609,974
======================================================================================
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investments (including premiums on options exercised) 32,952,590
Closing and expiration of option contracts written--Note 6 1,586,327
Foreign currency transactions (513,678)
------------
Net realized gain 34,025,239
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 42,950,265
Translation of assets and liabilities denominated in foreign currencies (286,608)
------------
Net change 42,663,657
------------
Net realized and unrealized gain 76,688,896
======================================================================================
Net Increase in Net Assets Resulting from Operations $ 90,298,870
============
</TABLE>
See accompanying Notes to Financial Statements.
28 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================
Statements of Changes in Net Assets
=================================================================================================================
Six Months Ended Year Ended
March 31, 1999 September 30,
(Unaudited) 1998
=================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 13,609,974 $ 26,538,252
- -----------------------------------------------------------------------------------------------------------------
Net realized gain 34,025,239 65,263,388
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 42,663,657 (128,593,549)
------------- -------------
Net increase (decrease) in net assets resulting from operations 90,298,870 (36,791,909)
=================================================================================================================
Dividends and Distributions to Shareholders Dividends from net investment
income:
Class A (11,675,708) (22,551,335)
Class B (1,002,841) (1,840,926)
Class C (578,629) (1,269,307)
- -----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (54,661,602) (55,838,257)
Class B (6,391,182) (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 14,448,848 20,258,200
Class B (2,131,492) 17,065,629
Class C (7,565,905) 7,078,031
=================================================================================================================
Net Assets
Total increase (decrease) 16,967,437 (83,577,591)
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 746,347,784 829,925,375
------------- -------------
End of period (including undistributed net investment
income of $2,557,820 and $2,205,024, respectively) $ 763,315,221 $ 746,347,784
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
29 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================
Financial Highlights
=================================================================================================================
Class A
---------------------------------------------------------------
Six Months
Ended
March 31,
1999 Year Ended September 30,
(Unaudited) 1998 1997 1996(1)
=================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.69 $16.17 $14.09 $13.07
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .26 .51 .50 .49
Net realized and unrealized gain (loss) 1.40 (1.22) 2.88 .96
------ ------ ------ ------
Total income (loss) from investment
operations 1.66 (.71) 3.38 1.45
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.26) (.49) (.51) (.43)
Distributions from net realized gain (1.22) (1.28) (.79) --
------ ------ ------ ------
Total dividends and distributions
to shareholders (1.48) (1.77) (1.30) (.43)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.87 $13.69 $16.17 $14.09
====== ====== ====== ======
=================================================================================================================
Total Return, at Net Asset Value(3) 12.52% (4.71)% 25.46% 11.22%
=================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $649,438 $624,895 $712,470 $264,359
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $654,563 $699,665 $395,436 $256,765
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.65%(4) 3.34% 3.30% 4.73%(4)
Expenses(5) 1.12%(4) 1.08% 1.16% 1.21%(4)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 6% 59% 51% 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.) For the period from August 29, 1995 (inception of offering) to December 31,
1995.
(3.) 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.
30 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
========================================================================================
========================================================================================
Class B
- ----------------------------------------------------------------------------------------
Six Months
Ended Period
March 31, Ended
Year Ended December 31, 1999 Year Ended September 30, Dec. 31,
1995 1994 (Unaudited) 1998 1997 1996(1) 1995(2)
========================================================================================
<S> <C> <C> <C> <C> <C> <C>
$11.52 $13.05 $13.57 $16.04 $14.01 $13.03 $13.28
- ----------------------------------------------------------------------------------------
.52 .54 .20 .38 .45 .41 .17
2.08 (.75) 1.38 (1.20) 2.78 .93 .41
------ ------ ------ ------ ------ ------ ------
2.60 (.21) 1.58 (.82) 3.23 1.34 .58
- ----------------------------------------------------------------------------------------
(.49) (.53) (.19) (.37) (.41) (.36) (.27)
(.56) (.79) (1.22) (1.28) (.79) -- (.56)
------ ------ ------ ------ ------ ------ ------
(1.05) (1.32) (1.41) (1.65) (1.20) (.36) (.83)
- ----------------------------------------------------------------------------------------
$13.07 $11.52 $13.74 $13.57 $16.04 $14.01 $13.03
====== ====== ====== ====== ====== ====== ======
========================================================================================
22.79% (1.59)% 12.05% (5.49)% 24.34% 10.37% 4.44%
========================================================================================
$251,353 $237,771 $72,036 $73,036 $67,916 $5,996 $1,265
- ----------------------------------------------------------------------------------------
$249,660 $260,767 $75,134 $74,442 $25,113 $3,546 $520
- ----------------------------------------------------------------------------------------
3.97% 4.10% 2.80%(4) 2.53% 2.26% 3.69%(4) 2.62%(4)
1.15% 1.09% 1.97%(4) 1.91% 1.96% 2.12%(4) 2.27%(4)
- ----------------------------------------------------------------------------------------
29% 32% 6% 59% 51% 32% 29%
</TABLE>
(4.) Annualized.
(5.) Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
(6.) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1999 were $38,958,973 and $109,807,264, respectively.
31 Oppenheimer Multiple Strategies Fund
<PAGE>
==============================================================================
Financial Highlights (Continued)
==============================================================================
<TABLE>
<CAPTION>
Class C
----------------------------
Six Months
Ended Year
March 31, Ended
1999 Sept. 30,
(Unaudited) 1998
==============================================================================
<S> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.61 $16.07
- ------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .20 .38
Net realized and unrealized gain (loss) 1.38 (1.20)
------ ------
Total income (loss) from investment
operations 1.58 (.82)
- ------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.19) (.36)
Distributions from net realized gain (1.22) (1.28)
------ ------
Total dividends and distributions
to shareholders (1.41) (1.64)
- ------------------------------------------------------------------------------
Net asset value, end of period $13.78 $13.61
====== ======
==============================================================================
Total Return, at Net Asset Value(3) 11.99% (5.43)%
==============================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $41,841 $48,417
- ------------------------------------------------------------------------------
Average net assets (in thousands) $45,475 $52,325
Ratios to average net assets:
Net investment income 2.80%(4) 2.51%
Expenses(5) 1.97%(4) 1.91%
- ------------------------------------------------------------------------------
Portfolio turnover rate(6) 6% 59%
</TABLE>
(1.) For the nine months ended September 30, 1996. The Fund changed its fiscal
year end from December 31 to September 30.
(2.) For the period from August 29, 1995 (inception of offering) to December 31,
1995.
(3.) 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.
32 Oppenheimer Multiple Strategies Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
==================================================================================
- ----------------------------------------------------------------------------------
Year Ended December 31,
1997 1996(1) 1995 1994
==================================================================================
<S> <C> <C> <C>
$14.02 $13.01 $11.49 $13.05
- ----------------------------------------------------------------------------------
.41 .40 .40 .44
2.83 .96 2.07 (.77)
------ ------ ------ ------
3.24 1.36 2.47 (.33)
- ----------------------------------------------------------------------------------
(.40) (.35) (.39) (.44)
(.79) -- (.56) (.79)
------ ------ ------ ------
(1.19) (.35) (.95) (1.23)
- ----------------------------------------------------------------------------------
$16.07 $14.02 $13.01 $11.49
====== ====== ====== ======
==================================================================================
24.42% 10.55% 21.69% (2.50)%
==================================================================================
$49,539 $21,087 $15,405 $9,182
- ----------------------------------------------------------------------------------
$33,813 $17,898 $11,827 $5,601
2.67% 3.84%(4) 3.08% 3.30%
1.97% 2.07%(4) 1.99% 2.00%
- ----------------------------------------------------------------------------------
51% 32% 29% 32%
</TABLE>
(4.) Annualized.
(5.) Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
(6.) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1999 were $38,958,973 and $109,807,264, respectively.
See accompanying Notes to Financial Statements.
33 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to FInancial Statements (Unaudited)
================================================================================
================================================================================
1. Significant Accounting Policies
Oppenheimer Multiple Strategies Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's objective is to seek high total
investment return consistent with preservation of principal. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares are sold with a front-end
sales charge. Class B and Class C shares may be subject to a contingent deferred
sales charge. All classes of shares have identical rights to earnings, assets
and voting privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to that class and exclusive voting
rights with respect to matters affecting that class. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. 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.
34 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rate of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, 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 six months ended
March 31, 1999, a provision of $12,665 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 $192,330 as of March 31, 1999.
35 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to FInancial Statements (Unaudited)(Continued)
================================================================================
================================================================================
1. Significant Accounting Policies (continued)
The Board of Trustees has adopted a deferred compensation plan for independent
Trustees that enables Trustees to elect to defer receipt of all or a portion of
annual fees they are entitled to receive from the Fund. Under the plan, the
compensation deferred is periodically adjusted as though an equivalent amount
had been invested for the Trustee in shares of one or more Oppenheimer funds
selected by the Trustee. The amount paid to the Trustee under the plan will be
determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
because of the recognition of certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes. The character of the distributions made
during the year from net investment income or net realized gains may differ from
its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and options written and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes. Dividends-in-kind are
recognized as income on the ex-dividend date, at the current market value of the
underlying security. Interest on payment-in-kind debt instruments is accrued as
income at the coupon rate and a market adjustment is made periodically.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
36 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest for each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended March 31, 1999 Year Ended September 30, 1998
-------------------------------- --------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 964,588 $ 13,531,894 2,733,445 $ 41,795,382
Dividends and
distributions reinvested 4,500,262 60,660,051 4,959,787 71,625,634
Redeemed (4,273,561) (59,743,097) (6,121,146) (93,162,816)
------------ ------------ ------------ ------------
Net increase 1,191,289 $ 14,448,848 1,572,086 $ 20,258,200
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------
Class B:
Sold 524,996 $ 7,288,355 1,763,004 $ 26,611,307
Dividends and
distributions reinvested 508,977 6,795,414 459,723 6,577,938
Redeemed (1,171,659) (16,215,261) (1,076,399) (16,123,616)
------------ ------------ ------------ ------------
Net increase (decrease) (137,686) $ (2,131,492) 1,146,328 $ 17,065,629
============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------
Class C:
Sold 235,970 $ 3,293,847 981,223 $ 14,888,603
Dividends and
distributions reinvested 298,467 3,994,067 345,067 4,948,258
Redeemed (1,056,600) (14,853,819) (849,738) (12,758,830)
------------ ------------ ------------ ------------
Net increase (decrease) (522,163) $ (7,565,905) 476,552 $ 7,078,031
============ ============ ============ ============
======================================================================================================
</TABLE>
3. Unrealized Gains And Losses on Investments
As of March 31, 1999, net unrealized appreciation on investments and options
written of $123,621,819 was composed of gross appreciation of $163,806,951, and
gross depreciation of $40,185,132.
37 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to FInancial Statements (Unaudited)(Continued)
================================================================================
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager are in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.75% of the first
$200 million of average annual net assets of the Fund, 0.72% of 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 six months ended March 31, 1999,
was 0.71% of average net assets for each class of shares.
For the six months ended March 31, 1999, commissions (sales charges paid by
investors) on sales of Class A shares totaled $214,120, of which $72,149 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class A, Class
B and Class C shares totaled $10,886, $205,827 and $27,214, respectively.
Amounts paid to an affiliated broker/dealer for Class B and Class C shares were
$15,332 and $1,431, respectively. During the six months ended March 31, 1999,
OFDI received contingent deferred sales charges of $106,095 and $5,381,
respectively, upon redemption of Class B and Class C shares, as reimbursement
for sales commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund and other Oppenheimer funds. OFS's
total costs of providing such services are allocated ratably to these funds.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of shareholder accounts that hold Class A shares. Reimbursement is
made quarterly at an annual rate that may not exceed 0.25% of the average annual
net assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended March 31, 1999, OFDI paid $38,269 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
38 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its costs in distributing Class B and Class C
shares and servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B and Class C shares for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and C shares. Each fee is computed on
the average annual net assets of Class B or Class C shares, determined as of the
close of each regular business day. During the six months ended March 31, 1999,
OFDI paid $4,515 and $6,198, respectively, to an affiliated broker/dealer as
compensation for Class B and Class C personal service and maintenance expenses
and retained $302,441 and $117,996, respectively, as compensation for Class B
and Class C sales commissions and service fee advances, as well as financing
costs. If either Plan is terminated by the Fund, the Board of Trustees may allow
the Fund to continue payments of the asset-based sales charge to OFDI for
distributing shares before the Plan was terminated. As of March 31, 1999, OFDI
had incurred excess distribution and servicing costs of $2,776,434 for Class B
and $581,671 for Class C.
================================================================================
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 fluctuation. Risks to the Fund include the
potential inability of the counterparty to meet the terms of the contract.
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.
39 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to FInancial Statements (Unaudited)(Continued)
================================================================================
================================================================================
6. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into
a closing transaction if a liquid secondary market does not exist.
Written option activity for the six months ended March 31, 1999 was as follows:
<TABLE>
<CAPTION>
Call Options
----------------------------
Number Amount
of Options of Premiums
- --------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at September 30, 1998 5,233 $ 1,967,324
Options written 9,089 2,756,551
Options closed or expired (6,873) (2,243,758)
Options exercised (1,964) (770,885)
----------- -----------
Options outstanding as of March 31, 1999 5,485 $ 1,709,232
=========== ===========
</TABLE>
40 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
================================================================================
================================================================================
7. Illiquid and Restricted Securities
As of March 31, 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 be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of March 31, 1999 was $6,981,504, which represents
0.91% 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 six months ended March
31, 1999.
41 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Notes to FInancial Statements (Unaudited)(Continued)
================================================================================
================================================================================
9. Shareholder Meeting
On December 18, 1998, a shareholder meeting was held at which the following
items and proposals were approved, as described in the Fund's proxy statement
for that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
Nominee/Proposal For Against Withheld/Abstain Total
- ---------------------------------------------------------------------------------------------------------------
Proposal No. 1:
Ratification of the selection of KPMG LLP as independent public accountants and
auditors of the Fund for the fiscal year beginning October 1, 1997.
<S> <C> <C> <C> <C>
28,183,631.878 5,160,136.442 1,431,817.814 34,775,586.134
<CAPTION>
Proposal No. 2:
Approval of changes to the fundamental investment policy regarding investments
in other investment companies.
<S> <C> <C> <C> <C>
21,154,884.705 6,438,019.845 2,381,076.584 29,973,981.134
<CAPTION>
Trustees:
Approval of election of 11 Trustees:
<S> <C> <C> <C> <C>
Robert G. Galli 28,545,648.538 6,229,937.596 34,775,586.134
Leon Levy 28,740,627.820 6,034,958.314 34,775,586.134
Benjamin Lipstein 28,567,429.581 6,208,156.553 34,775,586.134
Bridget A. Macaskill 28,698,498.641 6,077,087.493 34,775,586.134
Elizabeth B. Moynihan 28,683,532.062 6,092,054.072 34,775,586.134
Kenneth A. Randall 28,769,325.920 6,006,260.214 34,775,586.134
Edward V. Regan 28,819,101.301 5,956,484.833 34,775,586.134
Russell S. Reynolds, Jr. 28,721,085.273 6,054,500.861 34,775,586.134
Donald W. Spiro 28,667,021.642 6,108,564.492 34,775,586.134
Pauline Trigere 28,489,705.294 6,285,880.840 34,775,586.134
Clayton K. Yeutter 28,666,556.952 6,109,029.182 34,775,586.134
</TABLE>
42 Oppenheimer Multiple Strategies Fund
<PAGE>
================================================================================
Oppenheimer Multiple Strategies Fund
================================================================================
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
George Evans, Vice President
Michael S. Levine, Vice President
David P. Negri, Vice President
Richard H. Rubinstein, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder
Servicing Agent OppenheimerFunds Services
================================================================================
Custodian of
Portfolio Securities The Bank of New York
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalow & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
of the independent auditors. This is a copy of a report
to shareholders of Oppenheimer Multiple Strategies
Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Multiple Strategies Fund. For
material information concerning the Fund, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
43 Oppenheimer Multiple Strategies Fund
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
- ---------------------------
www.oppenheimerfunds.com
- ---------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-525-7048
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Account Transactions
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- ---------------------------
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- ---------------------------
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- ---------------------------
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- ---------------------------
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Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
- ---------------------------
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Information and services
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As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
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When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[LOGO]OppenheimerFunds(R)
Distributor, Inc.
RS0240.001.0399 May 28, 1999
