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<PAGE>
OPPENHEIMER
VARIABLE ACCOUNT
FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1994
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Face Market
GOVERNMENT OBLIGATIONS -- 47.7% Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas, Series I, 4.25%,
4/1/01(4)(6) $ 483,182(2) $ 266,388
Past Due Interest Bonds, 4.1875%, 3/31/05 125,000 90,391
Bote, 3.30%, 4/1/00 470,444 402,943
Australia (Commonwealth of) Bonds, Series 98, 12.50%, 3/15/98 200,000 161,575
Brazil (Federal Republic of):
Banco Central Do Brasil, 5.1875%, 10/15/99 15,714 13,436
Banco Estado Minas, 10%, Nts., 1/15/96 240,000 228,000
Banco Nacional Com Ext, 7.25% Debs., 2/2/04 400,000 324,734
Bonds, Banco Nacional De Desenvolvimento Economico e Social,
10.375%, 4/27/98(8) 50,000 47,000
Empresa Columbiana de Petroleos, Nts., 7.25%, 7/8/98(8) 150,000 144,000
Past Due Interest Bonds, 8.75%, 1/1/01(4) 198,000 137,858
Canada (Government of) Bonds, 9.25%, 10/01/96 200,000 146,721
Federal Home Loan Mortgage Corp., 8.95%, 3/15/20 58,000 59,534
Italy (Republic of):
Treasury Bonds:
12%, 9/1/97 150,000,000 98,354
12.50%, 1/1/98 100,000,000 66,264
Treasury Bonds, Buoni Poliennali Del Tes:
12%, 5/1/97 125,000,000(2) 81,804
12%, 1/17/99 15,000,000(2) 9,840
12%, 5/18/99 150,000,000(2) 98,875
12.50%, 3/19/98 10,000,000(2) 6,633
United Mexican States:
Gtd. Petroleos Mexicanos, 7.60%, 6/15/00 100,000 90,500
Petacalco Topolobampo TR, 8.125% Sr., 12/15/03(8) 250,000 211,875
Morocco (Kingdom of) Loan Participation Agreement:
Tranche A, 4.50%, 1/1/09(4)(8) 300,000 209,888
Tranche B ,4.312%, 1/1/04(4)(8) 50,000 36,769
New South Wales Treasury Corp. Bonds, 9.25%, 2/18/03 100,000 69,594
Polish People's Republic Loan Participation Agreement:
5.0625%, 2/3/24 500,000(2) 182,500
7.9375%, 2/28/24 250,000(2) 67,268
Spain (Kingdom of):
Bonds, 11.45%, 8/30/98(7) 84,500,000(2) 672,465
Gtd. Bonds, Bonos Y Obligacion Del Estado:
11.60%, 1/15/97 3,000,000(2) 23,528
U.S. Treasury Bonds, 7.875%, 2/15/21 500,000 507,656
U.S. Treasury Nts:
3.875%, 4/30/95 100,000 98,781
4.25%, 5/15/96 2,289,000 2,215,324
5.125%, 4/30/98 120,000 113,475
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Face Market
GOVERNMENT OBLIGATIONS (CONTINUED) Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
United Kingdom Treasury Nts:
12%, 11/20/98 $ 10,000 $ 17,413
12.25%, 3/26/99 30,000 52,831
Treasury Corp. Victoria, 12.00%, 10/22/98 200,000 160,327
Venezuela (Republic of):
6.75% Debs., 9/20/95(8) 200,000 191,125
9.00% Sr., 5/27/96(8) 50,000 48,750
Bariven SA Sr. Nts., Gtd. by Petroleos de Venezuela, 10.75%,
7/8/97 300,000 191,618
---------------
Total Government Obligations (Cost $8,026,536) 7,546,037
CORPORATE BONDS AND NOTES -- 49.9%
Aerospace/Defense -- 2.4% GPA Holland, 8.625%, 1/15/99(8) 250,000 198,462
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs.,
10/15/05(3) 300,000 177,000
---------------
375,462
Chemicals -- 5.7% Atlantis Group, Inc., 11% Sr. Nts., 2/15/03 130,000 131,300
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 200,000 204,000
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 100,000 86,500
Rexene Corp., 10% Sub. Nts., 11/15/02 52,000 48,216
Rexene Corp., 9% Sr. Nts., 11/15/99 200,000 195,000
Stone Container Corp., 9.875% Sr. Nts., 2/01/01 250,000 233,750
---------------
898,766
Communication -- 8.8% American Telecasting, Inc., 12.5%, 6/15/99 200,000 105,000
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A,
10/1/03 200,000 199,000
Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 100,000 101,750
Celcaribe SA, 0/13.50% Sr. Sec. Nts., 3/15/04 CICS INV(3)(8) 150,000 92,290
Echostar Communications Corp., 12.875%, Sr. Sec. Disc. Nts.,
6/1/04 250,000 133,125
Imax Corp., 7% Sr. Nts., 3/1/01(4)(8) 200,000 183,500
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 150,000 148,500
Panamsat LP/Panamsat Capital Corp., 9.75% Sr. Sec. Nts.,
8/1/00 150,000 149,250
USA Mobile Communication, 9.50% Sr. Nts., 2/1/04 300,000 274,500
---------------
1,386,915
Consumer Cyclicals -- 2.5% NewCity Communications, Inc., 11.375%, Sr. Sub. Notes.,
11/1/03 200,000 206,500
Penda Industries, 10.75% Sr. Nts., 3/1/04(8) 200,000 196,000
---------------
402,500
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Consumer Goods: Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 $ 200,000 $ 199,000
Manufacturing -- 4.2%
Harman International Industries, Inc., 12% Sr. Sub. Nts.,
8/1/02 150,000 162,750
MacAndrews & Forbes Holdings, Inc., 13% Sub. Debs., 3/1/99 175,000 174,125
Revlon Consumer Products Corp., 9.375% Sr. Nts., 4/1/01 150,000 129,000
---------------
664,875
Consumer Non-Cyclicals -- 2.0% Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05(6) 157,000 155,872
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 150,000 154,500
---------------
310,372
Distribution -- 0.8% Thrifty Payless Holdings, 12.25% Sr. Sub. Nts., 4/15/04 125,000 131,875
---------------
Energy/Coal -- 0.9% Maxus Energy Corp., 9.875% Nts., 10/15/02 150,000 144,375
---------------
144,375
Financial -- 4.5% Banco Do Nordeste Brasil, 9.0% Sr. Unsec. Debs., 11/12/96(8) 100,000 95,000
Card Establishment Services, Inc., 10% Sr. Sub. Nts., Series
B, 10/1/03 300,000 286,500
Morgan Guaranty Trust Co. of New York (Singapore Branch) CD,
12.15%, 2/3/95 211,325,000 97,389
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A,
12/1/11(8) 250,000 225,625
---------------
704,514
General Industrial -- 5.4% Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 150,000 147,750
Polymer Group, 12.25%, 7/15/02(8) 200,000 200,500
Snydergeneral Corp., 14.25% Sr. Sub. Debs., 11/15/00 250,000 266,250
Tiphook Financial Corp., 10.75% Sr. Nts., 11/1/02 200,000 157,000
Transportacion Maritima Mexicana SA, 8.50% Nts., 10/15/00 100,000 87,750
---------------
859,250
Leisure/Entertainment -- 4.1% Casino Magic Finance Corp., 11.50% First Mtg. Nts., 10/15/01 200,000 185,000
Kloster Cruise Ltd., 13% Sr. Sec. Nts., 5/1/03 200,000 208,500
Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series
B, 4/15/98 200,000 124,000
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 150,000 137,250
---------------
654,750
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Real Estate -- 2.2% NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 $ 150,000 $ 147,750
Saul (B.F.) Real Estate, 11.625% Sr. Nts., 4/1/02 200,000 196,000
---------------
343,750
Retail -- 0.8% R.H. Macy & Co., Inc., 14.50% Sr. Sub. Debs., 10/15/98 200,000 125,000
---------------
125,000
Utilities -- 5.6% Beaver Valley Funding Corp., 9.% Debs., 6/1/17 200,000 168,167
First PV Funding Corp., Public Service of New Mexico:
10.15% Debs., 1/15/16 200,000 189,682
10.30% Debs., 1/15/14 300,000 287,410
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(8) 250,000 233,750
---------------
879,009
Total Non-Convertible Corporate Bonds and Notes (Cost
$8,051,067) 8,035,724
INDEXED INSTRUMENTS -- 2.9%
Citibank CD, 16.00%, 5/3/95(5) 64,500,000(2) 154,311
Financiera Energetica Nacional Nts., 6.625%, 2/13/96(5) 150,000 144,938
Lehman Brothers, S&P 500 Index Linked Nts. 4.5626%, 8/9/94(8) 7,000 9,525
Swiss Bank Corporation Investment Banking, Inc., 10% CD
Sterling Rate Linked Nts., 7/3/95 160,000 158,320
---------------
Total Derivative Securities (Cost $462,528) 467,094
<CAPTION>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.0% UNITS
------------
<S> <C> <C> <C>
Mexican Value Recov Rights(1) 250,000 0
Terex Corp., Rts., 6/3/94(1)(8) 36 51
---------------
Total Rights, Warrants and Certificates (Cost $55) 51
<CAPTION>
PREFERRED STOCKS -- 2.4% SHARES
------------
<S> <C> <C> <C>
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A(8) 2,000 88,500
Glendale Federal Bank, F.S.B., $6.375 Non-Cum. Cv. Series E 5,000 141,875
Prime Retail, Inc., $19.00 Cv., Series B 6,000 147,750
---------------
Total Preferred Stocks (Cost $381,925) 378,125
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS -- 0.2% SHARES Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Celcaribe SA(1)(8) 24,390 $ 29,959
---------------
Total Common Stocks (Cost $29,024) 29,959
Total Investments, at Value (Cost $16,951,135) 103.1% 16,302,679
Liabilities in Excess of Other Assets (3.1) (496,091)
------------ ---------------
Net Assets 100.0% $15,806,588
------------ ---------------
------------ ---------------
</TABLE>
(1) Non-income producing security.
(2) Face amount reported in foreign currency.
(3) Represents a zero coupon bond that converts to a fixed rate of interest at a
designated future date.
(4) Represents the current interest rate for a variable security.
(5) Indexed instrument for which the prinicipal amount due at maturity is
affected by the relative value of a foreign security.
(6) Interest is paid in kind.
(7) Securities with an aggregate market value of $672,465 are segregated to
collateralize outstanding forward foreign currency exchange contracts. See
Note 5 of Notes to Financial Statements.
(8) The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The fund intends to invest no more than 10% of its
net assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A
of the Act that are determined to be liquid by the Board of Trustees or by
the Manager under Board-approved guidelines. Restricted and illiquid
securities amount to $454,644 or 2.88% of the Fund's net assets at June 30,
1994.
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit June 30, 1994
- ----------------------------------------------------------------------------------- ---------------- -------- -------------
<S> <C> <C> <C>
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A(9) 1/31/94 $ 53.75 $ 44.25
Banco Do Nordeste Brasil, 9.0% Sr. Unsec. Debs., 11/12/96(9) 4/19/94 $ 92.58 $ 95.00
Bonds, Banco Nacional De Desenvolvimento Economico e Social: 10.375%, 4/27/98(9) 5/03/94 $ 97.10 $ 94.00
Celcaribe SA, 0/13.50% Sr. Sec. Nts., 3/15/04 CICS INV(9) 5/17/94 $ 60.78 $ 61.53
Celcaribe SA(9) 5/17/94 $ 1.19 $ 1.23
Empresa Columbiana de Petroleos, Nts., 7.25%, 7/8/98(9) 4/25/94 $ 93.25 $ 96.00
GPA Holland, 8.625%, 1/15/99 1/10/94 $ 78.13 $ 79.38
Imax Corp., 7% Sr. Nts., 3/1/01(9) 2/22/94 $ 92.39 $ 91.75
Lehman Brothers, S&P 500 Index Linked Nts. 4.5626%, 8/9/94 5/06/94 $ 1.55 $ 1.36
Morocco (Kingdom of) Loan Participation Agreement:
Tranche A, 4.5% 1/1/09 2/23/94-4/19/94 $ 78.83 $ 69.96
Tranche B, 4.312% 1/1/04 5/26/94 $ 80.00 $ 73.54
Penda Industries, 10.75% Sr. Nts., 3/1/04(9) 4/11/94 $ 97.75 $ 98.00
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Strategic Bond Fund
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit June 30, 1994
- ----------------------------------------------------------------------------------- ---------------- -------- -------------
<S> <C> <C> <C>
Petacalco Topolobampo TR, 8.125% Sr., 12/15/03(9) 5/18/94 $ 87.38 $ 84.75
Polymer Group, 12.25%, 7/15/02(9) 6/17/94 $ 100.00 $100.25
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08(9) 12/20/93 $ 99.93 $ 93.50
Terex Corp., Rts., 6/3/94(9) 4/05/94 $ 1.52 $ 1.50
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A 12/1/11(9) 11/18/93 $ 100.00 $ 90.25
Venezuela (Republic of):
6.75% Debs., 9/20/95(9) 4/6/94-5/19/94 $ 95.14 $ 95.56
9.00% Sr., 5/27/96(9) 5/19/94 $ 95.90 $ 97.50
</TABLE>
9. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES -- 1.4% Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Industrial Credit and Investment Corp. India Ltd., 2.50% Cv.
Debs., 4/30/00 (4) 1,375,000 $ 1,189,375
Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99 (4) 300,000 345,000
Mediobanca, 4.25% Debs., 1/1/00 497,120,000(3) 315,597
Scici Ltd.:
3.50% Cv. Bonds, 4/1/04 (4) 375,000 474,141
3.50% Cv. Bonds, 4/1/04 285,000 354,825
---------------
Total Corporate Bonds and Notes (Cost $2,871,169) 2,678,938
---------------
<CAPTION>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.4% Units
------------
<S> <C> <C> <C>
China Aerospace International Holdings Ltd.
Wts., Exp. 12/95 (2) 480,000 37,261
Ciba-Geigy AG Wts. Exp. 6/95 (2) 100 598
Eurotunnel SA Wts., Exp. 10/95 (2) 30,000 6,430
La Rinascente SpA di Risp (2) 62,140 37,879
La Rinascente SpA, Ordinary (2) 62,140 75,661
RWE AG Wts., Exp. 3/96 (2) 2,500 241,918
Societa Finanziora Telefonica SPA Wts., Exp. 9/94 (2) 30,000 409,393
---------------
Total Rights, Warrants and Certificates (Cost $528,320) 809,140
---------------
<CAPTION>
PREFERRED STOCKS -- 2.1% Shares
------------
<S> <C> <C> <C>
Marschollek, Lautenschlaeger und Partner AG (Cost $3,418,291) 6,500 4,063,909
---------------
COMMON STOCKS -- 94.9%
BASIC MATERIALS -- 12.8%
Chemicals: Specialty -- 1.4% Indo Gulf Fertilizer, GDR (1)(2)(4) 147,000 524,849
Minerals Technologies, Inc. 40,000 1,160,000
PT Argha Karya Prima Industry (1)(2) 700,000 1,048,433
---------------
2,733,282
---------------
Metals: Miscellaneous -- 1.5% Capex SA-GDR (1)(2)(4) 124,000 2,464,500
Hindalco Industries Ltd., GDR (1)(2) 12,000 438,000
---------------
2,902,500
---------------
Paper and Forest
Products -- 6.1% Empresa Nacional de Cellulosas SA (1)(2) 100,000 1,838,895
Enso-Gutzeit Oy, Cl. A Free (1) 40,000 301,712
Forsheda B Free (1)(2) 100,000 1,431,456
Hansol Paper (1)(2) 25,000 1,232,883
Indah Kiat (1)(2) 600,000 760,402
Mo och Domsjo AB, Series B Free (1)(2) 75,000 2,957,257
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
BASIC MATERIALS (CONTINUED)
<S> <C> <C> <C>
Paper and Forest Products (Continued)
PT Sumalindo Lestari Jaya (1)(2) 191,000 756,992
PT Sumalindo Lestari Jaya, Ordinary (1)(2) 159,000 630,166
Rottneros Bruks AB, Free (1)(2) 2,000,000 1,938,972
---------------
11,848,735
---------------
Steel -- 3.8% China Steel Corp., GDR (1)(2)(4) 87,200 1,569,600
Dofasco, Inc. 120,000 1,617,766
Korea Iron & Steel Works (1)(2) 50,000 1,614,859
Pohang Iron & Steel Co. Ltd. (1) 5,000 556,660
Ugine SA 34,600 2,053,627
---------------
7,412,512
---------------
CONSUMER CYCLICALS -- 14.8%
Automobiles -- 5.2% CIADEA SA (1)(2) 126,620 1,395,447
CONSORCIO G GRUPO DINA SA, Sponsored ADR (1) 20,000 210,000
Fiat SpA di Risp. (1) 768,000 1,833,825
Fiat SpA, Preference 1,000 2,486
Mahindra & Mahindra Ltd., GDR (1)(2) 120,000 1,444,092
Mayne Nickless Ltd. (1) 85,000 491,874
Nissan Motor Co. (1) 250,000 2,217,619
Volvo AB, Series B Free (1) 28,500 2,484,877
---------------
10,080,220
---------------
Auto Parts: After
Market -- 1.1% Epeda-Bertrand Faure SA (1) 14,000 2,128,662
---------------
Broadcast Media -- 0.2% Television Broadcast (1) 100,000 394,605
---------------
Household Furnishings and
Appliances -- 3.4% Battery Technologies, Inc. (2) 90,000 293,152
Electrolux AB, Series B Free (1) 40,000 1,837,469
Moulinex Espana 2,500 78,837
Philips Gloeilamp NV (1) 150,000 4,319,402
---------------
6,528,860
---------------
Publishing -- 0.6% Roto Smeets de Boer (1) 60,000 1,260,526
---------------
Retail: Specialty -- 2.1% Vereinigte Baubeschlag (2) 7,000 4,057,626
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Retail Stores:
General Merchandise Modelo Supermercados SA (2) 20,000 560,350
Chains -- 1.2%
Rinascente SpA di Risp 112,000 403,272
Rinascente SpA, Ordinary (1) 223,700 1,413,094
---------------
2,376,716
---------------
Textiles: Apparel
Manufacturers1.0% Indian Rayon and Industries Ltd., GDR (2)(4) 30,000 640,758
Pang Rim Spinning Co. (1)(2) 20,000 1,267,043
---------------
1,907,801
---------------
CONSUMER NON-CYCLICALS -- 7.3%
Beverages: Alcoholic -- 0.2% Jinro Ltd. (2) 19,000 469,675
---------------
Drugs -- 0.8% Astra AB Free, Series A 50,000 1,008,526
Pharmavit (2) 40,000 485,000
---------------
1,493,526
---------------
Food Processing -- 1.2% Grupo Herdez SA 700,000 836,933
Molinos Rio de la Plata SA (2) 75,000 984,350
PT Sinar Mass Agro Resources & Technology (2) 68,000 97,147
United Foods Co. Ltd. 300,600 456,197
---------------
2,374,627
---------------
Healthcare:
Miscellaneous -- 1.6% Genzyme Corp. (1)(2) 60,000 1,567,500
Plant Genetics Systems International NV (2)(4) 9,104 98,323
Takare PLC (1) 450,000 1,479,445
---------------
3,145,268
---------------
Hospital Management -- 0.9% Community Psychiatric Centers 100,000 1,187,500
Rhoen Klinikum AG 120 85,582
Rhoen Klinikum AG, Preference 660 373,245
---------------
1,646,327
---------------
Housewares -- 0.4% Srithai Superware Co. Ltd. (2) 105,100 839,484
---------------
Medical Products -- 0.3% Elekta Instrument AB, Series B Free (2) 29,700 591,335
---------------
Retail Stores: Food
Chains -- 1.9% Carulla SA (2) 107,000 1,270,625
President Enterprises Corp. (2)(4) 37,070 546,783
PT Fast Food Indonesia (2) 105,000 290,335
Spar Handels AG, Non-Vtg. 6,500 1,490,781
---------------
3,598,524
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
ENERGY -- 6.0%
<S> <C> <C> <C>
Oil: Integrated
International -- 2.2% Elf Gabon SA 8,000 1,553,447
OeMV AG (2) 13,500 1,063,045
YPF Sociedad Anonima, Sponsored ADR 47,300 1,129,288
YuKong Ltd. 11,605 493,018
YuKong Ltd., New 698 29,653
---------------
4,268,451
---------------
Oil and Gas Drilling -- 3.4% Compania Naviera Perez SA (2) 250,000 1,194,745
Morgan Hydrocarbons, Inc. (2) 300,000 1,194,324
Petroleum Geo-Services AS 172,000 2,526,347
Transocean Drilling AS (2) 279,960 1,652,892
---------------
6,568,308
---------------
Oil Well Services and
Equipment -- 0.4% Coflexip SA, Sponsored ADR (2) 25,000 512,500
TH Loy Industries Berhad (2) 127,500 328,198
---------------
840,698
---------------
FINANCIAL -- 11.2%
Financial Services:
Miscellaneous -- 3.2% Central Investment & Finance Corp. (2) 22,320 443,614
Coryo Securities Corp. 20,000 387,566
Hyundai Securities Co. 200 5,739
Industrial Finance Corp. (2) 540,000 1,099,876
Instituto Mobilare Italiano 231,900 1,564,505
KLB Securities (2) 11,988 238,264
Sang Up Securities Co. Ltd. (2) 15,000 419,242
Sangyoug Investment & Securities (2) 20,600 593,672
Sturge Holdings PLC 480,000 400,075
Taipei Fund, Cl. B, IDR (2)(4) 8 604,960
Taiwan Fund, Inc. 14,800 397,750
---------------
6,155,263
---------------
Insurance: Multi-Line -- 0.4% Union Des Assurances Fed. (2) 7,500 785,883
---------------
Insurance: Property and
Casualty -- 1.1% Reinsurance Australia Corp. (2) 1,474,100 2,046,399
---------------
Major Banks: Other -- 6.5% Akbank T.A.S. (2) 5,158,752 2,435,788
Banco Frances del Rio de la Plata SA (2) 109,326 815,390
Banco de Galicia, Series B 132,500 889,421
Grupo Financiero Banamex Accival SA, Class C 250,000 1,631,061
Grupo Financiero Bancomer, Series C 504,000 568,371
Korea First Bank (2) 80,000 1,182,573
Kwangju Bank (2) 100,000 1,163,941
PT Panin Bank (4) 700,000 1,161,341
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
FINANCIAL (CONTINUED)
<S> <C> <C> <C>
Major Banks: Other (Continued)
Shin Han Bank Ltd. 18,050 347,536
Skandinaviska Enskilda Banken Group (2) 300,000 1,780,211
Turkiye Garanti Bankasi AS, Sponsored ADR (4) 460,000 721,510
---------------
12,697,143
---------------
INDUSTRIAL -- 30.9%
Building Materials
Group -- 0.9% Ceramicas Carabobo CA, Sponsored ADR, Cl. B (2) 120,000 110,064
Internacional de Ceramica SA, Series B (2) 25,000 137,865
Internacional de Ceramica SA, Series B ADR (2) 10,000 275,730
Sung Shin Cement (2) 28,000 1,217,355
---------------
1,741,014
---------------
Commercial Services -- 2.4% BIS SA (2) 50,000 2,990,569
Eurotunnel SA, ESA-Unites (2) 224,000 913,017
PT Intraco Penta (2) 100,000 162,910
PT Wicaksana (2) 375,000 561,661
---------------
4,628,157
---------------
Conglomerates -- 5.4% Catena AB, Series A Free (2) 425,000 3,871,438
Commercial del Plata (2) 37,700 221,716
Grupo Carso SA, ADS (2)(4) 80,000 1,443,008
Hutchison Whampoa Ltd. 250,000 1,026,943
Jardine Matheson Holdings Ltd. 443,400 3,413,306
Nederlandse Participatie Maatschappij NV (2) 20,000 593,848
---------------
10,570,259
---------------
Containers: Metal and
Glass -- 0.6% M C Packaging Corp Ltd. 3,000,000 1,077,077
---------------
Electrical Equipment -- 0.8% PT Kabelmetal Indonesia 800,000 1,179,775
PT Supreme Cable Manufacturing Corp. 94,500 435,503
---------------
1,615,278
---------------
Engineering and
Construction -- 3.3% BAU Holdings AF, Preference (2) 15,000 1,481,479
BAU Holdings AG (2) 500 50,053
Babcock International Group PLC (2) 4,400,000 2,020,442
Cubiertas Y Mzov SA Compania General 10,000 763,673
Leighton Holdings Ltd. 627,803 963,280
SNC Lavalin Group 44,800 486,415
VA Technologie AG (2)(4) 8,100 666,062
---------------
6,431,404
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
INDUSTRIAL (CONTINUED)
<S> <C> <C> <C>
Machinery: Diversified -- 4.7% Bobst Bearers AG 2,306 2,981,749
Maschinenfabrik Berthold Hermle AG (2) 5,101 673,104
Powerscreen International PLC 430,000 1,792,004
Tampella AB (2) 505,000 1,552,212
Tampella AB, Free (2) 133,333 409,824
Traub AG (2) 12,000 1,696,568
---------------
9,105,461
---------------
Manufacturing: Diversified
Industrials -- 3.4% Aalberts Industries NV 43,800 1,852,637
Autoliv AB (2) 125,000 2,830,379
Valmet Corp., Cl. A (2) 76,000 1,232,492
Vitro Sociedad Anonima, ADR 40,000 760,000
---------------
6,675,508
---------------
Transportation:
Miscellaneous -- 6.4% Brambles Industries Ltd. (2) 200,000 1,905,537
Kvaerner Industrier AS 25,132 1,013,327
Lisnave-Estal Naval Lisboa (2) 291,250 1,154,311
Malaysian International Shipping Corp. 400,000 1,390,783
Royal Nedlloyd Groep NV (2) 85,000 3,004,814
Singmarine Industries Ltd. 437,500 918,009
Unitor Ships Service AS (2) 100,000 1,713,608
Westmont Berhad 200,000 1,283,208
---------------
12,383,597
---------------
Truckers -- 3.0% ASG AB, Series B Free 35,000 537,447
Aktiengesellschaft fuer Industrie und Verkehrswesen AG 5,000 1,759,404
Danzas Holding AG 1,400 1,695,152
Koninklijke Frans Maas Groep NV 61,300 1,820,144
---------------
5,812,147
---------------
TECHNOLOGY -- 6.6%
Aerospace/Defense -- 0.0% China Aerospace International Holdings Ltd. (2) 400 77
---------------
Computer Software and
Services -- 1.1% Sap AG, Preference 650 1,304,944
Sligos SA 10,500 843,835
---------------
2,148,779
---------------
Electronics:
Semiconducters -- 2.3% Austria Mikro Systems AG 60,000 3,448,293
Samsung Electronics Co. Ltd., Sponsored GDR (2)(4) 18,000 1,057,500
---------------
4,505,793
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
TECHNOLOGY (CONTINUED)
<S> <C> <C> <C>
Telecommunications -- 3.2% Airtouch Communications, Inc. (2) 85,000 2,008,125
Grupo Iusacell SA (2) 3,483 91,864
Grupo Iusacell SA, ADR (2) 8,127 211,302
International CableTel, Inc. 6,700 140,700
Millicom International Cellular SA (2) 121,678 2,524,819
Netas Telekomunik (2) 1,320,000 623,259
Technology Resources Industries (2) 140,000 570,144
---------------
6,170,213
---------------
UTILITIES -- 5.3%
Electric Companies -- 2.3% Calcutta Electric Supply (2) 15,000 757,500
Central Puerto SA, ADR (4) 20,000 644,210
Enersis SA, ADR 25,000 528,125
Korea Electric Power Co. (2) 25,000 832,273
Tata Electric Cos. (2)(4) 500 225,000
Veba AG (2) 5,000 1,572,467
---------------
4,559,575
---------------
Telephone -- 3.0% Societa Finanziora Telefonica SPA 115,000 352,689
Societa Italiana per L'Eserrcizio delle Telecomunicazioni SPA 900,000 2,239,978
Telefonica de Espana, ADS 225,000 3,026,198
Telefonos de Mexico SA, Sponsored ADR 3,000 167,625
---------------
5,786,490
---------------
Total Common Stocks (Cost $186,166,458) 184,363,785
Total Investments, at Value (Cost $192,984,238) 98.8% 191,915,772
Other Assets Net of Liabilities 1.2 2,400,967
------------ ---------------
Net Assets 100.0% $ 194,316,739
------------ ---------------
------------ ---------------
</TABLE>
(1) Securities with an aggregate market value of $45,922,683 are segregated to
collateralize outstanding forward foreign currency exchange contracts. See
Note 5 of Notes to Financial Statements.
(2) Non-income producing security.
(3) Face amount is reported in foreign currency.
(4) The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Fund intends to invest no more than 10% of its
net assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A
of the Act that are determined to be liquid by The Board of Trustees or by
the Manager under Board-approved guidelines. Restricted and illiquid
securities amount to $703,283, or 0.36% of the Fund's net assets, at June
30, 1994.
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Global Securities Fund
<TABLE>
<CAPTION>
Valuation
Cost Per Unit as of
Security Acquisition Date Per Unit June 30, 1994
- ---------------------------------------------------------------------------- --------------------- ---------- --------------
<S> <C> <C> <C>
Capex SA-GDR(5) 6/13/94 $ 20.00 $ 123.23
Central Puerto SA, ADR(5) 11/23/93 $ 26.50 $ 32.21
China Steel Corp., GDR(5) 3/29/94-6/8/94 $ 20.53 $ 18.00
Grupo Carso SA, ADS(5) 1/26/94-6/17/94 $ 18.03 $ 18.04
Indian Rayon and Industries Ltd., GDR(5) 1/28/94 $ 22.51 $ 21.36
Indo Gulf Fertilizer, GDR(5) 1/17/94 $ 4.51 $ 3.57
Industrial Credit and Investment Corp. India Ltd., 2.50% Cv. Debs.,
4/30/00(5) 2/3/94 $ 1.08 $ .87
Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99(5) 11/9/93 $ 100.00 $ 115.00
Plant Genetics Systems International NV 5/27/92 $ 11.18 $ 10.80
President Enterprises Corp.(5) 2/7/94 $ 25.25 $ 14.75
PT Panin Bank(5) 7/28/94-4/14/94 $ 1.30 $ 1.66
Samsung Electronics Co., Ltd., Sponsored GDR(5) 11/4/93-5/31/94 $ 48.25 $ 58.75
Scici Ltd., 3.50% Cv. Bonds, 4/1/04(5) 10/19/93 $ 100.00 $ 1.26
Taipei Fund, Cl. B, IDR. 12/29/93 $80,000.00 $ 75,620.00
Tata Electric Cos.(5) 2/22/94 $ 710.00 $ 450.00
Turkiye Garanti Bankasi AS, Sponsored ADR(5) 10/29/93-6/9/94 $ 2.23 $ 1.57
VA Technologie AG(5) 5/19/94 $ 77.29 $ 82.23
</TABLE>
5. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 12.2% Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Repurchase agreement with The First Boston Corp., 4.125%,
dated 6/30/94, to be repurchased at $7,100,814 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a
value of $7,250,331 (Cost $7,100,000) $ 7,100,000 $ 7,100,000
---------------
<CAPTION>
COMMON STOCKS -- 87.7% Shares
------------
<S> <C> <C> <C>
BASIC MATERIALS -- 1.3%
Chemicals -- 0.9% Great Lakes Chemical Corp. 10,000 541,250
---------------
Chemicals: Diversified -- 0.4% FMC Corp. (1) 4,000 216,500
---------------
CONSUMER CYCLICALS -- 13.7%
Auto Parts: After
Market -- 1.0% Goodyear Tire & Rubber Co. 15,000 540,000
---------------
Automobiles -- 1.0% Harley-Davidson, Inc. 13,000 594,750
---------------
Broadcast Media -- 1.1% Multimedia, Inc. (1) 12,000 348,000
Tele-Communications, Inc., Cl. A (1) 15,000 305,625
---------------
653,625
---------------
Entertainment -- 1.0% King World Productions, Inc. (1) 14,000 558,250
---------------
Leisure Time -- 1.4 Acclaim Entertainment, Inc. (1) 25,000 405,470
Caesar's World, Inc. (1) 7,000 253,750
International Game Technology 8,000 151,000
---------------
810,220
---------------
Publishing -- 0.1% Marvel Entertainment Group, Inc. (1) 4,000 73,000
---------------
Restaurants -- 1.2% McDonald's Corp. 9,000 259,875
Shoney's, Inc. (1) 28,000 427,000
---------------
686,875
---------------
Retail: Specialty -- 3.3% Blockbuster Entertainment Corp. 16,000 414,000
Circuit City Stores, Inc. 10,000 205,000
CML Group, Inc. 17,000 199,750
Home Depot, Inc. (The) 14,000 589,750
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Retail: Specialty (Continued)
Intelligent Electronics, Inc. 11,000 $ 166,375
Michaels Stores, Inc. (1) 10,000 336,250
---------------
1,911,125
---------------
Retail: Specialty
Apparel -- 0.7% Gap, Inc. (The) 9,000 384,750
---------------
Retail Stores: Department
Stores -- 0.9% May Department Stores Co. 14,000 549,500
---------------
Retail Stores: General
Merchandise Chains -- 0.9% Wal-Mart Stores, Inc. 21,000 509,250
---------------
Textiles: Apparel
Manufacturers -- 0.5% Fruit of the Loom, Inc., Cl. A (1) 12,000 313,500
---------------
Toys -- 0.6% Mattel, Inc. 13,750 348,906
---------------
CONSUMER NON-CYCLICALS -- 20.6%
Beverages: Soft Drinks -- 2.5% Coca-Cola Co. (The) 23,000 934,375
PepsiCo, Inc. 16,000 490,000
---------------
1,424,375
---------------
Drugs -- 3.5% Forest Laboratories, Inc. (1) 6,500 282,750
Merck & Co., Inc. 7,500 223,125
Pfizer, Inc. 13,000 820,625
Schering-Plough Corp. 9,000 551,250
Upjohn Co. 6,000 174,750
---------------
2,052,500
---------------
Food Processing -- 0.8% ConAgra, Inc. 4,000 122,000
General Mills, Inc. 3,000 163,875
Heinz (H.J.) Co. 6,000 191,250
---------------
477,125
---------------
Healthcare:
Diversified -- 3.9% Abbott Laboratories 25,000 725,000
American Home Products Corp. 4,500 255,375
Bristol-Myers Squibb Co. 4,500 241,312
IVAX Corp. 10,500 171,938
Johnson & Johnson 6,000 257,250
Smithkline Beecham PLC ADR Equity Unit 4,000 112,500
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
CONSUMER NON-CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Healthcare: Diversified (Continued)
Warner-Lambert Co. 8,000 $ 528,000
---------------
2,291,375
---------------
Healthcare:
Miscellaneous -- 4.0% Amgen, Inc. (1) 9,000 385,875
National Health Laboratories, Inc. 21,000 254,625
United Healthcare Corp. 22,000 1,009,250
U.S. Healthcare, Inc. 18,000 666,000
---------------
2,315,750
---------------
Hospital Management -- 1.5% Columbia/HCA Healthcare Corp. 12,000 450,000
HealthCare COMPARE Corp. (1) 16,000 284,000
Healthtrust, Inc.-The Hospital Co. (1) 4,000 111,000
---------------
845,000
---------------
Household Products -- 1.0% Colgate-Palmolive Co. 6,000 312,000
Procter & Gamble Co. 5,500 293,562
---------------
605,562
---------------
Medical Products -- 2.2% Cordis Corp. (1) 10,000 388,125
Medtronic, Inc. 9,000 721,125
St. Jude Medical, Inc. 5,000 162,500
---------------
1,271,750
---------------
Tobacco -- 1.2% Philip Morris Cos., Inc. 10,000 515,000
UST, Inc. 6,000 162,750
---------------
677,750
---------------
ENERGY -- 2.4%
Coal -- 0.5% Pittston Co. 10,000 267,500
---------------
Oil: Exploration and
Production -- 0.4% Maxus Energy Corp. (1) 52,000 260,000
---------------
Oil: Integrated
Domestic -- 0.7% Pennzoil Co. 3,500 179,375
Quaker State Corp. 15,500 217,000
---------------
396,375
---------------
Oil: Integrated
International -- 0.6 Royal Dutch Petroleum Co. 3,500 366,188
---------------
Oil and Gas Drilling -- 0.2% Rowan Cos., Inc. (1) 16,200 141,750
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
FINANCIAL -- 25.1%
<S> <C> <C> <C>
Financial Services:
Miscellaneous -- 11.0% Advanta Corp., Cl. A 22,000 $ 783,750
Bear Stearns Cos., Inc. (The) 17,293 293,981
Countrywide Credit Industries, Inc. 33,000 474,375
Credit Local De France 8,250 563,723
Federal Home Loan Mortgage Corp. 8,000 484,000
Federal National Mortgage Assn. 8,700 726,450
Green Tree Financial Corp. 16,000 896,000
MBIA, Inc. 5,000 286,875
Paine Webber Group, Inc. 29,250 457,031
Student Loan Marketing Assn. 7,000 252,000
SunAmerica, Inc. 13,000 531,375
Travelers, Inc. 20,000 645,000
---------------
6,394,560
---------------
Insurance: Life -- 3.7 AFLAC, Inc. 11,250 379,687
Conseco, Inc. 14,000 652,750
Lincoln National Corp. 10,000 423,750
Torchmark Corp. 6,000 234,000
UNUM Corp. 10,000 447,500
---------------
2,137,687
---------------
Insurance: Property and
Casualty -- 1.3% Continental Corp. 6,000 93,000
Progressive Corp. 10,200 339,150
USF&G Corp. 27,800 340,550
---------------
772,700
---------------
Major Banks: Other -- 1.6% Bank of Boston Corp. 21,000 517,125
Mellon Bank Corp. 7,000 393,750
---------------
910,875
---------------
Major Banks: Regional -- 6.5% Banc One Corp. 12,788 437,989
First Fidelity Bancorporation 5,000 231,875
First Interstate Bancorp 11,000 847,000
Midlantic Corp. 19,000 555,750
Shawmut National Corp. 18,000 396,000
Signet Banking Corp. 20,000 807,500
SunTrust Banks, Inc. 5,000 241,875
UJB Financial Corp. 9,000 248,625
---------------
3,766,614
---------------
Money Center Banks -- 1.0% Chase Manhattan Corp. 15,000 573,750
---------------
INDUSTRIAL -- 4.0%
Conglomerates -- 0.6% ITT Corp. 4,000 326,500
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
INDUSTRIAL (CONTINUED)
<S> <C> <C> <C>
Containers: Metal and
Glass -- 0.3% Crown Cork & Seal Co., Inc. (1) 5,000 $ 186,250
---------------
Electrical Equipment -- 0.9% General Electric Co. 11,000 512,875
---------------
Machinery: Diversified -- 1.2% Novellus Systems, Inc. (1) 8,000 278,000
Varity Corp. (1) 11,000 400,125
---------------
678,125
---------------
Railroads -- 0.6% Illinois Central Corp. 10,000 331,250
---------------
Transportation:
Miscellaneous -- 0.4% American President Cos. Ltd. 10,000 223,750
---------------
TECHNOLOGY -- 19.1%
Aerospace/Defense -- 0.2% Northrop Corp. 4,000 148,500
---------------
Computer Software and
Services -- 6.8% Automatic Data Processing, Inc. 8,000 425,000
BMC Software, Inc. (1) 10,000 437,500
Ceridian Corp. (1) 14,600 359,525
Computer Associates International, Inc. 12,000 480,000
Computer Sciences Corp. (1) 6,000 249,750
Electronic Arts, Inc. (1) 10,000 140,000
EMC Corp. (1) 31,000 418,500
Microsoft Corp. (1) 16,400 844,600
Novell, Inc. (1) 16,000 268,000
Oracle Systems Corp. (1) 8,000 300,000
---------------
3,922,875
---------------
Computer Systems -- 5.7% AST Research, Inc. (1) 13,000 185,250
Cabletron Systems, Inc. (1) 8,000 773,000
Cisco Systems, Inc. (1) 25,000 584,375
Compaq Computer Corp. (1) 10,500 338,625
Seagate Technology (1) 13,500 266,625
3Com Corp. (1) 8,000 411,000
Unisys Corp. (1) 40,500 374,625
Western Digital Corp. (1) 29,000 369,750
---------------
3,303,250
---------------
Electronics: Defense -- 0.8% General Motors Corp., Cl. H 12,500 448,438
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Growth Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
TECHNOLOGY (CONTINUED)
<S> <C> <C> <C>
Electronics:
Instrumentation -- 1.8% American Power Conversion Corp. (1) 32,000 $ 516,000
Belden, Inc. 30,000 555,000
---------------
1,071,000
---------------
Electronics:
Semiconductors -- 1.5% Intel Corp. 12,000 702,000
National Semiconductor Corp. (1) 10,000 172,500
---------------
874,500
---------------
Telecommunications -- 2.3% Airtouch Communications, Inc. (1) 4,300 101,588
American Telephone & Telegraph Co. 12,000 652,500
Hong Kong Telecommunications Ltd., Sponsored ADR 30,000 562,500
---------------
1,316,588
---------------
UTILITIES -- 1.5%
Electric Cos. -- 0.1% Niagara Mohawk Power Corp. 4,000 60,500
---------------
Telephone -- 1.4% BellSouth Corp. 2,500 154,375
Telefonos de Mexico SA, Sponsored ADR 12,000 670,500
---------------
824,875
---------------
Total Common Stocks (Cost $45,214,124) 50,869,963
---------------
Total Investments, at Value (Cost $52,314,124) 99.9% 57,969,963
Other Assets Net of Liabilities .1 47,172
------------ ---------------
Net Assets 100.0% $58,017,135
------------ ---------------
------------ ---------------
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 22.8% Amount Value -- Note 1
------------ ---------------
<S> <C> <C> <C>
Repurchase agreement with The First Boston Corp., 4.125% dated
6/30/94, to be repurchased at $33,003,781 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a
value of $33,698,723 (Cost $33,000,000) $ 33,000,000 $ 33,000,000
---------------
CORPORATE BONDS AND NOTES -- 1.9%
Intelcom Group, Inc., 7% Cv. Sub. Nts., 10/30/98 1,035,000 523,292
Medaphis Corp., 6.50% Cv. Sub. Debs., 1/1/00 (2) 1,000,000 1,113,750
Solectron Corp., 0% Liq. Yld. Opt. Sub. Nts., 5/5/12 2,000,000 1,085,000
---------------
Total Corporate Bonds and Notes (Cost $2,652,772) 2,722,042
---------------
<CAPTION>
RIGHTS AND WARRANTS -- 0.0% Units
------------
<S> <C> <C> <C>
Tapistron International, Inc., Wts., Exp. 06/97(1) 120,000 60,000
Windmere Corp., Wts., Exp.01/98(1) 381 --
---------------
Total Rights and Warrants (Cost $52,860) 60,000
---------------
<CAPTION>
COMMON STOCKS -- 77.7% Shares
------------
<S> <C> <C> <C>
BASIC MATERIALS -- 2.9%
Chemicals -- 1.8% Geon Co. (The) 30,000 780,000
Georgia Gulf Corp.(1) 25,000 856,250
Methanex Corp.(1) 85,000 998,750
---------------
2,635,000
---------------
Metals: Diversified -- 1.1% Birmingham Steel Corp. 59,000 1,593,000
---------------
CONSUMER CYCLICALS -- 28.0%
Airlines -- 0.9% Atlantic Southeast Airlines, Inc. 55,000 1,333,750
---------------
Auto Parts: After
Market -- 1.0% AutoZone, Inc.(1) 60,000 1,462,500
---------------
Broadcast Media -- 0.7% IDB Communications Group, Inc.(1) 113,750 1,052,187
---------------
Entertainment -- 1.0% Autotote Corp.(1) 21,000 330,750
Iwerks Entertainment, Inc.(1) 47,000 311,375
Players International, Inc.(1) 32,000 480,000
RIO HOTEL & CASINO, INC.(1) 24,000 312,000
---------------
1,434,125
---------------
Homebuilding -- 0.5% Lennar Corp. 40,500 764,437
---------------
Hotels/Motels -- 3.0% Carnival Cruise Lines, Inc., Cl. A 22,000 973,500
Hospitality Franchise Systems, Inc.(1) 50,000 1,225,000
Mirage Resorts, Inc.(1) 50,000 937,500
Promus Cos., Inc. (The)(1) 40,000 1,185,000
---------------
4,321,000
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Household Furnishings and
Appliances -- 1.7% Heilig-Meyers Co. 22,500 $ 610,313
Rhodes, Inc. 30,000 480,000
Sunbeam-Oster, Inc. 66,000 1,320,000
---------------
2,410,313
---------------
Leisure Time -- 2.8% Brunswick Corp. 62,000 1,364,000
Caesar's World, Inc.(1) 20,000 725,000
Grand Casinos, Inc.(1) 29,000 398,750
Innovative Gaming Corp. of America(1) 105,000 761,250
International Game Technology 20,000 377,500
Outboard Marine Corp. 25,000 500,000
---------------
4,126,500
---------------
Publishing -- 0.7% Scientific Games Holdings Corp.(1) 28,000 973,000
---------------
Restaurants -- 1.7% Apple South, Inc. 67,500 978,750
Outback Steakhouse, Inc.(1) 60,500 1,459,562
---------------
2,438,312
---------------
Retail Stores: Department
Stores -- 3.3% Dollar General Corp. 66,000 1,650,000
Kohl's Corp.(1) 17,000 799,000
Nordstrom, Inc. 55,000 2,337,500
---------------
4,786,500
---------------
Retail: Specialty -- 6.5% Ann Taylor Stores, Inc.(1) 20,000 767,500
Bed Bath & Beyond, Inc.(1) 20,000 572,500
Blockbuster Entertainment Corp. 45,000 1,164,375
CML Group, Inc. 21,000 246,750
General Nutrition Cos., Inc.(1) 51,400 886,650
Intelligent Electronics, Inc. 24,000 363,000
Lowe's Cos., Inc. 38,000 1,301,500
Office Depot, Inc.(1) 30,000 600,000
Rex Stores Corp.(1) 35,000 577,500
Spiegel, Inc., Cl. A 30,000 570,000
Staples Inc.(1) 30,000 810,000
Sunglass Hut International, Inc.(1) 5,000 136,250
Viking Office Products, Inc.(1) 59,000 1,475,000
---------------
9,471,025
---------------
Shoes -- 1.9% Nike, Inc., Cl. B 46,000 2,748,500
---------------
Textiles: Apparel
Manufacturers -- 2.3% Mohawk Industries, Inc.(1) 36,000 630,000
Norton McNaughton, Inc.(1) 30,900 625,725
Phillips-Van Heusen Corp. 15,000 376,875
Tapistron International, Inc.(1) 60,000 138,750
Tommy Hilfiger Corp.(1) 38,700 1,538,325
---------------
3,309,675
---------------
CONSUMER NON-CYCLICALS -- 9.5%
Drugs -- 1.4% Nature's Bounty, Inc.(1) 19,900 159,200
R.P. Scherer Corp.(1) 35,000 1,155,000
Roberts Pharmaceutical Corp.(1) 35,000 726,250
---------------
2,040,450
---------------
Healthcare:
Diversified -- 0.7% Value Health, Inc.(1) 25,500 975,375
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
CONSUMER NON-CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Healthcare:
Miscellaneous -- 4.8% Athena Neurosciences, Inc.(1) 16,700 $ 112,725
Celtrix Pharmaceuticals, Inc.(1) 20,000 125,000
Cephalon, Inc.(1) 15,000 135,000
Elan Corp. PLC(1) 40,000 1,390,000
Ethical Holdings, Sponsored ADR(1) 50,000 275,000
Genesis Health Ventures, Inc.(1) 38,000 964,250
Genetic Therapy, Inc.(1) 23,000 224,250
Horizon Healthcare Corp.(1) 92,700 2,120,513
Intergroup Healthcare Corp.(1) 13,000 572,000
Isis Pharmaceuticals, Inc.(1) 20,000 135,000
Martek Biosciences Corp.(1) 50,000 500,000
Matrix Pharmaceutical, Inc.(1) 20,000 205,000
PerSeptive Biosystems, Inc.(1) 15,000 243,750
---------------
7,002,488
---------------
Agriculture
Biotechnology -- 0.7% Dentsply International, Inc.(1) 30,000 1,050,000
---------------
Hospital Management -- 1.9% American Medical Response, Inc.(1) 15,000 386,250
Lincare Holdings, Inc.(1) 59,000 1,143,125
Mariner Health Group, Inc.(1) 30,000 581,250
Quorum Health Group, Inc.(1) 36,000 630,000
---------------
2,740,625
---------------
ENERGY -- 2.9%
Natural Gas:
Processing -- 0.6% Louis Dreyfus Natural Gas Corp.(1) 27,400 383,600
Newfield Exploration Co.(1) 20,000 452,500
---------------
836,100
---------------
Oil: Integrated
Domestic -- 0.3% Trident NGL Holding, Inc. 40,000 390,000
---------------
Oil and Gas Drilling -- 1.2% Cross Timbers Oil Co. 30,800 431,200
International Colin Energy Corp.(1) 25,000 290,625
St. Mary Land & Exploration Co. 50,000 612,500
Stone Energy Corp.(1) 35,000 393,750
---------------
1,728,075
---------------
Oil Well Services and
Equipment -- 0.8% NUMAR Corp.(1) 30,000 330,000
Weatherford International, Inc.(1) 60,000 810,000
---------------
1,140,000
---------------
FINANCIAL -- 6.4%
Financial Services:
Miscellaneous -- 3.7% Advanta Corp., Cl. B 60,000 1,935,000
First USA, Inc. 48,400 1,857,350
Foothill Group, Inc. (The), Cl. A 41,000 481,750
Green Tree Financial Corp. 15,000 840,000
Servicios Financieros Quadrum SA, Sponsored ADR(1) 15,000 231,563
---------------
5,345,663
---------------
Insurance: Life -- 1.3% Bankers Life Holding Corp. 10,000 201,250
Mid Atlantic Medical Services(1) 18,000 801,000
Physicians Health Services, Inc., Cl. A(1) 38,400 873,600
---------------
1,875,850
---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
FINANCIAL (CONTINUED)
<S> <C> <C> <C>
Insurance: Property And
Casualty -- 0.6% Mid Ocean Ltd.(1) 22,000 $ 552,750
Partnerre Holdings, Ltd. 17,000 344,250
---------------
897,000
---------------
Major Banks: Regional -- 0.8% First Interstate Bancorp 15,000 1,155,000
---------------
INDUSTRIAL -- 7.6%
Building Materials
Group -- 0.4% Martin Marietta Materials, Inc.(1) 27,000 594,000
---------------
Commercial Services -- 0.5% Manpower, Inc. 36,000 756,000
---------------
Conglomerates -- 0.9% Grupo Carso SA, ADS(1)(2) 70,000 1,262,632
---------------
Electrical Equipment -- 0.8% AER Energy Resources, Inc.(1) 52,000 273,000
C-Cube Microsystems, Inc.(1) 32,000 504,000
GaSonics International Corp.(1) 25,000 306,250
---------------
1,083,250
---------------
Machinery: Diversified -- 1.1% Duracraft Corp. 20,000 875,000
Novellus Systems, Inc.(1) 20,000 695,000
---------------
1,570,000
---------------
Manufacturing: Diversified
Industrials -- 1.6% Johnstown America Industries, Inc.(1) 48,000 972,000
Trinity Industries, Inc. 40,000 1,405,000
---------------
2,377,000
---------------
Railroads -- 0.9% Southern Pacific Rail Corp.(1) 66,000 1,295,250
---------------
Transportation:
Miscellaneous -- 1.4% Federal Express Corp.(1) 27,000 2,014,875
---------------
TECHNOLOGY -- 20.4%
Communication: Equipment
Manufacturers -- 1.4% Aspect Telecommunications Corp.(1) 20,000 557,500
Glenayre Technologies, Inc.(1) 31,000 1,216,750
Transaction Network Services, Inc.(1) 25,000 221,875
---------------
1,996,125
---------------
Computer Software And
Services -- 7.5% Cadence Design Systems, Inc.(1) 80,000 1,340,000
Cornerstone Imaging, Inc.(1) 45,200 655,400
CUC International, Inc.(1) 41,000 1,096,750
Danka Business System PLC, Sponsored ADR 11,100 442,612
Davidson & Associates, Inc.(1) 29,000 449,500
EMC Corp.(1) 99,000 1,336,500
FTP Software, Inc.(1) 40,000 610,000
HBO & Co. 40,000 1,010,000
Network Peripherals, Inc.(1) 100,000 625,000
Reynolds & Reynolds Co., Cl. A 35,000 809,375
Sap AG, Preference 444 880,244
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
------------ ---------------
TECHNOLOGY (CONTINUED)
<S> <C> <C> <C>
Computer Software And Services (Continued)
Sierra On-Line, Inc.(1) 50,000 $ 825,000
Sybase, Inc.(1) 17,000 833,000
---------------
10,913,381
---------------
Computer Systems -- 2.3% Cabletron Systems, Inc.(1) 8,000 773,000
First Data Corp. 25,000 1,034,375
Pyxis Corp.(1) 80,000 1,520,000
---------------
3,327,375
---------------
Electronics -- 0.8% California Micro Devices Corp.(1) 55,000 1,182,500
---------------
Electronics:
Instrumentation -- 4.5% American Power Conversion Corp.(1) 26,000 419,250
CMC Industries, Inc.(1) 55,000 192,500
Gentex Corp.(1) 35,000 892,500
Linear Technology Corp. 17,500 770,000
Molex, Inc., CL. A 45,000 1,653,750
Recoton Corp.(1) 30,000 952,500
Sanmina Corp.(1) 30,000 517,500
Symbol Technologies, Inc.(1) 45,000 1,125,000
---------------
6,523,000
---------------
Electronics:
Semiconductors -- 1.2% Advanced Technology Materials, Inc.(1) 47,800 239,000
Altera Corp.(1) 20,000 565,000
Applied Materials, Inc.(1) 17,000 726,750
MRS Technology, Inc.(1) 32,100 272,850
---------------
1,803,600
---------------
Telecommunications -- 2.7% LCI International, Inc.(1) 41,700 1,334,400
LDDS Communications, Inc.(1) 86,354 1,511,195
Millicom International Cellular, S.A.(1) 50,000 1,037,500
---------------
3,883,095
---------------
Total Common Stocks (Cost $113,822,232) 112,618,533
---------------
Total Investments, at Value (Cost $149,527,864) 102.4% 148,400,575
Liabilities in Excess of Other Assets (2.4) (3,477,384)
------------ ---------------
Net Assets 100.0% $144,923,191
------------ ---------------
------------ ---------------
</TABLE>
1. Non-income producing security
2. The Fund owns securities purchased in private placement transactions, without
registration under the Securities Act of 1933 (the Act). The securities are
valued under methods approved by the Board of Trustees as reflecting fair
value. The Fund intends to invest no more than 10% of its net assets
(determined at the time of purchase) in restricted and illiquid securities,
excluding securities eligible for resale pursuant to Rule 144A of the Act
that are determined to be liquid by the
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Capital Appreciation Fund
Board of Trustees or by the Manager under Board-approved guidelines.
Restricted and illiquid securities amount to $523,292 or .36% of the Fund's
net assets, at June 30, 1994.
<TABLE>
<CAPTION>
Valuation Per
Cost Unit as of
Security Acquisition Date Per Unit June 30, 1994
- ---------------------------------------- --------------------- -------- -------------
<S> <C> <C> <C>
Grupo Carso SA, ADS(3) 1/26/93 $ 12.37 $ 18.04
Intelcom Group, Inc., 7%, Cvv. Sub.
Nts., 10/30/98 11/2/93-4/27/94 $ 99.43 $ 50.56
Medaphis Corp., 6.50% Cvv. Sub Debs.,
1/1/00(3) 12/22/92 $ 100.00 $111.38
</TABLE>
3. Transferable under Rule 144A of the Act
See accompanying Notes to Financial Statements
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 20.3% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Repurchase agreement with The First Boston Corp., 4.125%,
dated 6/30/94, to be repurchased at $24,802,842 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a
value of $25,325,101 (Cost $24,800,000) $ 24,800,000 $ 24,800,000
---------------
GOVERNMENT OBLIGATIONS -- 38.5%
Bank Negara Indonesia Bonds, 0%, 5/12/95 3,000,000,000(1) 1,214,627
Corporacion Andina de Fomento:
Bonds, 6.625%, 10/14/98 (5) 1,000,000 920,000
Nts., 7.25%, 4/30/98 (5) 1,000,000 960,000
Czechoslovakia National Bank Nts., 7%, 4/16/96 (5) 1,000,000 1,000,000
Denmark (Kingdom of), 9% Nts., 11/15/98 7,000,000(1) 1,165,206
Empresa Columbiana de Petroleos Nts.:
7.25%, 7/8/98 (5) 1,250,000 1,190,625
7.25%, 7/8/98 (5) 750,000 720,000
Federal National Mortgage Assn., Collateralized Mtg.
Obligations, Guaranteed Real Estate Mortgage Investment
Conduit Pass-Through Certificates:
8.75%, 11/25/05 3,000,000 3,109,560
10.40%, 4/25/19 2,000,000 2,140,560
Interest-Only Stripped Mtg.-Backed Security:
Trust 240, Class 2, 7%, 9/25/23 (4) 1,736,485 639,515
Trust 257, Class 2, 7%, 2/25/24 (4) 2,861,573 1,062,806
Financiera Energetica Nacional Nts., 6.625%, 12/13/96 1,850,000 1,787,562
Germany (Federal Republic of) Treuhandanstalt Bonds, 7.375%,
12/2/02 1,500,000(1) 957,241
Italy (Republic of) Treasury Bonds, Buoni Poliennali del
Tes:
12.50%, 6/16/97 2,100,000,000(1) 1,403,492
12%, 1/17/99 800,000,000(1) 524,809
Mexico (United Mexican States) CETES, 0%, 10/16/94 7,057,840 1,992,525
Spain (Kingdom of) Bonds, 11.45%, 8/30/98 135,000,000(1) 1,074,352
United Kingdom Treasury Nts.:
12.25%, 3/26/99 500,000(1) 880,519
10%, 9/8/03 1,075,000(1) 1,772,819
U.S. Treasury Bonds:
8%, 11/15/21 5,000,000 5,165,625
7.25%, 8/15/22 6,000,000 5,705,621
7.125%, 2/15/23 3,000,000 2,807,811
U.S. Treasury Nts.:
6.875%, 8/15/94 1,000,000 1,003,438
5.875%, 5/15/95 3,000,000 3,011,250
7.875%, 6/30/96 1,000,000 1,032,500
6.375%, 6/30/97 1,000,000 997,500
6%, 12/31/97 3,000,000 2,939,061
---------------
Total Government Obligations (Cost $47,806,803) 47,179,024
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
MUNICIPAL BONDS AND NOTES -- 5.4% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
City of New York Taxable General Obligation Bonds, Series D:
9%, 2/1/13 $ 500,000 $ 527,495
9.90%, 2/1/15 500,000 553,877
Connecticut State Taxable General Obligation Bonds, 6.625%,
12/15/97 650,000 650,972
Dade County, Florida Educational Facilities Authority
Taxable Exchange Revenue Bonds, University of Miami, MBIA
Insured:
7.65%, 4/1/10 325,000 368,958
9.70%, 4/1/10 175,000 198,685
New York State Environmental Facilities Corp. State Service
Contract Taxable Revenue Bonds: Series A, 9.625%, 3/15/21 375,000 395,204
Series B:
7.30%, 3/15/97 200,000 202,751
8.15%, 3/15/02 800,000 826,108
Pinole, California Redevelopment Agency Tax Allocation
Taxable Bonds, Pinole Vista Redevelopment, Series B, 8.35%,
8/1/17 1,320,000 1,385,738
Port of Portland, Oregon Taxable Special Obligation Revenue
Bonds, PAMCO Project, 9.20%, 5/15/22 1,500,000 1,569,618
---------------
Total Municipal Bonds and Notes (Cost $6,308,344) 6,679,406
---------------
CORPORATE BONDS AND NOTES -- 34.1%
BASIC MATERIALS -- 2.9%
Chemicals -- 1.9% Quantum Chemical Corp., 10.375% Fst. Mtg. Bonds, 6/1/01 2,100,000 2,372,553
---------------
Paper and Forest
Products -- 1.0% R.P. Scherer International Corp., 6.75% Sr. Nts., 2/1/04 1,250,000 1,168,750
---------------
CONSUMER CYCLICALS -- 9.2%
Automotive -- 0.7% Chrysler Corp., 10.95% Debs., 8/1/17 800,000 899,273
---------------
Entertainment -- 2.1% Circus Circus Enterprises, Inc., 6.75% Sr. Sub. Nts.,
7/15/03 1,225,000 1,089,026
Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub. Nts.,
2/1/98 500,000 533,355
Eastman Kodak Co., 10% Nts., 6/15/01 250,000 264,980
Mattel, Inc., 6.875% Sr. Nts., 8/1/97 700,000 692,331
---------------
2,579,692
---------------
Home
Building/Development -- 1.9% Noranda Forest, Inc., 11% Debs., 7/15/98 1,000,000(1) 746,452
Scotia Pacific Holding Co., 7.95% Timber Collateralized
Nts., 7/20/15 1,628,719 1,525,352
---------------
2,271,804
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Hotels -- 0.7% Host Marriott Hospitality, Inc.:
10.125% Sr. Nts., Series F, 1/15/99 $ 228,000 $ 231,420
10.625% Sr. Nts., Series B, 2/1/00 190,000 191,900
11% Sr. Nts., Series L, 5/1/07 475,000 477,375
---------------
900,695
---------------
Media -- 3.0% GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (5) 1,177,635 1,284,359
News America Holdings, Inc.:
12% Sr. Nts., 12/15/01 500,000 574,028
10.125% Gtd. Sr. Debs., 10/15/12 500,000 527,610
Time Warner Entertainment Co. LP, 8.375% Sr. Debs., 3/15/23 500,000 447,500
Time Warner, Inc., 7.45% Nts., 2/1/98 800,000 792,000
---------------
3,625,497
---------------
Textiles/Apparel -- 0.8% Fruit of the Loom, Inc., 7% Debs., 3/15/11 1,097,000 946,163
---------------
CONSUMER NON-CYCLICALS -- 1.9%
Food -- 1.3% Philip Morris Cos., Inc., 8.875% Nts., 7/1/96 500,000 516,446
RJR Nabisco, Inc., 10.50% Sr. Nts., 4/15/98 1,000,000 1,060,986
---------------
1,577,432
---------------
Food and Drug
Distribution -- 0.6% Revco D.S., Inc., 9.125% Sr. Nts., 1/15/00 750,000 753,750
---------------
ENERGY -- 2.2%
Oil and Gas:
Integrated -- 0.9% Tenneco Inc.:
7.875% Nts., 10/1/02 650,000 643,083
10% Debs., 3/15/08 400,000 432,007
---------------
1,075,090
---------------
Oil and Gas: Equipment and
Services -- 1.0% McDermott, Inc., 9.375% Nts., 3/15/02 400,000 420,584
Sonat, Inc., 9.50% Nts., 8/15/99 250,000 268,804
Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 500,000 512,092
---------------
1,201,480
---------------
Oil and Gas: Exploration and
Production -- 0.3% Atlantic Richfield Co., 10.375% Nts., 7/15/95 375,000 390,371
---------------
FINANCIAL -- 7.3%
Banks/Savings and
Loans -- 1.5% Chemical New York Corp., 9.75% Sub. Cap. Nts., 6/15/99 200,000 216,820
First Chicago Corp., 11.25% Sub. Nts., 2/20/01 750,000 877,288
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
FINANCIAL (CONTINUED)
<S> <C> <C> <C>
Banks/Savings and Loans (Continued)
First Fidelity Bancorporation, 8.50% Sub. Cap. Nts., 4/1/98 $ 100,000 $ 102,955
Heller Financial, Inc., 7.75% Nts., 5/15/97 475,000 483,375
NBD Bancorp, Inc., 7.25% Sub. Debs., 8/15/04 165,000 156,546
---------------
1,836,984
---------------
Financial/Insurance -- 5.8% First Boston Mortgage Securities Corp., 7.04% Mtg.
Pass-Through Ctfs., 10/25/02 1,982,310 1,883,195
General Motors Acceptance Corp.:
8% Nts., 10/1/96 700,000 713,941
7.75% Nts., 4/15/97 700,000 707,650
5.50% Nts., 12/15/01 300,000 255,739
Paine Webber Group, Inc., 7.75% Sub. Nts., 9/1/02 450,000 427,078
Resolution Trust Corp. Commercial Mtg. Pass-Through
Certificates:
9%, Series 1991-M5, Cl. A, 3/25/17 1,585,896 1,617,615
8.25%, Series 1992-CHF, Cl. C, 12/25/20 1,129,005 1,103,779
Shearson Lehman Brothers Holdings, Inc., 8.375% Nts.,
2/15/99 350,000 354,588
---------------
7,063,585
---------------
INDUSTRIAL -- 0.9%
Railroads/Equipment -- 0.9% American Car Line Co., 8.25% Equipment Trust Ctfs., Series
1993-A, 4/15/08 660,000 643,500
Union Pacific Corp., 9.65% Med.-Term Nts., 4/17/00 400,000 436,848
---------------
1,080,348
---------------
TECHNOLOGY -- 4.4%
Aerospace/Defense -- 0.8% AMR Corp., 10% Debs., 4/15/21 975,000 960,200
---------------
Cable Television -- 3.2% TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 3,600,000 3,924,000
---------------
Communication -- 0.4% GTE Corp., 9.375% Debs., 12/1/00 500,000 540,491
---------------
UTILITIES -- 5.3%
Boise Cascade Corp., 9.90% Nts., 3/15/00 750,000 804,401
BP America, Inc., 10.875% Nts., 8/1/01 650,000(1) 486,076
Coastal Corp., 11.75% Sr. Debs., 6/15/06 2,000,000 2,252,500
Commonwealth Edison Co.:
6.50% Nts., 7/15/97 550,000 536,282
6.40% Nts., 10/15/05 275,000 229,162
Long Island Lighting Co., 7% Debs., 3/1/04 500,000 409,485
Mitchell Energy & Development Corp., 9.25% Sr. Nts., 1/15/02 1,000,000 1,053,348
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
UTILITIES (CONTINUED)
<S> <C> <C> <C>
Public Service Company of Colorado, 8.75% Fst. Mtg. Bonds,
3/1/22 $ 750,000 $ 750,477
---------------
6,521,731
---------------
Total Corporate Bonds and Notes (Cost $43,461,270) 41,689,889
---------------
INDEXED INSTRUMENTS -- 1.3%
Citibank CD:
17.35%, 7/28/94 (3) 204,200,000(1) 488,533
17.30%, 7/29/94 (3) 202,900,000(1) 485,422
Morgan Guaranty Trust Co. of New York (Singapore Branch)
12.15% CD, 2/3/95 1,267,950,000(1) 584,334
---------------
Total Indexed Instruments (Cost $1,607,367) 1,558,289
---------------
Total Investments, at Value (Cost $123,983,784) 99.6% 121,906,608
Other Assets Net of Liabilities .4 482,138
-------------- ---------------
Net Assets 100.0% $ 122,388,746
-------------- ---------------
-------------- ---------------
</TABLE>
(1) Face amount is reported in foreign currency.
(2) Represents the current interest rate for a variable rate security.
(3) Indexed instrument for which the principal amount due at maturity is
affected by the relative value of a foreign security.
(4) Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities are
subject to the risk of accelerated principal paydowns as interest rates
decline. The principal amount represents the notional amount on which
current interest is calculated.
(5) The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Fund intends to invest no more than 10% of its
net assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A
of the Act that are determined to be liquid by the Board of Trustees or by
the Manager under Board-approved guidelines.
<TABLE>
<CAPTION>
Valuation Per
Acquistion Cost Unit as of
Security Date Per Unit June 30, 1994
- -------------------------------------------------- ----------- -------- -------------
<S> <C> <C> <C>
Corporacion Andina de Fomento:
Bonds, 6.625%, 10/14/98(6) 9/23/93 $ 99.95 $ 92.00
Nts., 7.25%, 4/30/98(6) 4/15/93 $ 99.38 $ 96.00
Czechoslovakia National Bank Nts., 7%, 4/16/96(6) 3/11/93 $ 99.70 $100.00
Empresa Columbiana de Petroleos Nts., 7.25%,
7/8/98 (6) 6/24/93 $ 99.63 $ 95.25
Empresa Columbiana de Petroleos Nts., 7.25%,
7/8/98(6) 4/25/94 $ 99.63 $ 96.00
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10(6) 1/29/93 $ 102.40 $109.06
</TABLE>
6. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 10.8% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Repurchase agreement with The First Boston Corp., 4.125%,
dated 6/30/94, to be repurchased at $11,801,352 on 7/1/94,
collateralized by U.S. Treasury Nts., 4%, 1/31/96, with a
value of 12,049,846 (Cost $11,800,000) $ 11,800,000 $ 11,800,000
---------------
GOVERNMENT OBLIGATIONS -- 10.6%
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas, Series I, 3.704%,
4/1/01 (4)(6) 1,254,100(2) 687,638
Series I, 4.375%, 4/1/07 (4)(6) 284,225 156,699
Past Due Interest Bonds, 5%, 3/31/05 (4) 1,650,000 1,193,156
Bank Negara Indonesia Bonds, 0%, 5/12/95 2,000,000,000(2) 809,752
Italy (Republic of) Treasury Bonds, Buoni Poliennali del
Tes, 12.50%, 6/16/97 (7) 2,300,000,000(2) 1,537,158
Mexico (United Mexican States):
CETES:
0%, 10/16/94 7,057,830(2) 1,992,522
0%, 11/3/94 3,591,690(2) 1,003,231
Par Bonds, Series A, 6.25%, 12/31/19 1,500,000 955,313
Morocco (Kingdom of) Loan Participation Agreement, Tranche
A, 4.50%, 1/1/09 (4)(8) 1,000,000 699,625
Polish People's Republic Loan Participation Agreement:
5.0625%, 2/3/24 (1) 1,500,000 547,500
7.9375%, 2/8/24 (1) 2,000,000(2) 455,560
7.9375%, 2/8/24 (1) 250,000(2) 67,268
Spain (Kingdom of) Bonds, 11.45%, 8/30/98 135,000,000(2) 1,074,352
Venezuela (Republic of) Nts., 9%, 5/27/96 (8) 500,000 487,500
---------------
Total Government Obligations (Cost $12,332,416) 11,667,274
---------------
MUNICIPAL BONDS AND NOTES -- 2.0%
Pinole, California Redevelopment Agency Tax Allocation
Taxable Bonds, Pinole Vista Redevelopment, Series B, 7.65%,
8/1/07 975,000 979,325
Port of Portland, Oregon Taxable Special Obligation Revenue
Bonds, Pamco Project, 9.20%, 5/15/22 500,000 523,206
San Joaquin Hills, California Transportation Corridor Agency
Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, 0%,
1/1/28 12,500,000 713,887
---------------
Total Municipal Bonds and Notes (Cost $2,114,954) 2,216,418
---------------
CORPORATE BONDS AND NOTES -- 67.9%
BASIC MATERIALS -- 8.2%
Chemicals -- 3.1% Banco do Nordeste do Brasil, 10.375% Sr. Debs., 11/6/95 (8) 750,000 746,250
Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 1,000,000 1,027,500
NL Industries, Inc., 0%/13% Sr. Sec. Disc. Nts., 10/15/05
(3) 1,100,000 676,500
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
BASIC MATERIALS (CONTINUED)
<S> <C> <C> <C>
Chemicals (Continued)
Rexene Corp.:
9% Fst. Priority Nts., 11/15/99 (4) $ 300,000 $ 292,500
10% 2nd Priority Nts., 11/15/02 (6) 668,000 619,384
---------------
3,362,134
---------------
Metals -- 2.3% Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00 500,000 505,000
Kaiser Aluminum & Chemical Corp.:
9.875% Sr. Nts., 2/15/02 350,000 324,625
12.75% Sr. Sub. Nts., 2/1/03 1,250,000 1,275,000
Stelco, Inc., 9.75% Debs., 4/1/95 500,000(2) 356,940
---------------
2,461,565
---------------
Paper and Forest
Products -- 2.8% Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02 (1) 100,000 70,500
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 1,000,000 965,000
PT Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 400,000 346,000
Riverwood International Corp., 10.375% Sr. Sub. Nts.,
6/30/04 400,000 401,000
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 200,000 195,000
Stone Container Corp.:
12.625% Sr. Nts., 7/15/98 500,000 525,000
9.875% Sr. Nts., 2/1/01 650,000 607,750
---------------
3,110,250
---------------
CONSUMER CYCLICALS -- 23.4%
Automotive -- 2.7% Foamex LP/ JPS Automotive Corp., Units (8) 1,000,000 520,000
JPS Automotive Products Corp., 11.125% Sr. Nts., 6/15/01 300,000 301,500
NewCity Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 1,200,000 1,239,000
Penda Industries, Inc., 10.75% Sr. Nts., 3/1/04 (8) 675,000 661,500
SPX Corp., 11.75% Sr. Sub. Nts., 6/1/02 250,000 256,250
---------------
2,978,250
---------------
Construction Supplies and
Development -- 2.0% Dal-Tile International, Inc., 0% Sr. Sec. Nts., 7/15/98 250,000 154,375
Hillsborough Holdings Corp., 7.50% Participation Agreement,
12/30/99 (1)(8) 1,000,000 1,408,750
Walter Industries, Inc., 14.625% Sr. Nts., Series B, 1/1/99
(1) 400,000 656,500
---------------
2,219,625
---------------
Consumer Goods and
Services -- 5.4% Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 500,000 497,500
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B,
5/27/98 500,000 335,000
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Consumer Goods and Services (Continued)
Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 $ 1,000,000 $ 1,015,000
Harman International Industries, Inc., 12% Sr. Sub. Nts.,
8/1/02 1,000,000 1,085,000
Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B, 12/6/00 (8) 1,000,000 1,045,000
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts.,
11/1/03 1,000,000 955,000
PT Polysindo Eka Perkasa, 13% Sr. Nts., 6/15/01 500,000 498,195
Revlon Consumer Products Corp., 9.375% Sr. Nts., 4/1/01 400,000 344,000
Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., 3/15/98 350,000 148,750
---------------
5,923,445
---------------
Entertainment -- 4.1% Capital Gaming International, Inc., Units (8) 950,000 973,750
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A,
6/30/02 521,305 555,190
Hollywood Casino Corp., 13.50% Fst. Mtg. Nts., 9/30/98 300,000 301,500
Lady Luck Gaming Finance Corp., 10.50% Fst. Mtg. Nts.,
3/1/01 450,000 389,250
Marvel (Parent) Holdings, Inc.:
0% Sr. Sec. Disc. Nts., 4/15/98 1,300,000 806,000
0% Sr. Sec. Disc. Nts., Series B, 4/15/98 1,000,000 622,500
Treasure Bay Gaming & Resorts, Inc.: Units (8) 125,000 120,625
12.25% Fst. Mtg. Nts., 11/15/00 (8) 375,000 339,375
United Gaming, Inc., 7.50% Cv. Sub. Debs., 9/15/03 500,000 401,250
---------------
4,509,440
---------------
Media -- 4.8% Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series
A, 10/1/03 750,000 746,250
Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 430,000 410,650
Argyle Television Operations, 9.875% Sr. Sub. Nts., 12/30/03 500,000 507,500
General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00 (8) 500,000 467,500
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (8) 490,681 535,150
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 500,000 495,000
SCI Television, Inc.:
7.50% Fst. Sec. Loan Nts., 6/30/98 486,000 478,710
11% Sr. Sec. Nts., Series 1, 6/30/05 450,000 461,250
Sinclair Broadcasting Group, Inc., 10% Sr. Sub. Nts.,
12/15/03 445,000 441,663
Univision Television Group, Inc., 11.75% Sr. Sub. Nts.,
1/15/01 700,000 745,500
---------------
5,289,173
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Real Estate
Development -- 1.4% Casino Magic Finance Corp., 11.50% Fst. Mtg. Nts., Series B,
10/15/01 $ 290,000 $ 268,250
Olympia & York First Canadian Place Ltd., 11% Debs., Series
3, 11/4/49 (1) 1,000,000(2) 456,919
Saul (B.F.) Real Estate, 11.625% Sr. Nts., 4/1/02 500,000 490,000
Trizec Corp. Ltd., 10.25% Sr. Debs., 6/22/99 (1) 500,000(2) 323,010
---------------
1,538,179
---------------
Retail -- 3.0% Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 1,000,000 1,015,000
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 700,000 689,500
R.H. Macy & Co., Inc., 14.50% Sr. Sub. Debs., 10/15/98 (1) 900,000 562,500
Waban, Inc., 11% Sr. Sub. Nts., 5/15/04 500,000 501,250
Zale Delaware, Inc., 11% Gtd. 2nd Priority Sr. Sec. Nts.,
6/1/00 500,000 502,500
---------------
3,270,750
---------------
CONSUMER NON-CYCLICALS -- 2.8%
Food -- 0.6% Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 500,000 492,500
Kash 'N Karry Food Stores, Inc., 14% Sub. Debs., 2/1/01 300,000 109,500
---------------
602,000
---------------
Food and Drug
Distribution -- 1.9% Di Giorgio Corp., 12% Sr. Nts., 2/15/03 700,000 721,000
Duane Reade, 12% Sr. Nts., Series B, 9/15/02 250,000 260,000
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 700,000 686,000
Thrifty Payless Holdings, Inc., Units 375,000 395,625
---------------
2,062,625
---------------
Healthcare -- 0.3% Charter Medical Corp., 11.25% Sr. Sub. Nts., 4/15/04 (8) 350,000 357,875
---------------
ENERGY -- 5.3%
BP America, Inc., 10.875% Nts., 8/1/01 350,000(2) 261,733
Ferrellgas LP/Ferrellgas Finance Corp., 10% Sr. Nts., 8/1/01 500,000 502,500
Maxus Energy Corp.:
8.50% Debs., 4/1/08 1,000,000 870,000
11.50% Debs., 11/15/15 800,000 814,000
Mesa Capital Corp.:
0%/12.75% Disc. Nts., 6/30/96 (3) 1,000 890
0%/12.75% Sec. Disc. Nts., 6/30/98 (3) 1,707,000 1,553,370
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 750,000 873,750
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
ENERGY (CONTINUED)
<S> <C> <C> <C>
Presidio Oil Co., 11.50% Sr. Sec. Nts., Series B, 9/15/00 $ 925,000 $ 925,000
---------------
5,801,243
---------------
FINANCIAL -- 3.7%
Banco Nacional de Mexico SA, 7% Exch. Sub. Debs., 12/15/99
(8) 500,000 535,000
Card Establishment Services, Inc., 10% Sr. Sub. Nts., Series
B, 10/1/03 1,600,000 1,528,000
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 (8) 497,386 547,125
Residential Funding Corp., 7.97% Real Estate Trust
Pass-Through Ctfs., Series 1993-J2, Cl. B-1, 6/15/23 (8) 1,204,823 931,856
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11
(8) 500,000 451,250
---------------
3,993,231
---------------
INDUSTRIAL -- 4.4%
Containers -- 0.7% Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 700,000 703,500
---------------
General Industrial 1.9% EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 500,000 455,000
Farley, Inc., 0% Sub. Debs., 12/30/12 115,000 12,075
Polymer Group, Inc., 12.25% Sr. Nts., 7/15/02 (8) 700,000 701,750
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 640,000 726,400
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02 (1)(8) 500,000 225,000
---------------
2,120,225
---------------
Transportation -- 1.8% Sea Containers Ltd.:
12.50% Sr. Sub. Debs., Series A, 12/1/04 500,000 523,750
12.50% Sr. Sub. Debs., Series B, 12/1/04 350,000 373,625
Transtar Holdings LP/Transtar Capital Corp., 0%/ 13.375% Sr.
Disc. Nts., Series B, 12/15/03 (3) 2,000,000 1,095,000
---------------
1,992,375
---------------
TECHNOLOGY -- 15.9%
Aerospace/Defense -- 2.9% AMR Corp., 10% Debs., 4/15/21 825,000 818,975
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 500,000 402,500
GPA Holland BV:
8.625% Med.-Term Nts., 1/15/99 (8) 750,000 595,385
9.50% Med.-Term Nts., 12/5/01 (8) 500,000 375,000
Rohr, Inc., 11.625% Sr. Nts., 5/15/03 400,000 406,000
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
TECHNOLOGY (CONTINUED)
<S> <C> <C> <C>
Aerospace/Defense (Continued)
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05
(3) $ 1,000,000 $ 590,000
---------------
3,187,860
---------------
Cable Television -- 6.5% American Telecasting, Inc., Units 700,000 367,500
Cablevision Systems Corp.:
10.75% Sr. Sub. Debs., 4/1/04 500,000 508,750
9.875%, Sr. Sub. Debs., 2/15/13 500,000 457,500
Celcaribe SA, Units (8) 1,250,000 769,090
Continental Broadcasting Ltd./Continental Broadcasting
Capital Corp., 10.625% Sr. Sub. Nts., 7/1/03 600,000 609,000
Echostar Communications Corp., Units 2,000,000 1,065,000
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts.,
11/1/03 (4) 1,000,000 915,000
International CableTel, Inc., 0%/10.875% Sr. Def. Cpn. Nts.,
10/15/03 (3) 635,000 381,000
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 997,500
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,090,000
---------------
7,160,340
---------------
Communications -- 4.2% Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (3) 2,000,000 1,240,000
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 462,500
Comcast Cellular Corp., 0% Nts., Series B, 3/5/00 1,200,000 720,000
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (3) 650,000 445,250
Panamsat LP/Panamsat Capital Corp.:
9.75% Sr. Sec. Nts., 8/1/00 500,000 497,500
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (3) 2,000,000 1,290,000
---------------
4,655,250
---------------
Technology -- 2.3% Bell & Howell Holdings Co., 0%/10.75% Sr. Disc. Debs.,
Series B, 3/1/05 (3) 1,000,000 545,000
Dell Computer Corp., 11% Sr. Nts., 8/15/00 500,000 518,750
Imax Corp., 7% Sr. Nts., 3/1/01 (8) 1,600,000 1,468,000
---------------
2,531,750
---------------
UTILITIES -- 4.2%
Beaver Valley Funding Corp., 9% Debs., 6/1/17 1,500,000 1,261,255
El Paso Electric Co., 10.375% Lease Obligation Debs., 1/2/11
(1) 1,550,000 1,118,153
El Paso Funding Co., 10.75% Debs., 4/1/13 (1) 750,000 551,250
First PV Funding Corp., Public Service of New Mexico, 10.30%
Debs., 1/15/14 1,250,000 1,197,542
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
UTILITIES (CONTINUED)
<S> <C> <C> <C>
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A, 12/28/08
(8) $ 500,000 $ 467,500
---------------
4,595,700
---------------
Total Corporate Bonds and Notes (Cost $76,346,033) 74,426,785
---------------
INDEXED INSTRUMENTS -- 1.3%
Citibank, 17.30% CD, 7/29/94 (5) 405,800,000(2) 970,845
Presidio Oil Co., 14.125% Sr. Sub. Gas Indexed Nts., 7/15/02
(4) 450,000 450,000
---------------
Total Indexed Instruments (Cost $1,377,700) 1,420,845
---------------
<CAPTION>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.5% Units
--------------
<S> <C> <C> <C>
Ames Department Stores, Inc.:
Excess Cash Flow Payment Ctfs., Series AG-7A 12,400 124
Litigation Trust Units 39,658 397
Capital Gaming International, Inc. Wts., Exp. 2/99 (8) 1,875 938
Casino America, Inc. Wts., Exp. 11/96 1,631 408
Digicon, Inc. Wts., Exp. 7/96 4,699 881
Gaylord Container Corp. Wts., Exp. 7/96 71,950 274,309
General Media, Inc. Wts., Exp. 12/00 (8) 500 6,250
Hollywood Casino Corp. Wts., Exp. 4/98 1,904 190,000
Protection One, Inc. Wts., Exp. 11/03 28,000 89,880
Purity Supreme, Inc. Wts., Exp. 8/97 (8) 2,599 52
Southland Corp. Wts., Exp. 3/96 400 1,700
Terex Corp. Rts., Exp. 7/96 (8) 141 212
UGI Corp. Wts., Exp. 3/98 6,000 21,000
---------------
Total Rights, Warrants and Certificates (Cost $281,912) 586,151
---------------
<CAPTION>
PREFERRED STOCKS -- 3.1% Shares
--------------
<S> <C> <C> <C>
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A (8) 5,000 $ 221,250
Berg Electronics Holdings Corp. (1) 10,429 260,725
Collins & Aikman Holdings Corp., $15.50 Exch (6) 5,182 129,550
Dell Computer Corp., $7.00 Cv., Series A (1)(8) 4,500 513,000
Finlay Enterprises, Inc., Cl. A (1) 2,000 25,000
Glendale Federal Bank, F.S.B., $6.375 Non-Cum. Cv., Series E 22,600 641,275
K-III Communications Corp., $11.625 Exch., Series B (6) 6,145 608,443
Navistar International Corp., $6.00 Cv., Series G 5,000 252,500
Offshore Pipelines, Inc., $2.25 Cum. Cv. Exch. 5,000 220,000
Prime Retail, Inc., $19.00 Cv., Series B 14,000 344,750
Trizec Ltd., Sr. Cl. B, Series 3 (1) 50,000 19,905
Unisys Corp., $3.75 Cv., Series A 5,000 171,875
---------------
Total Preferred Stocks (Cost $3,424,734) 3,408,273
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS -- 1.8% Shares Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Berg Electronics Holdings Corp. (1)(8) 46,220 $ 92,440
Celcaribe SA (1)(8) 203,250 249,660
ECM Fund L.P.I. (8) 150 150,000
Gillett Holdings, Inc., Cl. 1 (1)(8) 10,355 191,568
Leaseway Transportation Corp. (1) 17,142 167,135
Marriott International, Inc. 300 7,988
Petrolane, Inc., Cl. B 45,360 487,619
New World Communications Group, Inc., Cl. A (1) 4,964 60,808
Zale Corp. (1) 56,802 525,418
---------------
Total Common Stocks (Cost $1,824,492) 1,932,636
---------------
Total Investments, at Value (Cost $109,502,241) 98.0% 107,458,382
Other Assets Net of Liabilities 2.0 2,184,753
-------------- ---------------
Net Assets 100.0% $ 109,643,135
-------------- ---------------
-------------- ---------------
</TABLE>
(1) Non-income producing security.
(2) Face amount is reported in foreign currency.
(3) Represents a zero coupon bond that converts to a fixed rate of interest at a
designated future date.
(4) Represents the current interest rate for a variable rate security.
(5) Indexed instrument for which the principal amount due at maturity is
affected by the relative value of a foreign currency.
(6) Interest or dividend is paid in kind.
(7) Securities with an aggregate market value of $1,537,158 are segregated to
collateralize outstanding forward foreign currency exchange contracts. See
Note 5 of Notes to Financial Statements.
(8) The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Fund intends to invest no more than 10% of its
net assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A
of the Act that are determined to be liquid by the Board of Trustees or by
the Manager under Board-approved guidelines. Restricted and illiquid
securities amount to $6,212,193, or 5.67% of the Fund's net assets, at June
30, 1994.
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit June 30, 1994
- -------------------------------------------------- ----------------- --------- -------------
<S> <C> <C> <C>
AMR Corp., $3.00 Cum. Cv. Depositary Shares,
Series A Preferred Stock (9) 1/7/94-1/11/94 $ 54.13 $ 44.25
Banco do Nordeste do Brasil, 10.375% Sr. Debs.,
11/6/95 (9) 4/26/93 $ 99.80 $ 100.00
Banco Nacional de Mexico SA, 7% Exch. Sub. Debs.,
12/15/99 (9) 5/24/93 $ 104.00 $ 107.00
Berg Electronics Holdings Corp. Common Stock (9) 4/28/93-8/11/93 $ 1.19 $ 2.00
Capital Gaming International, Inc.:
Units 1/10/94-6/03/94 $ 112.00 $ 102.50
Wts., Exp. 2/99 2/7/94-2/18/94 $ 0.00 $ 0.50
Celcaribe SA:
Common Stock (9) 5/17/94 $ 1.19 $ 1.23
Units (9) 5/17/94 $ 60.78 $ 61.53
Charter Medical Corp., 11.25% Sr. Sub. Nts.,
4/15/04 (9) 4/22/94 $ 100.00 $ 102.25
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- High Income Fund
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit June 30, 1994
- -------------------------------------------------- ----------------- --------- -------------
<S> <C> <C> <C>
Dell Computer Corp., 7.00 Cv., Series A Preferred
Stock (9) 8/19/93-1/24/94 $ 103.11 $ 114.00
ECM Fund L.P.I.:
Common Stock 4/14/92 $1,000.00 $1,000.00
14% Sub. Nts., 6/10/02 4/14/92 $ 100.00 $ 110.00
Foamex LP/JPS Automotive Corp., Units (9) 6/21/94 $ 51.39 $ 52.00
General Media, Inc.:
10.625% Sr. Sec. Nts., 12/31/00 (9) 12/14/93 $ 99.39 $ 93.50
Wts., Exp. 12/00 (9) 12/14/93 $ 0.01 $ 12.50
Gillett Holdings, Inc., Cl. 1 Common Stock 12/1/92 $ 10.50 $ 18.50
GPA Holland BV:
8.625% Med.-Term Nts., 1/15/99 1/10/94 $ 78.13 $ 79.38
9.50% Med.-Term Nts., 12/5/01 1/27/94 $ 79.96 $ 75.00
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (9) 1/29/93 $ 102.40 $ 109.06
Hillsborough Holdings Corp., 7.50% Participation
Agreement, 12/30/99 1/6/94 $ 128.50 $ 140.88
Imax Corp., 7% Sr. Nts., 3/1/01 (9) 2/22/94 $ 92.39 $ 91.75
Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B,
12/6/00 12/11/92-3/22/93 $ 106.50 $ 104.50
Morocco (Kingdom of) Loan Participation Agreement,
Tranche A, 4.50%, 1/1/09 2/28/94-4/20/94 $ 70.19 $ 69.96
Penda Industries, Inc., 10.75% Sr. Nts., 3/1/04
(9) 4/14/94-6/3/94 $ 99.05 $ 98.00
Polymer Group, Inc., 12.25% Sr. Nts., 7/15/02 (9) 6/17/94 $ 100.00 $ 100.25
Purity Supreme, Inc. Wts., Exp. 8/97 7/29/92 $ 0.00 $ 0.02
Residential Funding Corp., 7.97% Real Estate Trust
Pass-Through Ctfs., Series 1993-J2, Cl. B-1,
6/15/23 (9) 6/29/93 $ 83.97 $ 77.34
Subic Power Corp., 9.50% Sr. Sec. Nts., Series A,
12/28/08 (9) 12/20/93 $ 99.93 $ 93.50
Terex Corp. Rts., Exp. 7/96 (9) 4/5/94 $ 1.54 $ 1.50
Treasure Bay Gaming & Resorts, Inc.: Units (9) 11/10/93 $ 100.00 $ 96.50
12.25% Fst. Mtg. Nts., 11/15/00 (9) 4/21/94-4/22/94 $ 90.95 $ 90.50
Triangle Wire & Cable Inc., 13.50% Sr. Nts.,
1/15/02 1/13/92 $ 100.00 $ 45.00
Tribasa Toll Road Trust, 10.50% Nts., Series
1993-A, 12/1/11 (9) 11/8/93 $ 100.00 $ 90.25
Venezuela (Republic of) Nts., 9%, 5/27/96 (9) 5/19/94 $ 95.90 $ 97.50
</TABLE>
9. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Money Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 3.9% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Repurchase agreement with Morgan Guaranty Trust Co., 4.30%,
dated 6/30/94, to be repurchased at $3,800,454 on 7/1/94,
collateralized by GNMA, 7%, 6/15/24, with a value of
$3,885,027 (Cost $3,800,000) $ 3,800,000 $ 3,800,000
---------------
BANKERS' ACCEPTANCES -- 4.1%
Chase Manhattan Bank, N.A., 4.60%, 9/26/94
(Cost $3,955,533) 4,000,000 3,955,533
---------------
CERTIFICATES OF DEPOSIT -- 4.1%
Domestic Certificates of
Deposit -- 4.1% Huntington National Bank, 4.41%, 7/6/94(1)
(Cost $3,997,830) 4,000,000 3,997,830
---------------
DIRECT BANK OBLIGATIONS -- 2.6%
First National Bank of Boston, 3.44%, 7/11/94
(Cost $2,500,000) 2,500,000 2,500,000
---------------
LETTERS OF CREDIT -- 4.1%
Mitsubishi Bank, Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 4.69%, 9/30/94
(Cost $3,952,579) 4,000,000 3,952,579
---------------
SHORT-TERM NOTES -- 72.4%
Asset-Backed -- 7.2% Corporate Asset Funding Co., Inc., 4.30%, 7/1/94 4,000,000 4,000,000
Structured Enhanced Return Trust 1994 Series A-07,
4.46%, 7/6/94(1)(3)(4) 3,000,000 3,000,000
---------------
7,000,000
---------------
Broker/Dealers -- 21.2% Bear Stearns Cos., Inc., 4.45%, 7/1/94(1) 2,000,000 2,000,000
CS First Boston Corp., 4.63%, 11/3/94 4,000,000 3,935,694
Lehman Brothers Holdings, Inc., 4.1125%-4.595%,
7/1/94-7/20/94(1) 4,500,000 4,500,000
Merrill Lynch & Co., Inc.:
4%, 7/5/94 2,000,000 1,999,111
4.46%, 7/6/94(1) 1,500,000 1,499,819
Morgan Stanley Group, Inc., 4.15%, 7/1/94(1) 4,115,000 4,115,000
Republic New York Securities Corp., 4.675%, 12/7/94(1) 2,500,000 2,500,000
---------------
20,549,624
---------------
Building Materials -- 2.1% Compagnie de Saint-Gobain SA, 3.65%, 7/25/94 2,000,000 1,995,133
---------------
Commercial Finance -- 3.7% CIT Group Holdings, Inc., 4.4963%, 7/13/94(1)(2) 1,000,000 1,000,000
Heller Financial, Inc., 4.3759%, 7/6/94(1) 2,600,000 2,600,000
---------------
3,600,000
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Money Fund
<TABLE>
<CAPTION>
Face Market
SHORT-TERM NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Conglomerates -- 7.1% Grand Metropolitan Investment Corp., guaranteed by
Grand Metropolitan PLC, 4.65%, 11/7/94 $ 2,250,000 $ 2,211,945
Mitsubishi International Corp., 4.85%, 11/30/94 2,700,000 2,644,710
Pacific Dunlop Ltd., 4.25%, 9/6/94(3) 2,000,000 1,984,181
---------------
6,840,836
---------------
Consumer Non-Cyclicals -- 5.1% American Brands, Inc., 4.025%-4.10%, 8/15/94-9/6/94(3) 5,000,000 4,967,046
---------------
Diversified Finance -- 5.2% General Motors Acceptance Corp., 4.05%, 7/5/94-8/5/94 5,000,000 4,994,263
---------------
Foreign Government
Obligations -- 2.0% New South Wales Treasury Corp., supported by the
Commonwealth of Australia, State of New South
Wales, 4.69%, 11/14/94 2,000,000 1,964,564
---------------
Industrial -- 2.6% BICC Cables Corp., guaranteed by BICC PLC, 3.25%,
7/18/94 2,500,000 2,496,163
---------------
Leasing -- 6.4% International Lease Finance Corp., 4.65%, 11/14/94 4,000,000 3,929,733
Sanwa Business Credit Corp., 4.35%, 7/7/94(1) 2,256,000 2,254,364
---------------
6,184,097
---------------
Lubricants and Fuels -- 1.0% Burmah Castrol Finance PLC, guaranteed by Burmah
Castrol PLC, 4.87%, 10/26/94(3) 1,000,000 984,173
---------------
Oil: Integrated
International -- 4.7% Statoil, guaranteed by Den Norske Stats Oljeselskap AS,
4.35%, 7/1/94 4,500,000 4,500,000
---------------
Telecommunications -- 4.1% NYNEX Corp., 4.55%, 8/17/94 4,000,000 3,976,239
---------------
Total Short-Term Corporate Notes (Cost $70,052,138) 70,052,138
---------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS -- 8.2%
Federal Home Loan Bank, 4.46%, 7/6/94(1) 3,000,000 3,000,000
---------------
Small Business Administration, 7.875%-9.125%,
7/1/94(1) 4,657,932 4,934,251
---------------
Total Short-Term U.S. Government Obligations
(Cost $7,934,251) 7,934,251
---------------
Total Investments, at Value (Cost $96,192,331) 99.4% 96,192,331
Other Assets Net of Liabilities .6 620,856
-------------- ---------------
Net Assets 100.0% $ 96,813,187
-------------- ---------------
-------------- ---------------
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Money Fund
Short-term notes, bankers' acceptances, direct bank obligations, and letters of
credit are generally traded on a discount basis: the interest rate is the
discount rate received by the Fund at the time of purchase. Other securities
normally bear interest at the rates shown.
(1) Variable rate security. The interest rate which is based on specific, or an
index of, market interest rates, is subject to change periodically and is
the effective rate on June 30, 1994.
(2) Put obligation redeemable at full face value on the date reported.
(3) Security purchased in private placement transaction, without registration
under the Securities Act of 1933 (the Act). The securities were acquired
between March 7, 1994 and June 30, 1994, are carried at amortized cost, and
amount to $11,935,400 or 12.33% of the Fund's net assets.
(4) In addition to being restricted, the security is considered illiquid by
virtue of the absence of a readily available market or because of legal or
contractual restrictions on resale. Illiquid securities amount to
$4,000,000, or 4.13% of the Fund's net assets, at June 30, 1994. The Fund
may not invest more than 10% of its net assets (determined at the time of
purchase) in illiquid securities.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Face Market
REPURCHASE AGREEMENTS -- 8.1% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Repurchase agreement with The First Boston Corp., 4.125%,
dated 6/30/94, to be repurchased at $22,802,613 on 7/1/94,
collateralized by U.S. Treasury Nts., 1/31/96, with a value
of $23,282,754 (Cost $22,800,000) 22,800,000 $ 22,800,000
---------------
GOVERNMENT OBLIGATIONS -- 24.0%
Argentina (Republic of) Bonds, Bonos de Consolidacion de
Deudas, Series 1, 4.375%, 4/01/01 (3)(4) 1,705,350 1,171,755
Argentina (Republic of) Par Bonds, 4%, 3/31/23 3,000,000 1,511,250
Australia (Government of) Bonds, 12%, 5/15/06 1,400,000(2) 1,129,079
Canada (Government of) Bonds:
9.75%, 6/1/01 2,000,000(2) 1,488,923
9.75%, 12/1/01 3,000,000(2) 2,235,557
8.50%, 4/1/02 1,500,000(2) 1,043,947
Government National Mortgage Assn.:
8%, 7/15/22 1,893,216 1,867,204
8%, 4/15/23 4,087,975 4,030,212
Mex Par A, 6.25%, 12/31/19 2,000,000 1,273,750
Queensland (Government of) Development Authority Global
Transferrable Registered Nts., 10.50%, 5/15/03 3,600,000(2) 2,734,774
Spain (Kingdom of) Bonds:
13.45%, 4/15/96 175,000,000(2) 1,421,933
11.45%, 8/30/98 50,000,000(2) 397,908
United Mexican States Gtd. Cv. Bonds, Series B,
6.25%, 12/31/19 2,000,000 1,273,750
U.S. Treasury Bonds, STRIPS:
0%, 08/15/02 3,900,000 2,162,815
0%, 8/15/03 2,500,000 1,275,842
U.S. Treasury Nts.:
7.625%, 5/31/96 12,500,000 12,828,125
6.75%, 5/31/97 10,300,000 10,364,375
9.25%, 8/15/98 9,000,000 9,773,432
6.375%, 8/15/02 5,000,000 4,721,875
Venezuela (Republic of) Collateralized Par Bonds, Series
W-A, 6.75%, 3/31/20 4,500,000 2,233,125
Venezuela (Republic of) Collateralized Par Bonds, Series
W-B, 6.75%, 3/31/20 3,000,000 1,488,750
Venezuela (Republic of) Front-Loaded Interest
Reduction Bonds, Series A, 6%, 3/31/07 (3) 2,000,000 911,875
---------------
Total Government Obligations (Cost $71,029,788) 67,340,256
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES -- 19.5% Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02 250,000 232,500
Adelphia Communications Corp.:
12.50% Sr. Nts., 5/15/02 500,000 512,500
9.875% Sr. Debs., Series B, 3/1/05 500,000 441,250
Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05
(4) 789,000 783,330
American Medical International, Inc., 13.50% Sr. Sub. Nts.,
8/15/01 500,000 565,000
American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01 500,000 483,750
American Telecasting, Inc., 12.5%, 6/15/04 1,100,000 577,500
Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 800,000 796,000
Argyle Television Operations, 9.875% Sr. Sub. Nts., 12/30/03 750,000 761,250
Armco, Inc., 8.50% SF Debs., 9/1/01 200,000 187,250
Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20 (3) 400,000 544,000
Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 475,000 448,875
Baldwin Co., 10.375% Sr. Nts., 8/1/03 500,000 452,500
Beaver Valley Funding Corp., 9.00% Debs., 6/1/17 500,000 420,419
Bell & Howell Holdings Co., 0%/10.75% Sr. Disc. Debs.,
Series B, 3/1/05 (5) 1,000,000 545,000
B.F. Saul Real Estate, 11.625% Sr. Nts., 4/1/02 600,000 588,000
Cablevision Industries Corp., 9.25% Sr. Debs., Series B,
4/1/08 500,000 442,500
Calmar, Inc., 12% Sr. Sec. Nts., 12/15/97 500,000 497,500
Carbide/Graphite Group, Inc., 11.50% Sr. Nts., 9/1/03 500,000 513,750
Card Establishment Services, Inc., 10% Sr. Sub. Nts., Series
B, 10/1/03 1,400,000 1,337,000
Casino Magic Finance Corp., 11.50% First Mtg. Nts., 10/15/01 500,000 462,500
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 462,500
Charter Medical Corp., 11.25% Sr. Sub. Nts., 4/15/04 (6) 500,000 511,250
Chrysler Financial Corp., 13.25% Sr. Nts., 10/15/99 500,000 616,223
Coastal Corp., 11.75% Sr. Debs., 6/15/06 500,000 563,125
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 1,000,000 1,015,000
Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., 5/27/98 1,000,000 670,000
Collins & Aikman Group, Inc., 9.50% Sr. Sub. Debs., 6/1/01 500,000 507,500
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 600,000 555,000
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 250,000 257,500
Echostar Communications Corp., 12.875%, Sr. Sec. Disc. Nts.,
6/1/04 800,000 426,000
Envirosource, Inc., 9.75% Sr. Nts., 6/15/03 1,250,000 1,137,500
Family Restaurant, Inc., 9.75% Sr. Nts., 2/1/02 1,500,000 1,365,000
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 750,000 738,750
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 750,000 751,875
First Chicago Corp.:
9% Sub. Nts., 6/15/99 250,000 263,681
11.25% Sub. Nts., 2/20/01 250,000 292,429
First PV Funding Corp., Public Service of New Mexico 10.15%
Debs., 1/15/16 1,000,000 948,405
Flagstar Corp., 10.875% Sr. Nts., 12/1/02 400,000 385,000
Foodmaker, Inc.:
14.25% Sr. Sub. Nts., 5/15/98 500,000 525,625
9.25% Sr. Nts., 3/1/99 500,000 466,250
Gaylord Container Corp., 11.50% Sr. Sub. Disc. Nts., 5/15/01 500,000 520,000
GNF Corp., 10.625% Gtd. Fst. Mtg. Nts., 4/1/03 500,000 370,000
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 250,000 201,250
GPA Holland, 9.75%, 6/10/96 1,000,000 940,000
Grand Union Co., 11.25% Sr. Nts., 7/15/00 400,000 395,000
Gulf Canada Resources Ltd., 9.25% Sr. Sub. Deb., 01/15/04 500,000 450,170
Harris Chemical North America, Inc., 0%/10.25% Gtd. Sr. Sec.
Disc. Nts., 7/15/01 1,000,000 805,000
Harmon International Industries, Inc., 12% Sr. Sub. Nts.,
8/1/02 500,000 542,500
Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 400,000 400,000
Imax Corp., 7% Sr. Nts., 3/1/01 (6) 600,000 550,500
International Cabletel, Inc., 0%/10.875% Sr. Def. Cpn. Nts.,
10/15/03 (5) 500,000 300,000
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts.,
2/1/03 1,000,000 1,020,000
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 750,000 742,500
Marvel Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B,
4/15/98 1,200,000 744,000
Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03 1,000,000 810,000
Mesa Capital Corp., 0%/12.75% Sec. Disc. Nts., 6/30/98 (5) 1,022,000 930,020
Nextel Communications, Inc., 0%/9.75% Sr. Disc. Nts.,
8/15/04 (5) 280,000 163,800
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 500,000 492,500
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 1,000,000 1,165,000
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 997,500
Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 500,000 500,625
Pace Industries, 10.625% Sr. Nts., 12/1/02 500,000 472,500
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 925,000 892,625
Panamsat LP/Panamsat Capital Corp.:
9.75% Sr. Sec. Nts., 8/1/00 500,000 497,500
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (5) 250,000 161,250
Penda Industries, 10.75% Sr. Nts., 3/1/04 (6) 825,000 808,500
Pioneer Finance, 13.50% First Mtg., 12/1/98 1,000,000 1,005,000
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 800,000 784,000
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Face Market
CORPORATE BONDS AND NOTES (CONTINUED) Amount Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Quantum Chemical Corp., 10.375% First Mtg. Bonds, 6/1/01 500,000 564,894
Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., 3/15/98 300,000 127,500
RJR Nabisco, Inc.:
10.50% Sr. Nts., 4/15/98 400,000 424,394
8.625% Medium-Term Nts., 12/1/02 500,000 435,738
SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05 500,000 512,500
Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03 500,000 467,500
Snydergeneral Corp., 14.25% Sr. Sub. Debs., 11/15/00 1,000,000 1,065,000
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 1,000,000 915,000
Stone Container Corp., 9.875% Sr. Nts., 2/1/01 1,000,000 935,000
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 300,000 327,750
Talley Industries, Inc., 12.25% Sr. Disc. Debs., 10/15/05 1,750,000 1,032,500
Thrifty Payless, Inc., 11.75% Sr. Nts., 4/15/03 500,000 510,000
Time Warner, Inc./Time Warner Entertainment LP, 10.15% Sr.
Nts., 5/1/12 500,000 560,000
Tiphook Finance Corp., 10.75% Sr. Gtd. Nts., 11/1/02 592,000 464,720
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,090,000
Unisys Corp.:
15% Credit Sensitive Nts., 7/1/97 500,000 543,712
9.75% Sr. Nts., 9/15/16 500,000 457,500
United States Banknote Corp., 11.625%, 8/1/02 (6) 380,000 380,000
USA Mobile Communication, 9.50% Sr. Nts., 2/1/04 1,000,000 915,000
USG Corp.:
10.25% Sr. Sec. Nts., 12/15/02 500,000 502,500
8.75% Debs., 3/1/17 300,000 263,250
Walter Industries, Inc., 14.625% Sr. Nts., Series B, 1/1/99 300,000 492,375
---------------
Total Corporate Bonds and Notes (Cost $56,781,378) 54,699,560
---------------
MUNICIPAL BONDS -- 0.2%
Port of Portland, Oregon Special Obligation Taxable Revenue
Bonds, PAMCO Project, 9.20%, 5/15/22 (Cost $500,000) 500,000 523,206
---------------
<CAPTION>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.0% Units
--------------
<S> <C> <C> <C>
Gaylord Container Corp. Wts., Exp. 7/96 (Cost $36,927) 16,412 62,571
---------------
<CAPTION>
PREFERRED STOCKS -- 0.9% Shares
--------------
<S> <C> <C> <C>
Alumax, Inc., $19.50 Cv., Series A 3,000 345,000
Chiquita Brands International, Inc., $1.32
Depositary Shares 26,000 357,500
Cyprus Amax Minerals Co., $4.00 Cv., Series A 6,000 404,250
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
PREFERRED STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
<S> <C> <C> <C>
Delta Airlines, Inc., $3.50 Cv. Depositary Shares Series C 13,200 597,300
K-III Communications Corp., Sr. Exch. 20,000 530,000
Liposome Co., Inc. (The), $1.9375 Cum. Cv. Exch. Depositary
Shares, Series A 10,000 166,250
---------------
Total Preferred Stocks (Cost $2,280,927) 2,400,300
---------------
COMMON STOCKS -- 46.4%
BASIC MATERIALS -- 4.2%
Chemicals -- 1.2% Air Products and Chemicals, Inc. 10,000 423,750
biosys (1) 40,000 250,000
Dow Chemical Co. (The) 8,500 555,688
Great Lakes Chemical Corp. 5,400 292,275
IMC Fertilizer Group, Inc. (1) 19,000 657,875
Praxair, Inc. 39,500 770,250
Sybron Chemical Industries, Inc. (1) 32,500 780,000
---------------
3,729,838
---------------
Chemicals: Diversified -- 0.9% ARCO Chemical Co. 24,200 1,098,075
Bayer AG ADR 7,000 1,515,286
---------------
2,613,361
---------------
Chemicals: Specialty -- 0.1% Goldschmidt (T.H.) AG 750 329,888
---------------
Metals: Miscellaneous -- 0.8% Brush Wellman, Inc. 69,300 1,100,137
Custom Chrome, Inc. (1) 43,000 612,750
Inco Ltd. 22,700 553,313
---------------
2,266,200
---------------
Paper and Forest
Products -- 0.7% Kimberly-Clark de Mexico, Series A 30,000 557,070
Lousiana-Pacific Corp. 26,200 799,100
Macmillian Bloedel Ltd. 57,800 729,725
---------------
2,085,895
---------------
Steel -- 0.5% Allegheny Ludlum Corp 30,000 555,000
Inland Steel Industries, Inc. (1) 20,600 718,425
---------------
1,273,425
---------------
CONSUMER CYCLICALS -- 10.0%
Automobiles -- 0.4% Fiat SpA 280,000 1,124,916
---------------
Auto Parts -- After
Market -- 0.2% Excel Industries, Inc. 30,000 465,000
---------------
Broadcast Media -- 1.1% Capital Cities/ABC, Inc. 10,000 711,250
Comcast Corp., Cl. A Special 63,950 1,151,100
Grupo Televisa SA, Sponsored ADR (6) 7,500 380,625
SFX Broadcasting, Inc., Cl. A (1) 66,000 907,500
---------------
3,150,475
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Entertainment -- 1.1% Disney (Walt) Co. 23,000 957,375
King World Productions, Inc. (1) 23,000 917,125
MGM Grand Inc. (1) 27,000 631,125
WMS Industries, Inc. (1) 33,200 630,800
---------------
3,136,425
---------------
Homebuilding -- 0.1% Miles Homes, Inc. (1) 50,000 221,875
---------------
Household Furnishings and
Appliances -- 0.6% Chromcraft Revington Inc. (1) 50,000 962,500
Shaw Industries, Inc. 40,000 660,000
---------------
1,622,500
---------------
Leisure Time -- 0.7% Caesar's World, Inc. (1) 23,100 837,375
Eastman Kodak Co. 14,000 673,750
Funco, Inc. (1) 35,000 472,500
---------------
1,983,625
---------------
Publishing -- 0.7% Bowne & Co., Inc 40,000 830,000
Time Warner, Inc. 17,100 600,638
Wolters Kluwer NV 10,167 600,917
---------------
2,031,555
---------------
Restaurants -- 0.3% Quantum Restaurant Group, Inc. (1) 95,000 795,625
---------------
Retail Stores: Department
Stores -- 0.3% Dillard Department Strores, Inc., Cl. A 26,300 812,013
---------------
Retail Stores: General
Merchandise Chains -- 0.6% Price/Costco, Inc. (1) 50,000 746,875
Waban, Inc. (1) 55,000 914,375
---------------
1,661,250
---------------
Retail: Specialty -- 1.5% Brock Candy Co. 40,000 310,000
Blockbuster Entertainment Corp. 9,700 250,988
CML Group, Inc. 57,400 674,450
Castorama Dubois Investissements LP 4,086 505,993
CompUSA, Inc. (1) 55,000 488,124
Inacom Corp. (1) 40,500 329,063
Toys 'R' US, Inc. 25,200 825,300
Venture Stores, Inc. 42,000 829,500
---------------
4,213,418
---------------
Shoes -- 0.6% Baker (J.), Inc. 57,600 1,116,000
Justin Industries, Inc 50,000 600,000
---------------
1,716,000
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
CONSUMER CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Textiles: Apparel
Manufacturers -- 1.1% Authentic Fitness Corp. (1) 59,400 831,600
Cone Mills Corp. (1) 42,200 543,325
Fruit of the Loom, Inc., Cl. A (1) 27,300 713,212
Warnaco Group, Inc. (The), Cl. A (1) 36,000 1,057,500
---------------
3,145,637
---------------
Toys -- 0.7% Mattel, Inc. 38,150 968,056
Nintendo Co. 7,000 506,680
SLM International Inc. (1) 46,000 506,000
---------------
1,980,736
---------------
CONSUMER NON-CYCLICALS -- 8.9%
Beverages: Alcoholic -- 0.2% Guinness PLC 100,000 674,510
---------------
Beverages: Soft Drinks -- 0.4% Whitman Corp. 70,000 1,085,000
---------------
Cosmetics -- 0.5% Avon Products, Inc. (1) 16,400 965,550
Neutrogena Corp 30,000 570,000
---------------
1,535,550
---------------
Drugs -- 1.8% Agouron Pharmaceuticals, Inc. (1) 22,000 247,500
Astra AB Free, Series A 15,500 312,643
Ciba-Geigy AG 950 560,230
Lilly (Eli) & Co. 16,000 910,000
Medeva PLC 185,000 382,634
Mylan Laboratories, Inc. 48,400 1,028,500
Nature's Bounty, Inc. (1) 70,000 560,000
Sandoz AG 600 311,226
Upjohn Co. 31,500 917,437
---------------
5,230,170
---------------
Food Processing -- 1.0% CP Pokphand Co. 927,000 251,861
Chiquita Brands International, Inc. 600 7,500
Nestle SA, Sponsored ADR (1) 20,000 839,353
Sanfilippo (John B.) & Son, Inc. 60,000 592,500
Sara Lee Corp. 46,200 981,750
---------------
2,672,964
---------------
Healthcare:
Diversified -- 1.3% Abbott Laboratories 28,800 835,200
Bristol-Myers Squibb Co. 25,000 1,340,625
Carter-Wallace, Inc. 44,000 819,500
Schering AG 1,025 613,796
---------------
3,609,121
---------------
Healthcare:
Miscellaneous -- 2.1% Amgen, Inc. (1) 17,900 767,463
Chiron Corp. (1) 8,400 459,900
FHP International Corp. (1) 45,000 1,080,000
Genzyme Corp. (1) 25,100 655,738
Manor Care, Inc. 45,785 1,150,348
Matrix Pharmaceutical, Inc. (1) 18,000 184,500
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
CONSUMER NON-CYCLICALS (CONTINUED)
<S> <C> <C> <C>
Healthcare: Miscellaneous (Continued)
Protein Design Labs, Inc. (1) 9,000 164,250
Quintiles Transnational Corp. (1) 10,000 180,000
U.S. Healthcare, Inc. 28,800 1,065,600
---------------
5,707,799
---------------
Hospital Management -- 0.3% Medical Care America, Inc. (1) 26,000 705,250
---------------
Medical Products -- 0.8% Medtronic, Inc. 9,000 721,125
Mitek Surgical Products, Inc. 54,000 945,000
Nellcor, Inc. (1) 23,000 615,250
---------------
2,281,375
---------------
Retail Stores: Food
Chains -- 0.1% Giant Food, Inc., Cl. A 17,900 351,288
---------------
Tobacco -- 0.4% Philip Morris Cos., Inc. 20,000 1,030,000
---------------
ENERGY -- 2.0%
Coal -- 0.2% Ashland Coal, Inc. 24,200 647,350
---------------
Oil and Gas Drilling -- 0.2% Santa Fe Energy Resources, Inc. 63,500 595,313
---------------
Oil: Integrated
Domestic -- 0.7% Ashland Oil, Inc. 15,000 504,375
Atlantic Richfield Co. 7,000 714,875
Unocal Corp. 22,000 629,750
---------------
1,849,000
---------------
Oil: Integrated
International -- 0.7% Royal Dutch Petroleum Co. 10,000 1,046,250
Saga Petroleum AS, Cl. A 12,000 140,832
Saga Petroleum AS, Cl. B 19,000 220,249
Total SA, Sponsored ADR 15,373 441,974
---------------
1,849,305
---------------
Oil Well Services and
Equipment -- 0.2% Schlumberger, Ltd. 11,000 650,375
---------------
FINANCIAL -- 4.5%
Financial Services: American Express Co. 31,500 811,125
Miscellaneous -- H & R Block Incorporated 15,400 604,450
1.1% Merrill Lynch & Co., Inc. 25,000 875,000
Peregrine Investment Holdings Ltd. (1) 200,000 328,622
Santa Anita Realty Enterprises, Inc. (6) 30,000 532,500
---------------
3,151,697
---------------
Insurance: Life -- 0.3% Bankers Life Holding Corp. 37,700 758,713
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
FINANCIAL (CONTINUED)
<S> <C> <C> <C>
Insurance: Multi-Line -- 0.8% American International Group, Inc. 12,000 1,039,500
American Re Corp. (1) 36,000 1,111,500
---------------
2,151,000
---------------
Insurance: Property and
Casualty -- 0.3% W.R. Berkley 21,000 813,750
---------------
Major Banks: Other -- 0.2% Deutsche Bank AG, ADR 1,325 569,482
---------------
Major Banks: Regional -- 0.8% BancOne Corp. 19,600 671,300
NationsBank Corp. 30,700 1,577,213
---------------
2,248,513
---------------
Money Center Banks -- 0.7% Bankers Trust New York Corp. 15,700 1,046,013
Chemical Banking Corp. 25,000 962,500
---------------
2,008,513
---------------
Savings and Loans/Holding
Cos. -- 0.3% Golden West Financial Corp. 20,000 772,500
---------------
INDUSTRIAL -- 7.0%
Building Materials Masco Corp. 15,000 412,500
Group -- 0.4% Owens-Corning Fiberglass Corp. (1) 25,400 790,575
---------------
1,203,075
---------------
Commercial Services -- 0.4% Borg-Warner Corp. (1) 35,000 393,750
Sylvan Learning Sys. Inc (1) 50,000 787,500
---------------
1,181,250
---------------
Conglomerates -- 0.7% Jardine Matheson Holdings Ltd. 50,000 384,901
Tenneco, Inc. 18,400 853,300
Wharf Holdings 175,000 645,276
---------------
1,883,477
---------------
Containers: Metal and
Glass -- 0.2% Interpool, Inc. (1) 39,000 448,500
---------------
Electrical Equipment -- 1.1% ASEA AB, Sponsored ADR 10,000 745,000
C-Cube Microsystems, Inc. (1) 33,000 519,750
General Electric Co. 20,000 932,500
Methode Electronics, Inc., Cl. A 50,000 850,000
---------------
3,047,250
---------------
Engineering and
Construction -- 0.8% Empresas ICA Sociedad Controladora S.A. de C.V. 23,000 552,000
Foster Wheeler Corp. 17,000 618,375
Huarte SA 44,150 570,323
Insituform Mid-America, Inc., Cl. A 60,000 630,000
---------------
2,370,698
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
INDUSTRIAL (CONTINUED)
<S> <C> <C> <C>
Heavy Duty Trucks and
Parts -- 0.1% Spartan Motors, Inc. 24,000 306,000
---------------
Machinery Tools -- 0.1% FANUC Ltd. 7,000 336,368
---------------
Machinery: Diversified -- 0.1% Cognex Corp. (1) 25,000 356,250
---------------
Manufacturing: Diversified
Industrials -- 1.2% AlliedSignal, Inc. 18,000 623,250
Instrument Systems Corp. (1) 65,000 479,375
Mannesmann AG 3,287 833,395
Olin Corp. 11,000 592,625
Siemens AG, ADR 10,000 811,839
---------------
3,340,484
---------------
Pollution Control -- 0.2% WMX Technologies, Inc. 20,000 530,000
---------------
Railroads -- 0.6% Burlington Northern, Inc. 17,000 907,375
Chicago & North Western Holdings Corp. 35,000 809,375
---------------
1,716,750
---------------
Transportation:
Miscellaneous -- 0.8% Consolidated Freightways, Inc. (1) 25,000 593,750
DS Svendborg B (1) 10 285,259
OMI Corp. 105,000 630,000
Stolt-Nielsen SA 40,000 682,500
---------------
2,191,509
---------------
Truckers -- 0.3% Roadway Services, Inc (1) 14,300 900,900
---------------
TECHNOLOGY -- 7.9%
Aerospace/Defense -- 0.4% General Dynamics Corp. 12,800 523,200
McDonnell Douglas Corp. 4,000 468,000
---------------
991,200
---------------
Computer Software and
Services -- 3.0% BMC Software, Inc. (1) 17,000 743,750
Computer Associates International, Inc. 27,500 1,100,000
Electronic Arts, Inc. (1) 51,500 721,000
Legent Corp. (1) 23,000 621,000
Lotus Development Corp. (1) 13,800 507,150
Marcam Corp. (1) 48,300 543,375
Microsoft Corp. (1) 12,600 648,900
Novell, Inc. (1) 54,600 914,550
Pyxis Corp. (1) 48,000 912,000
Sap AG, Preference 500 1,003,802
Sierra On-Line, Inc. (1) 31,157 514,091
Trinzic Corp. (1) 80,000 290,000
---------------
8,519,618
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
COMMON STOCKS (CONTINUED) Shares Value -- Note 1
-------------- ---------------
TECHNOLOGY (CONTINUED)
<S> <C> <C> <C>
Computer Systems -- 1.0% Cabletron Systems, Inc. (1) 5,000 483,125
Radius, Inc. 40,000 195,000
Seagate Technology (1) 16,000 316,000
Sun Microsystems Inc. (1) 33,000 680,625
Synoptics Communications, Inc. (1) 43,800 596,775
Tandem Computers, Inc. (1) 59,400 668,250
---------------
2,939,775
---------------
Electionics: Defense -- 0.2% CAE, Inc. 115,000 551,470
---------------
Electronics:
Instrumentation -- 0.4% Hewlett-Packard Co. 11,500 866,813
Molecular Dynamics, Inc. (1) 25,000 162,500
---------------
1,029,313
---------------
Electronics:
Semiconductors -- 1.0% Intel Corp. 34,500 2,018,250
Samsung Electronics Co. Ltd., Sponsored GDR (1)(6) 11,500 675,625
---------------
2,693,875
---------------
Office Equipment and
Supplies -- 0.3% Xerox Corp. 8,500 830,875
---------------
Telecommunications -- 1.6% Airtouch Communications, Inc. (1) 46,000 1,086,750
American Telephone & Telegraph Co. 16,000 870,000
MCI Communications Corp. 46,300 1,024,388
Nextel Communications, Inc., Cl. A (1) 19,900 601,975
Rogers Cantel Mobile Communications, Inc., Sub. Cl. B (1) 33,900 822,075
---------------
4,405,188
---------------
UTILITIES -- 1.9%
Electric Public Service Enterprise Group, Inc. 35,000 910,000
Companies -- 0.5% Verbund Oest Electriz 9,400 536,872
---------------
1,446,872
---------------
Natural Gas -- 0.4% Hong Kong & China Gas 244,800 468,744
Southwestern Energy Co. 40,000 690,000
---------------
1,158,744
---------------
Telephone -- 1.0% BCE, Inc. 22,000 712,250
Pacific Telesis Group 25,000 771,875
U S West Communications, Inc. 30,500 1,277,187
---------------
2,761,312
---------------
Total Common Stocks (Cost $118,513,157) 130,448,949
---------------
<PAGE>
</TABLE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
<TABLE>
<CAPTION>
Market
Value -- Note 1
---------------
<S> <C> <C> <C>
Total Investments, at Value (Cost $271,942,177) 99.1% 278,274,841
Other Assets Net of Liabilities 0.9 2,483,349
-------------- ---------------
Net Assets 100.0% $ 280,758,190
-------------- ---------------
-------------- ---------------
</TABLE>
(1) Non-income producing security.
(2) Face amount is reported in foreign currency.
(3) Represents the current interest rate for a variable rate security.
(4) Interest is paid in kind.
(5) Represents a zero coupon bond that converts to a fixed rate of interest at a
designated future date.
(6) The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The
securities are valued under methods approved by the Board of Trustees as
reflecting fair value. The Fund intends to invest no more than 10% of its
net assets (determined at the time of purchase) in restricted and illiquid
securities, excluding securities eligible for resale pursuant to Rule 144A
of the Act that are determined to be liquid by the Board of Trustees or by
the Manager under Board-approved guidelines. Restricted and illiquid
securities amount to $3,839,000, or 1.37% of the Fund's net assets at June
30, 1994.
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit June 30, 1994
- -------------------------------------------------- --------------------- -------- -------------
<S> <C> <C> <C>
Charter Medical Corp., 11.25% Sr.N Sub. Nts.,
4/15/04 (7) 4/22/94 $ 1.00 $ 1.03
Grupo Televisa SA, Sponsored ADR (7) 8/20/92 - 8/26/92 $27.68 $ 50.75
Imax Corp., 7% Sr. Nts., 3/1/01 (7) 2/22/94 $ 0.93 $ 0.92
Penda Industries, 10.75% Sr. MNts., 3/1/04 (7) 3/11/94 - 4/11/94 $ 0.99 $ 0.98
Samsung Electronics Co., Ltd., Sponsored GDR (7) 11/4/93 $34.75 $ 58.75
Santa Anita Realty Enterprises, Inc. 5/28/93 - 11/29/93 $17.96 $ 17.75
United States Banknote SCorp., 11.625%, 8/1/02 (7) 4/26/94 $ 0.98 $ 1.00
</TABLE>
(7) Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds -- Multiple Strategies Fund
(8) Securities with an aggregate market value of $4,854,438 are held to cover
outstanding call options, as follows:
<TABLE>
<CAPTION>
Shares
Subject Expiration Exercise Premium Market Value --
to Call Date Price Received Note 1
------- ---------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Amgen, Inc. .................... 4,000 10/94 $ 50.00 $11,380 $ 4,500
Avon Products Inc. ............. 7,200 10/94 60.00 30,383 21,150
Blockbuster Entertainment
Corp. ......................... 9,700 9/94 25.00 26,989 21,219
Burlington Northern, Inc. ...... 2,800 7/94 65.00 6,566 525
Computer Associates, Inc. ...... 5,500 10/94 45.00 13,584 11,000
Disney (Walt) Co. .............. 4,000 10/94 40.00 19,379 15,000
Golden West Financial Corp. .... 3,000 11/94 40.00 8,910 6,375
Grupo Televisa SA, ADS.......... 3,700 10/94 55.00 19,776 10,637
Grupo Televisa SA, ADS.......... 3,800 10/94 60.00 12,710 5,700
Hewlett-Packard Co. ............ 2,000 11/04 95.00 4,690 1,750
King World Productions, Inc. ... 4,600 8/94 40.00 9,062 12,650
King World Productions, Inc. ... 4,600 8/94 45.00 9,062 6,325
King World Productions, Inc. ... 4,600 11/94 45.00 15,961 12,650
Legent Corp. ................... 7,000 10/94 30.00 17,289 10,500
Lotus Development Corp. ........ 3,900 10/94 60.00 31,082 1,219
McDonnell Douglas Corp. ........ 1,000 8/94 120.00 6,970 3,500
Medtronic, Inc. ................ 1,800 8/94 90.00 7,146 1,125
Merrill Lynch & Co., Inc. ...... 3,000 7/94 47.50 5,535 188
Microsoft Corp. ................ 1,200 10/94 47.50 3,864 15,600
Nellcor, Inc. .................. 4,500 7/94 30.00 9,990 1,406
Nellcor, Inc. .................. 4,600 10/94 30.00 8,022 4,313
Neutrogena Corp. ............... 7,500 1/95 22.50 11,962 8,437
Nextel Communications, Inc., Cl.
A.............................. 4,000 11/94 45.00 5,380 2,500
Philip Morris Cos., Inc. ....... 5,000 12/94 60.00 10,475 4,375
Spartan Motors, Inc. ........... 10,400 12/94 22.50 17,887 3,250
Time Warner, Inc. .............. 4,000 9/94 45.00 5,880 750
U.S. Healthcare, Inc. .......... 3,800 7/94 43.375 25,535 2,138
U.S. Healthcare, Inc. .......... 3,800 7/94 46.625 16,985 712
Xerox Corp. .................... 2,000 7/94 95.00 7,440 8,500
-------- ------
$379,894 $ 197,994
-------- ------
-------- ------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
OPPEHEIMER OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER
MONEY HIGH INCOME BOND APPRECIATION GROWTH
FUND FUND FUND FUND FUND
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost*) -- see
accompanying
statements $96,192,331 $107,458,382 $121,906,608 $148,400,575 $57,969,963
Unrealized
appreciation on
forward foreign
currency exchange
contracts -- Note
5 -- -- -- -- --
Cash -- -- 1,971,891 -- 52,959
Receivables:
Dividends and
interest 233,032 1,791,154 1,823 68,576 62,042
Shares of
beneficial
interest sold 1,923,479 264,495 122,031 1,638,071 1,266,773
Investments sold 84,631 3,345,537 1,247,134 791,796
Other 3,841 807,928 75,710 6,174 904
----------------------------------------------------------------------------------------------
Total assets 98,437,314 113,667,496 124,078,063 151,360,530 60,144,437
----------------------------------------------------------------------------------------------
LIABILITIES:
Bank overdraft 1,465,532 616,852 -- 73,429 --
Options written, at
value (premiums
received $635,122
and $1,594) -- see
accompanying
statements -- Note
4 -- -- -- -- --
Unrealized
depreciation on
forward foreign
exchange
contracts -- Note
5 -- 28,865 -- -- --
Payables and other
liabilities:
Dividends 146,888 -- -- -- --
Investments
purchased -- 2,524,487 1,408,057 5,755,252 611,160
Shares of
beneficial
interest
redeemed -- 585,034 176,610 591,059 1,505,115
Other 11,707 269,123 104,650 17,599 11,027
----------------------------------------------------------------------------------------------
Total
liabilities 1,624,127 4,024,361 1,689,317 6,437,339 2,127,302
----------------------------------------------------------------------------------------------
NET ASSETS $96,813,187 $109,643,135 $122,388,746 $144,923,191 $58,017,135
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
COMPOSITION OF NET
ASSETS:
Paid-in capital $96,813,187 $109,499,796 $122,767,358 $144,753,243 $52,673,138
Undistributed
(distributions in
excess of) net
investment income -- 1,447,395 1,840,933 387,234 420,134
Accumulated net
realized gain (loss)
from investment,
written option and
foreign currency
transactions -- 746,761 (152,327) 910,003 (731,976)
Net unrealized
appreciation
(depreciation) on
investments, options
written and
translation of
assets and
liabilities
denominated in
foreign currencies -- (2,050,817) (2,067,218) (1,127,289) 5,655,839
----------------------------------------------------------------------------------------------
NET ASSETS $96,813,187 $109,643,135 $122,388,746 $144,923,191 $58,017,135
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
SHARES OF BENEFICIAL
INTEREST
OUTSTANDING 96,813,187 10,562,705 10,956,821 6,147,913 3,481,692
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER
SHARE $1.00 $10.38 $11.17 $23.57 $16.66
*Cost $96,192,331 $109,502,241 $123,983,784 $149,527,864 $52,314,124
<CAPTION>
OPPENHEIMER OPPENHEIMER OPPENHEIMER
MULTIPLE GLOBAL STRATEGIC
STRATEGIES SECURITIES BOND
FUND FUND FUND
------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value
(cost*) -- see
accompanying
statements $278,274,841 $191,915,772 $16,302,679
Unrealized
appreciation on
forward foreign
currency exchange
contracts -- Note
5 -- 6,810 --
Cash -- -- --
Receivables:
Dividends and
interest 2,531,532 517,263 402,943
Shares of
beneficial
interest sold 404,006 73,936 65,707
Investments sold 2,228,458 3,107,536 353,945
Other 44,016 37,983 120,861
------------------------------------------------------
Total assets 283,482,853 195,659,300 17,246,135
------------------------------------------------------
LIABILITIES:
Bank overdraft 127,238 370,105 1,195,045
Options written, at
value (premiums
received $635,122
and $1,594) -- see
accompanying
statements -- Note
4 197,994 -- 1,275
Unrealized
depreciation on
forward foreign
exchange
contracts -- Note
5 -- -- 10,277
Payables and other
liabilities:
Dividends -- -- --
Investments
purchased 2,046,912 585,096 200,000
Shares of
beneficial
interest
redeemed 291,457 321,808 585
Other 61,062 65,552 32,365
------------------------------------------------------
Total
liabilities 2,724,663 1,342,561 1,439,547
------------------------------------------------------
NET ASSETS $280,758,190 $194,316,739 $15,806,588
------------------------------------------------------
------------------------------------------------------
COMPOSITION OF NET
ASSETS:
Paid-in capital $ 266,588,126 $ 190,781,256 $ 16,570,937
Undistributed
(distributions in
excess of) net
investment income 2,454,075 933,006 189,081
Accumulated net
realized gain (loss)
from investment,
written option and
foreign currency
transactions 5,197,309 3,668,311 (301,169)
Net unrealized
appreciation
(depreciation) on
investments, options
written and
translation of
assets and
liabilities
denominated in
foreign currencies 6,518,680 (1,065,834) (652,261)
------------------------------------------------------
NET ASSETS $280,758,190 $194,316,739 $15,806,588
------------------------------------------------------
------------------------------------------------------
SHARES OF BENEFICIAL
INTEREST
OUTSTANDING 21,580,744 12,738,903 3,272,731
NET ASSET VALUE,
REDEMPTION PRICE AND
OFFERING PRICE PER
SHARE $13.01 $15.25 $4.83
*Cost $271,942,177 $192,984,238 $16,951,135
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 1994 (Unaudited)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
OPPENHEIMER OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER
MONEY HIGH INCOME BOND APPRECIATION GROWTH
FUND FUND FUND FUND FUND
----------- ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $1,620,619 $ 4,405,878 $ 4,351,596 $ 540,279 $ 153,411
Dividends -- 141,201 99 141,414 389,871
----------- ------------ ------------ ------------- ------------
Total income 1,620,619 4,547,079 4,351,695 681,693 543,282
----------- ------------ ------------ ------------- ------------
EXPENSES:
Management fees -- Note 6 139,053 265,430 225,035 279,588 114,962
Custodian fees and expenses 10,112 6,727 7,019 10,250 7,008
Legal and auditing fees 6,904 6,496 6,178 1,190 6,069
Trustees' fees and expenses 1,976 1,062 787 2,394 815
Other 2,734 1,802 6,001 16,921 1,689
----------- ------------ ------------ ------------- ------------
Total expenses 160,779 281,517 245,020 310,343 130,543
----------- ------------ ------------ ------------- ------------
NET INVESTMENT INCOME 1,459,840 4,265,562 4,106,675 371,350 412,739
----------- ------------ ------------ ------------- ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS, OPTIONS
WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Investments 18,535 1,212,808 (68,826 ) 978,991 (121,043)
Expiration of option contracts
written - Note 4 -- -- -- -- --
Foreign currency transactions -- (60,930 ) (65,651 ) -- --
Net change in unrealized
appreciation or depreciation
on:
Investments and options written -- (6,928,091 ) (6,376,238 ) (27,076,241 ) (3,480,281)
Translation of assets and
liabilities denominated in
foreign currencies -- (64,343 ) (23,767 ) -- --
----------- ------------ ------------ ------------- ------------
Net realized and unrealized loss
on investments, options written
and foreign currency
transactions 18,535 (5,840,556 ) (6,534,482 ) (26,097,250 ) (3,601,324)
----------- ------------ ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $1,478,375 $(1,574,994 ) $(2,427,807 ) $(25,725,900 ) $(3,188,585)
----------- ------------ ------------ ------------- ------------
----------- ------------ ------------ ------------- ------------
<CAPTION>
OPPENHEIMER OPPENHEIMER OPPENHEIMER
MULTIPLE GLOBAL STRATEGIC
STRATEGIES SECURITIES BOND
FUND FUND FUND
------------- ------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 5,969,118 $ 283,417 $ 595,699
Dividends 1,140,449 1,376,228 6,969
------------- ------------- -----------
Total income 7,109,567 1,659,645 602,668
------------- ------------- -----------
EXPENSES:
Management fees -- Note 6 520,568 552,317 43,184
Custodian fees and expenses 38,084 88,256 6,516
Legal and auditing fees 3,854 4,652 8,799
Trustees' fees and expenses 12,189 2,639 1,072
Other 20,120 69,079 11,861
------------- ------------- -----------
Total expenses 594,815 716,943 71,432
------------- ------------- -----------
NET INVESTMENT INCOME 6,514,752 942,702 531,236
------------- ------------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS, OPTIONS
WRITTEN AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Investments 4,959,289 6,897,889 (249,724 )
Expiration of option contracts
written - Note 4 430,504 -- 8,551
Foreign currency transactions 1,465 (3,193,620 ) (60,090 )
Net change in unrealized
appreciation or depreciation
on:
Investments and options written (23,250,438 ) (21,844,099 ) (791,990 )
Translation of assets and
liabilities denominated in
foreign currencies (603,332 ) 4,605,647 55,148
------------- ------------- -----------
Net realized and unrealized loss
on investments, options written
and foreign currency
transactions (18,462,512 ) (13,534,183 ) (1,038,105 )
------------- ------------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(11,947,760 ) $(12,591,481 ) $ (506,869 )
------------- ------------- -----------
------------- ------------- -----------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER OPPENHEIMER OPPENHEIMER
MONEY HIGH INCOME BOND
FUND FUND FUND
--------------------------- ---------------------------- -----------------------------
1994(1) 1993(2) 1994(1) 1993(2) 1994(1) 1993(2)
------------ ------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,459,840 $ 1,795,672 $ 4,265,562 $ 7,032,421 $ 4,106,675 $ 6,281,918
Net realized gain (loss) on
investments, options written and
foreign currency transactions 18,535 972 1,151,878 2,870,765 (134,477) 431,623
Net change in unrealized
appreciation or depreciation on
investments, options written and
translation of assets and
liabilities denominated in foreign
currencies -- -- (6,992,434) 4,936,980 (6,400,005) 3,179,352
------------ ------------ ------------- ------------ ------------- -------------
Net increase (decrease) in net
assets resulting from operations 1,478,375 1,796,644 (1,574,994) 14,840,166 (2,427,807) 9,892,893
NET CHANGE IN EQUALIZATION -- -- 1,194,413 747,196
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income (1,459,840) (1,795,672) (2,377,952) (7,933,113) (2,288,298) (6,021,196)
Distributions from net realized
gain on investments, options
written and foreign currency
transactions (19,507) -- (2,106,024) -- (283,274) --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net
assets resulting from beneficial
interest transactions -- Note 2 35,592,540 2,954,149 22,690,772 44,092,559 15,542,004 43,872,915
------------ ------------ ------------- ------------ ------------- -------------
NET ASSETS:
Total increase (decrease) 35,591,568 2,955,121 16,631,802 52,194,025 10,542,625 48,491,808
Beginning of period 61,221,619 58,266,498 93,011,333 40,817,308 111,846,121 63,354,313
------------ ------------ ------------- ------------ ------------- -------------
End of period $ 96,813,187 $ 61,221,619 $ 109,643,135 $ 93,011,333 $ 122,388,746 $ 111,846,121
------------ ------------ ------------- ------------ ------------- -------------
------------ ------------ ------------- ------------ ------------- -------------
<CAPTION>
OPPENHEIMER
CAPITAL APPRECIATION
FUND
-----------------------------
1994(1) 1993(2)
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 371,350 $ 221,843
Net realized gain (loss) on
investments, options written and
foreign currency transactions 978,991 17,171,028
Net change in unrealized
appreciation or depreciation on
investments, options written and
translation of assets and
liabilities denominated in foreign
currencies (27,076,241) 8,012,743
------------- -------------
Net increase (decrease) in net
assets resulting from operations (25,725,900) 25,405,614
NET CHANGE IN EQUALIZATION
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment
income (218,275) (173,608)
Distributions from net realized
gain on investments, options
written and foreign currency
transactions (17,112,748) (3,478,465)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net
assets resulting from beneficial
interest transactions -- Note 2 51,095,011 31,796,464
------------- -------------
NET ASSETS:
Total increase (decrease) 8,038,088 53,550,005
Beginning of period 136,885,103 83,335,098
------------- -------------
End of period $ 144,923,191 $ 136,885,103
------------- -------------
------------- -------------
</TABLE>
(1) For the six months ended June 30 -- unaudited.
(2) For the year ended December 31.
See accompanying Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER OPPENHEIMER
GROWTH MULTIPLE STRATEGIES
FUND FUND
--------------------------- -----------------------------
1994(1) 1993(2) 1994(1) 1993(2)
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 412,739 $ 521,913 $ 6,514,752 $ 8,871,280
Net realized gain (loss) on investments, options
written and foreign currency transactions (121,043 ) (416,658 ) 5,391,258 3,175,446
Net change in unrealized appreciation or
depreciation on investments, options written and
translation of assets and liabilities denominated
in foreign currencies (3,480,281 ) 3,377,578 (23,853,770 ) 17,718,371
------------ ------------ ------------- -------------
Net increase (decrease) in net assets resulting
from operations (3,188,585 ) 3,482,833 (11,947,760 ) 29,765,097
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (516,871 ) (339,216 ) (4,455,534 ) (8,601,104)
Distributions from net realized gain on
investments, options written and foreign currency
transactions (127,540 ) (768,083 ) (1,925,053 ) --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting
from beneficial interest transactions -- Note 2 5,149,083 17,831,569 48,796,489 69,662,484
------------ ------------ ------------- -------------
NET ASSETS:
Total increase (decrease) 1,316,087 20,207,103 30,468,142 90,826,477
Beginning of period 56,701,048 36,493,945 250,290,048 159,463,571
------------ ------------ ------------- -------------
End of period $58,017,135 $56,701,048 $280,758,190 $250,290,048
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
<CAPTION>
OPPENHEIMER OPPENHEIMER
GLOBAL SECURITIES STRATEGIC BOND
FUND FUND
---------------------------- --------------------------
1994(1) 1993(2) 1994(1) 1993(3)
------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 942,702 $ 228,462 $ 531,236 $ 161,471
Net realized gain (loss) on investments, options
written and foreign currency transactions 3,704,269 2,546,181 (301,263 ) 23,918
Net change in unrealized appreciation or
depreciation on investments, options written and
translation of assets and liabilities denominated
in foreign currencies (17,238,452 ) 16,954,257 (736,842 ) 84,581
------------- ------------ ------------ -----------
Net increase (decrease) in net assets resulting
from operations (12,591,481 ) 19,728,900 (506,869 ) 269,970
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income (359,955 ) -- (355,561 ) (155,087 )
Distributions from net realized gain on
investments, options written and foreign currency
transactions (2,441,859 ) -- (16,802 ) --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting
from beneficial interest transactions -- Note 2 113,285,523 63,158,438 6,799,302 9,771,635
------------- ------------ ------------ -----------
NET ASSETS:
Total increase (decrease) 97,892,228 82,887,338 5,920,070 9,886,518
Beginning of period 96,424,511 13,537,173 9,886,518 --
------------- ------------ ------------ -----------
End of period $194,316,739 $96,424,511 $15,806,588 $9,886,518
------------- ------------ ------------ -----------
------------- ------------ ------------ -----------
</TABLE>
(1) For the six months ended June 30 -- unaudited.
(2) For the year ended December 31.
(3) For the period from May 3, 1993 (commencement of operations) to December 31,
1993.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
MONEY
FUND
--------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations -- net
investment income and net realized gain
on investments .02 .03 .04 .06 .08 .09
Dividends and distributions to
shareholders (.02) (.03 ) (.04 ) (.06 ) (.08 ) (.09 )
----- -------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- -------- -------- -------- -------- --------
----- -------- -------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in thousands) $96,813 $61,221 $58,266 $58,709 $89,143 $68,440
Average net assets (in thousands) $82,686 $57,654 $61,317 $75,747 $82,966 $67,586
Number of shares outstanding at end of
year (in thousands) 96,813 61,221 58,266 58,703 89,141 68,439
Ratios to average net assets:
Net investment income 3.56%(2) 3.12 % 3.76 % 5.97 % 7.80 % 8.82 %
Expenses .39%(2) .43 % .50 % .49 % .51 % .53 %
</TABLE>
(1) For the year ended December 31.
(2) Annualized.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
HIGH INCOME
FUND
--------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $11.02 $ 9.74 $9.40 $7.90 $8.59 $9.30
Income from investment operations:
Net investment income .42 .82 1.19 1.28 1.21 1.09
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions (.59) 1.65 .43 1.30 (.82 ) (.65 )
------ -------- -------- -------- -------- --------
Total income from investment
operations (.17) 2.47 1.62 2.58 .39 .44
------ -------- -------- -------- -------- --------
Dividends and distributions to
shareholders:
Dividends from net investment income (.23) (1.19 ) (1.28 ) (1.08 ) (1.08 ) (1.08 )
Distributions from net realized gain
on investments (.24) -- -- -- -- (.07 )
------ -------- -------- -------- -------- --------
Total dividends and distributions to
shareholders (.47) (1.19 ) (1.28 ) (1.08 ) (1.08 ) (1.15 )
------ -------- -------- -------- -------- --------
Net asset value, end of period $ 10.38 $ 11.02 $ 9.74 $ 9.40 $ 7.90 $ 8.59
------ -------- -------- -------- -------- --------
------ -------- -------- -------- -------- --------
TOTAL RETURN, AT NET ASSET VALUE(2) (1.61)% 26.34 % 17.92 % 33.91 % 4.65 % 4.84 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 109,643 $93,011 $40,817 $27,308 $19,172 $23,698
Average net assets (in thousands) $ 98,592 $67,000 $36,861 $23,663 $21,493 $26,040
Number of shares outstanding at end of
period (in thousands) 10,563 8,443 4,189 2,905 2,427 2,760
Ratios to average net assets:
Net investment income 8.73%(3) 10.50 % 12.08 % 14.26 % 14.32 % 11.52 %
Expenses .58%(3) .68 % .73 % .75 % .75 % .75 %
Portfolio turnover rate(4) 51.5% 135.7 % 144.2 % 108.0 % 95.1 % 78.7 %
</TABLE>
(1) For the year ended December 31.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
BOND
FUND
---------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 11.65 $ 10.99 $ 11.15 $ 10.33 $ 10.49 $ 10.15
Income from investment operations:
Net investment income .21 .65 .87 .95 .97 .98
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions (.45) .76 (.17) .80 (.18) .32
------ --------- -------- -------- -------- --------
Total income from investment
operations (.24) 1.41 .70 1.75 .79 1.30
------ --------- -------- -------- -------- --------
Dividends and distributions to
shareholders:
Dividends from net investment income (.21) (.75) (.86) (.93) (.95) (.96)
Distributions from net realized gain
on investments (.03) -- -- -- -- --
------ --------- -------- -------- -------- --------
Total dividends and distributions to
shareholders (.24) (.75) (.86) (.93) (.95) (.96)
------ --------- -------- -------- -------- --------
Net asset value, end of period $ 11.17 $ 11.65 $ 10.99 $ 11.15 $ 10.33 $ 10.49
------ --------- -------- -------- -------- --------
------ --------- -------- -------- -------- --------
TOTAL RETURN, AT NET ASSET VALUE(2) (2.07)% 13.04% 6.50% 17.63% 7.92% 13.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 122,389 $ 111,846 $ 63,354 $ 32,762 $ 16,576 $ 13,422
Average net assets (in thousands) $ 115,574 $ 87,215 $ 45,687 $ 22,169 $ 15,088 $ 11,167
Number of shares outstanding at end of
period (in thousands) 10,957 9,602 5,766 2,939 1,604 1,280
Ratios to average net assets:
Net investment income 7.17%(3) 7.20% 7.81% 8.73% 9.30% 9.34%
Expenses .43%(3) .46% .56% .64% .61% .64%
Portfolio turnover rate(4) 16.5% 36.3% 41.3% 7.6% 7.4% 5.4%
</TABLE>
(1) For the year ended December 31.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
CAPITAL APPRECIATION
FUND
---------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 31.64 $ 26.04 $ 23.24 $ 15.24 $ 20.40 $ 16.31
Income from investment operations:
Net investment income .05 .05 .06 .08 .32 .50
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions (4.55) 6.71 3.43 8.18 (3.54) 3.93
------ --------- -------- -------- -------- --------
Total income from investment
operations (4.50) 6.76 3.49 8.26 (3.22) 4.43
------ --------- -------- -------- -------- --------
Dividends and distributions to
shareholders:
Dividends from net investment income (.04) (.06) (.14) (.26) (.53) (.34)
Distributions from net realized gain
on investments (3.53) (1.10) (.55) -- (1.41) --
------ --------- -------- -------- -------- --------
Total dividends and distributions to
shareholders (3.57) (1.16) (.69) (.26) (1.94) (.34)
------ --------- -------- -------- -------- --------
Net asset value, end of period $ 23.57 $ 31.64 $ 26.04 $ 23.24 $ 15.24 $ 20.40
------ --------- -------- -------- -------- --------
------ --------- -------- -------- -------- --------
TOTAL RETURN, AT NET ASSET VALUE(2) (16.07)% 27.32% 15.42% 54.72% (16.82)% 27.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 144,923 $ 136,885 $ 83,335 $ 49,371 $ 23,295 $ 27,523
Average net assets (in thousands) $ 143,458 $ 98,228 $ 56,371 $ 34,887 $ 24,774 $ 21,307
Number of shares outstanding at end of
period (in thousands) 6,148 4,326 3,201 2,125 1,528 1,349
Ratios to average net assets:
Net investment income .52%(3) .23% .30% .81% 1.93% 3.27%
Expenses .44%(3) .47% .54% .63% .71% .68%
Portfolio turnover rate(4) 55.3% 122.8% 78.9% 122.3% 222.0% 130.5%
</TABLE>
(1) For the year ended December 31.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
GROWTH
FUND
--------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 17.70 $ 26.96 $ 15.17 $ 12.54 $ 16.38 $ 13.64
Income (loss) from investment
operations:
Net investment income .15 .46 .16 .30 .56 .66
Net realized and unrealized gain
(loss) on investments (1.00) .74 1.99 2.82 (1.79) 2.50
------ -------- -------- -------- -------- --------
Total income (loss) from investment
operations .85 1.20 2.15 3.12 (1.23) 3.16
------ -------- -------- -------- -------- --------
Dividends and distributions to
shareholders:
Dividends from net investment income (.15) (.14) (.36) (.49) (.62) (.35)
Distributions from net realized gain
on investments (.04) (.32) -- -- (1.99) (.07)
------ -------- -------- -------- -------- --------
Total dividends and distributions to
shareholders (1.04) (.46) (.36) (.49) (2.61) (.42)
------ -------- -------- -------- -------- --------
Net asset value, end of period $ 16.66 $ 17.70 $ 16.96 $ 15.17 $ 12.54 $ 16.38
------ -------- -------- -------- -------- --------
------ -------- -------- -------- -------- --------
TOTAL RETURN, AT NET ASSET VALUE(2) (4.86)% 7.25% 14.53% 25.54% (8.21)% 23.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 58,017 $ 56,701 $ 36,494 $ 22,032 $ 15,895 $ 19,301
Average net assets (in thousands) $ 58,894 $ 46,389 $ 25,750 $ 18,810 $ 17,235 $ 18,596
Number of shares outstanding at end of
period (in thousands) 3,482 3,203 2,152 1,453 1,267 1,179
Ratios to average net assets:
Net investment income 1.41%(3) 1.13% 1.36% 2.82% 4.09% 3.72%
Expenses .45%(3) .50% .61% .70% .71% .70%
Portfolio turnover rate(4) 15.8% 12.6% 48.7% 133.9% 267.9% 148.0%
</TABLE>
(1) For the year ended December 31.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
MULTIPLE STRATEGIES
FUND
-------------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(1) 1992(1) 1991(1) 1990(1) 1989(1)
(Unaudited)
------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 13.88 $ 12.47 $ 11.96 $ 10.90 $ 12.30 $ 11.58
Income (loss) from investment
operations:
Net investment income .30 .55 .55 .69 .73 .73
Net realized and unrealized gain
(loss) on investments (.86) 1.41 .50 1.15 (.97) 1.04
------ --------- --------- --------- --------- ---------
Total income (loss) from investment
operations (.56) 1.96 1.05 1.84 (.24) 1.77
------ --------- --------- --------- --------- ---------
Dividends and distributions to
shareholders:
Dividends from net investment income (.21) (.55) (.54) (.78) (.70) (.68)
Distributions from net realized gain
on investments (.10) -- -- -- (.46) (.37)
------ --------- --------- --------- --------- ---------
Total dividends and distributions to
shareholders (.31) (.55) (.54) (.78) (1.16) (1.05)
------ --------- --------- --------- --------- ---------
Net asset value, end of period $ 13.01 $ 13.88 $ 12.47 $ 11.96 $ 10.90 $ 12.30
------ --------- --------- --------- --------- ---------
------ --------- --------- --------- --------- ---------
TOTAL RETURN, AT NET ASSET VALUE(2) (4.07)% 15.95% 8.99% 17.48% (1.91)% 15.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 280,758 $ 250,290 $ 159,464 $ 124,634 $ 118,888 $ 121,286
Average net assets (in thousands) $ 268,023 $ 199,954 $ 139,011 $ 117,000 $ 123,231 $ 101,057
Number of shares outstanding at end of
period (in thousands) 21,581 18,026 12,792 10,421 10,908 9,860
Ratios to average net assets:
Net investment income 4.90%(3) 4.44% 4.63% 5.95% 6.53% 6.36%
Expenses .45%(3) .48% .55% .54% .55% .57%
Portfolio turnover rate(4) 20.0% 32.4% 57.8% 80.3% 99.2% 66.9%
</TABLE>
(1) For the year ended December 31.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
GLOBAL SECURITIES
FUND
--------------------------------------------------------------------
Six Months
Ended
June 30, 1994 1993(2) 1992(2) 1991(2) 1990(1)
(Unaudited)
---------------- ------------ ---------- ------------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 16.30 $9.57 $10.38 $10.04 $10.00
Income (loss) from investment operations:
Net investment income .05 (.02) .07 .04 --
Net realized and unrealized gain (loss) on investments (.81) 6.75 (.80) .30 .04
---------------- ------------ ---------- ------------- -------------
Total income (loss) from investment operations (.76) 6.73 (.73) .34 .04
---------------- ------------ ---------- ------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (.04) -- (.04) -- --
Distributions from net realized gain on investments (.25) -- (.04) -- --
---------------- ------------ ---------- ------------- -------------
Total dividends and distributions to shareholders (.29) -- (.08) -- --
---------------- ------------ ---------- ------------- -------------
Net asset value, end of period $15.25 $16.30 $9.57 $10.38 $10.04
---------------- ------------ ---------- ------------- -------------
---------------- ------------ ---------- ------------- -------------
TOTAL RETURN, AT NET ASSET VALUE(3) (4.72)% 70.32% (7.11)% 3.39% .40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $194,317 $96,425 $13,537 $7,339 $ 432
Average net assets (in thousands) $162,931 $31,696 $11,181 $3,990 $ 263
Number of shares outstanding at end of period (in
thousands) 12,739 5,917 1,415 707 43
Ratios to average net assets:
Net investment income 1.17%(4) .72% 1.04% .75% .08%(4)
Expenses .89%(4) .92% 1.06% 1.32% 6.84%(4)
Portfolio turnover rate(5) 36.6% 65.1% 34.1% 29.5% 0.0%
</TABLE>
(1) For the period from November 12, 1990 (commencement of operations) to
December 31, 1990.
(2) For the year ended December 31.
(3) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(4) Annualized.
(5) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
See accompanying Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER
STRATEGIC BOND
FUND
----------------------------------
Six Months Ended
June 30, 1994 1993(1)
(Unaudited)
------------------- -------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $5.12 $5.00
Income (loss) from investment operations:
Net investment income .17 .10
Net realized and unrealized gain (loss) on investments (.34) .11
------------------- -------------
Total income (loss) from investment operations 4.95 5.21
------------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (.11) (.09)
Distributions from net realized gain on investments (.01) --
------------------- -------------
Total dividends and distributions to shareholders (.12) (.09)
------------------- -------------
Net asset value, end of period $4.83 $5.12
------------------- -------------
------------------- -------------
TOTAL RETURN, AT NET ASSET VALUE(2) (3.41)% 4.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $15,807 $9,887
Average net assets (in thousands) $13,599 $4,259
Number of shares outstanding at end of period (in thousands) 3,273 1,930
Ratios to average net assets:
Net investment income 7.80%(3) 5.67%(3)
Expenses 1.06%(3) .96%(3)
Portfolio turnover rate(4) 40.5% 10.9%
</TABLE>
(1) For the period from May 3, 1993 (commencement of operations) to December 31,
1993.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(4) 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.
See accompanying Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Oppenheimer Variable Account Funds
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Money Fund (OMF), Oppenheimer High Income Fund (OHIF), Oppenheimer
Bond Fund (OBF), Oppenheimer Capital Appreciation Fund (OCAP), Oppenheimer
Growth Fund (OGF), Oppenheimer Multiple Strategies Fund (OMSF), Oppenheimer
Global Securities Fund (OGSF) and Oppenheimer Strategic Bond Fund (OSBF)
(collectively, the Funds) are separate series of Oppenheimer Variable Account
Funds (the Trust), a diversified, open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Trust's
investment advisor is Oppenheimer Management Corporation (the Manager). The
following is a summary of significant accounting policies consistently followed
by the Funds.
INVESTMENT VALUATION. Portfolio securities of OMF are valued on the basis of
amortized cost, which approximates market value. Portfolio securities of OHIF,
OBF, OCAP, OGF, OMSF, OGSF and OSBF are valued at 4:00 p.m. (New York time) 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 asked price or the last
sale price on the prior trading day. Long-term debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Long-term debt
securities which cannot be valued by the approved portfolio pricing service are
valued by averaging the mean between the bid and asked prices obtained from two
active market makers in such securities. Short-term 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.
Securities for which market quotes are not readily available are valued under
procedures established by the Board of Trustees to determine fair value in good
faith. A call option is valued based upon the last sales 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 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 or asked price closest to the last
reported sale price is used. Forward foreign currency contracts are valued at
the forward rate on a daily basis.
SECURITY CREDIT RISK. OHIF invests in high yield securities, which may be
subject to a greater degree of credit risk, greater market fluctuations and risk
of loss of income and principal, and may be more sensitive to economic
conditions than lower yielding, higher rated fixed income securities. The Fund
may acquire securities in default, and is not obligated to dispose of securities
whose issuers subsequently default. At June 30, 1994, securities with an
aggregate market value of $6,442,910, representing 5.67% of the Fund's total
assets, were in default.
FOREIGN CURRENCY TRANSLATION. The accounting records of the Funds are maintained
in U.S. dollars. Prices of securities purchased by OHIF, OBF, OGF, OMSF, OGSF
and OSBF that are denominated in foreign currencies are translated into U.S.
dollars at the closing rates of exchange. Amounts related to the purchase and
sale of securities and investment income are translated at the rates of exchange
prevailing on the respective dates of such transactions.
Forward foreign currency exchange contracts are generally entered into as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. In addition, OHIF, OGSF and OSBF may enter into such contracts as a
hedge against changes in foreign currency exchange rates on portfolio positions.
A forward exchange contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. Risks may arise from the
potential inability of the counterparty to meet the terms of the contract and
from unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
OGF, OMSF and OGSF account for gains and losses on foreign currency transactions
with the transactions that gave rise to the exchange gain or loss. The net gain
or loss resulting from changes in foreign currency exchange rates is reported
separately in the Statement of Operations by OHIF, OBF and OSBF.
REPURCHASE AGREEMENTS. The Funds require 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. 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 Funds may be delayed or
limited.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
CALL OPTIONS WRITTEN. OHIF, OCAP, OGF, OMSF, OGSF and OSBF may write covered
call options. When an option is written by a Fund, the Fund receives a premium
and becomes obligated to sell the underlying security at a fixed price, upon
exercise of the option. In writing an option, the Fund bears the market risk of
an unfavorable change in the price of the security underlying the written
option. Exercise of an option written by the Fund could result in the Fund
selling a security at a price different from the current market value. All
securities covering call options written are held in escrow by the custodian
bank.
FEDERAL INCOME TAXES. The Trust intends for each Fund 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 tax provision is required.
EQUALIZATION. Prior to September 25, 1993, OHIF and OBF followed the accounting
practice of equalization, by which a portion of the proceeds from sales and
costs of redemptions of Fund shares equivalent on a per share basis to the
amount of undistributed net investment income were credited or charged to
undistributed income. The cumulative effect of the change in accounting practice
resulted in a reclassification for OHIF and OBF of $2,119,310 and $1,577,200,
respectively, from undistributed net investment income to paid-in capital.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders of
OHIF, OBF, OCAP, OGF, OMSF, OGSF and OSBF are recorded on the ex-dividend date.
OMF intends to declare dividends from net investment income each day the New
York Stock Exchange is open for business and pay such dividends monthly. To
effect its policy of maintaining a net asset value of $1.00 per share, OMF may
withhold dividends or make distributions of net realized gains.
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 by OHIF, OBF, OCAP, OGF,
OMSF, OGSF and OSBF is amortized over the life of the respective securities, in
accordance with federal income tax requirements. Realized gains and losses on
investments 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 on the ex-date.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
2. SHARES OF BENEFICIAL INTEREST
The Funds have authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
OPPENHEIMER MONEY FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 105,757,254 $ 105,757,254 102,985,240 $ 102,985,240
Dividends and distributions reinvested 1,410,396 1,410,396 1,805,107 1,805,107
Redeemed (71,575,110) (71,575,110) (101,836,198) (101,836,198)
------------ ------------- ------------ -------------
Net increase (decrease) 35,592,540 $ 35,592,540 2,954,149 $ 2,954,149
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
OPPENHEIMER HIGH INCOME FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 7,916,751 $ 60,787,462 10,942,819 $ 113,254,844
Dividends and distributions reinvested 422,415 4,483,976 743,446 7,814,552
Redeemed (6,219,419) (42,580,666) (7,432,492) (76,976,837)
------------ ------------- ------------ -------------
Net increase (decrease) 2,119,747 $ 22,690,772 4,253,773 $ 44,092,559
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
<TABLE>
<CAPTION>
OPPENHEIMER BOND FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 2,649,708 $ 30,366,170 4,694,025 $ 53,668,794
Dividends and distributions reinvested 228,979 2,571,572 518,084 5,957,407
Redeemed (1,523,662) (17,395,738) (1,375,924) (15,753,286)
------------ ------------- ------------ -------------
Net increase (decrease) 1,355,025 $ 15,542,004 3,836,185 $ 43,872,915
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
OPPENHEIMER CAPITAL APPRECIATION FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 4,459,425 $ 86,159,606 4,925,361 $ 134,864,285
Dividends and distributions reinvested 614,575 17,331,023 151,099 3,652,073
Redeemed (3,251,940) (52,395,618) (3,951,312) (106,719,894)
------------ ------------- ------------ -------------
Net increase (decrease) 1,822,060 $ 51,095,011 1,125,148 $ 31,796,464
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
OPPENHEIMER GROWTH FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 1,724,316 $ 30,210,759 3,164,464 $ 53,547,991
Dividends and distributions reinvested 36,305 644,411 66,987 1,107,299
Redeemed (1,481,633) (25,706,087) (2,180,502) (36,823,721)
------------ ------------- ------------ -------------
Net increase (decrease) 278,988 $ 5,149,083 1,050,949 $ 17,831,569
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
OPPENHEIMER MULTIPLE STRATEGIES FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 7,650,351 $ 56,023,848 6,332,739 $ 84,477,261
Dividends and distributions reinvested 481,181 6,380,588 644,161 8,601,104
Redeemed (4,594,735) (13,607,947) (1,742,975) (23,415,881)
------------ ------------- ------------ -------------
Net increase (decrease) 3,536,797 $ 48,796,489 5,233,925 $ 69,662,484
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
<TABLE>
<CAPTION>
OPPENHEIMER GLOBAL SECURITIES FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 12,346,274 $ 178,593,473 4,921,273 $ 68,947,505
Dividends and distributions reinvested 178,687 2,801,813 -- --
Redeemed (5,703,171) (68,109,763) (419,042) (5,789,067)
------------ ------------- ------------ -------------
Net increase (decrease) 6,821,790 $ 113,285,523 4,502,231 $ 63,158,438
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
OPPENHEIMER STRATEGIC BOND FUND
-----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1994 DECEMBER 31, 1993(1)
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Sold 1,890,040 $ 9,545,195 2,316,566 $ 11,749,598
30,366
Dividends and distributions reinvested 76,573 372,363 155,087
Redeemed (623,840) (3,118,256) (416,974) (2,133,050)
------------ ------------- ------------ -------------
Net increase (decrease) 1,342,773 $ 6,799,302 1,929,958 $ 9,771,635
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
1. For the period from May 3, 1993 (commencement of operations) to December 31,
1993.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS AND OPTIONS WRITTEN
At June 30, 1994, net unrealized appreciation or depreciation on investments and
options written consisted of the following:
<TABLE>
<CAPTION>
OPPENHEIMER
OPPENHEIMER OPPENHEIMER CAPITAL OPPENHEIMER
HIGH INCOME BOND APPRECIATION GROWTH
FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Gross appreciation $ 1,935,043 $ 1,452,063 $11,539,655 $ 8,967,753
Gross depreciation (3,978,902 ) (3,529,239 ) (12,666,944 ) (3,311,914)
------------ ------------ ------------ ------------
Net unrealized appreciation
(depreciation) $(2,043,859 ) $ 2,077,176 $(1,127,289 ) $ 5,655,839
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Purchases and sales of investment securities (excluding short-term securities) for the six months
ended June 30, 1994 were as follows:
Purchases $66,344,015 $29,414,186 $86,250,645 $13,580,746
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Sales $47,386,083 $15,363,874 $67,491,793 $ 7,973,959
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<CAPTION>
OPPENHEIMER OPPENHEIMER OPPENHEIMER
MULTIPLE GLOBAL STRATEGIC
STRATEGIES SECURITIES BOND
FUND FUND FUND
------------- ------------- ------------
<S> <C> <C> <C>
Gross appreciation $ 21,451,906 $ 13,005,691 $ 85,754
Gross depreciation (14,933,226) (14,074,157) (733,891 )
------------- ------------- ------------
Net unrealized appreciation
(depreciation) $ 6,518,680 $ (1,068,466) $ (648,137 )
------------- ------------- ------------
------------- ------------- ------------
Purchases and sales of investment securities (excluding short-term securities)
for the six months ended June 30, 1994 were as follows:
Purchases $ 88,101,954 $ 167,784,484 $14,544,566
------------- ------------- ------------
------------- ------------- ------------
Sales $ 51,131,521 $ 48,733,192 $ 5,449,287
------------- ------------- ------------
------------- ------------- ------------
</TABLE>
4. OPTION ACTIVITY
OMSF option activity for the six months ended June 30, 1994 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
----------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at December 31, 1993 2,385 $ 654,848
Options purchased 1,882 630,508
Options cancelled in closing
transactions (977) (213,576)
Options expired prior to exercise (1,017) (258,482)
Options exercised (975) (178,176)
--------- ---------
Options outstanding at June 30, 1994 1,298 $ 635,122
--------- ---------
--------- ---------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
OSBF option activity for the period ended June 30, 1994 was as follows:
<TABLE>
<CAPTION>
PUT OPTIONS
-----------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUM
---------- ---------
<S> <C> <C>
Options outstanding at December 31, 1993 -- $ --
Options purchased 3,340,000 2,020
Options cancelled in closing
transactions (3,000,000) (426)
Options expired prior to exercise -- --
Options exercised -- --
-----------------------
Options outstanding at June 30, 1994 340,000 $ 1,594
-----------------------
-----------------------
</TABLE>
<TABLE>
<CAPTION>
CALL OPTIONS
----------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at December 31, 1993 -- $ --
Options purchased 5,000 8,125
Options cancelled in closing
transactions (5,000) ( 8,125)
Options expired prior to exercise -- --
Options exercised -- --
--------- ---------
Options outstanding at June 30, 1994 -- $ --
--------- ---------
--------- ---------
</TABLE>
Premiums received on expired options resulted in a short-term capital gain of
$8,551.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
At June 30, 1994, outstanding forward foreign currency exchange contracts to
purchase and sell foreign currencies were as follows:
OPPENHEIMER GLOBAL SECURITIES FUND
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACT VALUATION AS OF APPRECIATION
CONTRACTS TO SELL DATE AMOUNT JUNE 30, 1994 (DEPRECIATION)
- ------------------------------------------------------ ---------- ----------- --------------- --------------
<S> <C> <C> <C> <C>
British Pound 7/25/94 $ 5,000,000 $ 4,998,112 $ 1,888
Deutsche Mark 7/25/94 $ 4,000,000 $ 4,000,734 $ (734)
Finnish Markka 7/25/94 $ 2,300,000 $ 2,296,418 $ 3,582
French Franc 7/25/94 $ 5,500,000 $ 5,483,543 $ 16,457
Italian Lira 7/25/94 $ 1,500,000 $ 1,491,645 $ 8,355
Nether Guilder 7/25/94 $ 6,000,000 $ 5,995,705 $ 4,295
Norwegian Krone 7/25/94 $ 3,000,000 $ 2,994,047 $ 5,953
Port Escudo 7/25/94 $ 1,400,000 $ 1,419,895 $(19,895)
Spanish Peseta 7/25/94 $ 2,500,000 $ 2,524,438 $(24,438)
Swedish Krona 7/25/94 $11,000,000 $10,975,550 $ 24,450
Swiss Franc 7/25/94 $ 2,800,000 $ 2,813,103 $(13,103)
----------- --------------- --------------
$45,000,000 $44,993,190 $ 6,810
----------- --------------- --------------
----------- --------------- --------------
</TABLE>
OPPENHEIMER STRATEGIC BOND FUND
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACT VALUATION AS OF APPRECIATION
CONTRACTS TO PURCHASE DATE AMOUNT JUNE 30, 1994 (DEPRECIATION)
- ----------------------------------------------------- ---------- ------------ --------------- --------------
<S> <C> <C> <C> <C>
Deutsche Mark 7/13/94 $ 186,461 $ 468,172 $ 194
------------ --------------- --------------
------------ --------------- --------------
CONTRACTS TO SELL
- ----------------------------------------------------
Spanish Peseta 7/22/94 $ 45,440,194 515,916 (10,319)
Italian Lira 7/22/94 $116,970,526 73,714 (152)
------------ --------------- --------------
$162,410,717 $ 589,630 (10,277)
------------ --------------- --------------
------------ --------------- --------------
</TABLE>
OPPENHEIMER HIGH INCOME FUND
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACT VALUATION AS OF APPRECIATION
CONTRACTS TO SELL DATE AMOUNT JUNE 30, 1994 (DEPRECIATION)
- ---------------------------------------------------------- ---------- -------- --------------- ------------
<S> <C> <C> <C> <C>
Deutsche Mark 7/08/94 $572,811 $ 601,676 $(28,865)
---------- -------- --------------- ------------
---------- -------- --------------- ------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Oppenheimer Variable Account Funds
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreements with the Trust. Except as stated below, the annual fees are
.50% on the first $250 million of aggregate Trust net assets, .45% on the next
$50 million, .40% on the next $100 million, .35% on the next $400 million and
.30% on net assets in excess of $800 million. OMF fees are reduced by .05% on
the first $250 million of Fund net assets, as well as on Fund net assets in
excess of $4 billion. OHIF pays an additional management fee of .15% of its net
assets annually. OGSF fees are .75% on the first $200 million of aggregate Trust
net assets with a reduction of .03% on each $200 million thereafter to $800
million, and .60% on net assets in excess of $800 million. OSBF fees are .65% of
net assets annually. Fees are allocated ratably to each Fund based on the
relative value of Fund net assets to total Trust net assets as of the close of
business each day. The Manager has agreed to reimburse OMF, OHIF, OBF, OCAP,
OGF, OMSF and OSBF if aggregate Fund expenses (with specified exceptions) exceed
2% of the first $10 million of average annual net assets, 1.50% of the next $20
million and 1% of average annual net assets in excess of $30 million. The
Manager and Monarch Life Insurance Company, Bankers Security Life Insurance
Society (Bankers), Confederation Life Insurance and Annuity Company and
Massachusetts Mutual Life Insurance Company have also voluntarily undertaken to
limit the expenses of OMF, OHIF, OBF, OCAP, OGF and OMSF to .75% of average
annual net assets, after any other reimbursement by the Manager. The
reimbursement is based on the proportionate number of shares in the accounts of
the respective insurance companies. The undertaking by Bankers extends to OMSF
only.
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Robert C. Doll, Jr., Vice President
Andrew J. Donohue, Vice President
George R. Evans, Vice President
David P. Negri, Vice President
Richard H. Rubinstein, Vice President
Arthur J. Zimmer, Vice President
Paul LaRocco, Assistant Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR
Oppenheimer Management Corporation
TRANSFER AGENT
Oppenheimer Shareholder Services
CUSTODIAN OF PORTFOLIO SECURITIES
The Bank of New York
INDEPENDENT AUDITORS
Deloitte & Touche
LEGAL COUNSEL
Myer, Swanson & Adams, P.C.
The financial statements included herein have been taken from the records of the
Funds without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Variable Account
Funds. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Variable Account Funds. For material information concerning the
Funds, see the Prospectus.
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