Oppenheimer Variable Account Funds
3410 South Galena Street
Denver, Colorado 80231
Dear MultiVest Plan Contract Owner:
We are pleased to provide for Confederation Life Insurance & Annuity Company
this annual report of Oppenheimer Variable Account Funds. On the following
pages, you'll find our current outlook and portfolio strategy for each of the
Funds.
We'd like to thank you for the trust you've placed in the OppenheimerFunds team
as manager of your Oppenheimer Variable Account Funds investment under the
MultiVest plan. We look forward to continuing to help you reach your investment
goals in the years to come.
Sincerely,
James C. Swain
Chairman--Oppenheimer Variable Account Funds
Jon S. Fossel
President--Oppenheimer Variable Account Funds
January 21, 1994
Oppenheimer Capital Appreciation Fund
During the past year, low interest rates in the U.S. supported a strong market
for small companies. A low interest rate environment encourages the expansion
of smaller companies because of the low cost of capital.
Given the positive overall market environment, our strategy is to seek well-
managed companies offering innovative products and services--a combination that
supports our expectation of stock price appreciation. In selecting individual
stocks, Fund managers search for excellent opportunities in different sectors.
The current balance of sector investments diversifies the portfolio and helps
reduce the Fund's overall volatility.
<PAGE>
Recent portfolio changes include a consolidation of healthcare holdings. After
taking profits in several drug and medical company stocks, the Fund now holds
a core position in companies that we believe offer cost-effective solutions to
healthcare problems and can succeed under anticipated versions of healthcare
reform legislation.
In the financial area, the Fund's managers made two new purchases: Mid Ocean,
a property and casualty reinsurer with experienced management, and Servicios,
a Mexican financing firm with an expanding business base.
Technology continues to be a major area of Fund investment. In networking, the
growing business for the linking of computers, we purchased Cabletron Systems
and Cheyenne Software, two firms with solid growth potential. The managers also
found exciting opportunities in the telecommunications area.
The Fund remains strongly invested in the specialty retailing industry, in which
small companies can expand very rapidly with innovative, customer-oriented
concepts. Recently, the managers increased the Fund's position in General
Nutrition, a retail chain offering vitamins and health food. We also bought
PetsMart, a growing pet accessories superstore operation, and O'Reilly
Automotive, a well-managed auto parts chain in the Midwest.
Going forward, your Fund's managers are optimistic that an improving economy
will support the prospects for stocks of small companies, and they will continue
to search for new opportunities that represent significant potential for growth.
Oppenheimer Growth Fund
With both the U.S. and global economies showing strong signs of improvement and
with inflation and interest rates holding at very low levels, we weren't
distracted by energy or utility stocks that might have given a short-lived boost
to performance during the year. Instead, we stuck to our basic discipline,
focusing on stocks with above-average long-term prospects.
During the period, we profitably sold several consumer and technology stocks
whose prices appeared to have peaked, reducing positions in Reebok, Dell
Computer and Philip Morris. We used the proceeds of these sales, in turn, to
invest in companies whose earnings momentum isn't, in our view, fully reflected
in their stock prices.
For example, the broad sell-off in financial services stocks, driven by what we
feel are unfounded fears over rising interest rates, created opportunities to
add to positions in financial companies positioned to benefit from what remains
a very low interest-rate environment, such as First Interstate Bancorp,
Countrywide Credit Industries and Green Tree Financial.
Likewise, the broad decline in healthcare stocks stemming from uncertainties
over the Clinton Administration's reform proposals allowed your managers to buy
shares of companies positioned to prosper under any reform scenario. Our largest
holdings in this sector include U.S. Healthcare, Cordis Corporation and United
Healthcare.
<PAGE>
Finally, with the improving global economy, we continued to look for values in
overseas markets, where declining interest rates and improving economies set the
stage for future gains. At December 31, our largest foreign stock holdings were
in French and British companies.
As we enter 1994, the improving U.S. and global economies, low interest and
inflation rates, and solid gains in corporate earnings, driven by rising sales
rather than cost-cutting, all suggest that the kinds of high-potential companies
in which the Fund invests should do well in the months ahead.
Oppenheimer Global Securities Fund
The international stock markets staged a powerful comeback in 1993 and
Oppenheimer Global Securities Fund participated in the gains. In fact, the Fund
was ranked #1 of all variable annuity funds tracked by Lipper Analytical
Services, Inc. for 1993.*
We expect the factors behind the global-market gains--a changing tax and
regulatory environment in the U.S. and low interest rates and improving
economies abroad--to continue into 1994 and beyond. We believe the key to
performance going forward is careful, stock-by-stock evaluation of investment
opportunities.
Portfolio changes during the year were aimed at taking advantage of the most
attractive opportunities worldwide. For example, we shifted a significant
portion of the Fund's assets into Asia and Latin America, where both business
and consumer markets are developing at a rapid and, in our view, sustainable
pace. Investments in these emerging markets now account for approximately 40%
of the Fund's investments.
A second shift involved the Fund's sector distribution. Fund managers shifted
assets into what they believe to be promising areas, such as:
o Capital market development--Events such as the fall of the Iron Curtain
and the awakening of China and Latin America create a need for capital
to support free enterprise development across formerly closed borders.
We believe this need should fuel the growth of banks and financial
services in emerging markets, as well as financial institutions in
developed countries.
o Emerging consumer markets--Populations of emerging economies in areas
such as the Far East and Latin America are experiencing substantial
growth of income. As their standard of living rises, these people will
create more demand for consumer products. The Fund is investing in
companies like Philips, CIADEA and Sears de Mexico, which should
benefit from these powerful trends.
*Source: Lipper Analytical Services, Inc., an independent mutual fund monitoring
service. The Fund ranked 1 out of 530 variable annuity/underlying funds for the
1-year period ended 12/31/93. Ranking is based on changes in net asset value
with dividends and capital gains reinvested, but without considering charges or
fees associated with MultiVest Plan.
o Telecommunications--We've taken major positions in Europe's
undervalued--and fast-growing--telephone companies, SIP and Telefonica
de Espana.
<PAGE>
o Energy logistics--Efficient energy production and transportation
operations are expected to benefit as petrochemicals continue to be
integral to world productivity. Reflecting this, we've invested in YPF
Sociedad, Argentina's largest integrated oil company.
Going forward, we believe the Fund is positioned to take full advantage of the
anticipated pickup in global markets.
Oppenheimer Multiple Strategies Fund
As in the past, the key to Oppenheimer Multiple Strategies Fund's performance
was the ability to allocate assets among stocks, government securities and
corporate bonds, both domestically and internationally. This investment
diversification was particularly important in 1993's fourth quarter, as a
strengthening economy gave rise to short-lived concerns about possible increases
in inflation and interest rates. While those concerns have since subsided with
the realization that inflation remains well under control, they did lead to a
modest increase in interest rate levels in November.
The Fund's fixed income portfolio, which accounted for approximately 41% of the
Fund's total portfolio as of December 31, 1993, generated attractive returns
throughout the period, despite those slightly higher rates, as a result of our
holdings of both high-yield corporate issues and foreign bonds, notably from
Canadian, Australian and Latin American issuers. These two sectors benefitted
from the improving global economy, and both are less sensitive to changes in
U.S. interest rates than other types of bonds.
On the equity side, we realigned the Fund's healthcare holdings significantly,
focusing on issues that should contribute to the Fund's performance, such as
companies with innovative delivery systems (notably HMOs), important new
products or attractive dividend yields.
We also increased our holdings of technology stocks, where innovative companies
are leading the way to major gains in business productivity. In addition to
traditional technology investments, we also found attractive opportunities in
interactive technologies, adding to our position in AT&T and initiating a
position in NEXTEL, companies in the process of creating powerful interactive
communications groups.
Finally, we continued to build the Fund's international position, both to
control risk through diversification and to capitalize on the prospects for
strong economic growth offshore. While most of our holdings are in Europe,
where economies are poised for recovery, we recently took advantage of
opportunities in the Pacific Rim.
Oppenheimer High Income Fund
High yield, lower-rated bonds continued to be the best performing sector of the
fixed-income market, with gains in bond prices more than offsetting modest
declines in yields as interest rates moved generally lower during the period.
The strengthening of the U.S. economy and continued low inflation and interest
rate levels played a significant role in that performance. The managers
continued to focus on value investing--the selection of individual bonds whose
yields and prices seem especially attractive when compared with other bonds in
the market.
<PAGE>
During the period, many high yield bond issuers continued to take advantage of
the opportunity to call outstanding bonds and replace them with lower-yielding
issues. The Fund's managers used the bond-call proceeds to take advantage of
many emerging investment opportunities in an effort to further diversify the
Fund's portfolio, which can help to reduce risk.
The Fund continued to focus on bonds issued by companies positioned to perform
well as the economy improves. For example, we profitably sold several broadcast
communications and media issues whose prices appeared to have peaked. We used
the proceeds to buy bonds of cyclical companies in the automotive, paper and
metals industries which should benefit from stronger U.S. economic growth.
These companies will also benefit once the recovery takes hold in Europe and
Japan.
Looking ahead, while we aren't expecting interest rates to rise significantly
in the months ahead, declines appear to be behind us, and the Fund should
continue to provide an attractive high current yield. At the same time, the
economy is strengthening and corporations continue to enhance their balance
sheets, making high yield issues extremely attractive.
Oppenheimer Strategic Bond Fund
The Fund seeks high current income from a portfolio of U.S. government
securities, higher-yielding, lower-rated corporate bonds and foreign fixed
income securities. The strategic investing approach has enabled the Fund's
managers to seek high yields in different economic environments, by shifting
assets among three fixed income sectors. The three sectors tend to react
differently to economic events, so that weak performance in one sector is often
offset by strong performance in another.
As U.S. interest rates continued to decline throughout 1993, economic growth
slowly accelerated. Many economies overseas also appear poised to rebound from
recession, and in Europe, there is a strong likelihood that interest rates will
continue to fall, causing additional price appreciation in the Fund's bond
investments. In this low-interest-rate environment, the Fund's managers continue
to emphasize corporate bonds and foreign fixed income securities more heavily
than U.S. government securities.
In addition to offering attractive yields, many of the high yield corporate
bonds in the portfolio have appreciated in price as the U.S. economic recovery
has helped corporations increase profits and strengthen balance sheets. In
particular, as the U.S. recovery has strengthened, the Fund has shifted its
emphasis from broadcast and media companies to companies in more cyclical
industries, such as building materials.
We continue to expand the Fund's diversification in foreign markets,
particularly in emerging markets where growth rates, in many cases, are higher
than in the U.S. Our holdings are distributed across three broad regions--
Europe; the "Dollar bloc" countries of Australia, Canada and New Zealand; and
emerging markets including Latin America, Indonesia and Eastern Europe. We are
maintaining a relatively short average maturity in these investments to help
guard against the risks of arise in interest rates, which would cause the value
of bond investments to fall.
<PAGE>
We took advantage of the rise in price of long-term U.S. Treasuries and sold a
portion of the Fund's investments in these securities. This strategy reduced the
average maturity of the Fund's U.S. government investments, helping to limit the
risks associated with a rise in interest rates.
We will continue to monitor market conditions closely to seek out the best fixed
income opportunities for the Fund worldwide.
Oppenheimer Bond Fund
Given the recent economic environment, marked by slow growth and low inflation
and interest rates, we continued to emphasize corporate bonds during the past
year. Over that period, as the economy began to improve, many corporate bond
issuers experienced an improvement in earnings growth and cash flow which, in
turn, helped improve overall credit ratings. The Fund's corporate sector
continues to be diversified among a variety of industries, especially focusing
on areas which are expected to experience high growth rates, such as
telecommunications, or are undervalued, such as oil and gas companies.
At the end of the third quarter of last year, we took profits on some of the
Fund's long-term U.S. Treasury securities and purchased intermediate-term
securities to position the Fund for a potential increase in interest rates. As
we expect a further slight increase in rates in 1994 as the economy expands, we
anticipate keeping the U.S. Treasury exposure shorter than it was for most of
1993.
The Fund's mortgage sector continued to be affected by low interest rates which
encourage homeowners to refinance their mortgages. As a result, the Fund's
position in mortgage-related securities was decreased during the year, as
prepayments of principal on mortgages accelerated beyond expectation.
Based on the outlook for a strong U.S. dollar, the Fund has kept its foreign
currency exposure relatively low. However, there are very attractive
opportunities in foreign bond markets and the portfolio has added investments in
dollar-denominated investment-grade bonds of Latin American countries, such as
Colombia and Chile, as well as other emerging markets, such as Indonesia and the
Czech Republic.
Going forward, we continue to see especially attractive opportunities in the
corporate and foreign sectors of the investment grade bond market.
Oppenheimer Money Fund
During the past year, the market for money market securities was characterized
by stable short-term interest rates. With the economy sluggish throughout most
of the year, interest rates remained low, which made it attractive for companies
to issue long-term debt. Therefore, the supply of short-term money market
securities was lower than usual. Inflation remained under control which led to
a neutral stance by the Federal Reserve regarding interest rate adjustments.
The net result is that current short-term interest rates are at essentially the
same level as at the beginning of 1993.
<PAGE>
The Fund continued to invest all of its assets in Tier 1 securities, which are
the highest quality money market instruments. The Fund's portfolio was
concentrated in the corporate sector of the market to gain additional yield.
Within this area, a portion of holdings were invested in floating rate
instruments, which have yields tied to various indices, such as the prime rate
or U.S. Treasury bill rate. The Fund received higher yields from these
securities when short-term interest rates increased in October.
In selecting money market securities, the Fund's manager diversifies the
portfolio's holdings by market sector and issuer. Each security is carefully
analyzed to ensure that it meets the high quality standards of the Fund and can
provide a competitive return.
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds- Money Fund
<TABLE>
<CAPTION>
Face Market
Amount Value-Note 1
<C> <S> <C>
Repurchase Agreements -11.6%
$ 7,100,000 Repurchase agreement with J.P Morgan Securities, Inc., 3.23%,
dated 12/31/93 and maturing 1/3/94, collateralized by
Federal National Mortgage Assn. Participation Certificates,
5.50%, 12/1/08, with a value of $7,277,496 (Cost $7,100,000)....... $ 7,100,000
Direct Bank Obligations and Letters of Credit -7.3%
Abbey National PLC, guaranteeing commercial paper of:
2,500,000 Abbey National North America Corp., 3.28%, 3/18/94............. 2,482,952
ABN Amro Bank NV, guaranteeing commercial paper of:
2,000,000 ABN AMRO Bank Canada, 3.31%, 3/7/94............................ 1,988,228
Total Direct Bank Obligations (Cost $4,471,180)...................... 4,471,180
Short-Term Notes -71.4%
Asset-Backed -10.6%
2,000,000 Beta Finance, Inc., 3.27%, 2/16/94(3)................................ 1,991,643
2,000,000 Corporate Asset Funding Co., Inc., 3.15%, 1/18/94.................... 1,997,025
2,500,000 CXC, Inc., 3.40%, 1/21/94............................................ 2,495,278
6,483,946
Broker/Dealers -19.2%
2,500,000 Bear Stearns Cos., Inc., 3.375%, 1/3/94(1)........................... 2,500,000
2,500,000 Goldman Sachs Group L.P., 3.35%, 2/1/94.............................. 2,492,896
700,000 Lehman Brothers Holdings, Inc., 3.375%, 1/3/94(1).................... 700,000
1,400,000 Merrill Lynch & Co., Inc., 3.045%, 1/3/94(1)......................... 1,399,936
2,635,000 Morgan Stanley Group, Inc., 2.82%, 1/3/94(1)......................... 2,635,000
2,000,000 Shearson Lehman Brothers Holdings, Inc., 3.58%, 1/7/94(1)............ 2,000,000
11,727,832
Commercial Finance -5.9%
1,000,000 CIT Group Holdings, Inc., 3.59%, 5/9/94(2)........................... 1,000,000
2,600,000 Heller Financial, Inc., 3.32%, 1/4/94(1)............................. 2,600,000
3,600,000
Consumer Non-Cyclicals -3.3%
2,000,000 American Brands, Inc., 3.34%, 1/21/94................................ 1,996,289
Diversified Finance -7.4%
2,000,000 Ford Motor Credit Corp., 9.40%-9.45%, 5/20/94-5/26/94................ 2,043,963
2,500,000 General Electric Capital Corp., 3.35%, 1/24/94....................... 2,494,649
4,538,612
Financial Services: Miscellaneous -8.9%
3,000,000 Countrywide Funding Corp., 3.32%-3.40%, 1/13/94-3/28/94.............. 2,983,005
2,500,000 Fleet Mortgage Group, Inc., 3.45%, 1/13/94........................... 2,497,125
5,480,130
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds- Money Fund
Face Market
Amount Value-Note 1
Industrial -4.1%
$ 2,500,000 BICC Cables Corp., guaranteed by BICC PLC, 3.55%, 1/4/94............. $ 2,499,260
Municipal -4.1%
2,500,000 North Slope Borough Alaska, 4.35%, 6/30/94........................... 2,500,000
Oil: Integrated International -3.2%
2,000,000 Petrofina (DE), Inc., 3.37%, 4/18/94................................. 1,979,968
Telecommunications -4.7%
2,900,000 NYNEX Corp., 3.40%, 3/28/94 ......................................... 2,876,445
Total Short-Term Notes (Cost $43,682,482)............................ 43,682,482
Short - Term U.S. Government Obligations -9.5%
5,453,090 Small Business Administration, 6.875%-7.875%, 1/1/94(1)
(Cost $5,815,623) ................................................. 5,815,623
Total Investments, at Value (Cost $61,069,285)............................... 99.8 61,069,285
Other Assets Net of Liabilities.............................................. .2 152,334
Net Assets...................................................................100.0 $ 61,221,619
<FN>
Short-term notes and direct bank obligations 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 December 31, 1993.
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 security was acquired
on August 19, 1993, is carried at amortized cost, and amounts to
$1,991,643, or 3.25% of the Fund's net assets.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds-High Income Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements--6.8% Value-Note 1
<C> <S> <C>
$ 6,300,000 Repurchase agreement with J.P. Morgan
Securities, Inc., 3.15%, dated 12/31/93 and
maturing 1/3/94, collateralized by U.S.
Treasury Bills, 2.93%, 2/3/94, with a value
of $6,437,138 (Cost $6,300,000).................................................................... $ 6,300,000
Short-Term Corporate Bonds and Notes--1.0%
1,000,000 (1) Citibank CD, 17.30%, 7/29/94 (4) (Cost $1,004,761)................................................... 947,137
Long-Term Government Obligations--5.5%
Argentina (Republic of):
470,000 Bonds, Bonos del Tesoro, Series II, 3.50%, 9/1/97 (3).............................................. 387,762
1,239,875 (1) Bonds, Bonos de Consolidacion de Deudas, Series I, 4.25%,
4/1/01 (3) (5)................................................................................... 983,769
1,000,000 Past Due Interest Bonds, 4.1875%, 3/31/05 (3)...................................................... 878,750
2,000,000 (1) Bank Negara Indonesia Bonds, 0%, 5/12/95 ............................................................ 778,117
1,000,000 Bariven SA Bonds, 10.75%, 7/8/97 (6)................................................................. 608,984
150,000,000 (1) Spain (Kingdom of) Bonds, 10.25%, 11/30/98 (6)....................................................... 1,156,550
500,000 Venezuela (Republic of) Front-Loaded Interest Reduction
Bonds, Series B, 6%, 3/31/07 (3)................................................................... 382,500
Total Long-Term Government Obligations
(Cost $4,860,148) ................................................................................. 5,176,432
Long-Term Corporate Bonds and Notes--76.2%
Aerospace/Defense --2.0%
1,750,000 GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98........................................................ 1,345,313
500,000 Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03.......................................................... 505,000
1,850,313
Airlines --1.6%
825,000 AMR Corp., 10% Debs., 4/15/21........................................................................ 952,092
500,000 Trism, Inc., 10.75% Gtd. Sr. Sub. Nts., 12/15/00.................................................... 515,000
1,467,092
Broadcast Media/Cable TV--18.8%
750,000 Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series A,
10/1/03 (7)....................................................................................... 783,750
1,000,000 Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 ............................. 1,020,000
Cablevision Systems Corp.:
500,000 9.875% Sr. Sub. Debs., 2/15/13..................................................................... 583,750
500,000 9.875% Sr. Sub. Debs., 4/1/23...................................................................... 585,000
500,000 Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01.................................................. 497,500
500,000 Continental Broadcasting Ltd./Continental Broadcasting
Capital Corp., 10.625% Sr. Sub. Nts., 7/1/03....................................................... 513,750
Continental Cablevision, Inc.:
1,000,000 11% Sr. Sub. Debs., 6/1/07 ........................................................................ 1,177,500
700,000 9% Sr. Debs., 9/1/08 .............................................................................. 780,500
500,000 9.50% Sr. Debs., 8/1/13 ........................................................................... 560,000
500,000 General Media, Inc., 10.625% Sr. Sec. Nts., 12/31/00 (7)............................................. 512,500
1,000,000 Helicon Group LP/Helicon Capital Corp., 0%/9.50% Sr.
Sec. Nts., 11/1/03 (2) (7)......................................................................... 977,500
2,000,000 International CableTel, Inc., 0%/10.875% Sr. Def. Cpn.
Nts., 10/15/03 (2)................................................................................. 1,280,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
Face Market
Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1
Broadcast Media/Cable TV (Continued)
$ 500,000 Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03....................................................$ 531,250
1,000,000 New City Communications, Inc., 11.375% Sr. Sub. Nts., 11/1/03 .... 1,035,000
500,000 Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03............................................ 516,250
Panamsat LP/Panamsat Capital Corp.:
500,000 9.75% Sr. Sec. Nts., 8/1/00........................................................................ 531,250
2,500,000 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (2)......................................................... 1,675,000
SCI Television, Inc.:
486,000 7.50% Sr. Sec. Nts., Series 1, 6/30/98............................................................. 473,546
750,000 11% Sr. Sec. Nts., 6/30/05......................................................................... 780,000
500,000 SFX Broadcasting, Inc., 11.375% Sr. Sub. Nts., 10/1/00............................................... 526,250
500,000 Sinclair Broadcasting Group, 10% Sr. Sub. Nts., 12/15/03............................................. 513,750
700,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07........................................................ 854,000
700,000 Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 1/15/01 ..................................... 780,500
17,488,546
Building Materials --2.4%
1,000,000 Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03.......................................................... 1,037,500
1,000,000 Pt Inti Indorayon Utama, 9.125% Sr. Nts., 10/15/00 .................................................. 1,003,750
500,000 Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02* (7)........................................... 190,000
2,231,250
Chemicals/Plastics --2.8%
Harris Chemical North America, Inc.:
1,000,000 0%/10.25% Gtd. Sr. Sec. Disc. Nts., 7/15/01 (2).................................................... 858,750
750,000 10.75% Sr. Gtd. Sub. Nts., 10/15/03................................................................ 793,125
1,600,000 Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05 (2)..................................... 936,000
2,587,875
Consumer Goods: Manufacturing--3.7%
850,000 Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97......................................................... 871,250
2,000,000 Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., Series B, 5/27/98 ................................... 1,295,000
1,000,000 Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 .................................... 1,120,000
350,000 Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., Series B, 3/15/98.................................... 180,250
3,466,500
Containers: Paper -- 0.3%
300,000 Equitable Bag, Inc., 12.375% Sr. Nts., 8/15/02....................................................... 261,000
Financial/Insurance -- 8.0%
750,000 Banco do Nordeste do Brasil, 10.375% Sr. Debs, 11/6/95 (7)........................................... 761,250
1,000,000 Banco Nacional de Mexico SA, 7% Exch. Sub. Debs.,
12/15/99 (7)....................................................................................... 1,245,000
500,000 Blue Bell Funding, Inc., 11.85% Extd. Sec. Nts., 5/1/99 (3).......................................... 552,500
1,600,000 Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 (7) ................................... 1,672,000
497,387 ECM Fund L.P.I., 14% Sub. Nts., 6/10/02 (7).......................................................... 557,819
493,943 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (7)...................................................... 602,610
1,206,215 Residential Funding Corp., 7.97% Real Estate Trust
Pass-Through Ctfs., Series 1993-J2, Cl. B 1, 6/15/23 (7)............... 1,032,068
1,000,000 Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (7)..................................... 1,031,250
7,454,497
Food and Restaurants --2.6%
700,000 Di Giorgio Corp., 12% Sr. Nts., 2/15/03.............................................................. 761,250
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
Face Market
Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1
Food and Restaurants (Continued)
Restaurant Enterprises Group, Inc.:
$ 650,000 12.25% Sr. Sub. Nts., 12/15/96*....................................................................$ 640,250
1,500,000 12.75% Sub. Nts., 12/15/98*........................................................................ 990,000
2,391,500
Gaming/Hotels --2.0%
500,000 Casino America, Inc., Units.......................................................................... 517,500
500,000 Santa Fe Hotel, Inc., Units.......................................................................... 482,500
875,000 Treasure Bay Gaming & Resorts, Inc., Units (7)....................................................... 888,125
1,888,125
Healthcare/Medical Products--2.4%
500,000 Abbey Healthcare Group, Inc., 9.50% Sr. Sub. Nts., 11/1/02........................................... 513,125
1,000,000 Alco Health Distribution Corp., 11.25% Sr. Debs., 7/15/05 (5)........................................ 1,002,813
700,000 Eye Care Centers of America, Inc., Units (7)......................................................... 717,500
2,233,438
Home Building/Development-- 3.0%
750,000 Dal-Tile International, Inc., 0% Sr. Sec. Nts., 7/15/98.............................................. 453,750
1,000,000 NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03................................................................ 1,057,500
640,000 Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01............................................... 736,000
Trizec Corp. Ltd.:
500,000 (1) 11.125% Sr. Debs., 6/18/96* (6).................................................................... 272,847
500,000 (1) 10.25% Sr. Debs., 6/22/99* (6)..................................................................... 276,624
2,796,721
Information Technology-- 0.6%
500,000 Dell Computer Corp., 11% Sr. Nts., 8/15/00 (7)....................................................... 526,250
Leisure/Entertainment -- 0.6%
521,305 Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 6/30/02 ..................................... 570,829
Manufacturing: Diversified--2.1%
500,000 Collins & Aikman Group, Inc., 11.875% Sr. Sub. Debs., 6/1/01 ........................................ 515,000
400,000 Foamex LP/Foamex Capital Corp., 11.25% Sr. Nts., 10/1/02 ............................................ 438,000
1,000,000 Itel Corp., 13% Sr. Sub. Nts., 1/15/99............................................................... 1,043,750
1,996,750
Metals/Mining -- 3.5%
1,000,000 Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03.......................................... 1,072,500
500,000 Jorgensen (Earle M.) Co., 10.75% Sr. Nts., 3/1/00.................................................... 536,875
500,000 Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02 (7)................................................. 515,000
Stelco, Inc.:
500,000 (1) 10.875% Debs., 9/15/94 (6)......................................................................... 378,588
500,000 (1) 9.75% Debs., 4/1/95 (6)............................................................................ 374,811
500,000 (1) 10.40% Debs., 11/30/09 (6) ........................................................................ 369,147
3,246,921
Oil and Gas: Equipment and Services -- 0.6%
500,000 OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02................................... 582,500
Oil and Gas: Exploration and Production -- 4.7%
350,000 (1) BP America, Inc., 10.875% Nts., 8/1/01 (6)........................................................... 315,578
Maxus Energy Corp.:
1,000,000 8.50% Debs., 4/1/08................................................................................ 950,000
800,000 11.50% Debs., 11/15/15............................................................................. 844,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
Face Market
Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1
Oil and Gas: Exploration and Production (Continued)
Mesa Capital Corp.:
$ 1,000 0%/12.75% Disc. Nts., 6/30/96 (2)..................................................................$ 798
75,000 0%/12.75% Cv. Disc. Nts., 6/30/98 (2).............................................................. 107,063
957,000 0%/12.75% Sec. Disc. Nts., 6/30/98 (2)............................................................. 813,450
Presidio Oil Co.:
700,000 13.25% Sr. Sub. Gas Indexed Nts., 2/15/99 (3) (7).................................................. 742,000
525,000 11.50% Sr. Sec. Nts., Series A, 9/15/00............................................................ 552,563
4,325,452
Publishing --2.3%
1,700,000 Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs.,
Series B, 3/1/05 (2)............................................................................... 943,500
1,750,000 Marvel (Parent) Holdings, Inc., 0% Sr. Sec. Disc. Nts., 4/15/98...................................... 1,150,625
2,094,125
Railroads/Equipment -- 0.6%
500,000 Southern Pacific Transportation Co., 10.50% Sr. Sec. Nts.,
Series B, 7/1/99 .................................................................................. 555,625
Retail: Food and Drug--1.6%
500,000 Duane Reade, 12% Sr. Nts., Series B, 9/15/02......................................................... 542,500
1,000,000 Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 ........................................ 985,000
1,527,500
Retail: Specialty --3.1%
500,000 AnnTaylor, Inc., 0%/14.375% Sr. Sub. Disc. Nts., 7/15/99 (2)......................................... 535,000
250,000 Comtroladora Commercial Mexicano SA, 8.75%
Gtd. Nts., 4/21/98 (7)............................................................................. 262,188
1,000,000 Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B, 12/6/00 (7) ......................................... 1,065,000
500,000 Musicland Group, Inc. (The), 9% Sr. Sub. Nts., 6/15/03............................................... 509,375
500,000 Zale Delaware Corp., 11% Sr. Sec. Nts., 6/1/00....................................................... 517,500
2,889,063
Services --1.0%
1,000,000 Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts.,
11/1/03 (7)......................................................................................... 920,000
Telecommunications --2.0%
2,000,000 Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (2)............................................ 1,360,000
650,000 Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (2) (7).................................................... 471,250
1,831,250
Textiles/Apparel --0.0%
115,000 Farley, Inc., 0% Sub. Debs., 12/30/12................................................................ 12,650
Transportation--3.4%
Sea Containers Ltd.:
250,000 9.50% Sr. Nts., 7/1/03 ............................................................................ 251,563
500,000 12.50% Sr. Sub. Debs., Series A, 12/1/04........................................................... 565,625
350,000 12.50% Sr. Sub. Debs., Series B, 12/1/04........................................................... 386,750
1,500,000 Tiphook Financial Corp., 8% Gtd. Nts., 3/15/00....................................................... 1,230,000
1,500,000 Transtar Holdings LP, 0%/13.375% Sr. Disc. Nts.,
Series A, 12/15/08 (2)............................................................................. 746,250
3,180,188
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
Face Market
Amount Long-Term Corporate Bonds and Notes (Continued) Value-Note 1
Utilities --0.5%
$ 500,000 Subic Power Corp., 9.50% Debs., 12/28/08 (7).........................................................$ 510,000
Total Long-Term Corporate Bonds and Notes
(Cost $67,518,869)................................................................................. 70,885,960
Derivative Securities --0.6%
Lehman Brothers Holdings, Inc., 3.20% S & P 500 Index-Linked
500,000 Nts., 2/9/94 (7) (Cost $625,000)................................................................... 542,900
Municipal Bonds and Notes--2.5%
975,000 Pinole, California Redevelopment Agency Tax Allocation
Taxable Bonds, Pinole Vista Redevelopment, Series B,
7.65%, 8/1/07...................................................................................... 1,040,368
500,000 Port of Portland, Oregon Taxable Special Obligation
Revenue Bonds, PAMCO Project, 9.20%, 5/15/22....................................................... 549,472
12,500,000 San Joaquin Hills, California Transportation Corridor Agency
Toll Road Capital Appreciation Revenue Bonds, Jr. Lien,
0%, 1/1/28......................................................................................... 754,312
Total Municipal Bonds and Notes (Cost $2,086,187).................................................... 2,344,152
Shares Common Stocks --3.5%
46,220 Berg Electronics Holdings Corp.* (7)................................................................. 73,952
150 ECM Fund L.P.I. (7) ................................................................................ 150,000
2,000 Finlay Enterprises, Inc., CI. A*..................................................................... 30,000
10,355 Gillett Holdings, Inc., Cl. 1* (7)................................................................... 225,221
300 Host Marriott Corp. ................................................................................. 2,738
19,212 Insilco Corp.*....................................................................................... 259,362
67,142 Leaseway Transportation Corp.*....................................................................... 1,141,409
8,400 LFC Holding Corp.*................................................................................... 140,700
300 Marriott International, Inc. ........................................................................ 8,700
45,360 Petrolane, Inc., Cl. B .............................................................................. 459,270
4,964 SCI Television, Inc.*................................................................................ 53,053
5,567 USG Corp.*........................................................................................... 162,835
56,802 Zale Corp. .......................................................................................... 525,419
Total Common Stocks (Cost $2,750,626)................................................................ 3,232,659
Preferred Stocks --3.8%
10,000 AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A (7)............................................ 525,000
10,429 Berg Electronics Holdings Corp., $3.4687 Exch., Series D*............................................ 273,761
3,500 Dell Computer Corp., 7% Cv.(7)....................................................................... 379,750
20,000 Glendale Federal Bank, $2.1875 Cv., Series E......................................................... 510,000
5,973 K-III Communications Corp., $11.625 Exch., Series B (5).............................................. 610,728
10,000 Navistar International Corp, $6.00 Cv., Series G..................................................... 535,000
10,000 Offshore Pipelines, Inc., $2.25 Cum. Cv. Exch. ...................................................... 402,500
50,000 Trizec Ltd., Sr. Cl. B, Series 3*.................................................................... 64,199
5,000 Unisys Corp., $3.75 Cv., Series A.................................................................... 241,875
Total Preferred Stocks (Cost $3,404,880)............................................................. 3,542,813
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
Market
Units Rights, Warrants and Certificates -- 0.9% Value-Note 1
12,400 Ames Department Stores, Inc., Excess Cash Flow Payments Ctfs. .......................................$ 124
39,658 Ames Department Stores, Inc., Litigation Trust Units ................................................ 397
4,699 Digicon, Inc. Wts., Exp. 7/96........................................................................ 1,762
71,950 Gaylord Container Corp. Wts., Exp. 7/96.............................................................. 260,819
500 General Media, Inc. Wts., Exp. 12/00 (7)............................................................. 8,000
1,905 Hollywood Casino Corp. Wts., Exp. 4/98............................................................... 403,809
28,000 Protection One, Inc. Wts., Exp. 11/03 (7)............................................................ 89,880
2,599 Purity Supreme, Inc. Wts., Exp. 8/97 (7)............................................................. 52
50 Santa Fe Hotel, Inc. Wts., Exp. 12/96................................................................ 35,375
400 Southland Corp. Wts., Exp. 3/96...................................................................... 2,000
5,000 Triangle Wire & Cable, Inc. Wts., Exp. 1/98 (7)...................................................... 50
6,000 UGI Corp. Wts., Exp 3/98 ............................................................................ 10,200
Total Rights, Warrants and Certificates (Cost $313,508).............................................. 812,468
Total Investments, at Value (Cost $88,863,979)......................................................... 100.8% 93,784,521
Liabilities in Excess of Other Assets.................................................................. (.8) (773,188)
Net Assets............................................................................................. 100.0% $ 93,011,333
<FN>
* Non-income producing security.
1. Face amount is reported in foreign currency.
2. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date.
3. Represents the current interest rate for a variable rate security.
4. Indexed instrument for which the principal amount due at maturity is affected by the relative value of
a foreign security.
5. Interest or dividend is paid in kind.
6. Securities with an aggregate market value of $3,753,129 are segregated to collateralize outstanding
forward currency exchange contracts. See Note 5 of Notes to Financial Statements.
7. 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
$2,731,042, or 2.94% of the Fund's net assets, at December 31, 1993.
</TABLE>
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit December 31, 1993
<S> <C> <C> <C>
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts.,
Series A, 10/1/03(8)....................................................... 10/1/93 $ 100.00 $ 104.50
AMR Corp., $3.00 Cum. Cv. Depositary Shares, Series A
Preferred Stock(8)......................................................... 12/2/93 $ 52.88 $ 52.50
Banco do Nordeste do Brasil, 10.375% Sr. Debs., 11/6/95(8)................... 4/26/93 $ 99.80 $ 101.50
Banco Nacional de Mexico SA, 7% Exch. Sub. Debs., 12/15/99(8)... 12/1/92-5/24/93 $ 102.40 $ 124.50
Berg Electronics Holdings Corp. Common Stock(8).............................. 4/28/93-8/11/93 $ 11.90 $ 1.60
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03(8)............. 10/5/93-12/1/93 $ 101.34 $ 104.50
Comtroladora Commercial Mexicano SA, 8.75% Gtd. Nts.,
4/21/98(8)................................................................. 4/2/93 $ 99.34 $ 104.88
Dell Computer Corp., 7% Cv. Preferred Stock (8).............................. 8/19/93 $ 100.00 $ 108.50
Dell Computer Corp., 11% Sr. Nts., 8/15/00(8)................................ 10/27/93 $ 101.00 $ 105.25
ECM Fund L.P.I. Common Stock................................................. 4/14/92 $1,000.00 $1,000.00
ECM Fund L.P.I., 14% Sub. Nts., 6/10/02...................................... 4/14/92 $ 100.00 $ 112.15
</TABLE>
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-High Income Fund
<TABLE>
<CAPTION>
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit December 31, 1993
<S> <C> <C> <C>
Eye Care Centers of America, Inc., Units(8).................................. 9/28/93 $ 100.00 $ 102.50
General Media, Inc., 10.625% Sr. Sec Nts., 12/31/00(8)....................... 12/14/93 $ 97.39 $ 102.50
General Media, Inc. Wts., Exp. 12/00(8)...................................... 12/14/93 $ .01 $ 16.00
Gillett Holdings, Inc., Cl. 1 Common Stock................................... 12/1/92 $ 10.50 $ 21.75
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10(8)............................... 1/29/93 $ 102.40 $ 122.00
Helicon Group LP/ Helicon Capital Corp., 0%/9.50% Sr.
Sec. Nts., 11/1/03(8)...................................................... 10/20/93 $ 95.01 $ 97.75
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00(8)................................ 9/24/93 $ 64.24 $ 72.50
Lehman Brothers Holdings, Inc., 3.20% S&P 500 Index-Linked
Nts., 2/9/94............................................................... 11/9/93 $ 125.00 $ 108.58
Mary Kay Corp., 12.75% Gtd. Sr. Nts., Series B, 12/6/00...................... 12/11/92-3/22/93 $ 106.50 $ 106.50
Pace Industries, Inc., 10.625% Sr. Nts., 12/1/02(8).......................... 12/3/93 $ 100.00 $ 103.00
Presidio Oil Co., 13.25% Sr. Sub. Gas Indexed Nts.,
2/15/99(8)................................................................. 2/23/93 $ 80.00 $ 106.00
Protection One Alarm Monitoring, Inc., 12% Sr. Sub. Nts.,
11/1/03(8)................................................................. 11/04/93 $ 91.10 $ 92.00
Protection One Alarm Monitoring, Inc., Wts., Exp. 11/03(8)................... 11/04/93 $ 3.18 $ 3.21
Purity Supreme, Inc. Wts., Exp. 8/97......................................... 7/29/92 $ -- $ .02
Residential Funding Corp., 7.97% Real Estate Trust Pass-Through
Ctfs., Series 1993-J2, Cl. B1, 6/15/23(8).................................. 6/29/93 $ 83.97 $ 85.56
Subic Power Corp., 9.50% Debs., 12/28/08(8).................................. 12/20/93 $ 99.93 $ 102.00
Treasure Bay Gaming & Resorts, Inc., Units(8)................................ 11/10/93 $ 100.00 $ 101.50
Triangle Wire & Cable, Inc., 13.50% Sr. Nts., 1/15/02........................ 1/13/92 $ 100.00 $ 38.00
Triangle Wire & Cable, Inc. Wts., Exp. 1/98.................................. 1/13/92 $ -- $ .01
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (8)............. 11/8/93 $ 100.00 $ 103.13
</TABLE>
8 Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds -- Bond Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements--17.9% Value-Note 1
<C> <S> <C>
$20,000,000 Repurchase agreement with First Chicago Capital Markets, Inc.,
3.125%, dated 12/31/93 and maturing 1/3/94, collateralized by
U.S. Treasury Nts., 3.875%, 3/31/95, with a value of
$20,406,039 (Cost $20,000,000).................................... $ 20,000,000
Short-Term Corporate Bonds and Notes--0.8%
Citibank CD:
500,000 (1) 17.35%, 7/28/94 (3) .............................................. 476,603
500,000 (1) 17.30%, 7/29/94 (3) .............................................. 473,569
Total Short-Term Corporate Bonds and Notes
(Cost $1,007,367) ................................................ 950,172
Long-Term Government Obligations--28.3%
3,000,000 (1) Bank Negara Indonesia Bonds, 0%, 5/12/95 ........................... 1,167,176
Corporacion Andina de Fomento:
1,000,000 Bonds, 6.625%, 10/14/98 (4) ..................................... 992,500
1,000,000 Nts., 7.25%, 4/30/98 (4) ........................................ 1,020,625
1,000,000 Czechoslovakia National Bank Nts., 7%, 4/16/96 (4) ................. 1,017,500
1,250,000 Empresa Columbiana de Petroleos Nts., 7.25%, 7/8/98 (4) ............ 1,270,313
Federal National Mortgage Assn. Gtd. Real Estate Mortgage
Investment Conduit Pass-Through Ctfs.:
3,000,000 8.75%, 11/25/05 .................................................. 3,214,830
2,000,000 10.40%, 4/25/19 .................................................. 2,239,800
1,450,000 Financiera Energetica Nacional Nts., 6.625%, 12/13/96 .............. 1,446,375
1,000,000 Petroliam Nasional Berhad Nts., 6.875%, 7/1/03(4) .................. 1,012,500
1,000,000 (1) Treasury Corp. of Victoria Gtd. Sr. Nts., 8.25%, 10/15/03 .......... 733,060
U.S. Treasury Bonds:
5,000,000 8%, 11/15/21 ..................................................... 5,923,399
1,000,000 7.25%, 8/15/22 ................................................... 1,091,560
U.S. Treasury Nts.:
1,000,000 6.875%, 8/15/94 .................................................. 1,020,930
3,000,000 5.875%, 5/15/95 .................................................. 3,075,930
1,000,000 7.875%, 6/30/96 .................................................. 1,087,180
1,000,000 6.375%, 6/30/97 .................................................. 1,052,490
3,000,000 6%, 12/31/97 ..................................................... 3,116,220
1,000,000 8.25%, 7/15/98 ................................................... 1,125,620
Total Long-Term Government Obligations
(Cost $29,898,884) ............................................... 31,608,008
Long-Term Corporate Bonds and Notes--44.7%
Airlines --1.0%
975,000 AMR Corp., 10% Debs., 4/15/21 ...................................... 1,125,200
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Bond Fund
Face Market
Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1
Automobiles, Trucks and Parts --0.9%
$ 800,000 Chrysler Corp., 10.95% Debs., 8/1/17 ............................... $ 964,874
Banks/Savings and Loans --1.8%
200,000 Chemical New York Corp., 9.75% Sub. Cap. Nts., 6/15/99 ............. 235,515
750,000 First Chicago Corp., 11.25% Sub. Nts., 2/20/01 ..................... 964,171
100,000 First Fidelity Bancorporation, 8.50% Sub. Cap. Nts., 4/1/98 ........ 109,444
475,000 Heller Financial, Inc., 7.75% Nts., 5/15/97 ........................ 508,995
165,000 NBD Bancorp, Inc., 7.25% Sub. Debs., 8/15/04 ....................... 175,922
1,994,047
Broadcast Media/Cable TV -- 7.4%
News America Holdings, Inc.:
500,000 12% Sr. Nts., 12/15/01 ........................................... 607,500
100,000 8.625% Sr. Nts., 2/1/03 .......................................... 110,375
500,000 10.125% Gtd. Sr. Debs., 10/15/12 ................................. 606,875
1,500,000 Time Warner Entertainment Co. LP, 8.375% Sr. Debs., 3/15/23 ........ 1,582,500
Time Warner, Inc.:
800,000 7.45% Nts., 2/1/98 ............................................... 842,000
220,000 7.95% Nts., 2/1/00 ............................................... 235,400
3,500,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 ...................... 4,270,000
8,254,650
Chemicals/Plastics --2.3%
2,100,000 Quantum Chemical Corp., 10.375% Fst. Mtg. Bonds, 6/1/01 ............ 2,560,341
Financial/Insurance --9.7%
1,000,000 Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20 (2) ........... 1,537,500
700,000 Conseco, Inc., 8.125% Sr. Nts., 2/15/03 ............................ 733,106
2,000,000 First Boston Mortgage Securities Corp., 7.04% Mtg. Pass-
Through Ctfs., 10/25/02 .......................................... 1,976,250
General Motors Acceptance Corp.:
700,000 8% Nts., 10/1/96 ................................................. 746,928
700,000 7.75% Nts., 4/15/97 .............................................. 744,556
300,000 5.50% Nts., 12/15/01 ............................................. 278,091
1,185,462 GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (4) .................... 1,446,264
450,000 PaineWebber Group, Inc., 7.75% Sub. Nts., 9/1/02 ................... 474,652
1,250,000 Republic American Corp., 9.50% Sub. Debs., 8/1/02 .................. 1,298,695
1,171,405 Resolution Trust Corp., 8.25% Mtg. Pass-Through Ctfs.,
Series 1992-CHF, Cl. C, 12/25/20 ................................. 1,218,994
350,000 Shearson Lehman Brothers Holdings, Inc., 8.375% Nts., 2/15/99 ...... 382,999
10,838,035
Food and Restaurants --1.5%
500,000 Philip Morris Cos., Inc., 8.875% Nts., 7/1/96 ...................... 546,917
1,000,000 RJR Nabisco, Inc., 10.50% Sr. Nts., 4/15/98 ........................ 1,105,000
1,651,917
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Bond Fund
Face Market
Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1
Gaming/Hotels --1.9%
$ 1,225,000 Circus Circus Enterprises, Inc., 6.75% Sr. Sub. Nts., 7/15/03 ...... $ 1,226,491
Host Marriott Hospitality, Inc.:
228,000 10.125% Sr. Nts., Series F, 1/15/99 .............................. 235,980
190,000 10.625% Sr. Nts., Series B, 2/1/00 ............................... 195,700
475,000 11% Sr. Nts., Series L, 5/1/07 ................................... 488,656
2,146,827
Healthcare/Medical Products -- 1.2%
1,178,824 Epic Properties, Inc., 11.50% Gtd. Fst. Priority Mtg. Nts.,
Cl. B-2, 7/15/01 ................................................. 1,326,176
Home Building/Development -- 2.3%
1,000,000 (1) Noranda Forest, Inc., 11% Debs., 7/15/98 ........................... 849,037
1,664,470 Scotia Pacific Holding Co., 7.95% Timber Collateralized Nts.,
7/20/15 .......................................................... 1,738,329
2,587,366
Leisure/Entertainment --1.4%
500,000 Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub. Nts.,
2/1/98 ........................................................... 571,450
250,000 Eastman Kodak Co., 10% Nts., 6/15/01 ............................... 278,036
700,000 Mattel, Inc., 6.875% Sr. Nts., 8/1/97 .............................. 732,533
1,582,019
Oil and Gas: Equipment and Services -- 1.2%
400,000 McDermott, Inc., 9.375% Nts., 3/15/02 .............................. 454,866
250,000 Sonat, Inc., 9.50% Nts., 8/15/99 ................................... 286,861
500,000 Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 ................ 558,759
1,300,486
Oil and Gas: Exploration and Production -- 0.4%
375,000 Atlantic Richfield Co., 10.375% Nts., 7/15/95 ...................... 408,525
Oil and Gas: Integrated -- 1.1%
Tenneco, Inc.:
650,000 7.875% Nts., 10/1/02 ............................................. 696,255
400,000 10% Debs., 3/15/08 ............................................... 503,748
1,200,003
Railroads/Equipment --1.1%
700,000 American Car Line Co., 8.25% Equipment Trust Ctfs.,
Series 1993-A, 4/15/08 ........................................... 731,500
400,000 Union Pacific Corp., 9.65% Medium-Term Nts., 4/17/00 ............... 475,256
1,206,756
Telecommunications --0.5%
500,000 GTE Corp., 9.375% Debs., 12/1/00 ................................... 594,612
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Bond Fund
Face Market
Amount Long-Term Corporate Bonds and Notes(Continued) Value-Note 1
Textiles/Apparel --1.0%
$ 1,097,000 Fruit of the Loom, Inc., 7% Debs., 3/15/11 ......................... $ 1,066,833
Transportation --1.2%
Tiphook Financial Corp.:
1,000,000 8% Gtd. Nts., 3/15/00 ............................................ 820,000
600,000 10.75% Sr. Gtd. Nts., 11/1/02 .................................... 531,000
1,351,000
Utilities --6.8%
750,000 Boise Cascade Corp., 9.90% Nts., 3/15/00 ........................... 847,162
650,000 (1) BP America, Inc., 10.875% Nts., 8/1/01 ............................. 586,073
Coastal Corp.:
700,000 8.75% Sr. Nts., 5/15/99 .......................................... 763,508
2,000,000 11.75% Sr. Debs., 6/15/06 ........................................ 2,320,000
Commonwealth Edison Co.:
550,000 6.50% Nts., 7/15/97 .............................................. 564,060
275,000 6.40% Nts., 10/15/05 ............................................. 260,512
500,000 Long Island Lighting Co., 7% Debs., 3/1/04 ......................... 485,454
1,000,000 Mitchell Energy & Development Corp., 9.25% Sr. Nts., 1/15/02 ....... 1,122,500
750,000 Public Service Company of Colorado, 8.75% Fst. Mtg. Bonds,
3/1/22 ........................................................... 841,434
7,790,703
Total Long-Term Corporate Bonds and Notes
(Cost $47,992,177)................................................ 49,950,370
Municipal Bonds and Notes -- 6.3%
City of New York Taxable General Obligation Bonds, Series D:
500,000 9%, 2/1/13 ....................................................... 564,632
500,000 9.90%, 2/1/15 .................................................... 588,588
650,000 Connecticut State Taxable General Obligation Bonds, 6.625%,
12/15/97 ......................................................... 686,732
Dade County, Florida Educational Facilities Authority Taxable
Exchange Revenue Bonds, University of Miami, MBIA Insured:
175,000 7.65%, 4/1/10 ................................................... 202,488
325,000 9.70%, 4/1/10 ................................................... 388,893
New York State Environmental Facilities Corp. State Service
Contract Taxable Revenue Bonds:
375,000 Series A, 9.625%, 3/15/21 ....................................... 431,862
Series B:
200,000 7.30%, 3/15/97 ............................................... 209,186
800,000 8.15%, 3/15/02 ............................................... 871,697
1,320,000 Pinole, California Redevelopment Agency Tax Allocation Taxable
Bonds, Pinole Vista Redevelopment, Series B, 8.35%, 8/1/17 ....... 1,419,890
1,500,000 Port of Portland, Oregon Taxable Special Obligation Revenue
Bonds, PAMCO Project, 9.20%, 5/15/22 ............................. 1,648,415
Total Municipal Bonds and Notes (Cost $6,306,380) .................. $ 7,012,383
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Bond Fund
Market
Shares Common Stocks --0.0% Value-Note 1
1,413 Host Marriott Corp. ................................................ 12,894
1,413 Marriott International, Inc. ....................................... 40,977
Total Common Stocks (Cost $46,982) ................................. 53,871
Total Investments, at Value (Cost $105,251,790) ...................... 98.0% 109,574,804
Other Assets Net of Liabilities ...................................... 2.0 2,271,317
Net Assets ........................................................... 100.0% $ 111,846,121
<FN>
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. 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 more
than 10% of its net assets (determined at the time of purchase) in restricted and illiquid securit
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>
<TABLE>
<CAPTION>
Valuation Per
Acquistion Cost Unit as of
Security Date Per Unit December
<S> <C> <C> <C>
Corporacion Andina de Fomento:
Bonds, 6.625%, 10/14/98 (5).............................. 9/23/93 $ 99.95 $ 99.25
Nts., 7.25%, 4/30/98 (5)................................. 4/15/93 $ 99.38 $102.06
Czechoslovakia National Bank Nts., 7%, 4/16/96 (5).......... 3/11/93 $ 99.70 $101.75
Empresa Columbiana de Petroleos Nts., 7.25%, 7/8/98 (5)..... 6/24/93 $ 99.63 $101.63
GSPI Corp., 10.15% Fst. Mtg. Bonds, 6/24/10 (5)............. 1/29/93 $102.40 $122.00
Petroliam Nasional Berhad Nts., 6.875%, 7/1/03 (5).......... 7/28/93 $100.60 $101.25
</TABLE>
5. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds - Capital Appreciation Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements--13.9% Value-Note 1
<C> <S> <C>
$19,000,000 Repurchase agreement with J.P. Morgan Securities, Inc.,
3.15%, dated 12/31/93 and maturing 1/3/94, collateralized
by U.S. Treasury Bills, 2.93%, 2/3/94, with a value of
$19,399,169 (Cost $19,000,000) ............................... $ 19,000,000
Corporate Bonds and Notes--4.1%
1,250,000 Aspect Telecommunications Corp., 5% Cv. Sub. Debs.,
10/15/03 (1) ................................................. 1,518,750
1,000,000 Intelcom Group, Inc., 7% Cv. Sub. Nts., 10/30/98 (1) ............. 777,840
1,000,000 Medaphis Corp., 6.50% Cv. Sub. Debs., 1/1/00 (1) ................. 1,225,000
750,000 RHI Entertainment, Inc., 6.50% Cv. Sub. Debs., 6/1/03 ............ 986,250
2,000,000 Solectron Corp., 0% Liq. Yld. Opt. Sub. Nts., 5/5/12 ............. 1,170,000
Total Corporate Bonds and Notes (Cost $4,604,064) ................ 5,677,840
Units Rights, Warrants and Certificates--0.1%
120,000 Tapistron International, Inc. Wts., Exp. 6/97 * .................. 135,000
381 Windmere Corp. Wts., Exp. 1/98 * ................................. -
Total Rights, Warrants and Certificates (Cost $52,860) ........... 135,000
Shares Common Stocks --84.9%
Basic Materials --0.8%
Metals: Miscellaneous --0.3%
20,000 Custom Chrome, Inc. * ............................................ 445,000
Steel --0.5%
17,000 Huntco, Inc., Cl. A .............................................. 716,125
Consumer Cyclicals --31.9%
Airlines --1.0%
40,000 Atlantic Southeast Airlines, Inc. ................................ 1,370,000
Auto Parts: After Market--2.7%
40,000 AutoZone, Inc. * ................................................. 2,290,000
20,000 Bailey Corp. * ................................................... 275,000
20,000 O'Reilly Automotive, Inc. * ...................................... 580,000
27,000 Stant Corp. ...................................................... 546,750
3,691,750
Broadcast Media--1.9%
25,200 EZ Communications, Inc., Cl. A ................................... 396,900
25,000 IDB Communications Group, Inc. * ................................. 1,375,000
50,000 Valuevision International, Inc., Cl. A * ......................... 768,750
2,540,650
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Cyclicals (Continued)
Entertainment --2.9%
21,000 Autotote Corp. * ................................................. $ 462,000
30,000 Hollywood Park, Inc. * ........................................... 900,000
47,000 Iwerks Entertainment, Inc. * ..................................... 1,257,250
40,000 Players International, Inc. * .................................... 990,000
24,000 RIO HOTEL & CASINO, INC. * ....................................... 384,000
3,993,250
Hotels / Motels--2.6%
30,000 Circus Circus Enterprises, Inc. * ................................ 1,110,000
50,000 Mirage Resorts, Inc. * ........................................... 1,193,750
26,000 Promus Cos., Inc. (The) * ........................................ 1,189,500
3,493,250
Household Furnishings and Applliances--1.4%
32,500 Heilig-Meyers Co. ................................................ 1,267,500
35,000 Rhodes, Inc. * ................................................... 586,250
1,853,750
Leisure Time--2.3%
20,000 Caesar's World, Inc. * ........................................... 1,067,500
32,000 Funco, Inc. * .................................................... 480,000
20,000 International Game Technology .................................... 590,000
20,000 Showboat, Inc. ................................................... 322,500
25,000 Sodak Gaming, Inc. * ............................................. 750,000
3,210,000
Restaurants--2.6%
45,000 Apple South, Inc. ................................................ 945,000
22,500 Brinker International, Inc. * .................................... 1,035,000
20,000 HomeTown Buffet, Inc. * .......................................... 565,000
27,000 Outback Steakhouse, Inc. * ....................................... 1,036,125
3,581,125
Retail: Specialty--9.7%
10,500 Barnes & Noble, Inc. ............................................. 261,188
30,000 Bed Bath & Beyond, Inc. * ........................................ 1,035,000
70,000 Blockbuster Entertainment Corp. .................................. 2,143,750
45,000 Bombay Co., Inc. (The) * ......................................... 2,025,000
35,000 CellStar Corp. * ................................................. 586,250
58,000 CML Group, Inc. .................................................. 1,370,250
72,000 General Nutrition Cos., Inc. * ................................... 2,052,000
12,000 Insurance Auto Auctions, Inc. * .................................. 447,000
33,500 Musicland Stores Corp. * ......................................... 695,125
20,000 Office Depot, Inc. * ............................................. 672,500
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Cyclicals (Continued)
Retail: Specialty (Continued)
16,000 PetsMart, Inc. * ................................................. $ 436,000
45,000 Rex Stores Corp. * ............................................... 1,018,125
30,000 Spiegel, Inc., Cl. A ............................................. 675,000
13,417,188
Retail: Specialty Apparel--0.2%
12,000 Urban Outfitters, Inc. * ......................................... 321,000
Retail Stores: Department Stores--1.1%
30,000 Kohls Corp. * .................................................... 1,507,500
Retail Stores: General Merchandise Chains--0.6%
35,000 Damark International, Inc. * ..................................... 796,250
Shoes--0.3%
20,000 Baker (J.), Inc. ................................................. 350,000
Textiles: Apparel Manufacturers--2.6%
30,000 Mohawk Industries, Inc. * ........................................ 1,027,500
25,000 Phillips-Van Heusen Corp. ........................................ 937,500
60,000 Tapistron International, Inc. * .................................. 300,000
41,000 Tommy Hilfiger Corp. * ........................................... 1,281,250
3,546,250
Consumer Non-Cyclicals--14.5%
Beverages: Soft Drinks--1.2%
36,000 Cott Corp. ....................................................... 877,500
30,000 Snapple Beverage Corp. * ......................................... 787,500
1,665,000
Drugs--3.9%
6,361 Copley Pharmaceutical, Inc. * .................................... 251,260
50,000 Ethical Holdings Ltd., ADR * ..................................... 437,500
62,500 Nature's Bounty, Inc. * .......................................... 1,296,875
40,000 Perrigo Co. * .................................................... 1,370,000
15,000 R.P. Scherer Corp. * ............................................. 566,250
35,000 Roberts Pharmaceutical Corp. * ................................... 1,391,250
5,313,135
Food Wholesalers--0.5%
40,000 Ridgefield * ..................................................... 650,000
Healthcare: Diversified--1.2%
30,000 IVAX Corp. ....................................................... 862,500
25,500 Value Health, Inc. * ............................................. 803,250
1,665,750
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Non-Cyclicals (Continued)
Healthcare: Miscellaneous--3.6%
20,000 Athena Neurosciences, Inc. * ..................................... $ 165,000
20,000 Celtrix Pharmaceuticals, Inc. * .................................. 220,000
10,000 Cygnus Therapeutic Systems * ..................................... 112,500
20,000 Elan Corp. PLC * ................................................. 847,500
25,000 Genesis Health Ventures, Inc. * .................................. 587,500
30,000 Genetic Therapy, Inc. * .......................................... 487,500
20,000 Intergroup Healthcare Corp. * .................................... 960,000
20,000 Isis Pharmaceuticals, Inc. * ..................................... 135,000
50,000 Martek Biosciences Corp. * ....................................... 450,000
20,000 Matrix Pharmaceutical, Inc. * .................................... 210,000
10,000 Medimmune, Inc. * ................................................ 110,000
15,000 PerSeptive Biosystems, Inc. * .................................... 431,250
10,000 Vertex Pharmaceuticals, Inc. * ................................... 185,000
4,901,250
Hospital Management--2.8%
15,000 American Medical Response, Inc. * ................................ 375,000
80,000 Horizon Healthcare Corp. ......................................... 1,610,000
50,000 Lincare Holdings, Inc. * ......................................... 1,243,750
30,000 Mariner Health Group, Inc. * ..................................... 648,750
3,877,500
Medical Products--1.3%
9,486 Applied Immune Sciences, Inc. * .................................. 94,860
10,000 Molecular Dynamics, Inc. * ....................................... 117,500
20,000 Ventritex, Inc. * ................................................ 785,000
25,000 Zoll Medical Corp. * ............................................. 750,000
1,747,360
Energy--2.4%
Natural Gas: Processing--0.7%
35,400 Louis Dreyfus Natural Gas Corp. * ................................ 566,400
20,000 Newfield Exploration Co. * ....................................... 352,500
918,900
Oil: Integrated Domestic--0.3%
40,000 Trident NGL Holding, Inc. * ...................................... 470,000
Oil and Gas Drilling--1.4%
12,500 Alexander Energy Corp. * ......................................... 60,938
30,800 Cross Timbers Oil Co. ............................................ 438,900
25,000 International Colin Energy Corp. * ............................... 318,750
7,083 International Pedco Energy Corp. * ............................... 11,181
50,000 St. Mary Land & Exploration Co. .................................. 612,500
35,000 Stone Energy Corp. * ............................................. 472,500
1,914,769
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Financial--8.0%
Financial Services: Miscellaneous--4.5%
30,000 Advanta Corp., Cl. B ............................................. $ 870,000
25,000 BHC Financial, Inc. * ............................................ 687,500
38,000 Countrywide Credit Industries, Inc. .............................. 954,750
48,400 First USA, Inc. .................................................. 1,730,300
41,000 Foothill Group, Inc. (The), Cl. A ................................ 681,625
10,000 Insignia Financial Group, Inc., Cl. A * .......................... 230,000
20,000 Servicios Financieros Quadrum SA, Sponsored ADR .................. 647,500
30,000 Vallicorp Holdings, Inc. ......................................... 375,000
6,176,675
Insurance: Life--0.6%
40,000 Bankers Life Holding Corp. ....................................... 860,000
Insurance: Multi-Line--1.2%
60,000 CCP Insurance, Inc. .............................................. 1,672,500
Insurance: Property and Casualty--1.6%
16,500 ACE Ltd. ......................................................... 513,563
25,000 Mid Ocean Ltd. * ................................................. 706,250
20,000 PartnerRe Holdings Ltd. .......................................... 435,000
45,000 Philadelphia Consolidated Holding Co. * .......................... 540,000
2,194,813
Savings and Loans/Holding Cos.--0.1%
2,733 Pacific Crest Capital, Inc. * .................................... 19,473
Industrial--4.9%
Conglomerates--1.1%
70,000 Grupo Carso SA, ADS * ............................................ 1,531,250
Electrical Equipment--0.9%
52,000 AER Energy Resources, Inc. * ..................................... 533,000
24,000 Kent Electronics Corp. * ......................................... 684,000
1,217,000
Machinery: Diversified--1.0%
23,000 Duracraft Corp. .................................................. 569,250
43,000 FSI International, Inc. * ........................................ 516,000
20,500 Quickturn Design System, Inc. * .................................. 256,250
1,341,500
Manufacturing: Diversified Industrials--1.7%
30,000 Johnstown America Industries, Inc. * ............................. 735,000
20,000 Trinity Industries, Inc. ......................................... 862,500
110,000 Zoltek Cos., Inc. * .............................................. 701,250
2,298,750
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Industrial (Continued)
Railroads--0.2%
11,300 RailTex, Inc. * .................................................. $ 313,575
Technology--22.4%
Communication: Equipment/Manufacturers--1.9%
26,800 Antec Corp. * .................................................... 670,000
15,000 BroadBand Technologies, Inc. * ................................... 476,250
15,000 Glenayre Technologies, Inc. * .................................... 652,500
15,000 Newbridge Networks Corp. * ....................................... 821,250
2,620,000
Computer Software and Services--10.5%
25,000 Acclaim Entertainment, Inc. * .................................... 531,250
30,000 Cheyenne Software, Inc. * ........................................ 828,750
22,000 Compuware Corp. * ................................................ 572,000
34,200 Cornerstone Imaging, Inc. * ...................................... 504,450
41,000 CUC International, Inc. * ........................................ 1,476,000
11,100 Danka Business System PLC, Sponsored ADR ......................... 444,000
39,000 Davidson & Associates, Inc. * .................................... 702,000
20,000 Electronic Arts, Inc. * .......................................... 600,000
90,000 EMC Corp. * ...................................................... 1,485,000
25,000 Fourth Shift Corp. * ............................................. 210,938
17,000 FTP Software, Inc. * ............................................. 450,500
12,000 GTECH Holdings Corp. * ........................................... 393,000
20,000 HBO & Co. ........................................................ 920,000
12,500 Information Resources, Inc. * .................................... 481,250
30,000 Lotus Development Corp. * ........................................ 1,650,000
24,000 Mercury Interactive Corp. * ...................................... 414,000
30,000 Pairgain Technologies, Inc. * .................................... 412,500
944 Sap AG, Preference ............................................... 877,933
16,000 SOFTIMAGE, Inc. * ................................................ 256,000
4,500 SPS Transaction Services, Inc. * ................................. 271,125
20,000 Sybase, Inc. * ................................................... 840,000
14,320,696
Computer Systems--4.7%
10,000 Cabletron Systems, Inc. * ........................................ 1,125,000
9,000 Cisco Systems, Inc. * ............................................ 581,625
25,000 First Data Corp. ................................................. 1,018,750
48,000 Golden Systems, Inc. * ........................................... 411,000
30,000 Pyxis Corp. * .................................................... 2,242,500
69,000 Union Switch & Signal, Inc. * .................................... 1,086,750
6,465,625
Electronics--0.4%
30,500 Itron, Inc. * .................................................... 549,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Capital Appreciation Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Technology (Continued)
Electronics: Instrumentation--1.5%
60,000 American Power Conversion Corp. * ................................ $ 1,425,000
75,000 CMC Industries, Inc. * ........................................... 637,500
2,062,500
Electronics: Semiconductors--0.6%
80,000 Advanced Technology Materials, Inc. * ............................ 470,000
32,100 MRS Technology, Inc. * ........................................... 417,300
887,300
Telecommunications--2.8%
20,000 Cencall Communications Corp. * ................................... 560,000
40,000 Davel Communications Group, Inc. ................................. 615,000
20,000 LCI International, Inc. * ........................................ 740,000
33,177 LDDS Communications, Inc. * ...................................... 1,600,790
45,000 WCT Communications, Inc. * ....................................... 264,373
3,780,163
Total Common Stocks (Cost $91,474,536) ........................... 116,267,572
Total Investments, at Value (Cost $115,131,460) ..................... 103.0% 141,080,412
Liabilities in Excess of Other Assets ............................... (3.0) (4,195,309)
Net Assets .......................................................... 100.0% $136,885,103
<FN>
* Non-income producing security.
1 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 $777,840, or .57% of the Fund's net assets, at December 31, 1993.
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit 12/31/93
Aspect Telecommunications Corp., 5% Cv. Sub Debs., 10/15/03(2) 9/14/93 $100.00 $121.50
Intelcom Group, Inc., 7% Cv. Sub. Nts., 10/30/98 ............ 11/2/93 $100.00 $ 77.78
Medaphis Corp., 6.50% Cv. Sub. Debs., 1/1/00 (2) ............ 12/22/92 $100.00 $122.50
2 Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds - Growth Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements --12.9% Value-Note 1
<C> <S> <C>
$ 7,300,000 Repurchase agreement with J.P. Morgan Securities, Inc.,
3.15%, dated 12/31/93 and maturing 1/3/94, collateralized
by U.S. Treasury Bills, 2.93%, 2/3/94, with a value of
$7,454,315 (Cost $7,300,000) ............................... $ 7,300,000
Shares Common Stocks --86.2%
Basic Materials --1.4%
Chemicals --0.9%
7,000 Great Lakes Chemical Corp. ................................... 522,375
Chemicals: Diversified --0.5%
6,000 FMC Corp. * .................................................. 282,750
Consumer Cyclicals --15.3%
Auto Parts: After Market --1.3%
15,000 Goodyear Tire & Rubber Co. ................................... 686,250
2,700 SPX Corp. .................................................... 47,925
734,175
Automobiles --1.0%
13,000 Harley-Davidson, Inc. ........................................ 573,625
Broadcast Media --1.6%
12,000 Multimedia, Inc. * ........................................... 411,000
17,000 Tele-Communications, Inc., Cl. A * ........................... 514,250
925,250
Entertainment --1.1%
16,000 King World Productions, Inc. * ............................... 614,000
Leisure Time --1.1%
7,000 Caesar's World, Inc. * ....................................... 373,625
8,000 International Game Technology ................................ 236,000
609,625
Publishing --0.2%
4,000 Marvel Entertainment Group, Inc. * ........................... 109,000
Restaurants --1.6%
4,500 McDonald's Corp. ............................................. 256,500
28,000 Shoney's, Inc. * ............................................. 647,500
904,000
Retail: Specialty --5.5%
14,000 Blockbuster Entertainment Corp. .............................. 428,750
18,000 Circuit City Stores, Inc. .................................... 391,500
17,000 CML Group, Inc. .............................................. 401,620
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Growth Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Cyclicals (Continued)
Retail: Specialty (Continued)
14,000 Home Depot, Inc. (The) ....................................... $ 553,000
23,000 Michaels Stores, Inc. * ...................................... 822,250
8,000 Pier 1 Imports, Inc. ......................................... 78,000
7,000 QVC Network, Inc. * .......................................... 274,750
14,600 Service Merchandise Co., Inc. * .............................. 146,000
3,095,870
Retail Stores: General Merchandise Chains --0.7%
5,000 Mac Frugal's Bargains Close-Outs, Inc. *...................... 98,125
11,000 Wal-Mart Stores, Inc. ........................................ 275,000
373,125
Shoes --0.1%
3,000 Reebok International Ltd. .................................... 90,000
Textiles: Apparel Manufacturers --0.6%
14,000 Fruit of the Loom, Inc., Cl. A * ............................. 337,750
Toys --0.5%
11,000 Mattel, Inc. ................................................. 303,875
Consumer Non-Cyclicals --19.0%
Beverages: Soft Drinks --1.4%
10,000 Coca-Cola Co. (The) .......................................... 446,250
9,000 PepsiCo, Inc. ................................................ 367,875
814,125
Drugs --3.0%
6,500 Forest Laboratories, Inc. * .................................. 309,563
4,000 Marion Merrell Dow, Inc. ..................................... 72,000
7,500 Merck & Co., Inc. ............................................ 257,813
3,000 Mylan Laboratories, Inc. ..................................... 76,125
5,000 Pfizer, Inc. ................................................. 345,000
6,000 Schering-Plough Corp. ........................................ 411,000
4,000 Syntex Corp. ................................................. 63,500
6,000 Upjohn Co. ................................................... 174,750
1,709,751
Food Processing --0.9%
4,000 ConAgra, Inc. ................................................ 105,500
3,000 General Mills, Inc. .......................................... 182,250
6,000 Heinz (H.J.) Co. ............................................. 215,250
1,000 Tyson Foods, Inc., Cl. A ..................................... 24,000
527,000
Healthcare: Diversified --3.6%
13,000 Abbott Laboratories .......................................... 383,500
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Growth Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Non-Cyclicals (Continued)
Healthcare: Diversified (Continued)
4,500 American Home Products Corp. ................................. $ 291,375
4,500 Bristol-Myers Squibb Co. ..................................... 261,563
16,500 IVAX Corp. ................................................... 474,375
6,000 Johnson & Johnson ............................................ 268,500
4,000 Smithkline Beecham PLC, ADR .................................. 109,500
4,000 Warner-Lambert Co. ........................................... 270,000
2,058,813
Healthcare: Miscellaneous --3.9%
3,500 Amgen, Inc. * ................................................ 173,250
8,000 HealthCare COMPARE Corp. * ................................... 197,000
21,000 National Health Laboratories, Inc. ........................... 299,250
11,000 United Healthcare Corp. ...................................... 834,625
12,000 U.S. Healthcare, Inc. ........................................ 691,500
Hospital Management --0.4%
4,000 Healthtrust, Inc.-The Hospital Co. * ......................... 106,500
8,000 Novacare, Inc. * ............................................. 122,000
228,500
Household Products --1.2%
6,000 Colgate-Palmolive Co. ........................................ 374,250
5,500 Procter & Gamble Co. ......................................... 313,500
Medical Products --3.3%
13,000 Cordis Corp. * ............................................... 641,875
6,000 Medtronic, Inc. .............................................. 492,750
3,500 Rhone-Poulenc Rorer, Inc. .................................... 127,750
12,000 Sci-Med Life Systems, Inc. * ................................. 471,000
5,000 St. Jude Medical, Inc. ....................................... 132,500
1,865,875
Tobacco --1.3%
6,000 American Brands, Inc. ........................................ 199,500
5,500 Philip Morris Cos., Inc. ..................................... 306,625
6,000 UST, Inc. .................................................... 166,500
672,625
Energy --3.7%
Coal --.5%
10,000 Pittston Co. ................................................. 288,750
Oil: Exploration and Production --0.5%
52,000 Maxus Energy Corp. * ......................................... 286,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Growth Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Energy (Continued)
Oil: Integrated Domestic --0.7%
3,500 Pennzoil Co. ................................................. $ 186,375
15,500 Quaker State Corp. ........................................... 207,313
393,688
Oil: Integrated International --1.1%
3,000 Chevron Corp. ................................................ 261,375
3,500 Royal Dutch Petroleum Co. .................................... 365,313
626,688
Oil Well Services and Equipment --0.9%
15,000 McDermott International, Inc. ................................ 397,500
10,000 Western Co. of North America * ............................... 128,750
526,250
Financial --23.3%
Financial Services: Miscellaneous --9.7%
17,000 Advanta Corp., Cl. A ......................................... 565,250
25,994 Bear Stearns Cos., Inc. (The) ................................ 568,619
22,000 Countrywide Credit Industries, Inc. * ........................ 552,750
8,250 Credit Local de France ....................................... 684,368
5,700 Federal National Mortgage Assn. .............................. 447,450
16,000 Green Tree Financial Corp. ................................... 768,000
5,000 MBIA, Inc. ................................................... 314,375
19,500 PaineWebber Group, Inc. ...................................... 526,500
20,000 Primerica Corp. .............................................. 777,500
7,000 Student Loan Marketing Assn. ................................. 314,125
5,518,937
Insurance: Life --2.4%
11,250 AFLAC, Inc. .................................................. 320,625
14,000 Conseco, Inc. ................................................ 777,000
6,000 Torchmark Corp. .............................................. 270,000
Insurance: Multi-Line --0.6%
12,000 CCP Insurance, Inc. .......................................... 334,500
Insurance: Property and Casualty --1.8%
15,200 Progressive Corp. ............................................ 615,600
29,000 USF&G Corp. .................................................. 427,750
1,043,350
Insurance Brokers --0.2%
5,000 Alexander & Alexander Services, Inc. ......................... 97,500
Major Banks: Other --1.7%
21,000 Bank of Boston Corp. ......................................... 483,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Growth Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Financial (Continued)
Major Banks: Other (Continued)
9,000 Mellon Bank Corp. ............................................ $ 477,000
960,000
Major Banks: Regional --6.5%
11,625 BANC ONE CORP. ............................................... 454,828
5,000 First Fidelity Bancorporation ................................ 227,500
9,000 First Interstate Bancorp. .................................... 577,125
15,000 KeyCorp ...................................................... 530,625
19,000 Midlantic Corp. * ............................................ 484,500
18,000 Shawmut National Corp. ....................................... 391,500
20,000 Signet Banking Corp. ......................................... 695,000
9,000 UJB Financial Corp. .......................................... 213,750
4,000 Washington Mutual Savings Bank of Seattle .................... 96,500
3,671,328
Money Center Banks --.4%
6,000 Chase Manhattan Corp. ........................................ 203,250
Industrial --3.1%
Commercial Services --0.5%
30,000 ADT Ltd., ADR * .............................................. 270,000
Electrical Equipment --1.2%
6,000 Amphenol Corp., Cl. A * ...................................... 99,000
5,500 General Electric Co. ......................................... 576,813
675,813
Machine Tools --0.1%
2,000 Cincinnati Milacron, Inc. .................................... 44,000
Machinery: Diversified --0.8%
11,000 Varity Corp. * ............................................... 492,250
Transportation: Miscellaneous --0.5%
5,000 American President Cos. Ltd. ................................. 286,250
Technology --20.0%
Aerospace/Defense --0.4%
6,000 Northrop Corp. ............................................... 224,250
Computer Software and Services --5.5%
5,000 BMC Software, Inc. * ......................................... 240,000
14,600 Ceridian Corp. * ............................................. 277,400
16,000 Computer Associates International, Inc. ..................... 640,000
2,000 Computer Sciences Corp. * .................................... 199,000
26,000 EMC Corp. * .................................................. 429,000
8,000 General Motors Corp., Cl. E .................................. 234,000
6,200 Microsoft Corp. * ............................................ 499,875
20,000 Novell, Inc. * ............................................... 415,000
4,000 Oracle Systems Corp. * ....................................... 115,000
10,000 SHL Systemhouse, Inc. * ...................................... 72,500
3,121,775
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Growth Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Technology (Continued)
Computer Systems --6.8%
7,400 Applied Magnetics Corp. * .................................... $ 40,700
13,000 AST Research, Inc. * ......................................... 295,750
8,000 Cabletron Systems, Inc. * .................................... 900,000
12,500 Cisco Systems, Inc. * ........................................ 807,813
3,500 Compaq Computer Corp. * ...................................... 259,000
15,000 QMS, Inc. * .................................................. 135,000
7,000 Scitex Corp. Ltd. * .......................................... 173,250
20,000 Seagate Technology * ......................................... 475,000
9,000 Synoptics Communications, Inc. * ............................. 250,875
40,500 Unisys Corp. * ............................................... 511,313
3,848,701
Electronics: Defense --0.6%
8,500 General Motors Corp., Cl. H .................................. 330,438
Electronics: Instrumentation --2.3%
32,000 American Power Conversion Corp. * ............................ 760,000
30,000 Belden, Inc. * ............................................... 558,750
1,318,750
Electronics: Semiconductors --1.6%
12,000 Intel Corp. .................................................. 744,000
10,000 National Semiconductor Co. ................................... 161,250
905,250
Telecommunications --2.8%
4,800 American Telephone & Telegraph Co. ........................... 252,000
20,300 PacTel Corp. * ............................................... 504,963
12,000 Telefonos de Mexico SA, Sponsored ADR ........................ 810,000
1,566,963
Utilities --0.4%
Electric Cos. --0.1%
4,000 Niagara Mohawk Power Corp. ................................... 81,000
Telephone (New) --0.3%
2,500 BellSouth Corp. .............................................. 144,688
Total Common Stocks (Cost $39,727,358) ....................... 48,863,478
Total Investments, at Value (Cost $47,027,358) ..................... 99.1% $56,163,478
Other Assets Net of Liabilities .................................... 0.9 537,570
Net Assets ......................................................... 100.0% $56,701,048
<FN>
*Non-income producing security.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds-Multiple Strategies Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements--10.0% Value-Note 1
<C> <S> <C>
$ 25,000,000 Repurchase agreement with First Chicago Markets,
3.125%, dated 12/31/93 and maturing 1/3/94, collateralized
by U.S. Treasury Bills, 3.875%, 3/31/95, with a value of
$25,506,287 (Cost $25,000,000) .................................. $ 25,000,000
Long-Term Government Obligations--25.9%
1,678,950 Argentina (Republic of) Bonds, Bonos de Consolidacion de
Deudas, Series I, 3.1875%, 4/1/01 (2)(3) ........................ 1,458,977
+ 1,400,000 Australia (Government of) Bonds, 12%, 5/15/06 .................... 1,298,435
Canada (Government of) Bonds:
+ 3,000,000 9.75%, 12/1/01 .................................................. 2,723,565
+ 1,500,000 8.50%, 4/1/02 ................................................... 1,277,379
Government National Mortgage Assn.:
2,450,763 8%, 7/15/22 ..................................................... 2,583,569
4,500,662 8%, 4/15/23 ..................................................... 4,748,199
+ 3,600,000 Queensland (Government of) Development Authority
Global Transferable Registered Nts., 10.50%, 5/15/03 ............ 3,068,564
Spain (Kingdom of) Bonds:
+175,000,000 13.45%, 4/15/96 ................................................. 1,363,388
+ 50,000,000 11.45%, 8/30/98 ................................................. 398,915
2,000,000 United Mexican States Gtd. Cv. Bonds, Series B, 6.25%,
12/31/19 ........................................................ 1,671,250
U.S. Treasury Bonds, STRIPS:
3,900,000 0%, 8/15/02 ..................................................... 2,359,086
2,500,000 0%, 8/15/03 ..................................................... 1,409,322
U.S. Treasury Nts.:
12,500,000 7.625%, 5/31/96 ................................................. 13,425,749
10,300,000 6.75%, 5/31/97 .................................................. 10,946,942
9,000,000 9.25%, 8/15/98 .................................................. 10,513,080
5,000,000 6.375%, 8/15/02 ................................................. 5,215,600
500,000 Venezuela (Republic of) Collateralized Par Bonds, Series
W-A, 6.75%, 3/31/20 ............................................. 372,188
Total Long-Term Government Obligations
(Cost $60,924,336) ............................................. 64,834,208
Corporate Bonds and Notes--14.4%
Adelphia Communications Corp.:
500,000 10.25% Sr. Debs., 7/15/00 (4) ................................... 530,000
500,000 12.50% Sr. Nts., 5/15/02 ........................................ 582,500
500,000 9.875% Sr. Debs., 3/1/05 ....................................... 552,500
750,000 Alco Health Distribution Corp., 11.25% Sr. Debs.,
7/15/05 (3) .................................................... 752,110
500,000 American Medical International, Inc., 13.50% Sr. Sub.
Nts., 8/15/01 ................................................... 585,625
500,000 American Standard, Inc., 9.875% Sr. Sub. Nts., 6/1/01 ............ 525,625
800,000 Amstar Corp., 11.375% Sr. Sub. Nts., 2/15/97 ..................... 820,000
Armco, Inc.:
351,000 13.50% Sr. Nts., 6/15/94 ........................................ 360,214
200,000 8.50% SF Debs., 9/1/01 ......................................... 195,000
400,000 Auburn Hills Trust, 12.375% Gtd. Exch. Ctfs., 5/1/20 (2) ........ 615,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Face Market
Amount Corporate Bonds and Notes (Continued) Value-Note 1
$ 475,000 Aztar Corp., 11% Sr. Sub. Nts., 10/1/02 .......................... $ 484,500
500,000 Baldwin Co., 10.375% Sr. Nts., 8/1/03 (4)......................... 482,500
1,000,000 Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs.,
Series B, 3/1/05 (1) ............................................ 555,000
500,000 Cablevision Industries Corp., 9.25% Sr. Debs.,
Series B, 4/1/08 ............................................... 520,000
500,000 Calmar, Inc., 12% Sr. Sec. Nts., 12/15/97 ........................ 500,000
1,000,000 Card Establishment Services, Inc., 10% Sr. Sub Nts.,
10/1/03 (4) ..................................................... 1,045,000
500,000 Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 .............. 497,500
500,000 Chrysler Financial Corp., 13.25% Sr. Nts., 10/15/99 .............. 667,690
500,000 Coastal Corp., 11.75% Sr. Debs., 6/15/06 ......................... 580,000
1,000,000 Coleman Holdings, Inc., 0% Sr. Sec. Disc. Nts., 5/27/98 .......... 647,500
600,000 Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 ........... 672,000
250,000 Di Giorgio Corp., 12% Sr. Nts., 2/15/03 .......................... 271,875
500,000 Envirosource, Inc., 9.75% Sr. Nts., 6/15/03 ...................... 487,500
875,000 Epic Holdings, Inc., 0%/12% Sr. Def. Cpn. Nts.,
3/15/02 (1) ..................................................... 638,750
491,176 Epic Properties, Inc., 11.50% Gtd. Fst. Priority Mtg.
Nts., Cl. B-2, 7/15/01 .......................................... 552,574
750,000 Farm Fresh, Inc., 12.25% Sr. Nts., 10/1/00 ....................... 796,875
750,000 Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 .............. 776,250
First Chicago Corp.:
250,000 9% Sub. Nts., 6/15/99 ........................................... 285,850
250,000 11.25% Sub. Nts., 2/20/01 ....................................... 321,391
400,000 Flagstar Corp., 10.875% Sr. Nts., 12/1/02 ........................ 415,000
Foodmaker, Inc.:
500,000 14.25% Sr. Sub. Nts., 5/15/98 ................................... 536,875
500,000 9.25% Sr. Nts., 3/1/99 .......................................... 511,250
500,000 Gaylord Container Corp., 11.50% Sr. Sub. Disc. Debs.,
5/15/01 ......................................................... 535,000
500,000 GNF Corp., 10.625% Gtd. Fst. Mtg. Nts., 4/1/03 ................... 482,500
400,000 Grand Union Co., 11.25% Sr. Nts., 7/15/00 ........................ 422,000
500,000 Harmon International Industries, Inc. 12% Sr. Sub. Nts.,
8/1/02 .......................................................... 560,000
Harris Chemical North America, Inc.:
1,000,000 10.25% Sr. Sec. Disc. Nts., 7/15/01 ............................. 858,750
600,000 10.75% Sr. Sub. Nts., 10/15/03 .................................. 634,500
400,000 Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 ................ 366,000
800,000 International Cabletel, Inc., 10.875% Sr. Def. Cpn. Nts.,
10/15/03 ........................................................ 512,000
750,000 Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 ................ 796,875
500,000 Mediq, Inc., 7.50% Exch. Sub. Debs., 7/15/03 ..................... 480,625
Mesa Capital Corp.:
772,000 0%/12.75% Sec. Disc. Nts., 6/30/98 (1) .......................... 656,200
40,000 0%/12.75% Cv. Disc. Nts. 6/30/98 (1)............................. 57,100
900,000 Mosler, Inc., 11% Sr. Nts., Series A, 4/15/03 .................... 814,500
500,000 NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03 ............................ 528,750
500,000 Owens-Illinois, Inc., 10% Sr. Sub. Nts., 8/1/02 .................. 533,125
925,000 Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 ...................... 959,687
Panamsat LP/Panamsat Capital Corp.:
500,000 9.75% Sr. Sec. Nts., 8/1/00 ..................................... 531,250
250,000 0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (1) ...................... 167,500
500,000 Quantum Chemical Corp., 10.375% Fst. Mtg. Nts.,
6/1/03 .......................................................... 609,605
800,000 Revlon Worldwide Corp., 0% Sr. Sec. Disc. Nts., 3/15/98 .......... 412,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Face Market
Amount Corporate Bonds and Notes (Continued) Value-Note 1
RJR Nabisco, Inc.:
$ 400,000 10.50% Sr. Nts., 4/15/98 ........................................ $ 442,000
136,000 15% Sub. Debs., 5/15/01 ......................................... 149,260
500,000 8.625% Medium-Term Nts., 12/1/02 ................................ 492,149
500,000 SCI Television, Inc., 11% Sr. Sec. Nts., 6/30/05 ................. 520,000
500,000 Sealed Power Technologies LP, 14.50% Sr. Sub. Debs.,
5/15/99 ......................................................... 545,000
750,000 Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 .............. 761,250
300,000 Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 ....... 330,000
1,000,000 Talley Industries, Inc., 12.25% Sr. Disc. Debs., 10/15/05 ........ 585,000
500,000 Time Warner, Inc./Time Warner Entertainment LP, 10.15%
Sr. Nts., 5/1/12 ................................................ 620,000
500,000 Tiphook Finance Corp., 10.75% Sr. Gtd. Nts., 11/1/02 ............. 442,500
500,000 TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 .................... 610,000
Unisys Corp.:
500,000 15% Credit Sensitive Nts., 7/1/97 ............................... 570,000
500,000 9.75% Sr. Nts., 9/15/16 ......................................... 510,000
USG Corp.:
500,000 10.25% Sr. Sec. Nts., 12/15/02 .................................. 515,000
300,000 8.75% Debs., 3/1/17 ............................................. 277,500
Total Corporate Bonds and Notes (Cost $ 34,881,201) .............. 36,052,080
Municipal Bonds--0.2%
500,000 Port of Portland, Oregon Special Obligation Taxable
Revenue Bonds, PAMCO Project, 9.20%, 5/15/22
(Cost $500,000) ................................................. 549,472
Units Rights, Warrants and Certificates--0.0%
16,412 Gaylord Container Corp. Wts., Exp. 7/96
(Cost $36,927) .................................................. 59,494
Shares Preferred Stocks --0.9.%
3,000 Alumax, Inc., $4.00 Cv., Series A ................................ 295,500
26,000 Chiquita Brands International, Inc., $1.28
Depositary Shares * ............................................ 354,250
6,000 Cyprus Amax Minerals Co., $4.00 Cv., Series A .................... 390,000
20 Dairy Farm International Holdings Ltd., $65.00 Cv. (4) ........... 30,800
10,000 Delta Airlines, Inc., $3.50 Cv. Depositary Shares, Series C* .... 535,000
20,000 K-III Communications Corp., Sr. Exch. ............................ 552,500
10,000 Liposome Co., Inc. (The), $1.9375 Cum. Cv. Exch.
Depositary Shares, Series A .................................... 187,500
Total Preferred Stocks (Cost $2,137,265) ......................... 2,345,550
Common Stocks --48.1%
Basic Materials --3.9%
Chemicals --1.4%
10,000 Air Products and Chemicals, Inc. ................................. 442,500
16,000 ARCO Chemical Corp. .............................................. 692,000
40,000 biosys * ......................................................... 230,000
8,500 Dow Chemical Co. (The) ........................................... 482,375
31,000 Hauser Chemical Research, Inc. * ................................. 248,000
29,700 Praxair, Inc. .................................................... 493,763
32,500 Sybron Chemical Industries, Inc. * ............................... 784,062
3,372,700
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Basic Materials (Continued)
Chemicals: Diversified--0.4%
4,850 Bayer AG, ADR .................................................... $ 1,023,350
Chemicals: Specialty --0.1%
750 Goldschmidt (T.H.) AG ............................................ 300,167
Gold--0.1%
85,000 Arimetco International, Inc. * ................................... 118,769
Metals: Miscellaneous --1.2%
60,500 Brush Wellman, Inc. .............................................. 862,125
48,100 Custom Chrome, Inc. * ............................................ 1,070,225
22,700 Inco Ltd. ........................................................ 610,063
11,000 Phelps Dodge Corp. (5) ........................................... 536,250
3,078,663
Paper and Forest Products--0.2%
30,000 Kimberly Clark de Mexico, Series A * ............................. 562,138
Steel --0.5%
20,000 Allegheny Ludlum Corp. ........................................... 477,500
20,600 Inland Steel Industries, Inc. * .................................. 682,375
1,159,875
Consumer Cyclicals --10.0%
Auto Parts: After Market--0.4%
30,000 Excel Industries, Inc. ........................................... 551,250
45,000 Hi-Lo Automotive, Inc. * ......................................... 444,375
995,625
Broadcast Media --1.5%
1,000 Capital Cities/ABC, Inc. ......................................... 619,500
49,500 Comcast Corp., Cl. A Special ..................................... 1,782,000
12,800 Grupo Televisa SA, ADS (4) ....................................... 896,000
42,000 SFX Broadcasting, Inc., Cl. A * .................................. 535,500
3,833,000
Entertainment --1.1%
20,000 Disney (Walt) Co. (5) ............................................ 852,500
19,000 King World Productions, Inc. * (5) ............................... 729,125
7,000 Paramount Communications, Inc. (5) ............................... 541,625
21,000 WMS Industries, Inc. * (5) ....................................... 603,750
2,727,000
Home Building --0.1%
50,000 Miles Homes, Inc. * .............................................. 300,000
Household Furnishings and Appliances--0.4%
50,000 Chromcraft Revington, Inc. * ..................................... 1,100,000
Leisure Time --0.9%
13,600 Caesar's World, Inc. * ........................................... 725,900
10,500 Eastman Kodak Co. * .............................................. 588,000
35,000 Funco, Inc. * .................................................... 525,000
17,000 International Game Technology .................................... 501,500
2,340,400
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Cyclicals (Continued)
Publishing --1.2%
40,000 Bowne & Co., Inc. ................................................ $ 870,000
8,500 McGraw-Hill, Inc. ................................................ 574,813
20,000 Time Warner, Inc. ................................................ 885,000
10,167 Wolters Kluwer NV ................................................ 642,282
2,972,095
Restaurants --0.4%
79,000 Quantum Restaurant Group, Inc. ................................... 967,750
Retail Stores: General Merchandise Chains --0.3%
8,000 Centros Comerciales Pryca ........................................ 105,790
30,000 Price/Costco, Inc. * ............................................. 577,500
683,290
Retail: Specialty --1.5%
15,300 Blockbuster Entertainment Corp. (5) .............................. 468,562
4,086 Castorama Dubois Investissements LP .............................. 610,357
22,000 CML Group, Inc. .................................................. 519,750
40,000 Inacom Corp. * ................................................... 540,000
30,000 Service Merchandise Co., Inc. * .................................. 300,000
38,700 Venture Stores, Inc. ............................................. 904,613
38,000 Waban, Inc., * ................................................... 517,750
3,861,032
Shoes --0.7%
64,000 Baker (J.), Inc. ................................................. 1,120,000
43,000 Justin Industries, Inc. .......................................... 634,250
1,754,250
Textiles: Apparel Manufacturers --0.8%
30,000 Authentic Fitness Corp. * ........................................ 843,750
21,000 Fruit of the Loom, Inc., Cl. A * ................................. 506,625
20,000 Warnaco Group, Inc. (The), Cl. A * ............................... 607,500
1,957,875
Toys --0.7%
47,000 Mattel, Inc. ..................................................... 1,298,375
7,000 Nintendo Co. ..................................................... 450,338
1,748,713
Consumer Non-Cyclicals--8.6%
Beverages: Alcoholic --0.3%
100,000 Guiness PLC ...................................................... 706,461
Beverages: Soft Drinks--0.3%
51,700 Whitman Corp. .................................................... 840,125
Cosmetics --0.7%
24,000 Avon Products, Inc. (5) .......................................... 1,167,000
30,000 Neutrogena Corp. ................................................. 615,000
1,782,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Non-Cyclicals (Continued)
Drugs --1.1%
22,000 Agouron Pharmaceuticals, Inc. * .................................. $ 258,500
15,500 Astra AB Free, Series A .......................................... 353,319
950 Ciba-Geigy AG .................................................... 575,746
13,700 Lilly (Eli) & Co. ................................................ 813,438
300 Sandoz AG ........................................................ 835,337
2,836,340
Food Processing --0.8%
1,541 Chiquita Brands International, Inc. .............................. 17,722
967,000 CP Pokphand Co. .................................................. 425,468
23,600 Nestle SA, Sponsored ADR ......................................... 1,020,700
40,000 Sanfilippo (John B.) & Son, Inc. ................................. 580,000
2,043,890
Healthcare: Diversified--1.3%
18,000 Abbott Laboratories .............................................. 531,000
16,500 Bristol-Myers Squibb Co. ......................................... 959,063
23,000 Carter-Wallace, Inc. ............................................. 491,625
1,025 Schering AG ...................................................... 669,941
7,000 Warner-Lambert Co. ............................................... 472,500
3,124,129
Healthcare: Miscellaneous--2.5%
9,000 Amgen, Inc. * (5) ................................................ 445,500
12,000 Biogen, Inc. * ................................................... 478,500
6,000 Chiron Corp. * ................................................... 504,000
50,000 FHP International Corp. * (5) .................................... 1,350,000
20,100 Genzyme Corp. * .................................................. 552,750
45,785 Manor Care, Inc. ................................................. 1,116,009
18,000 Matrix Pharmaceutical, Inc. * .................................... 189,000
14,000 Protein Design Labs, Inc. * ...................................... 339,500
23,400 U.S. Healthcare, Inc. (5) ........................................ 1,348,425
6,323,684
Hospital Management --0.2%
26,000 Medical Care America, Inc. * (5) ................................. 594,750
Medical Products --0.8%
18,500 Bard (C.R.), Inc. (5) ............................................ 467,125
9,000 Medtronic, Inc. (5) .............................................. 739,125
15,000 Molecular Dynamics, Inc. * ....................................... 176,250
20,000 Nellcor, Inc. * .................................................. 495,000
1,877,500
Retail Stores: Food Chains--0.3%
164,026 Dairy Farm International Holdings Ltd. ........................... 326,885
17,900 Giant Food, Inc., Cl. A .......................................... 460,925
787,810
Tobacco --0.3%
13,700 Philip Morris Cos., Inc. ......................................... 763,775
Energy --2.6%
Coal --0.3%
22,000 Ashland Coal, Inc. ............................................... 665,500
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Energy (Continued)
Oil: Exploration and Production--0.2%
29,600 Oryx Energy Co. .................................................. $ 510,600
Oil and Gas Drilling--0.2%
60,500 Santa Fe Energy Resources, Inc. .................................. 544,500
Oil: Integrated Domestic--0.7%
15,000 Ashland Oil, Inc. ................................................ 511,875
7,000 Atlantic Richfield Co. ........................................... 736,750
17,000 Unocal Corp. (5) ................................................. 473,875
1,722,500
Oil: Integrated International--0.9%
7,700 Amoco Corp. ...................................................... 407,137
10,000 Royal Dutch Petroleum Co. ........................................ 1,043,750
12,000 Saga Petroleum AS, Cl. A ......................................... 119,667
19,000 Saga Petroleum AS, Cl. B ......................................... 184,421
15,373 Total SA, Sponsored ADR .......................................... 416,993
2,171,968
Oil Well Services and Equipment--0.3%
12,400 McDermott International, Inc. (5) ................................ 328,600
52,700 Tuboscope Vetco International Corp. * ............................ 322,787
651,387
Financial --5.5%
Financial Services: Miscellaneous--1.9%
25,200 Bear Stearns Cos., Inc. (The) .................................... 551,250
96,100 Catellus Development Corp. * ..................................... 744,775
15,000 Dean Witter, Discover & Co. (5) .................................. 519,375
17,800 Merrill Lynch & Co., Inc. ........................................ 747,600
200,000 Peregrine Investment Holdings Ltd. ............................... 491,752
35,000 Plaza Home Mortgage Corp. * ...................................... 293,125
20,000 Salomon, Inc. (5) ................................................ 952,500
30,000 Santa Anita Realty Enterprises, Inc. (4) ......................... 521,250
4,821,627
Insurance: Life --0.5%
26,000 Bankers Life Holding Corp. ....................................... 559,000
27,000 First Colony Corp. ............................................... 685,125
1,244,125
Insurance: Multi-Line--0.6%
7,000 American International Group, Inc. ............................... 614,250
29,600 American Re Corp. * .............................................. 839,900
1,454,150
Insurance: Property and Casualty--0.2%
6,000 Loews Corp. * .................................................... 558,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Financial (Continued)
Major Banks: Other --0.5%
13,300 BankAmerica Corp. ................................................ $ 616,788
1,325 Deutsche Bank AG, ADR ............................................ 679,062
1,295,850
Major Banks: Regional--0.5%
24,200 NationsBank Corp. ................................................ 1,185,800
Money Center Banks --1.0%
13,000 Bank of New York Co., Inc. (The) (5) ............................. 741,000
12,000 Bankers Trust New York Corp. ..................................... 949,500
18,700 Chemical Banking Corp. ........................................... 750,337
Savings and Loans/Holding Cos.--0.3%
17,000 Golden West Financial Corp. ...................................... 663,000
Industrial --6.0%
Building Materials Group--0.6%
15,000 Masco Corp. ...................................................... 555,000
21,000 Owens-Corning Fiberglas Corp. * (5) .............................. 931,875
3,200 Thomas Industries, Inc. .......................................... 42,000
1,528,875
Commercial Services --0.3%
65,000 Mail Boxes Etc. * ................................................ 771,875
Conglomerates --0.4%
17,500 Tenneco, Inc. .................................................... 920,938
Electrical Equipment --1.1%
80,000 Amphenol Corp., Cl. A * .......................................... 1,320,000
10,000 ASEA AB, Sponsored ADR ........................................... 710,000
8,000 General Electric Co. ............................................. 839,000
2,869,000
Engineering and Construction--0.7%
25,000 Foster Wheeler Corp. ............................................. 837,500
44,150 Huarte SA ........................................................ 528,224
35,000 Insituform Mid-America, Inc., Cl. A .............................. 490,000
1,855,724
Heavy Duty Trucks and Parts--0.2%
24,000 Spartan Motors, Inc. (5) ......................................... 408,000
Machine Tools --0.1%
7,000 FANUC Ltd. ....................................................... 230,814
Machinery: Diversified--0.3%
45,000 Cognex Corp. * ................................................... 663,750
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Industrial (Continued)
Manufacturing-Diversified Industrials--0.9%
65,000 Instrument Systems Corp. * ....................................... $ 576,875
3,287 Mannesmann AG .................................................... 794,998
10,000 Siemens AG, ADR .................................................. 913,750
2,285,623
Pollution Control --0.3%
28,400 WMX Technologies, Inc. ........................................... 749,050
Railroads --0.4%
15,400 Burlington Northern, Inc. (5) .................................... 891,275
Transportation: Miscellaneous--0.7%
10 Dampskibsselskabet Svendborg, Cl. B .............................. 275,205
105,000 OMI Corp. ........................................................ 721,875
40,000 Stolt-Nielsen SA ................................................. 670,000
1,667,080
Technology --9.4%
Aerospace/Defense --1.0%
9,000 Allied-Signal, Inc. .............................................. 711,000
6,400 General Dynamics Corp. (5) ....................................... 590,400
4,000 McDonnell Douglas Corp. .......................................... 428,000
50,000 Methode Electronics, Inc., Cl. A ................................. 718,750
2,448,150
Communication: Equipment/Manufacturers--0.2%
7,500 QUALCOMM, Inc. * (5) ............................................. 397,500
Computer Software and Services--2.8%
11,000 BMC Software, Inc. ............................................... 528,000
12,000 Computer Associates International, Inc. .......................... 480,000
23,000 LEGENT Corp. * ................................................... 520,375
26,500 Lotus Development Corp. * (5) .................................... 1,457,500
46,000 Marcam Corp. * ................................................... 448,500
6,300 Microsoft Corp. .................................................. 507,938
50,000 Network General Corp. * (5) ...................................... 893,750
28,500 Novell, Inc. ..................................................... 591,375
500 Sap AG, Preference ............................................... 465,007
50,000 Structural Dynamics Research Corp. ............................... 862,500
45,000 Wild River Systems * ............................................. 286,875
7,041,820
Computer Systems --1.5%
11,000 International Business Machines Corp. * .......................... 621,500
70,000 Micropolis Corp. * ............................................... 490,000
60,000 Radius, Inc. * ................................................... 457,500
25,000 Seagate Technology * (5) ......................................... 593,750
31,700 Synoptics Communications, Inc. ................................... 883,637
59,400 Tandem Computers, Inc. ........................................... 645,975
3,692,362
Electronics: Defense --0.2%
115,000 CAE, Inc. * ...................................................... 618,882
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Technology (Continued)
Electronics: Instrumentation--0.4%
14,000 Hewlett-Packard Co. (5) .......................................... $ 1,106,000
Electronics: Semiconductors--1.4%
8,000 Cirrus Logic, Inc. * (5) ......................................... 296,000
32,800 Intel Corp. (5) .................................................. 2,033,600
11,500 Samsung Electronics Co. Ltd., Sponsored GDR * .................... 592,250
12,200 Xilinx, Inc. * (5) ............................................... 582,550
3,504,400
Office Equipment and Supplies--0.4%
10,500 Xerox Corp. (5) .................................................. 938,437
Telecommunications --1.5%
14,500 American Telephone & Telegraph Co. * ............................. 761,250
26,000 MCI Communications Corp. ......................................... 734,500
18,000 NEXTEL Communications, Inc., Cl. A ............................... 670,500
33,900 Rogers Cantel Mobile Communications, Inc., Cl. B, Sub.
Vtg. * .......................................................... 915,300
9,000 Telefonos de Mexico SA, Sponsored ADR ............................ 607,500
3,689,050
Utilities --2.1%
Electric Cos. --.6%
30,000 Public Service Enterprise Group, Inc. ............................ 960,000
9,400 Verbund Oest Electriz ........................................... 572,057
1,532,057
Natural Gas --0.2%
204,000 Hong Kong & China Gas ............................................ 591,344
Telephone (New) --1.3%
22,000 BCE, Inc. ........................................................ 767,250
25,000 Pacific Telesis Group ............................................ 1,350,000
26,300 US West Communications, Inc. ..................................... 1,206,513
3,323,763
Total Common Stocks (Cost $95,247,361) ........................... 120,192,769
Total Investments, at Value (Cost $218,727,090) ....................... 99.5% 249,033,573
Other Assets Net of Liabilities ....................................... .5 1,256,475
Net Assets ............................................................ 100.0% $250,290,048
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Multiple Strategies Fund
<FN>
+ Face amount is reported in foreign currency.
* Non-income producing security.
1. Represents a zero coupon bond that converts to a fixed rate of interest at a designated future date.
2. Represents the current interest rate for a variable rate security.
3. Interest is paid in kind.
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 $521,250, or .20% of the Fund's net assets, at December 31, 1993.
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit December 31, 1993
Adelphia Communications Corp., 10.25% Sr. Debs., 7/15/00 ** ......... 7/21/93 $ 98.80 $ 106.00
Baldwin Co., 10.375% Sr. Nts., 8/1/03 ** ............................ 7/19/93 $ 100.88 $ 96.50
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 ** .... 12/1/93 $ 104.00 $ 104.50
Dairy Farm International Holdings Ltd., $65.00 Cv. ** ............... 4/30/93 $1,000.00 $1,540.00
Grupo Televisa 8/20/92-
SA, ADS ** ......................................................... 8/26/92 $ 27.80 $ 70.00
Santa Anita Realty 5/28/93-
Enterprises, Inc. .................................................. 11/29/93 $ 17.96 $ 17.38
** Transferable under Rule 144A of the Act.
</TABLE>
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds - Multiple Strategies Fund
5. Securities with an aggregate market value of $23,979,725 are held to cover
outstanding call options, as follows:
<TABLE>
<CAPTION>
Shares Expira-
Subject tion Exercise Premium Market Value -
to Call Date Price Received Note 1
<S> <C> <C> <C> <C> <C>
Amgen, Inc. .......................... 1,500 1/94 $ 50.00 $ 2,205 $ 2,062
Avon Products, Inc. .................. 4,800 4/94 55.00 5,280 4,200
Bank of New York Co., Inc. (The) ..... 2,000 1/94 60.00 5,190 750
Bard (C.R.), Inc. .................... 9,200 1/94 25.00 15,823 7,475
Bard (C.R.), Inc. .................... 9,300 4/94 30.00 13,089 4,650
Blockbuster Entertainment Corp. ...... 5,600 1/94 25.00 5,810 31,500
Blockbuster Entertainment Corp. ...... 5,700 3/94 30.00 6,241 12,825
Blockbuster Entertainment Corp. ...... 4,000 6/94 30.00 12,880 13,000
Burlington Northern, Inc. ............ 1,400 1/94 55.00 6,608 4,200
Burlington Northern, Inc. ............ 1,400 1/94 60.00 3,370 875
Cirrus Logic, Inc. ................... 4,000 3/94 30.00 17,379 31,500
Cirrus Logic, Inc. ................... 4,000 3/94 35.00 20,379 17,500
Dean Witter, Discover & Co. .......... 7,500 1/94 40.00 20,400 469
Dean Witter, Discover & Co. .......... 7,500 1/94 45.00 10,087 469
Disney (Walt) Co. .................... 4,000 4/94 40.00 10,380 17,500
FHP International Corp. .............. 5,000 3/94 25.00 20,449 15,625
General Dynamics Corp. ............... 1,600 2/94 95.00 6,744 3,800
Hewlett-Packard Co. .................. 2,800 2/94 85.00 5,929 3,500
Intel, Inc. .......................... 4,000 1/94 65.00 8,380 4,250
Intel, Inc. .......................... 3,000 4/94 70.00 12,285 7,500
King World Productions, Inc. ......... 3,800 2/94 45.00 7,624 3,325
Lotus Development Corp. .............. 4,000 1/94 40.00 18,379 62,000
Lotus Development Corp. .............. 4,000 4/94 50.00 26,879 34,000
Lotus Development Corp. .............. 5,200 4/94 60.00 24,543 15,600
McDermott International, Inc. ........ 6,200 2/94 30.00 11,051 1,550
McDermott International, Inc. ........ 6,200 5/94 35.00 6,045 1,550
Medtronic, Inc. ...................... 1,800 1/94 85.00 3,996 1,800
Medical Care America, Inc. ........... 13,000 4/94 25.00 35,359 22,750
Network General Corp. ................ 16,800 1/94 15.00 28,895 48,300
Network General Corp. ................ 8,400 7/94 20.00 19,697 19,950
Owens-Corning Fiberglas Corp. ........ 4,200 3/94 50.00 8,536 3,150
Paramount Communications, Inc. ....... 2,500 1/94 80.00 7,112 2,969
Paramount Communications, Inc. ....... 2,000 3/94 80.00 11,559 5,000
Paramount Communications, Inc. ....... 2,500 3/94 85.00 4,769 2,500
Phelps Dodge Corp. ................... 5,500 1/94 50.00 11,866 5,156
QUALCOMM, Inc. ....................... 4,000 1/94 50.00 26,379 20,000
QUALCOMM, Inc. ....................... 3,500 1/94 60.00 26,582 1,750
Salomon, Inc. ........................ 5,000 1/94 45.00 16,724 15,000
Salomon, Inc. ........................ 5,000 1/94 50.00 9,225 2,188
Salomon, Inc. ........................ 5,000 4/94 55.00 5,260 3,750
Seagate Technology ................... 12,500 3/94 20.00 40,249 51,562
Spartan Motors, Inc. ................. 4,000 3/94 22.50 9,130 1,500
Unocal Corp. ......................... 1,500 1/94 30.00 5,017 188
Unocal Corp. ......................... 1,500 1/94 35.00 2,017 281
U.S. Healthcare, Inc. ................ 5,700 1/94 55.00 24,616 23,512
WMS Industries, Inc. ................. 5,000 5/94 35.00 17,974 7,500
Xerox Corp. ......................... 2,000 4/94 85.00 5,690 14,000
Xilinx, Inc. ......................... 3,200 3/94 45.00 11,503 18,000
Xilinx, Inc. ......................... 3,200 3/94 50.00 11,104 10,400
Xilinx, Inc. ......................... 3,000 3/94 55.00 8,160 6,000
$ 654,848 $ 588,881
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds-Global Securities Fund
<TABLE>
<CAPTION>
Face Market
Amount Repurchase Agreements--14.7% Value-Note 1
<C> <S> <C>
$ 14,200,000 Repurchase agreement with First Chicago Capital Markets,
3.125%, dated 12/31/93 and maturing 1/3/94,
collateralized by U.S. Treasury Nts., 8.875%,
2/15/99, with a value of $14,501,606 (Cost $14,200,000) .......... $ 14,200,000
Corporate Bonds and Notes--0.9%
300,000 Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99 (2) .................. 389,250
375,000 Scici Ltd., 3.50% Cv. Bonds, 4/1/04 (2) ............................ 499,219
Total Corporate Bonds and Notes (Cost $675,000) .................... 888,469
Units Rights, Warrants and Certificates--1.4%
480,000 China Aerospace International Holdings
Ltd. Wts., Exp. 12/95 ............................................ 93,173
100 Ciba-Geigy AG Wts., Exp. 6/95 (1) .................................. 926
30,000 Eurotunnel SA Wts., Exp. 10/95 (1) ................................. 13,515
2,500 RWE AG Wts., Exp. 3/96 (1) ......................................... 319,602
6,980 Shinawatra Computer Communications Co.
Ltd. Rts., Exp 1/94 .............................................. 224,059
76,000 Societa Finanziora Telefonica SPA Wts., Exp. 9/94 (1) .............. 641,471
Total Rights, Warrants and Certificates (Cost $809,292) ............ 1,292,746
Shares Common Stocks--86.8%
Basic Materials--4.4%
Aluminum --0.6%
3,200 Wanderer-Werke AG (1) .............................................. 552,826
Chemicals: Diversified--0.3%
200,000 National Petrochemical Co. (2) ..................................... 258,366
Chemicals: Specialty--0.3%
180,000 Kurnia Kapuas Utama Glue ........................................... 341,030
Metals: Miscellaneous--0.4%
12,000 Hindalco Units ..................................................... 384,000
Paper and Forest Products--1.1%
40,000 Enso-Gutzeit Oy, Cl. A Free (1) .................................... 253,487
200,000 Indah Kiat ......................................................... 272,350
825,000 Rottneros Bruks AB, Free (1) ....................................... 593,863
Steel--1.7%
60,000 Dofasco, Inc. * .................................................... 1,053,656
6,300 Grupo Simec SA, ADR ................................................ 207,900
2,000 Maruichi Malaysia Steel Tube Berhad ................................ 5,085
5,000 Pohang Iron & Steel Co. Ltd. * ..................................... 398,005
Consumer Cyclicals--14.4%
Airlines--0.2%
3,500 Vienna International Airport (1) ................................... 166,496
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Cyclicals (Continued)
Automobiles--4.6%
20,000 Compania Interamerican de Auto ..................................... $ 1,062,124
20,000 CONSORCIO G GRUPO DINA SA, Sponsored ADR ........................... 557,500
120,000 Mahindra & Mahindra Ltd., GDR ...................................... 1,167,000
7,000 STE Fonciere Financiere ET de Participations SA (1) ................ 397,155
20,000 Volvo AB, Series B Free (1) ........................................ 1,293,303
4,477,082
Broadcast Media--2.2%
375,000 Sistem Televisyen Malaysia Berhad .................................. 1,071,819
100,000 Television Broadcast ............................................... 414,107
3,500 Television Francaise I (1) ......................................... 291,049
10,000 United International Holdings, Inc., Cl. A * ....................... 342,500
2,119,475
Entertainment--0.5%
20,000 Iwerks Entertainment, Inc. * ....................................... 535,000
Hardware and Tools--0.8%
10,000 La Brosse et Dupont (1) ............................................ 740,283
Household Furnishings and Appliances--2.0%
2,500 Moulinex Espana (1) ................................................ 51,076
65,000 Philips Gloeilamp NV (1) ........................................... 1,338,634
15,000 Singer Co. NV (The) * .............................................. 560,625
1,950,335
Publishing--1.5%
500,000 Oriental Press Group ............................................... 446,459
40,000 Roto Smeets de Boer (1) ............................................ 947,341
1,393,800
Retail: Specialty--1.1%
50,000 PT Modern Photo Film Co. ........................................... 619,159
1,000 Vereinigte Baubeschlag (1) ......................................... 423,257
1,042,416
Retail Stores: General Merchandise Chains--1.5%
200,000 Berjaya Singar Berhad .............................................. 527,094
20,000 Modelo Supermercados SA ............................................ 445,953
5,000 Sears Roebuck de Mexico SA, ADR * (2) .............................. 192,500
16,000 Sears Roebuck de Mexico SA * ....................................... 308,049
1,473,596
Consumer Non-Cyclicals--11.0%
Beverages: Alcoholic--0.8%
19,000 Jinro Ltd. ......................................................... 461,376
8,000 Remy Cointreau (1) ................................................. 319,756
781,132
Beverages: Soft Drinks--0.9%
8,000 Coca-Cola FEMSA SA de CV * ......................................... 262,000
90,000 Fomento Economico Mexicano
SA, Sponsored Cl. B ADR * ........................................ 585,000
847,000
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Consumer Non-Cyclicals (Continued)
Drugs--1.5%
40,750 Astra AB, Series A Free (1) ........................................ $ 928,887
12,000 Yuhan Corp. ........................................................ 490,615
1,419,502
Food Processing--2.4%
700,000 Grupo Herdez SA .................................................... 896,973
15,000 Hutamaki OY (1) .................................................... 468,814
170,000 PT Sinar Mass Agro Resources & Technology .......................... 567,673
130,000 United Foods Co., Inc. ............................................. 330,788
2,264,248
Healthcare: Diversified--0.3%
400 Schering AG (1) .................................................... 261,441
Healthcare: Miscellaneous--0.4%
11,000 Genzyme Corp. * .................................................... 302,500
9,104 Plant Genetics Systems International NV * (2) ...................... 140,931
443,431
Hospital Management--2.0%
25,000 Community Psychiatric Centers ...................................... 350,000
120 Rhoen Klinikum AG (1) .............................................. 71,176
660 Rhoen Klinikum AG, Preference (1) .................................. 347,762
300,000 Takare PLC (1) ..................................................... 1,167,326
1,936,264
Household Products--0.5%
90,000 Battery Technologies, Inc. * ....................................... 526,828
Medical Products--0.6%
41,200 Arjo AB * (1) ...................................................... 603,029
Retail Stores: Food Chains--1.6%
105,000 PT Fast Food Indonesia ............................................. 475,320
4,500 Spar Handels AG (1) ................................................ 1,033,957
1,509,277
Energy--5.9%
Natural Gas: Processing--0.8%
6,083 Voest-Alpine Eisenbahnsysteme AG (1) ............................... 790,778
Oil: Integrated International--0.7%
11,605 YuKong Ltd. ........................................................ 425,581
8,000 YPF Sociedad Anonima, Sponsored ADR * ............................. 208,000
633,581
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Energy (Continued)
Oil and Gas Drilling--3.5%
33,600 Ampolex Ltd. (1) ................................................... $ 126,570
100,000 Compania Naviera Perez Co., Cl. A .................................. 623,446
4,000 Elf Gabon (1) ...................................................... 670,675
15,000 Global Marine, Inc. * .............................................. 61,875
75,000 Morgan Hydrocarbons, Inc. * ........................................ 249,245
30,000 Petroleum Geo-Services AS * (1) .................................... 977,283
33,800 Ross Offshore AS (1) ............................................... 247,179
69,400 Transocean Drilling AS (1) ......................................... 415,245
3,371,518
Oil Well Services and Equipment--0.9%
25,000 Coflexip SA, Sponsored ADR * (1) ................................... 406,250
85,000 Th Loy Industries Berhad ........................................... 495,357
901,607
Financial--13.8%
Financial Services: Miscellaneous--6.4%
12,000 BIS SA (1) ......................................................... 495,893
19,070 Central Investment & Finance Corp. ................................. 396,922
10,000 Coryo Securities Corp. ............................................. 218,051
5,000 Credit Local de France (1) ......................................... 414,769
10,000 Hyundai Securities Co. ............................................. 294,865
240,000 Industrial Finance Corp. of Thailand ............................... 582,500
10,000 Korea Investment and Securities .................................... 253,980
230,000 Peregrine Investment Holdings Ltd. ................................. 565,515
10,000 Sangyoug Investment & Securities ................................... 281,236
16,000 Servicios Financieros Quadrum SA, Sponsored ADR .................... 518,000
130,000 Sturge Holdings PLC (1) ............................................ 130,788
1,000,000 Sun Hung Kai and Co. ............................................... 808,802
8 Taipei Fund (2) .................................................... 668,000
14,800 Taiwan Fund, Inc. .................................................. 579,050
6,208,371
Major Banks: Other--7.4%
57,500 Banco de Galicia, Series B ......................................... 579,033
9,000 Banco de Santander SA (1) .......................................... 418,121
34,326 Banco Frances del Rio de la Plata SA ............................... 453,446
4,500 Banco LatinoAmericano de Exportaciones SA, Cl. E ................... 204,188
100,000 Commonwealth Bank of Australia ..................................... 648,189
55,000 Den Norske Bank, Cl. A Free (1) .................................... 140,775
80,000 Grupo Financiero Bancomer, Series C * .............................. 168,448
24,000 Grupo Financiero Bancomer, Series L ................................ 50,534
40,000 Korea First Bank ................................................... 594,685
370,000 PT Panin Bank (2) .................................................. 961,737
17,080 Shin Han Bank Ltd. ................................................. 287,788
100,000 Skandinaviska Enskilda Banken Group (1) ............................ 677,844
17,130 Standard Chartered Bank PLC (1) .................................... 314,770
57,500 Svenska Handelsbanken Inc., Cl. A (1) .............................. 779,521
80,000 Turkiye Garanti Bankasi AS, Sponsored ADR * (2) .................... 560,000
1,000 Verwalt & Privat-Bank AG-PC (1) .................................... 235,686
7,074,765
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Industrial--22.6%
Building Materials Group--.9%
10,000 Internacional de Ceramica SA, Series B ADR * (2) ................... $ 321,958
25,000 Internacional de Ceramica SA, Series B ............................. 160,979
90,000 Sungei Way Holdings ................................................ 397,547
880,484
Capital Goods--0.2%
90,000 Ceramicas Carabobo CA,
Sponsored Series B ADR * ......................................... 194,940
Commercial Services--0.6%
100,000 PT Intraco Penta ................................................... 408,878
10,000 Serco Group (1) .................................................... 189,080
Conglomerates--4.0%
100,000 Brambles Industries Ltd. ........................................... 894,569
1,258 Compagnie Generale des Eaux (1) .................................... 622,768
30,000 Grupo Carso SA, ADS * .............................................. 656,250
350,000 Hopewell Holdings Ltd. ............................................. 457,458
80,000 Hutchison Whampoa Ltd. ............................................. 398,578
20,000 Kinnevik Investments AB, Series B Free (1) ......................... 436,700
6,200 Nederlandse Participatie Maatschappij NV (1) ....................... 176,205
2,500 Sophus Berendsen AS, Series B ...................................... 197,942
3,840,470
Containers: Metal and Glass--0.1%
100,000 M C Packaging Corp. Ltd. ........................................... 52,410
Containers: Paper--0.4%
164,000 PT Trias Sentosa ................................................... 421,409
Electrical Equipment--1.9%
1,004 Brown, Boveri & Co. Ltd., Part. Cert. (1) .......................... 734,224
80,000 Kabelmetal Indonesia PT * .......................................... 378,922
945 LEM Holdings SA (1) ................................................ 190,905
150,000 PT Trafindo Perkasa ................................................ 255,773
50,000 Supreme Cable Manufacturing (1) .................................... 274,719
1,834,543
Engineering and Construction--5.5%
10,000 BAU Holdings AF, Preference (1) .................................... 954,685
298 BAU Holdings AG * (1) .............................................. 28,841
15,000 Boskalis Westminster Koniniije (1) ................................. 356,798
14,000 Cubiertas Y Mzov SA Compania General (1) ........................... 1,048,102
2,850 Deutsche Babcock AG (1) ............................................ 413,583
6,732 Grontmij NV (1) .................................................... 237,423
30,000 Grupo Mexicano de Desarrollo SA, Sponsored
Series B ADR * ................................................... 720,000
30,000 Grupo Mexicano de Desarrollo SA, Sponsored
Series L ADR * ................................................... 738,750
18,000 IHC Caland NV (1) .................................................. 360,505
284,512 Leighton Holdings Ltd. ............................................. 438,354
5,297,041
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Industrial (Continued)
Machinery: Diversified--4.5%
1,106 Bobst Bearers AG (1) ............................................... $ 1,340,580
900 Klein, Schanjlin & Becker AG, Preference (1) ....................... 193,835
150 Maschinenfabrik Berthold Hermle AG (1) ............................. 17,103
254,000 Powerscreen International PLC (1) .................................. 1,183,748
125 Schweizerische Industrie GmbH (1) .................................. 237,369
25 Schweizerische Industrie GmbH, Bearer (1) .......................... 47,474
300,000 Tampella OY AG (1) ................................................. 1,295,065
4,315,174
Manufacturing: Diversified Industrials--1.1%
20,000 Aalberts Industries NV (1) ......................................... 616,802
650 Siemens AG (1) ..................................................... 296,640
6,000 Welna NV (1) ....................................................... 138,394
1,051,836
Pollution Control--0.0%
100,000 Environmental Technologies International, Inc. * ................... 26,435
Transportation: Miscellaneous--3.4%
90,000 Eurotunnel SA (1) .................................................. 800,238
9,802 Kvaerner Industrier AS, Series B Free (1) .......................... 475,708
125,000 Lisnave-Estal Naval Lisboa ......................................... 834,748
150,000 Malaysian International Shipping Corp. ............................. 556,789
150,000 Singmarine Industries Ltd. ......................................... 454,944
10,000 Unitor Ships Service AS (1) ........................................ 168,864
3,291,291
Technology--11.8%
Aerospace/Defense--1.0%
2,400,000 China Aerospace International Holdings Ltd. ........................ 1,001,618
Computer Software and Services--0.9%
6,500 Sligos SA (1) ...................................................... 607,673
50,000 Virtuality Group PLC ............................................... 244,857
852,530
Electronics: Semiconductors--1.5%
19,000 Austia Mikro Systems AG * (1) ...................................... 807,218
11,500 Samsung Electronics Co. Ltd., Sponsored GDR * ...................... 592,250
1,399,468
Telecommunications--8.4%
2,600 Advanced Information Services Ltd. ................................. 114,606
16,000 Atlantic Tele-Network, Inc. ........................................ 228,000
11,000 Carlton Communications PLC, ADR (1) ................................ 154,282
32,185 Millicom, Inc. * ................................................... 756,348
600,000 Netas Telekomunik .................................................. 1,077,000
6,980 Shinawatra Computer Communications Co. Ltd. ........................ 234,989
400,000 SIP International * (1) ............................................ 840,186
115,000 Societa Finanziora Telefonica SPA (1) .............................. 295,762
140,000 Technology Resources Industries * ................................. 732,734
15,500 Telecomasia Corp. PLC, Sponsored GDR ............................... 817,625
90,000 Telecommunication de Argentina, Cl. B .............................. 566,333
4,500 Telefonica de Argentina SA, Cl. B ADR .............................. 327,375
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Global Securities Fund
Market
Shares Common Stocks (Continued) Value-Note 1
Technology (Continued)
Telecommunications (Continued)
100,000 Telefonica de Espana SA, ADR (1) ................................... $ 1,304,880
3,000 Telefonos de Mexico SA, Sponsored ADR .............................. 202,500
15,000 United Communication Industries (2) ................................ 135,934
34,769 Vodafone Group, ADR (1) ............................................ 305,558
8,094,112
Utilities--2.9%
Electric Cos.--2.9%
20,000 Central Puerto SA, ADR * ........................................... 690,000
40,000 Consolidated Electric Power Asia Ltd., Sponsored ADR * ............. 720,000
25,000 Enersis SA, ADR * .................................................. 587,500
20,000 Korea Electric Power Co. * ......................................... 542,650
3,000 Verbund Oest Electriz (1) .......................................... 182,571
2,722,721
Total Common Stocks (Cost $68,312,122) ............................. 83,802,197
Total Investments, at Value (Cost $83,996,414) ........................ 103.8% 100,047,478
Liabilities in Excess of Other Assets ................................. (3.8) (3,622,967)
Net Assets ............................................................ 100.0% $ 96,424,511
<FN>
* Non-income producing security.
1. Securities with an aggregate market value of $37,803,067 are segregated to collateralize outstanding
forward foreign currency exchange contracts. See Note 5 of Notes to Financial Statements.
2. The Fund owns securites 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 that 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 $808,931, or .8% of the Fund's net assets, at December 31, 1993.
Valuation
Acquisition Cost Per Unit as of
Security Date Per Unit December 31, 1993
Internacional de Ceramica SA, Series B ADR(3) ................ 2/10/93-2/11/93 $ 25.40 $ 32.20
Jindal Strips Ltd., 4.25% Cv. Debs., 3/31/99(3) ............. 11/9/93 $ 100.00 $ 129.75
National Petrochemical Co.(3) ................................ 11/30/93 $ 1.30 $ 1.29
Plant Genetics Systems International NV ...................... 5/27/92 $ 11.18 $ 15.48
PT Panin Bank(3) ............................................. 7/28/93 $ .86 $ 2.60
Scici Ltd., 3.50% Cv. Bonds, 4/1/04(3) ....................... 10/19/93 $ 100.00 $ 133.13
Sears Roebuck de Mexico SA, ADR(3) ........................... 3/16/92 $ 15.50 $ 38.50
Taipei Fund .................................................. 12/29/93 $80,000.00 $83,500.00
Turkiye Garanti Bankasi AS, Sponsored ADR(3) ................. 10/29/93 $ 7.19 $ 7.00
United Communication Industries(3) ........................... 12/3/93 $ 9.06 $ 9.06
3. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
Statement of Investments December 31, 1993
Oppenheimer Variable Account Funds-Strategic Bond Fund
<TABLE>
<CAPTION>
Face Market
Amount Government Obligations --47.7% Value-Note 1
<C> <S> <C>
$ 300,000 Argentina (Republic of)
Bonds, Bonos del Tesoro,
Series II, 3.50%, 9/1/97 (3)...........................................$ 247,507
300,000 (1) Bariven SA
Bonds, 10.75%, 7/8/97 (6)............................................... 182,695
240,000 BEMGE Bonds,
10%, 1/15/96 .......................................................... 240,900
250,000 (1) Hydro-Ontario Global Bonds,
9%, 6/24/02 (6)....................................................... 212,165
250,000,000 (1) Italy (Republic of) Treasury Bonds,
11%, 6/1/03 (6)......................................................... 166,253
100,000 (1) New South Wales Treasury Corp.
Bonds, 9.25%, 2/18/03 .................................................. 76,929
30,000,000 (1) Spain (Kingdom of) Bonds,
9%, 2/28/97 (6)......................................................... 215,124
100,000 (1) Treasury Corp. of Victoria Gtd. Sr. Bonds,
9.25%, 9/18/03 ......................................................... 75,549
500,000 U.S. Treasury Bonds,
7.125%, 2/15/23 ........................................................ 541,245
U.S. Treasury Nts:
100,000 3.875%, 4/30/95 ........................................................ 99,968
2,350,000 4.25%, 5/15/96 ......................................................... 2,343,373
120,000 5.125%, 4/30/98 ........................................................ 120,337
250,000 Venezuela (Republic of) Front-Loaded Interest
Reduction Bonds, Series B, 6%,
3/31/07 (5)............................................................. 191,250
Total Government Obligations
(Cost $4,730,529)....................................................... 4,713,295
Corporate Bonds and Notes
--46.1%
Banks/Saving and Loans --1.1%
100,000 Bancomext Trust Division,
8% Nts., 8/5/03 ....................................................... 103,000
Broadcast Media/Cable TV
--10.3%
150,000 Cablevision Systems Corp.,
9.875% Sr. Sub. Debs.,
2/15/13 ................................................................ 175,125
350,000 Continental Cablevision,
Inc., 9.50% Sr. Debs.,
8/1/13 ................................................................. 392,000
200,000 International CabelTel,
Inc., 0%/10.875% Sr. Def. Cpn.
Nts., 10/15/03 (2)...................................................... 128,000
150,000 Lamar Advertising Co., 11%
Sr. Sec. Nts., 5/15/03 ................................................. 159,375
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Strategic Bond Fund
Face Market
Amount Corporate Bonds and Notes (Continued) Value-Note 1
Broadcast Media/Cable TV (Continued)
$ 150,000 Panamsat LP/Panamsat
Capital Corp., 9.75% Sr.
Sec. Nts., 8/1/00 .....................................................$ 159,375
1,013,875
Building Materials--2.5%
250,000 PT Inti Indorayon Utama,
9.125% Sr. Nts., 10/15/00 ............................................. 250,937
Chemicals/Plastics --3.0%
130,000 Atlantis Group, Inc., 11%
Sr. Nts., 2/15/03 ...................................................... 137,150
150,000 Harris Chemical North
America, Inc., 10.75% Sr. Gtd.
Sub. Nts., 10/15/03 .................................................... 158,625
295,775
Consumer Goods:
Manufacturing --7.0%
200,000 Amstar Corp., 11.375% Sr.
Sub. Nts., 2/15/97 ..................................................... 205,000
150,000 Harman International
Industries, Inc., 12% Sr.
Sub. Nts., 8/1/02 ...................................................... 168,000
175,000 MacAndrews & Forbes
Holdings, Inc., 13% Sub.
Debs., 3/1/99 .......................................................... 176,094
150,000 Revlon Consumer Products
Corp., 9.375% Sr. Nts.,
Series B, 4/1/01 ....................................................... 147,375
696,469
Financial/Insurance --6.8%
200,000 Card Establishment
Services, Inc., 10% Sr.
Sub. Nts., 10/1/03 (7) ................................................. 209,000
200,000 Reliance Group Holdings,
Inc., 9.75% Sr. Sub. Debs.,
11/15/03 ............................................................... 206,500
250,000 Tribasa Toll Road Trust,
10.50% Nts., Series 1993-A, 12/1/11 (7)................................. 257,813
673,313
Gaming/Hotels--1.5%
150,000 Station Casinos, Inc.,
9.625% Sr. Sub. Nts.,
6/1/03 ................................................................. 152,250
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Strategic Bond Fund
Face Market
Amount Corporate Bonds and Notes (Continued) Value-Note 1
Healthcare/Medical Products--1.5%
$ 150,000 Alco Health Distribution
Corp., 11.25% Sr. Debs.,
7/15/05 (4) ...........................................................$ 150,422
Home Building/Development--1.6%
150,000 NVR, Inc., 11% Gtd. Sr.
Nts., 4/15/03 .......................................................... 158,625
Office Equipment --1.4%
150,000 Mosler, Inc., 11% Sr. Nts.,
Series A, 4/15/03 ...................................................... 135,750
Oil and Gas : Exploration
and Production --1.5%
150,000 Maxus Energy Corp., 9.875%
Nts., 10/15/02 ......................................................... 150,375
Publishing --1.1%
200,000 Bell & Howell Co., 0%/11.50% Sr.
Disc. Debs., Series B,
3/1/05 (2) ............................................................. 111,000
Retail : Food and Drug--1.6%
150,000 Farm Fresh, Inc., 12.25%
Sr. Nts., 10/1/00 ...................................................... 159,375
Retail : Specialty --1.6%
150,000 Finlay Fine Jewelry Corp.,
10.625% Sr. Nts., 5/1/03 ............................................... 155,250
Transportation--1.0%
100,000 Transportacion Maritima
Mexicana SA, 8.50% Nts.,
10/15/00 ............................................................... 102,875
Utilities --2.6%
250,000 Subic Power Corp., 9.50%
Debs., 12/28/08 (7)..................................................... 255,000
Total Corporate Bonds and
Notes (Cost $4,476,279) ................................................ 4,564,291
Total Investments, at Value (Cost $9,206,808).............................. 93.8% 9,277,586
Other Assets Net of Liabilities ........................................... 6.2 608,932
Net Assets ................................................................ 100.0% $ 9,886,518
<PAGE>
Statement of Investments (Continued)
Oppenheimer Variable Account Funds-Strategic Bond Fund
<FN>
1. Face amount is reported in foreign currency.
2. Represents a zero cupon bond that converts to a fixed rate of interest at a
designated future date.
3. Represents the current interest rate for a variable rate security.
4. Interest or dividend is paid in kind.
5. Represents the current interest rate for a variable rate security.
6. Securities with an aggregate market value of $776,237 are segregated to collateralize
outstanding forward foreign currency exchange contracts. See note 5 of Notes to Financial
Statements.
7. 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.
Valuation Per
Acquisition Cost Unit as of
Security Date Per Unit 12/31/93
Card Establishment Services, Inc., 10% Sr. Sub. Nts., 10/1/03 (8) 10/6/93 $102.00 $104.50
Subic Power Corp., 9.50% Debs., 12/28/08 (8) 12/20/93 $99.93 $102.00
Tribasa Toll Road Trust 1, 10.50% Nts., Series 1993-A, 12/1/11 (8) 11/8/93 $100.00 $103.13
8. Transferable under Rule 144A of the Act.
See accompanying Notes to Financial Statements
</TABLE>
<PAGE>
Statements of Assets and Liabilities December 31, 1993
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic
Money High Income Bond Appreciation Growth Strategies Securities Bond
Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost*)-see
accompanying
statements $61,069,285 $93,784,521 $109,574,804 $141,080,412 $56,163,478 $249,033,573 $100,047,478 $9,277,586
Unrealized
appreciation on
forward foreign
currency exchange
contracts-Note 5 - 21,075 9,773 - - - 121,554 13,803
Cash 24,247 - 217,997 135,607 62,630 237,293 2,847,588 193,222
Receivables:
Dividends and
interest 159,311 1,526,923 1,743,940 86,279 51,306 1,937,521 89,294 179,525
Shares of beneficial
interest sold 56,131 79,874 354,834 2,096,404 499,157 500,839 1,193,039 226,388
Investments sold 50,893 369,789 - 972,382 - 805,320 489,055 -
Other 6,099 6,041 2,912 8,155 6,359 14,748 6,850 5,503
Total assets 61,365,966 95,788,223 111,904,260 144,379,239 56,782,930 252,529,294 104,794,858 9,896,027
LIABILITIES:
Bank overdraft - 642,665 - - - - - -
Options written, at
value (premiums
received $654,848)
- see accompanying
statements-Note 4 - - - - - 588,881 - -
Payables and other
liabilities:
Dividends 77,910 - - - - - - -
Investments purchased - 645,000 - 6,225,965 58,750 1,601,677 7,647,135 -
Shares of beneficial
interest redeemed 47,596 1,447,251 33,445 1,246,838 363 813 718,335 -
Other 18,841 41,974 24,694 21,333 22,769 47,875 4,877 9,509
Total liabilities 144,347 2,776,890 58,139 7,494,136 81,882 2,239,246 8,370,347 9,509
NET ASSETS $61,221,619 $93,011,333 $111,846,121 $136,885,103 $56,701,048 $250,290,048 $ 96,424,511 $9,886,518
COMPOSITION OF NET
ASSETS:
Paid-in capital $61,220,647 $86,718,526 $107,660,538 $ 93,658,242 $47,524,055 $217,836,036 $ 77,586,765 $9,771,635
Undistributed
(distributions in
excess of) net
investment income - (525,482) 61,656 234,158 524,266 598,176 339,434 6,384
Accumulated net
realized gain
(loss) from
investment, written
option and foreign
currency
transactions 972 1,876,672 (208,860) 17,043,751 (483,393) 1,483,386 2,325,694 23,918
Net unrealized
appreciation on
investments and
options written-
Note 3 - 5,023,676 4,415,577 25,948,952 9,136,120 30,372,450 16,172,618 75,918
Net unrealized
appreciation
(depreciation) on
translation of
assets and
liabilities
denominated in
foreign currencies - (82,059) (82,790) - - - - 8,663
NET ASSETS $61,221,619 $93,011,333 $111,846,121 $136,885,103 $56,701,048 $250,290,048 $ 96,424,511 $9,886,518
SHARES OF BENEFICIAL
INTEREST
OUTSTANDING 61,220,647 8,442,958 9,601,796 4,325,853 3,202,704 18,025,972 5,917,113 1,929,958
NET ASSET VALUE,
REDEMPTION PRICE
AND OFFERING PRICE
PER SHARE $ 1.00 $ 11.02 $ 11.65 $ 31.64 $ 17.70 $ 13.88 $ 16.30 $ 5.12
*Cost $61,069,285 $88,863,979 $105,251,790 $115,131,460 $47,027,358 $218,727,090 $ 83,996,414 $9,206,808
<FN>
See accompanying Notes to Financial Statements.<PAGE>
Statements of Operations For the Year Ended December 31, 1993
Oppenheimer Variable Account Funds
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic
Money High Income Bond Appreciation Growth Strategies Securities Bond
Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $2,043,327 $ 6,932,131 $6,683,478 $ 478,491 $ 196,602 $ 8,165,314 $ 91,732 $188,838
Dividends - 554,337 99 204,562 555,809 1,655,585 429,261 -
Total income 2,043,327 7,486,468 6,683,577 683,053 752,411 9,820,899 520,993 188,838
EXPENSES:
Management fees-Note 6 212,358 382,629 361,258 407,611 193,110 831,139 227,226 18,509
Legal and auditing fees 16,544 13,808 11,714 10,939 11,756 18,510 5,937 3,201
Custodian fees and
expenses 13,412 41,798 10,374 19,120 17,239 61,089 31,983 1,391
Trustees' fees and
expenses 2,032 1,699 1,606 2,557 1,642 7,291 2,342 189
Registration and filing
fees - 11,796 14,102 17,383 5,310 24,121 20,481 3,280
Other 3,309 2,317 2,605 3,600 1,441 7,469 4,562 797
Total expenses 247,655 454,047 401,659 461,210 230,498 949,619 292,531 27,367
NET INVESTMENT INCOME 1,795,672 7,032,421 6,281,918 221,843 521,913 8,871,280 228,462 161,471
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND
OPTIONS WRITTEN:
Net realized gain
(loss) on investments
and options written
(including premiums
on options exercised) 972 2,997,007 595,806 17,171,028 (416,658) 2,955,823 2,546,181 9,787
Net realized gain on
closing and
expiration of option
contracts written-
Note 4 - - - - - 219,623 - 7,110
Net realized gain
(loss) 972 2,997,007 595,806 17,171,028 (416,658) 3,175,446 2,546,181 16,897
Net change in
unrealized
appreciation
(depreciation) on
investments and
options written:
Beginning of year - 93,026 1,393,576 17,936,209 5,758,542 12,654,079 (781,639) -
End of year-Note 3 - 5,023,676 4,415,577 25,948,952 9,136,120 30,372,450 16,172,618 75,918
Net change - 4,930,650 3,022,001 8,012,743 3,377,578 17,718,371 16,954,257 75,918
NET REALIZED AND
UNREALIZED GAIN ON
INVESTMENTS AND
OPTIONS WRITTEN 972 7,927,657 3,617,807 25,183,771 2,960,920 20,893,817 19,500,438 92,815
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS BEFORE
FOREIGN EXCHANGE GAIN
(LOSS) 1,796,644 14,960,078 9,899,725 25,405,614 3,482,833 29,765,097 19,728,900 254,286
REALIZED AND UNREALIZED
FOREIGN EXCHANGE GAIN
(LOSS):
Net realized gain
(loss) on foreign
currency
transactions - (126,242) (164,183) - - - - 7,021
Net change in
unrealized
appreciation
(depreciation) on
translation of assets
and liabilities
denominated in
foreign currencies:
Beginning of year - (88,389) (240,141) - - - - -
End of year - (82,059) (82,790) - - - - 8,663
Net change - 6,330 157,351 - - - - 8,663
NET REALIZED AND
UNREALIZED FOREIGN
EXCHANGE GAIN (LOSS) - (119,912) (6,832) - - - - 15,684
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $1,796,644 $14,840,166 $9,892,893 $25,405,614 $3,482,833 $29,765,097 $19,728,900 $269,970
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Statements of Changes in Net Assets
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Money High Income Bond Capital Appreciation
Fund Fund Fund Fund
1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1)
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income $ 1,795,672 $ 2,307,212 $ 7,032,421 $ 4,453,990 $ 6,281,918 $ 3,568,280 $ 221,843 $ 168,695
Net realized gain
(loss) on investments
and options written 972 72,940 2,997,007 2,174,668 595,806 (110,978) 17,171,028 3,471,235
Net realized gain
(loss) on foreign
currency transactions - - (126,242) (165,639) (164,183) (437,791) - -
Net change in
unrealized
appreciation or
depreciation on
investments and
options written - - 4,930,650 (823,806) 3,022,001 (99,126) 8,012,743 7,083,362
Net change in
unrealized
appreciation or
depreciation on
translation of assets
and liabilities
denominated in
foreign currencies - - 6,330 (40,785) 157,351 (82,013) - -
Net increase in net
assets resulting from
operations 1,796,644 2,380,152 14,840,166 5,598,428 9,892,893 2,838,372 25,405,614 10,723,292
NET CHANGE IN
EQUALIZATION - - 1,194,413 590,409 747,196 458,394 - -
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net
investment income (1,795,672) (2,307,212) (7,933,113) (4,895,490) (6,021,196) (3,674,661) (173,608) (274,327)
Distributions from net
realized gain on
investments and
options written - (79,555) - - - - (3,478,465) (1,117,628)
BENEFICIAL INTEREST
TRANSACTIONS:
Net increase (decrease)
in net assets
resulting from
beneficial interest
transactions-Note 2 2,954,149 (436,361) 44,092,559 12,216,279 43,872,915 30,970,048 31,796,464 24,632,437
NET ASSETS:
Total increase
(decrease) 2,955,121 (442,976) 52,194,025 13,509,626 48,491,808 30,592,153 53,550,005 33,963,774
Beginning of year 58,266,498 58,709,474 40,817,308 27,307,682 63,354,313 32,762,160 83,335,098 49,371,324
End of year $61,221,619 $58,266,498 $93,011,333 $ 40,817,308 $111,846,121 $63,354,313 $136,885,103 $83,335,098
</TABLE>
1. For the year ended December 31.
See accompanying Notes to Financial Statements.
<PAGE>
Statements of Changes in Net Assets (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Growth Multiple Strategies Global Securities Strategic Bond
Fund Fund Fund Fund
1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1) 1992 (1) 1993 (1)
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income $ 521,913 $ 350,171 $ 8,871,280 $ 6,430,572 $ 228,462 $ 116,252 $ 161,471
Net realized gain
(loss) on investments
and options written (416,658) 1,452,406 3,175,446 1,920,255 2,546,181 (213,298) 16,897
Net realized gain on
foreign currency
transactions - - - - - - 7,021
Net change in
unrealized
appreciation or
depreciation on
investments and
options written 3,377,578 2,410,316 17,718,371 3,761,960 16,954,257 (990,204) 75,918
Net change in
unrealized
appreciation or
depreciation on
translation of assets
and liabilities
denominated in
foreign currencies - - - - - - 8,663
Net increase (decrease)
in net assets
resulting from
operations 3,482,833 4,212,893 29,765,097 12,112,787 19,728,900 (1,087,250) 269,970
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net
investment income (339,216) (532,602) (8,601,104) (6,262,811) - (35,139) (155,087)
Distributions from net
realized gain on
investments and options
written (768,083) - - - - (35,139) -
BENEFICIAL INTEREST
TRANSACTIONS:
Net increase in net
assets resulting
from beneficial interest
transactions 17,831,569 10,781,610 69,662,484 28,980,030 63,158,438 7,355,765 9,771,635
NET ASSETS:
Total increase 20,207,103 14,461,901 90,826,477 34,830,006 82,887,338 6,198,237 9,886,518
Beginning of year 36,493,945 22,032,044 159,463,571 124,633,565 13,537,173 7,338,936 -
End of year $ 56,701,048 $ 36,493,945 $250,290,048 $159,463,571 $96,424,511 $13,537,173 $9,886,518
</TABLE>
1. For the year ended December 31.
2. 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
1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 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 .03 .04 .06 .08 .09 .07 .06 .06 .05
Dividends and
distributions to
shareholders (.03) (.04) (.06) (.08) (.09) (.07) (.06) (.06) (.05)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $61,221 $58,266 $58,709 $89,143 $68,440 $69,468 $42,538 $28,218 $2,506
Average net assets (in
thousands) $57,654 $61,317 $75,747 $82,966 $67,586 $60,241 $35,138 $12,914 $2,080
Number of shares
outstanding at end of
period (in thousands) 61,221 58,266 58,703 89,141 68,439 69,468 42,538 28,218 2,506
Ratios to average net
assets:
Net investment income 3.12% 3.76% 5.97% 7.80% 8.82% 7.31% 6.33% 5.68% 7.25%(3)
Expenses .43% .50% .49% .51% .53% .55% .59% .75% .75%(3)
</TABLE>
1. For the period from April 3, 1985 (commencement of operations) to December
31, 1985.
2. For the year ended December 31.
3. Annualized.
See accompanying Notes to Financial Statements.
<PAGE>
Financial Highlights (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
High Income
Fund
1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 9.74 $ 9.40 $ 7.90 $ 8.59 $ 9.30 $ 9.14 $ 10.04 $ 10.00
Income from investment
operations:
Net investment income .82 1.19 1.28 1.21 1.09 1.12 1.30 .72
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions 1.65 .43 1.30 (.82) (.65) .23 (.51) (.24)
Total income from
investment operations 2.47 1.62 2.58 .39 .44 1.35 .79 .48
Dividends and
distributions to
shareholders:
Dividends from net
investment income (1.19) (1.28) (1.08) (1.08) (1.08) (1.07) (1.55) (.44)
Distributions from net
realized gain on
investments - - - - (.07) (.12) (.14) -
Total dividends and
distributions to
shareholders (1.19) (1.28) (1.08) (1.08) (1.15) (1.19) (1.69) (.44)
Net asset value, end of
period $ 11.02 $ 9.74 $ 9.40 $ 7.90 $ 8.59 $ 9.30 $ 9.14 $ 10.04
TOTAL RETURN, AT NET ASSET
VALUE(3) 26.34% 17.92% 33.91% 4.65% 4.84% 15.58% 8.07% 4.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $93,011 $40,817 $27,308 $19,172 $23,698 $25,551 $21,768 $14,833
Average net assets (in
thousands) $67,000 $36,861 $23,663 $21,493 $26,040 $24,530 $20,637 $ 8,036
Number of shares
outstanding at end of
period (in thousands) 8,443 4,189 2,905 2,427 2,760 2,746 2,382 1,478
Ratios to average net
assets:
Net investment income 10.50% 12.08% 14.26% 14.32% 11.52% 11.94% 13.13% 11.18%(4)
Expenses .68% .73% .75% .75% .75% .75% .75% .75%(4)
Portfolio turnover rate(5) 135.7% 144.2% 108.0% 95.1% 78.7% 57.9% 42.1% 18.3%
</TABLE>
1. For the period from April 30, 1986 (commencement of operations) to
December 31, 1986.
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 additionalshares 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 periodSecurities 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 (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Bond
Fund
1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 10.99 $ 11.15 $ 10.33 $ 10.49 $ 10.15 $ 10.19 $ 11.15 $11.27 $10.00
Income from investment
operations:
Net investment income .65 .87 .95 .97 .98 .94 .97 .97 .86
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions .76 (.17) .80 (.18) .32 (.05) (.71) .09 .99
Total income from
investment operations 1.41 .70 1.75 .79 1.30 .89 .26 1.06 1.85
Dividends and
distributions to
shareholders:
Dividends from net
investment income (.75) (.86) (.93) (.95) (.96) (.93) (1.17) (1.03) (.58)
Distributions from net
realized gain on
investments - - - - - - (.05) (.15) -
Total dividends and
distributions to
shareholders (.75) (.86) (.93) (.95) (.96) (.93) (1.22) (1.18) (.58)
Net asset value, end of
period $ 11.65 $ 10.99 $ 11.15 $ 10.33 $ 10.49 $ 10.15 $ 10.19 $11.15 $11.27
TOTAL RETURN, AT NET ASSET
VALUE(3) 13.04% 6.50% 17.63% 7.92% 13.32% 8.97% 2.53% 10.12% 18.82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $111,846 $63,354 $32,762 $16,576 $13,422 $ 9,989 $10,415 $7,377 $2,725
Average net assets (in
thousands) $ 87,215 $45,687 $22,169 $15,088 $11,167 $11,028 $ 8,748 $4,647 $1,614
Number of shares
outstanding at end
ofperiod (in thousands) 9,602 5,766 2,939 1,604 1,280 984 1,022 662 242
Ratios to average net
assets:
Net investment income 7.20% 7.81% 8.73% 9.30% 9.34% 9.08% 9.17% 8.71% 10.52%(4)
Expenses .46% .56% .64% .61% .64% .70% .75% .75% .75%(4)
Portfolio turnover rate(5) 36.3% 41.3% 7.6% 7.4% 5.4% 36.3% 5.9% 27.7% 101.3%
</TABLE>
1. For the period from April 3, 1985 (commencement of operations) to December
31, 1985.
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 additionalshares 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 (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Capital Appreciation
Fund
1993(2) 1992(3) 1991(3) 1990(3) 1989(3) 1988(3) 1987(3) 1986(2) 1986(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 26.04 $ 23.24 $ 15.24 $ 20.40 $ 16.31 $ 14.39 $13.12 $16.21 $13.71
Income (loss) from
investment operations:
Net investment income .05 .06 .08 .32 .50 .33 .21 .12 .09
Net realized and
unrealized gain (loss)
on investments 6.71 3.43 8.18 (3.54) 3.93 1.60 1.67 (1.24) 3.40
Total income (loss) from
investment operations 6.76 3.49 8.26 (3.22) 4.43 1.93 1.88 (1.12) 3.49
Dividends and
distributions to
shareholders:
Dividends from net
investment income (.06) (.14) (.26) (.53) (.34) - (.34) (.21) (.20)
Distributions from net
realized gain on
investments (1.10) (.55) - (1.41) - (.01) (.27) (1.76) (.79)
Total dividends and
distributions to
shareholders (1.16) (.69) (.26) (1.94) (.34) (.01) (.61) (1.97) (.99)
Net asset value, end of
period $ 31.64 $ 26.04 $ 23.24 $ 15.24 $ 20.40 $ 16.31 $14.39 $13.12 $16.21
TOTAL RETURN, AT NET ASSET
VALUE(4) 27.32% 15.42% 54.72% (16.82)% 27.57% 13.41% 14.34% (1.65)% N/A
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $136,885 $83,335 $49,371 $23,295 $27,523 $13,667 $9,692 $4,549 $3,852
Average net assets (in
thousands) $ 98,228 $56,371 $34,887 $24,774 $21,307 $13,239 $8,598 $3,099 $2,292
Number of shares
outstanding at end of
period (in thousands) 4,326 3,201 2,125 1,528 1,349 838 674 347 238
Ratios to average net
assets:
Net investment income .23% .30% .81% 1.93% 3.27% 2.13% 1.68% 2.36%(5) 2.27%
Expenses .47% .54% .63% .71% .68% .73% .75% 1.01%(5) 2.17%
Portfolio turnover rate(6) 122.8% 78.9% 122.3% 222.0% 130.5% 128.7% 138.7% 100.1% 464.8%
</TABLE>
1. For the year ended June 30, 1986Operating results were achieved by
Centennial Capital Appreciation Fund, a separate investment company acquired
by OCAP on August14, 1986.
2. For the six months ended December 31, 1986Operating results prior to
August 15, 1986 were achieved by Centennial Capital Appreciation Fund, a
separate investmentcompany acquired by OCAP on August 14, 1986.
3. For the year ended December 31.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additionalshares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period.
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
See accompanying Notes to Financial Statements.
<PAGE>
Financial Highlights (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Growth
Fund
1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(2) 1986(2) 1985(1)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 16.96 $ 15.17 $ 12.54 $ 16.38 $ 13.64 $ 11.21 $ 12.53 $10.95 $10.00
Income (loss) from
investment operations:
Net investment income .46 .16 .30 .56 .66 .29 .20 .13 .16
Net realized and
unrealized gain (loss)
on investments .74 1.99 2.82 (1.79) 2.50 2.19 .24 1.76 .79
Total income (loss) from
investment operations 1.20 2.15 3.12 (1.23) 3.16 2.48 .44 1.89 .95
Dividends and
distributions to
shareholders:
Dividends from net
investment income (.14) (.36) (.49) (.62) (.35) - (.34) (.15) -
Distributions from net
realized gain on
investments (.32) - - (1.99) (.07) (.05) (1.42) (.16) -
Total dividends and
distributions to
shareholders (.46) (.36) (.49) (2.61) (.42) (.05) (1.76) (.31) -
Net asset value, end of
period $ 17.70 $ 16.96 $ 15.17 $ 12.54 $ 16.38 $ 13.64 $ 11.21 $12.53 $10.95
TOTAL RETURN, AT NET ASSET
VALUE(3) 7.25% 14.53% 25.54% (8.21)% 23.59% 22.09% 3.32% 17.76% 9.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $56,701 $36,494 $22,032 $15,895 $19,301 $17,746 $14,692 $8,287 $ 820
Average net assets (in
thousands) $46,389 $25,750 $18,810 $17,235 $18,596 $15,585 $15,121 $3,744 $ 388
Number of shares
outstanding at end of
period (in thousands) 3,203 2,152 1,453 1,267 1,179 1,301 1,311 661 75
Ratios to average net
assets:
Net investment income 1.13% 1.36% 2.82% 4.09% 3.72% 2.39% 1.56% 2.62% 4.25%(4)
Expenses .50% .61% .70% .71% .70% .70% .75% .75% .75%(4)
Portfolio turnover rate(5) 12.6% 48.7% 133.9% 267.9% 148.0% 132.5% 191.0% 100.9% 132.9%
</TABLE>
1. For the period from April 3, 1985 (commencement of operations) to December
31, 1985.
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 additionalshares 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 (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Multiple Strategies
Fund
1993(2) 1992(2) 1991(2) 1990(2) 1989(2) 1988(2) 1987(1)
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 12.47 $ 11.96 $ 10.90 $ 12.30 $ 11.58 $ 10.04 $ 10.00
Income (loss) from
investment operations:
Net investment income .55 .55 .69 .73 .73 .66 .44
Net realized and
unrealized gain (loss)
on investments and
options written 1.41 .50 1.15 (.97) 1.04 1.53 .07
Total income (loss) from
investment operations 1.96 1.05 1.84 (.24) 1.77 2.19 .51
Dividends and
distributions to
shareholders:
Dividends from net
investment income (.55) (.54) (.78) (.70) (.68) (.65) (.43)
Distributions from net
realized gain on
investments and options
written - - - (.46) (.37) - (.04)
Total dividends and
distributions to
shareholders (.55) (.54) (.78) (1.16) (1.05) (.65) (.47)
Net asset value, end of
period $ 13.88 $ 12.47 $ 11.96 $ 10.90 $ 12.30 $ 11.58 $ 10.04
TOTAL RETURN, AT NET ASSET
VALUE(3) 15.95% 8.99% 17.48% (1.91)% 15.76% 22.15% 3.97%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $250,290 $159,464 $124,634 $118,888 $121,286 $78,386 $53,291
Average net assets (in
thousands) $199,954 $139,011 $117,000 $123,231 $101,057 $64,298 $34,256
Number of shares
outstanding at end of
period (in thousands) 18,026 12,792 10,421 10,908 9,860 6,766 5,306
Ratios to average net
assets:
Net investment income 4.44% 4.63% 5.95% 6.53% 6.36% 6.18% 6.12%(4)
Expenses .48% .55% .54% .55% .57% .58% .65%(4)
Portfolio turnover rate(5) 32.4% 57.8% 80.3% 99.2% 66.9% 110.0% 46.9%
</TABLE>
1. For the period from February 9, 1987 (commencement of operations) to
December 31, 1987.
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 (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Global Securities
Fund
1993(2) 1992(2) 1991(2) 1990(1)
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 9.57 $ 10.38 $10.04 $10.00
Income (loss) from investment operations:
Net investment income (.02) .07 .04 -
Net realized and unrealized gain (loss) on
investments 6.75 (.80) .30 .04
Total income (loss) from investment operations 6.73 (.73) .34 .04
Dividends and distributions to shareholders:
Dividends from net investment income - (.04) - -
Distributions from net realized gain on investments - (.04) - -
Total dividends and distributions to shareholders - (.08) - -
Net asset value, end of period $ 16.30 $ 9.57 $10.38 $10.04
TOTAL RETURN, AT NET ASSET VALUE(3) 70.32% (7.11)% 3.39% .40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $96,425 $13,537 $7,339 $ 432
Average net assets (in thousands) $31,696 $11,181 $3,990 $ 263
Number of shares outstanding at end of period (in
thousands) 5,917 1,415 707 43
Ratios to average net assets:
Net investment income .72% 1.04% .75% .08%(4)
Expenses .92% 1.06% 1.32% 6.84%(4)
Portfolio turnover rate(5) 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 (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer
Strategic Bond
Fund
1993(1)
<S> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 5.00
Income from investment operations:
Net investment income .10
Net realized and unrealized gain on investments and foreign
currency transactions .11
Total income from investment operations .21
Dividends and distributions to shareholders:
Dividends from net investment income (.09)
Distributions from net realized gain on investments -
Total dividends and distributions to shareholders (.09)
Net asset value, end of period $ 5.12
TOTAL RETURN, AT NET ASSET VALUE(2) 4.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,887
Average net assets (in thousands) $4,259
Number of shares outstanding at end of period (in thousands) 1,930
Ratios to average net assets:
Net investment income 5.67%(3)
Expenses .96%(3)
Portfolio turnover rate(4) 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
inadditional 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 theperiodof acquisition of one year or less are excluded from
the calculation.
See accompanying Notes to Financial Statements.
<PAGE>
Notes to Financial Statements
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 funds 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 adviser 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
Yorktime) 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 December 31, 1993,
securities with an aggregate market value of $2,369,721, representing 2.47%
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,
OCAP, 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, OBF, 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.
OCAP, 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 (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 of $2,119,310 and $1,577,200 for OHIF
and OBF, 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
regular business day 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 (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 Oppenheimer High Income Fund
Year Ended Year Ended Year Ended Year Ended
December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold 102,985,240 $ 102,985,240 108,040,063 $ 108,040,063 10,942,819 $113,254,844 4,550,213 $ 43,344,229
Dividends and
distributions
reinvested 1,805,107 1,805,107 2,400,795 2,400,795 743,446 7,814,552 503,051 4,788,432
Redeemed (101,836,198) (101,836,198) (110,877,219) (110,877,219)(7,432,492) (76,976,837) (3,769,287) (35,916,382)
Net increase
(decrease) 2,954,149 $ 2,954,149 (436,361) $ (436,361) 4,253,773 $ 44,092,559 1,283,977 $ 12,216,279
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Bond Fund Oppenheimer Capital Appreciation Fund
Year Ended Year Ended Year Ended Year Ended
December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold 4,694,025 $ 53,668,794 4,231,648 $ 46,316,359 4,925,361 $ 134,864,285 5,202,028 $117,665,463
Dividends and
distributions
reinvested 518,084 5,957,407 333,812 3,653,072 151,099 3,652,073 61,185 1,391,955
Redeemed (1,375,924) (15,753,286) (1,739,301) (18,999,383) (3,951,312) (106,719,894) (4,187,015) (94,424,981)
Net increase 3,836,185 $ 43,872,915 2,826,159 $ 30,970,048 1,125,148 $ 31,796,464 1,076,198 $ 24,632,437
</TABLE>
<PAGE>
Notes to Financial Statements (Continued)
Oppenheimer Variable Account Funds
<TABLE>
<CAPTION>
Oppenheimer Growth Fund Oppenheimer Multiple Strategies Fund
Year Ended Year Ended Year Ended Year Ended
December 31, 1993 December 31, 1992 December 31, 1993 December 31, 1992
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold 3,164,464 $ 53,547,991 3,914,464 $ 59,289,671 6,332,739 $ 84,477,261 3,370,345 $ 41,125,816
Dividends and
distributions
reinvested 66,987 1,107,299 36,133 532,602 644,161 8,601,104 517,276 6,262,811
Redeemed (2,180,502) (36,823,721) (3,251,618) (49,040,663) (1,742,975) (23,415,881) (1,516,315) (18,408,597)
Net increase 1,050,949 $ 17,831,569 698,979 $ 10,781,610 5,233,925 $ 69,662,484 2,371,306 $ 28,980,030
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Strategic
Oppenheimer Global Securities Fund Bond Fund
Year Ended Year Ended Year Ended
December 31, 1993 December 31, 1992 December 31, 1993(1)
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
Sold 4,921,273 $68,947,505 904,052 $ 9,354,667 2,316,566 $11,749,598
Dividends and
distributions
reinvested - - 6,630 70,278 30,366 155,087
Redeemed (419,042) (5,789,067) (203,135) (2,069,180) (416,974) (2,133,050)
Net increase 4,502,231 $63,158,438 707,547 $ 7,355,765 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 (Continued)
Oppenheimer Variable Account Funds
3 Unrealized Gains and Losses on Investments and Options Written
At December 31, 1993, net unrealized appreciation on investments and options
written consisted of the following:
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic
High Income Bond Appreciation Growth Strategies Securities Bond
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Gross appreciation $ 5,972,717 $ 4,941,642 $ 28,473,570 $11,310,180 $ 35,083,777 $17,370,800 $ 137,575
Gross depreciation (949,041) (526,065) (2,524,618) (2,174,060) (4,711,327) (1,198,182) (61,657)
Net unrealized
appreciation $ 5,023,676 $ 4,415,577 $ 25,948,952 $ 9,136,120 $ 30,372,450 $16,172,618 $ 75,918
</TABLE>
Purchases and sales of investment securities (excluding short-term
securities) for the year ended December 31, 1993 were
as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases $122,623,355 $61,383,497 $135,905,785 $20,752,925 $109,074,871 $74,160,213 $14,669,367
Sales $ 83,369,171 $28,260,510 $110,913,591 $ 5,059,824 $ 60,759,536 $20,095,636 $ 5,485,104
</TABLE>
4 Call Option Activity
Call option activity for the year ended December 31, 1993 was as follows:
<TABLE>
<CAPTION>
Oppenheimer Multiple Strategies Fund Oppenheimer Strategic Bond Fund
Number of Amount of Number of Amount of
Options Premiums Options Premiums
<S> <C> <C> <C> <C>
Options outstanding at December 31,
1992 1,314 $ 250,967 - $ -
Options written 5,764 1,484,776 500 7,110
Options cancelled in closing
purchase transactions (1,564) (438,445) - -
Options expired prior to exercise (1,431) (295,659) (500) (7,110)
Options exercised (1,698) (346,791) - -
Options outstanding at December 31,
1993 2,385 $ 654,848 - $ -
</TABLE>
The cost of cancelling options in closing purchase transactions was $514,481,
resulting in a net short-term capital loss of $76,036 for OMSF Premiums
received on expired options resulted in short-term capital gains of $295,659
and $7,110 for OMSF and OSBF, respectively.
<PAGE>
Notes to Financial Statements (Continued)
Oppenheimer Variable Account Funds
5 Forward Foreign Currency Exchange Contracts
At December 31, 1993, outstanding forward exchange currency contracts to
purchase and sell foreign currencies were as follows:
<TABLE>
<CAPTION>
Oppenheimer High Income Fund
Contract Valuation
Contracts to Purchase Expiration Date Amount as of December 31, 1993 Unrealized Appreciation
<S> <C> <C> <C> <C>
Canadian Dollar 1/10/94 $ 179,198 $ 181,246 $ 2,048
Contracts to Sell
Spanish Peseta 1/05/94 $1,092,780 $1,090,596 2,184
Canadian Dollar 1/10/94 2,198,670 2,198,059 611
Deutsche Mark 1/13/94 585,138 568,906 16,232
$3,876,588 $3,857,561 $21,075
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Bond Fund
Contract Valuation
Contracts to Purchase Expiration Date Amount as of December 31, 1993 Unrealized Appreciation
<S> <C> <C> <C> <C>
Canadian Dollar 1/10/94 $834,716 $844,254 $9,538
Contracts to Sell
Canadian Dollar 1/10/94 $844,489 $844,254 235
$9,773
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Global Securities Fund
Contract Valuation Unrealized Appreciation
Contracts to Sell Expiration Date Amount as of December 31, 1993 (Depreciation)
<S> <C> <C> <C> <C>
Austrian Schilling 1/20/94 $ 2,009,452 $ 1,981,062 $ 28,390
British Pound 1/20/94 1,992,023 1,997,666 (5,643)
Deutsche Mark 1/20/94 2,712,762 2,672,717 40,045
Finnish Markka 1/20/94 989,034 1,003,039 (14,005)
French Franc 1/20/94 3,166,097 3,181,513 (15,416)
Italian Lira 1/20/94 1,010,246 989,836 20,410
Netherlands Guilder 1/20/94 1,403,058 1,387,215 15,843
Norwegian Krone 1/20/94 1,409,615 1,388,872 20,743
Spanish Peseta 1/20/94 1,020,784 986,678 34,106
Swedish Krona 1/20/94 3,164,686 3,148,612 16,074
Swiss Franc 1/20/94 1,265,522 1,284,515 (18,993)
$20,143,279 $20,021,725 $121,554
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Strategic Bond Fund
Contract Valuation
Contracts to Sell Expiration Date Amount as of December 31, 1993 Unrealized Appreciation
<S> <C> <C> <C> <C>
Canadian Dollar 1/10/94 $199,879 $199,778 $ 101
Deutsche Mark 1/13/94 175,541 170,671 4,870
Italian Lira 1/13/94 156,527 152,791 3,736
Spanish Peseta 1/13/94 199,636 194,540 5,096
$731,583 $717,780 $13,803
</TABLE>
<PAGE>
Notes to Financial Statements (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) and
Confederation Life Insurance and Annuity 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>
Independent Auditors' Report
Oppenheimer Variable Account Funds
The Board of Trustees and Shareholders of
Oppenheimer Variable Account Funds:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of Oppenheimer Money Fund,
Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer Capital
Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple Strategies
Fund, Oppenheimer Global Securities Fund and Oppenheimer Strategic Bond Fund
(all of which are series of Oppenheimer Variable Account Funds) as of
December 31, 1993, the related statements of operations for the year then
ended, the statements of changes in net assets for the periods ended December
31, 1993 and 1992, and the financial highlights for the applicable periods
ended December 31, 1993, 1992, 1991, 1990, 1989, 1988, 1987, and 1986, June
30, 1986 and December 31, 1985. These financial statements and financial
highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of securities
owned at December 31, 1993 by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Oppenheimer Money
Fund, Oppenheimer High Income Fund, Oppenheimer Bond Fund, Oppenheimer
Capital Appreciation Fund, Oppenheimer Growth Fund, Oppenheimer Multiple
Strategies Fund, Oppenheimer Global Securities Fund and Oppenheimer Strategic
Bond Fund at December 31, 1993, the results of their operations, the changes
in their net assets, and the financial highlights for the respective stated
periods, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE
Denver, Colorado
January 21, 1994
<PAGE>
Oppenheimer Variable Account Funds
Officers and Trustees
James C. Swain, Chairman and Chief Executive Officer
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
George C. Bowen, Vice President, Secretary and Treasurer
Lynn M. Coluccy, 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.
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.
