<PAGE>
<PAGE>
OPPENHEIMER
VARIABLE ACCOUNT
FUNDS
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND
Statement of Investments
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT - 4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Sanwa Bank Ltd., 5.67%, 1/10/96 (Cost $2,999,928) $ 3,000,000 $ 2,999,928
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS - 10.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Bank, 5.45%, 5/17/96 3,000,000 2,938,579
-------------------------------------------------------------------------------------------------------------------------
FCC National Bank, 5.25%, 1/19/96 (1) 1,000,000 999,779
-------------------------------------------------------------------------------------------------------------------------
National Westminster Bank of Canada, 5.40%, 7/26/96 3,000,000 2,906,850
-----------------
Total Direct Bank Obligations (Cost $6,845,208) 6,845,208
- ------------------------------------------------------------------------------------------------------------------------------------
LETTERS OF CREDIT - 5.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of: 3,500,000 3,440,885
Banco Real, S.A.-Grand Cayman Branch, 5.63%, 4/18/96
(Cost $3,440,885)
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES - 61.4%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS - 4.7%
-------------------------------------------------------------------------------------------------------------------------
CoreStates Capital Corp., 5.71%, 2/15/96 3,000,000 2,978,587
- ------------------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS - 14.6%
-------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6.25%, 1/2/96 3,000,000 2,999,479
-------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.68%-5.70%, 2/29/96 3,000,000 2,971,975
-------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.53%, 9/30/96 (1) 3,600,000 3,600,000
-----------------
9,571,454
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE - 15.2%
-------------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 6.027%, 1/10/96 (1) 1,000,000 1,000,000
-------------------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp., 5.85%-5.90%, 1/30/96 3,000,000 2,985,742
-------------------------------------------------------------------------------------------------------------------------
Fleet Mortgage Group, Inc., 5.58%, 4/4/96 3,000,000 2,956,290
-------------------------------------------------------------------------------------------------------------------------
Heller Financial, Inc., 5.78%, 2/12/96 3,000,000 2,979,770
-----------------
9,921,802
- ------------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 5.0%
-------------------------------------------------------------------------------------------------------------------------
Mitsubishi International Corp., 5.65%, 1/5/96 3,300,000 3,297,928
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 6.1%
-------------------------------------------------------------------------------------------------------------------------
Beneficial Corp., 5.26%, 2/1/96 (1) 4,000,000 4,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 3.0%
-------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6.025%, 3/1/96 (1) 2,000,000 1,999,902
- ------------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL - 4.4%
-------------------------------------------------------------------------------------------------------------------------
WMX Technologies, Inc., 5.32%, 9/10/96 3,000,000 2,887,837
- ------------------------------------------------------------------------------------------------------------------------------------
SAVINGS & LOANS - 5.3%
-------------------------------------------------------------------------------------------------------------------------
Great Western Bank FSB, 5.72%-5.75%, 1/29/96 3,500,000 3,484,429
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL - 3.1%
-------------------------------------------------------------------------------------------------------------------------
Madison Funding Corp., 5.70%, 1/22/96 2,025,000 2,017,818
-----------------
Total Short-Term Notes (Cost $40,159,757) 40,159,757
</TABLE>
2
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER MONEY FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Student Loan Marketing Assn., guaranteeing commercial paper
of: Secondary Market Services, Inc., Education Loan Revenue
Nts., Series-1995A, 5.72%-5.75%, 1/12/96 (Cost $2,994,729) $ 3,000,000 $ 2,994,729
- ------------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale supported by Federal
Republic of Germany, guaranteeing commercial paper of:
Unibanco-Uniao de Brancos Brasileiros S.A.-Grand Cayman, 3,000,000 2,909,440
5.66%, 4/15/96 (Cost $2,909,440)
- ------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 5.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 5.90%, dated
12/29/95, to be repurchased at $3,597,357 on 1/2/96, collateralized
by U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04, with a value
of $1,951,392, U.S. Treasury Bonds, 6.25%-11.25%, 8/15/03-8/15/23,
with a value of $1,182,591, and U.S. Treasury Bills maturing
11/14/96, with a value of $536,288 (Cost $3,595,000) 3,595,000 3,595,000
-------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 96.3% 62,944,947
-------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 3.7 2,441,513
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% 65,386,460
================= =================
Short-term notes, direct bank obligations and letters of credit are
generally traded on a discount basis; the interest rate is the
discount rate received by the Trust 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, 1995.
See accompanying Notes to Financial Statements.
3
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments
DECEMBER 31, 1995
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Citibank CD:
19%, 1/19/96 (2) IDR 1,369,800,000 $ 599,101
27.40%, 3/22/96 (2) HUF 83,706,000 612,667
-------------------------------------------------------------------------------------------------------------------------
Indonesia (Republic of) Bank Negara CD, Zero Coupon, (2) (3) IDR 2,000,000,000 805,012
15.914%, 6/17/96
-------------------------------------------------------------------------------------------------------------------------
Krungthai Thanakit CD, Zero Coupon, 11.533%, 2/29/96 (2) (3) THB 10,000,000 387,586
-----------------
1,192,598
Total Certificates of Deposit (Cost $2,427,679) 2,404,366
- ------------------------------------------------------------------------------------------------------------------------------------
MORTGAGE-BACKED OBLIGATIONS - 2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIVATE - 2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL - 0.8%
-------------------------------------------------------------------------------------------------------------------------
CBA Mortgage Corp., Mtg. Pass-Through Certificates, Series (4) (5) 700,000 518,219
1993-C1, Cl. F, 7.154%, 12/25/03
-------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through (4) 496,835 509,644
Certificates, Series 1995-C2, Cl. D, 8.06%, 6/15/21
-----------------
1,027,863
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI-FAMILY - 1.8%
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1994-C1, Cl. E, 8%, 6/25/26 747,797 631,889
Series 1994-C2, Cl. G, 8%, 4/25/25 913,912 768,543
Series 1995-C1, Cl. F, 6.90%, 2/25/27 1,133,508 997,841
-----------------
2,398,273
-----------------
Total Mortgage-Backed Obligations (Cost $3,274,663) 3,426,136
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 5.1%
- ------------------------------------------------------------------------------------------------------------------------------------
TREASURY - 5.1%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.875%, 8/15/25 (Cost $6,531,094) 6,000,000 6,770,621
- ------------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 12.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos del Tesoro, Series I, 5.89%, 5/31/96 (4) 200,000 195,944
Medium-Term Nts., 8%, 8/9/97 NLG 800,000 495,325
Sr. Unsub. Unsec. Nts., 9.875%, 1/6/98 FRF 2,060,000 420,446
-------------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Interest Due and Unpaid Bonds, (4) 356,250 306,820
6.688%, 1/1/01
-------------------------------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds, 6.75%,
7/28/11 (4) (6) 200,000 92,750
-------------------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
7.75%, 9/1/99 CAD 641,000 492,321
Series A-76, 9%, 6/1/25 CAD 592,000 506,792
-------------------------------------------------------------------------------------------------------------------------
Central Bank of Costa Rica Principal Bonds, Series A, 6.25%, 500,000 310,000
5/21/10
-------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility (4) (7) 1,114,360 1,036,355
Bonds, 6.875%, 7/1/01
</TABLE>
4
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds:
7%, 11/10/24 DKK 6,300,000 $ 1,014,039
8%, 3/15/06 DKK 1,410,000 268,296
-------------------------------------------------------------------------------------------------------------------------
Ecuador (Republic of) Disc. Bonds, 6.812%, 2/28/25 (4) 520,000 264,550
-------------------------------------------------------------------------------------------------------------------------
European Investment Bank, 12.75% Debs., 2/15/00 ITL 206,000,000 140,404
-------------------------------------------------------------------------------------------------------------------------
France (Government of) Obligation Assimilable du Tresor FRF 556,000 124,403
Debs., 9.50%, 6/25/98
-------------------------------------------------------------------------------------------------------------------------
Germany (Republic of) Bonds, Series 94, 6.25%, 1/4/24 DEM 1,450,000 943,685
-------------------------------------------------------------------------------------------------------------------------
Hashemite Kingdom of Jordan Disc. Bonds, 6.437%,
12/23/23 (4) 1,000,000 620,000
-------------------------------------------------------------------------------------------------------------------------
International Bank for Reconstruction and Development Bonds, NZD 500,000 348,124
12.50%, 7/25/97
-------------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro ITL 320,000,000 203,611
Poliennali, 10.50%, 4/1/00
-------------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche (4) 1,500,000 999,375
A, 6.594%, 1/1/09
-------------------------------------------------------------------------------------------------------------------------
National Treasury Management Agency (Irish Government) IEP 140,000 235,831
Bonds, 8%, 10/18/00
-------------------------------------------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds, 10%, 7/15/97 NZD 1,230,000 826,403
-------------------------------------------------------------------------------------------------------------------------
Nordic Investment Bank, 11.30% Debs., 3/4/02 ITL 215,000,000 140,440
-------------------------------------------------------------------------------------------------------------------------
Norwegian Government Bonds, 9.50%, 10/31/02 NOK 4,400,000 824,375
-------------------------------------------------------------------------------------------------------------------------
Panama (Republic of) Debs., 6.75%, 5/10/02 (4) 175,000 149,953
-------------------------------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon, 29.984%, (3) PLZ 500,000 188,298
4/17/96
-------------------------------------------------------------------------------------------------------------------------
Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio PTE 85,000,000 613,096
Prazo, 11.875%, 2/23/00
-------------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of):
Debs., Bonos y Obligacion del Estado, 10.10%, 2/28/01 ESP 39,000,000 325,174
Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%,
3/25/00 ESP 49,000,000 441,551
-------------------------------------------------------------------------------------------------------------------------
Sweden (Kingdom of) Bonds, Series 1028, 11%, 1/21/99 SEK 3,500,000 568,290
-------------------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Bonds, 12%, 10/22/98 AUD 450,000 372,686
-------------------------------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement, Tranche B, (4) (7) JPY 65,000,000 534,044
1.563%, 9/30/00
-------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury:
Debs., 8.50%, 12/7/05 GBP 185,000 308,684
10%, 2/26/01 GBP 180,000 315,974
-------------------------------------------------------------------------------------------------------------------------
United Mexican States, Nacional Financiera SNC Nts., 13.60%, ESP 100,000,000 800,594
4/2/98
-------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Disc. Bonds, Series DL, 6.563%, (4) 1,500,000 828,750
12/18/07
-----------------
Total Foreign Government Obligations (Cost $16,009,093) 16,257,383
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, California Transportation Corridor Agency (3) 12,500,000 1,202,550
Toll Road Capital Appreciation Revenue Bonds, Jr. Lien, Zero
Coupon, 9%, 1/1/28 (Cost $747,374)
</TABLE>
5
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - 65.8%
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC INDUSTRY - 5.6%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.0%
-------------------------------------------------------------------------------------------------------------------------
NL Industries, Inc.:
0%/13% Sr. Sec. Disc. Nts., 10/15/05 (8) $ 800,000 618,000
11.75% Sr. Sec. Nts., 10/15/03 650,000 697,125
-----------------
1,315,125
- ------------------------------------------------------------------------------------------------------------------------------------
METALS/MINING - 0.8%
-------------------------------------------------------------------------------------------------------------------------
Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 454,000 492,590
-------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 9.875% Sr. Nts.,
2/15/02 300,000 309,750
-------------------------------------------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub. Nts., 1/15/05 230,000 262,775
-----------------
1,065,115
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER - 3.8%
-------------------------------------------------------------------------------------------------------------------------
Buckeye Cellulose Corp., 8.50% Sr. Sub. Nts., 12/15/05 250,000 257,812
-------------------------------------------------------------------------------------------------------------------------
Crown Paper Co., 11% Sr. Sub. Nts., 9/1/05 750,000 660,000
-------------------------------------------------------------------------------------------------------------------------
Domtar, Inc.:
11.25% Debs., 9/15/17 400,000 426,000
12% Nts., 4/15/01 250,000 295,313
-------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 500,000 517,500
-------------------------------------------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 9.25% First Priority Sr. Sec. (4) 400,000 402,000
Nts., 7/15/00
-------------------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.25% First Priority Sr. Sec. Nts., 500,000 477,500
2/1/02
-------------------------------------------------------------------------------------------------------------------------
Riverwood International Corp.:
10.75% Sr. Nts., 6/15/00 400,000 427,500
11.25% Sr. Sub. Nts., 6/15/02 200,000 215,000
-------------------------------------------------------------------------------------------------------------------------
Stone Container Corp.:
10.75% First Mtg. Nts., 10/1/02 1,300,000 1,358,500
10.75% Sr. Sub. Nts., 6/15/97 100,000 102,500
-----------------
5,139,625
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED - 12.3%
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS - 2.9%
-------------------------------------------------------------------------------------------------------------------------
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts., (3) 400,000 320,000
Series B, 10.901%, 5/27/98
-------------------------------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 1,650,000 1,823,250
8/1/02
-------------------------------------------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc., 0%/11.50% (8) 650,000 344,500
Sr. Sec. Disc. Nts., 8/15/03
-------------------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., (3) 350,000 260,750
12.333%, 3/15/98
-------------------------------------------------------------------------------------------------------------------------
Tag-Heuer International SA, 12% Sr. Sub. Nts., 12/15/05 (5) 500,000 501,875
-------------------------------------------------------------------------------------------------------------------------
Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04 600,000 600,000
-----------------
3,850,375
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD/BEVERAGES/TOBACCO - 0.8%
-------------------------------------------------------------------------------------------------------------------------
Consolidated Cigar Corp., 10.50% Sr. Sub. Nts., 3/1/03 400,000 418,000
-------------------------------------------------------------------------------------------------------------------------
Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 (7) 700,000 705,250
-----------------
1,123,250
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.1%
-------------------------------------------------------------------------------------------------------------------------
AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (9) 650,000 718,250
</TABLE>
6
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER RELATED (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------
Capstone Capital Corp., 10.50% Cv. Sub. Debs., 4/1/02 $ 1,600,000 1,918,000
-------------------------------------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02 (5) 400,000 434,000
-------------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series 500,000 548,750
A, 4/15/04
-------------------------------------------------------------------------------------------------------------------------
Quorum Health Group, Inc., 8.75% Sr. Sub. Nts., 11/1/05 300,000 311,625
-------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 10.125% Sr. Sub. Nts., 3/1/05 500,000 556,250
-------------------------------------------------------------------------------------------------------------------------
Total Renal Care, Inc., 0%/12% Sr. Sub. Disc. Nts., 8/15/04 (8) 994,000 959,210
-----------------
5,446,085
- ------------------------------------------------------------------------------------------------------------------------------------
HOTEL/GAMING - 2.3%
-------------------------------------------------------------------------------------------------------------------------
Bally's Casino Holdings, Inc., Zero Coupon Sr. Disc. Nts., (3) 600,000 483,000
10.252%, 6/15/98
-------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Promissory Nts. 9,500 --
-------------------------------------------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03 500,000 523,750
-------------------------------------------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr. Sec. Nts., (5) 400,000 434,000
11/15/02
-------------------------------------------------------------------------------------------------------------------------
Rio Hotel & Casino, Inc., 10.625% Sr. Sub. Nts., 7/15/05 450,000 463,500
-------------------------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 750,000 738,750
-------------------------------------------------------------------------------------------------------------------------
Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts.,
6/15/01 250,000 260,000
-------------------------------------------------------------------------------------------------------------------------
Trump Taj Mahal Funding, Inc., 11.35% Debs., Series A, (9) 200,000 189,217
11/15/99
-----------------
3,092,217
- ------------------------------------------------------------------------------------------------------------------------------------
LEISURE - 0.3%
-------------------------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., 12.25% Sr. Sub. Nts., Series A, 387,805 409,619
6/30/02
- ------------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS - 1.3%
-------------------------------------------------------------------------------------------------------------------------
Carrols Corp., 11.50% Sr. Nts., 8/15/03 430,000 436,450
-------------------------------------------------------------------------------------------------------------------------
Foodmaker, Inc.:
9.25% Sr. Nts., 3/1/99 200,000 192,500
9.75% Sr. Sub. Nts., 6/1/02 1,275,000 1,160,250
-----------------
1,789,200
- ------------------------------------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL - 0.6%
-------------------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 750,000 738,750
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 4.3%
- ------------------------------------------------------------------------------------------------------------------------------------
BP America, Inc., 10.875% Nts., 8/1/01 CAD 350,000 297,207
-------------------------------------------------------------------------------------------------------------------------
Chesapeake Energy Corp., 10.50% Sr. Nts., 6/1/02 500,000 526,250
-------------------------------------------------------------------------------------------------------------------------
Kelley Oil & Gas Corp., 13.50% Sr. Nts., 6/15/99 600,000 489,000
-------------------------------------------------------------------------------------------------------------------------
Maxus Energy Corp., 11.50% Debs., 11/15/15 800,000 830,000
-------------------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 750,000 853,125
-------------------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc.:
12.25% Sub. Debs., 2/1/05 250,000 280,000
9.375% Sub. Debs., 2/1/06 250,000 246,250
-------------------------------------------------------------------------------------------------------------------------
Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 200,000 208,000
-------------------------------------------------------------------------------------------------------------------------
Triton Energy Corp.:
0%/9.75% Sr. Sub. Disc. Nts., 12/15/00 (8) 200,000 187,500
Zero Coupon Sr. Sub. Disc. Nts., 10.318%, 11/1/97 (3) 1,200,000 1,041,000
-------------------------------------------------------------------------------------------------------------------------
United Meridian Corp., 10.375% Gtd. Sr. Sub. Nts.,
10/15/05 250,000 265,625
</TABLE>
7
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05 $ 500,000 $ 506,250
-----------------
5,730,207
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS & THRIFTS - 0.7%
-------------------------------------------------------------------------------------------------------------------------
Banco Bamerindus do Brasil SA:
10.50% Debs., 6/23/97 280,000 257,600
11% Sr. Unsub. Unsec. Bonds, 10/6/97 280,000 257,600
-------------------------------------------------------------------------------------------------------------------------
Banco Ganadero SA, Zero Coupon Sr. Unsub. Unsec. Nts., (3) (5) 250,000 239,520
9.941%, 6/15/96
-------------------------------------------------------------------------------------------------------------------------
Banco Mexicano SA, 8% Sr. Unsub. Unsec. Exchangeable 250,000 210,625
Medium-Term Nts., 11/4/98 -----------------
965,345
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 0.9%
-------------------------------------------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 250,000 212,500
-------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 (7) 244,994 269,494
-------------------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 300,000 282,750
-------------------------------------------------------------------------------------------------------------------------
Olympic Financial Ltd., 13% Sr. Nts., 5/1/00 350,000 383,250
-----------------
1,147,994
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 0.5%
-------------------------------------------------------------------------------------------------------------------------
Terra Nova Insurance (UK) Holdings PLC, 10.75% Sr. Nts., 600,000 657,000
7/1/05
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING RELATED - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS - 0.7%
-------------------------------------------------------------------------------------------------------------------------
Southdown, Inc., 14% Sr. Sub. Nts., Series B, 10/15/01 640,000 707,200
-------------------------------------------------------------------------------------------------------------------------
Walter Industries, Inc., 17% Sub. Nts., 1/1/96 (10) 400,000 254,000
-----------------
961,200
- ------------------------------------------------------------------------------------------------------------------------------------
HOMEBUILDERS/REAL ESTATE - 1.4%
-------------------------------------------------------------------------------------------------------------------------
Olympia & York First Canadian Place Ltd., 11% Debs., Series (11) CAD 1,000,000 472,929
3, 11/4/49
-------------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. 1,000,000 1,025,000
Nts., Series B, 4/1/02
-------------------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (5) 500,000 372,500
-----------------
1,870,429
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 3.1%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/ELECTRONICS/COMPUTERS - 1.9%
-------------------------------------------------------------------------------------------------------------------------
Berg Electronics Holdings Corp., 11.375% Sr. Sub. Debs., 500,000 562,500
5/1/03
-------------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12% Sr. Sub. Nts., 500,000 516,250
8/1/05
-------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp., 11% Sr. Nts., 8/15/00 500,000 555,000
-------------------------------------------------------------------------------------------------------------------------
Rohr, Inc., 11.625% Sr. Nts., 5/15/03 800,000 876,000
-----------------
2,509,750
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE - 1.2%
-------------------------------------------------------------------------------------------------------------------------
Aftermarket Technology Corp., 12% Sr. Sub. Nts., Series B, 500,000 532,500
8/1/04
-------------------------------------------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp.:
11.25% Sr. Nts., 10/1/02 500,000 482,500
9.50% Sr. Sec. Nts., 6/1/00 240,000 234,000
</TABLE>
8
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------
Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 $ 425,000 $ 357,000
-----------------
1,606,000
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.0%
-------------------------------------------------------------------------------------------------------------------------
Farley, Inc., Zero Coupon Sub. Debs., 14.151%, 12/30/12 (3) (7) 198,000 19,569
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA - 15.6%
- ------------------------------------------------------------------------------------------------------------------------------------
BROADCASTING - 4.1%
-------------------------------------------------------------------------------------------------------------------------
Act III Broadcasting, Inc., 9.625% Sr. Sub. Nts., 12/15/03 430,000 433,225
-------------------------------------------------------------------------------------------------------------------------
Argyle Television, Inc., 9.75% Sr. Sub. Nts., 11/1/05 150,000 149,250
-------------------------------------------------------------------------------------------------------------------------
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,115,000
-------------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 11.625% Sr. Sub. Nts., 10/1/02 (5) 1,250,000 1,262,500
-------------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc.:
10% Sr. Sub. Nts., 12/15/03 345,000 353,625
10% Sr. Sub. Nts., 9/30/05 400,000 411,000
-------------------------------------------------------------------------------------------------------------------------
Summit Communications Group, Inc., 10.50% Sr. Sub. Debs., 850,000 947,750
4/15/05
-------------------------------------------------------------------------------------------------------------------------
Univision Television Group, Inc., 11.75% Sr. Sub. Nts., 700,000 754,250
1/15/01 -----------------
5,426,600
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION - 7.2%
-------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc., 0%/14.50% Sr. Disc. Nts., 6/15/04 (8) 1,506,106 1,042,978
-------------------------------------------------------------------------------------------------------------------------
Australis Media Ltd., Units (each unit consists of $1,000 (8)(12) 1,500,000 1,095,000
principal amount of 0%/14% sr. sub. disc. nts., 5/15/03 and
one warrant to purchase 57.721 ordinary shares)
-------------------------------------------------------------------------------------------------------------------------
Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts., 7/15/04 (8) 1,500,000 1,070,625
-------------------------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 600,000 651,000
4/1/08
-------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 10.75% Sr. Sub. Debs., 4/1/04 500,000 531,250
-------------------------------------------------------------------------------------------------------------------------
Comcast UK Cable Partner Ltd., 0%/11.20% Sr. Disc.Debs., (8) 350,000 206,500
11/15/07
-------------------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 300,000 319,500
-------------------------------------------------------------------------------------------------------------------------
Diamond Cable Communications PLC:
0%/11.75% Sr. Disc. Nts., 12/15/05 (8) 500,000 297,500
0%/13.25% Sr. Disc. Nts., 9/30/04 (8) 100,000 70,750
-------------------------------------------------------------------------------------------------------------------------
Fundy Cable Ltd., 11% Sr. Sec. Second Priority Nts., 11/15/05 400,000 420,000
-------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., (4) 675,000 651,375
Series B, 11/1/03
-------------------------------------------------------------------------------------------------------------------------
International CableTel, Inc.:
0%/10.875% Sr. Deferred Coupon Nts., 10/15/03 (8) 100,000 71,750
0%/12.75% Sr. Deferred Coupon Nts., 4/15/05 (8) 350,000 223,125
-------------------------------------------------------------------------------------------------------------------------
People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04 (8) 350,000 202,125
-------------------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority 900,000 960,750
Debs., 12/1/07
-------------------------------------------------------------------------------------------------------------------------
TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07 (8) 1,000,000 606,250
-------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 300,000 353,034
</TABLE>
9
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Zero Coupon Sr. Sec. (3) $ 1,240,000 $ 775,000
Disc. Nts., 12.752%, 11/15/99
-----------------
9,548,512
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA - 3.2%
-------------------------------------------------------------------------------------------------------------------------
Ackerley Communications, Inc., 10.75% Sr. Sec. Nts., Series 750,000 802,500
A, 10/1/03
-------------------------------------------------------------------------------------------------------------------------
Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., (8) 1,000,000 675,000
6/1/04
-------------------------------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10 (5) 479,871 578,845
-------------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 500,000 520,000
-------------------------------------------------------------------------------------------------------------------------
Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03 300,000 292,500
-------------------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (8) 1,250,000 1,031,250
9.75% Sr. Sec. Nts., 8/1/00 350,000 371,875
-----------------
4,271,970
- ------------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT/FILM - 1.2%
-------------------------------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01 (13) 1,600,000 1,576,000
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 0.6%
-------------------------------------------------------------------------------------------------------------------------
MacAndrews & Forbes Group, Inc., 12.25% Sub. Nts., 7/1/96 750,000 757,500
- ------------------------------------------------------------------------------------------------------------------------------------
SERVICES - 0.3%
-------------------------------------------------------------------------------------------------------------------------
Protection One, Inc., 0%/13.625% Sr. Disc. Nts., 6/30/05 (8) 500,000 405,000
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL - 2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 0.9%
-------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03 630,000 589,050
-------------------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 300,000 294,000
-------------------------------------------------------------------------------------------------------------------------
United Stationers Supply Co., 12.75% Sr. Sub. Nts., 5/1/05 300,000 325,500
-----------------
1,208,550
- ------------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS - 1.7%
-------------------------------------------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 1,500,000 1,305,000
-------------------------------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc., 11.50% Sr. Nts., 2/1/03 (9) 533,800 519,491
-------------------------------------------------------------------------------------------------------------------------
Penn Traffic Co., 10.25% Sr. Nts., 2/15/02 400,000 383,000
-----------------
2,207,491
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION - 0.9%
-------------------------------------------------------------------------------------------------------------------------
American International Group, Inc., 11.70% Unsec. Unsub. ITL 690,000,000 458,326
Bonds, 12/4/01
-------------------------------------------------------------------------------------------------------------------------
Atlas Air, Inc., 12.25% Pass-Through Certificates, 12/1/02 750,000 768,750
-----------------
1,227,076
- ------------------------------------------------------------------------------------------------------------------------------------
RAILROADS - 1.1%
-------------------------------------------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. (8) 2,200,000 1,463,000
Disc. Nts., Series B, 12/15/03
- ------------------------------------------------------------------------------------------------------------------------------------
SHIPPING - 0.6%
-------------------------------------------------------------------------------------------------------------------------
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 750,000 783,750
</TABLE>
10
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.6%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 2.5%
-------------------------------------------------------------------------------------------------------------------------
California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04 (8) $ 1,000,000 $ 947,500
-------------------------------------------------------------------------------------------------------------------------
El Paso Electric Co.:
10.75% Lease Obligation Bonds, 4/1/13 (10) 250,000 169,683
9.375% Lease Obligation Bonds, 10/1/96 (10) 100,000 67,761
-------------------------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds, 500,000 515,685
Series 1986B, 1/15/16
-------------------------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.30% Lease Obligation Bonds, 1,000,000 1,021,561
Series 1986A, 1/15/14
-------------------------------------------------------------------------------------------------------------------------
Subic Power Corp., 9.50% Sr. Sec. Nts., 12/28/08 672,413 642,155
-----------------
3,364,345
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 12.1%
-------------------------------------------------------------------------------------------------------------------------
A+ Network, Inc., 11.875% Sr. Sub. Nts., 11/1/05 750,000 759,375
-------------------------------------------------------------------------------------------------------------------------
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04 (5) (8) 1,500,000 1,065,000
-------------------------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc.:
Units (each unit consists of $1,000 principal amount of zero (12) 200,000 126,000
coupon sr. disc. nts., 8/15/00 and one warrant to purchase
1.126 shares of common stock)
Zero Coupon Sr. Disc. Nts., 12.844%, 8/15/00 (3) 2,250,000 1,355,625
-------------------------------------------------------------------------------------------------------------------------
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (8) 2,000,000 1,602,500
-------------------------------------------------------------------------------------------------------------------------
Cencall Communications Corp., 0%/10.125% Sr. Disc. Nts., (8) 1,000,000 565,000
1/15/04
-------------------------------------------------------------------------------------------------------------------------
Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.889%, (3) 850,000 656,625
3/5/00
-------------------------------------------------------------------------------------------------------------------------
Comunicacion Celular SA, Units (each unit consists of $1,000 (5)(8)(12) 750,000 427,500
principal 0%/13.125% sr. deferred coupon bond, 11/15/03 and
one warrant to purchase 12,860 shares of common stock at
$1.32 per 1,000 shares)
-------------------------------------------------------------------------------------------------------------------------
Geotek Communications, Inc., 0%/15% Sr. Sec. Disc. Nts., (8) 1,750,000 796,250
7/15/05
-------------------------------------------------------------------------------------------------------------------------
GST Telecommunications, Inc., Units (each unit consists of (5)(8)(12) 1,305,000 681,500
eight 0%/13.875% sr. disc. nts., 12/15/05 and one 0%/13.875%
cv. sr. sub. disc. nt., 12/15/05)
-------------------------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp., (8) 1,800,000 1,539,000
0%/11.375% Sr. Sub. Disc. Nts., 10/1/00
-------------------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp., 0%/14% Sr. Disc. Nts., 5/15/02 (8) 950,000 318,250
-------------------------------------------------------------------------------------------------------------------------
IntelCom Group (USA), Inc., 0%/13.50% Sr. Disc. Nts., 9/15/05 (5)(8) 1,800,000 1,039,500
-------------------------------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (8) 1,250,000 1,006,250
-------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/11.50% Sr. Disc. Nts., 9/1/03 (8) 1,400,000 866,250
-------------------------------------------------------------------------------------------------------------------------
Omnipoint Corp., Units (each unit represents $1,000 (5)(9)(12) 750,000 743,925
principal amount of 10% cv. sub. nts., 11/29/00 and one
warrant to purchase a share of common stock)
-------------------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp.:
0%/12.25% Sr. Sub. Disc. Nts., 10/1/03 (8) 500,000 388,750
0%/14% Sr. Sub. Disc. Nts., 11/15/01 (8) 2,000,000 1,760,000
</TABLE>
11
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
CORPORATE BONDS AND NOTES (CONTINUED) AMOUNT(1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (CONTINUED)
-------------------------------------------------------------------------------------------------------------------------
WinStar Communications, Inc., Units (each unit consists of (5)(8)(12) $ 300,000 $ 475,500
two $1,000 principal amount of 0%/14% sr. disc.
nts.,10/15/05 and one cv. sr. sub. disc. nts., 10/15/05)
-----------------
16,172,800
-----------------
Total Corporate Bonds and Notes (Cost $84,569,662) 87,849,449
SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 1.4%
- ------------------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. (14) 6,800 98,600
-------------------------------------------------------------------------------------------------------------------------
Berg Electronics Corp. (5) 46,220 277,320
-------------------------------------------------------------------------------------------------------------------------
Celcaribe SA (5)(14) 203,250 241,868
-------------------------------------------------------------------------------------------------------------------------
ECM Fund, L.P.I. (7) 150 150,000
-------------------------------------------------------------------------------------------------------------------------
EchoStar Communications Corp., Cl. A 6,000 109,125
-------------------------------------------------------------------------------------------------------------------------
Equitable Bag, Inc. (14) 3,723 9,307
-------------------------------------------------------------------------------------------------------------------------
Gillett Holdings, Inc., Cl. 2 (7)(14) 10,355 207,100
-------------------------------------------------------------------------------------------------------------------------
Grand Union Co. (14) 26,511 198,832
-------------------------------------------------------------------------------------------------------------------------
Gulfstream Holding, Inc. 56 --
-------------------------------------------------------------------------------------------------------------------------
Gulfstream Housing Corp. 27,850 --
-------------------------------------------------------------------------------------------------------------------------
Kash 'N Karry Food Stores, Inc. (14) 11,292 296,415
-------------------------------------------------------------------------------------------------------------------------
Triangle Wire & Cable, Inc. (7) 21,111 21,111
-------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Cl. A (14) 9,000 132,750
-------------------------------------------------------------------------------------------------------------------------
Walter Industries, Inc. (14) 4,837 63,486
-----------------
Total Common Stocks (Cost $1,554,075) 1,805,914
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS - 5.2%
- ------------------------------------------------------------------------------------------------------------------------------------
BankAmerica Corp., 8.375%, Series K 13,000 336,375
-------------------------------------------------------------------------------------------------------------------------
Berg Electronics Corp., $3.3438, Series E (9) 14,035 392,980
-------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv., Series I 20,000 545,000
-------------------------------------------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 7,000 759,500
-------------------------------------------------------------------------------------------------------------------------
Fidelity Federal Bank, 12% Non-Cum. Exchangeable Perpetual 20,000 507,500
Preferred Stock, Series A
-------------------------------------------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 8,500 955,188
-------------------------------------------------------------------------------------------------------------------------
Glendale Federal Bank, F.S.B., 8.75% Non-Cum. Cv., Series E 16,500 746,625
-------------------------------------------------------------------------------------------------------------------------
J. Ray McDermott, SA 10,965 195,999
-------------------------------------------------------------------------------------------------------------------------
K-III Communications Corp., $11.625 Exchangeable, Series B (9) 7,511 747,365
-------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum Corp., 8.255% Provisionally Redeemable 6,000 77,250
Income Debt Exchangeable for Stock
-------------------------------------------------------------------------------------------------------------------------
Navistar International Corp., $6.00 Cv., Series G 2,500 135,625
-------------------------------------------------------------------------------------------------------------------------
Pantry Pride, Inc., $14.875 Exchangeable, Series B 2,000 207,000
-------------------------------------------------------------------------------------------------------------------------
Prime Retail, Inc., $19.00 Cv., Series B 17,000 301,750
-------------------------------------------------------------------------------------------------------------------------
SDW Holdings Corp., Units (each unit consists of ten shares (5)(12) 3,750 1,087,500
of sr. exchangeable preferred stock and one cl. B warrant to
purchase one share of common stock)
-----------------
Total Preferred Stocks (Cost $6,311,457) 6,995,657
</TABLE>
12
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION> MARKET VALUE
UNITS (NOTE 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 6,000 $ 36,000
-------------------------------------------------------------------------------------------------------------------------
Ames Department Stores, Inc.:
Excess Cash Flow Payment Certificates, Series AG-7A (7) 12,400 124
Litigation Trust (7) 39,658 397
-------------------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc. Wts., Exp. 2/99 21,112 211
-------------------------------------------------------------------------------------------------------------------------
Casino America, Inc. Wts., Exp. 11/96 1,631 163
-------------------------------------------------------------------------------------------------------------------------
Cellular Communications International, Inc. Wts., Exp. 8/03 2,250 50,625
-------------------------------------------------------------------------------------------------------------------------
Digicon, Inc. Wts., Exp. 7/96 1,566 98
-------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp. 10/03 (5) 630 3,150
-------------------------------------------------------------------------------------------------------------------------
Foamex LP/JPS Automotive Corp. Wts., Exp. 7/99 500 2,500
-------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 26,410 198,075
-------------------------------------------------------------------------------------------------------------------------
Geotek Communications, Inc. Wts., Exp. 7/05 (5) 52,500 105,000
-------------------------------------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc. Wts., Exp. 11/99 (5) 400 10,000
-------------------------------------------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 (5) 950 --
-------------------------------------------------------------------------------------------------------------------------
IntelCom Group, Inc. Wts., Exp. 9/05 (5) 5,940 23,760
-------------------------------------------------------------------------------------------------------------------------
Jewel Recovery LP, Participation Units of Limited Partners'
Interest 2,360 --
-------------------------------------------------------------------------------------------------------------------------
People's Choice TV Corp. Wts., Exp. 6/00 350 3,500
-------------------------------------------------------------------------------------------------------------------------
Protection One, Inc. Wts.:
Exp. 11/03 28,000 276,500
Exp. 6/05 1,600 7,200
-------------------------------------------------------------------------------------------------------------------------
Southland Corp. Wts., Exp. 3/96 400 500
-------------------------------------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96 (5) 744 37
-------------------------------------------------------------------------------------------------------------------------
Trizec Corp. Wts., Exp. 7/99 CAD 3,970 4,134
-------------------------------------------------------------------------------------------------------------------------
UGI Corp. Wts., Exp. 3/98 6,000 300
-------------------------------------------------------------------------------------------------------------------------
United International Securities Ltd. Wts., Exp. 11/99 1,440 41,130
----------------
Total Rights, Warrants and Certificates (Cost $308,096) 763,404
DATE STRIKE CONTRACTS
- ------------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS PURCHASED - 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement, Tranche Jan. $60.25 1,000 1
A, 6.594%, 1/1/09, Put Opt. (Cost $19,000)
PRINCIPAL
AMOUNT (1)
- ------------------------------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Goldman, Sachs & Co. Argentina Local Market Securities (7) $ 782,608 765,000
Trust, 11.30%, 4/1/00 (representing debt of Argentina
(Republic of) Bonos del Tesoro Bonds, Series 10, 5.742%, 4/1/00 and
an interest rate swap between Goldman Sachs and the Trust)
-------------------------------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked (3) 200,000 197,000
Nts., 11.318%, 2/15/96 (indexed to the Nota Do Tesouro
Nacional, Zero Coupon, 2/15/96)
-------------------------------------------------------------------------------------------------------------------------
United Mexican States, Linked Nts. (indexed to the greater (5) 300,000 305,475
of Cetes Option Amount or USD LIBOR Option Amount, 11/27/96)
----------------
Total Structured Instruments (Cost $1,279,946) 1,267,475
</TABLE>
13
<PAGE>
<PAGE>
OPPENHEIMER VARIABLE ACCOUNT FUNDS - OPPENHEIMER HIGH INCOME FUND
Statement of Investments (Continued)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT (1) (NOTE 1)
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95,
to be repurchased at $2,781,822 on 1/2/96, collateralized by U.S.
Treasury Nts., 6.875%, 8/31/99, with a value of $993,387, and U.S.
Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with a value of
$1,871,730 (Cost $2,780,000) $ 2,780,000 $ 2,780,000
-------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $125,812,139) 98.6% 131,522,956
-------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.4 1,927,824
------------------ ----------------
NET ASSETS 100.0% 133,450,780
=================== =================
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted
in the following currencies:
AUD - Australian Dollar ITL - Italian Lira
CAD - Canadian Dollar JPY - Japanese Yen
DEM - German Deutsche Mark NLG - Netherlands Guilder
DKK - Danish Krone NOK - Norwegian Krone
ESP - Spanish Peseta NZD - New Zealand Dollar
FRF - French Franc PLZ - Polish Zloty
GBP - British Pound Sterling PTE - Portuguese Escudo
HUF - Hungarian Forint SEK - Swedish Krona
IDR - Indonesian Rupiah THB - Thai Baht
IEP - Irish Punt
2. Indexed instrument for which the principal amount and/or interest
due at maturity is affected by the relative value of a foreign
currency.
3. For zero coupon bonds, the interest rate shown is the effective
yield on the date of purchase.
4. Represents the current interest rate for a variable rate
security.
5. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines
established by the Board of Trustees. These securities amount to
$10,828,494 or 8.11% of the Fund's net assets, at December 31, 1995.
6. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
Principal
Subject Expiration Exercise Premium Market Value
To Call Date Price Received See Note 1
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Bulgaria (Republic of) Interest Arrears
Bonds, 6.75%, 7/28/11 100,000 1/96 $45 $1,430 $1,390
</TABLE>
7. Identifies issues considered to be illiquid - See Note 7 of Notes
to Financial Statements.
8. Denotes a step bond: a zero coupon bond that converts to a fixed
rate of interest at a designated future date.
9. Interest or dividend is paid in kind.
10. Non-income producing--issuer is in default of interest payment.
11. Partial interest payment received.
12. Units may be comprised of several components, such as debt and
equity and/or warrants to purchase equity at some point in the
future. For units which represent debt securities, principal amount
disclosed represents total underlying principal.
13. Represents the current interest rate for an increasing rate
security.
14. Non-income producing security.
See accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Amount(1) (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit - 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Citibank CD:
19%, 1/19/96 (2) IDR 2,853,750,000 $ 1,248,126
27.40%, 3/22/96 (2) HUF 139,510,000 1,021,112
- ------------------------------------------------------------------------------------------------------------------------------------
Indonesia (Republic of) Bank Negara CD, Zero Coupon,
15.914%, 6/17/96 (2)(3) IDR 2,000,000,000 805,011
- ------------------------------------------------------------------------------------------------------------------------------------
Krungthai Thanakit CD, Zero Coupon, 11.533%, 2/29/96
(2)(3) THB 25,000,000 968,966
-----------------
Total Certificates of Deposit (Cost $4,063,089) 4,043,215
- ------------------------------------------------------------------------------------------------------------------------------------
Mortgage-Backed Obligations - 18.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Government Agency - 11.5%
- ------------------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored - 7.7%
------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
7%, 11/1/25 1,888,319 1,903,653
7%, 11/1/25 7,990,664 8,055,548
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates, 8.75%
11/25/05 3,000,000 3,262,500
Gtd. Real Estate Mtg. Investment Conduit Pass-Through
Certificates, 10.40%, 4/25/19 2,000,000 2,193,120
Interest-Only Stripped Mtg.-Backed Security, Trust 257, Cl.
2, 11.79%, 2/1/24 (4) 2,638,404 739,990
-----------------
16,154,811
- ------------------------------------------------------------------------------------------------------------------------------------
GNMA/Guaranteed - 3.8%
------------------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
6%, 10/20/25 4,986,569 5,036,435
6%, 10/20/24 2,939,612 3,009,429
-----------------
8,045,864
- ------------------------------------------------------------------------------------------------------------------------------------
Private - 6.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial - 3.1%
------------------------------------------------------------------------------------------------------------------------------
FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass-
Through Certificates, Series 1994-C1:
Cl. 2-D, 8.70%, 9/25/25 (5) 1,500,000 1,617,187
Cl. 2-E, 8.70%, 9/25/25 (5) 1,500,000 1,604,531
------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through
Certificates, Series 1995-C2, Cl. C, 7.70%, 6/15/21 (6) 993,670 1,025,033
------------------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates:
Series 1992-CHF, Cl. C, 8.25%, 12/25/20 1,053,588 1,079,599
Series 1992-CHF, Cl. E, 8.25%, 12/25/20 931,256 913,795
Series 1994-C1, Cl. A, 7.25%, 6/25/26 302,117 301,740
-----------------
6,541,885
- ------------------------------------------------------------------------------------------------------------------------------------
Multi-Family - 3.7%
------------------------------------------------------------------------------------------------------------------------------
Countrywide Funding Corp., Series 1993-12, Cl. Bl, 1,000,000 942,500
6.625%, 2/25/24
</TABLE>
15
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Mortgage-Backed Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Private (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Multi-Family (Continued)
------------------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates:
Series 1991-M5, Cl. A, 9%, 3/25/17 $ 2,295,071 $ 2,429,907
Series 1994-C1, Cl. C, 8%, 6/25/26 1,500,000 1,603,594
Series 1995-C1, Cl. D, 6.90%, 2/25/27 3,000,000 2,865,000
-----------------
7,841,001
-----------------
Total Mortgage-Backed Obligations (Cost $37,340,024) 38,583,561
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Obligations - 40.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Treasury - 40.3%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6.875%, 8/15/25 8,000,000 9,027,495
7.125%, 2/15/23 3,000,000 3,427,500
8%, 11/15/21 5,000,000 6,259,375
------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6%, 12/31/97 3,000,000 3,047,811
6.25%, 5/31/00 10,000,000 10,343,750
6.375%, 6/30/97 1,000,000 1,017,187
6.50%, 5/15/05-8/15/05 18,000,000 19,182,809
6.875%, 3/31/00 5,000,000 5,289,065
7.25%, 5/15/04-8/15/04 7,000,000 7,787,812
7.375%, 11/15/97 2,000,000 2,076,250
7.50%, 2/15/05 5,000,000 5,676,559
7.75%, 12/31/99-1/31/00 6,000,000 6,519,374
7.875%, 6/30/96-11/15/04 3,000,000 3,329,999
9.25%, 8/15/98 2,000,000 2,193,124
-----------------
Total U.S. Government Obligations (Cost $79,215,729) 85,178,110
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign Government Obligations - 13.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Australia (Commonwealth of) Bonds, 12.50%, 1/15/98 AUD 960,000 782,889
------------------------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
7.75%, 9/1/99 CAD 347,000 266,514
Series A-76, 9%, 6/1/25 CAD 321,000 274,798
------------------------------------------------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated Loan Facility
Bonds, 6.875%, 7/1/01 (6)(7) 1,714,400 1,594,392
------------------------------------------------------------------------------------------------------------------------------
Corporacion Andina de Fomento Sr. Unsec. Debs.:
6.625%, 10/14/98 (5) 1,000,000 999,375
7.25%, 4/30/98 (5) 1,000,000 998,125
------------------------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds:
7%, 11/10/24 DKK 6,300,000 1,014,039
8%, 3/15/06 DKK 1,880,000 357,728
------------------------------------------------------------------------------------------------------------------------------
Financiera Energetica Nacional:
Nts., 6.625%, 12/13/96 2,350,000 2,347,062
SA Medium-Term Nts., 9%, 11/8/99 400,000 419,500
------------------------------------------------------------------------------------------------------------------------------
France (Government of) Obligation Assimilable du Tresor
Debs., 9.50%, 6/25/98 FRF 1,196,000 267,600
</TABLE>
16
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Foreign Government Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Germany (Republic of) Bonds:
7.75%, 10/1/04 DEM $ 5,350,000 $ 4,106,853
Series 94, 6.25%, 1/4/24 DEM 2,900,000 1,887,370
------------------------------------------------------------------------------------------------------------------------------
International Bank for Reconstruction and Development
Bonds, 12.50%, 7/25/97 NZD 1,000,000 696,248
------------------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro
Poliennali, 10.50%, 4/1/00 ITL 4,515,000,000 2,872,821
------------------------------------------------------------------------------------------------------------------------------
National Treasury Management Agency (Irish Government)
Bonds, 8%, 10/18/00 IEP 405,000 682,226
------------------------------------------------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds, 10%, 7/15/97 NZD 1,720,000 1,155,621
------------------------------------------------------------------------------------------------------------------------------
Norwegian Government Bonds, 9.50%, 10/31/02 NOK 11,340,000 2,124,639
------------------------------------------------------------------------------------------------------------------------------
Poland (Republic of) Debs., 7.75%, 7/13/00 1,500,000 1,530,000
------------------------------------------------------------------------------------------------------------------------------
Portugal (Republic of) Gtd. Bonds, Obrigicion do tes Medio
Prazo, 11.875%, 2/23/00 PTE 65,000,000 468,838
------------------------------------------------------------------------------------------------------------------------------
South Africa (Republic of) Debs., 9.625%, 12/15/99 1,000,000 1,082,500
------------------------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del
Estado, 12.25%, 3/25/00 ESP 156,000,000 1,405,755
------------------------------------------------------------------------------------------------------------------------------
Sweden (Kingdom of) Bonds, Series 1028, 11%, 1/21/99 SEK 4,400,000 714,422
------------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury:
Debs., 8.50%, 12/7/05 GBP 337,000 562,305
Nts., 10%, 2/26/01 GBP 310,000 544,176
------------------------------------------------------------------------------------------------------------------------------
Western Australia Treasury Corp. Gtd. Bonds, Series 98,
12.50%, 4/1/98 AUD 200,000 164,222
-----------------
Total Foreign Government Obligations (Cost $28,915,289) 29,320,018
- ------------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Pinole, California Redevelopment Agency Tax Allocation
Taxable Bonds, Pinole Vista Redevelopment, Series B,
8.35%, 8/1/17 670,000 733,429
------------------------------------------------------------------------------------------------------------------------------
Dade County, Florida Educational Facilities Authority:
Exchangeable Revenue Bonds, University of Miami
Prerefunded, MBIA Insured, 7.65%, 4/1/10 175,000 201,294
Revenue Bonds, University of Miami, MBIA Insured, 7.65%
4/1/10 205,000 230,154
Taxable Exchange Revenue Bonds, University of Miami,
MBIA Insured, 9.70%, 4/1/10 120,000 134,724
------------------------------------------------------------------------------------------------------------------------------
Port of Portland, Oregon Special Obligation Taxable
Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 500,000 546,886
-----------------
Total Municipal Bonds and Notes (Cost $1,663,728) 1,846,487
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes - 16.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Industry - 2.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals - 1.2%
------------------------------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 2,100,000 2,389,670
- ------------------------------------------------------------------------------------------------------------------------------------
Paper - 1.5%
------------------------------------------------------------------------------------------------------------------------------
Boise Cascade Corp., 9.90% Nts., 3/15/00 750,000 850,994
------------------------------------------------------------------------------------------------------------------------------
Noranda Forest, Inc., 11% Debs., 7/15/98 CAD 1,000,000 805,629
</TABLE>
17
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Industry (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals (Continued)
------------------------------------------------------------------------------------------------------------------------------
Scotia Pacific Holding Co., 7.95% Timber Collateralized
Nts., 7/20/15 $ 1,546,483 $ 1,571,753
-----------------
3,228,376
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Related - 2.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Food/Beverages/Tobacco - 0.8%
------------------------------------------------------------------------------------------------------------------------------
Dr. Pepper/Seven-Up Cos., Inc., 0%/11.50% Sr. Sub. Disc.
Nts., 11/1/02 (8) 1,315,000 1,239,388
------------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc., 8.875% Nts., 7/1/96 500,000 507,702
-----------------
1,747,090
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 0.6%
------------------------------------------------------------------------------------------------------------------------------
R.P. Scherer Corp., 6.75% Sr. Nts., 2/1/04 1,250,000 1,189,530
- ------------------------------------------------------------------------------------------------------------------------------------
Hotel/Gaming - 0.2%
------------------------------------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc., 6.75% Nts., 7/15/03 375,000 379,439
- ------------------------------------------------------------------------------------------------------------------------------------
Textile/Apparel - 0.5%
------------------------------------------------------------------------------------------------------------------------------
Fruit of the Loom, Inc., 7% Debs., 3/15/11 1,097,000 1,108,417
- ------------------------------------------------------------------------------------------------------------------------------------
Toys - 0.5%
------------------------------------------------------------------------------------------------------------------------------
Mattel, Inc., 6.875% Sr. Nts., 8/1/97 1,000,000 1,017,927
- ------------------------------------------------------------------------------------------------------------------------------------
Energy - 3.3%
- ------------------------------------------------------------------------------------------------------------------------------------
BP America, Inc., 10.875% Nts., 8/1/01 CAD 650,000 551,957
------------------------------------------------------------------------------------------------------------------------------
Coastal Corp.:
11.75% Sr. Debs., 6/15/06 2,000,000 2,126,614
9.75% Sr. Debs., 8/1/03 200,000 238,950
------------------------------------------------------------------------------------------------------------------------------
Enron Corp., 9.875% Debs., 6/15/03 375,000 457,052
------------------------------------------------------------------------------------------------------------------------------
McDermott, Inc., 9.375% Nts., 3/15/02 400,000 454,472
------------------------------------------------------------------------------------------------------------------------------
Mitchell Energy & Development Corp., 9.25% Sr. Nts.
1/15/02 1,000,000 1,146,689
------------------------------------------------------------------------------------------------------------------------------
Sonat, Inc., 9.50% Nts., 8/15/99 250,000 278,659
------------------------------------------------------------------------------------------------------------------------------
Southwest Gas Corp., 9.75% Debs., Series F, 6/15/02 500,000 585,022
------------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc.:
10% Debs., 3/15/08 400,000 497,656
7.875% Nts., 10/1/02 650,000 709,766
-----------------
7,046,837
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Services - 1.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Banks & Thrifts - 1.0%
------------------------------------------------------------------------------------------------------------------------------
Banco Ganadero SA, Zero Coupon Sr. Unsub. Unsec. Nts.
9.931%, 6/15/96 (3)(5) 500,000 479,040
------------------------------------------------------------------------------------------------------------------------------
BankAmerica Corp., 7.50% Sr. Nts., 3/15/97 100,000 102,362
------------------------------------------------------------------------------------------------------------------------------
Chemical New York Corp., 9.75% Sub. Capital Nts., 6/15/99 200,000 224,742
------------------------------------------------------------------------------------------------------------------------------
First Chicago Corp.:
11.25% Sub. Nts., 2/20/01 750,000 923,495
9% Sub. Nts., 6/15/99 150,000 165,177
------------------------------------------------------------------------------------------------------------------------------
First Chicago NBD Bancorp, 7.25% Sub. Debs., 8/15/04 165,000 176,247
------------------------------------------------------------------------------------------------------------------------------
First Fidelity Bancorporation, 8.50% Sub. Capital Nts.,
4/1/98 100,000 105,456
-----------------
2,176,519
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial - 0.7%
------------------------------------------------------------------------------------------------------------------------------
American Car Line Co., 8.25% Equipment Trust
Certificates, Series 1993-A, 4/15/08 627,000 659,134
</TABLE>
18
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Services (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial (Continued)
------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 8.375% Nts., 2/15/99 $ 700,000 $ 744,198
-----------------
1,403,332
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Automotive - 0.9%
------------------------------------------------------------------------------------------------------------------------------
Chrysler Corp., 10.95% Debs., 8/1/17 800,000 898,110
------------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.50% Nts., 12/15/01 300,000 289,647
7.75% Nts., 4/15/97 700,000 713,318
-----------------
1,901,075
- ------------------------------------------------------------------------------------------------------------------------------------
Media - 3.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Cable Television - 2.2%
------------------------------------------------------------------------------------------------------------------------------
Time Warner Entertainment LP/Time Warner, Inc., 8.375%
Sr. Debs., 3/15/23 1,850,000 2,009,405
------------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 2,200,000 2,588,914
-----------------
4,598,319
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Media - 1.3%
------------------------------------------------------------------------------------------------------------------------------
GSPI Corp., 10.15% First Mtg. Bonds, 6/24/10 (5) 1,151,691 1,389,228
------------------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc.:
10.125% Gtd. Sr. Debs., 10/15/12 500,000 608,130
12% Sr. Nts., 12/15/01 500,000 558,673
------------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.15% Debs., 2/1/23 300,000 342,093
-----------------
2,898,124
- ------------------------------------------------------------------------------------------------------------------------------------
Entertainment/Film - 0.4%
------------------------------------------------------------------------------------------------------------------------------
Columbia Pictures Entertainment, Inc., 9.875% Sr. Sub.
Nts., 2/1/98 500,000 541,242
------------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co., 10% Nts., 6/15/01 250,000 254,730
-----------------
795,972
- ------------------------------------------------------------------------------------------------------------------------------------
Retail - 0.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Drug Stores - 0.3%
------------------------------------------------------------------------------------------------------------------------------
Hook-SupeRx, Inc., 10.125% Sr. Nts., 6/1/02 600,000 657,191
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Railroads - 0.2%
------------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp., 9.65% Medium-Term Nts., 4/17/00 400,000 455,554
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 1.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.0%
------------------------------------------------------------------------------------------------------------------------------
Commonwealth Edison Co., 6.50% Nts., 7/15/97 775,000 779,528
------------------------------------------------------------------------------------------------------------------------------
Long Island Lighting Co., 7% Nts., 3/1/04 150,000 144,552
------------------------------------------------------------------------------------------------------------------------------
New Zealand Electric Corp., 10% Debs., 6/15/9 NZD 650,000 426,765
------------------------------------------------------------------------------------------------------------------------------
Public Service Co. of Colorado, 8.75% First Mtg. Bonds,
3/1/22 750,000 852,330
-----------------
2,203,175
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications - 0.3%
------------------------------------------------------------------------------------------------------------------------------
GTE Corp., 9.375% Debs., 12/1/00 500,000 567,703
-----------------
Total Corporate Bonds and Notes (Cost $34,673,470) 35,764,250
</TABLE>
19
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Shares (Note 1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co., 9% Exchangeable Notes for Common
Stock of Lyondell Petrochemical Co., 9/15/97 $ 15,000 $ 352,500
------------------------------------------------------------------------------------------------------------------------------
BankAmerica Corp., 8.375%, Series K 25,000 646,875
-----------------
Total Preferred Stocks (Cost $1,076,533) 999,375
Principal
Amount(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Instruments - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. Units, 9.75%, 6/15/99
(representing debt of Chemical Banking Corp., sub. capital
nts., and equity of Citicorp, 7.75% preferred, series 22) (Cost
$1,100,540) (7)(9) $ 1,000,000 1,151,000
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreement - 4.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
5.90%, dated 12/29/95, to be repurchased at $8,505,572 on
1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%,
12/31/96-11/5/04, with a value of $4,613,862, U.S. Treasury
Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of
$2,796,111, and U.S. Treasury Bills maturing 11/14/96, with
a value of $1,267,996 (Cost $8,500,000) 8,500,000 8,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $196,548,402) 97.2% 205,386,016
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 2.8 5,845,754
-------------- -----------------
Net Assets 100.0% $ 211,231,770
============== =================
</TABLE>
1. Principal amount is reported in U.S. Dollars, except for those denoted
in the following currencies:
AUD - Australian Dollar IDR - Indonesian Rupiah
CAD - Canadian Dollar IEP - Irish Punt
DEM - German Deutsche Mark ITL - Italian Lira
DKK - Danish Krone NOK - Norwegian Krone
ESP - Spanish Peseta NZD - New Zealand Dollar
FRF - French Franc PTE - Portuguese Escudo
GBP - British Pound Sterling SEK - Swedish Krona
HUF - Hungarian Forint THB - Thai Baht
2. Indexed instrument for which the principal amount and/or
interest due at maturity is affected by the relative value of a foreign
currency.
3. For zero coupon bonds, the interest rate shown is the effective yield on
the date of purchase.
4. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities
typically decline in price as interest rates decline. Most other
fixed-income securities increase in price when interest rates decline.
The principal amount of the underlying pool represents the notional amount
on which current interest is calculated. The price of these securities is
typically more sensitive to changes in prepayment rates than traditional
mortgage-backed securities (for example, GNMA pass-throughs). Interest
rates disclosed represent current yields based upon the current cost
basis and estimated timing and amount of future cash flows.
20
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Bond Fund
Statement of Investments (Continued)
December 31, 1995
- --------------------------------------------------------------------------------
5. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines
established by the Board of Trustees. These securities amount to
$7,087,486 or 3.36% of the Fund's net assets, at December 31, 1995.
6. Represents the current interest rate for a variable rate security.
7. Identifies issues considered to be illiquid - See Note 7 of Notes to
Financial Statements.
8. Denotes a step bond: a zero coupon bond that converts to a fixed rate
of interest at a designated future date.
9. Units may be comprised of several components, such as debt and equity
and/or warrants to purchase equity at some point in the future. For
units which represent debt securities, principal amount disclosed
represents total underlying principal.
See accompanying Notes to Financial Statements.
21
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION> Principal Market Value
Amount (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds and Notes - 1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Danka Business Systems PLC, 6.75% Cv. Sub. Nts., 4/1/02 $ 800,000 $ 1,122,000
-----------------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., 8.25% Cv. Sub. Debs., 8/15/01 (1) 850,000 709,750
-----------------------------------------------------------------------------------------------------------------------------
Telxon Corp., 5.75% Cv. Debs., 1/1/03 (1) 1,500,000 1,627,500
----------------
Total Convertible Corporate Bonds and Notes (Cost $3,150,000) 3,459,250
Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stocks - 91.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Paper - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
Visioneer, Inc. (2) 27,300 607,425
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 24.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing - 1.2%
ITI Technologies, Inc. (2) 80,000 2,380,000
-----------------------------------------------------------------------------------------------------------------------------
NHP, Inc. (2) 100,000 1,850,000
----------------
4,230,000
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment - 7.1%
-----------------------------------------------------------------------------------------------------------------------------
Apple South, Inc. 121,100 2,603,650
-----------------------------------------------------------------------------------------------------------------------------
Applebee's International, Inc. 75,000 1,706,250
-----------------------------------------------------------------------------------------------------------------------------
CKE Restaurants, Inc. 190,000 3,040,000
-----------------------------------------------------------------------------------------------------------------------------
Consolidated Products, Inc. 44,000 649,000
-----------------------------------------------------------------------------------------------------------------------------
Department 56, Inc. (2) 60,300 2,314,012
-----------------------------------------------------------------------------------------------------------------------------
La Quinta Inns, Inc. 85,000 2,326,875
-----------------------------------------------------------------------------------------------------------------------------
Landry's Seafood Restaurants, Inc. (2) 100,000 1,706,250
-----------------------------------------------------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon (2) 50,000 1,918,750
-----------------------------------------------------------------------------------------------------------------------------
Morrow Snowboards, Inc. (2) 59,500 966,875
-----------------------------------------------------------------------------------------------------------------------------
Play By Play Toys & Novelties, Inc. (2) 63,800 933,075
-----------------------------------------------------------------------------------------------------------------------------
Quality Dining, Inc. (2) 94,500 2,291,625
-----------------------------------------------------------------------------------------------------------------------------
Sonic Corp. 95,000 1,805,000
-----------------------------------------------------------------------------------------------------------------------------
Studio Plus Hotels, Inc. (2) 37,500 965,625
----------------
23,226,987
- -----------------------------------------------------------------------------------------------------------------------------------
Media - 0.8%
-----------------------------------------------------------------------------------------------------------------------------
SFX Broadcasting, Inc., Cl. A (2) 55,100 1,666,775
-----------------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., Cl. A (2) 50,000 862,500
----------------
2,529,275
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General - 4.9%
-----------------------------------------------------------------------------------------------------------------------------
Donnkenny, Inc. 140,000 2,537,500
-----------------------------------------------------------------------------------------------------------------------------
Fila Holding SpA, ADR 58,000 2,639,000
-----------------------------------------------------------------------------------------------------------------------------
Marisa Christina, Inc. (2) 46,700 793,900
-----------------------------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc. 52,500 2,296,875
-----------------------------------------------------------------------------------------------------------------------------
Tommy Hilfiger Corp. 71,700 3,038,287
-----------------------------------------------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 67,500 1,687,500
-----------------------------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 89,000 2,803,500
----------------
15,796,562
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty - 10.4%
-----------------------------------------------------------------------------------------------------------------------------
adidas AG, ADS (1)(2) 24,000 637,500
-----------------------------------------------------------------------------------------------------------------------------
Boise Cascade Office Products Corp. (2) 50,000 2,137,500
-----------------------------------------------------------------------------------------------------------------------------
Copart, Inc. (2) 103,100 2,706,375
-----------------------------------------------------------------------------------------------------------------------------
Corporate Express, Inc. 82,500 2,485,312
</TABLE>
22
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Shares (Note 1)
Common Stocks (Continued)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty (Continued)
-----------------------------------------------------------------------------------------------------------------------------
CUC International, Inc. 59,000 $ 2,013,375
-----------------------------------------------------------------------------------------------------------------------------
Discount Auto Parts, Inc. (2) 60,000 1,867,500
-----------------------------------------------------------------------------------------------------------------------------
General Nutrition Cos., Inc. (2) 218,800 5,032,400
-----------------------------------------------------------------------------------------------------------------------------
Hollywood Entertainment Corp. 87,500 732,812
-----------------------------------------------------------------------------------------------------------------------------
Men's Wearhouse, Inc. (2) 130,100 3,350,075
-----------------------------------------------------------------------------------------------------------------------------
Moovies, Inc. (2) 137,200 1,852,200
-----------------------------------------------------------------------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl. A (2) 35,000 962,500
-----------------------------------------------------------------------------------------------------------------------------
Nike, Inc., Cl. B 22,000 1,531,750
-----------------------------------------------------------------------------------------------------------------------------
OfficeMax, Inc. (2) 45,750 1,023,656
-----------------------------------------------------------------------------------------------------------------------------
Petco Animal Supplies, Inc. (2) 80,000 2,340,000
-----------------------------------------------------------------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc. (2) 35,000 420,000
-----------------------------------------------------------------------------------------------------------------------------
Staples, Inc. 67,500 1,645,312
-----------------------------------------------------------------------------------------------------------------------------
Viking Office Products, Inc. (2) 65,000 3,022,500
----------------
33,760,767
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 21.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.3%
-----------------------------------------------------------------------------------------------------------------------------
Boston Beer Co., Inc., Cl. A (2) 9,800 232,750
-----------------------------------------------------------------------------------------------------------------------------
Canandaigua Wine Co., Inc., Cl. A (2) 20,000 652,500
----------------
885,250
- -----------------------------------------------------------------------------------------------------------------------------------
Education - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
National Education Corp. (2) 80,000 650,000
- -----------------------------------------------------------------------------------------------------------------------------------
Food - 1.1%
-----------------------------------------------------------------------------------------------------------------------------
Opta Food Ingredients, Inc. (2) 35,200 453,200
-----------------------------------------------------------------------------------------------------------------------------
Safeway, Inc. (2) 60,000 3,090,000
----------------
3,543,200
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs - 5.0%
-----------------------------------------------------------------------------------------------------------------------------
Agouron Pharmaceuticals, Inc. (2) 40,000 1,310,000
-----------------------------------------------------------------------------------------------------------------------------
Bio-Vascular, Inc. (2) 47,900 562,825
-----------------------------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc. (2) 75,000 2,606,250
-----------------------------------------------------------------------------------------------------------------------------
Elan Corp. PLC, ADR (2) 45,000 2,188,125
-----------------------------------------------------------------------------------------------------------------------------
Ethical Holdings PLC, Sponsored ADR (2) 50,000 450,000
-----------------------------------------------------------------------------------------------------------------------------
Gilead Sciences, Inc. (2) 49,300 1,577,600
-----------------------------------------------------------------------------------------------------------------------------
Martek Biosciences Corp. (2) 40,000 1,010,000
-----------------------------------------------------------------------------------------------------------------------------
Matrix Pharmaceutical, Inc. (2) 30,400 570,000
-----------------------------------------------------------------------------------------------------------------------------
Northfield Laboratories, Inc. (2) 50,000 943,750
-----------------------------------------------------------------------------------------------------------------------------
Protein Design Labs, Inc. 7,500 173,437
-----------------------------------------------------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc. (2) 100,000 4,900,000
----------------
16,291,987
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 14.3%
-----------------------------------------------------------------------------------------------------------------------------
AHI Healthcare Systems, Inc. (2) 138,500 796,375
-----------------------------------------------------------------------------------------------------------------------------
AmeriSource Health Corp., Cl. A (2) 115,500 3,811,500
-----------------------------------------------------------------------------------------------------------------------------
ARV Assisted Living, Inc. (2) 150,000 1,762,500
-----------------------------------------------------------------------------------------------------------------------------
Compdent Corp. (2) 50,000 2,075,000
-----------------------------------------------------------------------------------------------------------------------------
Emeritus Corp. (2) 100,000 1,162,500
-----------------------------------------------------------------------------------------------------------------------------
Guidant Corp. 85,000 3,591,250
-----------------------------------------------------------------------------------------------------------------------------
Gulf South Medical Supply, Inc. 73,400 2,220,350
-----------------------------------------------------------------------------------------------------------------------------
HealthCare COMPARE Corp. (2) 50,000 2,175,000
-----------------------------------------------------------------------------------------------------------------------------
HemaSure, Inc. (2) 36,000 459,000
</TABLE>
23
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Shares (Note 1)
Common Stocks (Continued)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services (Continued)
-----------------------------------------------------------------------------------------------------------------------------
Horizon/CMS Healthcare Corp. (2) 63,700 $ 1,608,425
-----------------------------------------------------------------------------------------------------------------------------
Lincare Holdings, Inc. (2) 59,200 1,480,000
-----------------------------------------------------------------------------------------------------------------------------
National Surgery Centers, Inc. (2) 14,500 333,500
-----------------------------------------------------------------------------------------------------------------------------
Omnicare, Inc. 76,800 3,436,800
-----------------------------------------------------------------------------------------------------------------------------
OrNda Healthcorp (2) 105,000 2,441,250
-----------------------------------------------------------------------------------------------------------------------------
Owen Healthcare, Inc. 63,000 1,740,375
-----------------------------------------------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc. (2) 120,000 3,300,000
-----------------------------------------------------------------------------------------------------------------------------
PhyCor, Inc. 65,000 3,286,562
-----------------------------------------------------------------------------------------------------------------------------
Physician Reliance Network, Inc. (2) 40,000 1,590,000
-----------------------------------------------------------------------------------------------------------------------------
Physicians Resource Group, Inc. (2) 75,000 1,490,625
-----------------------------------------------------------------------------------------------------------------------------
Quorum Health Group, Inc. (2) 56,000 1,232,000
-----------------------------------------------------------------------------------------------------------------------------
Renal Treatment Centers, Inc. (2) 50,000 2,200,000
-----------------------------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc. (2) 52,600 1,551,700
-----------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 30,000 1,395,000
-----------------------------------------------------------------------------------------------------------------------------
United Dental Care, Inc. (2) 30,000 1,237,500
----------------
46,377,212
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods - 0.4%
-----------------------------------------------------------------------------------------------------------------------------
Ultralife Batteries, Inc. (2) 60,000 1,440,000
- -----------------------------------------------------------------------------------------------------------------------------------
Energy - 3.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services & Producers - 2.9%
-----------------------------------------------------------------------------------------------------------------------------
Core Laboratories NV (2) 50,300 603,600
-----------------------------------------------------------------------------------------------------------------------------
Cross Timbers Oil Co. 30,800 542,850
-----------------------------------------------------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc. (2) 56,900 1,920,375
-----------------------------------------------------------------------------------------------------------------------------
Energy Ventures, Inc. (2) 75,200 1,898,800
-----------------------------------------------------------------------------------------------------------------------------
Nabors Industries, Inc. (2) 150,000 1,668,750
-----------------------------------------------------------------------------------------------------------------------------
Newfield Exploration Co. (2) 20,000 540,000
-----------------------------------------------------------------------------------------------------------------------------
NUMAR Corp. (2) 36,000 400,500
-----------------------------------------------------------------------------------------------------------------------------
Stone Energy Corp. (2) 35,000 538,125
-----------------------------------------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. (2) 50,000 1,443,750
----------------
9,556,750
- -----------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Valero Energy Corp. 60,000 1,470,000
- -----------------------------------------------------------------------------------------------------------------------------------
Financial - 2.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Advanta Corp., Cl. B 40,000 1,455,000
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance - 1.5%
-----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp. 40,000 2,150,000
-----------------------------------------------------------------------------------------------------------------------------
CapMAC Holdings, Inc. (2) 70,600 1,773,825
-----------------------------------------------------------------------------------------------------------------------------
First Commonwealth, Inc. (2) 18,000 468,000
-----------------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Holdings, Inc. 24,900 582,037
----------------
4,973,862
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial - 10.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Kennametal, Inc. 52,000 1,651,000
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services - 8.3%
-----------------------------------------------------------------------------------------------------------------------------
CIBER, Inc. (2) 73,500 1,718,062
-----------------------------------------------------------------------------------------------------------------------------
CKS Group, Inc. (2) 11,600 452,400
-----------------------------------------------------------------------------------------------------------------------------
Computer Horizons Corp. 60,000 2,280,000
</TABLE>
24
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Shares (Note 1)
Common Stocks (Continued)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services (Continued)
-----------------------------------------------------------------------------------------------------------------------------
CORT Business Services Corp. (2) 93,800 $ 1,547,700
-----------------------------------------------------------------------------------------------------------------------------
Danka Business System PLC, Sponsored ADR 70,000 2,590,000
-----------------------------------------------------------------------------------------------------------------------------
DST Systems, Inc. (2) 83,500 2,379,750
-----------------------------------------------------------------------------------------------------------------------------
Kent Electronics Corp. 33,300 1,943,888
-----------------------------------------------------------------------------------------------------------------------------
META Group, Inc. (2) 40,000 1,225,000
-----------------------------------------------------------------------------------------------------------------------------
PMT Services, Inc. (2) 58,000 1,754,500
-----------------------------------------------------------------------------------------------------------------------------
Sitel Corp. (2) 59,300 1,816,063
-----------------------------------------------------------------------------------------------------------------------------
Stewart Enterprises, Inc. 50,000 1,850,000
-----------------------------------------------------------------------------------------------------------------------------
Transaction Network Services, Inc. (2) 60,000 1,500,000
-----------------------------------------------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A (2) 60,000 2,025,000
-----------------------------------------------------------------------------------------------------------------------------
United Waste Systems, Inc. (2) 30,000 1,117,500
-----------------------------------------------------------------------------------------------------------------------------
USA Waste Services, Inc. (2) 151,300 2,855,788
----------------
27,055,651
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing - 1.0%
-----------------------------------------------------------------------------------------------------------------------------
American Standard Cos., Inc. (2) 50,000 1,400,000
-----------------------------------------------------------------------------------------------------------------------------
Cincinnati Milacron, Inc. 30,000 787,500
-----------------------------------------------------------------------------------------------------------------------------
Harnischfeger Industries, Inc. 30,000 997,500
----------------
3,185,000
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.8%
-----------------------------------------------------------------------------------------------------------------------------
Airborne Freight Corp. 100,000 2,662,500
- -----------------------------------------------------------------------------------------------------------------------------------
Technology - 29.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Hardware - 4.5%
-----------------------------------------------------------------------------------------------------------------------------
Adaptec, Inc. (2) 50,300 2,062,300
-----------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (2) 55,000 4,104,375
-----------------------------------------------------------------------------------------------------------------------------
Citrix Systems, Inc. (2) 15,500 503,750
-----------------------------------------------------------------------------------------------------------------------------
Data Translation, Inc. 117,000 1,901,250
-----------------------------------------------------------------------------------------------------------------------------
In Focus Systems, Inc. (2) 70,000 2,528,750
-----------------------------------------------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A (2) 73,400 1,339,550
-----------------------------------------------------------------------------------------------------------------------------
Network Appliance, Inc. (2) 13,200 529,650
-----------------------------------------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (2) 40,000 1,825,000
----------------
14,794,625
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software - 12.4%
-----------------------------------------------------------------------------------------------------------------------------
7th Level, Inc. (2) 40,000 560,000
-----------------------------------------------------------------------------------------------------------------------------
Adept Technology, Inc. (2) 112,700 1,183,350
-----------------------------------------------------------------------------------------------------------------------------
AMISYS Managed Care Systems, Inc. 18,700 355,300
-----------------------------------------------------------------------------------------------------------------------------
Arbor Software Corp. (2) 13,500 637,875
-----------------------------------------------------------------------------------------------------------------------------
Cheyenne Software, Inc. (2) 110,000 2,873,750
-----------------------------------------------------------------------------------------------------------------------------
Computervision Corp. (2) 190,500 2,928,938
-----------------------------------------------------------------------------------------------------------------------------
Computron Software, Inc. (2) 50,000 900,000
-----------------------------------------------------------------------------------------------------------------------------
Enterprise Systems, Inc. (2) 34,100 1,040,050
-----------------------------------------------------------------------------------------------------------------------------
First Data Corp. 58,788 3,931,448
-----------------------------------------------------------------------------------------------------------------------------
GT Interactive Software Corp. (2) 25,000 350,000
-----------------------------------------------------------------------------------------------------------------------------
HBO & Co. 40,000 3,065,000
-----------------------------------------------------------------------------------------------------------------------------
IDX Systems Corp. (2) 11,200 389,200
-----------------------------------------------------------------------------------------------------------------------------
IMNET Systems, Inc. (2) 48,000 1,152,000
-----------------------------------------------------------------------------------------------------------------------------
Inference Corp., Cl. A (2) 25,000 475,000
-----------------------------------------------------------------------------------------------------------------------------
Informix Corp. (2) 85,000 2,550,000
-----------------------------------------------------------------------------------------------------------------------------
Legato Systems, Inc. (2) 40,000 1,240,000
</TABLE>
25
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Shares (Note 1)
Common Stocks (Continued)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Technology (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Computer Software (Continued)
-----------------------------------------------------------------------------------------------------------------------------
Mecon, Inc. (2) 110,000 $ 1,746,250
-----------------------------------------------------------------------------------------------------------------------------
MetaTools, Inc. (2) 15,000 390,000
-----------------------------------------------------------------------------------------------------------------------------
NetManage, Inc. 60,000 1,395,000
-----------------------------------------------------------------------------------------------------------------------------
Network General Corp. (2) 35,000 1,168,125
-----------------------------------------------------------------------------------------------------------------------------
Novadigm, Inc. (2) 39,100 1,109,463
-----------------------------------------------------------------------------------------------------------------------------
Open Environment Corp. (2) 72,500 996,875
-----------------------------------------------------------------------------------------------------------------------------
Oracle Corp. (2) 80,000 3,390,000
-----------------------------------------------------------------------------------------------------------------------------
Pinnacle Systems, Inc. (2) 39,800 985,050
-----------------------------------------------------------------------------------------------------------------------------
Project Software & Development, Inc. 64,500 2,249,438
-----------------------------------------------------------------------------------------------------------------------------
Spacetec IMC Corp. (2) 30,000 352,500
-----------------------------------------------------------------------------------------------------------------------------
SQA, Inc. (2) 12,500 240,625
-----------------------------------------------------------------------------------------------------------------------------
Summit Medical Systems, Inc. (2) 55,000 1,182,500
-----------------------------------------------------------------------------------------------------------------------------
Sync Research, Inc. (2) 30,800 1,393,700
----------------
40,231,437
- -----------------------------------------------------------------------------------------------------------------------------------
Electronics - 0.9%
-----------------------------------------------------------------------------------------------------------------------------
Photon Dynamics, Inc. (2) 78,500 628,000
-----------------------------------------------------------------------------------------------------------------------------
SDL, Inc. (2) 95,000 2,280,000
----------------
2,908,000
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications-Technology - 11.5%
-----------------------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. 60,000 2,190,000
-----------------------------------------------------------------------------------------------------------------------------
Allen Group, Inc. 60,000 1,342,500
-----------------------------------------------------------------------------------------------------------------------------
Arch Communications Group, Inc. (2) 140,000 3,360,000
-----------------------------------------------------------------------------------------------------------------------------
Comverse Technology, Inc. (2) 60,000 1,200,000
-----------------------------------------------------------------------------------------------------------------------------
Davox Corp. (2) 80,000 950,000
-----------------------------------------------------------------------------------------------------------------------------
DSC Communications Corp. (2) 75,000 2,765,625
-----------------------------------------------------------------------------------------------------------------------------
Glenayre Technologies, Inc. 31,750 1,976,438
-----------------------------------------------------------------------------------------------------------------------------
Inter-Tel, Inc. (2) 56,300 865,613
-----------------------------------------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 90,000 1,755,000
-----------------------------------------------------------------------------------------------------------------------------
LCI International, Inc. (2) 132,600 2,718,300
-----------------------------------------------------------------------------------------------------------------------------
Metrocall, Inc. (2) 34,200 654,075
-----------------------------------------------------------------------------------------------------------------------------
MobileMedia Corp., Cl. A (2) 125,000 2,781,250
-----------------------------------------------------------------------------------------------------------------------------
Pairgain Technologies, Inc. (2) 40,000 2,190,000
-----------------------------------------------------------------------------------------------------------------------------
Periphonics Corp. (2) 85,400 2,369,850
-----------------------------------------------------------------------------------------------------------------------------
ProNet, Inc. (2) 100,000 2,950,000
-----------------------------------------------------------------------------------------------------------------------------
Tellabs, Inc. 55,000 2,035,000
-----------------------------------------------------------------------------------------------------------------------------
Teltrend, Inc. (2) 65,000 3,038,750
-----------------------------------------------------------------------------------------------------------------------------
VTEL Corp. (2) 105,500 1,951,750
-----------------------------------------------------------------------------------------------------------------------------
Westell Technologies, Inc., Cl. A (2) 14,000 351,750
----------------
37,445,901
----------------
Total Common Stocks (Cost $234,017,201) 296,728,391
</TABLE>
26
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION> Market Value
Units (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates - 0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Jan Bell Marketing, Inc. Wts., Exp. 12/98 532 $ 266
Tapistron International, Inc. Wts., Exp. 6/97 120,000 7,500
-----------------------------------------------------------------------------------------------------------------------------
Windmere Corp. Wts., Exp. 1/98 381 --
----------------
Total Rights, Warrants and Certificates (Cost $52,860) 7,766
<CAPTION> Principal
Amount
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement - 10.9%
Repurchase agreement with First Chicago Capital Markets,
5.90%, dated 12/29/95, to be repurchased at $35,623,338
on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%,
12/31/96-11/5/04, with a value of $19,323,938, U.S. Treasury
Bonds, 6.25%-11.25%, 8/15/03-8/15/23, with a value of
$11,710,771, and U.S. Treasury Bills maturing 11/14/96,
with a value of $5,310,666 (Cost $35,600,000) $ 35,600,000 35,600,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $272,820,061) 103.2% 335,795,407
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (3.2) (10,391,316)
----------------- ----------------
Net Assets 100.0% $ 325,404,091
================= ================
</TABLE>
1. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Board
of Trustees. These securities amount to $2,974,750 or 0.91% of the Fund's
net assets, at December 31, 1995.
2. Non-income producing security.
See accompanying Notes to Financial Statements.
27
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Common Stocks - 80.1%
- ---------------------------------------------------------------------------------------------------
Basic Materials - 6.3%
- ---------------------------------------------------------------------------------------------------
Chemicals - 4.5%
---------------------------------------------------------------------------------------------
FMC Corp. (1) 4,000 $ 270,500
---------------------------------------------------------------------------------------------
Georgia Gulf Corp. 19,000 584,250
---------------------------------------------------------------------------------------------
IMC Global, Inc. 16,000 654,000
---------------------------------------------------------------------------------------------
Morton International, Inc. 29,000 1,040,375
---------------------------------------------------------------------------------------------
PPG Industries, Inc. 18,000 823,500
---------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. (1) 80,600 654,875
---------------------------------------------------------------------------------------------
Terra Industries, Inc. 46,000 649,750
---------------------------------------------------------------------------------------------
Union Carbide Corp. 17,000 637,500
----------------
5,314,750
- ---------------------------------------------------------------------------------------------------
Metals - 0.3%
---------------------------------------------------------------------------------------------
Reynolds Metals Co. 7,000 396,375
- ---------------------------------------------------------------------------------------------------
Paper - 1.5%
---------------------------------------------------------------------------------------------
Boise Cascade Corp. 17,000 588,625
---------------------------------------------------------------------------------------------
Bowater, Inc. 5,000 177,500
---------------------------------------------------------------------------------------------
Federal Paper Board Co. 7,000 363,125
---------------------------------------------------------------------------------------------
Willamette Industries, Inc. 11,000 618,750
----------------
1,748,000
- ---------------------------------------------------------------------------------------------------
Consumer Cyclicals - 10.7%
---------------------------------------------------------------------------------------------
Autos & Housing - 1.4%
---------------------------------------------------------------------------------------------
Pulte Corp. 17,000 571,625
---------------------------------------------------------------------------------------------
Toll Brothers, Inc. (1) 46,000 1,058,000
----------------
1,629,625
- ---------------------------------------------------------------------------------------------------
Leisure & Entertainment - 3.3%
---------------------------------------------------------------------------------------------
Applebee's International, Inc. 18,000 409,500
---------------------------------------------------------------------------------------------
Callaway Golf Co. 25,000 565,625
---------------------------------------------------------------------------------------------
ITT Corp. (New) 5,000 265,000
---------------------------------------------------------------------------------------------
McDonald's Corp. 11,000 496,375
---------------------------------------------------------------------------------------------
Walt Disney Co. 25,000 1,475,000
---------------------------------------------------------------------------------------------
Wendy's International, Inc. 33,800 718,250
----------------
3,929,750
- ---------------------------------------------------------------------------------------------------
Media - 0.2%
---------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B (1) 3,667 173,724
- ---------------------------------------------------------------------------------------------------
Retail: General - 3.2%
---------------------------------------------------------------------------------------------
Jones Apparel Group, Inc. (1) 17,100 673,312
---------------------------------------------------------------------------------------------
May Department Stores Co. 6,000 253,500
---------------------------------------------------------------------------------------------
Nautica Enterprises, Inc. 10,200 446,250
---------------------------------------------------------------------------------------------
Tommy Hilfiger Corp. 22,500 953,437
---------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 26,000 581,750
---------------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 33,000 825,000
----------------
3,733,249
- ---------------------------------------------------------------------------------------------------
Retail: Specialty - 2.6%
---------------------------------------------------------------------------------------------
Bed Bath & Beyond, Inc. (1) 9,000 349,312
---------------------------------------------------------------------------------------------
Gap, Inc. (The) 10,000 420,000
---------------------------------------------------------------------------------------------
General Nutrition Cos., Inc. (1) 40,000 920,000
---------------------------------------------------------------------------------------------
Home Depot, Inc. 24,000 1,149,000
---------------------------------------------------------------------------------------------
OfficeMax, Inc. (1) 8,000 179,000
----------------
3,017,312
</TABLE>
28
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 17.6%
- ---------------------------------------------------------------------------------------------------
Beverages - 1.4%
---------------------------------------------------------------------------------------------
Boston Beer Co., Inc., Cl. A (1) 6,600 $ 156,750
---------------------------------------------------------------------------------------------
Coca-Cola Co. (The) 10,000 742,500
---------------------------------------------------------------------------------------------
PepsiCo, Inc. 10,000 558,750
---------------------------------------------------------------------------------------------
Whitman Corp. 8,000 186,000
----------------
1,644,000
- ---------------------------------------------------------------------------------------------------
Food - 3.1%
---------------------------------------------------------------------------------------------
ConAgra, Inc. 4,000 165,000
---------------------------------------------------------------------------------------------
H.J. Heinz Co. 15,000 496,875
---------------------------------------------------------------------------------------------
IBP, Inc. 20,000 1,010,000
---------------------------------------------------------------------------------------------
Kroger Co. (1) 14,000 525,000
---------------------------------------------------------------------------------------------
Safeway, Inc. (1) 16,000 824,000
---------------------------------------------------------------------------------------------
Smithfield Foods, Inc. (1) 21,000 666,750
----------------
3,687,625
- ---------------------------------------------------------------------------------------------------
Healthcare/Drugs - 5.6%
---------------------------------------------------------------------------------------------
Abbott Laboratories 27,000 1,127,250
---------------------------------------------------------------------------------------------
Amgen, Inc. 8,000 475,000
---------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 6,500 558,187
---------------------------------------------------------------------------------------------
Johnson & Johnson 12,000 1,027,500
---------------------------------------------------------------------------------------------
Pfizer, Inc. 26,500 1,669,500
---------------------------------------------------------------------------------------------
Schering-Plough Corp. 16,000 876,000
---------------------------------------------------------------------------------------------
Warner-Lambert Co. 6,000 582,750
---------------------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc. (1) 6,000 294,000
----------------
6,610,187
- ---------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 4.2%
---------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 12,000 609,000
---------------------------------------------------------------------------------------------
Cordis Corp. (1) 2,000 201,000
---------------------------------------------------------------------------------------------
HealthCare COMPARE Corp. (1) 20,000 870,000
---------------------------------------------------------------------------------------------
Lincare Holdings, Inc. (1) 35,000 875,000
---------------------------------------------------------------------------------------------
Medtronic, Inc. 34,000 1,899,750
---------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc. (1) 8,800 510,400
----------------
4,965,150
- ---------------------------------------------------------------------------------------------------
Household Goods - 0.9%
---------------------------------------------------------------------------------------------
Procter & Gamble Co. 13,000 1,079,000
- ---------------------------------------------------------------------------------------------------
Tobacco - 2.4%
---------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 16,000 1,448,000
---------------------------------------------------------------------------------------------
UST, Inc. 41,000 1,368,375
----------------
2,816,375
- ---------------------------------------------------------------------------------------------------
Energy - 1.5%
---------------------------------------------------------------------------------------------
Oil-Integrated - 1.5%
---------------------------------------------------------------------------------------------
Mobil Corp. 6,000 672,000
---------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 3,500 493,938
---------------------------------------------------------------------------------------------
USX-Marathon Group 25,000 487,500
---------------------------------------------------------------------------------------------
YPF Sociedad Anonima, Sponsored ADR 5,000 108,125
----------------
1,761,563
- --------------------------------------------------------------------------------------------------
Financial - 13.7%
---------------------------------------------------------------------------------------------
Banks - 4.3%
---------------------------------------------------------------------------------------------
Bank of Boston Corp. 23,000 1,063,750
---------------------------------------------------------------------------------------------
Chase Manhattan Corp. 6,000 363,750
----------------
</TABLE>
29
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Financial (Continued)
- ---------------------------------------------------------------------------------------------------
Banks (Continued)
---------------------------------------------------------------------------------------------
Chemical Banking Corp. 9,000 $ 528,750
---------------------------------------------------------------------------------------------
First Interstate Bancorp 6,500 887,250
---------------------------------------------------------------------------------------------
Midlantic Corp. 12,000 787,500
---------------------------------------------------------------------------------------------
NationsBank Corp. 10,000 696,250
---------------------------------------------------------------------------------------------
State Street Boston Corp. 16,600 747,000
----------------
5,074,250
- ---------------------------------------------------------------------------------------------------
Diversified Financial - 7.4%
---------------------------------------------------------------------------------------------
Advanta Corp., Cl. A 15,000 573,750
---------------------------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. (1) 6,200 193,750
---------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 8,000 668,000
---------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 8,000 993,000
---------------------------------------------------------------------------------------------
First USA, Inc. 25,000 1,109,375
---------------------------------------------------------------------------------------------
Green Tree Financial Corp. 56,000 1,477,000
---------------------------------------------------------------------------------------------
Money Store, Inc. (The) 23,000 359,375
---------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc. 3,000 241,875
---------------------------------------------------------------------------------------------
Price (T. Rowe) Associates 20,400 1,004,700
---------------------------------------------------------------------------------------------
Schwab (Charles) Corp. (The) 29,000 583,625
---------------------------------------------------------------------------------------------
Travelers Group, Inc. 24,000 1,509,000
----------------
8,713,450
- ---------------------------------------------------------------------------------------------------
Insurance - 2.0%
---------------------------------------------------------------------------------------------
AFLAC, Inc. 5,250 227,719
---------------------------------------------------------------------------------------------
ITT Hartford Group, Inc. 5,000 241,875
---------------------------------------------------------------------------------------------
MGIC Investment Corp. 14,100 764,925
---------------------------------------------------------------------------------------------
SunAmerica, Inc. 24,000 1,140,000
----------------
2,374,519
- ---------------------------------------------------------------------------------------------------
Industrial - 7.1%
- ---------------------------------------------------------------------------------------------------
Electrical Equipment - 2.2%
---------------------------------------------------------------------------------------------
Emerson Electric Co. 17,500 1,430,625
---------------------------------------------------------------------------------------------
General Electric Co. 13,000 936,000
---------------------------------------------------------------------------------------------
Honeywell, Inc. 2,000 97,250
---------------------------------------------------------------------------------------------
Kemet Corp. 6,000 143,250
----------------
2,607,125
- ---------------------------------------------------------------------------------------------------
Industrial Materials - 1.6%
---------------------------------------------------------------------------------------------
Ball Corp. 10,000 275,000
---------------------------------------------------------------------------------------------
Centex Corp. 14,000 486,500
---------------------------------------------------------------------------------------------
Fluor Corp. 8,000 528,000
---------------------------------------------------------------------------------------------
Rayonier, Inc. 19,400 647,475
----------------
1,936,975
- ---------------------------------------------------------------------------------------------------
Industrial Services - 1.0%
---------------------------------------------------------------------------------------------
Danka Business System PLC, Sponsored ADR 21,000 777,000
---------------------------------------------------------------------------------------------
Manpower, Inc. 12,500 351,563
----------------
1,128,563
- ---------------------------------------------------------------------------------------------------
Manufacturing - 0.8%
---------------------------------------------------------------------------------------------
ITT Industries, Inc. 5,000 120,000
---------------------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc. 20,000 465,000
---------------------------------------------------------------------------------------------
Varity Corp. (1) 9,000 334,125
----------------
919,125
</TABLE>
30
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Transportation - 1.5%
---------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 7,000 $ 546,000
---------------------------------------------------------------------------------------------
Canadian Pacific Ltd. 47,000 851,875
---------------------------------------------------------------------------------------------
Illinois Central Corp. 10,000 383,750
----------------
1,781,625
- ---------------------------------------------------------------------------------------------------
Technology - 22.1%
- ---------------------------------------------------------------------------------------------------
Aerospace/Defense - 0.7%
---------------------------------------------------------------------------------------------
Goodrich (B.F.) Co. 12,000 817,500
- ---------------------------------------------------------------------------------------------------
Computer Hardware - 5.3%
---------------------------------------------------------------------------------------------
3Com Corp. (1) 10,000 466,250
---------------------------------------------------------------------------------------------
Adaptec, Inc. (1) 20,000 820,000
---------------------------------------------------------------------------------------------
Cabletron Systems, Inc. (1) 22,000 1,782,000
---------------------------------------------------------------------------------------------
Cisco Systems, Inc. (1) 7,000 522,375
---------------------------------------------------------------------------------------------
Compaq Computer Corp. (1) 22,000 1,056,000
---------------------------------------------------------------------------------------------
EMC Corp. (1) 36,000 553,500
---------------------------------------------------------------------------------------------
Gateway 2000, Inc. (1) 22,000 539,000
---------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (1) 12,000 547,500
----------------
6,286,625
- ---------------------------------------------------------------------------------------------------
Computer Software - 9.6%
---------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 19,000 1,410,750
---------------------------------------------------------------------------------------------
BMC Software, Inc. (1) 30,000 1,282,500
---------------------------------------------------------------------------------------------
Cheyenne Software, Inc. (1) 41,000 1,071,125
---------------------------------------------------------------------------------------------
Computer Associates International, Inc. 6,000 341,250
---------------------------------------------------------------------------------------------
First Data Corp. 20,000 1,337,500
---------------------------------------------------------------------------------------------
Informix Corp. (1) 35,000 1,050,000
---------------------------------------------------------------------------------------------
Microsoft Corp. (1) 30,000 2,632,500
---------------------------------------------------------------------------------------------
Oracle Corp. (1) 33,600 1,423,800
---------------------------------------------------------------------------------------------
Sterling Software, Inc. (1) 12,000 748,500
----------------
11,297,925
- ---------------------------------------------------------------------------------------------------
Electronics - 3.8%
---------------------------------------------------------------------------------------------
Arrow Electronics, Inc. (1) 11,000 474,375
---------------------------------------------------------------------------------------------
Cypress Semiconductor Corp. (1) 50,000 637,500
---------------------------------------------------------------------------------------------
General Instrument Corp. (1) 15,000 350,625
---------------------------------------------------------------------------------------------
Intel Corp. 26,000 1,475,500
---------------------------------------------------------------------------------------------
Motorola, Inc. 15,000 855,000
---------------------------------------------------------------------------------------------
Phillips Electronics NV, ADR 19,000 681,625
----------------
4,474,625
- ---------------------------------------------------------------------------------------------------
Telecommunications-Technology - 2.7%
---------------------------------------------------------------------------------------------
AT&T Corp. 18,000 1,165,500
---------------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd., Sponsored ADR 5,000 88,750
---------------------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 33,000 643,500
---------------------------------------------------------------------------------------------
Telecom Corp. of New Zealand Ltd., Sponsored ADR 7,000 485,625
---------------------------------------------------------------------------------------------
Tellabs, Inc. 21,800 806,600
----------------
3,189,975
- ---------------------------------------------------------------------------------------------------
Utilities - 1.1%
- ---------------------------------------------------------------------------------------------------
Telephone Utilities - 1.1%
---------------------------------------------------------------------------------------------
BellSouth Corp. 5,000 217,500
---------------------------------------------------------------------------------------------
Cincinnati Bell, Inc. 17,000 590,750
</TABLE>
31
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Utilities - 1.1%
- ---------------------------------------------------------------------------------------------------
Telephone Utilities - 1.1%
---------------------------------------------------------------------------------------------
Telefonos de Mexico SA, Sponsored ADR 13,500 $ 430,313
----------------
1,238,563
----------------
Total Common Stocks (Cost $70,729,607) 94,347,530
Principal
Amount
- ---------------------------------------------------------------------------------------------------
Repurchase Agreements - 19.9%
---------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
5.90%, dated 12/29/95, to be repurchased at
$18,011,800 on 1/2/96, collateralized by
U.S. Treasury Nts., 5.125%-8.75%, 12/31/96-11/5/04,
with a value of $9,770,530, U.S. Treasury Bonds,
6.25%-11.25%, 8/15/03-8/15/23, with a
value of $5,921,176, and U.S. Treasury
Bills maturing 11/14/96, with a
value of $2,685,168 $18,000,000 18,000,000
---------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.90%, dated
12/29/95, to be repurchased at $5,473,586 on 1/2/96,
collateralized by U.S. Treasury Nts., 6.875%, 8/31/99,
with a value of $1,954,613, and U.S. Treasury
Bonds, 7.125%-7.625%, 11/15/22-2/15/23, with
a value of $3,682,864 5,470,000 5,470,000
----------------
---------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $23,470,000) 23,470,000
---------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $94,199,607) 100.0% 117,817,530
---------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets 0.0 (107,640)
----------- -----------------
Net Assets 100.0% $117,709,890
=========== ==================
</TABLE>
1. Non-income producing security.
See accompanying Notes to Financial Statements.
32
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Amount(1) (Note 1)
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage-Backed Obligations - 1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Government Agency - 1.4%
- -----------------------------------------------------------------------------------------------------------------------------------
GNMA/Guaranteed - 1.4%
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Government National Mortgage Assn.:
8%, 4/15/23 $ 3,633,256 $ 3,785,417
8%, 7/15/22 1,636,667 1,705,211
-----------
5,490,628
- -----------------------------------------------------------------------------------------------------------------------------------
Private - 0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Multi-Family - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 757,146 714,557
----------
Total Mortgage-Backed Obligations (Cost $6,131,064) 6,205,185
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Obligations - 10.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Treasury - 10.0%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.375%, 8/15/02 5,000,000 5,254,684
6.75%, 5/31/97 10,300,000 10,515,650
7.625%, 5/31/96 12,500,000 12,625,000
9.25%, 8/15/98 9,000,000 9,869,057
-----------
Total U.S. Government Obligations (Cost $36,992,459) 38,264,391
- -----------------------------------------------------------------------------------------------------------------------------------
Foreign Government Obligations - 9.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of):
Bonds, Bonos de Consolidacion de Deudas, Series 1, 5.836%, 4/1/01 (2)(3) 2,345,788 1,841,852
Par Bonds, 5%, 3/31/23 (4) 3,500,000 1,997,187
Past Due Interest Bonds, Series L, 6.812%, 3/31/05 (2) 3,000,000 2,145,000
-----------------------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon:
48.252%, 10/3/96 (5) MXP 5,615,100 537,857
51.195%, 9/12/96 (5) MXP 5,977,280 583,858
-----------------------------------------------------------------------------------------------------------------------------
Canada (Government of) Bonds:
8.50%, 4/1/02 CAD 1,500,000 1,198,677
9.75%, 12/1/01 CAD 3,000,000 2,528,212
9.75%, 6/1/01 CAD 2,000,000 1,673,861
-----------------------------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 8%, 3/15/06 DKK 32,100,000 6,108,023
-----------------------------------------------------------------------------------------------------------------------------
Eskom Loan Participation Agreements, Series 168, 11%, 6/1/08 ZAR 8,570,000 1,915,724
-----------------------------------------------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni del Tesoro
Poliennali, 8.50%, 8/1/99 ITL 2,700,000,000 1,615,338
-----------------------------------------------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon:
24.132%, 11/13/96 (5) PLZ 2,300,000 766,729
24.426%, 7/3/96 (5) PLZ 2,860,000 1,030,803
-----------------------------------------------------------------------------------------------------------------------------
Queensland Treasury Corp. Gtd. Exch. Nts., 10.50%, 5/15/03 AUD 3,600,000 3,018,246
-----------------------------------------------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 8.25%, 10/15/03 AUD 6,000,000 4,457,624
-----------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 13%, 7/14/00 GBP 1,590,000 3,054,934
</TABLE>
33
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Foreign Government Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction
Bonds, Series B, 7%, 3/31/07 (2) $4,000,000 $ 2,230,000
-----------
Total Foreign Government Obligations (Cost $34,609,292) 36,703,925
- -----------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes - 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Port of Portland, Oregon Special Obligation Taxable
Revenue Bonds, PAMCO Project, 9.20%, 5/15/22 (Cost $500,000) 500,000 546,886
- -----------------------------------------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes - 15.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 2.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 1,350,000 1,447,875
-----------------------------------------------------------------------------------------------------------------------------
Quantum Chemical Corp., 10.375% First Mtg. Nts., 6/1/03 500,000 568,969
-----------
2,016,844
- -----------------------------------------------------------------------------------------------------------------------------------
Metals - 0.9%
-----------------------------------------------------------------------------------------------------------------------------
AK Steel Corp., 10.75% Gtd. Sr. Nts., 4/1/04 1,000,000 1,112,500
-----------------------------------------------------------------------------------------------------------------------------
Armco, Inc., 8.50% Sinking Fund Debs., 9/1/01 200,000 194,000
-----------------------------------------------------------------------------------------------------------------------------
Horsehead Industries, Inc., 14% Sub. Nts., 6/1/99 400,000 418,668
-----------------------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 12.75% Sr. Sub. Nts., 2/1/03 1,000,000 1,102,500
-----------------------------------------------------------------------------------------------------------------------------
Wheel-Pittsburgh Corp., 9.375% Sr. Nts., 11/15/03 500,000 478,750
----------
3,306,418
- -----------------------------------------------------------------------------------------------------------------------------------
Paper - 0.8%
-----------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., 11.50% Sr. Nts., 5/15/01 500,000 517,500
-----------------------------------------------------------------------------------------------------------------------------
Repap Wisconsin, Inc., 9.875% Second Priority Sr. Nts., 5/1/06 1,000,000 955,000
-----------------------------------------------------------------------------------------------------------------------------
Riverwood International Corp., 10.75% Sr. Nts., 6/15/00 1,000,000 1,068,750
-----------------------------------------------------------------------------------------------------------------------------
Stone Consolidated Corp., 10.25% Sr. Sec. Nts., 12/15/00 350,000 376,250
-----------
2,917,500
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 6.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing - 0.6%
-----------------------------------------------------------------------------------------------------------------------------
Chrysler Financial Corp., 13.25% Nts., 10/15/99 500,000 619,944
-----------------------------------------------------------------------------------------------------------------------------
Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 825,000 693,000
----------------------------------------------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec.
Nts., Series B, 4/1/02 950,000 973,750
-----------
2,286,694
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment - 1.0%
-----------------------------------------------------------------------------------------------------------------------------
Foodmaker, Inc.:
9.25% Sr. Nts., 3/1/99 450,000 433,125
9.75% Sr. Sub. Nts., 6/1/02 350,000 318,500
-----------------------------------------------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01 (4) 600,000 591,000
-----------------------------------------------------------------------------------------------------------------------------
Pioneer Finance Corp., 13.50% Gtd. First Mtg. Bonds, 12/1/98 1,000,000 755,000
-----------------------------------------------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts., 6/1/03 1,000,000 985,000
-----------------------------------------------------------------------------------------------------------------------------
Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts.,
6/15/01 500,000 520,000
----------
3,602,625
</TABLE>
34
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals (Continued)
Media - 4.2%
-----------------------------------------------------------------------------------------------------------------------------
Adelphia Communications Corp., 12.50% Sr. Nts., 5/15/02 $1,000,000 $ 980,000
-----------------------------------------------------------------------------------------------------------------------------
American Telecasting, Inc., 0%/14.50% Sr. Dis. Nts., 6/15/04 (6) 1,290,948 893,981
-----------------------------------------------------------------------------------------------------------------------------
Bell & Howell Holdings Co., 0%/11.50% Sr. Disc. Debs., Series B, 3/1/05 (6) 1,000,000 635,000
-----------------------------------------------------------------------------------------------------------------------------
Cablevision Industries Corp., 9.25% Sr. Debs., Series B, 4/1/08 500,000 542,500
-----------------------------------------------------------------------------------------------------------------------------
Continental Cablevision, Inc., 9.50% Sr. Debs., 8/1/13 1,100,000 1,171,500
-----------------------------------------------------------------------------------------------------------------------------
Echostar Communications Corp., 0%/12.875% Sr. Disc. Nts., 6/1/04 (6) 1,100,000 742,500
-----------------------------------------------------------------------------------------------------------------------------
Helicon Group LP/Helicon Capital Corp., 9% Sr. Sec. Nts., Series B, 11/1/03 (2) 1,000,000 965,000
-----------------------------------------------------------------------------------------------------------------------------
International CableTel, Inc., 0%/10.875% Sr. Deferred Coupon Nts., 10/15/03 (6) 500,000 358,750
-----------------------------------------------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts., 5/15/03 750,000 780,000
-----------------------------------------------------------------------------------------------------------------------------
Outlet Broadcasting, Inc., 10.875% Sr. Sub. Nts., 7/15/03 1,000,000 1,115,000
-----------------------------------------------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp.:
0%/11.375% Sr. Sub. Disc. Nts., 8/1/03 (6) 1,000,000 825,000
9.75% Sr. Sec. Nts., 8/1/00 500,000 531,250
-----------------------------------------------------------------------------------------------------------------------------
People's Choice TV Corp., 0%/13.125% Sr. Disc. Nts., 6/1/04 (6) 500,000 288,750
-----------------------------------------------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Sr. Sec. Second Priority Debs., 12/1/07 1,000,000 1,067,500
-----------------------------------------------------------------------------------------------------------------------------
SCI Television, Inc., 11% Sr. Nts., Series 1, 6/30/05 500,000 527,500
-----------------------------------------------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr. Sub. Nts., 9/30/05 500,000 513,750
-----------------------------------------------------------------------------------------------------------------------------
TeleWest PLC, 9.625% Sr. Debs., 10/1/06 500,000 510,625
-----------------------------------------------------------------------------------------------------------------------------
Time Warner Entertainment LP/Time Warner, Inc.:
10.15% Sr. Nts., 5/1/12 500,000 623,816
8.375% Sr. Debs., 3/15/23 500,000 543,082
-----------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 1,000,000 1,127,699
-----------------------------------------------------------------------------------------------------------------------------
TKR Cable I, Inc., 10.50% Sr. Debs., 10/30/07 1,000,000 1,176,779
-----------------------------------------------------------------------------------------------------------------------------
United States Banknote Corp., 11.625% Sr. Nts., Series B, 8/1/02 380,000 229,900
-----------
16,149,882
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub. Debs., 12/1/02 600,000 591,000
-----------------------------------------------------------------------------------------------------------------------------
Retail: Specialty - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Cole National Group, Inc., 11.25% Sr. Nts., 10/1/01 1,000,000 1,007,500
-----------------------------------------------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03 750,000 735,000
-----------
1,742,500
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Food - 0.6%
-----------------------------------------------------------------------------------------------------------------------------
Di Giorgio Corp., 12% Sr. Nts., 2/15/03 250,000 191,250
-----------------------------------------------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 1,103,000 959,610
-----------------------------------------------------------------------------------------------------------------------------
Penn Traffic Co., 9.625% Sr. Sub. Nts., 4/15/05 500,000 390,000
-----------------------------------------------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts., Series B, 8/1/99 300,000 332,250
-----------------------------------------------------------------------------------------------------------------------------
RJR Nabisco, Inc., 8.625% Medium-Term Nts., 12/1/02 500,000 519,295
-----------
2,392,405
</TABLE>
35
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals (Continued)
Healthcare/Supplies & Services - 0.6%
-----------------------------------------------------------------------------------------------------------------------------
AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (3) $ 590,129 $ 652,093
-----------------------------------------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc., 13% Sr. Sub. Nts., 7/15/02 (7) 1,000,000 1,085,000
-----------------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 500,000 548,750
----------
2,285,843
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods - 0.7%
-----------------------------------------------------------------------------------------------------------------------------
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 11.404%, 5/27/98 (5) 1,500,000 1,200,000
-----------------------------------------------------------------------------------------------------------------------------
Harman International Industries, Inc., 12% Sr. Sub. Nts., 8/1/02 1,000,000 1,105,000
-----------------------------------------------------------------------------------------------------------------------------
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., 13.169%, 3/15/98 (5) 500,000 372,500
----------
2,677,500
- -----------------------------------------------------------------------------------------------------------------------------------
Energy - 0.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services & Producers - 0.4%
-----------------------------------------------------------------------------------------------------------------------------
Coastal Corp., 11.75% Sr. Debs., 6/15/06 500,000 531,653
-----------------------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02 1,000,000 1,137,500
----------
1,669,153
- -----------------------------------------------------------------------------------------------------------------------------------
Financial - 0.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Banks - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
First Chicago Corp.:
11.25% Sub. Nts., 2/20/01 250,000 307,832
9% Sub. Nts., 6/15/99 250,000 275,295
----------
583,127
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial - 0.3%
-----------------------------------------------------------------------------------------------------------------------------
GPA Delaware, Inc., 8.75% Gtd. Nts., 12/15/98 250,000 235,625
-----------------------------------------------------------------------------------------------------------------------------
GPA Holland BV, 9.75% Medium-Term Nts., Series B, 6/10/96 (7) 1,000,000 1,000,000
----------
1,235,625
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial - 1.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials - 0.8%
-----------------------------------------------------------------------------------------------------------------------------
American Standard, Inc., 10.875% Sr. Nts., 5/15/99 500,000 546,250
-----------------------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc.:
10% Sr. Sub. Nts., 8/1/02 500,000 525,625
11% Sr. Debs., 12/1/03 500,000 566,875
-----------------------------------------------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 425,000 403,219
-----------------------------------------------------------------------------------------------------------------------------
Triangle Pacific Corp., 10.50% Sr. Nts., 8/1/03 850,000 896,750
----------
2,938,719
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services - 0.3%
-----------------------------------------------------------------------------------------------------------------------------
EnviroSource, Inc., 9.75% Sr. Nts., 6/15/03 1,250,000 1,112,500
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Talley Industries, Inc., 0%/12.25% Sr. Disc. Debs., 10/15/05 (6) 1,250,000 931,250
-----------------------------------------------------------------------------------------------------------------------------
Terex Corp., 13.75% Sr. Sec. Nts., 5/15/02 (7) 1,000,000 882,500
----------
1,813,750
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.1%
-----------------------------------------------------------------------------------------------------------------------------
Trans Ocean Container Corp., 12.25% Sr. Sub. Nts., 7/1/04 500,000 522,500
</TABLE>
36
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Non-Convertible Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Technology - 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense - 0.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Unisys Corp., 13.50% Credit Sensitive Nts., 7/1/97 (2) $1,250,000 $1,193,750
- -----------------------------------------------------------------------------------------------------------------------------------
Telecommunications-Technology - 1.6%
-----------------------------------------------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc. Nts., 12/1/04 (6) 800,000 576,000
-----------------------------------------------------------------------------------------------------------------------------
Centennial Cellular Corp., 8.875% Sr. Nts., 11/1/01 500,000 493,750
-----------------------------------------------------------------------------------------------------------------------------
Comcast Cellular Corp., Zero Coupon Nts., Series B, 7.825%, 3/5/00 (5) 1,000,000 772,500
-----------------------------------------------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance Corp.,
0%/11.375% Sr. Sub. Disc. Nts. 10/1/00 (6) 1,200,000 1,026,000
-----------------------------------------------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc. Nts., 1/15/04 (6) 1,850,000 1,489,250
-----------------------------------------------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/14% Sr. Sub. Disc. Nts., 11/15/01 (6) 1,000,000 880,000
-----------------------------------------------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II, 9.50% Sr. Nts., 2/1/04 1,000,000 995,000
----------
6,232,500
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 0.4%
-----------------------------------------------------------------------------------------------------------------------------
First PV Funding Corp., 10.15% Lease Obligation Bonds, Series 1986B, 1/15/16 1,500,000 1,547,055
- ------------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 0.4%
-----------------------------------------------------------------------------------------------------------------------------
Beaver Valley II Funding Corp., 9% Second Lease Obligation Bonds, 6/1/17 989,000 846,386
-----------------------------------------------------------------------------------------------------------------------------
California Energy Co., 0%/10.25% Sr. Disc. Nts., 1/15/04 (6) 750,000 710,625
----------
1,557,011
----------
Total Non-Convertible Corporate Bonds and Notes (Cost $58,825,378) 60,374,901
- -----------------------------------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds and Notes - 0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIQ, Inc., 7.50% Exchangeable Sub. Debs., 7/15/03 (Cost $927,514) 1,000,000 793,750
Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stocks - 47.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 3.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 1.4%
-----------------------------------------------------------------------------------------------------------------------------
Air Products & Chemicals, Inc. 2,000 105,500
-----------------------------------------------------------------------------------------------------------------------------
ARCO Chemical Co. 17,900 870,387
-----------------------------------------------------------------------------------------------------------------------------
Bayer AG, Sponsored ADR 70,000 1,851,143
-----------------------------------------------------------------------------------------------------------------------------
Dow Chemical Co. (The) 8,500 598,187
-----------------------------------------------------------------------------------------------------------------------------
Georgia Gulf Corp. 20,400 627,300
-----------------------------------------------------------------------------------------------------------------------------
Goldschmidt (T.H.) AG 430 151,718
-----------------------------------------------------------------------------------------------------------------------------
IMC Global, Inc. (11) 15,200 621,300
-----------------------------------------------------------------------------------------------------------------------------
Sybron Chemical Industries, Inc. (8) 48,000 516,000
----------
5,341,535
- -----------------------------------------------------------------------------------------------------------------------------------
Gold - 0.2%
-----------------------------------------------------------------------------------------------------------------------------
Santa Fe Pacific Gold Corp. 70,000 848,750
</TABLE>
37
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Materials (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Metals - 0.4%
-----------------------------------------------------------------------------------------------------------------------------
Brush Wellman, Inc. 69,300 $1,195,425
-----------------------------------------------------------------------------------------------------------------------------
Inco Ltd. 15,200 505,400
-----------
1,700,825
- -----------------------------------------------------------------------------------------------------------------------------------
Paper - 1.1%
-----------------------------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, Sponsored ADR, Cl. B 121,000 937,750
-----------------------------------------------------------------------------------------------------------------------------
Gaylord Container Corp., Cl. A (8) 7,180 57,889
-----------------------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp. 7,700 528,412
-----------------------------------------------------------------------------------------------------------------------------
Louisiana-Pacific Corp. (11) 31,900 773,575
-----------------------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 76,830 950,629
-----------------------------------------------------------------------------------------------------------------------------
MacMillan Bloedel Ltd. 4,200 50,925
-----------------------------------------------------------------------------------------------------------------------------
Stone Container Corp. 54,000 776,250
-----------
4,075,430
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 8.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing - 1.3%
-----------------------------------------------------------------------------------------------------------------------------
Chromcraft Revington, Inc. (8) 23,500 625,687
-----------------------------------------------------------------------------------------------------------------------------
Eaton Corp. 14,000 750,750
-----------------------------------------------------------------------------------------------------------------------------
Excel Industries, Inc. 52,000 728,000
-----------------------------------------------------------------------------------------------------------------------------
Fiat SpA 310,000 1,008,321
-----------------------------------------------------------------------------------------------------------------------------
General Motors Corp. (11) 22,500 1,189,687
-----------------------------------------------------------------------------------------------------------------------------
Hayes Wheels International, Inc. 26,000 666,250
-----------------------------------------------------------------------------------------------------------------------------
Hi-Lo Automotive, Inc. (8) 21,900 112,237
-----------
5,080,932
- -----------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment - 3.0%
-----------------------------------------------------------------------------------------------------------------------------
AMR Corp. (8)(11) 16,700 1,239,975
-----------------------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 34,100 831,187
-----------------------------------------------------------------------------------------------------------------------------
Cheesecake Factory (The) (8)(11) 30,000 645,000
-----------------------------------------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc. (8) 34,000 947,750
-----------------------------------------------------------------------------------------------------------------------------
Cracker Barrel Old Country Store, Inc. 64,000 1,104,000
-----------------------------------------------------------------------------------------------------------------------------
Eastman Kodak Co. 18,000 1,206,000
-----------------------------------------------------------------------------------------------------------------------------
International Game Technology 60,000 652,500
-----------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc. (8) 31,000 1,205,125
-----------------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 31,337 963,613
-----------------------------------------------------------------------------------------------------------------------------
Primadonna Resorts, Inc. 5,000 73,750
-----------------------------------------------------------------------------------------------------------------------------
Shaw Brothers (Hong Kong) Ltd. 127,000 139,616
-----------------------------------------------------------------------------------------------------------------------------
Shimano, Inc. 50,000 882,196
-----------------------------------------------------------------------------------------------------------------------------
US West Media Group (8) 33,000 627,000
-----------------------------------------------------------------------------------------------------------------------------
Walt Disney Co. 13,000 767,000
-----------
11,284,712
- -----------------------------------------------------------------------------------------------------------------------------------
Media - 1.7%
-----------------------------------------------------------------------------------------------------------------------------
Bowne & Co., Inc. 46,000 920,000
-----------------------------------------------------------------------------------------------------------------------------
Capital Cities/ABC, Inc. 10,000 1,233,750
-----------------------------------------------------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 75,000 1,364,062
-----------------------------------------------------------------------------------------------------------------------------
Dow Jones & Co., Inc. 18,500 737,687
-----------------------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR (7) 15,500 348,750
-----------------------------------------------------------------------------------------------------------------------------
South China Morning Post Holdings Ltd. 1,200,000 733,322
-----------------------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc. (New), TCI Group, Series A (8) 34,400 683,700
-----------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc. 14,600 552,975
-----------
6,574,246
</TABLE>
38
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: General - 1.3%
-----------------------------------------------------------------------------------------------------------------------------
Authentic Fitness Corp. 59,800 $1,240,850
-----------------------------------------------------------------------------------------------------------------------------
Cone Mills Corp. (8) 113,100 1,272,375
-----------------------------------------------------------------------------------------------------------------------------
Price/Costco, Inc. (8) 65,900 1,004,975
-----------------------------------------------------------------------------------------------------------------------------
Tuesday Morning Corp. (8) 130,000 715,000
-----------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 33,700 754,037
-----------
4,987,237
- -----------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty - 1.5%
-----------------------------------------------------------------------------------------------------------------------------
Ann Taylor Stores, Inc. (8) 46,000 471,500
-----------------------------------------------------------------------------------------------------------------------------
Best Buy Co., Inc. (8) 30,200 490,750
-----------------------------------------------------------------------------------------------------------------------------
Books-A-Million, Inc. 54,000 695,250
-----------------------------------------------------------------------------------------------------------------------------
Burlington Coat Factory Warehouse Corp. 62,000 635,500
-----------------------------------------------------------------------------------------------------------------------------
Castorama Dubois Investissements LP 4,131 677,466
-----------------------------------------------------------------------------------------------------------------------------
Justin Industries, Inc. 85,000 935,000
-----------------------------------------------------------------------------------------------------------------------------
Toys 'R' Us, Inc. (8) 61,400 1,335,450
-----------------------------------------------------------------------------------------------------------------------------
Venture Stores, Inc. 98,600 332,775
-----------
5,573,691
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 8.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Guinness PLC 100,000 735,932
-----------------------------------------------------------------------------------------------------------------------------
Whitman Corp. 50,400 1,171,800
-----------
1,907,732
- -----------------------------------------------------------------------------------------------------------------------------------
Food - 1.1%
-----------------------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc. 27,880 383,350
-----------------------------------------------------------------------------------------------------------------------------
Grand Union Co. (8) 6,185 46,387
-----------------------------------------------------------------------------------------------------------------------------
Groupe Danone 4,900 809,590
-----------------------------------------------------------------------------------------------------------------------------
McCormick & Co., Inc., Non-Vtg. 31,000 747,875
-----------------------------------------------------------------------------------------------------------------------------
Nestle SA, Sponsored ADR 12,000 665,363
-----------------------------------------------------------------------------------------------------------------------------
Sara Lee Corp. (11) 50,800 1,619,250
-----------
4,271,815
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs - 3.6%
-----------------------------------------------------------------------------------------------------------------------------
Abbott Laboratories 18,000 751,500
-----------------------------------------------------------------------------------------------------------------------------
Agouron Pharmaceuticals, Inc. (8) 20,000 655,000
-----------------------------------------------------------------------------------------------------------------------------
American Home Products Corp. 10,000 970,000
-----------------------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 15,500 619,794
-----------------------------------------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 25,000 2,146,875
-----------------------------------------------------------------------------------------------------------------------------
Ciba-Geigy AG 2,700 2,381,695
-----------------------------------------------------------------------------------------------------------------------------
COR Therapeutics, Inc. (8) 50,000 418,750
-----------------------------------------------------------------------------------------------------------------------------
Foundation Health Corp. (8) 24,000 1,032,000
-----------------------------------------------------------------------------------------------------------------------------
Genzyme Corp. (8)(11) 25,200 1,571,850
-----------------------------------------------------------------------------------------------------------------------------
Johnson & Johnson 13,500 1,155,937
-----------------------------------------------------------------------------------------------------------------------------
NBTY, Inc. (8) 217,800 1,034,550
-----------------------------------------------------------------------------------------------------------------------------
Smithkline Beecham PLC, ADR Equity Units (one ADR represents
five equity units, each unit consists of one cl. B ordinary
share and one share of cumulative participating preferred stock) (9) 17,000 943,500
-----------
13,681,451
</TABLE>
39
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 2.9%
-----------------------------------------------------------------------------------------------------------------------------
Biomet, Inc. (8) 52,100 $ 931,287
-----------------------------------------------------------------------------------------------------------------------------
Community Psychiatric Centers 50,000 612,500
-----------------------------------------------------------------------------------------------------------------------------
Manor Care, Inc. (11) 33,185 1,161,475
-----------------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. (11) 18,700 1,044,862
-----------------------------------------------------------------------------------------------------------------------------
Nellcor Puritan Bennett, Inc. (8)(11) 6,600 382,800
-----------------------------------------------------------------------------------------------------------------------------
NovaCare, Inc. (8) 14,900 76,362
-----------------------------------------------------------------------------------------------------------------------------
Pyxis Corp. (8) 51,900 759,037
-----------------------------------------------------------------------------------------------------------------------------
Sofamor Danek Group, Inc. (8)(11) 45,000 1,276,875
-----------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. (11) 49,000 2,278,500
-----------------------------------------------------------------------------------------------------------------------------
Value Health, Inc. (8) 36,500 1,003,750
-----------------------------------------------------------------------------------------------------------------------------
Wellpoint Health Networks, Inc., Cl. A (8) 45,700 1,468,112
-----------
10,995,560
- -----------------------------------------------------------------------------------------------------------------------------------
Household Goods - 0.3%
-----------------------------------------------------------------------------------------------------------------------------
Procter & Gamble Co. 12,000 996,000
-----------------------------------------------------------------------------------------------------------------------------
Scott's Liquid Gold, Inc. 57,200 164,450
-----------
1,160,450
- -----------------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. (11) 20,000 1,810,000
- -----------------------------------------------------------------------------------------------------------------------------------
Energy - 2.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Energy Services & Producers - 1.0%
-----------------------------------------------------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR 42,300 798,413
-----------------------------------------------------------------------------------------------------------------------------
Kerr-McGee Corp. 12,000 762,000
-----------------------------------------------------------------------------------------------------------------------------
Landmark Graphics Corp. (8) 53,900 1,253,175
-----------------------------------------------------------------------------------------------------------------------------
Western Atlas, Inc. (8) 22,000 1,111,000
-----------
3,924,588
- -----------------------------------------------------------------------------------------------------------------------------------
Oil-Integrated - 1.9%
-----------------------------------------------------------------------------------------------------------------------------
Ashland Coal, Inc. 19,600 418,950
-----------------------------------------------------------------------------------------------------------------------------
Ashland, Inc. 25,000 878,125
-----------------------------------------------------------------------------------------------------------------------------
Atlantic Richfield Co. 11,900 1,317,925
-----------------------------------------------------------------------------------------------------------------------------
Louisiana Land & Exploration Co. 23,100 990,413
-----------------------------------------------------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 10,000 1,411,250
-----------------------------------------------------------------------------------------------------------------------------
Saga Petroleum AS, Cl. A 12,000 160,498
-----------------------------------------------------------------------------------------------------------------------------
Saga Petroleum AS, Cl. B 19,000 237,581
-----------------------------------------------------------------------------------------------------------------------------
Total SA, Sponsored ADR 22,701 771,834
-----------------------------------------------------------------------------------------------------------------------------
Unocal Corp. 22,000 640,750
-----------------------------------------------------------------------------------------------------------------------------
Yukong Ltd., GDR (7)(8) 27,500 268,125
-----------------------------------------------------------------------------------------------------------------------------
Yukong Ltd., GDR (8) 958 9,131
-----------------------------------------------------------------------------------------------------------------------------
Yukong Ltd., GDR (8) 2,336 22,265
-----------
7,126,847
- -----------------------------------------------------------------------------------------------------------------------------------
Financial - 5.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Banks - 2.1%
-----------------------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA 115,000 1,017,946
-----------------------------------------------------------------------------------------------------------------------------
Chemical Banking Corp. 52,700 3,096,125
-----------------------------------------------------------------------------------------------------------------------------
Deutsche Bank, Sponsored ADR 13,250 629,229
-----------------------------------------------------------------------------------------------------------------------------
NationsBank Corp. 47,200 3,286,300
-----------
8,029,600
</TABLE>
40
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Financial (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial - 1.3%
-----------------------------------------------------------------------------------------------------------------------------
American Express Co. 35,000 $1,448,125
-----------------------------------------------------------------------------------------------------------------------------
H & R Block, Inc. 32,400 1,312,200
-----------------------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones, SA 214,506 540,659
-----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. (11) 9,800 499,800
-----------------------------------------------------------------------------------------------------------------------------
Salomon, Inc. 18,400 653,200
-----------------------------------------------------------------------------------------------------------------------------
Santa Anita Realty Enterprises, Inc., Units (each unit consists
of one share of Santa Anita Operating Co. and one share
of Santa Anita Realty Enterprises, Inc., common stock) (9)(10) 40,000 475,000
-----------
4,928,984
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance - 1.6%
-----------------------------------------------------------------------------------------------------------------------------
Aetna Life & Casualty Co. (11) 9,000 623,250
-----------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. (11) 16,200 1,498,500
-----------------------------------------------------------------------------------------------------------------------------
American Re Corp. (11) 48,000 1,962,000
-----------------------------------------------------------------------------------------------------------------------------
Berkley (W.R.) Corp. 21,000 1,128,750
-----------------------------------------------------------------------------------------------------------------------------
UNUM Corp. 13,600 748,000
-----------
5,960,500
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial - 5.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.5%
-----------------------------------------------------------------------------------------------------------------------------
Core Industries, Inc. 50,000 643,750
-----------------------------------------------------------------------------------------------------------------------------
General Electric Co. 18,000 1,296,000
-----------
1,939,750
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Materials - 1.2%
-----------------------------------------------------------------------------------------------------------------------------
Corning, Inc. 37,200 1,190,400
-----------------------------------------------------------------------------------------------------------------------------
Insituform Technologies, Cl. A (8) 34,500 401,063
-----------------------------------------------------------------------------------------------------------------------------
Interpool, Inc. 37,500 670,313
-----------------------------------------------------------------------------------------------------------------------------
Owens-Corning Fiberglass Corp. (8)(11) 30,000 1,346,250
-----------------------------------------------------------------------------------------------------------------------------
U.S. Can Corp. (8) 65,000 877,500
-----------------------------------------------------------------------------------------------------------------------------
Walter Industries, Inc. (8) 2,645 34,716
-----------
4,520,242
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial Services - 0.3%
-----------------------------------------------------------------------------------------------------------------------------
Ecolab, Inc. 23,400 702,000
-----------------------------------------------------------------------------------------------------------------------------
Huarte SA 50,150 226,534
-----------
928,534
- -----------------------------------------------------------------------------------------------------------------------------------
Manufacturing - 1.9%
-----------------------------------------------------------------------------------------------------------------------------
Citic Pacific Ltd. 216,000 738,910
-----------------------------------------------------------------------------------------------------------------------------
Griffon Corp. (8) 80,000 720,000
-----------------------------------------------------------------------------------------------------------------------------
Harnischfeger Industries, Inc. (11) 21,000 698,250
-----------------------------------------------------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 128,000 779,727
-----------------------------------------------------------------------------------------------------------------------------
Jardine Matheson Holdings Ltd. 50,468 345,706
-----------------------------------------------------------------------------------------------------------------------------
Johnstown America Industries, Inc. (8) 20,000 100,000
-----------------------------------------------------------------------------------------------------------------------------
Mannesmann AG 3,287 1,048,375
-----------------------------------------------------------------------------------------------------------------------------
Pacific Dunlop Ltd. 400,000 937,273
-----------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 26,000 1,290,250
-----------------------------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Co. 55,000 584,375
-----------
7,242,866
</TABLE>
41
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Industrial (Continued)
Transportation - 1.3%
-------------------------------------------------------------------------------------------
Airborne Freight Corp. 41,000 $1,091,625
-------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 13,600 1,060,800
-------------------------------------------------------------------------------------------
Consolidated Freightways, Inc. (11) 51,800 1,372,700
-------------------------------------------------------------------------------------------
Stolt-Nielsen SA 44,100 1,273,388
-----------
4,798,513
- -------------------------------------------------------------------------------------------------
Technology - 11.9%
- -------------------------------------------------------------------------------------------------
Aerospace/Defense - 0.3%
-------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 3,600 331,200
-------------------------------------------------------------------------------------------
Rockwell International Corp. 17,900 946,463
--------------
1,277,663
- ---------------------------------------------------------------------------------------------------
Computer Hardware - 2.7%
---------------------------------------------------------------------------------------------
Amdahl Corp. (8) 70,000 595,000
---------------------------------------------------------------------------------------------
Bay Networks, Inc. (8)(11) 18,007 740,538
---------------------------------------------------------------------------------------------
Cabletron Systems, Inc. (8)(11) 17,000 1,377,000
---------------------------------------------------------------------------------------------
EMC Corp. (8) 39,600 608,850
---------------------------------------------------------------------------------------------
International Business Machines Corp. 14,400 1,321,200
---------------------------------------------------------------------------------------------
Moore Corp. Ltd. 31,600 588,550
---------------------------------------------------------------------------------------------
Norand Corp. (8) 28,400 333,700
---------------------------------------------------------------------------------------------
Proxima Corp. (8) 50,000 1,106,250
---------------------------------------------------------------------------------------------
Seagate Technology, Inc. (8)(11) 11,700 555,750
---------------------------------------------------------------------------------------------
Storage Technology Corp. (New) (8) 33,000 787,875
---------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (8)(11) 24,400 1,113,250
---------------------------------------------------------------------------------------------
Xerox Corp. (11) 8,500 1,164,500
-------------
10,292,463
- ---------------------------------------------------------------------------------------------------
Computer Software - 3.9%
---------------------------------------------------------------------------------------------
BMC Software, Inc. (8)(11) 13,000 555,750
---------------------------------------------------------------------------------------------
Computer Associates International, Inc. 28,650 1,629,469
---------------------------------------------------------------------------------------------
Davidson & Associates, Inc. 32,000 704,000
---------------------------------------------------------------------------------------------
Electronic Arts, Inc. (8)(11) 35,900 937,888
---------------------------------------------------------------------------------------------
Informix Corp. (8)(11) 32,000 960,000
---------------------------------------------------------------------------------------------
Marcam Corp. (8) 72,000 1,098,000
---------------------------------------------------------------------------------------------
Microsoft Corp. (8)(11) 5,400 473,850
---------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 32,000 2,435,249
---------------------------------------------------------------------------------------------
Novell, Inc. (8) 106,400 1,516,200
---------------------------------------------------------------------------------------------
PsiNet, Inc. (8) 23,000 526,125
---------------------------------------------------------------------------------------------
Structural Dynamics Research Corp. (8)(11) 48,000 1,410,000
---------------------------------------------------------------------------------------------
Symantec Corp. (8)(11) 107,364 2,496,213
---------------
14,742,744
- ---------------------------------------------------------------------------------------------------
Electronics - 3.5%
---------------------------------------------------------------------------------------------
Advanced Micro Devices, Inc. (11) 38,000 627,000
---------------------------------------------------------------------------------------------
CAE, Inc. 115,433 878,121
---------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 23,100 1,134,788
---------------------------------------------------------------------------------------------
Hewlett-Packard Co. (11) 15,000 1,256,250
---------------------------------------------------------------------------------------------
Integrated Silicon Solution, Inc. (8) 30,600 512,072
---------------------------------------------------------------------------------------------
Intel Corp. (11) 55,400 3,143,950
---------------------------------------------------------------------------------------------
Kyocera Corp. 10,000 743,565
---------------------------------------------------------------------------------------------
Philips Electronics NV 29,000 1,049,290
</TABLE>
42
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Technology (Continued)
- -------------------------------------------------------------------------------------------------
Electronics (Continued)
---------------------------------------------------------------------------------------------
Samsung Electronics, GDS (New) (7)(8) 442 $ 40,443
---------------------------------------------------------------------------------------------
Samsung Electronics, GDR (7)(8) 128 11,712
---------------------------------------------------------------------------------------------
Samsung Electronics, GDS (7)(8) 34,978 2,037,469
---------------------------------------------------------------------------------------------
Samsung Electronics Ltd., Sponsored GDR (7) 649 59,384
---------------------------------------------------------------------------------------------
Texas Instruments, Inc. 10,000 517,500
---------------------------------------------------------------------------------------------
VLSI Technology, Inc. (8)(11) 35,600 645,250
---------------------------------------------------------------------------------------------
Xilinx, Inc. (11) 18,200 555,100
---------------
13,211,894
- ---------------------------------------------------------------------------------------------------
Telecommunications-Technology - 1.5%
---------------------------------------------------------------------------------------------
Airtouch Communications, Inc. (8) 50,000 1,412,500
---------------------------------------------------------------------------------------------
AT&T Corp. 7,200 466,200
---------------------------------------------------------------------------------------------
EchoStar Communications Corp., Cl. A 6,600 120,038
---------------------------------------------------------------------------------------------
ECI Telecommunications Ltd. (11) 51,000 1,163,438
---------------------------------------------------------------------------------------------
Kinnevik Investments AB Free, Series B 24,500 767,103
---------------------------------------------------------------------------------------------
MCI Communications Corp. (11) 47,000 1,227,875
---------------------------------------------------------------------------------------------
Tellabs, Inc. 16,000 592,000
----------------
5,749,154
- ---------------------------------------------------------------------------------------------------
Utilities - 1.3%
- ---------------------------------------------------------------------------------------------------
Electric Utilities - 0.4%
---------------------------------------------------------------------------------------------
Public Service Enterprise Group, Inc. 35,000 1,071,875
---------------------------------------------------------------------------------------------
Verbund Oest Electriz 9,400 565,665
----------------
1,637,540
- ---------------------------------------------------------------------------------------------------
Gas Utilities - 0.3%
---------------------------------------------------------------------------------------------
Hong Kong & China Gas 293,760 473,014
---------------------------------------------------------------------------------------------
Southwestern Energy Co. 60,000 765,000
----------------
1,238,014
- ---------------------------------------------------------------------------------------------------
Telephone Utilities - 0.6%
---------------------------------------------------------------------------------------------
BCE, Inc. 33,000 1,138,500
---------------------------------------------------------------------------------------------
US West Communications Group 28,000 1,001,000
----------------
2,139,500
----------------
Total Common Stocks (Cost $142,464,823) 178,983,762
- ---------------------------------------------------------------------------------------------------
Preferred Stocks - 1.2%
- ---------------------------------------------------------------------------------------------------
Alumax, Inc., $4.00 Cv., Series A 8,000 1,032,000
---------------------------------------------------------------------------------------------
Cyprus Amax Minerals Co., $4.00 Cv., Series A 24,000 1,422,000
---------------------------------------------------------------------------------------------
Delta Air Lines, Inc., $3.50 Cv. Depositary Shares, Series C 13,200 783,750
---------------------------------------------------------------------------------------------
K-III Communications Corp., Sr. Exchangeable, Series A 20,000 545,000
---------------------------------------------------------------------------------------------
Pantry Pride, Inc., $14.875 Exchangeable, Series B 8,000 828,000
----------------
Total Preferred Stocks (Cost $4,053,627) 4,610,750
Units
- ---------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates - 0.0%
- ---------------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 6,000 36,000
---------------------------------------------------------------------------------------------
Gaylord Container Corp. Wts., Exp. 7/96 9,232 69,240
---------------------------------------------------------------------------------------------
Icon Health & Fitness, Inc. Wts., Exp. 11/99 (7) 1,000 25,000
</TABLE>
43
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Shares (Note 1)
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates (Continued)
- ---------------------------------------------------------------------------------------------------
People's Choice TV Corp. Wts., Exp. 6/00 500 $ 5,000
---------------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 5/02 (7) 4,000 8,000
----------------
Total Rights, Warrants and Certificates (Cost $20,771) 143,240
Principal
Amount(1)
- ---------------------------------------------------------------------------------------------------
Repurchase Agreement - 13.7%
- ---------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
5.90%, dated 12/29/95, to be repurchased at $52,234,220
on 1/2/96, collateralized by U.S. Treasury Nts.,
5.125%-8.75%, 12/31/96-11/5/04, with a value of
$28,334,538, U.S. Treasury Bonds, 6.25%-11.25%,
8/15/03-8/15/23, with a value of $17,171,411, and
U.S. Treasury Bills maturing 11/14/96, with
a value of $7,786,989(Cost $52,200,000) $52,200,000 52,200,000
---------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $336,724,928) 99.4% 378,826,790
---------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.6 2,436,374
-------------- ----------------
Net Assets 100.0% $381,263,164
============== ================
</TABLE>
1. Principal amount is reported in U.S. Dollars, except for those
denoted in the following currencies:
AUD - Australian Dollar ITL - Italian Lira
CAD - Canadian Dollar MXP - Mexican Peso
DKK - Danish Krone PLZ - Polish Zloty
GBP - British Pound Sterling ZAR - Zaire Makuta
2. Represents the current interest rate for a variable rate security.
3. Interest or dividend is paid in kind.
4. Represents the current interest rate for an increasing rate security.
5. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
6. Denotes a step bond: a zero coupon bond that converts to a fixed
rate of interest at a designated future date.
7. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines
established by the Board of Trustees. These securities amount to
$5,766,383 or 1.51% of the Fund's net assets, at December 31, 1995.
8. Non-income producing security.
9. Units may be comprised of several components, such as debt and equity
and/or warrants to purchase equity at some point in the future. For
units which represent debt securities, principal amount disclosed
represents total underlying principal.
10. Identifies issues considered to be illiquid--See Note 7 of Notes to
Financial Statements.
44
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
- --------------------------------------------------------------------------------
11. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
Shares Subject Expiration Exercise Premium Market Value
To Call Date Price Received See Note 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AMR Corp. 2,800 1/96 $ 80.00 $ 13,300 $ 1,225
Advanced Micro Devices, Inc. 6,400 1/96 45.00 13,408 400
Aetna Life & Casualty Co. 4,400 4/96 75.00 11,143 5,500
American International Group, Inc. 2,400 2/96 80.00 18,527 46,350
American Re Corp. 9,600 7/96 45.00 17,711 16,800
BMC Software, Inc. 13,000 2/96 50.00 45,108 17,875
Bay Networks, Inc. 6,000 6/96 50.00 41,069 28,500
Cabletron Systems, Inc. 3,000 1/96 60.00 13,035 61,500
Cheesecake Factory (The) 13,000 1/96 35.00 18,297 2,438
Consolidated Freightways, Inc. 12,200 6/96 30.00 21,813 33,550
ECI Telecommunications Ltd. 10,200 2/96 22.50 21,368 22,950
Electronic Arts, Inc. 10,800 3/96 35.00 79,326 8,100
General Motors Corp 4,400 6/96 55.00 11,418 11,550
Genzyme Corp. 3,700 1/96 65.00 19,313 6,013
Harnischfeger Industries, Inc. 5,200 2/96 40.00 7,451 975
Harnischfeger Industries, Inc. 5,200 5/96 35.00 10,894 8,775
Hewlett-Packard Co. 3,000 5/96 105.00 18,659 6,375
IMC Global, Inc. 7,600 1/96 32.50 8,057 62,700
IMC Global, Inc. 7,600 4/96 37.50 16,510 38,000
Informix Corp. 4,000 2/96 35.00 14,880 4,000
Informix Corp. 4,000 2/96 40.00 9,130 1,750
Informix Corp. 8,000 2/96 27.50 25,379 34,000
Informix Corp. 3,000 5/96 35.00 6,660 9,000
Intel Corp. 11,000 4/96 75.00 18,919 8,938
Louisiana-Pacific Corp. 8,000 2/96 25.00 19,259 9,500
Louisiana-Pacific Corp. 8,000 2/96 30.00 5,840 3,500
MCI Communications Corp. 10,000 4/96 30.00 12,200 5,000
Manor Care, Inc. 8,200 1/96 35.00 9,061 7,688
Medtronic, Inc. 5,000 2/96 60.00 19,849 4,375
Medtronic, Inc. 4,000 5/96 65.00 10,528 6,500
Merrill Lynch & Co., Inc. 5,500 1/96 55.00 20,459 2,063
Microsoft Corp. 1,800 1/96 105.00 17,945 113
Microsoft Corp. 1,800 1/96 115.00 9,396 113
Nellcor Puritan Bennett, Inc. 6,600 4/96 60.00 13,002 22,275
Owens-Corning Fiberglass Corp. 6,000 3/96 45.00 10,320 13,875
Philip Morris Cos., Inc. 4,000 3/96 95.00 10,130 8,000
Sara Lee Corp. 10,000 7/96 35.00 13,449 8,750
Seagate Technology, Inc. 6,000 6/96 55.00 33,569 20,250
Sofamor Danek Group, Inc. 18,000 6/96 30.00 53,458 67,500
Structural Dynamics Research Corp. 2,400 2/96 25.00 7,128 10,800
Structural Dynamics Research Corp. 7,200 5/96 30.00 15,083 24,300
Sun Microsystems, Inc. 7,600 1/96 25.00 19,140 162,450
Sun Microsystems, Inc. 6,000 4/96 35.00 18,659 78,000
Sun Microsystems, Inc. 7,000 7/96 47.50 56,331 61,250
Symantec Corp. 10,200 1/96 30.00 30,293 638
Symantec Corp. 10,200 1/96 35.00 18,818 1,913
</TABLE>
45
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Multiple Strategies Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Shares Subject Expiration Exercise Premium Market Value
To Call Date Price Received See Note 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
U.S. Healthcare, Inc. 9,800 4/96 $ 47.50 $ 31,555 $ 28,175
VLSI Technology, Inc. 6,400 4/96 25.00 15,807 7,600
VLSI Technology, Inc. 21,600 4/96 40.00 99,249 4,050
Xilinx, Inc. 3,400 6/96 35.00 19,872 15,725
Xilinx, Inc. 3,400 6/96 30.00 14,348 22,525
Xerox Corp. 1,700 7/96 150.00 13,972 9,133
---------- ----------
$1,100,095 $1,043,325
=========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
46
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Common Stocks - 95.7%
- -------------------------------------------------------------------------------------------------
Basic Materials - 1.4%
- -------------------------------------------------------------------------------------------------
Chemicals - 0.4%
Minerals Technologies, Inc. 40,000 $1,460,000
-------------------------------------------------------------------------------------------
Gold - 0.4%
-------------------------------------------------------------------------------------------
Newmont Mining Corp. 33,000 1,493,250
- -------------------------------------------------------------------------------------------------
Metals - 0.3%
-------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 37,000 1,040,625
- -------------------------------------------------------------------------------------------------
Paper - 0.3%
-------------------------------------------------------------------------------------------
Aracruz Celulose SA, Sponsored ADR, Cl. B 125,000 968,750
- -------------------------------------------------------------------------------------------------
Consumer Cyclicals - 8.7%
- -------------------------------------------------------------------------------------------------
Autos & Housing - 2.7%
-------------------------------------------------------------------------------------------
Ciadea SA 199,998 1,040,195
-------------------------------------------------------------------------------------------
General Motors Corp. 19,000 1,004,625
-------------------------------------------------------------------------------------------
Mahindra & Mahindra Ltd., GDR (1)(2) 200,000 1,183,020
-------------------------------------------------------------------------------------------
Mitsubishi Motors Corp. 400,000 3,261,217
-------------------------------------------------------------------------------------------
Volkswagen AG 10,000 3,360,635
-------------
9,849,692
- -------------------------------------------------------------------------------------------------
Leisure & Entertainment - 0.6%
- -------------------------------------------------------------------------------------------------
Filmes Lusomundo SA 205,200 2,197,808
- -------------------------------------------------------------------------------------------------
Media - 1.4%
-------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored ADR (2) 10,900 245,250
-------------------------------------------------------------------------------------------
News Corp. Ltd., ADR 150,000 3,206,250
-------------------------------------------------------------------------------------------
United International Holdings, Inc., Cl. A (1) 97,000 1,430,750
-------------
4,882,250
- -------------------------------------------------------------------------------------------------
Retail: General - 1.7%
-------------------------------------------------------------------------------------------
Ito-Yokado Co., Ltd. 55,000 3,391,123
-------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 120,000 2,685,000
-------------
6,076,123
- -------------------------------------------------------------------------------------------------
Retail: Specialty - 2.3%
-------------------------------------------------------------------------------------------
FamilyMart Co. 45,000 2,032,929
-------------------------------------------------------------------------------------------
Giordano International Ltd. 1,700,000 1,451,125
-------------------------------------------------------------------------------------------
Jurong Shipyard Ltd. 140,000 1,078,852
-------------------------------------------------------------------------------------------
Jusco Co. 85,000 2,216,639
-------------------------------------------------------------------------------------------
Moebel Walther AG, Preference 7,312 240,110
-------------------------------------------------------------------------------------------
Prodega AG 960 1,209,750
-------------
8,229,405
- -------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 20.9%
- -------------------------------------------------------------------------------------------------
Beverages - 2.7%
-------------------------------------------------------------------------------------------
Allied Domecq PLC 274,400 2,236,675
-------------------------------------------------------------------------------------------
Cadbury Schweppes PLC 400,000 3,300,827
-------------------------------------------------------------------------------------------
Hellenic Bottling Co., SA 28,300 927,095
-------------------------------------------------------------------------------------------
LVMH Moet Hennessy Louis Vuitton 15,000 3,128,593
-------------
9,593,190
- -------------------------------------------------------------------------------------------------
Food - 3.7%
-------------------------------------------------------------------------------------------
Groupe Danone 20,000 3,304,449
-------------------------------------------------------------------------------------------
Molinos Rio de la Plata SA, Cl. B 301,343 2,471,490
-------------------------------------------------------------------------------------------
Nestle SA 4,000 4,435,750
-------------------------------------------------------------------------------------------
PT Indofood Sukses Makmur (1) 417,750 2,009,795
</TABLE>
47
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares See Note 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals (Continued)
- -------------------------------------------------------------------------------------------------
Food (Continued)
-------------------------------------------------------------------------------------------
Universal Robina Corp. 2,500,000 $ 1,239,079
-----------------
13,460,563
- -------------------------------------------------------------------------------------------------
Healthcare/Drugs - 9.0%
-------------------------------------------------------------------------------------------
Amgen, Inc. 40,000 2,375,000
-------------------------------------------------------------------------------------------
Astra AB Free, Series A 100,000 3,998,669
-------------------------------------------------------------------------------------------
Ciba-Geigy AG 10,000 8,821,093
-------------------------------------------------------------------------------------------
Genzyme Corp. (1) 60,000 3,742,500
-------------------------------------------------------------------------------------------
Johnson & Johnson 11,500 984,687
-------------------------------------------------------------------------------------------
Pharmavit GDS (5) 114,000 1,368,000
-------------------------------------------------------------------------------------------
Plant Genetics Systems (1)(3) 89,104 1,061,140
-------------------------------------------------------------------------------------------
Sankyo Co. Ltd. 140,000 3,148,761
-------------------------------------------------------------------------------------------
Sanofi SA 77,998 5,006,479
-------------------------------------------------------------------------------------------
Taisho Pharmaceutical Co. 100,000 1,977,670
-----------------
32,483,999
- -------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 3.6%
-------------------------------------------------------------------------------------------
Olympus Optical Co., Ltd. 200,000 1,938,892
-------------------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. (1) 25,500 988,125
-------------------------------------------------------------------------------------------
Rhoen Klinikum AG, Non-vtg. Preference 7,920 691,690
-------------------------------------------------------------------------------------------
Stryker Corp. 19,000 997,500
-------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 60,000 2,790,000
-------------------------------------------------------------------------------------------
United Healthcare Corp. 65,000 4,257,500
-------------------------------------------------------------------------------------------
United States Surgical Corp. 60,000 1,282,500
-----------------
12,946,207
- -------------------------------------------------------------------------------------------------
Household Goods - 0.9%
-------------------------------------------------------------------------------------------
Kao Corp. 250,000 3,102,228
- -------------------------------------------------------------------------------------------------
Tobacco - 1.0%
-------------------------------------------------------------------------------------------
B.A.T. Industries PLC 400,000 3,524,401
- -------------------------------------------------------------------------------------------------
Energy - 3.3%
- -------------------------------------------------------------------------------------------------
Energy Services & Producers - 3.0%
-------------------------------------------------------------------------------------------
Baker Hughes, Inc. 80,000 1,950,000
-------------------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR 105,000 1,981,875
-------------------------------------------------------------------------------------------
Compagnie Generale de Geophysique SA (1) 24,060 792,098
-------------------------------------------------------------------------------------------
Global Marine, Inc. (1) 117,500 1,028,125
-------------------------------------------------------------------------------------------
Transocean AS (1) 292,360 5,067,135
-----------------
10,819,233
- -------------------------------------------------------------------------------------------------
Oil-Integrated - 0.3%
-------------------------------------------------------------------------------------------
Unocal Corp. 34,000 990,250
- -------------------------------------------------------------------------------------------------
Financial - 17.4%
- -------------------------------------------------------------------------------------------------
Banks - 4.9%
-------------------------------------------------------------------------------------------
Banco Bradesco SA, Preference 150,000,000 1,311,839
-------------------------------------------------------------------------------------------
Banco de Galicia Y Buenos Aires, ADR 71,000 1,464,375
-------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA, ADR 55,000 1,478,125
-------------------------------------------------------------------------------------------
Banco Wiese, Sponsored ADR 60 375
-------------------------------------------------------------------------------------------
Chase Manhattan Corp. 50,000 3,031,250
-------------------------------------------------------------------------------------------
Citicorp 45,000 3,026,250
-------------------------------------------------------------------------------------------
HSBC Holdings PLC 126,101 1,908,166
-------------------------------------------------------------------------------------------
Northern Trust Corp. 18,700 1,047,200
-------------------------------------------------------------------------------------------
Skandinaviska Enskilda Banken Group 250,000 2,074,781
</TABLE>
48
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares See Note 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Financial (Continued)
- -------------------------------------------------------------------------------------------------
Banks (Continued)
-------------------------------------------------------------------------------------------
Turkiye Garanti Bankasi AS (New) (2) 288,000 $ 2,411,885
-----------------
17,754,246
- -------------------------------------------------------------------------------------------------
Diversified Financial - 5.1%
-------------------------------------------------------------------------------------------
ABN Amro Holding NV 70,000 3,192,162
-------------------------------------------------------------------------------------------
American Express Co. 24,500 1,013,687
-------------------------------------------------------------------------------------------
First NIS Regional Fund (2)(4) 180,000 1,080,000
-------------------------------------------------------------------------------------------
Internationale Nederlanden Groep NV 35,000 2,340,627
-------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones, SA 1,028,807 2,593,094
-------------------------------------------------------------------------------------------
MBNA Corp. 50,000 1,843,750
-------------------------------------------------------------------------------------------
Nomura Securities Co. Ltd. 300,000 6,543,762
-----------------
18,607,082
- -------------------------------------------------------------------------------------------------
Insurance - 7.4%
-------------------------------------------------------------------------------------------
American International Group, Inc. 35,000 3,237,500
-------------------------------------------------------------------------------------------
Mapfre Vida Seguros 25,000 1,483,727
-------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner AG 5,587 3,864,472
-------------------------------------------------------------------------------------------
National Mutual Asia Ltd. 2,634,000 2,384,656
-------------------------------------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 4,500,200 9,975,702
-------------------------------------------------------------------------------------------
Skandia Forsakrings AB 100,000 2,708,532
-------------------------------------------------------------------------------------------
Swiss Reinsurance 2,500 2,915,741
-----------------
26,570,330
- -------------------------------------------------------------------------------------------------
Industrial - 17.8%
- -------------------------------------------------------------------------------------------------
Electrical Equipment - 2.9%
-------------------------------------------------------------------------------------------
Murata Mfg. Co. Ltd. 140,000 5,157,454
-------------------------------------------------------------------------------------------
Ushio, Inc. 100,000 1,192,419
-------------------------------------------------------------------------------------------
Yokogawa Electric Corp. 425,000 4,021,263
-----------------
10,371,136
- -------------------------------------------------------------------------------------------------
Industrial Services - 6.5%
-------------------------------------------------------------------------------------------
BIS SA (1) 81,025 6,014,276
-------------------------------------------------------------------------------------------
IHC Caland NV 80,000 2,694,965
-------------------------------------------------------------------------------------------
JGC Corp. 300,000 3,170,089
-------------------------------------------------------------------------------------------
Plettac AG 10,000 2,480,303
-------------------------------------------------------------------------------------------
VBH-Vereinigter Baubeschlag Handel AG 24,700 6,902,927
-------------------------------------------------------------------------------------------
WMX Technologies, Inc. 80,000 2,390,000
-------------
23,652,560
- -------------------------------------------------------------------------------------------------
Manufacturing - 7.5%
-------------------------------------------------------------------------------------------
Bobst Bearers AG 2,000 3,128,664
-------------------------------------------------------------------------------------------
Gildemeister AG (1) 13,862 1,259,057
-------------------------------------------------------------------------------------------
Measurex Corp. 63,800 1,802,350
-------------------------------------------------------------------------------------------
Mitsubishi Heavy Industries Ltd. 250,000 1,994,635
-------------------------------------------------------------------------------------------
Mori Seiki Co. Ltd. 160,000 3,614,095
-------------------------------------------------------------------------------------------
Powerscreen International PLC 1,330,100 8,002,313
-------------------------------------------------------------------------------------------
Traub AG (1) 33,750 3,065,444
-------------------------------------------------------------------------------------------
Valmet Corp., Cl. A 170,000 4,267,612
-----------------
27,134,170
- -------------------------------------------------------------------------------------------------
Transportation - 0.9%
-------------------------------------------------------------------------------------------
Brambles Industries Ltd. 180,000 2,008,441
-------------------------------------------------------------------------------------------
Lisnave-Estaleiros Navais de Lisbona SA (1) 450,950 1,267,856
-----------------
3,276,297
</TABLE>
49
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares See Note 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Technology - 20.3%
- -------------------------------------------------------------------------------------------------
Computer Hardware - 4.4%
-------------------------------------------------------------------------------------------
Cabletron Systems, Inc. (1) 45,000 $ 3,645,000
-------------------------------------------------------------------------------------------
Digital Equipment Corp. (1) 60,000 3,847,500
-------------------------------------------------------------------------------------------
International Business Machines Corp. 35,000 3,211,250
-------------------------------------------------------------------------------------------
Olivetti & C. SpA (1) 5,000,000 4,012,231
-------------------------------------------------------------------------------------------
QUALCOMM, Inc. (1) 25,000 1,075,000
----------------
15,790,981
- -------------------------------------------------------------------------------------------------
Computer Software - 5.5%
-------------------------------------------------------------------------------------------
Baan Co. NV (1) 30,000 1,357,500
-------------------------------------------------------------------------------------------
CSK Corp. 50,000 1,565,656
-------------------------------------------------------------------------------------------
First Data Corp. 87,118 5,826,016
-------------------------------------------------------------------------------------------
Ines Corp. (1) 60,000 1,099,352
-------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 110,000 8,371,167
-------------------------------------------------------------------------------------------
Novell, Inc. (1) 119,800 1,707,150
----------------
19,926,841
- -------------------------------------------------------------------------------------------------
Electronics - 6.5%
-------------------------------------------------------------------------------------------
General Motors Corp., Cl. H 40,000 1,965,000
-------------------------------------------------------------------------------------------
Intel Corp. 20,000 1,135,000
-------------------------------------------------------------------------------------------
Keyence Corp. 25,000 2,884,102
-------------------------------------------------------------------------------------------
Matsushita Electric Industrial Co. Ltd. (1) 180,000 2,931,605
-------------------------------------------------------------------------------------------
National Semiconductor Corp. (1) 150,000 3,337,500
-------------------------------------------------------------------------------------------
Philips Electronics NV 100,000 3,618,241
-------------------------------------------------------------------------------------------
Rohm Co. 45,000 2,543,342
-------------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV (1) 129,400 5,208,350
----------------
23,623,140
- -------------------------------------------------------------------------------------------------
Telecommunications-Technology - 3.9%
-------------------------------------------------------------------------------------------
Airtouch Communications, Inc. (1) 70,000 1,977,500
-------------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd. 1,176,400 2,099,645
-------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. 3,000 3,380,740
-------------------------------------------------------------------------------------------
Millicom International Cellular SA (1) 121,678 3,711,179
-------------------------------------------------------------------------------------------
Millicom, Inc. (1) 25,000 --
-------------------------------------------------------------------------------------------
Petersburg Long Distance, Inc. (1) 187,000 888,250
-------------------------------------------------------------------------------------------
Technology Resources Industries Berhad (1) 650,000 1,920,121
-----------------
13,977,435
- -------------------------------------------------------------------------------------------------
Utilities - 5.9%
- -------------------------------------------------------------------------------------------------
Electric Utilities - 0.5%
-------------------------------------------------------------------------------------------
Korea Electric Power Co. 50,000 1,985,240
- -------------------------------------------------------------------------------------------------
Gas Utilities - 1.3%
-------------------------------------------------------------------------------------------
Hong Kong & China Gas 2,000,000 3,220,410
-------------------------------------------------------------------------------------------
Transportadora de Gas del Sur SA 99,300 1,278,488
-----------------
4,498,898
- -------------------------------------------------------------------------------------------------
Telephone Utilities - 4.1%
-------------------------------------------------------------------------------------------
Compania de Telefonos de Chile SA 27,500 2,279,063
-------------------------------------------------------------------------------------------
Tele Danmark AS, B Shares 30,000 1,640,261
-------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA (1) 669,600 1,179,736
-------------------------------------------------------------------------------------------
Telecom Italia SpA 1,446,000 2,251,401
-------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA, Preference 5,800,000 279,283
</TABLE>
50
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares See Note 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Utilities (Continued)
- -------------------------------------------------------------------------------------------------
Telephone Utilities (Continued)
-------------------------------------------------------------------------------------------
Telefonica del Peru SA, Cl. B 3,400,031 $ 7,291,810
-----------------
14,921,554
-----------------
Total Common Stocks (Cost $321,681,583) 345,207,884
Units
- -------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates - 0.0%
- -------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 6,250 --
-------------------------------------------------------------------------------------------
Banco Bradesco SA Rts., Exp. 1/96 3,507,301 --
-------------------------------------------------------------------------------------------
Plant Genetics, Inc. Wts., Exp. 12/99 (3) 60,000 119,402
-----------------
Total Rights, Warrants and Certificates (Cost $0) 119,402
Principal
Amount(1)
- -------------------------------------------------------------------------------------------------
Repurchase Agreement - 4.8%
- -------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
5.90%, dated 12/29/95, to be repurchased at $17,311,341
on 1/2/96, collateralized by U.S. Treasury Nts., 5.125%-8.75%,
12/31/96-11/5/04, with a value of $9,390,565, U.S. Treasury Bonds,
6.25%-11.25%, 8/15/03-8/15/23, with a value of $5,690,908,
and U.S. Treasury Bills maturing 11/14/96, with a value
of $2,580,745 (Cost $17,300,000) $ 17,300,000 17,300,000
-------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $338,981,583) 100.5% 362,627,286
-------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.5) (1,648,453)
------- ------------
Net Assets 100.0% $360,978,833
======= ============
1. Non-income producing security.
2. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security
has been determined to be liquid under guidelines established by the Board
of Trustees. These securities amount to $4,920,155 or 1.36% of the Fund's
net assets, at December 31, 1995.
3. Identifies issues considered to be illiquid - See Note 7 of Notes to
Financial Statements.
4. First NIS Regional Fund, a closed end fund listed on the Luxembourg
Stock Exchange, is offered in installments. The Fund has entered the first
and second installments (70% of the total commitment). The third
installment is provisional and may be postponed indefinitely at the
discretion of the Board of NIS Fund.
5. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended December 31,
1995. The aggregate fair value of all securities of affiliated companies
as of December 31, 1995 amounted to $1,368,000. Transactions during the
period in which the issuer was an affiliate are as follows:
</TABLE>
<TABLE>
<CAPTION>
Balance Balance
December 31, 1994 Gross Additions Gross Reductions December 31, 1995
------------------------------------- --------------------------------------- Dividend
Shares Cost Shares Cost Shares Cost Shares Cost Income
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Forsheda Group AB,
Series B 100,000 $1,200,236 -- $ -- 100,000 $1,200,236 -- $ -- $ 46,900
Pharmavit GDS 100,000 1,300,000 24,000 216,000 10,000 115,000 114,000 1,401,000 15,263
---------- ------- ---------- ------------ --------
$2,500,236 $216,000 $1,315,236 $ 1,401,000 $ 62,163
========== ======== ========== =========== ========
</TABLE>
See accompanying Notes to Financial Statements.
51
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Certificates of Deposit - 3.8%
Canadian Imperial Bank CD, Zero Coupon,
28.674%, 2/8/96 (2)(3) HUF $ 33,025,000 $ 235,034
----------------------------------------------------------------------------------------
Citibank CD:
13%, 5/6/96 (2) CLP 74,934,666 184,279
27.40%, 3/22/96 (2) HUF 34,877,500 255,278
----------------------------------------------------------------------------------------
CS First Boston, Inc. CD, 15.75%, 6/11/96 (2)(4) IDR 667,200,000 291,809
----------------------------------------------------------------------------------------
Indonesia (Republic of) Bank Negara CD, Zero
Coupon, 15.914%, 6/17/96 (2)(3) IDR 500,000,000 201,253
----------------------------------------------------------------------------------------
Krungthai Thanakit CD, Zero Coupon:
11.533%, 2/29/96 (2)(3) THB 6,500,000 251,931
11.668%, 2/29/96 (2)(3) THB 3,500,000 135,655
11.292%, 3/13/96 (2)(3) THB 19,000,000 736,565
------------
Total Certificates of Deposit (Cost $2,323,164) 2,291,804
- ----------------------------------------------------------------------------------------------
Mortgage-Backed Obligations - 5.8%
- ----------------------------------------------------------------------------------------------
Government Agency - 3.9%
- ----------------------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored - 2.6%
----------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Series 176, Cl. F,
8.95%, 3/15/20 40,342 40,720
----------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
7.50%, 8/1/25 1,175,762 1,204,780
Collateralized Mtg. Obligations, Series 1992-103,
Cl. JB, 10/50%, 11/25/20 130,000 154,821
Series 1994-83, Cl. Z, 7.50%, 6/25/24 178,988 175,296
------------
1,575,617
- ----------------------------------------------------------------------------------------------
GNMA/Guaranteed - 1.3%
----------------------------------------------------------------------------------------
Government National Mortgage Assn., 6%, 11/20/25 747,956 755,436
- ----------------------------------------------------------------------------------------------
Private - 1.9%
- ----------------------------------------------------------------------------------------------
Commercial - 1.5%
----------------------------------------------------------------------------------------
FDIC Trust, Gtd. Real Estate Mtg. Investment Conduit Pass-
Through Certificates, Series 1994-C1, Cl. 2-G, 8.70%,
9/25/25 (4) 153,594 160,170
----------------------------------------------------------------------------------------
Merrill Lynch Mortgage Investors, Inc., Mtg.
Pass-Through Certificates, Series 1995-C2,
Cl. D, 8.06%, 6/15/21 (5) 496,835 509,644
----------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates:
Series 1991-M6, Cl. B4, 7.477%, 6/25/21 (5) 37,880 37,869
Series 1992-CHF, Cl. D, 8.25%, 12/25/20 126,259 130,383
Series 1993-C1, Cl. D, 9.45%, 5/25/24 91,000 96,773
------------
934,839
- ----------------------------------------------------------------------------------------------
Multi-Family - 0.4%
----------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates, Series 1994-C2, Cl. E, 8%, 4/25/25 236,608 223,299
------------
Total Mortgage-Backed Obligations (Cost $3,324,532) 3,489,191
</TABLE>
52
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
U.S. Government Obligations - 29.0%
- ----------------------------------------------------------------------------------------------
Treasury - 29.0%
- ----------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
11.625%, 11/15/02 $ 4,300,000 $ 5,799,625
13.125%, 5/15/01 2,800,000 3,796,623
6.875%, 8/15/25 1,200,000 1,354,124
8.125%, 8/15/19 163,000 205,024
----------------------------------------------------------------------------------------
U.S. Treasury Nts.:
8.75%, 8/15/00 2,125,000 2,415,194
9.25%, 1/15/96 3,500,000 3,509,842
9.375%, 4/15/96 318,000 321,875
------------
Total U.S. Government Obligations (Cost $16,639,999) 17,402,307
- ----------------------------------------------------------------------------------------------
Foreign Government Obligations - 30.1%
- ----------------------------------------------------------------------------------------------
Argentina - 0.5%
----------------------------------------------------------------------------------------
Argentina (Republic of):
Medium-Term Nts., 8%, 8/9/97 NLG 400,000 247,662
Bonds, Bonos del Tesoro, Series II, 5.898%,
9/1/97 (5) 30,000 28,984
------------
276,646
- ----------------------------------------------------------------------------------------------
Australia - 2.3%
----------------------------------------------------------------------------------------
New South Wales Treasury Corp. Gtd. Exch.
Bonds, 12% 12/1/01 AUD 140,000 123,469
----------------------------------------------------------------------------------------
Queensland Treasury Corp. Gtd. Nts., 8%,
8/14/01 AUD 1,068,000 795,672
----------------------------------------------------------------------------------------
Treasury Corp. of Victoria Gtd. Bonds, 10.25%,
11/15/06 AUD 90,000 75,095
----------------------------------------------------------------------------------------
Western Australia Treasury Corp. Gtd. Bonds,
10%, 7/15/05 AUD 450,000 368,968
------------
1,363,204
- ----------------------------------------------------------------------------------------------
Brazil - 1.4%
----------------------------------------------------------------------------------------
Brazil (Federal Republic of):
Eligible Interest Bonds, 6.812%, 4/15/06 (5) 500,000 343,750
Interest Due and Unpaid Bonds, 6.688%, 1/1/01 (5) 522,500 450,003
----------------------------------------------------------------------------------------
Petroquimica do Nordeste Sr. Unsec. Unsub. Nts.,
9.50%, 10/19/01 50,000 46,437
------------
840,190
- ----------------------------------------------------------------------------------------------
Bulgaria - 0.8%
----------------------------------------------------------------------------------------
Bulgaria (Republic of) Interest Arrears Bonds,
6.75%, 7/28/11 (5)(6) 1,000,000 463,750
- ----------------------------------------------------------------------------------------------
Canada - 3.2%
----------------------------------------------------------------------------------------
Canada (Government of) Bonds:
10.25%, 12/1/98 CAD 320,000 260,206
10.25%, 3/1/96 CAD 180,000 133,274
9%, 12/1/04 CAD 460,000 380,792
Series A33, 11.50%, 9/1/00 CAD 1,170,000 1,027,961
9.75%, 10/1/97 CAD 180,000 140,585
------------
1,942,818
- ----------------------------------------------------------------------------------------------
Colombia - 0.4%
----------------------------------------------------------------------------------------
Colombia (Republic of) 1989-1990 Integrated
Loan Facility Bonds, 6.875%, 7/1/01 (5)(7) 257,160 239,159
</TABLE>
53
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Foreign Government Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Costa Rica - 0.5%
----------------------------------------------------------------------------------------
Central Bank of Costa Rica Principal Bonds,
Series A, 6.25%, 2/21/10 $ 500,000 $ 310,000
- ----------------------------------------------------------------------------------------------
Denmark -2.0%
----------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds:
7%, 11/10/24 DKK 1,600,000 257,534
8%, 3/15/06 DKK 1,000,000 190,281
8%, 5/15/03 DKK 4,000,000 767,332
------------
1,215,147
- ----------------------------------------------------------------------------------------------
Ecuador - 0.7%
----------------------------------------------------------------------------------------
Ecuador (Republic of) Disc. Bonds, 6.812%,
2/28/25 (5) 800,000 407,000
- ----------------------------------------------------------------------------------------------
France - 0.2%
----------------------------------------------------------------------------------------
France (Government of) Obligation Assimilable
du Tresor Debs.:
8.50%, 10/25/08 FRF 200,000 46,782
8.50%, 4/25/03 FRF 200,000 45,722
------------
92,504
- ----------------------------------------------------------------------------------------------
Germany - 1.2%
----------------------------------------------------------------------------------------
Germany (Republic of) Bonds:
7.75%, 10/1/04 DEM 480,000 368,465
Series 86, 6%, 6/20/16 DEM 100,000 64,327
Series 94, 7.50%. 11/11/04 DEM 400,000 307,809
------------
740,601
- ----------------------------------------------------------------------------------------------
Great Britain - 1.5%
----------------------------------------------------------------------------------------
United Kingdom:
Treasury Nts., 9.50%, 4/18/05 GBP 70,000 123,286
GILT, 10%, 9/8/03 GBP 425,000 765,432
------------
888,718
- ----------------------------------------------------------------------------------------------
Italy - 2.7%
----------------------------------------------------------------------------------------
Italy (Republic of) Treasury Bonds, Buoni
del Tesoro Poliennali:
10.50%, 7/15/00 ITL 315,000,000 200,151
11.50%, 3/1/03 ITL 965,000,000 634,757
10.50%, 7/15/98 ITL 1,260,000,000 800,129
------------
1,635,037
- ----------------------------------------------------------------------------------------------
Jamaica - 0.1%
----------------------------------------------------------------------------------------
Jamaica (Government of) 1990 Refinancing
Agreement Nts., Tranche A, 6.75%, 10/16/00 (5)(7) 87,500 78,750
- ----------------------------------------------------------------------------------------------
Jordan - 0.9%
----------------------------------------------------------------------------------------
Hashemite Kingdom of Jordan:
Disc. Bonds, 6.437%, 12/23/23 (5) 500,000 310,000
Par Bonds, 4%, 12/23/23 (8) 500,000 241,875
------------
551,875
- ----------------------------------------------------------------------------------------------
Mexico - 1.6%
----------------------------------------------------------------------------------------
Banco Nacional de Comercio Exterior SNC:
International Finance BV Gtd. Bonds, 10.875%,
6/23/97 (4)(5) 250,000 254,687
Zero Coupon, 10.58%, 6/5/96 (3)(4) 200,000 190,700
</TABLE>
54
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Foreign Government Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Mexico (Continued)
----------------------------------------------------------------------------------------
United Mexican States:
Banco Nacional de Comercio Exterior SNC
International Finance Bv Gtd. MatadorBonds,
7.50%, 7/1/00 $ 235,000 $ 202,100
Combined Facility 3, Loan Participation
Agreement, Tranche A, 6.50%, 9/20/97 (5)(7) 123,840 93,809
Petroleos Mexicanos Gtd. Medium-Term Nts.,
7.60%, 6/15/00 100,000 89,750
Petroleos Mexicanos Gtd. Unsec. Unsub. Nts.,
7.875%, 3/2/99 CAD 200,000 138,213
------------
969,259
- ----------------------------------------------------------------------------------------------
Morocco - 1.3%
----------------------------------------------------------------------------------------
Morocco (Kingdom of) Loan Participation Agreement:
Tranche A, 6.594%, 1/1/09 (5) 1,100,000 732,875
Tranche B, 6.521%, 1/1/04 (5) 50,000 37,625
------------
770,500
- ----------------------------------------------------------------------------------------------
New Zealand - 1.9%
----------------------------------------------------------------------------------------
New Zealand (Republic of) Bonds:
10%, 3/15/02 NZD 1,385,000 1,024,323
10%, 7/15/97 NZD 155,000 104,140
------------
1,128,463
- ----------------------------------------------------------------------------------------------
Norway - 0.7%
----------------------------------------------------------------------------------------
Norwegian Government Bonds:
5.75%, 11/30/04 NOK 1,160,000 175,473
9.50%, 10/31/02 NOK 1,435,000 268,859
------------
444,332
- ----------------------------------------------------------------------------------------------
Panama - 0.4%
----------------------------------------------------------------------------------------
Panama (Republic of) Debs., 6.75%, 5/10/02 (5) 250,000 214,219
- ----------------------------------------------------------------------------------------------
Poland - 0.3%
----------------------------------------------------------------------------------------
Poland (Republic of) Treasury Bills, Zero Coupon,
24.959%, 4/17/96 (3)PLZ 500,000 188,298
- ----------------------------------------------------------------------------------------------
Spain - 3.0%
----------------------------------------------------------------------------------------
Spain (Kingdom of):
Bills, Letras del Tesoro, Zero Coupon, 9.426%,
9/6/96 (3)ESP 10,000,000 76,720
Bonds, Bonos y Obligacion del Estado, 10.90%,
8/30/03 ESP 173,600,000 1,509,962
Gtd. Bonds, Bonos y Obligacion del Estado,
10.55%, 11/30/96 ESP 25,600,000 213,340
------------
1,800,022
- ----------------------------------------------------------------------------------------------
Supranational - 0.4%
----------------------------------------------------------------------------------------
International Bank for Reconstruction and
Development Bonds, 12.50%, 7/25/97 NZD 325,000 226,281
- ----------------------------------------------------------------------------------------------
Sweden - 1.1%
----------------------------------------------------------------------------------------
Sweden (Kingdom of) Bonds:
Series 1030, 13%, 6/15/01 SEK 300,000 54,485
Series 1033, 10.25%, 5/5/03 SEK 3,700,000 615,899
------------
670,384
- ----------------------------------------------------------------------------------------------
Trinidad & Tobago - 0.5%
----------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation
Agreement, Tranche A, 1.563%, 9/30/00 (5)(7) JPY 39,999,998 328,642
</TABLE>
55
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Foreign Government Obligations (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Venezuela - 0.5%
----------------------------------------------------------------------------------------
Venezuela (Republic of) Disc. Bonds, Series
DL, 6.563% 12/18/07 (5) $ 500,000 $ 276,250
------------
Total Foreign Government Obligations (Cost $17,588,999) 18,062,049
- ----------------------------------------------------------------------------------------------
Corporate Bonds and Notes - 25.8%
- ----------------------------------------------------------------------------------------------
Basic Industry - 1.9%
- ----------------------------------------------------------------------------------------------
Chemicals - 0.2%
----------------------------------------------------------------------------------------
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03 100,000 107,250
- ----------------------------------------------------------------------------------------------
Metals/Mining - 0.0%
----------------------------------------------------------------------------------------
UCAR Global Enterprises, Inc., 12% Sr. Sub.
Nts., 1/15/05 10,000 11,425
- ----------------------------------------------------------------------------------------------
Paper - 1.4%
----------------------------------------------------------------------------------------
Domtar, Inc., 11.25% Debs., 9/15/17 100,000 106,500
----------------------------------------------------------------------------------------
Gaylord Container Corp., 0%/12.75% Sr. Sub.
Disc. Debs., 5/15/05 (9) 200,000 197,000
----------------------------------------------------------------------------------------
Repap New Brunswick, Inc., 9.25% First
Priority Sr. Sec Nts., 7/15/00 (5) 200,000 201,000
----------------------------------------------------------------------------------------
Riverwood International Corp., 10.75% Sr.
Nts., 6/15/00 100,000 106,875
----------------------------------------------------------------------------------------
Stone Container Corp., 10.75% First Mtg. Nts.,
10/1/02 190,000 198,550
------------
809,925
- ----------------------------------------------------------------------------------------------
Steel - 0.3%
----------------------------------------------------------------------------------------
Jorgensen (Earle M.) Co., 10.75% Sr. Nts.,
3/1/00 50,000 46,250
----------------------------------------------------------------------------------------
Wheel-Pittsburgh Corp., 9.375% Sr. Nts.,
11/15/03 150,000 143,625
------------
189,875
- ----------------------------------------------------------------------------------------------
Consumer Related - 6.3%
- ----------------------------------------------------------------------------------------------
Consumer Products - 1.2%
----------------------------------------------------------------------------------------
Coleman Holdings, Inc., Zero Coupon Sr. Sec.
Disc. Nts., Series B, 12.575%, 5/27/98 (3) 50,000 40,000
----------------------------------------------------------------------------------------
Harman International Industries, Inc., 12%
Sr. Sub. Nts., 8/1/02 150,000 165,750
----------------------------------------------------------------------------------------
International Semi-Tech Microelectronics, Inc.,
0%, 11.50% Sr. Sec. Disc. Nts., 8/15/03 (9) 400,000 212,000
----------------------------------------------------------------------------------------
Tag-Heuer International SA, 12% Sr. Sub. Nts.,
12/15/05 (4) 200,000 200,750
----------------------------------------------------------------------------------------
Williams (J. B.) Holdings, Inc., 12% Sr. Nts., 3/1/04 100,000 100,000
------------
718,500
- ----------------------------------------------------------------------------------------------
Food/Beverages/Tobacco - 0.7%
----------------------------------------------------------------------------------------
Dr. Pepper Bottling Holdings, Inc., 0%/11.625%
Sr. Disc. Nts., 2/15/03 (9) 200,000 160,000
----------------------------------------------------------------------------------------
Pulsar Internacional SA de CV, 11.80% Nts.,
9/19/96 (7) 250,000 251,875
------------
411,875
- ----------------------------------------------------------------------------------------------
Healthcare - 2.0%
----------------------------------------------------------------------------------------
AmeriSource Corp., 11.25% Sr. Debs., 7/15/05 (10) 87,579 96,775
----------------------------------------------------------------------------------------
Capstone Capital Corp., 10.50% Cv. Sub. Debs.,
4/1/02 200,000 239,750
----------------------------------------------------------------------------------------
Icon Health & Fitness, Inc., 13% Sr. Sub. Nts.,
7/15/02 (4) 200,000 217,000
----------------------------------------------------------------------------------------
IVAC Corp., 9.25% Sr. Nts., 12/1/02 150,000 154,500
----------------------------------------------------------------------------------------
Quorum Health Group, Inc., 8.75% Sr. Sub. Nts.,
11/1/05 150,000 155,813
----------------------------------------------------------------------------------------
Tenet Healthcare Corp., 10.125% Sr. Sub. Nts.,
3/1/05 100,000 111,250
----------------------------------------------------------------------------------------
Total Renal Care, Inc., 0%/12% Sr. Sub. Disc.
Nts., 8/15/04 (9) 205,000 197,825
------------
1,172,913
</TABLE>
56
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Consumer Related (Continued)
- ----------------------------------------------------------------------------------------------
Hotel/Gaming - 1.6%
----------------------------------------------------------------------------------------
Bally's Casino Holdings, Inc., Zero Coupon
Sr. Disc. Nts., 9.897%, 6/15/98 (3) $ 200,000 $ 161,000
----------------------------------------------------------------------------------------
Grand Casinos, Inc., 10.125% Gtd. First Mtg.
Nts., 12/1/03 250,000 261,875
----------------------------------------------------------------------------------------
HMC Acquisition Properties, Inc., 9% Sr. Nts.,
12/15/07 (4) 150,000 150,750
----------------------------------------------------------------------------------------
Mohegan Tribal Gaming Authority, 13.50% Sr.
Sec. Nts., 11/15/02 (4) 100,000 108,500
----------------------------------------------------------------------------------------
Station Casinos, Inc., 9.625% Sr. Sub. Nts.,
6/1/03 100,000 98,500
----------------------------------------------------------------------------------------
Trump Plaza Funding, Inc., 10.875% Gtd. Mtg. Nts.,
6/15/01 150,000 156,000
------------
936,625
- ----------------------------------------------------------------------------------------------
Restaurants - 0.3%
----------------------------------------------------------------------------------------
Carrols Corp., 11.50% Sr. Nts., 8/15/03 100,000 101,500
----------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 100,000 96,250
------------
197,750
- ----------------------------------------------------------------------------------------------
Textile/Apparel - 0.5%
----------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa, Zero Coupon Promissory
Nts., 17.90%, 10/23/96 (3)IDR 300,000,000 110,084
----------------------------------------------------------------------------------------
Synthetic Industries, Inc., 12.75% Sr. Sub.
Debs., 12/1/02 200,000 197,000
------------
307,084
- ----------------------------------------------------------------------------------------------
Energy - 1.3%
----------------------------------------------------------------------------------------
Chesapeake Energy Corp., 10.50% Sr. Nts., 6/1/02 150,000 157,875
----------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc., 12.25% Sub.
Debs., 2/1/05 100,000 112,000
----------------------------------------------------------------------------------------
Plains Resources, Inc., 12% Sr. Sub. Nts., 10/1/99 100,000 104,000
----------------------------------------------------------------------------------------
Triton Energy Corp., Zero Coupon Sr. Sub. Disc.
Nts., 10.493%, 11/1/97 (3) 100,000 86,750
----------------------------------------------------------------------------------------
United Meridian Corp., 10.375% Gtd. Sr. Sub. Nts.,
10/15/05 200,000 212,500
----------------------------------------------------------------------------------------
Vintage Petroleum, Inc., 9% Sr. Sub. Nts., 12/15/05 100,000 101,250
------------
774,375
- ----------------------------------------------------------------------------------------------
Financial Services - 1.5%
- ----------------------------------------------------------------------------------------------
Banks & Thrifts - 0.9%
----------------------------------------------------------------------------------------
Banco Bamerindus do Brasil SA:
10.50% Debs., 6/23/97 100,000 92,000
11% Sr. Unsub. Unsec. Bonds, 10/6/97 100,000 92,000
----------------------------------------------------------------------------------------
Banco Ganadero SA, Zero Coupon:
Nts., 9.931%, 7/1/96 (3)(4) 100,000 95,404
Sr. Unsub. Unsec. Nts., 9.931%, 6/15/96 (3)(4) 50,000 47,904
----------------------------------------------------------------------------------------
Banco Mexicano SA, 8% Sr. Unsub. Unsec.
Exchangable Medium-Term Nts., 11/4/98 200,000 168,500
----------------------------------------------------------------------------------------
Morgan Stanley Group, 14.25% Indian Rupee
Indexed Nts., 6/26/96 INR 1,570,500 44,662
------------
540,470
- ----------------------------------------------------------------------------------------------
Diversified Financial - 0.4%
----------------------------------------------------------------------------------------
Banco del Atlantico SA, 7.875% Eurobonds, 11/5/98 200,000 170,000
----------------------------------------------------------------------------------------
Olympic Financial Ltd., 13% Sr. Nts., 5/1/00 100,000 109,500
------------
279,500
</TABLE>
57
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Financial Services (Continued)
- ----------------------------------------------------------------------------------------------
Insurance - 0.2%
----------------------------------------------------------------------------------------
Terra Nova Insurance (UK) Holdings PLC, 10.75%
Sr. Nts., 7/1/05 $ 100,000 $ 109,500
- ----------------------------------------------------------------------------------------------
Housing Related - 0.6%
- ----------------------------------------------------------------------------------------------
Building Materials - 0.1%
----------------------------------------------------------------------------------------
Pacific Lumber Co., 10.50% Sr. Nts., 3/1/03 100,000 94,875
- ----------------------------------------------------------------------------------------------
Homebuilders/Real Estate - 0.5%
----------------------------------------------------------------------------------------
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec.
Nts., Series B, 4/1/02 100,000 102,500
----------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series
1993-A 12/1/11 (4) 250,000 186,250
------------
288,750
- ----------------------------------------------------------------------------------------------
Manufacturing - 1.0%
- ----------------------------------------------------------------------------------------------
Aerospace/Electronics/Computers - 0.5%
----------------------------------------------------------------------------------------
Berg Electronics Holdings Corp., 11.375% Sr.
Sub. Debs., 5/1/03 50,000 56,250
----------------------------------------------------------------------------------------
Communications & Power Industries, Inc., 12%
Sr. Sub. Nts., 8/1/05 100,000 103,250
----------------------------------------------------------------------------------------
Rohr, Inc., 11.625% Sr. Nts., 5/15/03 100,000 109,500
----------------------------------------------------------------------------------------
Unisys Corp., 13.50% Credit Sensitive Nts.,
7/1/97 (5) 50,000 47,750
------------
316,750
- ----------------------------------------------------------------------------------------------
Automotive - 0.5%
----------------------------------------------------------------------------------------
Foamex LP/Foamex Capital Corp., 11.25% Sr.
Nts., 10/1/02 200,000 193,000
----------------------------------------------------------------------------------------
Penda Corp., 10.75% Sr. Nts., Series B, 3/1/04 150,000 126,000
------------
319,000
- ----------------------------------------------------------------------------------------------
Media - 6.0%
----------------------------------------------------------------------------------------
Broadcasting - 0.8%
----------------------------------------------------------------------------------------
Act III Broadcasting, Inc., 9.625% Sr. Sub.
Nts., 12/15/03 50,000 50,375
----------------------------------------------------------------------------------------
New City Communications, Inc., 11.375% Sr.
Sub. Nts., 11/1/03 50,000 46,500
----------------------------------------------------------------------------------------
Paxson Communications Corp., 11.625% Sr.
Sub. Nts., 10/1/02 (4) 250,000 252,500
----------------------------------------------------------------------------------------
Sinclair Broadcast Group, Inc., 10% Sr.
Sub. Nts., 12/15/03 100,000 102,500
------------
451,875
- ----------------------------------------------------------------------------------------------
Cable Television - 3.7%
----------------------------------------------------------------------------------------
American Telecasting, Inc., 0%/14.50% Sr. Disc.
Nts., 6/15/04 (9) 322,737 223,495
----------------------------------------------------------------------------------------
Australis Media Ltd., Units (each unit consists
of $1,000 principal amount of 0%/14% Sr. Sub. Disc.
Nts., 5/15/03 and one warrant to purchase 57.721
ordinary shares) (9)(11) 300,000 219,000
----------------------------------------------------------------------------------------
Bell Cablemedia PLC, 0%/11.95% Sr. Disc. Nts.,
7/15/04 (9) 100,000 71,375
----------------------------------------------------------------------------------------
Cablevision Systems Corp., 10.75% Sr. Sub.
Debs., 4/1/04 100,000 106,250
----------------------------------------------------------------------------------------
Continental Cablevision, Inc., 11% Sr. Sub.
Debs., 6/1/07 300,000 336,000
----------------------------------------------------------------------------------------
Fundy Cable Ltd., 11% Sr. Sec. Second Priority
Nts., 11/15/05 100,000 105,000
----------------------------------------------------------------------------------------
Marcus Cable Co. LP/Marcus Cable Capital Corp.,
0%/14.25% Sr. Disc. Nts., 12/15/05 (9) 200,000 137,000
----------------------------------------------------------------------------------------
Marcus Cable Operating Co. LP/Marcus Cable
Capital Corp., 0%/13.50% Gtd. Sr. Sub. Disc.
Nts., Series II, 8/1/04 (9) 200,000 149,250
</TABLE>
58
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Media (Continued)
- ----------------------------------------------------------------------------------------------
Cable Television (Continued)
----------------------------------------------------------------------------------------
Rogers Cablesystems Ltd., 10% Sr. Sec. Second
Priority Debs., 12/1/07 $ 300,000 $ 320,250
----------------------------------------------------------------------------------------
TeleWest PLC, 0%/11% Sr. Disc. Debs., 10/1/07 (9) 300,000 181,875
----------------------------------------------------------------------------------------
Time Warner Entertainment LP/Time Warner, Inc.,
8.375% Sr. Debs., 3/15/23 200,000 217,233
----------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 50,000 56,385
----------------------------------------------------------------------------------------
United International Holdings, Inc., Zero
Coupon Sr. Sec. Disc. Nts., 12.544%, 11/15/99 (3) 200,000 125,000
------------
2,248,113
- ----------------------------------------------------------------------------------------------
Diversified Media - 1.2%
----------------------------------------------------------------------------------------
Ackerley Communications, Inc., 10.75% Sr. Sec.
Nts., Series A, 10/1/03 200,000 214,000
----------------------------------------------------------------------------------------
Echostar Communications Corp., 0%/12.875% Sr. Disc.
Nts., 6/1/04 (9) 100,000 67,500
----------------------------------------------------------------------------------------
Lamar Advertising Co., 11% Sr. Sec. Nts.,
5/15/03 150,000 156,000
----------------------------------------------------------------------------------------
Outdoor Systems, Inc., 10.75% Sr. Nts., 8/15/03 100,000 97,500
----------------------------------------------------------------------------------------
Panamsat LP/Panamsat Capital Corp., 9.75% Sr.
Sec. Nts., 150,000 159,375
------------
694,375
- ----------------------------------------------------------------------------------------------
Entertainment/Film - 0.3%
----------------------------------------------------------------------------------------
Imax Corp., 7% Sr. Nts., 3/1/01 (8) 200,000 197,000
- ----------------------------------------------------------------------------------------------
Other - 0.6%
- ----------------------------------------------------------------------------------------------
Conglomerates - 0.4%
----------------------------------------------------------------------------------------
MacAndrews & Forbes Holdings, Inc., 13% Sub.
Debs., 3/1/99 175,000 177,625
----------------------------------------------------------------------------------------
Talley Industries, Inc., 0%/12.25% Sr. Disc.
Debs., 10/15/05 (9) 100,000 74,500
------------
252,125
- ----------------------------------------------------------------------------------------------
Services - 0.2%
----------------------------------------------------------------------------------------
Borg-Warner Security Corp., 9.125% Sr. Sub. Nts.,
5/1/03 100,000 91,500
- ----------------------------------------------------------------------------------------------
Retail - 0.7%
- ----------------------------------------------------------------------------------------------
Specialty Retailing - 0.2%
----------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., 12% Sr. Nts.,
10/01/03 70,000 65,450
----------------------------------------------------------------------------------------
Finlay Fine Jewelry Corp., 10.625% Sr. Nts.,
5/01/03 100,000 98,000
------------
163,450
- ----------------------------------------------------------------------------------------------
Supermarkets - 0.5%
----------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 200,000 174,000
----------------------------------------------------------------------------------------
Purity Supreme, Inc., 11.75% Sr. Sec. Nts.,
Series B, 8/1/99 100,000 110,750
------------
284,750
- ----------------------------------------------------------------------------------------------
Transportation - 0.9%
- ----------------------------------------------------------------------------------------------
Air Transportation - 0.7%
----------------------------------------------------------------------------------------
American International Group, Inc., 11.70%
Unsec. Unsub. Bonds, 12/4/01 ITL 270,000,000 179,345
----------------------------------------------------------------------------------------
Atlas Air, Inc., 12.25% Pass-Through
Certificates, 12/1/02 250,000 256,250
------------
435,595
- ----------------------------------------------------------------------------------------------
Railroads - 0.2%
----------------------------------------------------------------------------------------
Transtar Holdings LP/Transtar Capital Corp.,
0%, 13.375% Sr. Disc. Nts., Series B,
12/15/03 (9) 200,000 133,000
</TABLE>
59
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Corporate Bonds and Notes (Continued) Amount(1) (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Utilities - 5.0%
- ----------------------------------------------------------------------------------------------
Electric Utilities - 0.7%
----------------------------------------------------------------------------------------
Beaver Valley II Funding Corp., 9% Second Lease
Obligation Bonds, 6/1/17 $ 199,000 $ 170,304
----------------------------------------------------------------------------------------
El Paso Electric Co., 10.75% Lease Obligation
Bonds, 4/1/13 (12) 100,000 67,873
----------------------------------------------------------------------------------------
First PV Funding Corp., 10.30% Lease
Obligation Bonds, Series 1986A, 1/15/14 200,000 204,312
------------
442,489
- ----------------------------------------------------------------------------------------------
Telecommunications - 4.3%
----------------------------------------------------------------------------------------
A+ Network, Inc., 11.875% Sr. Sub. Nts.,
11/1/05 200,000 202,500
----------------------------------------------------------------------------------------
Call-Net Enterprises, Inc., 0%/13.25% Sr. Disc.
Nts., 12/1/04 (9) 200,000 144,000
----------------------------------------------------------------------------------------
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04 (4)(9) 150,000 106,500
----------------------------------------------------------------------------------------
Cellular Communications International, Inc.,
Zero Coupon Sr. Disc. Nts., 11.44%, 8/15/00 (3) 300,000 180,750
----------------------------------------------------------------------------------------
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts.,
9/1/03 (9) 50,000 40,063
----------------------------------------------------------------------------------------
Cencall Communications Corp., 0%/10.125%
Sr. Disc. Nts., 1/15/04 (9) 300,000 169,500
----------------------------------------------------------------------------------------
Comunicacion Celular SA, Units (each unit
consists of $1,000 principal 0%/13.125% sr.
deferred coupon bond, 11/15/03 and one warrant
to purchase 12,860 shares of common stock at
$1.32 per 1,000 shares) (4)(9)(11) 200,000 114,000
----------------------------------------------------------------------------------------
Geotek Communications, Inc., 0%/15% Sr. Sec.
Disc. Nts., 7/15/05 (9) 250,000 113,750
----------------------------------------------------------------------------------------
GST Telecommunications, Inc., Units (each unit
consists of each 0%/13.875% sr. disc. nts.,
12/15/05 and one 0%/13.875% cv. sr. sub.
disc. nt., 12/15/05) (4)(9)(11) 225,000 117,500
----------------------------------------------------------------------------------------
Horizon Cellular Telephone LP/Horizon Finance
Corp., 0%/11.375% Sr. Sub. Disc. Nts., 10/1/00 (9) 250,000 213,750
----------------------------------------------------------------------------------------
In-Flight Phone Corp., 0%/14% Sr. Disc. Nts.,
5/15/02 (9) 200,000 67,000
----------------------------------------------------------------------------------------
IntelCom Group (USA), Inc., 0%/13.50% Sr.
Disc. Nts., 9/15/05 (4)(9) 250,000 144,375
----------------------------------------------------------------------------------------
MFS Communications, Inc., 0%/9.375% Sr. Disc.
Nts., 1/15/04 (9) 200,000 161,000
----------------------------------------------------------------------------------------
Nextel Communications, Inc., 0%/11.50% Sr.
Disc. Nts., 9/1/03 (9) 300,000 185,625
----------------------------------------------------------------------------------------
PriCellular Wireless Corp., 0%/14% Sr. Sub.
Disc. Nts., 11/15/01 (9) 300,000 264,000
----------------------------------------------------------------------------------------
USA Mobile Communications, Inc. II, 14% Sr.
Nts., 11/1/04 150,000 176,250
----------------------------------------------------------------------------------------
WinStar Communications, Inc., Units (each
unit consists of two $1,000 principal amount
of 0%/14% sr. disc. nts., 10/15/05 and one
cv. sr. sub. disc. nts., 10/15/05) (4)(9)(11) 100,000 158,500
------------
2,559,063
------------
Total Corporate Bonds and Notes (Cost $15,112,269) 15,539,777
Shares
- ----------------------------------------------------------------------------------------------
Common Stocks - 0.1%
----------------------------------------------------------------------------------------
Celcaribe SA (4)(13) 24,390 29,024
----------------------------------------------------------------------------------------
EchoStar Communications Corp., Cl. A 600 10,913
</TABLE>
60
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
United International Holdings, Inc., Cl. A (13) 1,000 $ 14,750
------------
Total Common Stocks (Cost $45,399) 54,687
- ----------------------------------------------------------------------------------------------
Preferred Stocks - 1.5%
----------------------------------------------------------------------------------------
BankAmerica Corp., 8.375%, Series K 7,000 181,125
----------------------------------------------------------------------------------------
California Federal Bank, 10.625% Non-Cum., Series B 2,000 217,000
----------------------------------------------------------------------------------------
First Nationwide Bank, 11.50% Non-Cum. 2,000 224,750
----------------------------------------------------------------------------------------
Glendale Federal Bank, F.S.B., 8.75% Non-Cum.
Cv., Series E 1,000 45,250
----------------------------------------------------------------------------------------
Prime Retail, Inc., $19.00 Cv., Series B 6,000 106,500
----------------------------------------------------------------------------------------
SDW Holdings Corp., Units (each unit consists of ten
shares of sr. exchangable preferred stock and one cl.
B warrant to purchase one share of common stock) (4)(11) 375 108,750
------------
Total Preferred Stocks (Cost $865,020) 883,375
Units
- ----------------------------------------------------------------------------------------------
Rights, Warrants and Certificates - 0.1%
- ----------------------------------------------------------------------------------------------
American Telecasting, Inc. Wts., Exp. 6/99 1,500 9,000
----------------------------------------------------------------------------------------
Cellular Communications International, Inc. Wts., Exp. 8/03 300 6,750
----------------------------------------------------------------------------------------
Eye Care Centers of America, Inc. Wts., Exp.
10/03 (4) 70 350
----------------------------------------------------------------------------------------
Geotek Communications, Inc. Wts., Exp. 7/05 (4) 7,500 15,000
----------------------------------------------------------------------------------------
Icon Health & Fitness, Inc. Wts., Exp. 11/99 (4) 200 5,000
----------------------------------------------------------------------------------------
In-Flight Phone Corp. Wts., Exp. 8/02 (4) 200 --
----------------------------------------------------------------------------------------
IntelCom Group, Inc. Wts., Exp. 9/05 (4) 825 3,300
----------------------------------------------------------------------------------------
Terex Corp. Rts., Exp. 7/96 (4) 36 2
----------------------------------------------------------------------------------------
United International Securities Ltd. Wts., Exp. 11/99 200 5,712
------------
Total Rights, Warrants and Certificates (Cost $11,014) 45,114
Date Strike Contracts
- ----------------------------------------------------------------------------------------------
Put Options Purchased - 0.0%
- ----------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible
Interest Bonds, 6.812%, 4/15/06, Put Opt.
(Cost $9,750) Jan. $64.75 500 --
Principal
Amount(1)
- ----------------------------------------------------------------------------------------------
Structured Instruments - 1.6%
- ----------------------------------------------------------------------------------------------
Goldman, Sachs & Co. Argentina Local Market
Securities Trust, 11.30%, 4/1/00 [representing
debt of Argentina (Republic of) Bonos del Tesoro
Bonds, Series 10, 5.742%, 4/1/00 and an interest
rate swap between Goldman Sachs and the Trust] (7) $ 234,782 229,500
----------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Credit Linked Nts.:
11.318%, 2/15/96 (indexed to the Nota Do Tesouro
Nacional, Zero Coupon, 2/15/96 (3) 250,000 246,250
11.136%, 3/5/96 (indexed to the Nota Do Tesouro
Nacional, Zero Coupon, 3/4/96 (3) 200,000 195,680
</TABLE>
61
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Strategic Bond Fund
Statement of Investments (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Structured Instruments (Continued) Amount(1) (Note 1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
United Mexican States, Linked Nts. (indexed
to the greater of Cetes Option Amount or USD
LIBOR Option Amount, 11/27/96) (4) $ 300,000 $ 305,475
------------
Total Structured Instruments (Cost $977,638) 976,905
- ----------------------------------------------------------------------------------------------
Repurchase Agreement - 0.8%
- ----------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.90%, dated 12/29/95, to be
repurchased at $500,328 on 1/2/96, collateralized by U.S. Treasury Nts.,
6.875%, 8/31/99, with a value of $178,667, and U.S. Treasury Bonds,
7.125%-7.625%, 11/15/22-2/15/23, with a value of $336,642
(Cost $500,000) 500,000 500,000
- ----------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $57,397,784) 98.6% 59,245,209
- ----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.4 852,404
---------- -------------
Net Assets 100.0% $ 60,097,613
========== =============
</TABLE>
1. Principal amount is reported in U.S. Dollars, except for those denoted
in the following currencies:
AUD - Australian Dollar INR - Indian Rupee
CAD - Canadian Dollar ITL - Italian Lira
CLP - Chilean Peso JPY - Japanese Yen
DEM - German Deutsche Mark NLG - Netherlands Guilder
DKK - Danish Krone NOK - Norwegian Krone
ESP - Spanish Peseta NZD - New Zealand Dollar
FRF - French Franc PLZ - Polish Zloty
GBP - British Pound Sterling SEK - Swedish Krona
HUF - Hungarian Forint THB - Thai Baht
IDR - Indonesian Rupiah
2. Indexed instrument for which the principal amount and/or interest due
at maturity is affected by the relative value of a foreign currency.
3. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
4. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines established
by the Board of Trustees. These securities amount to $3,264,200 or
5.43% of the Fund's net assets, at December 31, 1995.
5. Represents the current interest rate for a variable rate security.
6. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
Principal
Subject Expiration Exercise Premium Market Value
To Call Date Price Received See Note 1
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Bulgaria (Republic of) Interest Arrears
Bonds, 6.75%, 7/28/11 1,000,000 1/96 $45 $14,300 $13,900
</TABLE>
7. Identifies issues considered to be illiquid - See Note 7 of Notes to
Financial Statements.
8. Represents the current interest rate for an increasing rate security.
9. Denotes a step bond: a zero coupon bond that converts to a fixed rate
of interest at a designated future date.
10. Interest or dividend is paid in kind.
11. Units may be comprised of several components, such as debt and equity
and/or warrants to purchase equity at some point in the future. For
units which represent debt securities, principal amount disclosed
represents total underlying principal.
12. Non-income producing--issuer is in default of interest payment.
13. Non-income producing security.
See accompanying Notes to Financial Statements.
62
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Amount (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Convertible Corporate Bonds and Notes - 2.0%
- ---------------------------------------------------------------------------------------------------
ADT Operations, Inc., Zero Coupon Cv. Sub. Nts.,
6.148%, 7/6/10 (1) $ 45,000 $ 21,375
---------------------------------------------------------------------------------------------
Continental Homes Holding Corp., 6.875% Cv. Sub.
Nts., 11/1/02 25,000 29,468
---------------------------------------------------------------------------------------------
Federated Department Stores, Inc., 5% Cv. Sub.
Nts., 10/1/03 15,000 15,169
---------------------------------------------------------------------------------------------
Sandoz Capital BVI Ltd., 2% Cv. Gtd. Sr. Unsec.
Unsub Nts. 10/6/02 (2) 20,000 19,000
----------------
Total Convertible Corporate Bonds and Notes (Cost $75,554) 85,012
Shares
- ---------------------------------------------------------------------------------------------------
Common Stocks - 74.8%
- ---------------------------------------------------------------------------------------------------
Basic Materials - 1.8%
Chemicals - 1.5%
---------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 650 45,419
---------------------------------------------------------------------------------------------
W.R. Grace & Co. 300 17,737
----------------
63,156
- ---------------------------------------------------------------------------------------------------
Paper - 0.3%
---------------------------------------------------------------------------------------------
Visioneer, Inc. (3) 700 15,575
- ---------------------------------------------------------------------------------------------------
Consumer Cyclicals - 16.0%
- ---------------------------------------------------------------------------------------------------
Autos & Housing - 1.2%
---------------------------------------------------------------------------------------------
Ford Motor Co. 800 23,200
---------------------------------------------------------------------------------------------
General Motors Corp. 500 26,437
----------------
49,637
- ---------------------------------------------------------------------------------------------------
Leisure & Entertainment - 8.2%
---------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc. (3) 1,250 34,844
---------------------------------------------------------------------------------------------
Eastman Kodak Co. 350 23,450
---------------------------------------------------------------------------------------------
Pixar, Inc. (3) 5,000 144,375
---------------------------------------------------------------------------------------------
Southwest Airlines Co. 1,000 23,250
---------------------------------------------------------------------------------------------
Western Pacific Airlines, Inc. (3) 7,500 125,625
----------------
351,544
- ---------------------------------------------------------------------------------------------------
Media - 2.5%
---------------------------------------------------------------------------------------------
Capital Cities/ABC, Inc. 250 30,844
---------------------------------------------------------------------------------------------
Comcast Corp., Cl. A Special 1,500 27,281
---------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B (3) 1,000 47,375
----------------
105,500
- ---------------------------------------------------------------------------------------------------
Retail: General - 1.7%
---------------------------------------------------------------------------------------------
Dillard Department Stores, Inc., Cl. A 1,250 35,625
---------------------------------------------------------------------------------------------
Warnaco Group, Inc. (The), Cl. A 1,500 37,500
----------------
73,125
- ---------------------------------------------------------------------------------------------------
Retail: Specialty - 2.4%
---------------------------------------------------------------------------------------------
Alco Standard Corp. 350 15,969
---------------------------------------------------------------------------------------------
Nine West Group, Inc. (3) 1,250 46,875
---------------------------------------------------------------------------------------------
Tandy Corp. 1,000 41,500
----------------
104,344
- ---------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals - 10.1%
- ---------------------------------------------------------------------------------------------------
Beverages - 0.8%
---------------------------------------------------------------------------------------------
Boston Beer Co., Inc., Cl. A (3) 800 19,000
</TABLE>
63
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals (Continued)
- ---------------------------------------------------------------------------------------------------
Beverages (Continued)
---------------------------------------------------------------------------------------------
Pete's Brewing Co. (3) 1,000 $ 14,000
----------------
33,000
- ---------------------------------------------------------------------------------------------------
Food - 0.3%
---------------------------------------------------------------------------------------------
IBP, Inc. 300 15,150
- ---------------------------------------------------------------------------------------------------
Healthcare/Drugs - 3.1%
---------------------------------------------------------------------------------------------
Amgen, Inc. 350 20,781
---------------------------------------------------------------------------------------------
Astra AB Free, Series A 1,000 39,987
---------------------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 300 25,762
---------------------------------------------------------------------------------------------
Genzyme Corp. (3) 750 46,781
----------------
133,311
- ---------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services - 2.9%
---------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 750 38,062
---------------------------------------------------------------------------------------------
HEALTHSOUTH Corp. 500 14,562
---------------------------------------------------------------------------------------------
Humana, Inc. (3) 500 13,687
---------------------------------------------------------------------------------------------
National Surgery Centers, Inc. (3) 1,000 23,000
---------------------------------------------------------------------------------------------
Tenet Healthcare Corp. (3) 1,000 20,750
---------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. 300 13,950
----------------
124,011
- ---------------------------------------------------------------------------------------------------
Household Goods - 1.7%
---------------------------------------------------------------------------------------------
Estee Lauder Cos., Inc., (The) Cl. A 3 1,500 52,312
---------------------------------------------------------------------------------------------
Kimberly-Clark Corp. 273 22,591
----------------
74,903
- ---------------------------------------------------------------------------------------------------
Tobacco - 1.3%
---------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 600 54,300
- ---------------------------------------------------------------------------------------------------
Energy - 4.4%
- ---------------------------------------------------------------------------------------------------
Energy Services & Producers - 1.8%
---------------------------------------------------------------------------------------------
Schlumberger Ltd. 500 34,625
---------------------------------------------------------------------------------------------
Weatherford Enterra, Inc. (3) 1,500 43,312
----------------
77,937
- ---------------------------------------------------------------------------------------------------
Oil-Integrated - 2.6%
Atlantic Richfield Co. 250 27,687
---------------------------------------------------------------------------------------------
Brown (Tom), Inc. (3) 1,000 14,625
---------------------------------------------------------------------------------------------
Occidental Petroleum Corp. 1,250 26,719
---------------------------------------------------------------------------------------------
Union Pacific Resources Group, Inc. 300 7,613
---------------------------------------------------------------------------------------------
Unocal Corp. 1,250 36,406
----------------
113,050
- ---------------------------------------------------------------------------------------------------
Financial - 10.5%
- ---------------------------------------------------------------------------------------------------
Banks - 7.3%
---------------------------------------------------------------------------------------------
Ahmanson (H.F.) & Co. 300 7,950
---------------------------------------------------------------------------------------------
Bankers Trust New York Corp. 250 16,625
---------------------------------------------------------------------------------------------
BayBanks, Inc. 400 39,300
---------------------------------------------------------------------------------------------
Chase Manhattan Corp. 1,000 60,625
---------------------------------------------------------------------------------------------
Commercial Federal Corp. 1,000 37,750
---------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 1,000 40,750
---------------------------------------------------------------------------------------------
Great Western Financial Corp. 1,400 35,700
---------------------------------------------------------------------------------------------
Meridian Bancorp, Inc. 900 41,850
---------------------------------------------------------------------------------------------
Midlantic Corp. 500 32,813
----------------
313,363
</TABLE>
64
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Financial (Continued)
- ---------------------------------------------------------------------------------------------------
Diversified Financial - 2.4%
---------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 350 $ 43,444
---------------------------------------------------------------------------------------------
H & R Block, Inc. 225 9,113
---------------------------------------------------------------------------------------------
Investors Financial Services Corp. (3) 1,500 31,125
---------------------------------------------------------------------------------------------
Travelers Group, Inc. 300 18,863
----------------
102,545
- ---------------------------------------------------------------------------------------------------
Insurance - 0.8%
---------------------------------------------------------------------------------------------
Meadowbrook Insurance Group, Inc. (3) 1,000 33,500
- ---------------------------------------------------------------------------------------------------
Industrial - 9.4%
- ---------------------------------------------------------------------------------------------------
Electrical Equipment - 1.3%
---------------------------------------------------------------------------------------------
General Electric Co. 200 14,400
---------------------------------------------------------------------------------------------
Honeywell, Inc. 800 38,900
----------------
53,300
- ---------------------------------------------------------------------------------------------------
Industrial Services - 5.6%
---------------------------------------------------------------------------------------------
CIBER, Inc. (3) 1,000 23,375
---------------------------------------------------------------------------------------------
DST Systems, Inc. (3) 1,500 42,750
---------------------------------------------------------------------------------------------
META Group, Inc. (3) 5,000 153,125
---------------------------------------------------------------------------------------------
Vigoro Corp. 350 21,613
----------------
240,863
- ---------------------------------------------------------------------------------------------------
Manufacturing - 2.2%
---------------------------------------------------------------------------------------------
American Standard Cos., Inc. (3) 1,750 49,000
---------------------------------------------------------------------------------------------
Hanson PLC, ADR 2,000 30,500
---------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 200 13,250
----------------
92,750
- ---------------------------------------------------------------------------------------------------
Transportation - 0.3%
---------------------------------------------------------------------------------------------
Canadian National Railway Co. (3) 1,000 15,000
- ---------------------------------------------------------------------------------------------------
Technology - 22.2%
- ---------------------------------------------------------------------------------------------------
Aerospace/Defense - 0.5%
---------------------------------------------------------------------------------------------
Lockheed Martin Corp. 250 19,750
- ---------------------------------------------------------------------------------------------------
Computer Hardware - 5.9%
---------------------------------------------------------------------------------------------
Cabletron Systems, Inc. (3) 250 20,250
---------------------------------------------------------------------------------------------
Citrix Systems, Inc. (3) 500 16,250
---------------------------------------------------------------------------------------------
International Business Machines Corp. 850 77,988
---------------------------------------------------------------------------------------------
Lexmark International Group, Inc., Cl. A (3) 1,500 27,375
---------------------------------------------------------------------------------------------
Network Appliance, Inc. (3) 1,100 44,138
---------------------------------------------------------------------------------------------
Objective Systems Integrators, Inc. (3) 500 27,375
---------------------------------------------------------------------------------------------
Quantum Corp. (3) 1,250 20,156
---------------------------------------------------------------------------------------------
Sun Microsystems, Inc. (3) 400 18,250
----------------
251,782
- ---------------------------------------------------------------------------------------------------
Computer Software - 10.1%
---------------------------------------------------------------------------------------------
Adobe Systems, Inc. 250 15,500
---------------------------------------------------------------------------------------------
Advent Software, Inc. (3) 1,800 31,950
---------------------------------------------------------------------------------------------
Arbor Software Corp. (3) 1,000 47,250
---------------------------------------------------------------------------------------------
Autodesk, Inc. 500 17,125
---------------------------------------------------------------------------------------------
Black Box Corp. (3) 750 12,281
---------------------------------------------------------------------------------------------
Fractal Design Corp. (3) 2,000 28,000
---------------------------------------------------------------------------------------------
IDX Systems Corp. (3) 700 24,325
---------------------------------------------------------------------------------------------
Informix Corp. (3) 250 7,500
---------------------------------------------------------------------------------------------
Logic Works, Inc. (3) 500 6,250
</TABLE>
65
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Market Value
Common Stocks (Continued) Shares (Note 1)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
Technology (Continued)
- ---------------------------------------------------------------------------------------------------
Computer Software (Continued)
---------------------------------------------------------------------------------------------
MetaTools, Inc. (3) 500 $ 13,000
---------------------------------------------------------------------------------------------
Oracle Corp. (3) 250 10,594
---------------------------------------------------------------------------------------------
Platinum Technology, Inc. (3) 1,200 22,050
---------------------------------------------------------------------------------------------
Secure Computing Corp. (3) 2,000 112,000
---------------------------------------------------------------------------------------------
Sync Research, Inc. (3) 1,300 58,825
---------------------------------------------------------------------------------------------
Visio Corp. (3) 1,000 28,250
----------------
434,900
- ---------------------------------------------------------------------------------------------------
Electronics - 2.0%
---------------------------------------------------------------------------------------------
Intel Corp. 600 34,050
---------------------------------------------------------------------------------------------
Photon Dynamics, Inc. 3 1,500 12,000
---------------------------------------------------------------------------------------------
Texas Instruments, Inc. 750 38,813
----------------
84,863
- ---------------------------------------------------------------------------------------------------
Telecommunications-Technology - 3.7%
---------------------------------------------------------------------------------------------
AT&T Corp. 400 25,900
---------------------------------------------------------------------------------------------
DSC Communications Corp. 3 750 27,656
---------------------------------------------------------------------------------------------
LCI International, Inc. 3 200 4,100
---------------------------------------------------------------------------------------------
VTEL Corp. 3 1,500 27,750
---------------------------------------------------------------------------------------------
Westell Technologies, Inc., Cl. A 3 3,000 75,375
----------------
160,781
- ---------------------------------------------------------------------------------------------------
Utilities - 0.4%
- ---------------------------------------------------------------------------------------------------
Electric Utilities - 0.4%
---------------------------------------------------------------------------------------------
SCEcorp 1,000 17,750
----------------
Total Common Stocks (Cost $2,723,302) 3,209,690
- ---------------------------------------------------------------------------------------------------
Preferred Stocks - 5.8%
- ---------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cv.
Depositary Shares 750 20,437
---------------------------------------------------------------------------------------------
James River Corp. of Virginia, Depositary Shares
each representing a one-hundredth interest in a
share of Series P, 9% Cum. Cv. Preferred Stock,
Dividend Enhanced Convertible Stock 1,000 23,375
---------------------------------------------------------------------------------------------
Bally Entertainment Corp., 8% Cv. Preferred
Redeemable Increased Dividend Equity Securities 1,500 20,437
---------------------------------------------------------------------------------------------
Continental Airlines Finance Trust, 8.50% Cv.
Trust Originated Preferred Securities (2) 500 26,750
---------------------------------------------------------------------------------------------
Delta Air Lines, Inc., $3.50 Cv. Depositary
Shares, Series C 500 29,688
---------------------------------------------------------------------------------------------
Cablevision Systems Corp., 8.50% Cum. Cv.,
Series I 1,000 27,250
---------------------------------------------------------------------------------------------
Fidelity Federal Bank, 12% Non-Cum. Exchangeable
Perpetual Preferred Stock, Series A 1,000 25,375
---------------------------------------------------------------------------------------------
Advanta Corp., Stock Appreciation Income Linked
Securities (each representing a one-hundredth
interest in a share of 6.75% Cv. Cl. B Preferred
Stock, Series 1995) 500 19,375
---------------------------------------------------------------------------------------------
SunAmerica, Inc., $3.10 Cum. Cv. Depositary Shares 500 32,750
---------------------------------------------------------------------------------------------
Elsag Bailey Financing Trust, 5.50% Cv. Trust
Originated Preferred Securities (2) 500 25,188
----------------
Total Preferred Stocks (Cost $241,615) 250,625
</TABLE>
66
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund
Statement of Investments
December 31, 1995
<TABLE>
<CAPTION>
Principal Market Value
Amount (Note 1)
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
Repurchase Agreements - 11.7%
Repurchase agreement with PaineWebber, Inc., 5.90%,
dated 12/29/95, to be repurchased at $500,328 on
1/2/96, collateralized by U.S. Treasury Nts.,
6.875%, 8/31/99, with a value of $178,667, and
U.S. Treasury Bonds, 7.125%-7.625%, 11/15/22-2/15/23,
with a value of $336,642 (Cost $500,000) $500,000 $ 500,000
---------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $3,540,471) 94.3% 4,045,327
---------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 5.7 243,124
----------- ---------------
Net Assets 100.0% 4,288,451
=========== ===============
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield
on the date of purchase.
2. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities
Act of 1933, as amended. This security has been determined to be liquid
under guidelines established by the Board of Trustees. These securities
amount to $70,938 or 1.65% of the Fund's net assets, at December 31, 1995.
3. Non-income producing security.
See accompanying Notes to Financial Statements.
67
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Assets and Liabilities
December 31, 1995
<TABLE>
<CAPTION>
Oppenheimer
Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer
Money High Income Bond Appreciation Growth
Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost * ) (including repurchase
agreements **) - see accompanying statements:
Unaffiliated companies $62,944,947 $131,522,956 $205,386,016 $335,795,407 $117,817,530
Affiliated companies -- -- -- -- --
Unrealized appreciation on forward foreign currency
exchange contracts - Note 5 -- 805 -- -- --
Cash 27,216 98,614 475,368 59,048 49,380
Receivables:
Dividends and interest 206,178 2,379,583 3,482,730 96,851 106,959
Shares of beneficial interest sold 2,855,248 92,239 1,549,125 324,174 364,845
Investments sold 541,324 1,271,263 -- 595,258
Other 4,817 6,456 7,575 2,162 5,982
--------------------------------------------------------------------------
Total assets 66,038,406 134,641,977 212,172,077 336,277,642 118,939,954
--------------------------------------------------------------------------
LIABILITIES:
Options written, at value (premiums received ***)
- see accompanying statements - Note 4 -- 1,390 -- -- --
Unrealized depreciation on forward foreign currency
exchange contracts - Note 5 -- -- 15,522 -- --
Payables and other liabilities:
Dividends 162,910 -- -- -- --
Investments purchased -- 1,044,711 779,747 7,783,979 970,555
Shares of beneficial interest redeemed 440,204 111,962 98,746 3,038,804 231,518
Other 48,832 33,134 46,292 50,768 27,991
--------------------------------------------------------------------------
Total liabilities 651,946 1,191,197 940,307 10,873,551 1,230,064
--------------------------------------------------------------------------
NET ASSETS $65,386,460 $133,450,780 $211,231,770 $325,404,091 $117,709,890
==========================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $65,404,807 $129,659,991 $201,057,454 $240,344,897 $84,252,418
Undistributed (distributions in excess of) net
investment income -- 1,473,129 1,342,481 1,115,939 1,290,629
Accumulated net realized gain (loss) from investments
and foreign currency transactions (18,347) (3,407,583) 5,361 20,967,908 8,548,920
Net unrealized appreciation on investments and
translation of assets and liabilities denominated
in foreign currencies -- 5,725,243 8,826,474 62,975,347 23,617,923
--------------------------------------------------------------------------
NET ASSETS $65,386,460 $133,450,780 $211,231,770 $325,404,091 $117,709,890
==========================================================================
SHARES OF BENEFICIAL INTEREST
OUTSTANDING 65,404,807 12,551,582 17,842,418 9,512,651 4,997,725
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $1.00 $10.63 $11.84 $34.21 $23.55
*Cost:
Unaffiliated companies $62,944,947 $125,812,139 $196,548,402 $272,820,061 $94,199,607
Affiliated companies -- -- -- -- --
**Repurchase Agreements $3,595,000 $2,780,000 $8,500,000 $35,600,000 $23,470,000
***Premiums Received -- $1,430 -- -- --
</TABLE>
See accompanying Notes to Financial Statements.
68
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Assets and Liabilities (Continued)
December 31, 1995
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Multiple Global Strategic Growth &
Strategies Securities Bond Income
Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost * ) (including repurchase
agreements **) - see accompanying statements:
Unaffiliated companies $378,826,790 $361,259,286 $59,245,209 $4,045,327
Affiliated companies 1,368,000 -- --
Unrealized appreciation on forward foreign currency
exchange contracts - Note 5 2 150,274 -- --
Cash 38,181 136,798 162,525 224,728
Receivables:
Dividends and interest 3,080,691 352,962 1,179,469 5,593
Shares of beneficial interest sold 1,200,686 202,710 200,211 18,236
Investments sold 870,610 4,677,263 578,483 --
Other 12,814 9,300 3,735 2,359
-----------------------------------------------------------
Total assets 384,029,774 368,156,593 61,369,632 4,296,243
-----------------------------------------------------------
LIABILITIES:
Options written, at value (premiums received ***)
- see accompanying statements - Note 4 1,043,325 -- 13,900 --
Unrealized depreciation on forward foreign currency
exchange contracts - Note 5 -- -- 11,657 --
Payables and other liabilities:
Dividends -- -- -- --
Investments purchased 1,574,416 6,654,962 1,156,926 --
Shares of beneficial interest redeemed 91,258 367,884 68,024 --
Other 57,611 154,914 21,512 7,792
-----------------------------------------------------------
Total liabilities 2,766,610 7,177,760 1,272,019 7,792
-----------------------------------------------------------
NET ASSETS $381,263,164 $360,978,833 $60,097,613 $4,288,451
===========================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $329,343,553 $363,343,602 $59,420,799 $3,756,393
Undistributed (distributions in excess of) net
investment income 1,361,279 (1,068) 483,938 (318)
Accumulated net realized gain (loss) from investments
and foreign currency transactions 8,398,861 (26,173,952) (1,648,175) 27,201
Net unrealized appreciation on investments and
translation of assets and liabilities denominated
in foreign currencies 42,159,471 23,810,251 1,841,051 505,175
----------------------------------------------------------
NET ASSETS $381,263,164 $360,978,833 $60,097,613 $4,288,451
===========================================================
SHARES OF BENEFICIAL INTEREST
OUTSTANDING 26,212,235 24,067,821 12,250,929 342,794
NET ASSET VALUE, REDEMPTION PRICE AND
OFFERING PRICE PER SHARE $14.55 $15.00 $4.91 $12.51
*Cost:
Unaffiliated companies $336,724,928 $337,580,583 $57,397,784 $3,540,471
Affiliated companies -- $1,401,000 -- --
**Repurchase Agreements $52,200,000 $17,300,000 $500,000 $500,000
***Premiums Received $1,100,095 -- $14,299 --
</TABLE>
See accompanying Notes to Financial Statements.
69
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Operations
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Oppenheimer
Oppenheimer Oppenheimer Oppenheimer Capital Oppenheimer
Money High Income Bond Appreciation Growth
Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of withholding taxes of *) $4,534,276 $11,710,273 $13,096,739 $2,664,312 $1,001,964
Dividends:
Unaffiliated companies (net of withholding taxes of **) -- 569,924 81,190 330,943 992,690
Affiliated companies (net of withholding taxes of **) -- -- -- -- --
--------------------------------------------------------------------------
Total income 4,534,276 12,280,197 13,177,929 2,995,255 1,994,654
--------------------------------------------------------------------------
EXPENSES:
Management fees - Note 6 338,483 866,154 1,280,422 1,790,785 664,977
Custodian fees and expenses 22,290 33,144 37,714 27,791 --
Shareholder reports 10,988 7,870 8,042 11,912 3,864
Legal and auditing fees 7,865 17,092 12,506 12,215 12,202
Insurance expenses 3,683 4,698 5,140 -- 3,525
Trustees' fees and expenses 538 812 2,637 1,699 1,901
Registration and filing fees 25 5,404 16,773 24,486 8,881
Other 777 1,046 1,193 2,916 1,585
--------------------------------------------------------------------------
Total expenses 384,649 936,220 1,364,427 1,871,804 696,935
--------------------------------------------------------------------------
NET INVESTMENT INCOME 4,149,627 11,343,977 11,813,502 1,123,451 1,297,719
--------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments:
Unaffiliated companies 5,356 838,501 861,074 22,379,477 8,674,291
Affiliated companies -- -- -- -- --
Closing and expiration of options written - Note 4 -- (428,900) (14,352) -- --
Foreign currency transactions -- 213,132 463,409 -- --
Net change in unrealized appreciation or
depreciation on:
Investments -- 9,435,938 13,439,159 47,042,428 16,396,856
Translation of assets and liabilities denominated
in foreign currencies -- (22,937) (120,740) -- --
--------------------------------------------------------------------------
Net realized and unrealized gain 5,356 10,035,734 14,628,550 69,421,905 25,071,147
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,154,983 $21,379,711 $26,442,052 $70,545,356 $26,368,866
==========================================================================
*Interest -- -- $7,577 -- --
**Dividends:
Unaffiliated companies -- -- -- $999 $9,674
Affiliated companies -- -- -- -- --
</TABLE>
See accompanying Notes to Financial Statements.
70
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Operations (Continued)
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Multiple Global Strategic Growth &
Strategies Securities Bond Income
Fund Fund Fund Fund(1)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest (net of withholding taxes of *) $16,147,769 $1,031,404 $3,754,007 $10,996
Dividends:
Unaffiliated companies (net of withholding taxes of **) 3,114,259 4,699,083 79,325 12,525
Affiliated companies (net of withholding taxes of **) 62,163 -- --
------------------------------------------------------------
Total income 19,262,028 5,792,650 3,833,332 23,521
------------------------------------------------------------
EXPENSES:
Management fees - Note 6 2,540,311 2,451,556 281,335 6,710
Custodian fees and expenses 65,688 457,420 15,150 4,260
Shareholder reports 14,490 11,015 3,111 440
Legal and auditing fees 23,186 17,395 7,000 5,627
Insurance expenses 9,872 7,400 2,621 595
Trustees' fees and expenses 7,851 1,631 286 17
Registration and filing fees 6,188 -- 8,457 1,287
Other 928 720 867 12
------------------------------------------------------------
Total expenses 2,668,514 2,947,137 318,827 18,948
------------------------------------------------------------
NET INVESTMENT INCOME 16,593,514 2,845,513 3,514,505 4,573
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments:
Unaffiliated companies 7,599,655 (31,891,633) (826,576) 27,331
Affiliated companies -- 1,000,520 -- --
Closing and expiration of options written 378,568 -- (47,991) --
Foreign currency transactions 297,101 5,123,230 5,391 (93)
Net change in unrealized appreciation or
depreciation on:
Investments 39,596,962 33,819,559 2,876,481 505,175
Translation of assets and liabilities denominated
in foreign currencies 379,793 (2,166,551) 862 --
------------------------------------------------------------
Net realized and unrealized gain 48,252,079 5,885,125 2,008,167 532,413
------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $64,845,593 $8,730,638 $5,522,672 $536,986
============================================================
*Interest $10,875 -- -- --
**Dividends:
Unaffiliated companies $32,241 $381,116 $40
Affiliated companies -- $7,446 -- --
</TABLE>
1. For the period from July 5, 1995 (commencement of operations) to
December 31, 1995.
See accompanying Notes to Financial Statements.
71
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Changes in Net Assets
For the Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer
Money High Income Bond
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $4,149,627 $3,774,464 $11,343,977 $9,253,988 $11,813,502 $8,900,922
Net realized gain (loss) 5,356 (5,168) 622,733 (3,689,385) 1,310,131 (2,370,155)
Net change in unrealized appreciation or depreciation -- -- 9,413,001 (8,629,376) 13,318,419 (8,824,731)
------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
from operations 4,154,983 3,769,296 21,379,711 (3,064,773) 26,442,052 (2,293,964)
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (4,149,626) (3,793,971) (12,039,383) (6,580,907) (11,209,883) (7,101,380)
Distributions from net realized gain -- -- -- (2,106,023) -- (283,274)
Distributions in excess of net realized gain -- -- -- -- -- --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
beneficial interest transactions - Note 2 (24,289,814) 28,473,973 28,412,143 14,438,679 60,932,217 32,899,881
------------------------------------------------------------------------------
NET ASSETS:
Total increase (decrease) (24,284,457) 28,449,298 37,752,471 2,686,976 76,164,386 23,221,263
Beginning of period 89,670,917 61,221,619 95,698,309 93,011,333 135,067,384 111,846,121
------------------------------------------------------------------------------
End of period $65,386,460 $89,670,917 $133,450,780 $95,698,309 $211,231,770 $135,067,384
==============================================================================
</TABLE>
See accompanying Notes to Financial Statements.
72
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Changes in Net Assets(Continued)
For the Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer
Capital Oppenheimer Multiple
Appreciation Growth Strategies
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1995 1994 1995 1994 1995 1994
OPERATIONS:
Net investment income $1,123,451 $769,034 $1,297,719 $824,976 $16,593,514 $13,727,119
Net realized gain (loss) 22,379,477 (1,045,951) 8,674,291 1,441,127 8,275,324 8,803,106
Net change in unrealized appreciation or depreciation 47,042,428 (10,016,034) 16,396,856 (1,915,053) 39,976,755 (28,189,733)
------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
from operations 70,545,356 (10,292,951) 26,368,866 351,050 64,845,593 (5,659,508)
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income (719,183) (218,275) (821,641) (516,871) (16,066,432) (13,056,112)
Distributions from net realized gain (363,458) (17,112,748) (973,385) (127,540) (8,717,288) (1,925,053)
Distributions in excess of net realized gain -- -- -- -- -- --
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
beneficial interest transactions - Note 2 70,167,835 76,512,412 29,852,876 6,875,487 49,134,087 62,417,829
------------------------------------------------------------------------------
NET ASSETS:
Total increase (decrease) 139,630,550 48,888,438 54,426,716 6,582,126 89,195,960 41,777,156
Beginning of period 185,773,541 136,885,103 63,283,174 56,701,048 292,067,204 250,290,048
------------------------------------------------------------------------------
End of period $325,404,091 $185,773,541 $117,709,890 $63,283,174 $381,263,164 $292,067,204
==============================================================================
</TABLE>
See accompanying Notes to Financial Statements.
73
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Statements of Changes in Net Assets(Continued)
For the Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer
Global Strategic Growth &
Securities Bond Income
Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1995 1994 1995 1994 1995(1)
OPERATIONS:
Net investment income $2,845,513 $1,162,074 $3,514,505 $1,286,157 $4,573
Net realized gain (loss) (25,767,883) 385,837 (869,176) (796,115) 27,238
Net change in unrealized appreciation or depreciation 31,653,008 (24,015,375) 2,877,343 (1,120,872) 505,175
--------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
from operations 8,730,638 (22,467,464) 5,522,672 (630,830) 536,986
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net investment income -- (359,955) (3,151,540) (1,161,570) (4,891)
Distributions from net realized gain (8,174,158) (2,441,859) -- -- --
Distributions in excess of net realized gain -- -- -- (16,802) (37)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
beneficial interest transactions - Note 2 62,580,432 226,686,688 37,406,166 12,242,999 3,756,393
--------------------------------------------------------------------------
NET ASSETS:
Total increase (decrease) 63,136,912 201,417,410 39,777,298 10,433,797 4,288,451
Beginning of period 297,841,921 96,424,511 20,320,315 9,886,518 --
--------------------------------------------------------------------------
End of period $360,978,833 $297,841,921 $60,097,613 $20,320,315 $4,288,451
==========================================================================
</TABLE>
1. For the period from July 5, 1995 (commencement of operations) to
December 31, 1995.
See accompanying Notes to Financial Statements.
74
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Oppenheimer
Money
Fund
-------------------------------------------------------------------------------
Year Ended
December 31, 1994 1993 1992 1991
1995
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations - net
investment income and net realized gain
on investments .06 .04 .03 .04 .06
Dividends and distributions to shareholders (.06) (.04) (.03) (.04) (.06)
-------------------------------------------------------------------------------
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
===============================================================================
TOTAL RETURN, AT NET ASSET VALUE (1) 5.62% 4.25% 3.09% 3.93% 6.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in thousands) $65,386 $89,671 $61,221 $58,266 $58,709
Average net assets (in thousands) $75,136 $90,264 $57,654 $61,317 $75,747
Ratios to average net assets:
Net investment income 5.52% 4.18% 3.12% 3.76% 5.97%
Expenses .51% .43% .43% .50% .49%
<CAPTION>
-----------------------------------------------------------------------
1990 1989 1988 1987 1986
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations - net
investment income and net realized gain
on investments .08 .09 .07 .06 .06
Dividends and distributions to shareholders (.08) (.09) (.07) (.06) (.06)
-----------------------------------------------------------------------
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
=======================================================================
TOTAL RETURN, AT NET ASSET VALUE (1) 7.84% 9.56% 6.96% 6.74% 6.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in thousands) $89,143 $68,440 $69,468 $42,538 $28,218
Average net assets (in thousands) $82,966 $67,586 $60,241 $35,138 $12,914
Ratios to average net assets:
Net investment income 7.80% 8.82% 7.31% 6.33% 5.68%
Expenses .51% .53% .55% .59% .75%
</TABLE>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends 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. Total returns are
not annualized for periods of less than one full year. Total returns reflect
changes in net investment income only. Total return information does not
reflect expenses that apply at the separate account level or to related
insurance products. Inclusion of these charges would reduce the total return
figures for all periods shown.
See accompanying Notes to Financial Statements.
75
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
High Income
Fund
-------------------------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993 1992 1991
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $9.79 $11.02 $9.74 $9.40 $7.90
Income (loss) from investment operations:
Net investment income .98 .94 .82 1.19 1.28
Net realized and unrealized gain (loss) on
investments and foreign currency .94 (1.27) 1.65 .43 1.30
transactions
------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.92 (.33) 2.47 1.62 2.58
-------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (1.08) (.66) (1.19) (1.28) (1.08)
Distributions from net realized gain on
investments and foreign currency
transactions -- (.24) -- -- --
-------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (1.08) (.90) (1.19) (1.28) (1.08)
-------------------------------------------------------------------------------
Net asset value, end of period $10.63 $ 9.79 $11.02 $9.74 $9.40
===============================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 20.37% (3.18)% 26.34% 17.92% 33.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $133,451 $ 95,698 $93,011 $40,817 $27,308
Average net assets (in thousands) $115,600 $101,096 $67,000 $36,861 $23,663
Ratios to average net assets:
Net investment income 9.81% 9.15% 10.50% 12.08% 14.26%
Expenses .81% .67% .68% .73% .75%
Portfolio turnover rate(4) 107.1% 110.1% 135.7% 144.2% 108.0%
<CAPTION>
-------------------------------------------------------------------------
1990 1989 1988 1987 1986(1)
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $8.59 $9.30 $9.14 $10.04 $10.00
Income (loss) from investment operations:
Net investment income 1.21 1.09 1.12 1.30 .72
Net realized and unrealized gain (loss) on
investments and foreign currency (.82) (.65) .23 (.51) (.24)
transactions
-------------------------------------------------------------------------
Total income (loss) from investment
operations .39 .44 1.35 .79 .48
-------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (1.08) (1.08) (1.07) (1.55) (.44)
Distributions from net realized gain on
investments and foreign currency
transactions -- (.07) (.12) (.14) --
-------------------------------------------------------------------------
Total dividends and distributions to
shareholders (1.08) (1.15) (1.19) (1.69) (.44)
-------------------------------------------------------------------------
Net asset value, end of period $7.90 $8.59 $9.30 $9.14 $10.04
=========================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 4.65% 4.84% 15.58% 8.07% 4.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $19,172 $23,698 $25,551 $21,768 $14,833
Average net assets (in thousands) $21,493 $26,040 $24,530 $20,637 $ 8,036
Ratios to average net assets:
Net investment income 14.32% 11.52% 11.94% 13.13% 11.18%(3)
Expenses .75% .75% .75% .75% .75%(3)
Portfolio turnover rate(4) 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. 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. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
3. Annualized
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
See accompanying Notes to Financial Statements.
76
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Bond
Fund
-----------------------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993 1992 1991
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $10.78 $11.65 $10.99 $11.15 $10.33
Income (loss) from investment operations:
Net investment income .72 .76 .65 .87 .95
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 1.07 (.98) .76 (.17) .80
-----------------------------------------------------------------------------
Total income (loss) from investment
operations 1.79 (.22) 1.41 .70 1.75
-----------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.73) (.62) (.75) (.86) (.93)
Distributions from net realized gain on
investments and foreign currency
transactions -- (.03) -- -- --
-----------------------------------------------------------------------------
Total dividends and distributions to
shareholders (.73) (.65) (.75) (.86) (.93)
-----------------------------------------------------------------------------
Net asset value, end of period $11.84 $10.78 $11.65 $10.99 $11.15
=============================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 17.00% (1.94)% 13.04% 6.50% 17.63%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $211,232 $135,067 $111,846 $63,354 $32,762
Average net assets (in thousands) $170,929 $121,884 $ 87,215 $45,687 $22,169
Ratios to average net assets:
Net investment income 6.91% 7.30% 7.20% 7.81% 8.73%
Expenses .80% .57% .46% .56% .64%
Portfolio turnover rate(2) 79.4% 35.1% 36.3% 41.3% 7.6%
<CAPTION>
----------------------------------------------------------------------------
1990 1989 1988 1987 1986
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $10.49 $10.15 $10.19 $11.15 $11.27
Income (loss) from investment operations:
Net investment income .97 .98 .94 .97 .97
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.18) .32 (.05) (.71) .09
----------------------------------------------------------------------------
Total income (loss) from investment
operations .79 1.30 .89 .26 1.06
----------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.95) (.96) (.93) (1.17) (1.03)
Distributions from net realized gain on
investments and foreign currency
transactions -- -- -- (.05) (.15)
----------------------------------------------------------------------------
Total dividends and distributions to
shareholders (.95) (.96) (.93) (1.22) (1.18)
----------------------------------------------------------------------------
Net asset value, end of period $10.33 $10.49 $10.15 $10.19 $11.15
============================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 7.92% 13.32% 8.97% 2.53% 10.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $16,576 $13,422 $ 9,989 $10,415 $7,377
Average net assets (in thousands) $15,088 $11,167 $11,028 $ 8,748 $4,647
Ratios to average net assets:
Net investment income 9.30% 9.34% 9.08% 9.17% 8.71%
Expenses .61% .64% .70% .75% .75%
Portfolio turnover rate(2) 7.4% 5.4% 36.3% 5.9% 27.7%
</TABLE>
1. 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. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
2. 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.
77
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Capital Appreciation
Fund
------------------------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993 1992 1991
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $25.95 $31.64 $26.04 $23.24 $15.24
Income (loss) from investment operations:
Net investment income .11 .10 .05 .06 .08
Net realized and unrealized gain (loss) on
investments 8.29 (2.22) 6.71 3.43 8.18
------------------------------------------------------------------------------
Total income (loss) from investment operations 8.40 (2.12) 6.76 3.49 8.26
------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.09) (.04) (.06) (.14) (.26)
Distributions from net realized gain on
investments (.05) (3.53) (1.10) (.55) --
------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (.14) (3.57) (1.16) (.69) (.26)
------------------------------------------------------------------------------
Net asset value, end of period $34.21 $25.95 $31.64 $26.04 $23.24
==============================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 32.52% (7.59)% 27.32% 15.42% 54.72%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $325,404 $185,774 $136,885 $83,335 $49,371
Average net assets (in thousands) $240,730 $153,832 $98,228 $56,371 $34,887
Ratios to average net assets:
Net investment income .47% .50% .23% .30% .81%
Expenses .78% .57% .47% .54% .63%
Portfolio turnover rate(4) 125.5% 96.5% 122.8% 78.9% 122.3%
Average brokerage commission rate(5) $0.18 -- -- -- --
<CAPTION>
-------------------------------------------------------------------------
1990 1989 1988 1987 1986(1)
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $20.40 $16.31 $14.39 $13.12 $16.21
Income (loss) from investment operations:
Net investment income .32 .50 .33 .21 .12
Net realized and unrealized gain (loss) on
investments (3.54) 3.93 1.60 1.67 (1.24)
-------------------------------------------------------------------------
Total income (loss) from investment operations (3.22) 4.43 1.93 1.88 (1.12)
-------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.53) (.34) -- (.34) (.21)
Distributions from net realized gain on
investments (1.41) -- (.01) (.27) (1.76)
-------------------------------------------------------------------------
Total dividends and distributions to
shareholders (1.94) (.34) (.01) (.61) (1.97)
-------------------------------------------------------------------------
Net asset value, end of period $15.24 $20.40 $16.31 $14.39 $13.12
=========================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (16.82)% 27.57% 13.41% 14.34% (1.65)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $23,295 $27,523 $13,667 $9,692 $4,549
Average net assets (in thousands) $24,774 $21,307 $13,239 $8,598 $3,099
Ratios to average net assets:
Net investment income 1.93% 3.27% 2.13% 1.68% 2.36%(3)
Expenses .71% .68% .73% .75% 1.01%(3)
Portfolio turnover rate(4) 222.0% 130.5% 128.7% 138.7% 100.1%
Average brokerage commission rate(5) -- -- -- -- --
</TABLE>
1. For the six months ended December 31, 1986. Operating results prior to
August 15, 1986 were achieved by Centennial Capital Appreciation Fund, a
separate investment company acquired by OCAP on August 14, 1986.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products.
Inclusion of these charges would reduce the total return figures for all
periods shown.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
5. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
78
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Growth
Fund
-----------------------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993 1992 1991
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $17.68 $17.70 $16.96 $15.17 $12.54
Income (loss) from investment operations:
Net investment income .25 .22 .46 .16 .30
Net realized and unrealized gain (loss) on
investments 6.10 (.05) .74 1.99 2.82
-----------------------------------------------------------------------------
Total income (loss) from investment
operations 6.35 .17 1.20 2.15 3.12
-----------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.22) (.15) (.14) (.36) (.49)
Distributions from net realized gain on
investments and foreign currency
transactions (.26) (.04) (.32) -- --
-----------------------------------------------------------------------------
Total dividends and distributions to
shareholders (.48) (.19) (.46) (.36) (.49)
-----------------------------------------------------------------------------
Net asset value, end of period $23.55 $17.68 $17.70 $16.96 $15.17
=============================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 36.65% .97% 7.25% 14.53% 25.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $117,710 $63,283 $56,701 $36,494 $22,032
Average net assets (in thousands) $88,803 $59,953 $46,389 $25,750 $18,810
Ratios to average net assets:
Net investment income 1.46% 1.38% 1.13% 1.36% 2.82%
Expenses .79% .58% .50% .61% .70%
Portfolio turnover rate(2) 58.2% 53.8% 12.6% 48.7% 133.9%
Average brokerage commission rate(3) $0.07 -- -- -- --
<CAPTION>
---------------------------------------------------------------------------
1990 1989 1988 1987 1986
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $16.38 $13.64 $11.21 $12.53 $10.95
Income (loss) from investment operations:
Net investment income .56 .66 .29 .20 .13
Net realized and unrealized gain (loss) on
investments (1.79) 2.50 2.19 .24 1.76
---------------------------------------------------------------------------
Total income (loss) from investment
operations (1.23) 3.16 2.48 .44 1.89
---------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.62) (.35) -- (.34) (.15)
Distributions from net realized gain on
investments and foreign currency
transactions (1.99) (.07) (.05) (1.42) (.16)
---------------------------------------------------------------------------
Total dividends and distributions to
shareholders (2.61) (.42) (.05) (1.76) (.31)
---------------------------------------------------------------------------
Net asset value, end of period $12.54 $16.38 $13.64 $11.21 $12.53
===========================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) (8.21)% 23.59% 22.09% 3.32% 17.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $15,895 $19,301 $17,746 $14,692 $8,287
Average net assets (in thousands) $17,235 $18,596 $15,585 $15,121 $3,744
Ratios to average net assets:
Net investment income 4.09% 3.72% 2.39% 1.56% 2.62%
Expenses .71% .70% .70% .75% .75%
Portfolio turnover rate(2) 267.9% 148.0% 132.5% 191.0% 100.9%
Average brokerage commission rate(3) -- -- -- -- --
</TABLE>
1. 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. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products.
Inclusion of these charges would reduce the total return figures for all
periods shown.
2. 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.
3. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
79
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Multiple Strategies
Fund
------------------------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993 1992 1991
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.91 $13.88 $12.47 $11.96 $10.90
Income (loss) from investment operations:
Net investment income .66 .63 .55 .55 .69
Net realized and unrealized gain (loss) on
investments, options written and foreign
currency transactions 2.00 (.90) 1.41 .50 1.15
------------------------------------------------------------------------------
Total income (loss) from investment operations 2.66 (.27) 1.96 1.05 1.84
------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.65) (.60) (.55) (.54) (.78)
Distributions from net realized gain on
investments, options written and foreign
currency transactions (.37) (.10) -- -- --
------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (1.02) (.70) (.55) (.54) (.78)
------------------------------------------------------------------------------
Net asset value, end of period $14.55 $12.91 $13.88 $12.47 $11.96
==============================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 21.36% (1.95)% 15.95% 8.99% 17.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $381,263 $292,067 $250,290 $159,464 $124,634
Average net assets (in thousands) $344,745 $279,949 $199,954 $139,011 $117,000
Ratios to average net assets:
Net investment income 4.81% 4.90% 4.44% 4.63% 5.95%
Expenses .77% .56% .48% .55% .54%
Portfolio turnover rate(4) 39.0% 31.4% 32.4% 57.8% 80.3%
Average brokerage commission rate(5) $0.04 -- -- -- --
<CAPTION>
-----------------------------------------------------------------
1990 1989 1988 1987(1)
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.30 $11.58 $10.04 $10.00
Income (loss) from investment operations:
Net investment income .73 .73 .66 .44
Net realized and unrealized gain (loss) on
investments, options written and foreign
currency transactions (.97) 1.04 1.53 .07
-----------------------------------------------------------------
Total income (loss) from investment operations (.24) 1.77 2.19 .51
-----------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.70) (.68) (.65) (.43)
Distributions from net realized gain on
investments, options written and foreign
currency transactions (.46) (.37) -- (.04)
-----------------------------------------------------------------
Total dividends and distributions to
shareholders (1.16) (1.05) (.65) (.47)
-----------------------------------------------------------------
Net asset value, end of period $10.90 $12.30 $11.58 $10.04
=================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (1.91)% 15.76% 22.15% 3.97%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $118,888 $121,286 $78,386 $53,291
Average net assets (in thousands) $123,231 $101,057 $64,298 $34,256
Ratios to average net assets:
Net investment income 6.53% 6.36% 6.18% 6.12%(3)
Expenses .55% .57% .58 .65%(3)
Portfolio turnover rate(4) 99.2% 66.9% 110.0% 46.9%
Average brokerage commission rate(5) -- -- -- --
</TABLE>
1. For the period from February 9, 1987 (commencement of Operations) to
December 31, 1987.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
5. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
80
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Global Securities
Fund
----------------------------------------------------------------
Year Ended
December 31,
1995 1994 1993
-----------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.09 $16.30 $9.57
Income (loss) from investment operations:
Net investment income .12 .04 (.02)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions .19 (.96) 6.75
-----------------------------------------------------------------
Total income (loss) from investment operations .31 (.92) 6.73
-----------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.04) --
Distributions from net realized gain on investments and
foreign currency transactions (.40) (.25) --
-----------------------------------------------------------------
Total dividends and distributions to shareholders (.40) (.29) --
-----------------------------------------------------------------
Net asset value, end of period $15.00 $15.09 $16.30
=================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 2.24% (5.72)% 70.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $360,979 $297,842 $96,425
Average net assets (in thousands) $332,336 $214,545 $31,696
Ratios to average net assets:
Net investment income .86% .54% .72%
Expenses .89% .91% .92%
Portfolio turnover rate(4) 131.3% 70.4% 65.1%
Average brokerage commission rate(5) $0.01 -- --
<CAPTION>
-----------------------------------------------------------------
1992 1991 1990(1)
-----------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $10.38 $10.04 $10.00
Income (loss) from investment operations:
Net investment income .07 .04 --
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (.80) .30 .04
---------------------------------------------------------------
Total income (loss) from investment operations (.73) .34 .04
---------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.04) -- --
Distributions from net realized gain on investments and
foreign currency transactions (.04) -- --
---------------------------------------------------------------
Total dividends and distributions to shareholders (.08) -- --
---------------------------------------------------------------
Net asset value, end of period $9.57 $10.38 $10.04
===============================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (7.11)% 3.39% .40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $13,537 $7,339 $ 432
Average net assets (in thousands) $11,181 $3,990 $ 263
Ratios to average net assets:
Net investment income 1.04% .75% .08%(3)
Expenses 1.06% 1.32% 6.84%(3)
Portfolio turnover rate(4) 34.1% 29.5% 0.0%
Average brokerage commission rate(5) -- -- --
</TABLE>
1. For the period from November 12, 1990 (commencement of operations) to
December 31, 1990.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
5. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
81
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Strategic Bond
Fund
--------------------------------------------------------
Year Ended
December 31,
1995 1994 1993(1)
--------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $4.60 $5.12 $5.00
Income (loss) from investment operations:
Net investment income .38 .35 .10
Net realized and unrealized gain (loss) on investments,
options written and foreign currency transactions .30 (.54) .11
--------------------------------------------------------
Total income (loss) from investment operations .68 (.19) .21
--------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.37) (.32) (.09)
Distributions from net realized gain on investments -- -- --
Distributions in excess of net realized gain on investments,
options written and foreign currency transactions -- (.01) --
--------------------------------------------------------
Total dividends and distributions to shareholders (.37) (.33) (.09)
--------------------------------------------------------
Net asset value, end of period $4.91 $4.60 $5.12
========================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 15.33% (3.78)% 4.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $60,098 $20,320 $9,887
Average net assets (in thousands) $37,698 $15,389 $4,259
Ratios to average net assets:
Net investment income 9.32% 8.36% 5.67%(3)
Expenses .85% .87% .96%(3)
Portfolio turnover rate(4) 87.0% 136.6% 10.9%
</TABLE>
1. For the period from May 3, 1993 (commencement of operations) to
December 31, 1993.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products. Inclusion of these
charges would reduce the total return figures for all periods shown.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
See accompanying Notes to Financial Statements.
82
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Oppenheimer
Growth & Income
Fund
---------------
Year Ended
December 31,
1995(1)
---------
<S> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $10.00
Income (loss) from investment operations:
Net investment income .01
Net realized and unrealized gain (loss) on investments,
options written and foreign currency transactions 2.52
---------
Total income (loss) from investment operations 2.53
---------
Dividends and distributions to shareholders:
Dividends from net investment income (.02)
Distributions from net realized gain on investments --
Distributions in excess of net realized gain on investments,
options written and foreign currency transactions --
---------
Total dividends and distributions to shareholders (.02)
---------
Net asset value, end of period $12.51
=========
TOTAL RETURN, AT NET ASSET VALUE(2) 25.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,288
Average net assets (in thousands) $1,809
Ratios to average net assets:
Net investment income 0.50%(3)
Expenses 2.07%(3)
Portfolio turnover rate(4) 23.7%
Average brokerage commission rate(5) $0.34
</TABLE>
1. For the period from July 5, 1995 (commencement of operations) to
December 31, 1995
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal
period. Total returns are not annualized for periods of less than one full
year. Total return information does not reflect expenses that apply at the
separate account level or to related insurance products.
Inclusion of these charges would reduce the total return figures for all
periods shown.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation.
5. Total brokerage commissions paid on purchases and sales of portfolio
securities for the period divided by the total number of related shares
purchased and sold.
See accompanying Notes to Financial Statements.
83
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements
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), Oppenheimer Strategic Bond Fund
(OSBF) and Oppenheimer Growth & Income Fund (OGIF) (collectively, the Funds)
are separate series of Oppenheimer Variable Account Funds (the Trust), a
diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Trust's investment advisor is
OppenheimerFunds, Inc. (the Manager). The following is a summary of
significant accounting policies consistently followed by the Funds.
The Funds' objectives are as follows:
Oppenheimer Money Fund seeks the maximum current income from investments in
"money market" securities consistent with low capital risk and the
maintenance of liquidity.
Oppenheimer High Income Fund seeks a high level of current income from
investments in high yield fixed-income securities.
Oppenheimer Bond Fund primarily seeks a high level of current income from
investments in high yield fixed-income securities rated "Baa" or better by
Moody's or "BBB" or better by Standard & Poor's. Secondarily, this Fund seeks
capital growth when consistent with its primary objective.
Oppenheimer Capital Appreciation Fund seeks to achieve capital appreciation
by investing in "growth-type" companies.
Oppenheimer Growth Fund seeks to achieve capital appreciation by investing in
securities of well-known established companies.
Oppenheimer Multiple Strategies Fund seeks a total investment return (which
includes current income and capital appreciation in the value of its shares)
from investments in common stocks and other equity securities, bonds and
other debt securities, and "money market" securities.
Oppenheimer Global Securities Fund seeks long-term capital appreciation by
investing a substantial portion of assets in securities of foreign issuers,
"growth-type" companies, cyclical industries and special institutions which
are considered to have appreciation possibilities.
Oppenheimer Strategic Bond Fund seeks a high level of current income
principally derived from interest on debt securities and seeks to enhance
such income by writing covered call options on: (i) debt securities, (ii)
U.S. Government securities, and (iii) lower-rated high yield domestic debt
securities.
Oppenheimer Growth & Income Fund seeks a high total return (which includes
growth in the value of its shares as well as current income) from equity and
debt securities. From time to time this Fund may focus on small to medium
capitalization common stocks, bonds and convertible securities.
84
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
1. Significant Accounting Policies (Continued)
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, OSBF and OGIF are valued at the close of the New York Stock
Exchange on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the
day or, in the absence of sales, at values based on the closing bid or asked
price or the last sale price on the prior trading day. Long-term and
short-term "non-money market" debt securities are valued by a portfolio
pricing service approved by the Board of Trustees. Such securities which
cannot be valued by the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for
amortization to maturity of any premium or discount. Options are valued based
upon the last sale price on the principal exchange on which the option is
traded or, in the absence of any transactions that day, the value is based
upon the last sale 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 exchange contracts are valued based
on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank or
dealer.
Securities Purchased on a When-Issued Basis.
Delivery and payment for securities that have been purchased by OSBF on a
forward commitment or when-issued basis can take place a month or more after
the transaction date. During the period, such securities do not earn
interest, are subject to market fluctuation and may increase or decrease in
value prior to their delivery. OSBF maintains, in a segregated account with
its custodian, assets with a market value equal to the amount of its purchase
commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of OSBF's net asset value to the
extent the Fund makes such purchases while remaining substantially fully
invested.
In connection with its ability to purchase securities on a when-issued or
forward commitment basis, OSBF may enter into mortgage "dollar-rolls" in
which the Fund sells securities for delivery in the current month and
simultaneously contracts with the same counterparty to repurchase similar
(same type, coupon and maturity) but not identical securities on a specified
future date. The Fund records each dollar-roll as a sale and a new purchase
transaction.
Security Credit Risk.
OHIF, OMSF and OSBF invest 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 Funds may
acquire securities in default, and are not obligated to dispose of securities
whose issuers subsequently default. At December 31, 1995, securities with an
aggregate market value of $491,444 for OHIF and $67,873 for OSBF,
representing 0.37% and 0.11% respectively, of the Funds' net 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, OMSF, OGSF, OSBF and OGIF 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.
85
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
1. Significant Accounting Policies (Continued)
For OHIF, OBF, OMSF, OGSF, OSBF and OGIF, the effect of changes in foreign
currency exchange rates on investments is separately identified from the
fluctuations arising from changes in market values of securities held and
reported with all other foreign currency gains and losses in the Funds'
Statements of Operations.
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. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency proceeding, realization of
the value of the collateral by the Funds may be delayed or limited.
Federal 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 or excise tax provision is required. At December 31, 1995, the
following Funds had available for federal income tax purposes unused capital
loss carryovers expiring in 2002 and 2003:
OHIF -- $ 3,033,760
OGSF -- $17,569,501
OSBF -- $ 1,609,951
Distributions to Shareholders.
Dividends and distributions to shareholders of OHIF, OBF, OCAP, OGF, OMSF,
OGSF, OSBF and OGIF are recorded on the ex-dividend date. OMF intends to
declare dividends from net investment income each day the New York Stock
Exchange is open for business and pay such dividends monthly. To effect its
policy of maintaining a net asset value of $1.00 per share, OMF may withhold
dividends or make distributions of net realized gains.
Classification of Distributions to Shareholders.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes primarily because of premium
amortization, paydown gains and losses and the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes. The
character of the distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization
for federal income tax purposes. Also, due to timing of dividend
distributions, the fiscal year in which amounts are distributed may differ
from the year that the income or realized gain (loss) was recorded by the
Funds. Changes in classification made during the fiscal year ended December
31, 1995 are shown below:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------
Adjustments for the Fiscal Year Ended December 31, 1995
-----------------------------------------------------------------------------------
Undistributed Net
Investment Income Undistributed Net Realized Paid-in
(Loss) Gain (Loss) on Investments Capital
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer High Income Fund 186,751 (186,751) --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Bond Fund (1,093,371) 1,093,371 --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Growth Fund -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Multiple Strategies Fund (204,481) 204,481 --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund (2,845,512) 6,264,762 (3,419,250)
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund 9,220 (9,220) --
- --------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Growth & Income Fund 37 (37) --
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
86
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
1. Significant Accounting Policies (Continued)
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, OSBF and OGIF 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.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities of the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
87
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
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
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 202,748,102 $202,748,102 175,917,558 $175,917,558
Dividends and
distributions
reinvested 4,222,747 4,222,747 3,640,684 3,640,684
Redeemed (231,260,663) (231,260,663) (151,084,269) (151,084,269)
-------------------------------------------------------------
Net increase
(decrease) (24,289,814) $(24,289,814) 28,473,973 $ 28,473,973
=============================================================
Oppenheimer High Income Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 5,873,231 $60,932,670 9,936,582 $ 81,477,904
Dividends and
distributions
reinvested 1,162,957 12,040,152 841,101 8,686,931
Redeemed (4,263,757) (44,560,679) (9,441,490) (75,726,156)
-------------------------------------------------------------
Net increase
(decrease) 2,772,431 $28,412,143 1,336,193 $ 14,438,679
=============================================================
Oppenheimer Bond Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 7,311,733 $83,544,442 5,002,623 $56,466,171
Dividends and
distributions
reinvested 976,291 11,209,883 666,678 7,384,654
Redeemed (2,972,687) (33,822,108) (2,744,016) (30,950,944)
-------------------------------------------------------------
Net increase 5,315,337 $60,932,217 2,925,285 $32,899,881
=============================================================
Oppenheimer Capital Appreciation Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 8,882,212 $260,650,476 7,912,557 $173,453,586
Dividends and
distributions
reinvested 40,594 1,082,642 614,575 17,331,023
Redeemed (6,567,729) (191,565,283) (5,695,411) (114,272,197)
-------------------------------------------------------------
Net increase 2,355,077 $70,167,835 2,831,721 $ 76,512,412
=============================================================
</TABLE>
88
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
2. Shares of Beneficial Interest (Continued)
<TABLE>
<CAPTION>
Oppenheimer Growth Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 4,302,304 $89,007,340 2,577,268 $45,230,951
Dividends and
distributions
reinvested 95,991 1,795,026 36,305 644,411
Redeemed (2,980,080) (60,949,490) (2,236,767) (38,999,875)
----------------------------------------------------------
Net increase 1,418,215 $29,852,876 376,806 $ 6,875,487
=============================================================
Oppenheimer Multiple Strategies Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 6,445,242 $88,771,497 9,807,084 $84,443,396
Dividends and
distributions
reinvested 1,818,313 24,783,721 1,140,244 14,981,165
Redeemed (4,671,097) (64,421,131) (6,353,523) (37,006,732)
-------------------------------------------------------------
Net increase 3,592,458 $49,134,087 4,593,805 $62,417,829
=============================================================
Oppenheimer Global Securities Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 11,235,722 $166,766,446 22,151,454 $336,310,887
Dividends and
distributions
reinvested 585,961 8,174,158 178,687 2,801,813
Redeemed (7,497,205) (112,360,172) (8,503,911) (112,426,012)
-------------------------------------------------------------
Net increase 4,324,478 $62,580,432 13,826,230 $226,686,688
=============================================================
Oppenheimer Strategic Bond Fund
-------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
-------------------------------------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------
Sold 9,417,090 $44,897,472 3,749,500 $18,415,292
Dividends and
distributions
reinvested 661,301 3,151,540 247,485 1,178,372
Redeemed (2,245,623) (10,642,846) (1,508,782) (7,350,665)
-------------------------------------------------------------
Net increase 7,832,768 $37,406,166 2,488,203 $12,242,999
=============================================================
</TABLE>
89
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
2. Shares of Beneficial Interest (Continued)
<TABLE>
<CAPTION>
Oppenheimer Growth &
Income Fund
-------------------------------------------
Year Ended
December 31, 1995(1)
-------------------------------------------
Shares Amount
-------------------------------------------
<S> <C> <C>
Sold 358,253 $3,933,459
Dividends and
distributions
reinvested 404 4,928
Redeemed (15,863) (181,994)
-------------------------------------------
Net increase 342,794 $3,756,393
============================================
</TABLE>
1. For the period from July 5, 1995 (commencement of operations) to
December 31, 1995.
90
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
3. Unrealized Gains and Losses on Investments and Options Written
At December 31, 1995, net unrealized appreciation or depreciation on
investments and options written consisted of the following:
<TABLE>
<CAPTION>
Oppenheimer Oppenheimer Oppenheimer Oppenheimer Oppenheimer
Oppenheimer Oppenheimer Capital Oppenheimer Multiple Global Strategic Growth &
High Income Bond Appreciation Growth Strategies Securities Bond Income
Fund Fund Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross appreciation $7,814,322 $9,892,102 $70,829,161 $25,616,239 $53,305,284 $37,997,341 $2,340,864 $599,103
Gross depreciation (2,103,465) (1,054,488) (7,853,814) (1,998,316) (11,146,651) (14,351,638) (493,040) (94,247)
-------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation $5,710,857 $8,837,614 $62,975,347 $23,617,923 $42,158,633 $23,645,703 $1,847,824 $504,856
=============================================================================================================
Purchases and sales of investment securities (excluding short-term securities) for the year ended December 31, 1995
were as follows:
Purchases $145,095,379 $196,515,342 $318,974,082 $78,667,711 $123,862,840 $491,709,775 $67,228,738 $3,421,021
=============================================================================================================
Sales $112,222,617 $120,210,417 $255,116,481 $41,669,055 $117,669,946 $416,155,747 $26,588,452 $400,564
=============================================================================================================
</TABLE>
91
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
4. Option Activity
The Funds (except OMF, OCAP and OGF) may buy and sell put and call options, or
write covered put and call options on portfolio securities in order to produce
incremental earnings or protect against changes in the value of portfolio
securities.
The Funds generally purchase put options or write covered call options to hedge
against adverse movements in the value of portfolio holdings. When an option is
written, the Funds receive a premium and become obligated to sell or purchase
the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Funds will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statements of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Funds give up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Funds may incur a loss
if the market price of the security decreases and the option is exercised. The
risk in buying an option is that the Funds pay a premium whether or not the
option is exercised. The Funds also have the additional risk of not being able
to enter into a closing transaction if a liquid secondary market does not exist.
The Funds may also write over-the-counter options where the completion of the
obligation is dependent upon the credit standing of the counterparty.
OHIF option activity for the year ended December 31, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
---------------------------
Number of Amount of
Options Premiums
---------------------------
<S> <C> <C>
Options outstanding at December 31, 1994 -- $ --
Options written 28,600 5,389
Options canceled in closing transactions (28,500) (3,959)
---------------------------
Options outstanding at December 31, 1995 100 $ 1,430
===========================
</TABLE>
OBF option activity for the year ended December 31, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
---------------------------
Number of Amount of
Options Premiums
---------------------------
<S> <C> <C>
Options outstanding at December 31, 1994 -- $ --
Options written 82,000 17,019
Options canceled in closing transactions (82,000 (17,019)
---------------------------
Options outstanding at December 31, 1995 -- $ --
===========================
</TABLE>
92
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
4. Option Activity (Continued)
OMSF option activity for the year ended December 31, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
---------------------------
Number of Amount of
Options Premiums
---------------------------
<S> <C> <C>
Options outstanding at December 31, 1994 2,255 $ 607,682
Options written 8,275 2,150,503
Options canceled in closing transactions (1,894) (448,093)
Options expired prior to exercise (2,353) (451,021)
Options exercised (2,680) (758,976)
---------------------------
Options outstanding at December 31, 1995 3,603 $1,100,095
===========================
</TABLE>
OSBF option activity for the year ended December 31, 1995 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
---------------------------
Number of Amount of
Options Premiums
---------------------------
<S> <C> <C>
Options outstanding at December 31, 1994 307 $ 1,600
Options written 3,314 35,871
Options canceled in closing transactions (2,141) (20,467)
Options expired prior to exercise (190) (763)
Options exercised (290) (1,942)
---------------------------
Options outstanding at December 31, 1995 1,000 $ 14,299
===========================
</TABLE>
5. Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Funds (except OMF) use forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Funds generally enter into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Funds may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward currency
contract rates in the London foreign exchange markets on a daily basis as
provided by a reliable bank or dealer. The Funds will realize a gain or loss
upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on outstanding
forward contracts are noted in the Statements of Investments where applicable.
Unrealized appreciation or depreciation on forward contracts is reported in the
Statements of Assets and Liabilities. Realized gains and losses are reported
with all other foreign currency gains and losses in the Funds' Statements of
Operations.
93
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
5. Forward Foreign Currency Exchange Contracts (Continued)
Risks include the potential inability of the counterparty to meet the terms of
the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
At December 31, 1995, outstanding forward contracts to purchase and sell foreign
currencies were as follows:
Oppenheimer High Income Fund
<TABLE>
<CAPTION>
Contract Unrealized
Amount Valuation as of Appreciation
Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen (JPY) 1/4/96 55,250 JPY $535,752 $ (9,657)
New Zealand Dollar (NZD) 12/18/96 892 NZD 567,334 2,150
--------
$ (7,507)
--------
Contracts to Sell
- ------------------------------------------------------------------------------------------------------
Deutsche Mark (DEM) 1/4/96-2/21/96 3,670 DEM $2,562,764 $ (3,622)
Japanese Yen (JPY) 12/18/96 54,625 JPY 553,249 11,934
--------
8,312
--------
Net Unrealized Appreciation $ 805
========
</TABLE>
Oppenheimer Bond Fund
<TABLE>
<Captaion>
Contract Unrealized
Amount Valuation as of Appreciation
Contracts to Sell Exchange Date (in 000s) December 31, 1995 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australian Dollar (AUD) 1/4/96 59 AUD $43,775 $ 190
Deutsche Mark (DEM) 1/4/96-2/21/96 11 DEM 7,661,169 (15,712)
--------
$(15,522)
========
</TABLE>
Oppenheimer Multiple Strategies Fund
<TABLE>
<CAPTION>
Contract Unrealized
Amount Valuation as of Appreciation
Contracts to Sell Exchange Date (in 000s) December 31, 1995 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hong Kong Dollar (HKD) 1/2/96 707 HKD $91,439 $ 2
========
</TABLE>
94
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
5. Forward Foreign Currency Exchange Contracts (Continued)
Oppenheimer Global Securities Fund
<TABLE>
<CAPTION>
Contract Unrealized
Amount Valuation as of Appreciation
Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hong Kong Dollar (HKD) 1/2/96-1/3/96 8,904 HKD $1,151,601 $ (218)
Italian Lira (ITL) 1/31/96 3,888,129 ITL 2,438,922 (9,912)
Japanese Yen (JPY) 1/4/96-1/5/96 75,155 JPY 728,792 (2,948)
Singapore Dollar (SGD) 1/2/96-1/5/96 830 SGD 586,556 (853)
Greek Drachma (GRD) 1/2/96-1/4/96 49,496 GRD 209,220 432
--------
$(13,499)
--------
Contracts to Sell
- ------------------------------------------------------------------------------------------------------
Austrian Schilling (ATS) 1/2/96 17,770 ATS $1,764,559 $(12,653)
Swiss Franc (CHF) 1/4/96 279 CHF 242,200 (1,139)
Deutsche Mark (DEM) 1/4/96 1,598 DEM 1,116,140 (5,709)
Japanese Yen (JPY) 3/29/96 3,043,800 JPY 29,807,684 192,316
Norwegian Krone (NOK) 1/2/96-1/4/96 8,521 NOK 1,348,728 (9,042)
---------
163,773
---------
Net Unrealized Appreciation $150,274
=========
</TABLE>
Oppenheimer Strategic Bond Fund
<TABLE>
<CAPTION>
Contract Unrealized
Amount Valuation as of Appreciation
Contracts to Purchase Exchange Date (in 000s) December 31, 1995 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen (JPY) 1/4/96 33,988 JPY $329,572 $(5,982)
New Zealand Dollar (NZD) 12/18/96 541 NZD 344,380 1,096
-------
$(4,886)
-------
Contracts to Sell
- ------------------------------------------------------------------------------------------------------
Australian Dollar (AUD) 1/4/96 22 AUD $16,134 $ (25)
Deutsche Mark (DEM) 2/13/96 1,605 DEM 1,119,976 (5,393)
Japanese Yen (JPY) 12/18/96 33,175 JPY 336,001 7,283
Swiss Franc (CHF) 2/13/96 860 CHF 748,739 (8,636)
--------
(6,771)
--------
Net Unrealized Depreciation $(11,657)
========
</TABLE>
95
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
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. For OBF, OCAP, OGF, OMSF, OHIF, OGSF, OSBF
and OGIF, the annual fees are .75% of the first $200 million of net assets, .72%
of the next $200 million, .69% of the next $200 million, .66% of the next $200
million and .60% of net assets in excess of $800 million. In addition,
management fees for OHIF, OBF and OSBF are .50% of net assets in excess of $1
billion. Management fees for OMF are .45% of the first $500 million, .425% of
the next $500 million, .40% of the next $500 million and .375% of net assets in
excess of $1.5 billion. For OSBF, the Manager has agreed to limit the management
fee charged so that the ordinary operating expenses of the Fund will not exceed
1.0% of its average net assets in any fiscal year.
7. Illiquid and Restricted Securities
At December 31, 1995, investments in securities included issues that are
illiquid or restricted. The securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. The Funds intend to invest no more
than 10% of net assets (determined at the time of purchase) in illiquid and
restricted securities. Information concerning these securities is as follows:
Oppenheimer High Income Fund
<TABLE>
<CAPTION>
Acquisition Cost Valuation as of
Security Date Per Unit December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ames Department Stores, Inc., Excess Cash Flow Payment 12/30/92 $ 0.00 $ .01
Certificates, Series AG-7A
Ames Department Stores, Inc., Litigation Trust 12/30/92 0.00 .01
Colombia (Republic of) 1989-1990 Integrated Loan Facility 12/5/95 92.00 93.00
Bonds, 6.875%, 7/1/01
ECM Fund, L.P.I 4/14/92 100.00 1,000.00
ECM Fund, L.P.I., 14% Sub. Nts., 6/10/02 4/14/92 100.00 110.00
Farley, Inc., Zero Coupon Sub. Debs., 14.151%, 12/30/12 1/1/93-3/6/95 7.44 9.88
Gillett Holdings, Inc., C1.2 12/1/92 10.50 20.00
Goldman, Sachs & Co., Argentina Local Market Securities 8/24/94 100.00 97.75
Trust, 11.30%, 4/1/00
Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 9/14/95 100.00 100.75
Triangle Wire & Cable, Inc. 5/2/94 9.50 1.00
Trinidad & Tobago Loan Participation Agreement, Tranche B, 12/13/95 .84 .82
1.563%, 9/30/00
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate value of illiquid and restricted securities subject to the 10%
limitation at December 31, 1995 was $3,708,444 or 2.78% of the Fund's net
assets. Pursuant to guidelines adopted by the Board of Trustees, certain
unregistered securities are determined to be liquid and are not included within
the 10% limitation specified above.
96
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Notes to Financial Statements (Continued)
7. Illiquid and Restricted Securities (Continued)
Oppenheimer Bond Fund
<TABLE>
<CAPTION>
Acquisition Cost Valuation as of
Security Date Per Unit December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Colombia (Republic of) 1989-1990 Integrated Loan 12/5/95 $ 92.00 $ 93.00
Facility Bonds, 6.875%, 7/1/01
Merrill Lynch & Co., Inc. 5/15/95 110.05 115.10
Units, 9.75% 6/15/99
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate value of illiquid and restricted securities subject to the 10%
limitation at December 31, 1995 was $2,745,392 or 1.30% of the Fund's net
assets. Pursuant to guidelines adopted by the Board of Trustees, certain
unregistered securities are determined to be liquid and are not included within
the 10% limitation specified above.
Oppenheimer Multiple Strategies Fund
<TABLE>
<CAPTION>
Acquisition Cost Valuation as of
Security Date Per Unit December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Santa Anita Realty Enterprises, Inc., Units 5/28/93-2/9/95 $16.99 $11.88
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate value of illiquid and restricted securities subject to the 10%
limitation at December 31, 1995 was $475,000 or 0.12% of the Fund's net assets.
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
Oppenheimer Global Securities Fund
<TABLE>
<CAPTION>
Acquisition Cost Valuation as of
Security Date Per Unit December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Plant Genetics Systems 5/27/92-3/7/95 $13.77 $11.91
Plant Genetics, Inc. Wts., Exp. 12/99 3/7/95 0.00 1.99
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate value of illiquid and restricted securities subject to the 10%
limitation at December 31, 1995, was $1,180,542, or 0.33% of the Fund's net
assets. Pursuant to the guidelines adopted by the Board of Trustees, certain
unregistered securities are determined to be liquid and are not included within
the 10% limitation specified above.
Oppenheimer Strategic Bond Fund
<TABLE>
<CAPTION>
Acquisition Cost Valuation as of
Security Date Per Unit December 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Colombia (Republic of) 1989-1990 Integrated Loan 12/5/95 $ 92.00 $ 93.00
Facility Bonds, 6.875%, 7/1/01
Goldman, Sachs & Co., Argentina Local Market Securities 8/24/94 100.00 97.75
Trust, 11.30%, 4/1/00
Jamaica (Government of) 1990 Refinancing Agreement 8/15/95 89.75 90.00
Nts., Tranche A, 6.75%, 10/16/00
Pulsar Internacional SA de CV, 11.80% Nts., 9/19/96 9/15/95 100.00 100.75
Trinidad & Tobago Loan Participation Agreement,
Tranche A, 1.563%, 9/30/00 12/13/95-12/18/95 .84 .82
United Mexican States, Combined Facility 3, Loan 10/25/94 89.00 75.75
Participation Agreement, Tranche A, 6.50%, 9/20/97
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The aggregate value of illiquid and restricted securities subject to the 10%
limitation at December 31, 1995, was $1,221,735, or 2.03% of the Fund's net
assets. Pursuant to the guidelines adopted by the Board of Trustees, certain
unregistered securities are determined to be liquid and are not included within
the 10% limitation specified above.
97
<PAGE>
<PAGE>
Independent Auditors' Report
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, Oppenheimer Strategic Bond Fund and Oppenheimer Growth &
Income Fund (all of which are series of Oppenheimer Variable Account Funds) as
of December 31, 1995, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended December 31,
1995 and 1994, and the financial highlights for the applicable periods ended
December 31, 1995, 1994, 1993, 1992, 1991, 1990, 1989, 1988, 1987 and 1986.
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 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, 1995 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, Oppenheimer Strategic Bond Fund and
Oppenheimer Growth & Income Fund at December 31, 1995, 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 LLP
Denver, Colorado
January 22, 1996
98
<PAGE>
<PAGE>
Federal Income Tax Information (Unaudited)
In early 1996, shareholders will receive information regarding all dividends and
distributions paid to them by the Funds during calendar year 1995. Regulations
of the U.S. Treasury Department require the Funds to report this information to
the Internal Revenue Service.
Certain distributions paid on March 24, 1995 were designated as "capital gain
distributions" for federal income tax purposes. These distributions are shown in
the table below. Whether received in stock or cash, a capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
Dividends paid by the Funds during the fiscal year ended December 31, 1995 which
are not designated as capital gain distributions should be multiplied by the
percentages listed below to arrive at the net amount eligible for the corporate
dividend-received deduction.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Long-Term Capital Corporate Dividend-
Gain Distribution Received Deduction
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Oppenheimer Money Fund -- --
- --------------------------------------------------------------------------------------------------------
Oppenheimer High Income Fund -- 4.90%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Bond Fund -- 0.75%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund $.047 4.14%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Growth Fund $.263 18.31%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Multiple Strategies Fund $.371 12.64%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund $.382 --
- --------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund -- 2.18%
- --------------------------------------------------------------------------------------------------------
Oppenheimer Growth & Income Fund -- 38.51%
- --------------------------------------------------------------------------------------------------------
</TABLE>
The foregoing information is presented to assist shareholders in reporting
distributions received from the Funds to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in the state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
99
<PAGE>
<PAGE>
Oppenheimer Variable Account Funds
Officers and Trustees
James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Bridget A. Macaskill, Trustee and President
Ned M. Steel, Trustee
Robert C. Doll, Sr. Vice President
Paul LaRocco, Vice President
Robert J. Milnamow, Vice President
David P. Negri, Vice President
Jane Putnam, Vice President
Richard H. Rubinstein, Vice President
Arthur Steinmetz, Vice President
William Wilby, Vice President
Arthur J. Zimmer, Vice President
Andrew J. Donohue, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor
OppenheimerFunds, Inc.
Transfer Agent
OppenheimerFunds Services
Custodian of Portfolio Securities
The Bank of New York
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, 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.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
100
<PAGE>
<PAGE>
Oppenheimer Zero Coupon
U.S. Treasuries Trust
Series A, B, C, D, E & F
Annual Report dated December 31, 1995
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statements of condition, including the related
portfolios of the 2000 Series and the 2005 Series of the Oppenheimer Zero Coupon
U.S. Treasuries Trust, Series A, as of December 31, 1995 and the related
statements of operations and changes in net assets, including the 1995 Series,
for the years ended December 31, 1995, 1994 and 1993. These financial statements
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series A at December 31, 1995, and the results of its operations and
changes in its net assets, for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Statements of Condition as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 2005
Series Series
- --------------------------------------------------------------------------------
<S> <C> <C>
Trust Property
Investment in marketable securities (see Portfolios) . $4,947,694 $2,480,298
Cash ................................................. 6,469 6,388
Accrued interest receivable .......................... -- 1,179
---------- ----------
Total trust property ................... 4,954,163 2,487,865
Less Liabilities ..................................... 6,469 7,567
---------- ----------
Net Assets - Note 2 .................................. $4,947,694 $2,480,298
========== ==========
Units Outstanding .................................... 6,317,200 4,190,859
========== ==========
Unit Value ........................................... $ .78321 $ .59184
========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Statements of Operations
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 Series
------------------------------------
1995 1994 1993
<S> <C> <C> <C>
Investment Income:
Interest Income .................................. $ 544 $ 1,519 $ 1,745
Accretion of original issue discount ............. 115,462 313,348 308,088
Trustee's fees and expenses - Note 3 ............. (544) (1,519) (1,745)
--------- --------- ---------
Net investment income ............................ 115,462 313,348 308,088
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ......... 44,727 19,535 4,281
Net change in unrealized appreciation
of investments ............................... (44,727) (227,102) (101,947)
--------- --------- ---------
Net gain (loss) on investments ................... 0 (207,567) (97,666)
--------- --------- ---------
Net Increase in Net Assets Resulting
from Operations .............................. $ 115,462 $ 105,781 $ 210,422
========= ========= =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Statements of Operations
For the Years Ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 Series 2005 Series
----------------------------------- -----------------------------------
1995 1994 1993 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest Income .................................. $ 1,763 $ 3,320 $ 4,001 $ 1,838 $ 1,723 $ 2,240
Accretion of original issue discount ............. 355,702 391,867 431,009 150,094 138,092 167,463
Trustee's fees and expenses - Note 3 ............. (1,763) (3,320) (4,001) (1,838) (1,723) (2,240)
--------- --------- --------- --------- --------- ---------
Net investment income ............................ 355,702 391,867 431,009 150,094 138,092 167,463
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ......... 88,501 217,516 140,068 -- 88,245 92,226
Net change in unrealized appreciation
of investments ............................... 433,005 (967,987) 299,144 435,195 (424,886) 214,645
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ................... 521,506 (750,471) 439,212 435,195 (336,641) 306,871
--------- --------- --------- --------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations .............................. $ 877,208 $(358,604) $ 870,221 $ 585,289 $(198,549) $ 474,334
========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Statements of Changes in Net Assets
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 Series
------------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ............................................ $ 115,462 $ 313,348 $ 308,088
Realized gain on securities transactions ......................... 44,727 19,535 4,281
Net unrealized appreciation (depreciation) of investments ...... (44,727) (227,102) (101,947)
----------- ----------- -----------
Net increase in net assets resulting from operations ............. 115,462 105,781 210,422
Capital Share
Transactions - Note 4
Issuance of Units ................................................ -- 25,325 --
Redemption of Units .............................................. (3,334,225) (615,786) (54,412)
----------- ----------- -----------
Net increase (decrease) in
net assets ..................................................... (3,218,763) (484,680) 156,010
Net Assets:
Beginning of period .............................................. $ 3,218,763 $ 3,703,443 3,547,433
----------- ----------- -----------
End of period .................................................... $ 0 $ 3,218,763 $ 3,703,443
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Statements of Changes in Net Assets
For the Years Ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 Series 2005 Series
----------------------------------- ---------------------------------------
1995 1994 1993 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income ......... $ 355,702 $ 391,867 $ 431,009 $ 150,094 $ 138,092 $ 167,463
Realized gain on securities
transactions ................ 88,501 217,516 140,068 -- 88,245 92,226
Net unrealized appreciation
(depreciation) of
investments ................. 433,005 (967,987) 299,144 435,195 (424,886) 214,645
----------- ----------- -------- -------- --------- -----------
Net increase (decrease) in
net assets resulting from
operations ... 877,208 (358,604) 870,221 585,289 (198,549) 474,334
Capital Share
Transactions - Note 4
Issuance of Units ............. 201,027 -- 130,275 203,754 101,879 --
Redemption of Units ............... (734,385) (1,274,581) (646,397) -- (559,832) (470,251)
---------- ---------- ---------- ----------- --------- -----------
Net increase (decrease) in
net assets .................. 343,850 (1,633,185) 354,099 789,043 (656,502) 4,083
Net Assets:
Beginning of period ........... 4,603,844 6,237,029 5,882,930 $1,691,255 2,347,757 2,343,674
---------- ---------- ---------- ----------- ---------- -----------
End of period ................. $4,947,694 $4,603,844 $6,237,029 $2,480,298 $1,691,255 $2,347,757
========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on bid
side evaluations for the securities.
(b) Cost of securities have been adjusted to include the accretion of original
issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
-----------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1995 Series
Cost of 3,289,707 and 3,904,361 Units, respectively................... $1,540,647 $1,838,780
Less sales charge..................................................... 23,878 25,358
---------- ----------
Net amount applicable to certificateholders........................... 1,516,769 1,813,422
Accretion of original issue discount.................................. 1,657,267 1,618,192
Net unrealized appreciation of investments............................ 44,727 271,829
---------- -----------
Net capital applicable to certificateholders.......................... $3,218,763 $3,703,443
========== ==========
2000 Series
Cost of 6,317,200, 7,078,028 and 8,963,103 Units, respectively ....... $2,646,690 $2,813,369 $3,421,333
Less sales charge .................................................... 14,678 19,997 32,898
---------- ---------- ----------
Net amount applicable to certificateholders .......................... 2,632,012 2,793,372 3,388,435
Accretion of original issue discount ................................. 1,648,079 1,575,873 1,646,008
Net unrealized appreciation of investments ........................... 667,604 234,599 1,202,586
---------- ---------- ----------
Net capital applicable to certificateholders ......................... $4,947,694 $4,603,844 $6,237,029
========== ========== ==========
2005 Series
Cost of 4,190,859, 3,768,568 and 4,728,778 Units, respectively ....... $1,297,142 $1,090,285 $1,321,058
Less sales charge .................................................... 24,133 21,030 28,042
---------- ---------- ----------
Net amount applicable to certificateholders .......................... 1,273,009 1,069,255 1,293,016
Accretion of original issue discount ................................. 623,473 473,379 481,234
Net unrealized appreciation of investments ........................... 583,816 148,621 573,507
---------- ---------- ----------
Net capital applicable to certificateholders ......................... $2,480,298 $1,691,255 $2,347,757
========== ========== ==========
</TABLE>
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the years ended December 31,
1995, 1994, and 1993 as follows:
<TABLE>
<CAPTION>
Series 1995 1994 1993
- ------ ---- ---- ----
<S> <C> <C> <C>
1995 ..................... - 26,113 -
2000 ..................... 278,488 - 201,075
2005 ..................... 422,291 226,227 -
</TABLE>
Redemption
During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as
follows:
<TABLE>
<CAPTION>
Series 1995 1994 1993
- ------ ---- ---- ----
<S> <C> <C> <C>
1995 ...................... - 640,767 60,260
2000 ...................... 1,039,316 1,885,075 995,319
2005 ...................... - 1,186,437 1,010,482
</TABLE>
The total proceeds were remitted to the Sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that each Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing. In May of 1995 Series 1995
matured and distributions of $3,306,500 were made.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series A
Portfolios as of December 31, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2000 Series
Stripped Treasury Securities 0% 8-15-00 $6,317,200 $4,280,090 $4,947,694
========== ========== ==========
2005 Series
Stripped Treasury Securities 0% 5-15-05 $4,168,125 $1,875,571 $2,455,234
U.S. Treasury Notes ........ 8.25% 5-15-05 22,734 20,911 25,064
---------- ---------- ----------
Total ................ $4,190,859 $1,896,482 $2,480,298
========== ========== ==========
</TABLE>
- -------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
2000 4,956,608
2005 2,489,274
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series A+
as of December 31, 1995
- --------------------------------------------------------------------------------
Series A is a series unit investment trust consisting of nine separate series,
each with its own portfolio. At December 31, 1995 there are two series which are
still outstanding; these are the 2000 Series and the 2005 Series, designated for
the maturities of their underlying Portfolios (see Portfolios herein).
<TABLE>
<CAPTION>
2000 2005
Series Series
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Face Amount of Securities .................................................................. $6,317,200 $4,190,859
Number of Units ............................................................................ 6,317,200 4,190,859
Fractional Undivided Interest in Fund Represented by Each Unit ............................. 1/6,317,200 rd 1/4,190,859 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund* ............................... $4,956,608.00 $2,489,274.00
------------- -------------
Divided by number of Units times 1,000 .................................................. $ 784.62 $ 593.98
Plus the applicable transaction charge** ................................................ 7.85 8.91
-------------- -------------
Offering Price per 1,000 Units .......................................................... $ 792.47 $ 602.89
============== =============
Sponsor's Repurchase Price Per 1,000 Units (based on offering
side evaluation of underlying Securities) ............................................... $ 784.62 $ 593.98
Redemption Price Per 1,000 Units (based on bid side evaluation
of underlying Securities)**** ............................................................ $ 783.21 $ 591.84
Calculation of Estimated Net Annual Interest Income per 1,000
Units Received in Cash by the Fund
Gross annual income per 1,000 Units ..................................................... $ 0.45 $ 0.45
Less estimated annual expense per 1,000 Units ........................................... 0.45 0.45
-------------- -------------
Net annual income per 1,000 Units....................................................... $ 0.00 $ 0.00
============== =============
Distributions
Distributions will be made on the first business day
following the maturity of each Security in a Series
to holders of record on the business day immediately
preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see
Expenses and Charges) ................................................................... $ 0.35 $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying Securities.
Treating separate maturities as separate issues.
Evaluation Time
3:30 P.M. New York Time
Mandatory Termination Date
January 1, 2035
Minimum Value of Fund
Trust Indenture may be terminated with respect to
any Series if the value of that Series is less than 40% of
the face amount of Securities.
</TABLE>
- --------------------------------
+ The Indenture was signed and the initial deposit was made as of March
20, 1985.
* The aggregate offering side evaluation of the obligations is determined
by the Evaluator on the basis of current offering prices for the
obligations.
** The transaction charges currently applicable to the 2000 Series and the
2005 Series are 1.00% and 1.50% of their respective offering prices per
1,000 Units (1.010% and 1.523%, respectively, of the net amount
invested in Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they
were available) by the number of Units of the Series outstanding,
multiplying the result times 1,000 and adding the applicable
transaction charge as described in the preceding footnote. These
figures assume a purchase of 1,000 Units. The price of a single Unit,
or any multiple thereof, is calculated by dividing the Offering Price
per 1,000 Units above by 1,000 and multiplying by the number of Units.
**** Figures shown are $9.26 and $11.05 less than the Offering Price per
1,000 Units and $1.41 and $2.14 less than the Sponsor's Repurchase
Price per 1,000 Units with respect to the 2000 Series and the 2005
Series, respectively.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statements of condition, including the related
portfolios of the 1996 Series and the 2006 Series of the Oppenheimer Zero Coupon
U.S. Treasuries Trust, Series B, as of December 31, 1995 and the related
statements of operations and changes in net assets for the years ended December
31, 1995, 1994 and 1993. These financial statements are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series B at December 31, 1995 and the results of its operations and
changes in its net assets for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Statements of Condition as of December 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
1996 2006
Series Series
- --------------------------------------------------------------------------------
<S> <C> <C>
Trust Property
Investment in marketable securities (see Portfolios) . $1,984,045 $1,471,967
Cash ................................................. 2,941 4,032
Accrued interest receivable .......................... -- 447
---------- ----------
Total trust property ................... 1,986,986 1,476,446
Less Liabilities ..................................... 2,941 4,479
---------- ----------
Net Assets - Note 2 .................................. $1,984,045 $1,471,967
========== ==========
Units Outstanding .................................... 1,996,283 2,643,019
========== ==========
Unit Value ........................................... $ .99387 $ .55693
========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Statements of Operations
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 Series
-------------------------------------
1995 1994 1993
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ............................................ $ 783 $ 896 $ 896
Accretion of original issue discount ....................... 148,374 137,229 126,935
Trustee's fees and expenses - Note 3 ....................... (783) (896) (896)
--------- --------- ---------
Net investment income ...................................... 148,374 137,229 126,935
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ................... -- -- --
Net change in unrealized appreciation
of investments ........................................ (1,121) (120,896) 8,942
--------- --------- ---------
Net gain (loss) on investments ............................. (1,121) (120,896) 8,942
--------- --------- ---------
Net Increase in Net Assets Resulting
from Operations ....................................... $ 147,253 $ 16,333 $ 135,877
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
2006 Series
-------------------------------------
1995 1994 1993
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ............................................ $ 1,181 $ 1,254 $ 1,439
Accretion of original issue discount ....................... 90,865 90,387 94,089
Trustee's fees and expenses - Note 3 ....................... (1,181) (1,254) (1,439)
--------- --------- ---------
Net investment income ...................................... 90,865 90,387 94,089
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ................... 1,973 41,479 8,786
Net change in unrealized appreciation
of investments ........................................ 281,043 (253,202) 176,267
--------- --------- ---------
Net gain (loss) on investments ............................. 283,016 (211,723) 185,053
--------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations ...................................... $ 373,881 $(121,336) $ 279,142
========= ========= =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Statements of Changes in Net Assets
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 Series
------------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ............................................. $ 148,374 $ 137,229 $ 126,935
Realized gain on securities transactions .......................... -- -- --
Net unrealized appreciation (depreciation) of investments ......... (1,121) (120,896) 8,942
----------- ----------- -----------
Net increase in net assets resulting from operations .............. 147,253 16,333 135,877
Capital Share
Transactions - Note 4
Redemption of Units ............................................... (8,970) -- --
----------- ----------- -----------
Net increase (decrease) in
net assets..................................................... 138,283 16,333 135,877
Net Assets:
Beginning of period ............................................... 1,845,762 1,829,429 1,693,552
----------- ----------- -----------
End of period ..................................................... $ 1,984,045 $ 1,845,762 $ 1,829,429
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
2006 Series
------------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ............................................. $ 90,865 $ 90,387 $ 94,089
Realized gain on securities transactions .......................... 1,973 41,479 8,786
Net unrealized appreciation (depreciation) of investments ......... 281,043 (253,202) 176,266
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations ... 373,881 (121,336) 279,141
Capital Share
Transactions - Note 4
Redemption of Units ............................................... (16,208) (244,993) (51,719)
----------- ----------- -----------
Net increase (decrease) in
net assets ...................................................... 357,673 (366,329) 227,422
Net Assets:
Beginning of period ............................................... 1,114,294 1,480,623 1,253,201
----------- ----------- -----------
End of period ..................................................... $ 1,471,967 $ 1,114,294 $ 1,480,623
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
bid side evaluations for the securities.
(b) Cost of securities have been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
------------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1996 Series
Cost of 1,996,283, 2,004,095, and 2,004,095 Units,
respectively ................................... $ 982,265 $ 991,255 $ 991,255
Less sales charge ................................. 15,989 16,008 16,009
---------- ---------- ----------
Net amount applicable to certificateholders ....... 966,276 975,247 975,246
Accretion of original issue discount .............. 1,010,472 862,097 724,869
Net unrealized appreciation of investments ........ 7,297 8,418 129,314
---------- ---------- ----------
Net capital applicable to certificateholders ...... $1,984,045 $1,845,762 $1,829,429
========== ========== ==========
2006 Series
Cost of 2,643,019, 2,678,166 and 3,220,427 Units,
respectively ................................... $ 764,716 $ 775,044 $ 934,290
Less sales charge ................................. 7,419 7,664 11,338
---------- ---------- ----------
Net amount applicable to certificateholders ....... 757,297 767,380 922,952
Accretion of original issue discount .............. 377,947 291,234 248,789
Net unrealized appreciation of investments ........ 336,723 55,680 308,882
---------- ---------- ----------
Net capital applicable to certificateholders ...... $1,471,967 $1,114,294 $1,480,623
========== ========== ==========
</TABLE>
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the periods ended December 31,
1995, 1994 and 1993 as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1996.................... - - -
2006.................... - - -
</TABLE>
Redemption
During 1995, 1994 and 1993, the Sponsor elected to redeem units of the Fund as
follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1996.................... 7,812 - -
2006.................... 35,147 542,260 125,523
</TABLE>
The total proceeds were remitted to the sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that each Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series B
Portfolios as of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1996 Series
Stripped Treasury Securities 0% 2-15-96 $1,996,282 $1,976,748 $1,984,045
========== ========== ==========
2006 Series
Stripped Treasury Securities 0% 2-15-06 $2,632,000 $1,122,041 $1,456,812
U.S. Treasury Notes ........ 10.75% 8-15-05 11,019 13,203 15,155
---------- ----------- ----------
Total.................. $2,643,019 $1,135,244 $1,471,967
========== =========== ==========
</TABLE>
- -------------------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
1996.................................$1,984,139
2006................................. 1,477,711
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series B+
as of December 31, 1995
- --------------------------------------------------------------------------------
Series B is a series unit investment trust consisting of three separate series,
each with its own portfolio. As of December 31, 1995, there are two series which
are still outstanding; these are the 1996 Series and the 2006 Series designated
for the maturities of their underlying Portfolios. (See Portfolios herein).
<TABLE>
<CAPTION>
1996 2006
Series Series
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Face Amount of Securities ...................................................... $1,996,282 $2,643,019
Number of Units ................................................................ 1,996,282 2,643,019
Fractional Undivided Interest in Fund Represented by Each Unit ................. 1/1,996,282 nd 1/2,643,019 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund* ................... $1,984,139.00 $1,477,711.00
------------- -------------
Divided by number of Units times 1,000 ...................................... $ 993.92 $ 559.10
Plus the applicable transaction charge** .................................... 2.48 8.39
------------- -------------
Offering Price per 1,000 Units .............................................. $ 996.40 $ 567.49
============= =============
Sponsor's Repurchase Price per 1,000 Units (based on offering side evaluation of
underlying Securities) ...................................................... $ 993.92 $ 559.10
Redemption Price per 1,000 Units (based on bid side evaluation of underlying
Securities)**** ............................................................. $ 993.87 $ 556.93
Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in
Cash by the Fund
Gross annual income per 1,000 Units .................................... $ 0.45 $ 0.45
Less estimated annual expense per 1,000 Units .......................... 0.45 0.45
------------ -------------
Net annual income per 1,000 Units ...................................... $ 0.00 $ 0.00
============ =============
Distributions
Distributions will be made on the first business day following the maturity
of each Security in a Series to holders of record on the business day
immediately preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see Expenses and Charges) $ 0.35 $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying Securities.
Treating separate maturities as separate issues.
Evaluation Time
3:30 P.M. New York Time
Mandatory Termination Date
January 1, 2036
Minimum Value of Fund
Trust Indenture may be terminated with respect to any Series if the value of
that Series is less than 40% of the face amount of Securities.
</TABLE>
- ----------------
+ The Indenture was signed and the initial deposit was made as of January
27, 1986.
* The aggregate offering side evaluation of the obligations is determined
by the Evaluator on the basis of current offering prices for the
obligations.
** The transaction charges currently applicable to the 1996 Series and
the 2006 Series are .25% and 1.50% of their respective Offering Price
per 1,000 Units (.251% and 1.523%, respectively, of the net amount
invested in Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they
were available) by the number of Units of the Series outstanding,
multiplying the result times 1,000 and adding the applicable transaction
charges described in the preceding footnote. These figures assume a
purchase of 1,000 Units. The price of a single Unit, or any multiple
thereof, is calculated by dividing the Offering Price per 1,000 Units
above by 1,000 and multiplying by the number of Units.
**** Figures shown are $2.53 and $10.56 less than the Offering Price per
1,000 Units and $0.05 and $2.17 less than the Sponsor's Repurchase Price
per 1,000 Units, with respect to the 1996 Series and the 2006 Series,
respectively.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statements of condition, including the related
portfolios of the 1997 Series and the 2007 Series of the Oppenheimer Zero Coupon
U.S. Treasuries Trust, Series C, as of December 31, 1995 and the related
statements of operations and changes in net assets for the years ended December
31, 1995, 1994 and 1993. These financial statements are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series C at December 31, 1995 and the results of its operations and
changes in its net assets, for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Statements of Condition as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 2007
Series Series
- --------------------------------------------------------------------------------
<S> <C> <C>
Trust Property
Investment in marketable securities(see Portfolios) .. $2,735,922 $ 477,140
Cash ................................................. 3,819 739
Accrued interest receivable .......................... 167 357
---------- ----------
Total trust property ...................... 2,739,908 478,236
Less Liabilities ..................................... 3,986 1,096
---------- ----------
Net Assets - Note 2 .................................. $2,735,922 $ 477,140
========== ==========
Units Outstanding .................................... 2,973,342 915,372
========== ==========
Unit Value ........................................... $ .92015 $ .52125
========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Statements of Operations
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 Series
-------------------------------------
1995 1994 1993
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ................................................. $ 1,327 $ 1,468 $ 1,831
Accretion of original issue discount ............................ 218,320 236,747 253,557
Trustee's fees and expenses - Note 3 ............................ (1,327) (1,468) (1,831)
--------- --------- ---------
Net investment income ........................................... 218,320 236,747 253,557
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ........................ 16,984 80,455 39,770
Net change in unrealized appreciation
of investments ............................................. 84,363 (380,389) 47,606
--------- --------- ---------
Net gain (loss) on investments .................................. 101,347 (299,934) 87,376
--------- --------- ---------
Net Increase (decrease) in Net Assets Resulting
from Operations ............................................ $ 319,667 $ (63,187) $ 340,933
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
2007 Series
-------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ................................................. $ 409 $ 441 $ 668
Accretion of original issue discount ............................ 28,781 33,681 39,285
Trustee's fees and expenses - Note 3 ............................ (409) (441) (668)
--------- --------- ---------
Net investment income ........................................... 28,781 33,681 39,285
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ........................ -- 26,271 14,716
Net change in unrealized appreciation
of investments ............................................. 97,101 (116,237) 68,738
--------- --------- ---------
Net gain (loss) on Investments .................................. 97,101 (89,966) 83,454
--------- --------- ---------
Net Increase (decrease) in Net Assets Resulting
from Operations ............................................ $ 125,882 $ (56,285) $ 122,739
========= ========= =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Statements of Changes in Net Assets
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 Series
------------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ............................................ $ 218,320 $ 236,747 $ 253,557
Realized gain on securities transactions ......................... 16,984 80,455 39,770
Net unrealized appreciation (depreciation) of investments ........ 84,363 (380,389) 47,606
----------- ----------- -----------
Net increase ( decrease) in net assets resulting from operations . 319,667 (63,187) 340,933
Capital Share
Transactions - Note 4
Issuance of Units ................................................ -- -- --
Redemption of Units .............................................. (272,007) (679,914) (257,107)
----------- ----------- -----------
Net increase (decrease) in
net assets .................................................... 47,660 (743,101) 83,826
Net Assets:
Beginning of period ............................................ 2,688,262 3,431,363 3,347,537
----------- ----------- -----------
End of period .................................................. $ 2,735,922 $ 2,688,262 $ 3,431,363
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
2007 Series
------------------------------------------
1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ............................................ $ 28,781 $ 33,681 $ 39,285
Realized gain on securities transactions ......................... -- 26,271 14,716
Net unrealized appreciation (depreciation) of investments ........ 97,101 (116,237) 68,738
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations .. 125,882 (56,285) 122,739
Capital Share
Transactions - Note 4
Issuance of Units .................................................. -- 80,117 --
Redemption of Units ................................................ -- (300,198) (51,373)
----------- -----------
Net increase (decrease) in
net assets ....................................................... 125,882 (276,366) 71,366
Net Assets:
Beginning of period ................................................ 351,258 627,624 556,258
----------- ----------- -----------
End of period ...................................................... $ 477,140 $ 351,258 $ 627,624
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's Sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
bid side evaluations for the securities.
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
------------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1997 Series
Cost of 2,973,342, 3,290,297 and 4,105,325 Units,
respectively ........................................ $1,501,215 $1,632,479 $1,964,823
Less sales charge ..................................... 16,801 18,167 22,692
---------- ---------- ----------
Net amount applicable to certificateholders ........... 1,484,414 1,614,312 1,942,131
Accretion of original issue discount .................. 1,103,843 1,010,649 1,045,542
Net unrealized appreciation of investments ............ 147,664 63,301 443,690
---------- ---------- ----------
Net capital applicable to certificateholders .......... $2,735,922 $2,688,262 $3,431,363
========== ========== ==========
2007 Series
Cost of 915,372, 915,372 and 1,477,056 Units,
respectively ........................................ $ 215,892 $ 215,892 $ 326,201
Less sales charge ..................................... 6,175 6,175 1,944
---------- ---------- ----------
Net amount applicable to certificateholders ........... 209,717 209,717 324,257
Accretion of original issue discount .................. 147,474 118,693 164,282
Net unrealized appreciation of investments ............ 119,949 22,848 139,085
---------- ---------- ----------
Net capital applicable to certificateholders .......... $ 477,140 $ 351,258 $ 627,624
========== ========== ==========
</TABLE>
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the periods ended December 31,
1995, 1994 and 1993 as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1997......................... - - -
2007......................... - 214,022 -
</TABLE>
Redemption
During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as
follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1997........................ 316,955 815,028 332,048
2007........................ - 775,706 135,648
</TABLE>
The total proceeds were remitted to the Sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that each Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series C
Portfolios as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1997 Series
Stripped Treasury Securities............... 0% 8-15-97 $2,955,000 $2,569,279 $2,717,270
U.S. Treasury Notes........................ 7.25% 11-15-96 18,342 18,979 18,652
---------- ---------- ----------
Total.................................... $2,973,342 $2,588,258 $2,735,922
========== ========== ==========
2007 Series
Stripped Treasury Securities............... 0% 2-15-07 $ 911,000 $ 352,073 $ 471,515
U.S. Treasury Notes........................ 9.375% 2-15-06 4,372 5,118 5,625
----------- ----------- -----------
Total.................................... $ 915,372 $ 357,191 $ 477,140
=========== =========== ===========
</TABLE>
- -------------------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
1997................................. $2,737,650
2007................................. 479,184
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series C+
As of December 31, 1995
- --------------------------------------------------------------------------------
Series C is a series unit investment trust consisting of two separate series,
each with its own portfolio. These are the 1997 Series and the 2007 Series,
designated for the maturities of their underlying Portfolios (see Portfolios
herein).
<TABLE>
<CAPTION>
1997 2007
Series Series
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Face Amount of Securities ........................................................... $ 2,973,342 $ 915,372
Number of Units ..................................................................... 2,973,342 915,372
Fractional Undivided Interest in Fund Represented by Each Unit ...................... 1/2,973,342 th 1/915,372 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund* ..................... $2,737,650.00 $ 479,184.00
-------------- --------------
Divided by number of Units times 1,000 ........................................ $ 920.73 $ 523.49
Plus the applicable transaction charge** ...................................... 4.60 7.85
-------------- --------------
Offering Price per 1,000 Units ................................................ $ 925.34 $ 531.34
============== ==============
Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of
underlying Securities) ............................................................ $ 920.73 $ 523.49
Redemption Price Per 1,000 Units (based on bid side evaluation of underlying
Securities)**** ................................................................... $ 920.15 $ 521.25
Calculation of Estimated Net Annual Interest Income per 1,000 Units Received in
Cash by the Fund
Gross annual income per 1,000 Units ........................................... $ 0.45 $ 0.45
Less estimated annual expense per 1,000 Units ................................. 0.45 0.45
-------------- --------------
Net annual income per 1,000 Units ............................................. $ 0.00 $ 0.00
============== ==============
Distributions
Distributions will be made on the first business day following the maturity
of each Security in a Series to holders of record on the business day
immediately preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see Expenses and Charges).... $ 0.35 $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying Securities.
Treating separate maturities as separate issues.
Evaluation Time
3:30 P.M. New York Time
Mandatory Termination Date
January 1, 2037
Minimum Value of Fund
Trust Indenture may be terminated with respect to any Series if the value
of that Series is less than 40% of the face amount of Securities.
</TABLE>
- -------------------------
+ The Indenture was signed and the initial deposit was made as of April
21, 1987.
* The aggregate offering side evaluation of the obligations is determined
by the Evaluator on the basis of current offering prices for the
obligations.
** The transaction charges currently applicable to the 1997 Series and the
2007 Series, are .50% and 1.50% of their respective Offering Prices
per 1,000 Units (.503% and 1.523%, respectively, of the net amount
invested in Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they
were available) by the number of Units of the Series outstanding,
multiplying the result times 1,000 and adding the applicable transaction
charge as described in the preceding footnote. These figures assume a
purchase of 1,000 Units. The price of a single Unit, or any multiple
thereof, is calculated by dividing the Offering Price per 1,000 Units
above by 1,000 and multiplying by the number of Units.
**** Figures shown are $5.19 and $10.04 less then the Offering Price per
1,000 Units and $0.58 and $2.24 less than the Sponsor's Repurchase Price
per 1,000 Units, with respect to the 1997 Series and the 2007 Series
respectively.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statements of condition, including the related
portfolios of the 1998 Series and the 2008 Series of the Oppenheimer Zero Coupon
U.S. Treasuries Trust, Series D, as of December 31, 1995 and the related
statements of operations and changes in net assets for the years ended December
31, 1995, 1994 and 1993. These financial statements are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series D at December 31, 1995 and the results of its operations and
changes in its net assets, for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Statements of Condition as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 2008
Series Series
- --------------------------------------------------------------------------------
<S> <C> <C>
Trust Property
Investment in marketable securities(see Portfolios) .... $ 898,194 $ 486,153
Cash ................................................... -- 2,501
Accrued interest receivable ............................ -- 58
---------- ----------
Total trust property ............................... 898,194 488,712
Less Liabilities ....................................... -- 2,559
---------- ----------
Net Assets-Note 2 ...................................... $ 898,194 $ 486,153
========== ==========
Units Outstanding ...................................... 1,015,000 1,023,236
========== ==========
Unit Value ............................................. $ .88492 $ .47511
========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Statements of Operations
For the years ended December 31, 1995, 1994, and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 Series
------------------------------------
1995 1994 1993
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ............................................ $ 115 $ 275 $ 74
Accretion of original issue discount ....................... 47,098 61,692 60,284
Trustee's fees and expenses - Note 3 ....................... (115) (275) (74)
--------- --------- ---------
Net investment income ...................................... 47,098 61,692 60,284
Realized and Unrealized Gain (loss) on Investments
Realized gain on securities transactions ................... 13,935 9,906 10,954
Net change in unrealized appreciation
of investments ........................................ 53,409 (111,726) 44,373
--------- --------- ---------
Net gain (loss) on investments ............................. 67,344 (101,820) 55,327
--------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations ....................................... $ 114,442 $ (40,128) $ 115,611
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
2008 Series
------------------------------------
1995 1994 1993
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ............................................ $ 457 $ 457 $ 561
Accretion of original issue discount ....................... 27,593 29,937 42,419
Trustee's fees and expenses-Note 3 ......................... (457) (457) (561)
--------- --------- ---------
Net investment income ...................................... 27,593 29,937 42,419
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions ................... -- 7,013 75,586
Net change in unrealized appreciation
of investments ........................................ 110,894 (92,900) 13,877
--------- --------- ---------
Net gain (loss) on investments ............................. 110,894 (85,887) 89,463
--------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations ....................................... $ 138,487 $ (55,950) $ 131,882
========= ========= =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Statements of Changes In Net Assets
For the years ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 Series
------------------------------------------
1995 1994 1993
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ....................................... $ 47,098 $ 61,692 $ 60,284
Realized gain on securities transactions .................... 13,935 9,906 10,954
Net unrealized appreciation (depreciation) of investments ... 53,409 (111,726) 44,373
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations 114,442 (40,128) 115,611
Capital Share
Transactions - Note 4
Issuance of Units ........................................... 167,820 -- --
Redemption of Units ......................................... (214,483) (190,719) (66,466)
----------- ----------- -----------
Net increase (decrease) in
net assets .............................................. 67,779 (230,847) 49,145
----------- ----------- -----------
Net Assets:
Beginning of period ....................................... 830,415 1,061,262 1,012,117
----------- ----------- -----------
End of period ............................................. $ 898,194 $ 830,415 $ 1,061,262
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
2008 Series
------------------------------------------
1995 1994 1993
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ....................................... $ 27,593 $ 29,937 $ 42,419
Realized gain on securities transactions .................... -- 7,013 75,586
Net unrealized appreciation (depreciation) of investments ... 110,894 (92,900) 13,877
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations 138,487 (55,950) 131,882
Capital Share
Transactions - Note 4
Issuance of Units ........................................... -- -- --
Redemption of Units ......................................... -- (74,693) (279,036)
----------- ----------- -----------
Net increase (decrease) in
net assets ................................................ 138,487 (130,643) (147,154)
Net Assets:
Beginning of period ....................................... 347,666 478,309 625,463
----------- ----------- -----------
End of period ............................................. $ 486,153 $ 347,666 $ 478,309
=========== =========== ===========
</TABLE>
See Notes To Financial Statements
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Notes To Financial Statements
For the years ended December 31, 1995, 1994, and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
bid side evaluations for the securities.
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
-------------------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1998 Series
Cost of 1,015,000, 1,075,187 and 1,321,762 Units,
respectively............................................................. $ 568,967 $ 518,346 $ 626,780
Less sales charge.......................................................... 7,618 7,952 9,397
--------- --------- -----------
Net amount applicable to certificateholders................................ 561,349 510,394 617,383
Accretion of original issue discount....................................... 189,725 226,310 238,442
Net unrealized appreciation of investments................................. 147,120 93,711 205,437
--------- --------- -----------
Net capital applicable to certificateholders............................... $ 898,194 $ 830,415 $1,061,262
========= ========= ===========
2008 Series
Cost of 1,023,236, 1,023,236 and 1,256,429 Units,
respectively............................................................. $ 192,831 $ 192,831 $ 236,061
Less sales charge.......................................................... 5,874 5,874 7,215
--------- --------- ------------
Net amount applicable to certificateholders................................ 186,957 186,957 228,846
Accretion of original issue discount....................................... 145,329 117,737 113,591
Net unrealized appreciation of investments................................. 153,866 42,972 135,872
--------- --------- ------------
Net capital applicable to certificateholders............................... $486,153 $ 347,666 $ 478,309
========= ========= ===========
</TABLE>
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Notes to Financial Statements
For the years ended December 31, 1995, 1994 and 1993 (Concluded)
- --------------------------------------------------------------------------------
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the periods ended December
31, 1995, 1994 and 1993 as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1998.................... 201,286 - -
2008.................... - - -
</TABLE>
Redemption
During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the
Fund as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1998.................... 261,473 246,575 87,239
2008.................... - 233,193 773,960
</TABLE>
The total proceeds were remitted to the Sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that each Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series D
Portfolios as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1998 Series
Stripped Treasury Securities ... 0% 5-15-98 $1,015,000 $ 751,074 $ 898,194
========== ========== ==========
2008 Series
Stripped Treasury Securities 0% 11-15-08 $1,018,000 $ 327,509 $ 479,916
U.S. Treasury Notes ............ 8.75% 11-15-08 5,236 4,778 6,237
---------- ---------- ----------
Total........................ $1,023,236 $ 332,287 $ 486,153
========== =========== ==========
</TABLE>
- -------------------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
1998...................................$ 899,023
2008................................... 488,562
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series D+
as of December 31, 1995
- --------------------------------------------------------------------------------
Series D is a series unit investment trust consisting of two separate series,
each with its own portfolio. These are the 1998 Series and 2008 Series,
designated for the maturities of their underlying Portfolios (see Portfolios
herein).
<TABLE>
<CAPTION>
1998 2008
Series Series
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Face Amount of Securities............................................................... $1,015,000 $ 1,023,236
Number of Units......................................................................... 1,015,000 1,023,236
Fractional Undivided Interest in Fund Represented by Each Unit ......................... 1/1,015,000 nd 1/1,023,236 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund*.......................... $ 899,023.00 $ 488,562.00
------------- --------------
Divided by number of Units times 1,000............................................. $ 885.74 $ 477.47
Plus the applicable transaction charge**........................................... 6.64 8.36
------------- --------------
Offering Price per 1,000 Units..................................................... $ 892.38 $ 485.82
============= ==============
Sponsor's Repurchase Price Per 1,000 Units (based on offering
side evaluation of underlying Securities).......................................... $ 885.74 $ 477.47
Redemption Price Per 1,000 Units (based on bid side evaluation
of underlying Securities)****...................................................... $ 884.92 $ 475.11
Calculation of Estimated Net Annual Interest Income Per 1,000
Units Received in Cash by the Fund
Gross annual income per 1,000 Units................................................ $ 0.45 $ 0.45
Less estimated annual expense per 1,000 Units...................................... 0.45 0.45
------------- --------------
Net annual income per 1,000 Units.................................................. $ 0.00 $ 0.00
============= ==============
Distributions
Distributions will be made on the first business day following the maturity
of each Security in a Series to holders of record on the business day
immediately preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see Expenses
and Charges)................................................................. $ 0.35 $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying
Securities. Treating separate
maturities as separate issues.
Evaluation Time
3:30 P.M. New York Time
Mandatory Termination Date
January 1, 2038
Minimum Value of Fund
Trust Indenture may be terminated with respect to any Series if the value
of that Series is less than 40% of the face amount of Securities.
</TABLE>
- ------------------
+ The Indenture was signed and the initial deposit was made as of April
18, 1988.
* The aggregate offering side evaluation of the obligations is determined
by the Evaluator on the basis of current offering prices for the
obligations.
** The transaction charges currently applicable to the 1998 Series and the
2008 Series are .75% and 1.75% of their respective Offering Prices per
1,000 Units (.756% and 1.781%, respectively, of the net amount invested
in Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they
were available) by the number of Units of the Series outstanding,
multiplying the result times 1,000 and adding the applicable transaction
charge as described in the preceding footnote. These figures assume a
purchase of 1,000 Units. The price of a single Unit, or any multiplying
thereof, is calculated by dividing the Offering Price per 1,000 Units
above by 1,000 and multiplying by the number of Units.
**** Figures shown are $7.46 and $10.71 less than the Offering Price per
1,000 Units and $.82 and $2.36 less than the Sponsor's Repurchase Price
per 1,000 Units, with respect to the 1998 Series and the 2008 Series,
respectively.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statements of condition, including the related
portfolios of the 1999 Series and the 2009 Series of the Oppenheimer Zero Coupon
U.S. Treasuries Trust, Series E, as of December 31, 1995 and the related
statements of operations and changes in net assets for the years ended December
31, 1995, 1994 and 1993. These financial statements are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series E at December 31, 1995 and the results of its operations and
changes in its net assets, for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Statements of Condition As of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 2009
Series Series
- --------------------------------------------------------------------------------
<S> <C> <C>
Trust Property
Investment in marketable securities (see Portfolios) ... 378,013 $165,314
Cash ................................................... -- 6,181
Accrued interest receivable ............................ 176 101
-------- --------
Total trust property ............................... 378,189 171,596
Less Liabilities ....................................... 176 6,282
-------- --------
Net Assets-Note 2 ...................................... $378,013 $165,314
======== ========
Units Outstanding ...................................... 450,273 359,216
Unit Value ............................................. $ .83952 $ .46021
======== ========
</TABLE>
See Notes to Financial Statements
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Statement of Operations
For the years ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 Series
-------------------------------------
1995 1994 1993
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ................................................. $ 207 $ 249 $ 255
Accretion of original issue discount ............................ 27,592 30,327 28,399
Trustee's fees and expenses - Note 3 ............................ (207) (249) (255)
-------- -------- --------
Net investment income ........................................... 27,592 30,327 28,399
Realized and Unrealized Gain (Loss) on Investments
Realized gain (loss) on securities transactions ................. 5,396 588 9,378
Net change in unrealized appreciation
of investments ............................................. 27,648 (53,426) 13,325
-------- -------- --------
Net gain (loss) on investments .................................. 33,044 (52,838) 22,703
-------- -------- --------
Net Increase (decrease) in Net Assets Resulting
from Operations ............................................ $ 60,636 $(22,511) $ 51,102
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
2009 Series
-------------------------------------
1995 1994 1993
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest Income ................................................. $ 161 $ 220 $ 417
Accretion of original issue discount ............................ 9,738 15,548 22,463
Trustee's fees and expenses - Note 3 ............................ (161) (220) (417)
-------- -------- --------
Net investment income ........................................... 9,738 15,548 22,463
Realized and Unrealized Gain (Loss) on Investments
Realized gain (loss) on securities transactions ................. 961 2,176 20,020
Net change in unrealized appreciation
of investments ............................................. 38,500 (52,410) 33,888
-------- -------- --------
Net gain (loss) on investments .................................. 39,461 (50,236) 53,908
-------- -------- --------
Net Increase (decrease) in Net Assets Resulting
from Operations ............................................ $ 49,199 $(34,686) $ 76,371
======== ======== ========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero coupon U.S. Treasuries Trust, Series E
Statements of Changes in Net Assets
For the years ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 Series
---------------------------------------
1995 1994 1993
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ....................................... $ 27,592 $ 30,327 $ 28,399
Realized gain on securities transactions .................... 5,396 588 9,378
Net unrealized appreciation (depreciation) of investments ... 27,648 (53,426) 13,325
--------- --------- ---------
Net increase (decrease) in net assets resulting from operations 60,636 (22,511) 51,102
Capital Share
Transactions - Note 4
Issuance of Units ........................................... -- -- 36,091
Redemption of Units ......................................... (80,186) (8,623) (53,027)
--------- --------- ---------
Net increase (decrease) in
net assets ............................................... (19,550) (31,134) 34,166
Net Assets:
Beginning of period ....................................... 397,563 428,697 394,531
--------- --------- ---------
End of period ............................................. $ 378,013 $ 397,563 $ 428,697
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
2009 Series
---------------------------------------
1995 1994 1993
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ....................................... $ 9,738 $ 15,548 $ 22,463
Realized gain (loss) on securities transactions ............. 961 2,176 20,020
Net unrealized appreciation (depreciation) of investments ... 38,500 (52,410) 33,888
--------- --------- ---------
Net increase (decrease) in net assets resulting from operations 49,199 (34,686) 76,371
Capital Share
Transactions - Note 4
Issuance of units ........................................... -- -- --
Redemption of Units ......................................... (14,286) (129,221) (122,097)
--------- --------- ---------
Net increase (decrease) in
net assets ................................................ 34,913 (163,907) (45,726)
Net Assets:
Beginning of period ....................................... 130,401 294,308 340,034
--------- --------- ---------
End of period ............................................. $ 165,314 $ 130,401 $ 294,308
========= ========= =========
</TABLE>
See Notes to Financial Statements
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Notes to Financial Statements
For the years ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on bid
side evaluations for the securities.
(b) Cost of securities has been adjusted to include the accretion of original
issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
--------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1999 Series
Cost of 450,273, 555,805 and 567,866 Units, respectively $226,513 $272,841 $277,822
Less sales charge ...................................... 3,244 3,850 3,916
-------- -------- --------
Net amount applicable to certificateholders ............ 223,269 268,991 273,906
Accretion of original issue discount ................... 123,287 124,763 97,556
Net unrealized appreciation of investments ............. 31,457 3,809 57,235
-------- -------- --------
Net capital applicable to certificateholders ........... $378,013 $397,563 $428,697
======== ======== ========
2009 Series
Cost of 359,216, 399,352 and 802,717 Units, respectively $ 85,892 $ 94,983 $186,079
Less sales charge ...................................... 6,158 6,414 8,726
-------- -------- --------
Net amount applicable to certificateholders ............ 79,734 88,569 177,353
Accretion of original issue discount ................... 47,046 41,798 64,511
Net unrealized appreciation of investments ............. 38,534 34 52,444
-------- -------- --------
Net capital applicable to certificateholders ........... $165,314 $130,401 $294,308
======== ======== ========
</TABLE>
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Notes to Financial Statements
For the years ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the periods ended December 31,
1995, 1994 and 1993 as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1999....................... - - 50,254
2009....................... - - -
</TABLE>
Redemption
During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund as
follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
1999........................ 105,532 12,061 75,380
2009........................ 40,136 403,365 351,189
</TABLE>
The total proceeds were remitted to the Sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that each Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series E
Portfolios as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999 Series
Stripped Treasury Securities ............. 0% 5-15-99 $448,000 $344,127 $375,507
U.S. Treasury Notes ...................... 8.875% 2-15-99 2,273 2,429 2,506
-------- -------- --------
Total .................................... $450,273 $346,556 $378,013
======== ======== ========
2009 Series
Stripped Treasury Securities ............. 0% 05-15-09 $358,000 $124,278 $163,273
U.S. Treasury Notes ...................... 13.25% 05-15-14 1,216 2,502 2,041
-------- -------- --------
Total................................ $359,216 $126,780 $165,314
======== ======== ========
</TABLE>
- -----------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
1999 .............................$378,508
2009 ............................. 166,164
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series E+
As of December 31, 1995
- --------------------------------------------------------------------------------
Series E is a series unit investment trust consisting of two separate series,
each with its own portfolio. These are the 1999 Series and 2009 Series,
designated for the maturities of their underlying Portfolios (see Portfolios
herein).
<TABLE>
<CAPTION>
1999 2009
Series Series
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Face Amount of Securities ................................................... $450,273 $359,216
Number of Units ............................................................. 450,273 359,216
Fractional Undivided Interest in Fund Represented by Each Unit .............. 1/450,273 th 1/359,216 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund* .............. $378,508.00 $166,164.00
------------ ------------
Divided by number of Units times 1,000 ................................. $ 840.62 $ 462.57
Plus the applicable transaction charge** ............................... 6.30 8.10
----------- ------------
Offering Price per 1,000 Units ......................................... $ 846.92 $ 470.67
=========== ============
Sponsor's Repurchase Price per 1,000 Units (based on offering side evaluation
of underlying Securities) ............................................... $ 840.62 $ 462.57
Redemption Price per 1,000 Units (based on bid side evaluation of underlying
Securities)**** ......................................................... $ 839.52 $ 460.21
Calculation of Estimated Net Annual Interest Income per 1,000 Units Received
in Cash by the Fund
Gross annual income per 1,000 Units .................................... $ 0.45 $ 0.45
Less estimated annual expense per 1,000 Units .......................... 0.45 0.45
------------ ------------
Net annual income per 1,000 Units ...................................... $ 0.00 $ 0.00
============ ============
Distributions
Distributions will be made on the first business day following the maturity
of each Security in a Series to holders of record on the business day
immediately preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see Expenses and Charges) $ 0.35 $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying Securities.
Treating separate maturities as separate issues.
Evaluation Time
3:30 P.M. New York Time
Mandatory Termination Date
January 1, 2039
Minimum Value of Fund
Trust Indenture may be terminated with respect to any Series if the value
of that Series is less than 40% of the face amount of Securities.
</TABLE>
- --------------------
+ The Indenture was signed and the initial deposit was made as of April 17,
1989.
* The aggregate offering side evaluation of the obligations is determined by
the Evaluator on the basis of current offering prices for the obligations.
** The transaction charges currently applicable to the 1999 Series and the
2009 Series are .75% and 1.75% of their respective Offering Prices per
1,000 Units (.756% and 1.781%, respectively, of the net amount invested in
Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they were
available) by the number of Units of the Series outstanding, multiplying
the result times 1,000 and adding the applicable transaction charge as
described in the preceding footnote. These figures assume a purchase of
1,000 Units. The price of a single Unit, or any multiple thereof, is
calculated by dividing the Offering Price per 1,000 Units above by 1,000
and multiplying by the number of Units.
**** Figures shown are $7.40 and $10.46 less than the Offering Price per 1,000
Units and $1.10 and $2.36 less than the Sponsor's Repurchase Price per
1,000 Units, with respect to the 1999 Series and the 2009 Series,
respectively.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Independent Auditors' Report
- --------------------------------------------------------------------------------
We have audited the accompanying statement of condition, including the related
portfolio of the 2010 Series of the Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series F, as of December 31, 1995 and the related statement of operations
and changes in net assets for the years ended December 31, 1995, 1994 and 1993.
These financial statements are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements 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 are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets of Oppenheimer Zero Coupon U.S. Treasuries
Trust, Series F at December 31, 1995 and the results of its operations and
changes in its net assets, for the above stated periods, in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 6, 1996
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Statement of Condition as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2010
Series
- --------------------------------------------------------------------------------
<S> <C>
Trust Property
Investment in marketable securities (see Portfolio) ............. $ 995,779
Cash ............................................................ 5,149
Accrued interest receivable ..................................... 890
---------
Total trust property ................................. 1,001,818
Less Liabilities ................................................ 6,039
---------
Net Assets - Note 2 ............................................ $ 995,779
=========
Units Outstanding ............................................... 2,277,690
=========
Unit Value ...................................................... $ .43719
=========
</TABLE>
See Notes to Financial Statements
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Statement of Operations
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2010
Series
- -------------------------------------------------------------------------------------------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Investment Income:
Interest Income............................................................ $ 972 $ 667 $ 794
Accretion of original issue discount....................................... 45,398 34,853 37,999
Trustee's fees and expenses - Note 3....................................... (972) (667) (794)
---------- ----------- -----------
Net investment income...................................................... 45,398 34,853 37,999
Realized and Unrealized Gain (Loss) on Investments
Realized gain on securities transactions................................... 7,439 13,974 15,524
Net change in unrealized appreciation
of investments........................................................ 179,203 (114,358) 71,612
------- -------- ---------
Net gain (loss) on investments............................................. 186,642 (100,384) 87,136
------- -------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations....................................................... $232,040 $ (65,531) $ 125,135
======= ========== =========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Statement of Changes in Net Assets
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2010
Series
- -----------------------------------------------------------------------------------------------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Operations
Net investment income................................................... $ 45,398 $ 34,853 $ 37,999
Realized gain on securities transactions................................ 7,439 13,974 15,524
Net unrealized appreciation (depreciation) of investments............... 179,203 (114,358) 71,612
---------- --------- ---------
Net increase (decrease) in net assets resulting from operations......... 232,040 (65,531) 125,135
Capital Share
Transactions - Note 4
Issuance of Units....................................................... 393,549 - -
Redemption of Units..................................................... (74,072) (104,416) (152,570)
---------- --------- ---------
Net increase (decrease) in
net assets............................................................ 551,517 (169,947) (27,435)
Net Assets:
Beginning of period................................................... 444,262 614,209 641,644
---------- --------- ---------
End of period......................................................... $995,779 $ 444,262 $ 614,209
======== ========= =========
</TABLE>
See Notes to Financial Statements
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
The Fund is registered under the Investment Company Act of 1940 as a unit
investment trust. Units of the Fund are sold only to separate investment
accounts of life insurance companies to fund variable life insurance policies.
The Fund's sponsor is Oppenheimer Funds Distributor, Inc. The following is a
summary of significant accounting policies consistently followed by the Fund.
The policies are in conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on bid
side evaluations for the securities.
(b) Cost of securities have been adjusted to include the accretion of original
issue discount on the Stripped Treasury Securities.
2. Net Capital
<TABLE>
<CAPTION>
December 31,
-------------------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
2010 Series
Cost of 2,277,690, 1,451,539 and 1,776,780 Units, respectively ....... $699,696 $352,736 $423,138
Less sales charge .................................................... 13,503 7,819 1,237
-------- -------- --------
Net amount applicable to certificateholders .......................... 686,193 344,917 421,901
Accretion of original issue discount ................................. 115,617 84,579 63,184
Net unrealized appreciation of investments ........................... 193,969 14,766 129,124
-------- -------- --------
Net capital applicable to certificateholders ......................... $995,779 $444,262 $614,209
======== ======== ========
</TABLE>
3. Expenses
Trustee's fees and other expenses incurred by the Fund are limited to the amount
of income generated by the Interest Bearing Treasury Securities in each Series.
Any excess expenses are assumed by the Sponsor.
4. Capital Share Transactions
Issuance
Additional Units were issued by the Fund during the periods ended December 31,
1995, 1994 and 1993, as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
2010 .................... 1,046,994 - -
</TABLE>
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Notes to Financial Statements
For the Years Ended December 31, 1995, 1994 and 1993
- --------------------------------------------------------------------------------
Redemptions
During 1995, 1994 and 1993, the Sponsor elected to redeem Units of the Fund, as
follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
2010.......... 220,843 325,241 542,068
</TABLE>
The total proceeds were remitted to the Sponsor.
5. Income Taxes
All income received, accretion of original issue discount, expenses paid, and
realized gains and losses on securities sold are attributable to the holder, on
a pro rata basis, for Federal income tax purposes in accordance with the grantor
trust rules of the Internal Revenue Code.
At December 31, 1995, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Series' portfolio.
6. Distributions
It is anticipated that the Series will not make any distributions until the
first business day following the maturity of its holding in the Stripped
Treasury Securities which are non-interest bearing.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust, Series F
Portfolio as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Series No. and Coupon Face Adjusted
Title of Securities Rates Maturities Amount Cost Value (*)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2010 Series
Stripped Treasury Securities............ 0% 2-15-10 $2,269,000 $ 789,171 $ 983,385
U.S. Treasury Notes..................... 11.75% 2-15-10 8,690 12,639 12,394
------------ ---------- ----------
Total................................ $2 277,690 $ 801,810 $ 995,779
============ ========== ==========
</TABLE>
- ------------
(*) The aggregate values based on offering side evaluations at December 31, 1995
were as follows:
<TABLE>
<CAPTION>
Series Amount
------ ------
<S> <C>
2010....................................$1,001,192
</TABLE>
See Notes to Financial Statements.
<PAGE>
<PAGE>
Investment Summary of Series F+
As of December 31, 1995
- --------------------------------------------------------------------------------
Series F is a series unit investment trust consisting of the 2010 Series
designated for the maturity of its underlying Portfolio (see Portfolio herein).
<TABLE>
<CAPTION>
2010
Series
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Face Amount of Securities................................................................................. $ 2,277,690
Number of Units........................................................................................... 2,277,690
Fractional Undivided Interest in Fund Represented by Each Unit............................................ 1/2,277,690 th
Offering Price per 1,000 Units***
Aggregate offering side evaluation of Securities in Fund*........................................... $ 1,001,192.00
--------------
Divided by number of units times 1,000.............................................................. $ 439.56
Plus the applicable transaction charge**............................................................ 7.69
--------------
Offering price per 1,000 units...................................................................... $ 447.26
==============
Sponsor's Repurchase Price Per 1,000 Units (based on offering side evaluation of underlying Securities)... $ 439.56
Redemption Price Per 1,000 Units (based on bid side evaluation of underlying Securities)****.............. $ 437.19
Calculation of Estimated Net Annual Interest Income Per 1,000 Units Received in Cash by the Fund
Gross annual income per 1,000 units................................................................. $ 0.45
Less estimated annual expenses per 1,000 units...................................................... 0.45
--------------
Net annual income per 1,000 Units................................................................... $ 0.0
==============
Distributions
Distributions will be made on the first business day following the
maturity of each Security in a Series to holders of record on the
business day immediately preceding the date of such distribution.
Trustee's Annual Fee
Per $1,000 face amount of underlying Securities (see Expenses and Charges).......................... $ 0.35
Evaluator's Fee for Each Evaluation
$.35 for each issue of underlying Securities. Treating separate maturities
as separate issues.
Evaluation Time
3:30 p.m. New York Time
Mandatory Termination Date
January 1, 2040
Minimum Value of Fund
Trust Indenture may be terminated with respect to the Series if the value
is less than 40% of the face amount of Securities.
</TABLE>
- ------------
+ The Indenture was signed and the initial deposit was made as of April 24,
1990.
* The aggregate offering side evaluation of the obligations is determined by
the Evaluator on the basis of current offering prices for the obligations.
** The transaction charge currently applicable to the 2010 Series is 1.75% of
its respective Offering Price per 1,000 Units (1.781% of the net amount
invested in Securities).
*** These figures are computed by dividing the aggregate offering side
evaluation of the underlying Securities in the particular Series (the
price at which they could be purchased directly by the public if they were
available) by the number of Units of the Series outstanding, multiplying
the result times 1,000 and adding the applicable transaction charge as
described in the preceding footnote. These figures assumes a purchase of
1,000 Units. The price of a single Unit, or any multiple thereof, is
calculated by dividing the Offering Price per 1,000 Units above by 1,000,
and multiplying by the number of Units.
**** Figures shown are $10.07 less than the Offering Price per 1,000 Units and
$2.37 less than the Sponsor's Repurchase Price per 1,000 Units.
<PAGE>
<PAGE>
Oppenheimer Zero Coupon U.S. Treasuries Trust
Series A, B, C, D, E and F
- --------------------------------------------------------------------------------
Sponsor
OPPENHEIMER FUNDS DISTRIBUTOR, INC.
Two World Trade Center
New York, New York 10048
Trustee
THE CHASE MANHATTAN BANK, N.A.
770 Broadway
New York, New York 10003
Evaluator
INTERACTIVE DATA
Suite 501
350 South Figueroa
Los Angeles, California 90071
Auditors
DELOITTE & TOUCHE LLP
The Anaconda Tower
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202-3942
