<PAGE>
[GRAPHIC]
Annual Report September 30, 2000
Oppenheimer
Limited-Term Government Fund
[LOGO] OppenheimerFunds(R)
The Right Way to Invest
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REPORT HIGHLIGHTS
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At various points during the reporting period,
we adjusted our allocations among Treasuries and
mortgages in response to changing market
conditions. Because mortgages continued to offer
significantly more yield than Treasuries, we
continued to emphasize these securities in the
portfolio.
CONTENTS
1 President's Letter
3 An Interview with Your Fund's
Managers
6 Fund Performance
12 Financial Statements
30 Independent Auditors' Report
31 Federal Income Tax
Information
32 Officers and Trustees
Average Annual Total Returns*
For the 1-Year Period
Ended 9/30/00
Class A
Without With
Sales Chg. Sales Chg.
-------------------------------
5.33% 1.64%
Class B
Without With
Sales Chg. Sales Chg.
-------------------------------
4.64% 0.68%
Class C
Without With
Sales Chg. Sales Chg.
-------------------------------
4.65% 3.66%
Class Y
-------------------------------
5.71
*See Notes on page 10 for further details.
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PRESIDENT'S LETTER
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[GRAPHIC]
James C. Swain
Chairman
Oppenheimer
Limited-Term
Government Fund
Bridget A. Macaskill
President
Oppenheimer
Limited-Term
Government Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have
1 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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PRESIDENT'S LETTER
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begun to refocus on companies with strong business fundamentals and justifiable
valuations. Investors have also returned to long-neglected, value-oriented
companies.
What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, health-care and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
October 20, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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[GRAPHIC]
Portfolio Management
Team (l to r)
John Kowalik
Leslie Falconio
Gina Palmieri
Q. How did the Fund perform during the past fiscal year?
A. We are pleased to report that, for the one-year period that ended September
30, 2000, Oppenheimer Limited-Term Government Fund delivered an average annual
total return, without sales charges, of 5.33% for Class A shares./1/ We
attribute much of the Fund's solid performance during the past year to our
active management of the portfolio's allocations among Treasury and non-Treasury
securities in response to market conditions over the past 12 months.
What key events characterized the bond market over the reporting period?
The most significant event in the fixed income markets during the past year, in
our opinion, was the Federal budget surplus. This has enabled the Treasury
Department to buy back a sizable portion of its long-term debt, namely, 30-year
Treasury bonds. In addition, the Treasury cut the number of its annual auctions
of these securities from four to two. Overall, these actions are helping to
reduce the amount of the federal government's outstanding debt. The markets
reacted to this decrease in the supply of longer Treasuries and, as a result,
30-year Treasuries rallied. The Treasury's decisions, coupled with the Federal
Reserve's (the Fed's) numerous interest rate hikes, contributed to a notable
occurrence: an inversion of the Treasury yield curve. This is an unusual
situation in which short- and intermediate-term Treasuries yield more than
long-term Treasuries.
Another key factor that we believe had an effect on the Fund was the
current wide yield in spreads, or difference, between Treasury and non-Treasury
securities. Because Oppenheimer Limited-Term Government Fund continues to invest
primarily in both Treasury and non-Treasury securities, we believe these were
the most relevant factors affecting performance during the reporting period.
1. See page 10 for further details.
3 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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Average Annual Total Returns
For the Periods Ended 9/30/00 /2/
Class A
1-Year 5-Year 10-Year
--------------------------
1.64% 5.03% 6.55%
Class B
Since
1-Year 5-Year Inception
--------------------------
0.68% 4.83% 4.83%
Class C
Since
1-Year 5-Year Inception
--------------------------
3.66% 4.99% 5.38%
Class Y
Since
1-Year 5-Year Inception
--------------------------
5.71% N/A 5.30%
--------------------------
Standardized Yields/3/
For the 30-Days Ended 9/30/00
Class A 5.82%
--------------------------
Class B 5.27%
--------------------------
Class C 5.27%
--------------------------
Class Y 6.27%
How did you manage the portfolio in light of these conditions?
In response to these market events, we continually adjusted the portfolio's
allocations to both Treasuries and non-Treasury "spread products," such as
mortgage-backed securities.
This is consistent with our strategy of appropriately adjusting our mix of
Treasury and mortgage-backed securities as the market changes. In the fourth
quarter of 1999, for example, we increased our position in mortgage-backed
securities, which generally provide a considerable yield advantage over
Treasuries without substantial volatility. Traditionally, this asset class has
generally contributed positively to the Fund's performance.
We maintained this position until the beginning of this year, when it became
evident that the government surplus and Treasury buybacks were significantly
affecting longer term Treasury bonds. At that point, we departed from our
typical target mix of 55% mortgages and 45% Treasuries, and began to cut back on
spread products. This allowed us to purchase more Treasuries, which had not yet
begun to rally. In June, we became more confident about a soft landing for the
economy and moved slowly back to our traditional allocation, maintaining a
neutral emphasis on mortgages.
What other strategic decisions did you make during the remainder of the fiscal
year?
Although the economy is still growing at a healthy pace, there presently
are indications of some slowing. Accordingly, we took advantage of the
relatively quiet markets to reposition the Fund's exposure to the intermediate
part of the yield curve, toward the end of the reporting period. Securities in
this part of the yield curve will generally perform better than longer maturity
issues in weaker economic climates.
2. See page 10 for further details.
3. Standardized yield is based on net investment income for the 30-day period
ended September 30, 2000. Falling share prices will tend to artificially raise
yields.
4 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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Credit Allocation/4/
[PIE CHART]
. Gov't Agency 48.5%
. Treasury 44.1
. AAA 0.8
. Other 6.6
What is your outlook for the months ahead?
For the economy at large, we do not expect the Fed to implement many more--if
any--increases in short-term interest rates. If we do see another rate hike, we
might react by slightly extending the average portfolio maturity, or perhaps by
increasing our exposure to spread product--namely, mortgage-backed issues. Once
the Fed is finished raising rates, we expect the Treasury yield curve to steepen
once again. We do expect a soft landing for the economy this year, particularly
since inflation seems to remain in check while economic growth seems to running
at a healthy, yet moderate, pace. Based on this outlook, we continue to favor
mortgage-related securities, such as collateralized mortgage obligations (CMOs).
We will likely continue to maintain a larger than usual allocation to these
non-Treasury securities, and will seek opportunities to add yield when
appropriate. This disciplined strategy, we believe, is what helps make
Oppenheimer Limited-Term Government Fund part of The Right Way to Invest.
Top Five Holdings by Issuer/4/
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U.S. Treasury 45.3%
-----------------------------------------------------------------------
Federal National Mortgage Assn. 25.1
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Federal Home Loan Mortgage Corp. 16.7
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Repurchase Agreement 6.6
-----------------------------------------------------------------------
Government National Mortgage Assn. 6.3
4. Portfolio data is subject to change. Percentages are as of September 30,
2000, and is subject to change, and is dollar-weighted based on total market
value of investments. The Fund may invest in securities of any maturity,
including those issued by federally chartered mortgage companies whose interest
and principal repayments are not guaranteed by the U.S. Government. U.S.
Treasury securities are not rated but are deemed to have the highest rating
equivalency.
5 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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FUND PERFORMANCE
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How Has the Fund Performed?
Below is a discussion by OppenheimerFunds, Inc. of the Fund's performance during
its fiscal year ended September 30, 2000, followed by a graphical comparison of
the Fund's performance to an appropriate broad-based market index and a sector
index.
Management's discussion of performance. During the first few months of the
fiscal year that ended September 30, 2000, Oppenheimer Limited-Term Government
emphasized mortgage-related securities, primarily to take advantage of the
attractive yields these issues offered over Treasury securities. However, in
response to key market events that directly affected the fixed income markets,
the portfolio management team actively adjusted the portfolio's allocations at
various times throughout the rest of the fiscal year. The Federal Reserve (the
Fed) continued to raise short-term interest rates, and longer term Treasury
bonds decreased in supply and consequently appreciated in price. To address
these events, the management team began to reduce the portfolio's positions in
non-Treasury securities and to purchase long-term Treasuries. This decision
benefited the Fund's performance, because long-term Treasuries rallied through
the first half of 2000. The Fed began to slacken its series of interest rate
hikes by June and July, as it seemed to have achieved its objective of keeping
inflation low. In response, the portfolio's management positioned the portfolio
in anticipation of an expected soft landing for the economy. Mortgage-related
securities, particularly collateralized mortgage obligations, provided the Fund
with the bulk of its good performance for the fiscal year. The management team
expects to continue to emphasize these non-Treasury securities, due to the
favorable yield advantage they continue to offer over Treasuries. The Fund's
portfolio holdings, allocations and strategies are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2000. In the case of Class A shares, performance
is
6 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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measured over a 10-year period. In the case of Class B shares, performance is
measured from inception of the Class on May 3, 1993. In the case of Class C
shares, performance is measured from inception of the Class on February 1, 1995.
In the case of Class Y shares, performance is measured from the inception of the
Class on January 26, 1998. The Fund's performance reflects the deduction of the
maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B and Class C shares, and reinvestments of all
dividends and capital gains distributions.
The Fund's performance is compared to the performance of Lehman Brothers
U.S. Government Bond Index and the Lehman Brothers 1-3 Year Government Bond
Index. The Lehman Brothers U.S. Government Bond Index is a broad-based unmanaged
index of U.S. Treasury issues, publicly issued debt of U.S. Government agencies
and quasi-public corporations and corporate debt guaranteed by the U.S.
Government. This index is widely used to measure the performance of the U.S.
Government securities market. The Lehman Brothers 1-3 Year Government Bond Index
is an unmanaged sector index of U.S. Treasury issues, publicly issued debt of
U.S. Government agencies and quasi-public corporations and corporate debt
guaranteed by the U.S. Government with maturities of one to three years. This
secondary index comparison is included to reflect the adoption by the Fund,
effective May 1, 1994, of the investment policy that the Fund will, under normal
circumstances, seek to maintain a dollar-weighted average portfolio effective
duration of not more than three years.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities in
the indices.
7 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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FUND PERFORMANCE
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Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[LINE GRAPH]
Oppenheimer
Limited-Term Lehman Brothers Lehman Brothers
Government Fund U.S. Government 1-3 Year Government
(Class A) Bond Index Bond
--------- ---------- ----
9/30/90 9,650 10,000 10,000
12/31/90 10,111 10,549 10,329
3/31/91 10,375 10,778 10,564
6/30/91 10,547 10,923 10,768
9/30/91 11,068 11,546 11,126
12/31/91 11,686 12,165 11,534
3/31/92 11,432 11,952 11,550
6/30/92 11,892 12,425 11,881
9/30/92 12,161 13,039 12,229
12/31/92 12,202 13,044 12,255
3/31/93 12,546 13,634 12,520
6/30/93 12,872 14,028 12,659
9/30/93 13,086 14,484 12,833
12/31/93 13,154 14,434 12,914
3/31/94 13,197 14,000 12,851
6/30/94 13,091 13,840 12,852
9/30/94 13,183 13,899 12,980
12/31/94 13,217 13,947 12,981
3/31/95 13,712 14,604 13,412
6/30/95 13,998 15,509 13,837
9/30/95 14,242 15,784 14,043
12/31/95 14,595 16,505 14,388
3/31/96 14,640 16,132 14,443
6/30/96 14,759 16,209 14,595
9/30/96 15,030 16,482 14,839
12/31/96 15,308 16,963 15,119
3/31/97 15,456 16,825 15,216
6/30/97 15,851 17,408 15,554
9/30/97 16,176 17,992 15,859
12/31/97 16,474 18,589 16,125
3/31/98 16,694 18,869 16,356
6/30/98 16,913 19,367 16,608
9/30/98 17,421 20,438 17,116
12/31/98 17,607 20,421 17,248
3/31/99 17,716 20,129 17,353
6/30/99 17,739 19,957 17,446
9/30/99 17,906 20,090 17,663
12/31/99 18,004 19,964 17,761
3/31/00 18,191 20,633 17,985
6/30/00 18,476 20,956 18,293
9/30/00 18,859 21,533 18,696
Average Annual Total Return of Class A Shares of the Fund at 9/30/00 /1/
1-Year 1.64% 5-Year 5.03% 10-Year 6.55%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[LINE GRAPH]
Oppenheimer
Limited-Term Lehman Brothers Lehman Brothers
Government Fund U.S. Government 1-3 Year Government
(Class B) Bond Index Bond
--------- ---------- ----
5/3/93 10,000 10,000 10,000
6/30/93 10,131 10,211 10,050
9/30/93 10,282 10,542 10,188
12/31/93 10,315 10,507 10,253
3/31/94 10,327 10,191 10,203
6/30/94 10,221 10,074 10,203
9/30/94 10,265 10,117 10,305
12/31/94 10,275 10,152 10,306
3/31/95 10,630 10,630 10,648
6/30/95 10,824 11,289 10,985
9/30/95 11,002 11,489 11,149
12/31/95 11,253 12,014 11,423
3/31/96 11,267 11,743 11,466
6/30/96 11,337 11,798 11,587
9/30/96 11,523 11,997 11,780
12/31/96 11,714 12,347 12,003
3/31/97 11,806 12,247 12,080
6/30/97 12,085 12,671 12,348
9/30/97 12,310 13,096 12,591
12/31/97 12,514 13,531 12,802
3/31/98 12,658 13,735 12,985
6/30/98 12,800 14,097 13,186
9/30/98 13,159 14,876 13,589
12/31/98 13,275 14,864 13,693
3/31/99 13,332 14,652 13,777
6/30/99 13,341 14,527 13,851
9/30/99 13,466 14,623 14,023
12/31/99 13,540 14,532 14,100
3/31/00 13,680 15,018 14,279
6/30/00 13,895 15,254 14,523
9/30/00 14,183 15,674 14,843
Average Annual Total Return of Class B Shares of the Fund at 9/30/00 /1/
1-Year 0.68% 5-Year 4.83% Life 4.83%
1. See page 10 for further details.
8 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[LINE GRAPH]
Oppenheimer
Limited-Term Lehman Brothers Lehman Brothers
Government U.S. Government 1-3 Year Government
Fund (Class C) Bond Index Bond
-------------- ---------- ----
2/1/95 10,000 10,000 10,000
3/31/95 10,197 10,279 10,193
6/30/95 10,389 10,917 10,516
9/30/95 10,547 11,110 10,673
12/31/95 10,786 11,618 10,935
3/31/96 10,798 11,355 10,977
6/30/96 10,865 11,409 11,092
9/30/96 11,044 11,601 11,277
12/31/96 11,216 11,940 11,491
3/31/97 11,315 11,843 11,565
6/30/97 11,583 12,253 11,821
9/30/97 11,798 12,664 12,053
12/31/97 11,983 13,085 12,255
3/31/98 12,121 13,282 12,431
6/30/98 12,257 13,632 12,623
9/30/98 12,601 14,386 13,009
12/31/98 12,724 14,374 13,109
3/31/99 12,767 14,169 13,188
6/30/99 12,760 14,048 13,259
9/30/99 12,855 14,141 13,424
12/31/99 12,902 14,053 13,498
3/31/2000 13,011 14,523 13,669
6/30/2000 13,190 14,751 13,903
9/30/2000 13,453 15,157 14,209
Average Annual Total Return of Class C Shares of the Fund at 9/30/00 /1/
1-Year 3.66% 5-Year 4.99% Life 5.38%
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[LINE GRAPH]
Oppenheimer
Limited-Term Lehman Brothers Lehman Brothers
Government Fund U.S. Government 1-3 Year Government
(Class Y) Bond Index Bond
--------- ---------- ----
1/26/98 10,000 10,000 10,000
3/31/98 10,075 10,001 10,048
6/30/98 10,215 10,265 10,202
9/30/98 10,530 10,832 10,515
12/31/98 10,651 10,823 10,595
3/31/99 10,728 10,669 10,660
6/30/99 10,752 10,578 10,717
9/30/99 10,862 10,648 10,850
12/31/99 10,932 10,581 10,910
3/31/2000 11,056 10,936 11,048
6/30/2000 11,240 11,107 11,237
9/30/2000 11,482 11,413 11,485
Average Annual Total Return of Class Y Shares of the Fund at 9/30/00 /1/
1-Year 5.71% Life 5.30%
The performance information for both indices in the graphs begins on 9/30/90 for
Class A, 4/30/93 for Class B, 1/31/95 for Class C and 1/31/98 for Class Y.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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NOTES
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In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's returns may fluctuate and current returns may be
less than the results shown as of 9/30/00. For quarterly updates on the Fund's
performance, please contact your financial advisor, call us at 1.800.525.7048 or
visit our website at www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 3/10/86. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 3.50%. The
Fund's maximum sales charge for Class A shares was lower prior to 2/23/94, so
actual performance may have been higher.
Class B shares of the Fund were first publicly offered on 5/3/93. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 4% (1-year) and 1% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "life-of-class" return for Class B
uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 2/1/95. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 1/26/98. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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Financials
11 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
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STATEMENT OF INVESTMENTS September 30, 2000
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
===========================================================================================================================
Mortgage-Backed Obligations--49.6%
---------------------------------------------------------------------------------------------------------------------------
Government Agency--49.6%
---------------------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/Sponsored--42.7%
Federal Home Loan Mortgage Corp., Collateralized Mtg. Obligations,
Gtd. Multiclass Mtg. Participation Certificates:
<S> <C> <C>
8%, 10/15/30/1/ $ 15,000,000 $ 15,215,700
12%, 6/1/15 576,137 635,342
Series 151, Cl. F, 9%, 5/15/21 1,119,008 1,167,607
Series 1451, Cl. G, 7%, 9/15/06 1,032,946 1,031,325
Series 1541, Cl. H, 7%, 10/15/22 6,500,000 6,467,500
Series 1561, Cl. H, 6.50%, 5/15/08 10,000,000 9,896,800
Series 1585, Cl. J, 6.50%, 10/15/22 12,500,000 12,312,500
Series 1625, Cl. G, 5.75%, 1/15/08 5,000,000 4,932,800
Series 1673, Cl. H, 6%, 11/15/22 5,000,000 4,773,400
Series 1702-A, Cl. PD, 6.50%, 4/15/22 6,250,000 6,162,062
Series 1722, Cl. PJ, 6.50%, 7/15/23 7,000,000 6,726,510
Series 2132, Cl. GA, 6.15%, 2/15/27 3,434,542 3,303,584
Series 2198, Cl. PG, 7%, 12/15/28 5,000,000 4,875,000
Series 2228, Cl. PQ, 7.50%, 8/15/25 8,579,000 8,737,111
Series 2257, Cl. B, 7%, 9/15/30 5,200,000 5,039,125
------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Multiclass Mtg.
Participation Certificates:
9.25%, 11/1/08 210,318 214,691
10%, 12/25/10-8/1/21 3,673,352 3,894,932
11.50%, 6/1/20-2/1/16 977,893 1,072,303
11.75%, 1/1/16-4/1/19 887,922 975,298
12.50%, 7/1/19 1,099,038 1,229,120
13%, 8/1/15 1,399,993 1,581,544
------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg.
Investment Conduit Pass-Through Certificates, Series 2250,
Cl. A, 7%, 12/15/27 5,966,470 5,895,589
------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 164, Cl. A, 7.35%, 3/1/24/2 9,079,708 2,908,344
Series 192, Cl. IO, 8.37%, 2/1/28/2 32,807,559 9,893,530
Series 194, Cl. IO, 10.09%, 4/1/28/2 19,964,141 6,160,809
Series 197, Cl. IO, 9.35%, 4/1/28/2 31,175,515 9,571,857
Series 199, Cl. IO, 21.69%, 8/1/28/2 42,080,442 13,334,240
Series 1991, Cl. PJ, 10.88%, 9/15/27/2 5,542,653 2,371,216
Series 202, Cl. IO, 11.57%, 4/1/29/2 20,260,095 6,464,237
Series 203, Cl. IO, 9.93%, 6/15/29/2 23,212,138 7,558,453
Series 2030, Cl. PE, 10.59%, 2/15/28/2 2,000,000 733,750
Series 2052, Cl. IB, 10.68%, 4/15/28/2 4,000,000 2,001,250
Series 206, Cl. IO, 10.49%, 12/15/29/2 4,803,228 1,525,775
Series 2197, Cl. PL, 11.66%, 6/15/24/2 3,000,000 545,625
Series 2220, Cl. PI, 14.28%, 1/15/26/2 4,724,470 1,029,049
------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.--Government National
Mortgage Assn., Gtd. Multiclass Mtg. Participation Certificates,
Series 28, Cl. PG, 6.875%, 2/25/23 5,500,000 5,348,750
</TABLE>
12 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FHLMC/FNMA/Sponsored Continued
Federal National Mortgage Assn.:
6.50%, 10/25/13/1/ $ 32,900,000 $ 32,252,199
6.50%, 1/1/29-5/1/29 52,034,691 49,974,638
7%, 10/25/27/1/ 65,000,000 63,659,700
7%, 7/1/13-4/1/30 58,119,106 57,109,342
7.50%, 10/1/29/1/ 25,000,000 24,937,500
7.50%, 9/1/29-1/1/30 21,563,786 21,520,164
9%, 8/1/19 204,703 211,909
9.50%, 11/1/21 149,403 155,092
10.50%, 12/1/14 744,568 801,225
11%, 11/1/15-7/20/19 9,726,116 10,614,524
11.25%, 6/1/14-2/15/16 1,409,862 1,523,187
11.50%, 10/25/29 1,487,897 1,608,789
11.75%, 7/1/11-10/1/14 113,466 124,609
12%, 1/1/16-4/15/19 6,306,947 7,010,576
12.50%, 8/1/15 410,307 469,031
13%, 8/1/10-8/1/26 2,527,912 2,869,604
-------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates:
Trust 1992-34, Cl. G, 8%, 3/25/22 2,940,000 3,019,909
Trust 1994-27, Cl. PH, 6.50%, 9/25/22 4,000,000 3,933,720
-------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates:
8%, 1/1/23 102,874 104,804
12.50%, 12/1/15 1,008,328 1,133,734
Trust 1991-169, Cl. PK, 8%, 10/25/21 476,118 485,046
Trust 1994-56, Cl. H, 6%, 7/25/22 6,000,000 5,782,500
-------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped
Mtg.-Backed Security:
Trust 294, Cl. 2, 9.46%, 2/1/28/2/ 3,856,991 1,168,548
Trust 302, Cl. 2, 9.18%, 6/2/29/2/ 48,833,159 15,565,570
Trust G93-15, Cl. JA, 10.67%, 4/25/23/2/ 2,617,128 701,705
-------------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Stripped Mtg.-Backed Security,
Trust G, Cl. 2, 11.50%, 3/1/09 968,848 1,066,334
------------------------
483,390,687
-------------------------------------------------------------------------------------------------------------------------------
GNMA/Guaranteed--6.9%
Government National Mortgage Assn.:
6.50%, 1/15/24-2/20/29 19,104,948 18,342,589
7%, 1/15/28-8/15/28 7,444,659 7,335,675
7.50%, 1/15/28-9/15/28 22,135,321 22,220,487
8%, 9/15/07-10/15/28 7,766,085 7,908,844
8.50%, 8/15/17-9/15/21 17,980,812 18,620,123
9.50%, 9/15/17 53,836 56,105
10.50%, 2/15/16-7/15/21 995,318 1,079,240
11%, 11/15/00-10/20/19 1,853,901 1,993,875
11.50%, 1/15/13-5/15/13 198,031 207,375
13%, 2/15/11-9/15/14 26,867 30,523
------------------------
77,794,836
------------------------
Total Mortgage-Backed Obligations (Cost $559,659,121) 561,185,523
</TABLE>
13 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
===========================================================================================================================
<S> <C> <C>
U.S. Government Obligations--51.7%
Federal Home Loan Bank, Unsec. Nts., Series 110, 4.87%, 1/22/02 $ 30,000,000 $ 29,413,170
---------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
6.25%, 5/15/30 12,220,000 12,850,100
6.75%, 8/15/26 4,100,000 4,461,312
8.75%, 5/15/20-8/15/20 9,100,000 11,807,127
8.875%, 2/15/19 7,235,000 9,405,500
11.25%, 2/15/15 1,450,000 2,155,516
STRIPS, 6.53%, 11/15/183 29,650,000 9,841,784
---------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.50%, 5/31/03 50,000,000 49,453,150
5.625%, 2/15/06-5/15/08 56,400,000 55,452,500
5.75%, 4/30/03-8/15/10 90,610,000 90,158,277
5.875%, 11/15/04 17,500,000 17,489,063
6.125%, 12/31/01 115,600,000 115,491,683
6.375%, 6/30/02 2,400,000 2,412,751
6.50%, 8/31/01 43,000,000 43,094,084
6.625%, 5/31/02 15,900,000 16,039,125
6.75%, 5/15/05 10,000,000 10,362,500
7%, 7/15/06 16,500,000 17,355,938
7.50%, 2/15/054 34,500,000 36,613,125
7.875%, 11/15/044 37,550,000 40,190,253
8.50%, 11/15/00 7,800,000 7,819,500
STRIPS, 6.88%, 5/15/093 6,800,000 4,071,500
---------------------
Total U.S. Government Obligations (Cost $585,070,242) 585,937,958
===========================================================================================================================
<CAPTION>
Date Strike Contracts
===========================================================================================================================
Options Purchased--0.0%
U.S. Treasury Nts. Futures, 10 yr.,
<S> <C> <C> <C> <C>
12/19/00 Call (Cost $98,119) 10/20/00 102% 583 36,438
<CAPTION>
Principal
Amount
===========================================================================================================================
<S> <C> <C>
Repurchase Agreements--7.1%
Repurchase agreement with Banc One Capital Markets, Inc., 6.45%,
dated 9/29/00, to be repurchased at $80,518,255 on 10/2/00,
collateralized by U.S. Treasury Nts., 5.625%-6.875%, 5/15/01-2/15/07,
with a value of $82,127,997 (Cost $80,475,000) $ 80,475,000 80,475,000
---------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,225,302,482) 108.4% 1,227,634,919
---------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (8.4) (95,198,680)
-------------------------------------------
Net Assets 100.0% $ 1,132,436,239
===========================================
</TABLE>
14 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
Footnotes to Statement of Investments
1. When-issued security to be delivered and settled after September 30, 2000.
2. 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. These securities amount to $81,533,958 or 7.20% of the Fund's net assets
as of September 30, 2000.
3. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
4. Securities with an aggregate market value of $23,907,305 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================================================
Assets
<S> <C>
Investments, at value (cost $1,225,302,482)--see accompanying statement $ 1,227,634,919
--------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold (including $91,602,052 sold on a when-issued basis) 118,407,099
Interest and principal paydowns 13,292,877
Shares of beneficial interest sold 6,889,451
Other 52,618
-------------------------
Total assets 1,366,276,964
==========================================================================================================================
Liabilities
Bank overdraft 478,566
--------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $219,185,197 purchased on a when-issued basis) 228,340,427
Shares of beneficial interest redeemed 2,527,541
Dividends 1,242,846
Distribution and service plan fees 695,326
Daily variation on futures contract 217,896
Transfer and shareholder servicing agent fees 99,090
Trustees' compensation 10,617
Other 228,416
-------------------------
Total liabilities 233,840,725
==========================================================================================================================
Net Assets $ 1,132,436,239
=========================
==========================================================================================================================
Composition of Net Assets
Paid-in capital $ 1,189,165,969
--------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 2,483,465
--------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (60,930,184)
--------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,716,989
-------------------------
Net Assets $ 1,132,436,239
=========================
==========================================================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$627,494,855 and 63,160,863 shares of beneficial interest outstanding) $ 9.93
Maximum offering price per share (net asset value plus sales charge of
3.50% of offering price) $ 10.29
--------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of
$329,876,559 and 33,210,183 shares of beneficial interest outstanding) $ 9.93
--------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$168,665,300 and 17,004,672 shares of beneficial interest outstanding) $ 9.92
--------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $6,399,525 and 644,299 shares of beneficial interest outstanding) $ 9.93
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
===============================================================================================================
Investment Income
<S> <C>
Interest $ 89,061,306
===============================================================================================================
Expenses
Management fees 5,131,589
---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,611,727
Class B 3,604,644
Class C 1,847,004
---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 843,055
Class B 450,649
Class C 230,954
Class Y 1,928
---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 79,431
---------------------------------------------------------------------------------------------------------------
Trustees' compensation 20,585
---------------------------------------------------------------------------------------------------------------
Accounting service fees 12,000
---------------------------------------------------------------------------------------------------------------
Other 473,997
------------------
Total expenses 14,307,563
Less expenses paid indirectly (57,076)
------------------
Net expenses 14,250,487
===============================================================================================================
Net Investment Income 74,810,819
===============================================================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (34,278,909)
Closing of futures contracts (4,057,708)
------------------
Net realized loss (38,336,617)
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 21,608,634
------------------
Net realized and unrealized loss (16,727,983)
===============================================================================================================
Net Increase in Net Assets Resulting from Operations $ 58,082,836
==================
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended September 30, 2000 1999
=======================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 74,810,819 $ 72,872,844
-----------------------------------------------------------------------------------------------------------------------
Net realized loss (38,336,617) (9,965,241)
-----------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 21,608,634 (33,958,973)
-------------------------------------
Net increase in net assets resulting from operations 58,082,836 28,948,630
=======================================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (41,661,682) (42,378,009)
Class B (19,543,002) (18,660,011)
Class C (10,037,864) (9,960,199)
Class Y (274,588) (100)
=======================================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (99,636,221) 123,299,873
Class B (65,784,406) 134,345,727
Class C (39,825,740) 73,497,654
Class Y 6,333,275 68,029
=======================================================================================================================
Net Assets
Total increase (decrease) (212,347,392) 289,161,594
-----------------------------------------------------------------------------------------------------------------------
Beginning of period 1,344,783,631 1,055,622,037
-------------------------------------
End of period (including undistributed net investment
income of $2,483,465 and $14,065, respectively) $1,132,436,239 $1,344,783,631
=====================================
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Year Ended September 30, 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
============================================================================================================================
Per Share Operating Data
Net asset value, beginning of period $ 10.03 $ 10.37 $ 10.30 $ 10.26 $ 10.44
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .64 .63 .67 .73 .75
Net realized and unrealized gain (loss) (.13) (.35) .10 .03 (.19)
---------------------------------------------------------------------
Total income from investment operations .51 .28 .77 .76 .56
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) (.62) (.68) (.71) (.71)
Dividends in excess of net investment income -- -- (.02) -- --
Tax return of capital distribution -- -- -- (.01) (.03)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.61) (.62) (.70) (.72) (.74)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93 $ 10.03 $ 10.37 $ 10.30 $ 10.26
============================================================================================================================
Total Return, at Net Asset Value/1/ 5.33% 2.78% 7.70% 7.62% 5.54%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 627,495 $ 734,407 $ 634,677 $ 524,508 $ 436,889
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 673,323 $ 696,607 $ 584,171 $ 443,514 $ 393,727
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/2/
Net investment income 6.46% 6.23% 6.52% 7.13% 7.22%
Expenses 0.83% 0.84% 0.82%/3/ 0.87%/3/ 0.87%/3/
-----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 121% 141% 161% 68% 71%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Year Ended September 30, 2000 1999 1998 1997 1996
============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 10.02 $ 10.37 $ 10.30 $ 10.26 $ 10.44
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .57 .56 .60 .66 .67
Net realized and unrealized gain (loss) (.12) (.37) .09 .02 (.19)
----------------------------------------------------------------------
Total income from investment operations .45 .19 .69 .68 .48
----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.54) (.60) (.63) (.63)
Dividends in excess of net investment income -- -- (.02) -- --
Tax return of capital distribution -- -- -- (.01) (.03)
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.54) (.54) (.62) (.64) (.66)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93 $ 10.02 $ 10.37 $ 10.30 $ 10.26
======================================================================
============================================================================================================================
Total Return, at Net Asset Value/1/ 4.64% 1.91% 6.90% 6.82% 4.74%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 329,877 $ 399,692 $ 277,381 $ 183,476 $ 160,572
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 360,003 $ 351,099 $ 210,362 $ 171,496 $ 147,017
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/2/
Net investment income 5.70% 5.48% 5.76% 6.39% 6.46%
Expenses 1.59% 1.59% 1.58%/3/ 1.62%/3/ 1.62%/3/
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 121% 141% 161% 68% 71%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
<TABLE>
<CAPTION>
Class C Year Ended September 30, 2000 1999 19981 1997 1996
============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 10.01 $ 10.35 $ 10.29 $ 10.25 $ 10.43
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .57 .56 .59 .66 .66
Net realized and unrealized gain (loss) (.12) (.36) .09 .02 (.18)
----------------------------------------------------------------------
Total income from investment operations .45 .20 .68 .68 .48
----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.54) (.61) (.63) (.63)
Dividends in excess of net investment income -- -- (.01) -- --
Tax return of capital distribution -- -- -- (.01) (.03)
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.54) (.54) (.62) (.64) (.66)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.92 $ 10.01 $ 10.35 $ 10.29 $ 10.25
======================================================================
============================================================================================================================
Total Return, at Net Asset Value/2/ 4.65% 2.01% 6.81% 6.83% 4.71%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 168,665 $ 210,616 $ 143,563 $ 73,559 $ 45,356
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 184,442 $ 187,226 $ 100,604 $ 57,506 $ 32,349
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 5.70% 5.47% 5.73% 6.35% 6.34%
Expenses 1.59% 1.59% 1.57%/4/ 1.62%/4/ 1.64%/4/
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 121% 141% 161% 68% 71%
</TABLE>
1. Per share amounts calculated on the average shares outstanding during the
period.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class Y Year Ended September 30, 2000 1999 1998/1/
=======================================================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 10.03 $ 10.37 $ 10.33
-----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .68 .66 .47
Net realized and unrealized gain (loss) (.13) (.34) .06
--------------------------------------------
Total income from investment operations .55 .32 .53
-----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.65) (.66) (.47)
Dividends in excess of net investment income -- -- (.02)
Tax return of capital distribution -- -- --
--------------------------------------------
Total dividends and/or distributions
to shareholders (.65) (.66) (.49)
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.93 $ 10.03 $ 10.37
============================================
=======================================================================================================================
Total Return, at Net Asset Value/2/ 5.71% 3.15% 5.30%
=======================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 6,400 $ 69 $ 1
-----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 4,178 $ 2 $ 1
-----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 6.78% 6.75% 6.82%
Expenses 0.51% 0.60% 0.43%/4/
-----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 121% 141% 161%
</TABLE>
1. For the period from January 26, 1998 (inception of offering) to September 30,
1998.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Limited-Term Government Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek high current return and
safety of principal. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares
are sold at their offering price, which is normally net asset value plus a
front-end sales charge. Class B and Class C shares are sold without a front-end
sales charge but may be subject to a contingent deferred sales charge (CDSC).
Class Y shares are sold to certain institutional investors without either a
front-end sales charge or a CDSC. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its own
expenses directly attributable to that class and exclusive voting rights with
respect to matters affecting that class. Classes A, B and C have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. Class B shares will automatically convert to Class A shares six years
after the date of purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
--------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Securities Purchased on a When-Issued Basis. Delivery and payment for securities
that have been purchased by the Fund on a when-issued basis can take place a
month or more after the trade date. Normally the settlement date occurs within
six months after the trade date; however, the Fund may, from time to time,
purchase securities whose settlement date extends beyond six months and possibly
as long as two years or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
segregated assets with a market value equal to or greater than the amount of its
purchase commitments. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of the Fund's net asset value to
the extent the Fund makes such purchases while remaining substantially fully
invested. As of September 30, 2000, the Fund had entered into net outstanding
when-issued or forward commitments of $127,583,145.
23 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
In connection with its ability to purchase securities on a when-issued
basis, the Fund 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.
--------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
--------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
--------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
As of September 30, 2000, the Fund had available for federal tax purposes unused
capital loss carryovers as follows:
Expiring
----------------------
2007 $10,940,944
2008 11,073,650
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
24 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal year from net investment income or net realized gains may differ from its
ultimate characterization for federal income tax purposes. Also, due to timing
of dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 2000, amounts have been reclassified to reflect a
decrease in undistributed net investment income of $824,283. Accumulated net
realized loss on investments was decreased by the same amount. Net assets of the
Fund were unaffected by the reclassifications.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Discount on securities purchased is
accreted over the life of the respective securities, in accordance with federal
income tax requirements. Realized gains and losses on investments and options
written and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes. Dividends-in-kind are recognized as income on the ex-dividend date, at
the current market value of the underlying security. Interest on payment-in-kind
debt instruments is accrued as income at the coupon rate and a market adjustment
is made periodically.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
25 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended September 30, 2000 Year Ended September 30, 1999
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 70,936,140 $ 702,318,180 66,430,608 $ 677,416,403
Dividends and/or
distributions reinvested 3,223,777 31,913,471 3,286,062 33,484,949
Redeemed (84,255,468) (833,867,872) (57,682,659) (587,601,479)
--------------------------------------------------------------------------
Net increase (decrease) (10,095,551) $ (99,636,221) 12,034,011 $ 123,299,873
==========================================================================
--------------------------------------------------------------------------------------------------------------------------
Class B
Sold 9,543,723 $ 94,609,502 24,393,651 $ 249,346,429
Dividends and/or
distributions reinvested 1,425,275 14,108,453 1,338,996 13,629,075
Redeemed (17,633,284) (174,502,361) (12,618,209) (128,629,777)
--------------------------------------------------------------------------
Net increase (decrease) (6,664,286) $ (65,784,406) 13,114,438 $ 134,345,727
==========================================================================
--------------------------------------------------------------------------------------------------------------------------
Class C
Sold 7,188,629 $ 71,098,127 15,315,668 $ 156,476,570
Dividends and/or
distributions reinvested 725,299 7,171,108 740,879 7,532,576
Redeemed (11,949,056) (118,094,975) (8,885,658) (90,511,492)
--------------------------------------------------------------------------
Net increase (decrease) (4,035,128) $ (39,825,740) 7,170,889 $ 73,497,654
==========================================================================
--------------------------------------------------------------------------------------------------------------------------
Class Y
Sold 1,038,548 $ 10,289,874 6,771 $ 67,993
Dividends and/or
distributions reinvested -- -- 3 36
Redeemed (401,120) (3,956,599) -- --
--------------------------------------------------------------------------
Net increase 637,428 $ 6,333,275 6,774 $ 68,029
==========================================================================
</TABLE>
================================================================================
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2000, were
$1,468,351,709 and $1,633,899,401, respectively.
As of September 30, 2000, unrealized appreciation (depreciation) based on cost
of securities for federal income tax purposes of $1,227,699,776 was:
Gross unrealized appreciation $ 14,089,370
Gross unrealized depreciation (14,154,227)
---------------
Net unrealized depreciation $ (64,857)
===============
26 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.50% of
the first $100 million of average annual net assets of the Fund, 0.45% of the
next $150 million, 0.425% of the next $250 million and 0.40% of average annual
net assets in excess of $500 million. The Fund's management fee for the year
ended September 30, 2000 was an annualized rate of 0.42%, before any waiver by
the Manager if applicable.
--------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Fund at an
annual fee of $12,000, plus out-of-pocket costs and expenses reasonably
incurred.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer funds.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 2000 $1,550,393 $441,210 $344,902 $1,874,987 $511,748
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 2000 $190,871 $1,171,049 $124,480
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
--------------------------------------------------------------------------------
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the year ended
27 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates Continued
September 30, 2000, payments under the Class A plan totaled $1,611,727 prior to
Manager waiver if applicable, all of which were paid by the Distributor to
recipients, and included $108,622 paid to an affiliate of the Manager. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
--------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30, 2000,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $3,604,644 $2,987,490 $6,908,611 2.09%
Class C Plan 1,847,004 685,003 3,873,792 2.30
============================================================================================================
</TABLE>
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
28 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually buying fixed
income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities. As of September 30, 2000, the Fund had outstanding
futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts September 30, 2000 Depreciation
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
U.S. Treasury Nts. Futures, 5 yr. 12/19/00 555 $55,803,516 $(277,328)
U.S. Treasury Nts. Futures, 10 yr. 12/19/00 156 15,634,125 (12,281)
U.S. Long Bond Futures 12/19/00 462 45,579,188 (338,813)
-------------
$(628,422)
=============
====================================================================================================================
</TABLE>
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended September 30,
2000.
29 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Limited-Term Government
Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Limited-Term Government Fund, including the statement of
investments, as of September 30, 2000, and the related statement of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2000, 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Limited-Term Government Fund as of September 30, 2000, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
October 20, 2000
30 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the year ended September
30, 2000, are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
31 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
--------------------------------------------------------------------------------
=============================================================================
Officers and Trustees James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
William L. Armstrong, Trustee
Robert G. Avis, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Leslie Falconio, Vice President
John S. Kowalik, Vice President
Gina Palmieri, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
=============================================================================
Investment Advisor OppenheimerFunds, Inc.
=============================================================================
Distributor OppenheimerFunds Distributor, Inc.
=============================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
=============================================================================
Custodian of Citibank, N.A.
Portfolio Securities
=============================================================================
Independent Auditors Deloitte & Touche LLP
=============================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
For more complete information about Oppenheimer
Limited-Term Government Fund, please refer to the
Prospectus. To obtain a copy, call your financial
advisor, call OppenheimerFunds Distributor, Inc. at
1.800.525.7048 or visit the OppenheimerFunds
Internet website at www.oppenheimerfunds.com.
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 the
possible loss of the principal amount invested.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
32 OPPENHEIMER LIMITED-TERM GOVERNMENT FUND
<PAGE>
--------------------------------------------------------------------------------
INFORMATION AND SERVICES
--------------------------------------------------------------------------------
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Internet
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P.O. Box 5270, Denver, CO 80217-5270
Ticker Symbols Class A: OPGVX Class B: OGSBX Class C: OLTCX
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