<PAGE>
OPPENHEIMER CASH RESERVES
Semiannual Report June 30, 1995
[PHOTO OF COUPLE AND CHILDREN]
"I want to
know my
money will
be there
when I
need it."
[OPPENHEIMER FUNDS LOGO]
<PAGE>
This Fund is for people who want to earn current
income while maintaining the value of their
initial investment.
HOW YOUR FUND IS MANAGED
Oppenheimer Cash Reserves Fund seeks max-imum current income with stability
of principal while giving you a way to keep a portion of your assets liquid.
The manager of your Fund looks for maximum yield from money market
securities, such as short-term corporate notes, U.S. gov-ernment securities
and repurchase agreements.
The Fund's dividends accrue daily and are paid monthly. And to offer you
stability of principal, the Fund seeks to maintain a constant $1.00 per share
net asset value (NAV).(1)
PERFORMANCE
The Fund's seven-day annualized yield for Class A shares as of 6/30/95 was
4.92% with compounding and 4.80% without compounding. For Class B and C
shares, the seven-day annualized yields were 4.35% and 4.33% with
compounding, and 4.26% and 4.24% without compounding, respectively.(2)
Compounded annualized yield for Class A shares for the 6 months ended
6/30/95 was 5.10%. Without compounding, the annualized yield was 4.98%. For
Class B and C shares, compounded annualized yields for the 6 months ended
6/30/95 were both 4.52%. Without compounding, they were both 4.42%.
OUTLOOK
"Because of our current interest rate outlook, we continue to buy securities
with maturities in the 90-day range. This positioning should help us to
position the Fund's yield within the safety constraints shareholders expect
for the portion of their portfolio they allocate to their money market fund."
Dottie Warmack, Portfolio Manager
June 30, 1995
Past performance is not indicative of future results.
(1) The Fund is neither insured nor guaranteed by the U.S. government, and
there is no assurance that the Fund will maintain a stable $1 share price in
the future.
(2) Compounded yields assume reinvestment of dividends.
2 Oppenheimer Cash Reserves
<PAGE>
[PHOTO OF JAMES C. SWAIN]
James C. Swain
Chairman
Oppenheimer
Cash Reserves
[PHOTO OF JON S. FOSSEL]
Jon S. Fossel
President
Oppenheimer
Cash Reserves
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
We've seen a marked improvement so far this year in both the stock and bond
markets. The single most important factor behind the rally in both markets
was a change in the Federal Reserve Board's monetary policy. Between February
1994 and February 1995, the Fed raised interest rates as a pro-active attempt
to preempt inflation and to prolong the current cycle of economic growth.
These rate increases successfully kept the economy from overheating, as
economic data released throughout the first half of the year suggested that
the Fed had finally achieved its intended effect of slowing the rate of
economic growth.
The economic outlook for moderate growth in a relatively non-inflationary
environment, along with lower interest rates and talk of deficit reduction,
boosted investors' confidence in the stock market. As a result, the Dow Jones
Industrial Average hit record highs repeatedly in the first half of the year.
Bonds across a broad range of asset classes enjoyed exceptional price
appreciation as well, more than making up for last year's difficult bond
market.
Although lower interest rates are generally good news for the economy and
the securities markets, they do not benefit short-term savings vehicles like
money market funds. With a share price designed not to fluctuate, income is
the only variable in money market fund returns--and declining rates limit the
amount of income available from the types of safe, short-term securities in
which money market funds invest.
Yet, in any environment, it's important to have a portion of your money
allocated to stable investments. Money market funds are designed to offer
liquidity, a stable share price, and professional management aimed at
capturing high yields.
Moving forward, we believe the Fed will feel little pressure to increase
interest rates in the near term given the economy's slowdown, and rates on
money market funds will likely remain at current levels. If the Fed sees
later this year that the rate of growth has slowed less than initially
anticipated, it could move to raise rates again, which would boost yields.
Or, if the Fed discovers that the economy has stalled, it could lower rates
to stimulate growth. Therefore, until the full extent of the economic
slowdown is known, questions about the direction of the economy will persist
and money market funds will remain an excellent defensive investment.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, and we
look forward to helping you continue to reach your investment goals in the
future.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
July 24, 1995
3 Oppenheimer Cash Reserves
<PAGE>
Dottie Warmack
Portfolio Manager
Q+A An interview with the Fund's managers.
SO FAR, 1995 HAS BEEN AN EXCELLENT YEAR FOR BOTH THE STOCK AND BOND MARKETS,
FUELED IN PART BY A DECLINE IN INTEREST RATES. WHAT IMPACT HAS THE RECENT
DECLINE HAD ON YOUR PORTFOLIO?
When interest rates decline, the yield on money market funds like this one
generally declines as well. While our yield is down slightly, it is not down
signif-icantly because of some strategic positioning decisions we made in
anticipation of this market environment.
When we began to see rates starting to decline, we lengthened the
portfolio by investing in securities with maturities in the three- to four-
month range in an effort to lock in the higher-than-current rates. These
securities are now beginning to mature, so if rates continue to fall, we
could begin to see the Fund's yield come down further.
Because it looks like the economy has begun to slow, making an increase in
interest rates unlikely in the near future, we've continued to buy
longer-maturity securities in an effort to maintain a high yield under the
circumstances.
WHAT TYPES OF SECURITIES ARE YOU BUYING IN THIS ENVIRONMENT?
The composition of the port-folio hasn't changed significantly as far as
classes of securities are concerned. The majority--roughly 80%--of the
portfolio is still invested in commercial paper.(1)
One area where we have made a change is in Small Business Administration
loans. We've sold off some of our position to realize the profits we have in
these securities. The market drove prices of SBA loan pools up this year
because of their excellent yield and "full faith and credit" status.
DO YOU EXPECT TO SEE ANY CHANGES IN INTEREST RATES IN THE NEAR TERM? IF SO,
IN WHAT DIRECTION?
We don't expect the Federal Reserve to make any move in the near future. As
we move toward 1996, however, we may see that position change. Right now, it
looks as though the Fed has achieved a soft landing, or slowing of the
economy to a more moderate growth rate, which was the goal of last year's
rate increases. If toward the end of the year it appears that the economy has
slowed too far, we'd expect the Fed to ease, cutting rates slightly to
stimulate growth. On the other hand, if inflation begins to pick up, the Fed
could move in the opposite direction. Still, we think the most likely
scenario is that rates will stay in their current trading range for at least
the next several months.
IN VIEW OF THIS BELIEF, WHAT IS YOUR OUTLOOK FOR THE FUND?
As always, safety is our first concern, so we invest only in short-term money
market securities. Because of our current interest rate outlook, we continue
to buy securities with maturities in the 90-day range. This positioning
should help us to protect yield within the safety constraints shareholders
expect for the portion of their portfolio they allocate to their money market
fund.
(1) The Fund's portfolio is subject to change.
4 Oppenheimer Cash Reserves
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
FACE AMORTIZED COST
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS--14.9%
- -----------------------------------------------------------------------------------------------------------------------------
Bank of New York, 5.69%, 7/5/95(1) $ 5,150,000 $ 5,149,177
------------------------------------------------------------------------------------------
FCC National Bank, 5.61%, 7/5/95(1) 3,000,000 2,999,044
------------------------------------------------------------------------------------------
First National Bank of Boston, 6.35%, 7/3/95(1) 5,000,000 5,000,000
------------------------------------------------------------------------------------------
National Westminster Bank, guaranteeing commercial paper of:
National Westminster Bank of Canada, 5.97%, 8/9/95 3,000,000 2,980,598
------------------------------------------------------------------------------------------
Shawmut Bank of Connecticut, N.A., 6.25%, 7/3/95(1) 5,000,000 5,000,000
-----------
Total Direct Bank Obligations (Cost $21,128,819) 21,128,819
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
LETTERS OF CREDIT--3.1%
- -----------------------------------------------------------------------------------------------------------------------------
Sanwa Bank Ltd., guaranteeing commercial paper of:
Orix America, Inc.:
5.97%, 8/15/95(2) 2,500,000 2,481,344
6.05%, 7/28/95(2) 2,000,000 1,990,925
-----------
Total Letters of Credit (Cost $4,472,269) 4,472,269
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES--80.4%
- -----------------------------------------------------------------------------------------------------------------------------
BANKS--8.0%
Barnett Banks, Inc., 6%, 7/13/95 5,000,000 4,990,000
------------------------------------------------------------------------------------------
Chemical Banking Corp., 5.85%, 9/29/95 6,500,000 6,404,938
-----------
11,394,938
- -----------------------------------------------------------------------------------------------------------------------------
BEVERAGES--3.1% Bass Finance (C.I.) Ltd., guaranteed by Bass PLC, 6.18%, 7/6/95 4,425,000 4,421,202
- -----------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS--8.7% CS First Boston Group, Inc.:
5.90%, 10/4/95 3,000,000 2,953,292
5.97%, 7/28/95 3,000,000 2,986,568
------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc.:
5.96%, 7/3/95(1) 5,000,000 5,000,000
6.02%, 7/26/95 1,500,000 1,493,729
-----------
12,433,589
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE--4.2% FINOVA Capital Corp.:
6.07%, 7/28/95 3,000,000 2,986,343
6.08%, 8/9/95 3,000,000 2,980,240
-----------
5,966,583
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--4.6% Beneficial Corp., 5.72%, 7/5/95(1) 4,000,000 4,000,000
------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.97%, 8/21/95 2,500,000 2,478,856
-----------
6,478,856
- -----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--10.9% Associates Corp. of North America, 6.25%, 7/3/95 4,500,000 4,498,438
------------------------------------------------------------------------------------------
General Electric Capital Corp., 6.29%, 7/3/95(1) 6,000,000 5,998,560
------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6.02%, 7/12/95 5,000,000 4,990,803
-----------
15,487,801
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & Allergan, Inc.:
SERVICES--4.2% 5.96%, 8/29/95 3,000,000 2,970,697
5.98%, 8/15/95 3,000,000 2,977,575
-----------
5,948,272
</TABLE>
5 Oppenheimer Cash Reserves
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE AMORTIZED COST
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
LEASING & FACTORING--5.2% International Lease Finance Corp., 5.90%, 9/14/95 $ 5,500,000 $ 5,432,396
------------------------------------------------------------------------------------------
Sanwa Business Credit Corp., 5.91%, 9/15/95 2,000,000 1,975,047
-----------
7,407,443
- -----------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.8% Hanson Finance (UK) PLC, Guaranteed by Hanson PLC:
5.92%, 9/5/95 3,494,000 3,456,078
5.96%, 8/21/95 2,000,000 1,983,113
-----------
5,439,191
- -----------------------------------------------------------------------------------------------------------------------------
SAVINGS & LOANS--3.5% Household Bank FSB, 6%, 8/30/95 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--14.6% CIESCO L.P., 5.95%, 8/11/95 3,000,000 2,979,671
------------------------------------------------------------------------------------------
Cooperative Association of Tractor Dealers, Inc:
5.72%, 12/19/95 2,900,000 2,821,207
5.97%, 8/4/95 2,000,000 1,988,723
------------------------------------------------------------------------------------------
CXC, Inc., 6.02%, 7/14/95(2) 2,000,000 1,995,652
------------------------------------------------------------------------------------------
Madison Funding Corp., 5.82%, 9/14/95 5,000,000 4,939,375
- ---------------------------------------------------------------------------------------------------------------------------------
New Center Asset Trust:
6.01%, 8/2/95 4,000,000 3,978,631
6.02%, 7/24/95 2,000,000 1,992,308
-----------
20,695,567
- -----------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING--4.2% St. Michael Finance Ltd., guaranteed by
Marks & Spencer PLC, 5.95%, 8/14/95 6,000,000 5,956,367
- -----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- NYNEX Corp., 5.57%, 11/2/95 5,000,000 4,904,072
TECHNOLOGY--3.5%
- -----------------------------------------------------------------------------------------------------------------------------
TOYS--1.9% Hasbro, Inc., 5.60%, 12/8/95 2,700,000 2,632,800
-----------
Total Short-Term Notes (Cost $114,166,681) 114,166,681
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--1.7%
- -----------------------------------------------------------------------------------------------------------------------------
Small Business Administration, 7.375%--10.875%, 7/3/95
(Cost $2,425,228)(3) 2,291,054 2,425,228
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT AMORTIZED COST 100.1% 142,192,997
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (180,851)
------ -----------
NET ASSETS 100.0% $142,012,146
------ -----------
------ -----------
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 Fund at the time of purchase. Other securities normally bear interest at the
rates shown.
<FN>
1. Variable rate security. The interest rate, which is based on specific, or an
index of, current market interest rates, is subject to change periodically and
is the effective rate on June 30, 1995.
2. Security purchased in a private placement transaction, without registration
under the Securities Act of 1933 (the Act). The securities are carried at
amortized cost and amount to $6,467,921 or 4.6% of the Fund's net assets.
3. Floating or variable rate obligation maturing in more than one year. The
interest rate, which is based on specific, or an index of, market interest
rates, is subject to change periodically and is the effective rate on June 30,
1995. This instrument may also have a demand feature which allows the recovery
of principal at any time, or at specified intervals not exceeding one year, on
up to 30 days' notice. Maturity date shown represents effective maturity based
on variable rate and, if applicable, demand feature.
See accompanying Notes to Financial Statements.
</TABLE>
6 Oppenheimer Cash Reserves
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at amortized cost--see accompanying statement $ 142,192,997
------------------------------------------------------------------------------------------
Cash 219,328
------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,529,076
Interest and principal paydowns 372,466
------------------------------------------------------------------------------------------
Other 262,624
------------
Total assets 144,576,491
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 2,259,329
Dividends 213,247
Distribution and service plan fees--Note 3 50,610
Transfer and shareholder servicing agent fees 25,296
Other 15,863
------------
Total liabilities 2,564,345
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $142,012,146
------------
------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $141,993,123
------------------------------------------------------------------------------------------
NET ASSETS Accumulated net realized gain from investment transactions 19,023
------------
Net assets $142,012,146
------------
------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value, redemption price and offering price per share
(based on net assets of $102,501,322 and 102,542,087 shares of
beneficial interest outstanding) $1.00
------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $32,863,737 and 32,859,338 shares of
beneficial interest outstanding) $1.00
------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $6,647,087 and 6,646,385 shares of
beneficial interest outstanding) $1.00
See accompanying Notes to Financial Statements.
</TABLE>
7 Oppenheimer Cash Reserves
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $ 4,323,697
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 3 346,673
------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 293,798
------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 3 99,345
Class B--Note 3 131,219
Class C--Note 3 22,890
------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 31,793
Class B 11,992
Class C 2,001
------------------------------------------------------------------------------------------
Shareholder reports 40,473
------------------------------------------------------------------------------------------
Custodian fees and expenses 22,904
------------------------------------------------------------------------------------------
Legal and auditing fees 5,622
------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,214
------------------------------------------------------------------------------------------
Other 12,091
----------
Total expenses 1,022,015
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,301,682
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 18,788
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,320,470
----------
----------
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Cash Reserves
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 3,301,682 $ 3,568,242
------------------------------------------------------------------------------------------
Net realized gain on investments 18,788 56
------------- ------------
Net increase in net assets resulting from operations 3,320,470 3,568,298
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Class A (2,403,372) (2,852,731)
DISTRIBUTIONS TO Class B (764,563) (648,288)
SHAREHOLDERS Class C (133,747) (67,223)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from Class A beneficial
TRANSACTIONS interest transactions--Note 2 3,127,032 28,436,616
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Class B beneficial interest transactions--Note 2 (13,944,502) 46,175,820
------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C beneficial
interest transactions--Note 2 1,042,013 5,603,372
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) (9,756,669) 80,215,864
------------------------------------------------------------------------------------------
Beginning of period 151,768,815 71,552,951
------------- ------------
End of period $142,012,146 $151,768,815
------------- ------------
------------- ------------
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Cash Reserves
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------------
Income from investment operations--
net investment income and net realized
gain on investments .02 .03 .02 .03 .06 .07
------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders (.02) (.03) (.02) (.03) (.06) (.07)
------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 2.50% 3.22% 2.05% 3.07% 5.67% 7.60%
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $102,501 $99,361 $70,924 $89,266 $112,883 $44,293
------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $98,397 $87,908 $76,910 $104,970 $105,352 $32,637
------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 102,542 99,415 70,978 89,320 112,930 44,295
------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.93%(5) 3.25% 1.99% 3.07% 5.13% 7.32%
Expenses, before voluntary
reimbursement by the Manager 1.31%(5) 1.32% 1.55% 1.42% 1.22% 1.29%
Expenses, net of voluntary
reimbursement by the Manager N/A N/A N/A 1.25% 1.15% 1.00%
<FN>
1. For the period from December 1, 1993 (inception of offering) to December 31,
1993.
2. For the period from August 17, 1993 (inception of offering) to December 31,
1993.
3. Less than $.005 per share.
</TABLE>
10 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------- ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 1993(2) (UNAUDITED) 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations--
net investment income and net realized
gain on investments .02 .03 --(3) .02 .02 --(3)
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders (.02) (.03) --(3) (.02) (.02) --(3)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 2.22% 2.54% .56% 2.21% 2.51% .14%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $32,863 $46,803 $628 $6,647 $5,604 $1
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $35,221 $21,262 $454 $6,160 $2,107 $1
- ------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 32,859 46,803 628 6,646 5,604 1
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.38%(5) 3.05% 1.49%(5) 4.38%(5) 3.19% 1.18%(5)
Expenses, before voluntary
reimbursement by the Manager 1.86%(5) 1.89% 2.12%(5) 1.86%(5) 1.90% 2.35%(5)
Expenses, net of voluntary
reimbursement by the Manager N/A N/A N/A N/A N/A N/A
<FN>
4. Total returns are not annualized for periods of less than one full year.
Total returns reflect changes in net investment income only.
5. Annualized.
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Cash Reserves
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Cash Reserves (the Fund) is registered
ACCOUNTING POLICIES under the Investment Company Act of 1940, as
amended, as a diversified, open-end management
investment company. The Fund's investment advisor
is Oppenheimer Management Corporation (the
Manager). The Fund offers Class A, Class B and
Class C shares. Class B and Class C shares may be
subject to a contingent deferred sales charge. All
three classes of shares have identical rights to
earnings, assets and voting privileges, except
that each class has its own distribution and/or
service plan, expenses directly attributable to a
particular class and exclusive voting rights with
respect to matters affecting a single class. Class
B shares will automatically convert to Class A
shares six years after the date of purchase. The
following is a summary of significant accounting
policies consistently followed by the Fund.
--------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are
valued on the basis of amortized cost, which
approximates market value.
--------------------------------------------------
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 AND GAINS AND
LOSSES. Income, expenses (other than those
attributable to a specific class) and 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 to
shareholders. Therefore, no federal income or
excise tax provision is required.
--------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to
declare dividends separately for Class A, Class B
and Class C shares 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, the Fund may withhold dividends
or make distributions of net realized gains.
--------------------------------------------------
OTHER. Investment transactions are accounted for
on the date the investments are purchased or sold
(trade date). Realized gains and losses on
investments are determined on an identified cost
basis, which is the same basis used for federal
income tax purposes.
12 Oppenheimer Cash Reserves
<PAGE>
2. SHARES OF The Fund has authorized an unlimited number
BENEFICIAL INTEREST of no par value shares of beneficial interest.
Transactions in shares of beneficial interest were
as follows:
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1995 YEAR ENDED DECEMBER 31, 1994
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 154,965,093 $154,965,093 299,284,933 $299,284,933
Dividends and distributions reinvested 2,092,946 2,092,946 2,044,191 2,044,191
Redeemed (153,931,007) (153,931,007) (272,892,508) (272,892,508)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net increase 3,127,032 $ 3,127,032 28,436,616 $ 28,436,616
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
-------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 45,040,820 $ 45,040,820 101,781,158 $101,781,158
Dividends and distributions reinvested 572,529 572,529 364,133 364,133
Redeemed (59,557,851) (59,557,851) (55,969,471) (55,969,471)
------------ ------------ ------------ ------------
Net increase (decrease) (13,944,502) $(13,944,502) 46,175,820 $46,175,820
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
-------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 9,728,340 $ 9,728,340 11,029,901 $ 11,029,901
Dividends and distributions reinvested 102,861 102,861 38,394 38,394
Redeemed (8,789,188) (8,789,188) (5,464,923) (5,464,923)
------------ ------------ ------------ ------------
Net increase 1,042,013 $1,042,013 5,603,372 $5,603,372
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
- -------------------------------------------------------------------------------
3. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER TRANSACTIONS accordance with the investment advisory
WITH AFFILIATES agreement with the Fund which provides for a fee
of .50% on the first $250 million of average
annual net assets with a reduction of .025% on
each $250 million thereafter, to .40% on net
assets in excess of $1 billion. The Manager has
agreed to reimburse the Fund if aggregate expenses
(with specified exceptions) exceed the most
stringent state regulatory limit on Fund expenses.
During the period ended June 30, 1995, OFDI
received contingent deferred sales charges of
$205,580 and $10,722 upon redemption of Class B
and Class C shares, respectively, as reimbursement
for sales commissions advanced by OFDI at the time
of sale of such shares.
Oppenheimer Shareholder Services (OSS), a
division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for
other registered investment companies. OSS's total
costs of providing such services are allocated
ratably to these companies.
Under separate approved plans, Class A may
expend up to .20% and Class B and Class C may
expend up to .25% of average class net assets
annually to reimburse OFDI for costs incurred in
connection with the personal service and
maintenance of accounts that hold shares of the
Fund, including amounts paid to brokers, dealers,
banks and other institutions. Currently, these
service fees are set at 0% for both Class B and
Class C. In addition, Class B and Class C shares
are subject to an asset-based sales charge of .75%
of net assets annually, to reimburse OFDI for
sales commissions paid from its own resources at
the time of sale and associated financing costs.
In the event of termination or discontinuance of
the Class B or Class C plan, the Board of Trustees
may allow the Fund to continue payment of the
asset-based sales charge to OFDI for distribution
expenses incurred on Class B or Class C shares
sold prior to termination or discontinuance of the
plan. During the six months ended June 30, 1995,
OFDI retained $131,215 and $22,890 as
reimbursement for Class B and Class C sales
commissions and service fee advances, as well as
financing costs.
13 Oppenheimer Cash Reserves
<PAGE>
OPPENHEIMER CASH RESERVES
- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive
Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
Dorothy G. Warmack, Vice President
George C. Bowen, Vice President, Secretary and
Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
- -------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- -------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- -------------------------------------------------------------------------------
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been
taken from the records of the Fund without
examination by the independent auditors. This is a
copy of a report to shareholders of Oppenheimer
Cash Reserves. This report must be preceded or
accompanied by a Prospectus of Oppenheimer Cash
Reserves. For material information concerning the
Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
14 Oppenheimer Cash Reserves
<PAGE>
OPPENHEIMERFUNDS FAMILY
- ------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're investing
for retirement, your children's education or tax-free
income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected
financial institution with over 30 years of experience in
helping people just like you reach their financial goals.
And you're investing with a leader in global, growth stock
and flexible fixed income investments--with over 2.6
million shareholder accounts and more than $35 billion
under Oppenheimer's management and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares of eligible funds of the same class. And you can
exchange shares easily by mail or by telephone.(1) For more
information on OppenheimerFunds, please contact your
financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on
the back cover. As always, please read the prospectus
carefully before you invest.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
<S> <C> <C>
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund(3) Gold & Special Minerals Fund
- --------------------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- --------------------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund International Bond Fund
Strategic Income & Growth Fund Bond Fund(4)
Strategic Income Fund U.S. Government Trust
Strategic Investment Grade Bond Fund Limited-Term Government Fund
- --------------------------------------------------------------------------------------------
Tax-Exempt Funds New York Tax-Exempt Fund(5) New Jersey Tax-Exempt Fund(5)
California Tax-Exempt Fund(5) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(5) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(5) Intermediate Tax-Exempt Bond Fund
- --------------------------------------------------------------------------------------------
MONEY MARKET FUNDS Money Market Fund Cash Reserves
<FN>
(1) Exchange privileges are subject to change or
termination.
(2) Formerly Global Bio-Tech Fund.
(3) Formerly Special Fund.
(4) Formerly Investment Grade Bond Fund.
(5) Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
-C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
</TABLE>
15 Oppenheimer Cash Reserves
<PAGE>
INFORMATION
General Information
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PhoneLink
24 hours a day, automated
information and transactions
1-800-533-3310
Telecommunications Device
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0760.001.0695 August 31, 1995
"HOW MAY I HELP YOU?"
As an OppenheimerFunds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or
ready account access, you can benefit from services designed to make
investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account
and handle administrative requests. You can reach them at our General
Information number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get auto-mated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
informa-tion. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an indepen-dent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, hon-ored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
- -------------------------------------------------------------------------------
--------------
[OPPENHEIMER FUNDS LOGO] Bulk Rate
Oppenheimer Funds Distributor, Inc. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 469
Denver, CO
