<PAGE> 1
OPPENHEIMER CASH RESERVES
Annual Report December 31, 1994
[FIGURE NUMBER 1]
Photo of family walking
"I want to
know my
money will
be there
when I
need it."
[LOGO]
<PAGE> 2
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 seeks maximum 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. government securities,
municipal bonds 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 12/31/94 was
4.91% with compounding, and 4.80% without compounding. For Class B and C shares,
the seven-day annualized yields were 4.25% and 4.22% with compounding, and 4.17%
and 4.13% without compounding, respectively(2).
Compounded annualized yield for Class A shares for the 12 months ended
12/31/94 was 3.22%. Without compounding, the annualized yield was 3.17%. For
Class B and C shares, compounded annualized yields for the 12 months ended
12/31/94 were 2.55% and 2.52%. Without compounding, they were 2.51% and 2.49%,
respectively(2).
OUTLOOK
"The Fed is likely to raise short-term interest rates at least one more time in
1995. With the portfolio adjustments we've made over the past several months,
the Fund is ready to respond to whatever opportunities the future holds in
store."
Dottie Warmack, Portfolio Manager
December 31, 1994
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. Past performance is not
indicative of future results.
2 Oppenheimer Cash Reserves
<PAGE> 3
Dear OppenheimerFunds Shareholder,
The past year was a good one for short-term investors. The U.S. Federal Reserve
undertook one of the most aggressive efforts to raise interest rates in its
history, and although the Fed's efforts brought significant uncertainty to the
nation's stock and bond markets, the short-term money markets benefited
throughout the year from rising yields.
In this environment, your Fund met its objectives well, combining an
attractive short-term yield and share-price stability with daily liquidity and
investment convenience.
At this writing, we believe that the outlook for the money markets remains
positive. Inflation remains low, and short-term money market investments are
providing attractive inflation-adjusted yields. Given the uncertainties still
surrounding the longer-term investment outlook, many investors are seeking
stable, liquid, short-term investments that provide dependable returns, and our
money market funds offer conservative investors an excellent option for their
short-term funds.
The reason has to do with our approach to short-term investing, a
disciplined one designed to identify money market instruments that seem
especially attractive when compared to others in the market, and to avoid those
that seem to carry unnecessary risks. Although your managers are always looking
for opportunities to enhance portfolio income by monitoring yield differentials
in the nation's money markets, principal stability is their top priority.
In closing, we want to welcome new investors to the Fund and to thank
those who have been with us for some time.
We appreciate your trust in the OppenheimerFunds and we look forward to
helping you meet your investment objectives in the future.
[FIGURE NUMBER 2]
Photo of James C. Swain
James C. Swain
Chairman
Oppenheimer
Cash Reserves
[FIGURE NUMBER 3]
Photo of Jon S. Fossel
Jon S. Fossel
President
Oppenheimer
Cash Reserves
Jamens C. Swain Jon S. Fossel
- -------------- -------------
James C. Swain Jon S. Fossel
January 23, 1995
3 Oppenheimer Cash Reserves
<PAGE> 4
At right:
Portfolio Manager
Dottie Warmack
Q + A
[FIGURE NUMBER 4]
Photo of Dottie Warmack
An interview with your Fund's manager.
SHORT-TERM INTEREST RATES ROSE DRAMATICALLY OVER THE PAST 12 MONTHS; HOW DID YOU
POSITION THE FUND'S PORTFOLIO TO CAPITALIZE ON RISING RATES?
We took several steps to capitalize on rising interest rates. Most important, we
steadily shortened the Fund's average maturity during 1994, reducing it from 34
days on January 1 to 26 days at December 31.
DID YOU CHANGE THE COMPOSITION OF THE PORTFOLIO'S HOLDINGS?
Not in any major way. We continued to maintain substantial positions in
overnight investments, floating-rate notes, and variable-rate instruments,
targeting maturities to Federal Reserve Board meeting dates.
At year end, overnight, variable-rate and floating-rate investments
accounted for 23% of the Fund's net assets.1
IN PAST REPORTS, YOU'VE MENTIONED THAT YOU TAKE A "BARBELL" APPROACH TO
PORTFOLIO CONSTRUCTION. WHAT DOES THAT MEAN?
Basically it means that we concentrate our investments at the very short and
long-term ends of the money market investment spectrum.
As I mentioned, as interest rates rose during the year, we increased the
Fund's holdings of overnight instruments and other investments whose yields
respond rapidly to changing interest rates. At the same time, as interest rates
continue to increase, we are also extending the maturities of some of the
portfolio's holdings in an effort to "lock in" high rates for an extended
period.
WHAT ARE THE BENEFITS OF THIS BARBELL APPROACH?
There are several, but one stands out: Its success doesn't depend on the ability
to pre-dict changes in the economy or interest rates. That's some-thing no one
can do accu-rately with any consistency. With our barbell approach, we don't
need to forecast interest rates for the Fund to meet its objectives. The Fund,
instead, provides attractive returns and principal stability in any interest
rate environment.
WHAT'S YOUR OUTLOOK FOR THE FUND?
We think the outlook is very positive. With interest rates and inflation at
their current levels, the Fund is providing attractive inflation-adjusted
returns along with principal stability, and we don't see conditions changing
significantly in the near term. The combi-nation of income and stability the
Fund provides should continue to benefit investors looking for a safe place to
invest their short-term funds.-
1. The Fund's portfolio is subject to change.
4 Oppenheimer Cash Reserves
<PAGE> 5
STATEMENT OF INVESTMENTS December 31, 1994
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
------ ------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--2.6%
DOMESTIC CERTIFICATES Huntington National Bank, 5.82%, 1/4/95 (Cost $3,999,207)(1) $4,000,000 $3,999,207
OF DEPOSIT--2.6%
DIRECT BANK OBLIGATIONS--2.0%
FCC National Bank, 5.82%, 1/4/95 (Cost $2,997,713)(1) 3,000,000 2,997,713
LETTERS OF CREDIT--7.9%
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 5.82%, 2/3/95 5,000,000 4,973,325
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.45%, 1/13/95 4,000,000 3,992,733
Sanwa Bank Ltd., guaranteeing commercial paper of:
Orix America, Inc., 5.72%, 1/10/95(2) 3,000,000 2,995,710
----------
Total Letters of Credit (Cost $11,961,768) 11,961,768
SHORT-TERM NOTES--79.7%
ASSET-BACKED--7.9% Cooperative Association of Tractor Dealers, Inc.:
5.72%, 1/12/95 1,700,000 1,697,029
6.10%, 1/13/95 3,300,000 3,293,290
CXC, Inc., 5.75%, 2/10/95 5,000,000 4,968,056
CXC, Inc., 6%, 2/1/95(2) 2,000,000 1,989,666
----------
11,948,041
BANKS--11.1% Bankers Trust New York Corp., 5.64%, 1/3/95(1) (2) (3) 2,000,000 1,999,796
Chase Manhattan Corp., 5.40%, 1/17/95 5,000,000 4,988,000
CoreStates Capital Corp., 6.17%, 2/7/95 5,000,000 4,968,293
NationsBank Corp., 5.42%, 1/18/95 5,000,000 4,987,203
----------
16,943,292
BEVERAGES: SOFT DRINKS--3.3% Coca-Cola Enterprises, Inc., 5.80%, 2/13/95(2) 5,000,000 4,965,361
BROKER/DEALERS--8.1% Bear Stearns Cos., Inc., 6.241%, 1/6/95(1) 3,000,000 3,000,000
Lehman Brothers Holdings, Inc.:
5.61%, 1/12/95 2,000,000 2,000,000
6.22%, 1/3/95(1) 800,000 800,000
6.733%, 2/15/95(1) 1,500,000 1,501,365
Morgan Stanley Group, Inc., 5.49%, 1/3/95(1) 5,000,000 5,000,000
----------
12,301,365
CONGLOMERATES--2.7% Mitsubishi International Corp., 5.82%, 2/15/95 4,200,000 4,169,443
CONSUMER FINANCE Sears Roebuck Acceptance Corp., 5.10%, 1/23/95 5,000,000 4,984,417
(PERSONAL LOANS)--3.3%
</TABLE>
5 Oppenheimer Cash Reserves
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
------ ------------
<S> <C> <C> <C>
DIVERSIFIED FINANCE--10.8% General Electric Capital Corp., 5.79%, 1/3/95(1) $6,000,000 $ 5,996,833
General Motors Acceptance Corp., 6.20%, 2/9/95 2,000,000 1,986,567
ITT Financial Corp., 5.83%, 2/15/95 5,000,000 4,963,563
Transamerica Finance Corp., 5.10%, 2/3/95 3,500,000 3,483,637
------------
16,430,600
ELECTRIC COMPANIES--0.7% Vattenfall Treasury, Inc., guaranteed by Vattenfall
AB, 6.10%, 1/11/95 1,000,000 998,306
FACTORING--4.6% CSW Credit, Inc.:
5.70%, 1/9/95 4,000,000 3,994,933
6.12%, 2/14/95 3,000,000 2,977,560
------------
6,972,493
FINANCIAL SERVICES: Countrywide Funding Corp., 6.20%, 1/3/95 5,700,000 5,698,037
MISCELLANEOUS--3.8%
HOUSEWARES--1.3% Newell Co., 6.20%, 2/7/95(2) 2,000,000 1,987,256
LEASE FINANCING--9.1% International Lease Finance Corp.:
5.85%, 2/24/95 5,000,000 4,956,125
6%, 2/3/95 2,000,000 1,989,000
Sanwa Business Credit Corp.:
6.08%, 2/21/95 5,000,000 4,956,933
6.14%, 2/10/95 2,000,000 1,986,356
------------
13,888,414
OIL: INTEGRATED
INTERNATIONAL--3.9% Texaco, Inc., 6%, 2/3/95 6,000,000 5,967,000
RETAIL STORES: DEPARTMENT, St. Michael Finance Ltd., guaranteed by
GENERAL AND SPECIALTY--1.4% Marks & Spencer PLC, 5.09%, 2/9/95 2,121,000 2,109,304
TECHNOLOGY--3.3% Electronic Data Systems Corp., 5.95%, 2/15/95 5,000,000 4,962,813
TELECOMMUNICATIONS--4.4% NYNEX Corp., 6.25%, 1/31/95 6,755,000 6,719,818
------------
Total Short-Term Notes (Cost $121,045,960) 121,045,960
U.S. GOVERNMENT OBLIGATIONS--4.8%
Small Business Administration, 6.125%--10.375%, 1/1/95(1)
(Cost $7,240,485) 6,906,360 7,240,485
TOTAL INVESTMENTS, AT VALUE (COST $147,245,133) 97.0% 147,245,133
OTHER ASSETS NET OF LIABILITIES 3.0 4,523,682
---------- ------------
NET ASSETS 100.0% $151,768,815
========== ============
</TABLE>
1. Variable rate security. The interest rate,
which is based on specific, or an index of,
market interest rates, is subject to change
periodically and is the effective rate on
December 31, 1994.
2. Security purchased in private placement
transaction, without registration under the
Securities Act of 1933 (the Act). The
securities are carried at amortized cost, and
amount to $13,937,789, or 9.18% of the Fund's
net assets.
3. In addition to being restricted, the
security is considered illiquid by virtue of
the absence of a readily available market or
because of legal or contractual restrictions
on resale. Illiquid securities amounted to
$1,999,796, or 1.32% of the Fund's net
assets, at December 31, 1994. The Fund may
not invest more than 10% of its net assets in
illiquid securities.
See accompanying Notes to Financial
Statements.
6 Oppenheimer Cash Reserves
<PAGE> 7
STATEMENT OF ASSETS AND LIABILITIES December 31, 1994
<TABLE>
<S> <C> <C>
ASSETS Investments, at value (cost $147,245,133)--see accompanying statement $147,245,133
Cash 1,141,754
Receivables:
Shares of beneficial interest sold 7,536,741
Interest and principal paydowns 468,608
Other 24,609
------------
Total assets 156,416,845
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 4,533,205
Service plan fees--Note 3 45,503
Other 69,322
------------
Total liabilities 4,648,030
NET ASSETS $151,768,815
============
COMPOSITION OF Paid-in capital $151,768,580
NET ASSETS Accumulated net realized gain (loss) from investment transactions 235
------------
Net assets $151,768,815
============
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value, redemption price and offering price per share (based on net assets
of $99,361,278 and 99,415,055 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 $46,803,315 and 46,803,840 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 $5,604,222 and 5,604,372 shares of beneficial interest outstanding) $1.00
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Cash Reserves
<PAGE> 8
STATEMENT OF OPERATIONS For the Year Ended December 31,
1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME Interest $5,172,716
EXPENSES Management fees--Note 3 555,481
Distribution and service plan fees:
Class A--Note 3 170,107
Class B--Note 3 158,745
Class C--Note 3 15,695
Transfer and shareholder servicing agent fees--Note 3 459,724
Shareholder reports 100,623
Custodian fees and expenses 13,465
Legal and auditing fees 11,643
Trustees' fees and expenses 488
Registration and filing fees:
Class A 75,369
Class B 6,965
Class C 264
Other 35,905
----------
Total expenses 1,604,474
NET INVESTMENT INCOME (LOSS) 3,568,242
NET REALIZED GAIN (LOSS) ON INVESTMENTS 56
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $3,568,298
==========
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Cash Reserves
<PAGE> 9
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1994 1993
-----------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income (loss) $ 3,568,242 $ 1,534,041
Net realized gain (loss) on investments 56 26,607
------------ -----------
Net increase (decrease) in net assets resulting from operations 3,568,298 1,560,648
DIVIDENDS AND Class A (2,852,731) (1,558,195)
DISTRIBUTIONS TO Class B (648,288) (2,764)
SHAREHOLDERS Class C (67,223) (2)
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from
TRANSACTIONS Class A beneficial interest transactions--Note 2 28,436,616 (18,342,061)
Net increase (decrease) in net assets resulting from
Class B beneficial interest transactions--Note 2 46,175,820 628,020
Net increase (decrease) in net assets resulting from
Class C beneficial interest transactions--Note 2 5,603,372 1,000
NET ASSETS Total increase (decrease) 80,215,864 (17,713,354)
Beginning of period 71,552,951 89,266,305
------------ -----------
End of period $151,768,815 $71,552,951
============ ===========
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Cash Reserves
<PAGE> 10
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------
YEAR ENDED
DECEMBER 31,
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <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
Income from investment operations--
net investment income and net realized
gain on investments .03 .02 .03 .06 .07
Dividends and distributions
to shareholders (.03) (.02) (.03) (.06) (.07)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $99,361 $70,924 $89,266 $112,883 $44,293
Average net assets (in thousands) $87,908 $76,910 $104,970 $105,352 $32,637
Number of shares outstanding at
end of period (in thousands) 99,415 70,978 89,320 112,930 44,295
Ratios to average net assets:
Net investment income 3.25% 1.99% 3.07% 5.13% 7.32%
Expenses, before voluntary
reimbursement by the Manager 1.32% 1.55% 1.42% 1.22% 1.29%
Expenses, net of voluntary
reimbursement by the Manager N/A N/A 1.25% 1.15% 1.00%
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
-------------------- ------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1989(3) 1994 1993(2) 1994 1993(1)
------ ---- ---- ---- ----
<S> <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
Income from investment operations--
net investment income and net realized
gain on investments .08 .03 --(4) .02 --(4)
Dividends and distributions
to shareholders (.08) (.03) --(4) (.02) --(4)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $19,227 $46,803 $628 $5,604 $1
Average net assets (in thousands) $6,280 $21,262 $454 $2,107 $1
Number of shares outstanding at
end of period (in thousands) 19,228 46,803 628 5,604 1
Ratios to average net assets:
Net investment income 8.10%(5) 3.05% 1.49%(5) 3.19% 1.18%(5)
Expenses, before voluntary
reimbursement by the Manager 1.74%(5) 1.89% 2.12%(5) 1.90% 2.35%(5)
Expenses, net of voluntary
reimbursement by the Manager 1.00%(5) N/A N/A N/A N/A
</TABLE>
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. For the period from January 3, 1989
(commencement of operations) to December 31,
1989.
4. Less than $.005 per share.
5. Annualized.
See accompanying Notes to Financial
Statements.
10 Oppenheimer Cash Reserves
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
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 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 INCOME 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 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.
11 Oppenheimer Cash Reserves
<PAGE> 12
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. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1994 YEAR ENDED DECEMBER 31, 1993(1)
---------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A:
Sold 298,811,461 $298,811,461 157,166,333 $157,166,333
Dividends and distributions reinvested 2,517,663 2,517,663 1,385,219 1,385,219
Redeemed (272,892,508) (272,892,508) (176,893,613) (176,893,613)
------------ ------------ ------------ ------------
Net increase (decrease) 28,436,616 $ 28,436,616 (18,342,061) $(18,342,061)
============ ============ ============ ============
Class B:
Sold 101,626,173 $101,626,173 2,347,484 $2,347,484
Dividends and distributions reinvested 519,118 519,118 1,651 1,651
Redeemed (55,969,471) (55,969,471) (1,721,115) (1,721,115)
------------ ------------ ------------ ------------
Net increase 46,175,820 $ 46,175,820 628,020 $ 628,020
============ ============ ============ ============
Class C:
Sold 11,011,788 $ 11,011,788 1,000 $ 1,000
Dividends and distributions reinvested 56,507 56,507 -- --
Redeemed (5,464,923) (5,464,923) -- --
------------ ------------ ------------ ------------
Net increase 5,603,372 $ 5,603,372 1,000 $ 1,000
============ ============ ============ ============
</TABLE>
1. For the year ended December 31, 1993 for Class A
shares, for the period from August 17, 1993 (inception
of offering) to December 31, 1993 for Class B shares and
for the period from December 1, 1993 (inception of
offering) to December 31, 1993 for Class C shares.
3. MANAGEMENT FEES Management fees paid to the Manager were in accordance
AND OTHER with the investment advisory agreement with the Fund
TRANSACTIONS which provides for an annual fee of .50% on the first
WITH AFFILIATES $250 million of 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 applicable
regulatory limit on Fund expenses.
During the year ended December 31, 1994,
Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary
of the Manager, received contingent deferred sales
charges of $273,262 and $9,861, respectively, upon
redemption of Class B and Class C 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 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 year ended December 31, 1994, OFDI paid
$71,990 to an affiliated broker/dealer as reimbursement
for Class A personal service and maintenance expenses
and retained $158,749 and $15,696, respectively, as
reimbursement for Class B and Class C sales commissions
and service fee advances as well as financing costs.
12 Oppenheimer Cash Reserves
<PAGE> 13
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer
Cash Reserves:
We have audited the accompanying statement of assets and
liabilities, including the statement of investments, of
Oppenheimer Cash Reserves as of December 31, 1994, the
related statement of operations for the year then ended,
the statements of changes in net assets for the years
ended December 31, 1994 and 1993, and the financial
highlights for the period January 3, 1989 (commencement
of operations) to December 31, 1994. 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
generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit also includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures
included confirmation of securities owned at December
31, 1994 by correspondence with the custodian. An audit
also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements
and financial highlights present fairly, in all material
respects, the financial position of Oppenheimer Cash
Reserves at December 31, 1994, the results of its
operations, the changes in its net assets, and the
financial highlights for the respective stated periods,
in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
January 23, 1995
13 Oppenheimer Cash Reserves
<PAGE> 14
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1995, shareholders will receive information
regarding all dividends and distributions paid to them
by the Fund during calendar year 1994. 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 fiscal year ended December 31, 1994 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.
14 Oppenheimer Cash Reserves
<PAGE> 15
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.
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.
15 Oppenheimer Cash Reserves
<PAGE>
"How may I help you?"
As an OppenheimerFunds shareholder, some special privileges are available to
you. 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
information. It also gives you the ability to make transactions using your
touch-tone phone. Of course, you can always speak with a Customer Service
Representative during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an indepen-dent, non-profit
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.
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
RA0760.001.0295
[FIGURE NUMBER 5]
Photo of Jennifer Leonard
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
[LOGO] Bulk Rate
U.S. Postage
Oppenheimer Funds Distributor, Inc PAID
P.O. Box 5270 Permit No. 314
Denver, CO 80217-5270 Farmingdale, NY
