<PAGE> 1
OPPENHEIMER CASH RESERVES
Semiannual Report January 31, 1997
[PHOTO]
"I WANT
TO KNOW MY
MONEY WILL
BE THERE
WHEN
I NEED IT."
[OPPENHEIMERFUNDS 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, 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 1/31/97 was
4.32% with compounding and 4.23% without compounding. For Class B and C shares,
the seven-day annualized yields were 3.69% and 3.68% with compounding, and
3.62% and 3.62% without compounding, respectively.(2)
Compounded annualized yield for Class A shares for the six months ended
1/31/97 was 4.46%. Without compounding, the annualized yield was 4.36%. For
Class B and C shares, compounded annualized yields for the six months ended
1/31/97 were 3.86% and 3.85%, respectively. Without compounding, they were
3.79% and 3.78%, respectively.
OUTLOOK
"Unless we begin to see clear evidence of a slowdown in the economy, relative
to last year, we will maintain a fairly short average maturity. Given this
outlook for the fixed income market, we expect to continue to provide investors
with a competitive income stream and safety of principal as the new year
progresses."
Dottie Warmack, Portfolio Manager
January 31, 1997
Past performance does not guarantee future results. Yields will fluctuate.
1. An investment in the Fund is neither insured nor guaranteed by the U.S.
government, and there is no assurance that the Fund will maintain a stable net
asset value of $1.00 per share.
2. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Cash Reserves
<PAGE> 3
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Cash Reserves
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Cash Reserves
DEAR SHAREHOLDER,
It's true that the stock market of 1996 received virtually all the recognition
this past year. While excitement during the second half of the year revolved
around equities, the bond market was experiencing a quiet, yet solid, rebound.
The first half of last year was difficult for most fixed income investors,
as concerns about inflation led to rising long-term interest rates. But as we
moved through the third and fourth quarters, interest rates declined,
ultimately resulting in a bond market rally. By any standards, 1996 was quite a
year.
For example, in October, when the economy was characterized by a firm
dollar, low inflation and slow growth, the Federal Reserve responded by
maintaining its hands-off approach to interest rates. It appeared that earlier
concerns about rapid inflationary growth had been overblown, and soon
afterwards, interest rates fell. With continued sustainable non-inflationary
growth around 2% to 2.5%, long-term rates at their lowest levels since April,
and no raises expected from the Federal Reserve, the economy now seems to have
settled into a comfortable pattern of neither too little nor too much growth.
Moving ahead to 1997, President Clinton has pledged to focus on balancing
the federal budget during his second term. In fact, politicians from every camp
are discussing their intent to reduce the budget, perhaps with a balanced
budget amendment. Such a move should prove beneficial for the fixed income
market.
Throughout much of the world, interest rates declined in 1996. Despite
these foreign declines, long-term United States bond rates have increased 100
basis points since this time last year. Real interest rates around the world
are currently averaging over 5%--very attractive by historical standards if, in
fact, inflation remains low. However, foreign investors have long been
significant players in the U.S. market. And, as the U.S. dollar strengthened
against foreign currencies in 1996, the flow of funds into the United States
has increased. Foreign investments also rose because overseas bond markets
continued to offer smaller yields, and the U.S. trade deficit provided foreign
central banks with dollars they were compelled to invest. Currently, the United
States appears to lead foreign bond markets and, in 1997, is expected to offer
attractive investments.
All things considered, investors still like money market funds. That's
because despite the lackluster yield performance of money market funds in 1996,
they offer liquidity and relatively low risk.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ JAMES C. SWAIN /s/ BRIDGET A. MACASKILL
James C. Swain Bridget A. Macaskill
February 24, 1997
3 Oppenheimer Cash Reserves
<PAGE> 4
DOTTIE WARMACK
Portfolio Manager
Q + A
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The fixed income market, over the past six months, has maintained its steady,
upward pace and as a result, Oppenheimer Cash Reserves performed well. Our
strategy involved positioning our investments in securities that offered
competitive yields and relatively steady prices. This enabled us to
successfully provide investors with a competitive level of income, while
maintaining a constant share price.
WHAT INVESTMENTS HAVE HAD A POSITIVE EFFECT ON THE PORTFOLIO?
To meet the portfolio's objective of preserving capital, while capturing the
highest possible yield, our assets are invested in low-risk, short-term
securities. These include commercial paper obligations, letters of credit and
floating-rate securities. While these are generally conservative investments,
we were able to further enhance the portfolio's performance when the market
fluctuated throughout the year.
For example, when interest rates began to rise early last year, we
invested in securities that had shorter maturity dates. Because shorter
maturities have to be replaced by new issues more frequently, this positioning
helped us maintain a competitive yield during the past year. As our holdings
matured, interest rates were rising, and the Fund benefited from replacing
maturing securities with new ones that offered high yields.( 1)
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
WERE THERE ANY NEGATIVE FACTORS THAT HURT PERFORMANCE?
No. Because we had anticipated higher interest rates and positioned our
investments in securities that offered competitive yields and relative price
stability, the Fund was able to successfully meet its objectives.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
As always, we continue to focus on offering competitive yields, while watching
interest rates carefully. Given the current reports of stronger-than-expected
economic growth, we believe it is unlikely that we'll see further interest-rate
cuts in the near future. On the other hand, we also don't believe the economy
is robust enough to expect further rate increases. So, although we saw market
fluctuations throughout 1996, we're maintaining our focus on shorter maturities
and keeping a watchful eye for ways to increase yield.
WHAT IS YOUR OUTLOOK FOR THE FUND?
This type of fund is one of the few investments that benefits from higher
interest rates. Because we must invest in securities that have short
maturities, the yields paid are directly related to the prevailing interest
rates. And, even though current interest rates were lower in the beginning of
1997 than they were six months ago, we remain positive they should work in our
favor in 1997. Unless we begin to see clear evidence of a slowdown in the
economy, relative to last year, we will maintain a fairly short average
maturity. Given this outlook for the fixed income market, we expect to continue
to provide investors with a competitive income stream and safety of principal
as the new year progresses.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Cash Reserves
<PAGE> 5
<TABLE>
<CAPTION>
FINANCIALS
CONTENTS
----------------------------------------------------------------
<S> <C>
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
</TABLE>
5 Oppenheimer Cash Reserves
<PAGE> 6
STATEMENT OF INVESTMENTS January 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
=================================================================================================================================
<S> <C> <C>
DIRECT BANK OBLIGATIONS--5.3%
- ---------------------------------------------------------------------------------------------------------------------------------
ABN Amro North America Finance, Inc., 5.34%, 2/28/97 $2,000,000 $ 1,991,990
--------------------------------------------------------------------------------------------------------------------------
CoreStates Bank, N.A., 5.365%, 12/18/97(1) 5,000,000 4,997,511
--------------------------------------------------------------------------------------------------------------------------
National Westminster Bank of Canada, 5.40%, 2/18/97 5,000,000 4,987,250
-------------
Total Direct Bank Obligations (Cost $11,976,751) 11,976,751
=================================================================================================================================
LETTERS OF CREDIT--7.8%
- ---------------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of
Banco Bradesco S.A.-Grand Cayman Branch-Series B, 5.40%, 6/6/97 7,000,000 6,868,750
--------------------------------------------------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing commercial
paper of Galicia Funding Corp.-Series B:
5.38%, 2/28/97(2) 5,000,000 4,979,893
5.41%, 3/5/97(2) 2,000,000 1,990,382
--------------------------------------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of
Girsa Funding Corp., 5.32%, 4/3/97(2) 4,000,000 3,963,942
-------------
Total Letters of Credit (Cost $17,802,967) 17,802,967
=================================================================================================================================
SHORT-TERM NOTES--84.0%
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS--5.7%
Bankers Trust New York Corp., 5.39%, 7/9/97 3,000,000 2,929,032
--------------------------------------------------------------------------------------------------------------------------
CoreStates Capital Corp., 5.43%, 7/14/97(1) 5,000,000 5,000,000
--------------------------------------------------------------------------------------------------------------------------
NationsBank Corp., 5.35%, 4/10/97 5,000,000 4,949,472
-------------
12,878,504
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--2.6%
Coca-Cola Enterprises, Inc.:
5.31%, 3/19/97(2) 3,000,000 2,979,415
6.50%, 11/15/97(2) 2,770,000 2,810,490
-------------
5,789,905
- ---------------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS--9.0%
Credit Suisse First Boston, 5.50%, 3/4/97(1)(3) 5,000,000 5,000,000
--------------------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co., 5.684%, 9/29/97(1) 2,500,000 2,503,739
--------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.35%, 4/30/97 3,000,000 2,960,767
--------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.30%, 6/27/97 9,860,000 9,860,000
-------------
20,324,506
</TABLE>
6 Oppenheimer Cash Reserves
<PAGE> 7
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL FINANCE--18.2%
CIT Group Holdings, Inc.:
5.375%, 9/17/97(1) $ 5,000,000 $ 4,997,735
5.62%, 2/3/97 5,500,000 5,498,283
---------------------------------------------------------------------------------------------------------------------------
Countrywide Home Loans:
5.35%, 3/26/97 1,300,000 1,289,761
5.36%, 3/5/97 5,000,000 4,976,178
5.42%, 4/4/97 5,000,000 4,953,328
---------------------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.38%, 2/14/97 2,000,000 1,996,114
5.43%, 2/26/97 4,000,000 3,984,944
5.60%, 2/10/97 2,723,000 2,719,188
8.25%, 3/11/97 3,000,000 3,007,455
---------------------------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.45%, 3/24/97 5,000,000 4,960,687
5.55%, 4/10/97 3,000,000 2,968,550
------------
41,352,223
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--2.2%
First Data Corp., 5.40%, 6/24/97 5,000,000 4,892,750
- ----------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--2.8%
Mitsubishi International Corp., 5.50%, 3/17/97 6,500,000 6,456,306
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.4%
Sears Roebuck Acceptance Corp., 5.32%, 3/31/97 1,000,000 991,429
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--10.2%
Associates Corp. of North America, 5.625%, 2/3/97 10,677,000 10,673,663
---------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.55%, 5/12/97(1) 5,000,000 5,000,492
---------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.47%, 2/14/97 7,500,000 7,485,185
------------
23,159,340
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--5.3%
Mitsubishi Electric Finance America, Inc.:
5.36%, 2/12/97(2) 7,000,000 6,988,536
5.36%, 2/5/97(2) 5,000,000 4,997,022
------------
11,985,558
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--2.0%
Columbia/HCA Healthcare Corp., 5.37%, 4/18/97(2) 4,500,000 4,448,985
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.9%
PHH Corp., 5.407%, 1/27/98(1) 2,000,000 1,999,907
- ----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--2.1%
Repsol International Finance BV, 5.38%, 7/10/97 5,000,000 4,881,192
- ----------------------------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--20.4%
Asset Backed Capital Finance, Inc.:
5.40%, 3/24/97(2) 2,700,000 2,679,345
5.40%, 6/11/97(2) 1,760,000 1,725,680
---------------------------------------------------------------------------------------------------------------------------
Asset Securitization Cooperative Corp., 5.45%, 3/27/97(2) 8,000,000 7,934,600
---------------------------------------------------------------------------------------------------------------------------
Beta Finance, Inc., 5.32%, 5/7/97(2) 2,000,000 1,971,922
---------------------------------------------------------------------------------------------------------------------------
CXC, Inc., 5.31%, 2/27/97(2) 4,600,000 4,582,359
---------------------------------------------------------------------------------------------------------------------------
Enterprise Funding Corp.:
5.36%, 3/25/97(2) 5,000,000 4,961,289
5.40%, 5/19/97(2) 5,000,000 4,919,750
---------------------------------------------------------------------------------------------------------------------------
First Deposit Master Trust 1993-3, 5.32%, 2/24/97(2) 5,000,000 4,983,006
---------------------------------------------------------------------------------------------------------------------------
RACERS Series 1996-MM-12-3, 5.484%, 12/15/97(1)(3) 3,000,000 3,000,000
---------------------------------------------------------------------------------------------------------------------------
Receivables Capital Corp., 5.33%, 3/11/97(2) 2,500,000 2,485,935
---------------------------------------------------------------------------------------------------------------------------
Sigma Finance, Inc., 5.37%, 4/15/97(2) 2,000,000 1,978,222
---------------------------------------------------------------------------------------------------------------------------
TIERS Series DCMT 1996-A, 5.514%, 10/15/97(1)(3) 5,000,000 5,000,000
------------
46,222,108
</TABLE>
7 Oppenheimer Cash Reserves
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-
TECHNOLOGY--2.2%
NYNEX Corp., 5.345%, 3/5/97 $5,000,000 $ 4,976,244
------------
Total Short-Term Notes (Cost $190,358,957) 190,358,957
==================================================================================================================================
U.S. GOVERNMENT AGENCIES--2.2%
- ----------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.45%, 8/1/97 (Cost $4,997,813)(1) 5,000,000 4,997,813
==================================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--1.3%
- ----------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale, 5.35%, 7/29/97 (Cost $3,000,000)(1) 3,000,000 3,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 100.6% 228,136,488
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.6) (1,401,984)
---------- ------------
NET ASSETS 100.0% $226,734,504
========== ============
</TABLE>
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.
1. Floating or variable rate obligation. 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 January 31, 1997. 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.
2. Restricted securities, including those issued in exempt transactions
without registration under the Securities Act of 1933 (the Act),
amounting to $71,380,773, or 31.48% of the Fund's net assets, have been
determined to be liquid pursuant to guidelines adopted by the Board of
Trustees.
3. Restricted securities which are considered illiquid, by virtue of
the absence of a readily available market or because of legal or
contractual restrictions on resale, amount to $13,000,000, or 5.73% of
the Fund's net assets. The Fund may not invest more than 10% of its net
assets (determined at the time of purchase) in illiquid securities.
See accompanying Notes to Financial Statements.
8 Oppenheimer Cash Reserves
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES January 31, 1997 (Unaudited)
<TABLE>
<S> <C>
===============================================================================================================================
ASSETS
Investments, at value--see accompanying statement $228,136,488
------------------------------------------------------------------------------------------------------------------------
Cash 1,160,014
------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 4,380,722
Interest 536,366
------------------------------------------------------------------------------------------------------------------------
Other 251,178
------------
Total assets 234,464,768
===============================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 7,325,103
Dividends 304,999
Distribution and service plan fees 33,641
Trustees' fees 1,895
Other 64,626
------------
Total liabilities 7,730,264
===============================================================================================================================
NET ASSETS $226,734,504
============
===============================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $226,741,523
------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (7,019)
------------
Net assets $226,734,504
============
===============================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $171,083,841 and 171,146,441 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 $47,555,340 and 47,554,927 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 $8,095,323 and 8,094,895 shares of beneficial interest outstanding) $1.00
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Cash Reserves
<PAGE> 10
STATEMENT OF OPERATIONS For the Six Months Ended January 31, 1997 (Unaudited)
<TABLE>
<S> <C>
=============================================================================================================================
INVESTMENT INCOME
Interest $6,893,129
=============================================================================================================================
EXPENSES
Management fees--Note 3 620,130
----------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 3:
Class A 173,407
Class B 229,587
Class C 35,539
----------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 417,595
----------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 114,645
Class B 42,179
Class C 6,731
----------------------------------------------------------------------------------------------------------------------
Shareholder reports 90,269
----------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 10,831
----------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 3,232
----------------------------------------------------------------------------------------------------------------------
Insurance expenses 2,537
----------------------------------------------------------------------------------------------------------------------
Other 10,485
----------
Total expenses 1,757,167
=============================================================================================================================
NET INVESTMENT INCOME 5,135,962
=============================================================================================================================
NET REALIZED GAIN ON INVESTMENTS 764
=============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,135,962
==========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Cash Reserves
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31, DECEMBER 31,
(UNAUDITED) 1996(1) 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 5,135,962 $ 5,166,134 $ 6,676,570
--------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 764 (6,753) 37,450
------------ ------------ ------------
Net increase in net assets resulting from operations 5,136,726 5,159,381 6,714,020
=================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Class A (3,817,741) (3,897,426) (4,996,089)
Class B (1,141,665) (1,119,443) (1,474,886)
Class C (176,556) (143,788) (249,786)
=================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A 1,052,644 21,502,771 49,175,977
Class B (38,018,312) 48,195,633 (9,426,294)
Class C (3,621,240) 6,692,718 (580,955)
=================================================================================================================================
NET ASSETS
Total increase (decrease) (40,586,144) 76,389,846 39,161,987
--------------------------------------------------------------------------------------------------------------------------
Beginning of period 267,320,648 190,930,802 151,768,815
------------ ------------ ------------
End of period $226,734,504 $267,320,648 $190,930,802
============ ============ ============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
See accompanying Notes to Financial Statements.
11 Oppenheimer Cash Reserves
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD ENDED
JAN. 31, 1997 JULY 31, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993
==============================================================================================================================
<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 .02 .03 .05 .03 .02
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders (.02) (.03) (.05) (.03) (.02)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======= =======
==============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 2.21% 2.68% 4.84% 3.22% 2.05%
==============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $171,084 $170,031 $148,529 $99,361 $70,924
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $176,404 $149,889 $105,349 $87,908 $76,910
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.29%(6) 4.47%(6) 4.71% 3.25% 1.99%
Expenses, before voluntary
reimbursement by the Manager 1.26%(6) 1.06%(6) 1.36% 1.32% 1.55%
Expenses, net of voluntary
reimbursement by the Manager N/A 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. The Fund changed its fiscal year end from December 31 to July 31.
3. For the period from August 17, 1993 (inception of offering) to December 31,
1993.
4. Less than $.005 per share.
12 Oppenheimer Cash Reserves
<PAGE> 13
<TABLE>
<CAPTION>
CLASS B CLASS C
- -------- --------------------------------------------------------------------- ----------------------------
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED ENDED PERIOD ENDED
JAN. 31, 1997 JULY 31, YEAR ENDED DECEMBER 31, JAN. 31, 1997 JULY 31,
1992 (UNAUDITED) 1996(2) 1995 1994 1993(3) (UNAUDITED) 1996(2)
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------
.03 .02 .02 .04 .03 --(4) .02 .02
- ----------------------------------------------------------------------------------------------------------------------
(.03) (.02) (.02) (.04) (.03) --(4) (.02) (.02)
- ----------------------------------------------------------------------------------------------------------------------
$1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= ======= ===== ====== =======
======================================================================================================================
3.07% 1.91% 2.35% 4.26% 2.54% 0.56% 1.91% 2.35%
======================================================================================================================
$89,266 $47,555 $85,573 $37,378 $46,803 $628 $8,095 $11,717
- ----------------------------------------------------------------------------------------------------------------------
$104,970 $59,472 $49,226 $35,360 $21,262 $454 $9,400 $ 6,333
- ----------------------------------------------------------------------------------------------------------------------
3.07% 3.81%(6) 3.91%(6) 4.15% 3.05% 1.49%(6) 3.73%(6) 3.91%(6)
1.42% 1.85%(6) 1.61%(6) 1.92% 1.89% 2.12%(6) 1.82%(6) 1.61%(6)
1.25% N/A N/A N/A N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
CLASS C
- ------------------------------------
YEAR ENDED DECEMBER 31,
1995 1994 1993(1)
====================================
<S> <C> <C>
$1.00 $1.00 $1.00
- ------------------------------------
.04 .02 --(4)
- ------------------------------------
(.04) (.02) --(4)
- ------------------------------------
$1.00 $1.00 --(4)
======= ======= ======
====================================
4.21% 2.51% 0.14%
====================================
$5,024 $5,604 $1
- ------------------------------------
$6,040 $2,107 $1
- ------------------------------------
4.12% 3.19% 1.18%(6)
1.97% 1.90% 2.35%(6)
N/A N/A N/A
</TABLE>
5. Assumes a hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Total returns are not annualized for periods of less than one
full year. Total returns reflect changes in net investment income only.
6. Annualized.
See accompanying Notes to Financial Statements.
13 Oppenheimer Cash Reserves
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Cash Reserves (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek the
maximum current income that is consistent with stability of principal
by investing in "money market" securities. The Fund's investment
adviser is OppenheimerFunds, Inc. (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 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.
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.
14 Oppenheimer Cash Reserves
<PAGE> 15
================================================================================
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>
SIX MONTHS ENDED JANUARY 31, 1997 PERIOD ENDED JULY 31, 1996(1) YEAR ENDED DECEMBER 31, 1995
--------------------------------- ------------------------------ ----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class A:
Sold 242,853,898 $242,853,887 265,507,057 $265,507,057 367,360,698 $367,360,698
Dividends and
distributions reinvested 3,552,804 3,552,804 3,477,339 3,477,339 4,666,289 4,666,289
Redeemed (245,354,047) (245,354,047) (247,481,642) (247,481,625) (322,851,010) (322,851,010)
------------ ------------ ------------- ------------ ------------- ------------
Net increase 1,052,655 $ 1,052,644 21,502,754 $ 21,502,771 49,175,977 $ 49,175,977
============ ============ ============= ============ ============= ============
- ---------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 80,671,349 $ 80,671,349 175,381,171 $175,381,171 111,551,709 $111,551,709
Dividends and
distributions reinvested 930,062 930,062 836,342 836,342 1,179,668 1,179,668
Redeemed (119,619,663) (119,619,723) (128,021,880) (128,021,880) (122,157,671) (122,157,671)
------------ ------------ ------------- ------------ ------------- ------------
Net increase (decrease) (38,018,252) $(38,018,312) 48,195,633 $ 48,195,633 (9,426,294) $ (9,426,294)
============ ============ ============= ============ ============= ============
- ---------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 30,231,681 $ 30,231,683 32,552,967 $ 32,552,967 20,708,644 $ 20,708,644
Dividends and
distributions reinvested 146,249 146,249 116,233 116,233 207,924 207,924
Redeemed (33,999,170) (33,999,172) (25,976,482) (25,976,482) (21,497,523) (21,497,523)
------------ ------------ ------------- ------------ ------------- ------------
Net increase (decrease) (3,621,240) $ (3,621,240) 6,692,718 $ 6,692,718 (580,955) $ (580,955)
============ ============ ============= ============ ============= ============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
================================================================================
3. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
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% on the first $250 million of average annual net assets with a
reduction of 0.025% on each $250 million thereafter, to 0.40% 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.
Sales charges advanced to broker/dealers by OFDI on sales
of the Fund's Class B and Class C shares totaled $21,031 and $1,695,
respectively, of which $1,757 was paid to an affiliated broker/dealer
for Class B.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund,
and for other registered investment companies. OFS's total costs of
providing such services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.20% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks
and other financial institutions quarterly for providing personal
service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended January 31, 1997, OFDI paid
$47,728 to an affiliated broker/dealer as reimbursement for Class A
personal service and maintenance expenses.
15 Oppenheimer Cash Reserves
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
3. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
The Fund has adopted compensation type Distribution and Service Plans
for Class B and Class C shares to compensate OFDI for its services and
costs in distributing Class B and Class C shares and servicing
accounts. Under the Plans, the Fund pays OFDI an annual asset-based
sales charge of 0.75% per year on Class B and Class C shares, as
compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a
service fee of 0.25% per year as compensation 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 financial institutions. At present, these service fees
are set at zero for Class B and Class C shares. Both fees are computed
on the average annual net assets of Class B and Class C shares,
determined as of the close of each regular business day. During the six
months ended January 31, 1997, OFDI retained $229,587 and $35,539,
respectively, as compensation for Class B and Class C sales commissions
and service fee advances, as well as financing costs. If the Plans are
terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plans were terminated.
16 Oppenheimer Cash Reserves
<PAGE> 17
OPPENHEIMER CASH RESERVES
================================================================================
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Dorothy G. Warmack, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF PORTFOLIO
SECURITIES
Citibank, N.A.
================================================================================
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.
17 Oppenheimer Cash Reserves
<PAGE> 18
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 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 35 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 3 million shareholder accounts and more than $60
billion under OppenheimerFunds' management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by telephone.1
For more information on Oppenheimer funds, please contact your
financial adviser 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>
<S> <C>
================================================================================================================
STOCK FUNDS
Developing Markets Fund Quest Capital Value Fund
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Capital Appreciation Fund(3) Quest Value Fund
================================================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
================================================================================================================
MUNICIPAL FUNDS
California Municipal Fund(5) Insured Municipal Fund
Florida Municipal Fund(5) Intermediate Municipal Fund
New Jersey Municipal Fund(5)
New York Municipal Fund(5) Rochester Division
Pennsylvania Municipal Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
================================================================================================================
MONEY MARKET FUNDS(6)
Money Market Fund Cash Reserves
================================================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. On 3/6/97, the Fund's name was changed from "Asset Allocation Fund."
5. Available only to investors in certain states.
6. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance that a
money market fund will be able to maintain a stable net asset value of
$1.00 per share. Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
18 Oppenheimer Cash Reserves
<PAGE> 19
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 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
RS0760.001.0197 March 31, 1997
[PHOTO]
CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"HOW MAY I HELP YOU?"
As an Oppenheimer fund 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 Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated 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. 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 independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -----------------
Bulk Rate
U.S. Postage
PAID
Permit No. 130
Torrington, CT
- -----------------
