------------------------------------------
Semiannual Report January 31, 1999
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OPPENHEIMER
Cash
Reserves
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[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
9 Financial
Statements
23 Officers and
Trustees
24 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o High-quality money market instruments that carried only slightly higher credit
risk offered very attractive yields compared to Treasury bills, over the last
six months.
o Although the Fed's three successive rate cuts in the fall were able to
stimulate economic growth here in America, much of Europe is sluggish while most
of Asia remains in a recession.
Current Yield
For the 7-Day Period
Ended 1/31/99
Class A
With Without
Compounding(1) Compounding
- --------------------------------------------------------------------------------
4.17% 4.09%
- --------------------------------------------------------------------------------
Class B
With Without
Compounding(1) Compounding
- --------------------------------------------------------------------------------
3.59% 3.53%
- --------------------------------------------------------------------------------
Class C
With Without
Compounding(1) Compounding
- --------------------------------------------------------------------------------
3.51% 3.45%
- --------------------------------------------------------------------------------
In reviewing performance, please remember that past performance does not
guarantee future results. Yields will fluctuate. An investment in the Fund is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
1. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Cash Reserves
<PAGE>
[PHOTO]
James C. Swain
Chairman
Oppenheimer
Cash Reserves
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Cash Reserves
Dear shareholder,
- --------------------------------------------------------------------------------
Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest that
the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view,
actively managed portfolios that are closely monitored by expert money managers
are likely to provide better returns than passive index investing in 1999.
That's because selectivity is expected to be more critical to performance than
it has been over the past few years. In a potentially overvalued stock market
and rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds. That
way, if one market experiences setbacks, one or more of the others may help
cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
February 22, 1999
3 Oppenheimer Cash Reserves
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed over the past six months?
Despite much uncertainty in the global financial markets over the period, for
the six months that ended January 31, 1999, Oppenheimer Cash Reserves maintained
a stable share price of $1.00 per share, while continuing to provide its
investors with a steady stream of income. For the seven-day period ending
January 31, 1999, the Fund's compounded current yield for Class A shares was
4.17%. Without compounding, the corresponding yield for Class A shares was
4.09%.(1)
Has the volatile global economy affected the Fund?
When international markets become unsteady, investors around the world often
look to U.S. government securities for safety and security, bypassing
high-quality money market instruments such as short-term borrowings issued by
blue chip corporations. That clearly took place in the latter half of 1998, as
Asia's financial crisis continued to form a backdrop to the global economy. At
various times during the year, demand for Treasury bills surged, boosting prices
and reducing yields, particularly in late summer as Russia's economy weakened.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
4 Oppenheimer Cash Reserves
<PAGE>
After Russia defaulted on much of its debt and allowed its currency to fall
sharply in value, emerging markets around the world were suddenly perceived as
extremely risky. Even high-quality U.S. corporate debt seemed less attractive
because of the slight credit risk involved. To attract new investors,
corporations had to offer yields considerably higher than risk-free U.S.
Treasury securities.
As a result, high-quality money market instruments that carried only
slightly higher credit risk offered very attractive yields compared to Treasury
bills. That's one reason why Oppenheimer Cash Reserves, which invests in a
mixture of certificates of deposit, letters of credit, commercial paper and
other money market instruments, was able to offer relatively healthy returns.
How have you positioned the portfolio in light of this global activity?
In the fall, the Fed cut short-term interest rates three times to stimulate the
economy, and dozens of central banks around the world followed suit. The result
of this concerted action was a major rally in stock markets, as well as a likely
continuation of moderate economic growth, at least in the United States.
5 Oppenheimer Cash Reserves
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
Although the Fed was able to stimulate economic growth here in America, much of
Europe is sluggish while most of Asia remains in a recession. As of January 31,
1999, inflation throughout the world remains extremely low by historical
standards. Unless the U.S. economy accelerates, interest rates are likely to
decline further, and so, we have extended the maturity of the portfolio to take
advantage of these rates. As interest rates decline, a portfolio of longer
maturity securities yielding higher rates translates into higher yields for our
investors.
Last but not least, we continue to be especially diligent in our analysis
of credit quality. During the period, we discontinued our investment in
securities issued by certain multinational banks with heavy exposure to Asia.
Have any other factors affected the way you manage the portfolio?
We've recently begun to focus on the "millennium problem," which may render many
computer systems unable to recognize the year 2000 when it arrives. In
particular, we're evaluating prospective investments based on how the issuers
position themselves for any potential exposure to this problem.
6 Oppenheimer Cash Reserves
<PAGE>
What is your outlook for the future?
As we move further into the year, our economic analysis calls for slower
economic growth, low inflation and modestly lower interest rates in the latter
part of 1999, all of which should help the performance of the overall bond
market. As money-market investors, we keenly follow the actions of the Federal
Reserve Board, which determines short-term interest rates for member banks.
While we have taken steps to protect the portfolio from additional interest rate
cuts, we believe that the buoyant U.S. stock market combined with strong
consumer spending will keep the Fed fairly inactive over the near term.
Although we will continue to search for yield, your objectives of safety,
liquidity and attractive yield will always come first. This is part of our
commitment to keep Oppenheimer Cash Reserves an important element of The Right
Way to Invest.
7 Oppenheimer Cash Reserves
<PAGE>
Financials
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8 Oppenheimer Cash Reserves
<PAGE>
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Statement of Investments January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
================================================================================================
<S> <C> <C>
Certificates of Deposit--0.9%
- ------------------------------------------------------------------------------------------------
Societe Generale, 5.80%, 3/31/99 $ 4,000,000 $ 4,000,991
================================================================================================
Direct Bank Obligations--1.2%
- ------------------------------------------------------------------------------------------------
Morgan Guaranty Trust Co. of New York, 4.889%, 3/1/99(1) 5,000,000 4,998,418
================================================================================================
Letters of Credit--6.2%
- ------------------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of:
Banca Serfin SA, Institucion de Banca Multiple Grupo
Financiero Serfin, Nassau Branch, 5.42%, 5/26/99 3,000,000 2,948,510
Nacional Financiera SNC, 5.47%, 2/17/99 5,000,000 4,987,844
Pactual Overseas Corp., 5.21%, 2/11/99 4,000,000 3,994,211
Petroleo Brasileiro SA, Series C, 5.05%, 3/30/99 3,000,000 2,976,013
- ------------------------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing commercial paper of:
Garanti Funding Corp., Series A, 5.10%, 4/29/99 5,000,000 4,938,375
Unibanco-Unia de Bancos Brasilieros SA, Series D, 5.05%, 4/16/99 7,000,000 6,927,336
------------
Total Letters of Credit 26,772,289
================================================================================================
Short-Term Notes--91.5%
- ------------------------------------------------------------------------------------------------
Asset-Backed--12.4%
Asset Backed Capital Finance, Inc., 5.50%, 2/16/99(2) 2,650,000 2,643,927
- ------------------------------------------------------------------------------------------------
Atlantis One Funding Corp., 5.17%, 4/28/99(2) 3,000,000 2,962,948
- ------------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc.:
Series A, 4.85%, 6/29/99 5,000,000 4,900,306
Series B, 5.50%, 2/3/99 5,000,000 4,998,472
- ------------------------------------------------------------------------------------------------
Falcon Asset Securitization Corp., 4.83%, 4/20/99(2) 5,000,000 4,947,675
- ------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
4.80%, 7/14/99(2) 10,000,000 9,782,667
4.95%, 6/14/99(2) 6,000,000 5,890,275
5.07%, 4/19/99(2) 5,000,000 4,945,779
- ------------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
4.77%, 8/2/99(2) 4,500,000 4,391,483
5.51%, 2/5/99(2) 5,000,000 4,996,939
5.52%, 2/10/99(2) 3,000,000 2,995,860
------------
53,456,331
- ------------------------------------------------------------------------------------------------
Automotive--3.0%
BMW US Capital Corp., 4.83%, 2/1/99 13,000,000 13,000,000
- ------------------------------------------------------------------------------------------------
Bank Holding Companies--8.5%
Bank One Corp., 5.09%, 3/26/99 7,000,000 6,947,545
- ------------------------------------------------------------------------------------------------
Bankers Trust Co., New York:
5.01%, 6/25/99-7/15/99 10,500,000 10,279,838
5.05%, 6/9/99 10,000,000 9,820,444
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J.P. Morgan & Co., Inc., 4.85%, 7/15/99 10,000,000 9,779,056
------------
36,826,883
</TABLE>
9 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Beverages--3.9%
Coca-Cola Enterprises, Inc.:
4.93%, 6/16/99(2) $ 7,000,000 $ 6,870,588
5.30%, 3/5/99(2) 5,000,000 4,976,444
5.51%, 2/10/99(2) 5,000,000 4,993,113
------------
16,840,145
- ------------------------------------------------------------------------------------------
Broker/Dealers--15.2%
Bear Stearns Cos., Inc.:
4.90%, 6/21/99 8,000,000 7,847,556
4.92%, 2/18/99(1) 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------
Goldman Sachs Group, LP:
5.10%, 3/18/99 6,000,000 5,961,750
5.10%, 3/22/99 7,000,000 6,951,408
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Merrill Lynch & Co., Inc.:
5.27%, 3/12/99 5,000,000 4,971,454
5.50%, 2/26/99 3,000,000 2,988,542
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Morgan Stanley Dean Witter & Co., 4.813%, 2/1/99(1) 10,000,000 10,000,000
- ------------------------------------------------------------------------------------------
NationsBank Corp., 5.012%, 2/1/99(1) 15,000,000 15,000,000
- ------------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
4.81%, 4/7/99 7,000,000 6,939,207
5.47%, 2/12/99 2,000,000 1,996,779
------------
65,656,696
- ------------------------------------------------------------------------------------------
Commercial Finance--13.6%
CIT Group Holdings, Inc.:
4.75%, 7/28/99 5,000,000 4,883,229
5.04%, 3/19/99 5,000,000 4,967,800
5.07%, 3/25/99 5,000,000 4,963,383
- ------------------------------------------------------------------------------------------
Countrywide Home Loans, 5.25%, 2/27/99(1) 10,000,000 10,000,000
- ------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
4.89%, 7/16/99 6,000,000 5,865,525
5.30%, 3/4/99 3,000,000 2,986,308
6.06%, 10/8/99 3,500,000 3,518,160
- ------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.289%, 3/8/99(1) 5,000,000 5,000,000
6.51%, 9/20/99 4,700,000 4,730,324
- ------------------------------------------------------------------------------------------
Safeco Credit Co.:
4.85%, 7/9/99 3,000,000 2,936,142
4.93%, 6/16/99 5,000,000 4,907,563
4.95%, 6/11/99 4,000,000 3,928,500
------------
58,686,934
</TABLE>
10 Oppenheimer Cash Reserves
<PAGE>
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Consumer Finance--3.0%
Sears Roebuck Acceptance Corp.:
4.90%, 6/23/99 $ 5,000,000 $ 4,903,361
5.43%, 2/26/99 8,000,000 7,969,833
------------
12,873,194
- ------------------------------------------------------------------------------------------
Diversified Financial--8.0%
General Motors Acceptance Corp.:
5.50%, 2/19/99 5,000,000 4,986,250
6.04%, 3/19/99 3,000,000 3,001,641
6.125%, 7/8/99 6,500,000 6,527,971
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Household Finance Corp., 5.438%, 3/9/99(1) 5,000,000 5,000,000
- ------------------------------------------------------------------------------------------
Household International, Inc.:
5.20%, 3/4/99(2) 10,000,000 9,955,222
5.21%, 2/3/99(2) 5,000,000 4,998,553
------------
34,469,637
- ------------------------------------------------------------------------------------------
Industrial Services--3.2%
Atlas Copco AB:
4.84%, 5/20/99(2) 11,000,000 10,840,280
5.36%, 2/19/99(2) 3,000,000 2,991,960
------------
13,832,240
- ------------------------------------------------------------------------------------------
Insurance--13.1%
AIG Life Insurance Co., 5.077%, 2/1/99(1)(3) 7,000,000 7,000,000
- ------------------------------------------------------------------------------------------
General American Life Insurance Co., 5.775%, 2/1/99(1) 15,000,000 15,000,000
- ------------------------------------------------------------------------------------------
Pacific Mutual Life Insurance Co., 4.975%, 2/2/99(1)(3) 5,000,000 5,000,000
- ------------------------------------------------------------------------------------------
Protective Life Insurance Co., 5.107%, 2/1/99(1) 10,000,000 10,000,000
- ------------------------------------------------------------------------------------------
Safeco Corp., 4.90%, 6/17/99 5,000,000 4,907,444
- ------------------------------------------------------------------------------------------
Security Benefit Life Insurance Co., 5.107%, 2/1/99(1) 10,000,000 10,000,000
- ------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 5.077%, 2/1/99(1) 5,000,000 5,000,000
------------
56,907,444
- ------------------------------------------------------------------------------------------
Leasing & Factoring--3.7%
American Honda Finance Corp., 4.971%, 4/26/99(1)(4) 7,000,000 6,996,636
- ------------------------------------------------------------------------------------------
International Lease Finance Corp.:
5.23%, 4/15/99(1) 5,000,000 5,005,494
6.625%, 4/1/99 4,000,000 4,007,676
------------
16,009,806
</TABLE>
11 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Oil: Domestic--1.6%
Fina Oil & Chemical Co., 4.90%, 7/13/99(2) $ 7,000,000 $ 6,845,650
- ------------------------------------------------------------------------------------------
Special Purpose Financial--2.3%
RACERS, Series 1998-MM-3-5:
5.067%, 2/1/99(1)(3) 5,000,000 5,000,000
5.077%, 2/1/99(1)(3) 5,000,000 5,000,000
------------
10,000,000
------------
Total Short-Term Notes 395,404,960
- ------------------------------------------------------------------------------------------
Total Investments, at Value 99.8% 431,176,658
- ------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.2 893,647
------------ ------------
Net Assets 100.0% $432,070,305
============ ============
</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, 1999. This instrument may
also have a demand feature which allows, on up to 30 days' notice, the recovery
of principal at any time, or at specified intervals not exceeding one year.
Maturity date shown represents effective maturity based on variable rate and, if
applicable, demand feature.
2. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $96,029,363 or 22.23% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Trustees.
3. Represents a restricted security which is considered illiquid, by virtue of
the absence of a readily available market or because of legal or contractual
restrictions on resale. Such securities amount to $22,000,000 or 5.09% 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.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $6,996,636 or 1.62% of the Fund's net
assets as of January 31, 1999.
See accompanying Notes to Financial Statements.
12 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
================================================================================================
Assets
Investments, at value--see accompanying statement $431,176,658
- ------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 4,181,760
Interest 1,268,283
Other 107,016
------------
Total assets 436,733,717
================================================================================================
Liabilities
Bank overdraft 365,200
- ------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 3,624,093
Dividends 316,652
Transfer and shareholder servicing agent fees 194,187
Distribution and service plan fees 40,632
Other 122,648
------------
Total liabilities 4,663,412
================================================================================================
Net Assets $432,070,305
============
================================================================================================
Composition of Net Assets
Paid-in capital $432,072,490
- ------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (2,185)
------------
Net assets $432,070,305
============
================================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $241,931,381 and 241,991,017 shares of beneficial interest outstanding) $1.00
- ------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $155,511,798 and
155,509,689 shares of beneficial interest outstanding) $1.00
- ------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $34,627,126 and
34,626,454 shares of beneficial interest outstanding) $1.00
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
===============================================================================
Investment Income
Interest $ 11,786,328
===============================================================================
Expenses
Management fees--Note 3 1,042,834
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 3:
Class A 228,694
Class B 599,448
Class C 126,728
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 758,379
- -------------------------------------------------------------------------------
Registration and filing fees 121,553
- -------------------------------------------------------------------------------
Shareholder reports 88,026
- -------------------------------------------------------------------------------
Custodian fees and expenses 15,302
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 6,447
- -------------------------------------------------------------------------------
Insurance expenses 2,474
- -------------------------------------------------------------------------------
Trustees' compensation 1,158
- -------------------------------------------------------------------------------
Other 22,327
------------
Total expenses 3,013,370
Less expenses paid indirectly--Note 3 (8,494)
------------
Net expenses 3,004,876
===============================================================================
Net Investment Income 8,781,452
===============================================================================
Net Realized Gain on Investments 2,810
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 8,784,262
============
See accompanying Notes to Financial Statements.
14 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1999 Year Ended
(Unaudited) July 31, 1998
=========================================================================================
<S> <C> <C>
Operations
Net investment income $ 8,781,452 $ 11,848,711
- -----------------------------------------------------------------------------------------
Net realized gain 2,810 522
------------- -------------
Net increase in net assets resulting from operations 8,784,262 11,849,233
=========================================================================================
Dividends and Distributions to Shareholders
Class A (5,071,476) (8,374,810)
Class B (3,061,060) (2,871,927)
Class C (648,916) (601,974)
=========================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 31,452,864 37,506,804
Class B 75,506,159 25,995,434
Class C 16,525,816 8,976,542
=========================================================================================
Net Assets
Total increase 123,487,649 72,479,302
- -----------------------------------------------------------------------------------------
Beginning of period 308,582,656 236,103,354
------------- -------------
End of period $ 432,070,305 $ 308,582,656
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
Six Months
Ended
January 31, Year Ended July 31,
1999 (Unaudited) 1998 1997 1996(1)
============================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain .02 .04 .04 .03
Dividends and distributions to shareholders (.02) (.04) (.04) (.03)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
============================================================================================================
Total Return(2) 2.20% 4.61% 4.41% 2.68%
============================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $241,931 $210,477 $172,970 $170,031
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $230,461 $186,795 $179,948 $149,889
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.37%(3) 4.48% 4.33% 4.47%(3)
Expenses(4) 1.16%(3) 1.28% 1.29% 1.06%(3)
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
2. 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.
16 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
------------------------ -----------------------------------------------------
Six Months
Ended
Year Ended December 31, January 31, Year Ended July 31,
1995 1994 1999 (Unaudited) 1998 1997 1996(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 .05 .03 .02 .04 .04 .02
Dividends and distributions to shareholders (.05) (.03) (.02) (.04) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
================================================================================================================================
Total Return(2) 4.84% 3.22% 1.92% 3.98% 3.82% 2.35%
================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $148,529 $99,361 $155,512 $80,005 $54,009 $85,573
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $105,349 $87,908 $158,968 $73,003 $67,333 $49,226
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.71% 3.25% 3.82%(3) 3.93% 3.78% 3.91%(3)
Expenses(4) 1.36% 1.32% 1.71%(3) 1.83% 1.84% 1.61%(3)
</TABLE>
3. Annualized.
4. Beginning in fiscal 1995, the expense ratios reflect the effect of expenses
paid indirectly by the Fund. Prior year expenses have not been adjusted.
17 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
Class B (continued)
----------------------
Year Ended December 31,
1995 1994
=======================================================================
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00
- -----------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain .04 .03
Dividends and distributions to shareholders (.04) (.03)
- -----------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00
===== =====
=======================================================================
Total Return(2) 4.26% 2.54%
=======================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $37,378 $46,803
- -----------------------------------------------------------------------
Average net assets (in thousands) $35,360 $21,262
- -----------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.15% 3.05%
Expenses(4) 1.92% 1.89%
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
2. 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.
18 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------------------------------
Six Months
Ended
January 31, Year Ended July 31, Year Ended December 31,
1999 (Unaudited) 1998 1997 1996(1) 1995 1994
==================================================================================================================================
<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 .02 .04 .04 .02 .04 .02
Dividends and distributions to shareholders (.02) (.04) (.04) (.02) (.04) (.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
==================================================================================================================================
Total Return(2) 1.91% 3.99% 3.84% 2.35% 4.21% 2.51%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $34,627 $18,101 $9,125 $11,717 $5,024 $5,604
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $33,621 $15,297 $10,930 $6,333 $6,040 $2,107
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.83%(3) 3.94% 3.78% 3.91%(3) 4.12% 3.19%
Expenses(4) 1.71%(3) 1.83% 1.85% 1.61%(3) 1.97% 1.90%
</TABLE>
3. Annualized.
4. Beginning in fiscal 1995, the expense ratios reflect the effect of expenses
paid indirectly by the Fund. Prior year expenses have not been adjusted.
See accompanying Notes to Financial Statements.
19 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
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. The Fund seeks to achieve this
objective by investing in money market securities meeting specified quality
standards. The Fund's investment advisor 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 that class and exclusive voting rights with respect to matters
affecting that 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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income 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.
20 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
================================================================================
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, 1999 Year Ended July 31, 1998
--------------------------------- ------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 374,895,754 $ 374,895,754 724,810,258 $ 724,810,258
Dividends and
distributions reinvested 4,783,105 4,783,105 7,669,695 7,669,695
Redeemed (348,225,995) (348,225,995) (694,973,149) (694,973,149)
------------- ------------- ------------- -------------
Net increase 31,452,864 $ 31,452,864 37,506,804 $ 37,506,804
============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------
Class B:
Sold 315,226,827 $ 315,226,827 298,115,568 $ 298,115,568
Dividends and
distributions reinvested 2,547,737 2,547,737 2,362,655 2,362,655
Redeemed (242,268,405) (242,268,405) (274,482,789) (274,482,789)
------------- ------------- ------------- -------------
Net increase 75,506,159 $ 75,506,159 25,995,434 25,995,434
============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------
Class C:
Sold 151,966,094 $ 151,966,094 166,744,272 $ 166,744,272
Dividends and
distributions reinvested 551,288 551,288 490,146 490,146
Redeemed (135,991,566) (135,991,566) (158,257,876) (158,257,876)
------------- ------------- ------------- -------------
Net increase 16,525,816 $ 16,525,816 8,976,542 $ 8,976,542
============= ============= ============= =============
</TABLE>
21 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
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% of the first
$250 million of average annual net assets, 0.475% of the next $250 million,
0.45% of the next $250 million, 0.425% of the next $250 million and 0.40% of
average annual net assets in excess of $1 billion. The Fund's management fees
for the six months ended January 31, 1999 was 0.49% of the average annual net
assets of Class A, Class B and Class C shares.
Sales charges advanced to broker/dealers by OFDI on sales of the
Fund's Class B and Class C shares totaled $355,442 and $23,453, respectively.
Amounts paid to an affiliated broker/dealer for Class B and Class C shares were
$16,976 and $1,129, respectively. During the six months ended January 31, 1999,
OFDI received contingent deferred sales charges of $1,100 upon redemption of
Class B shares as reimbursement for sales commissions advanced by OFDI at the
time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund and other Oppenheimer
funds. OFS's total costs of providing such services are allocated ratably to
these funds.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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 shareholder 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, 1999, OFDI paid
$49,753 to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
The Fund has adopted Distribution and Service Plans for Class B and
Class C shares to compensate OFDI for its 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,
for its services rendered in distributing Class B and Class C shares. OFDI is
also authorized to receive a service fee of 0.25% per year to compensate dealers
providing personal services for accounts that hold Class B and Class C shares.
At present, these service fees are set at zero for Class B and Class C shares.
Each fee is computed on the average annual net assets of Class B or Class C
shares, determined as of the close of each regular business day. During the six
months ended January 31, 1999, OFDI retained $599,518 and $126,913,
respectively, as compensation for Class B and Class C sales commissions and
service fee advances, as well as financing costs. If either Plan is terminated
by the Fund, the Board of Trustees may allow the Fund to continue payments of
the asset-based sales charge to OFDI for distributing shares before the Plan was
terminated.
22 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
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, Trustee, Vice President, Treasurer and
Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
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, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
23 Oppenheimer Cash Reserves
<PAGE>
Internet
24-hr access to account
information. Online
trans actions now available
- ---------------------------
www.oppenheimerfunds.com
- ---------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ---------------------------
1-800-525-7048
- ---------------------------
Account Transactions
Mon-Fri 8:30am-8pm ET
- ---------------------------
1-800-852-8457
- ---------------------------
PhoneLink
24-hr automated information
and automated transactions
- ---------------------------
1-800-533-3310
- ---------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
- ---------------------------
Information and services
- --------------------------------------------------------------------------------
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 or by visiting our website. 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 or website 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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
RS0760.001.0199 April 1, 1999
