<PAGE>
-----------------------------------
ANNUAL REPORT JULY 31, 1999
-----------------------------------
OPPENHEIMER
CASH
RESERVES
[GRAPHIC]
[LOGO]
OPPENHEIMERFUNDS-Registered Trademark-
THE RIGHT WAY TO INVEST
<PAGE>
CONTENTS
3 President's Letter
5 An Interview with Your Fund's Managers
- ----------------------------------------------------
10 Financial Statements
26 Independent Auditors' Report
- ----------------------------------------------------
27 Federal Income Tax Information
28 Officers and Trustees
32 Information and Services
Report HIGHLIGHTS
- --------------------------------------------------------------------------------
- - FOLLOWING THE FEDERAL RESERVE'S SHORT-TERM INTEREST RATE INCREASE IN JUNE,
money market yields rose about 10 basis points to reflect the new environment.
- - THE CURRENT QUESTION CENTERS AROUND whether or not we have seen the last
interest rate hike for the year.
- - WE EXPECT SLOWER GROWTH in the United States for the remainder of 1999.
<TABLE>
<CAPTION>
CURRENT YIELD
For the 7-day Period Ended 7/31/99
<S> <C>
CLASS A
With Without
Compounding(1) Compounding
- --------------------------------
4.25% 4.16%
- --------------------------------
CLASS B
With Without
Compounding(1) Compounding
- --------------------------------
3.65% 3.59%
- --------------------------------
CLASS C
With Without
Compounding(1) Compounding
- --------------------------------
3.67% 3.61%
- --------------------------------
</TABLE>
IN REVIEWING PERFORMANCE, PLEASE REMEMBER THAT PAST PERFORMANCE DOES NOT
GUARANTEE FUTURE RESULTS. YIELDS WILL FLUCTUATE. AN INVESTMENT IN THE FUND IS
NOT INSURED NOR 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,
- -------------------------------------------------------------------------------
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth stocks,
which has driven the market's advance over the past few years, has begun to
moderate, and many previously out-of-favor value-oriented, mid-cap and small-cap
stocks have rallied. At the same time, a healthy percentage of actively managed,
diversified portfolios have once again begun to outperform unmanaged stock
indices such as Standard & Poor's 500.
(OVER, PLEASE)
3 Oppenheimer Cash Reserves
<PAGE>
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against inflation.
In our view, history has repeatedly demonstrated that most financial assets do
best in a low-inflation environment. What's more, we believe that the move to
higher interest rates should be temporary.
One recent development IS quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue, we
are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industry-wide tests. We
intend to continue re-testing our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds THE RIGHT WAY TO INVEST.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
August 20, 1999
4 Oppenheimer Cash Reserves
<PAGE>
An INTERVIEW with your Fund's managers
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
Oppenheimer Cash Reserves, which invests in certificates of deposit, letters of
credit, commercial paper, U.S. government securities and other money market
instruments, produced returns that reflected a dramatically changing economic
environment. For the fiscal year that ended July 31, 1999, Oppenheimer Cash
Reserves' Class A shares produced a compounded annual yield of 4.32%. Without
compounding, the corresponding yield was 4.22%. The seven-day annualized yields,
with and without compounding, on July 31, 1999, were 4.25% and 4.16%,
respectively.(1) It is important to remember that 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 $1.00 share price in the future.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
5 Oppenheimer Cash Reserves
<PAGE>
"We weren't surprised when the Fed raised the Fed Funds rate this summer.
However, now the question to ask is WHETHER OR NOT THE FED WILL CONTINUE TO
RAISE RATES."
An INTERVIEW with your Fund's managers
- --------------------------------------------------------------------------------
WHAT ECONOMIC FACTORS IMPACTED THE PORTFOLIO?
The fiscal year that ended July 31, 1999, encompassed two very different
economic pictures. The first picture included the fear of global recession and
deflation, which began with the Asian financial crisis in 1997 and intensified
in the summer of 1998. The crisis then spread to Russia, which was forced to
devalue its currency. These circumstances combined to produce a surge in demand
for the safety and liquidity of U.S. government securities. The Federal Reserve
Board (the Fed) lowered short-term interest rates last fall to keep the U.S.
economy from submitting to the crisis. (A lower-interest-rate environment
typically stimulates the economy because it makes it more cost-effective for
companies to borrow money to finance their operations.) Central banks in Europe,
Asia and Latin America followed suit, and a recession was prevented in much of
the world.
The second picture began to form in early 1999. While the rest of the world
struggled to generate economic growth, the U.S. economy remained strong.
However, too much economic growth can lead to inflation. So, with the Asian
economic crisis receding into the background and oil prices rebounding,
inflation fears were rekindled, leading the Fed to raise short-term interest
rates in June. Money market yields rose about 10 basis points to reflect the new
environment.
6 Oppenheimer Cash Reserves
<PAGE>
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
Our investment strategy for the Fund is to manage maturity by "laddering" the
portfolio, rather than trying to predict interest rates. That is, we diversify
the Fund by investing in securities that span a wide array of maturities. If
interest rates follow their current trend and continue to rise, then we own a
significant number of securities that mature quickly, which would enable us to
quickly reinvest at higher prevailing rates. If interest rates fall, then we
also own a significant number of securities offering higher yields.
HAS CONCERN SURROUNDING THE Y2K ISSUE AFFECTED YOUR INVESTMENT STRATEGY?
Yes. Many well-known companies have issued short-term debt, known as commercial
paper, that comes due in early January 2000. Because of the uncertainty
surrounding potential Y2K computer problems, the yields these securities offer
are unusually high. However, we believe that these securities entail greater
risk since computer problems could delay payment for investors. Instead, we have
opted to invest in commercial paper that matures later in January. We believe
that this decision is the prudent way to manage the Fund through this transition
period.
7 Oppenheimer Cash Reserves
<PAGE>
An INTERVIEW with your Fund's managers
- --------------------------------------------------------------------------------
WHAT IS YOUR OUTLOOK FOR THE ECONOMY AND FOR THE FUND?
We remain cautiously optimistic about the economy. Not many people were
surprised when the Fed raised the Fed Funds rate this summer. However, the
current question centers around whether or not the Fed will continue to raise
rates. Of course, any future action by the Fed will depend upon the strength of
the U.S. economy. With that said, we expect somewhat slower growth for the
remainder of 1999, due to a strong U.S. dollar, higher oil prices, and
eventually, an increase in the U.S. savings rate.
As always, we intend to continue monitoring the economic environment
carefully and will modify portfolio holdings accordingly. We believe that these
risk-averse strategies make Oppenheimer Cash Reserves an important part of THE
RIGHT WAY TO INVEST.
8 Oppenheimer Cash Reserves
<PAGE>
FINANCIALS
- -------------------------------------------------------------------------------
9 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS July 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
<S> <C> <C>
DIRECT BANK OBLIGATIONS--4.3%
- ----------------------------------------------------------------------------------------
Credit Suisse First Boston, 4.83%, 9/8/99(1) $ 7,500,000 $ 7,461,762
- ----------------------------------------------------------------------------------------
FCC National Bank, 4.94%, 11/1/99 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------
Morgan Guaranty Trust Co. of New York, 5.126%, 8/27/99(2) 5,000,000 4,999,621
-----------
Total Direct Bank Obligations 22,461,383
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
LETTERS OF CREDIT--8.1%
- ----------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of Nacional
Financiera SNC:
4.84%, 8/16/99 6,500,000 6,486,892
4.97%, 11/18/99 10,000,000 9,849,519
- ----------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of United
Mexican States, 4.97%, 11/17/99 7,000,000 6,894,370
- ----------------------------------------------------------------------------------------
Credit Suisse First Boston, guaranteeing commercial paper of
Credit Suisse First Boston International (Guernsey) Ltd.,
4.87%, 9/16/99 7,000,000 6,956,441
- ----------------------------------------------------------------------------------------
Credit Suisse First Boston, guaranteeing commercial paper of
Daewoo International (America) Corp., 4.98%, 9/23/99 7,000,000 6,948,678
- ----------------------------------------------------------------------------------------
First Chicago NBD Corp., guaranteeing commercial paper of
First Chicago Financial Corp., 4.85%, 9/16/99 5,000,000 4,969,014
-----------
Total Letters of Credit 42,104,914
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
SHORT-TERM NOTES--85.8%
- ----------------------------------------------------------------------------------------
ASSET-BACKED--24.3%
Asset Backed Capital Finance, Inc.:
4.88%, 8/25/99(1) 5,000,000 4,983,733
5.14%, 9/8/99(1) 10,000,000 9,945,744
- ----------------------------------------------------------------------------------------
Asset Securitization Cooperative, 5.25%, 8/27/99(1) 10,000,000 9,962,083
- ----------------------------------------------------------------------------------------
Atlantis One Funding Corp., 4.93%, 11/18/99(1) 10,000,000 9,850,730
- ----------------------------------------------------------------------------------------
Beta Finance, Inc.:
4.83%, 10/8/99(1) 6,000,000 5,945,260
4.84%, 8/17/99(1) 6,500,000 6,486,018
4.87%, 8/24/99(1) 2,000,000 1,993,777
- ----------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc.:
Series A, 4.87%, 9/22/99 6,000,000 5,957,793
Series B, 4.88%, 9/20/99 4,100,000 4,072,211
Series B, 5.17%, 8/6/99 6,000,000 5,995,692
- ----------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc., 5.11%, 9/20/99(1) 10,000,000 9,929,028
- ----------------------------------------------------------------------------------------
Eureka Securitization, Inc., 5.15%, 9/20/99(1) 10,000,000 9,928,472
- ----------------------------------------------------------------------------------------
Moat Funding LLC, 5%, 8/30/99(1) 12,500,000 12,449,653
</TABLE>
10 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED (CONTINUED)
New Center Asset Trust, 5.17%, 10/28/99 $ 9,000,000 $ 8,886,260
- ----------------------------------------------------------------------------------------
Park Avenue Receivables Corp., 5.33%, 9/9/99(1) 5,000,000 4,971,129
- ----------------------------------------------------------------------------------------
Preferred Receivables Funding Corp., 5.17%, 10/13/99(1) 10,135,000 10,028,749
- ----------------------------------------------------------------------------------------
Sigma Finance, Inc., 4.77%, 8/2/99(1) 4,500,000 4,499,404
-----------
125,885,736
- ----------------------------------------------------------------------------------------
BANK HOLDING COMPANIES--2.2%
Bank One Corp., 5.18%, 11/12/99 8,000,000 7,881,436
- ----------------------------------------------------------------------------------------
Bankers Trust Co., New York, 4.97%, 11/10/99 3,700,000 3,648,409
-----------
11,529,845
- ----------------------------------------------------------------------------------------
BEVERAGES--3.3%
Coca-Cola Enterprises, Inc.:
5.18%, 10/4/99(1) 10,000,000 9,907,911
5.47%, 1/28/00(1) 7,500,000 7,294,875
-----------
17,202,786
- ----------------------------------------------------------------------------------------
BROKER/DEALERS--8.0%
Bear Stearns Cos., Inc.:
5.24%, 8/18/99(2) 3,000,000 3,000,000
5.284%, 8/5/99(2) 6,000,000 6,003,089
- ----------------------------------------------------------------------------------------
Goldman Sachs Group LP, 5.364%, 9/28/99(1)(2) 10,000,000 10,003,859
- ----------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co., 5.125%, 9/13/99(2) 7,300,000 7,300,000
- ----------------------------------------------------------------------------------------
NationsBanc Montgomery Securities LLC, 5.325%, 8/2/99(2) 15,000,000 15,000,000
-----------
41,306,948
- ----------------------------------------------------------------------------------------
CHEMICALS--1.0%
Henkel Corp., 4.88%, 8/27/99(1) 5,000,000 4,982,378
- ----------------------------------------------------------------------------------------
COMMERCIAL FINANCE--9.3%
Countrywide Home Loans, 5.042%, 8/30/99(2) 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------
FINOVA Capital Corp.:
4.91%, 9/22/99 4,000,000 3,971,631
4.98%, 9/9/99 1,000,000 994,605
5.55%, 2/3/00 6,000,000 5,827,950
6.06%, 10/8/99 3,500,000 3,504,959
- ----------------------------------------------------------------------------------------
Heller Financial, Inc.:
4.90%, 8/12/99 5,000,000 4,992,468
5.149%, 9/9/99(2) 5,000,000 5,000,000
5.271%, 9/1/99(2) 5,000,000 5,003,425
6.51%, 9/20/99 4,700,000 4,706,564
- ----------------------------------------------------------------------------------------
Safeco Credit Co., 5.16%, 9/17/99 4,000,000 3,973,053
-----------
47,974,655
</TABLE>
11 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER FINANCE--1.9%
Sears Roebuck Acceptance Corp., 5.16%, 10/21/99 $10,000,000 $ 9,883,900
- ----------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.0%
Associates Corp. of North America, 7.90%, 10/26/99 7,500,000 7,549,484
- ----------------------------------------------------------------------------------------
General Electric Capital Corp., 5.13%, 8/2/99 23,500,000 23,496,651
-----------
31,046,135
- ----------------------------------------------------------------------------------------
DIVERSIFIED MEDIA--2.9%
Omnicom Finance, Inc.:
5.14%, 8/17/99(1) 5,000,000 4,988,578
5.15%, 8/9/99(1) 10,000,000 9,988,555
-----------
14,977,133
- ----------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.0%
Atlas Copco AB, 4.98%, 11/1/99(1) 5,000,000 4,936,367
- ----------------------------------------------------------------------------------------
INSURANCE--14.2%
Aegon Funding Corp.:
5.17%, 11/3/99 7,000,000 6,905,504
5.19%, 11/22/99 10,000,000 9,837,092
- ----------------------------------------------------------------------------------------
AIG Life Insurance Co., 5.22%, 8/2/99(2)(3) 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------
General American Life Insurance Co., 5.24%, 8/2/99(2)(3) 15,000,000 15,000,000
- ----------------------------------------------------------------------------------------
Pacific Mutual Life Insurance Co., 5.099%, 8/2/99(2)(3) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------
Protective Life Insurance Co.:
5.25%, 8/2/99(2) 5,000,000 5,000,000
5.27%, 8/2/99(2) 10,000,000 10,000,000
5.27%, 8/2/99(2) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------
Security Benefit Life Insurance Co., 5.27%, 8/2/99 10,000,000 10,000,000
-----------
73,742,596
- ----------------------------------------------------------------------------------------
LEASING & FACTORING--1.3%
American Honda Finance Corp., 5.288%, 10/25/99(2) 7,000,000 6,998,337
- ----------------------------------------------------------------------------------------
MANUFACTURING--2.3%
Eaton Corp., 4.99%, 9/17/99 12,000,000 11,921,823
- ----------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--5.6%
Intrepid Funding Corp.:
4.85%, 8/5/99(1) 6,334,000 6,330,587
4.85%, 11/12/99(1) 8,000,000 7,888,989
- ----------------------------------------------------------------------------------------
KZH-KMS Corp., 5.20%, 10/7/99(1) 10,000,000 9,903,222
- ----------------------------------------------------------------------------------------
RACERS, Series 1998-MM-3-5, 5.226%, 8/2/99(2)(3) 5,000,000 5,000,000
-----------
29,122,798
</TABLE>
12 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS: TECHNOLOGY--2.5%
GTE Corp., 5.135%, 9/13/99(2) $13,000,000 $ 12,992,775
------------
Total Short-Term Notes 444,504,212
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 98.2% 509,070,509
- -----------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.8 9,250,341
----------- ------------
NET ASSETS 100.0% $518,320,850
----------- ------------
----------- ------------
</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. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $184,660,863, or 35.63% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Trustees.
2. 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 July 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.
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 $32,000,000 or 6.17% 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.
13 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value--see accompanying statement $509,070,509
- -------------------------------------------------------------------------------
Cash 278,602
- -------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 13,306,542
Interest 1,248,724
Other 69,720
------------
Total assets 523,974,097
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 4,660,992
Dividends 674,633
Transfer and shareholder servicing agent fees 150,437
Shareholder reports 75,249
Distribution and service plan fees 45,141
Other 46,795
------------
Total liabilities 5,653,247
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS $518,320,850
------------
------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $518,320,459
- -------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 391
------------
Net assets $518,320,850
------------
------------
</TABLE>
14 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value, redemption price and offering price
per share (based on net assets of $264,631,915 and
264,690,190 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 $204,081,474 and
204,078,414 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 $49,607,461and
49,606,525 shares of beneficial interest outstanding) $1.00
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended July 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 24,075,156
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
EXPENSES
Management fees--Note 3 2,211,132
- ------------------------------------------------------------------------------
Distribution and service plan fees--Note 3:
Class A 483,594
Class B 1,273,035
Class C 278,656
- ------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,416,706
- ------------------------------------------------------------------------------
Shareholder reports 203,350
- ------------------------------------------------------------------------------
Registration and filing fees 171,727
- ------------------------------------------------------------------------------
Custodian fees and expenses 21,530
- ------------------------------------------------------------------------------
Legal, auditing and other professional fees 13,934
- ------------------------------------------------------------------------------
Insurance expenses 4,578
- ------------------------------------------------------------------------------
Trustees' compensation 2,236
- ------------------------------------------------------------------------------
Other 34,787
------------
Total expenses 6,115,265
Less expenses paid indirectly--Note 1 (11,553)
------------
Net expenses 6,103,712
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 17,971,444
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 5,386
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 17,976,830
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
1999 1998
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 17,971,444 $ 11,848,711
- ---------------------------------------------------------------------------------------------------
Net realized gain 5,386 522
------------- -------------
Net increase in net assets resulting from operations 17,976,830 11,849,233
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Class A (10,360,549) (8,374,810)
Class B (6,243,315) (2,871,927)
Class C (1,367,580) (601,974)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 54,152,037 37,506,804
Class B 124,074,884 25,995,434
Class C 31,505,887 8,976,542
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 209,738,194 72,479,302
- ---------------------------------------------------------------------------------------------------
Beginning of period 308,582,656 236,103,354
------------- -------------
End of period $ 518,320,850 $ 308,582,656
------------- -------------
------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1999 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 .04 .04 .04 .03 .05 .03
Dividends and distributions
to shareholders (.04) (.04) (.04) (.03) (.05) (.03)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.30% 4.61% 4.41% 2.68% 4.84% 3.22%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $264,632 $210,477 $172,970 $170,031 $148,529 $99,361
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $245,622 $186,795 $179,948 $149,889 $105,349 $87,908
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.22% 4.48% 4.33% 4.47% 4.71% 3.25%
Expenses 1.10% 1.28%(4) 1.29%(4) 1.06%(4) 1.36%(4) 1.32%
</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 $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
18 Oppenheimer Cash Reserves
<PAGE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1999 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 .04 .04 .04 .02 .04 .03
Dividends and distributions
to shareholders (.04) (.04) (.04) (.02) (.04) (.03)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.72% 3.98% 3.82% 2.35% 4.26% 2.54%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $204,081 $80,005 $54,009 $85,573 $37,378 $46,803
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $170,068 $73,003 $67,333 $49,226 $35,360 $21,262
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 3.67% 3.93% 3.78% 3.91% 4.15% 3.05%
Expenses 1.65% 1.83%(4) 1.84%(4) 1.61%(4) 1.92%(4) 1.89%
</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 $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
19 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JULY 31, DECEMBER 31,
1999 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 .04 .04 .04 .02 .04 .02
Dividends and distributions
to shareholders (.04) (.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) 3.73% 3.99% 3.84% 2.35% 4.21% 2.51%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $49,607 $18,101 $9,125 $11,717 $5,024 $5,604
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $37,244 $15,297 $10,930 $6,333 $6,040 $2,107
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 3.67% 3.94% 3.78% 3.91% 4.12% 3.19%
Expenses 1.65% 1.83%(4) 1.85%(4) 1.61%(4) 1.97%(4) 1.90%
</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 $1,000 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.
3. Annualized for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
See accompanying Notes to Financial Statements.
20 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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 (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C have separate distribution and/or service plans. Class
B shares will automatically convert to Class A shares six years after the date
of purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
- -------------------------------------------------------------------------------
SECURITIES VALUATION. 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.
- -------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
21 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS(Continued)
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- -------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date. 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>
YEAR ENDED JULY 31, 1999 YEAR ENDED JULY 31, 1998
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 815,693,381 $ 815,693,381 724,810,258 $ 724,810,258
Dividends and/or
distributions reinvested 9,563,996 9,563,996 7,669,695 7,669,695
Redeemed (771,105,340) (771,105,340) (694,973,149) (694,973,149)
------------ ------------- ------------ -------------
Net increase 54,152,037 $ 54,152,037 37,506,804 $ 37,506,804
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
- -------------------------------------------------------------------------------------------
Class B:
Sold 621,748,556 $ 621,748,556 298,115,568 $ 298,115,568
Dividends and/or
distributions reinvested 5,154,276 5,154,276 2,362,655 2,362,655
Redeemed (502,827,948) (502,827,948) (274,482,789) (274,482,789)
------------ ------------- ------------ -------------
Net increase 124,074,884 $ 124,074,884 25,995,434 $ 25,995,434
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
- -------------------------------------------------------------------------------------------
Class C:
Sold 342,809,992 $ 342,809,992 166,744,272 $ 166,744,272
Dividends and/or
distributions reinvested 1,147,452 1,147,452 490,146 490,146
Redeemed (312,451,557) (312,451,557) (158,257,876) (158,257,876)
------------ ------------- ------------ -------------
Net increase 31,505,887 $ 31,505,887 8,976,542 $ 8,976,542
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
22 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.50% of
the first $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 fee for the year ended July 31, 1999 was 0.49% of the average annual
net assets for each class of shares.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
COMMISSIONS COMMISSIONS COMMISSIONS
ON CLASS A ON CLASS B ON CLASS C
SHARES SHARES SHARES
ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 1999 $-- $808,752 $35,422
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
July 31, 1999 $3,205 $7,093 $7,759
</TABLE>
23 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.20% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.20% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended July 31, 1999, payments under the
Class A Plan totaled $483,594, all of which was paid by the Distributor to
recipients. That included $105,867 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
- -------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid. At present the service fee
paid on Class B and Class C shares by the Fund to the Distributor and by the
Distributor to dealers is set at zero.
The Distributor retains the asset-based sales charge on Class B
shares. The Distributor retains the asset-based sales charge on Class C shares
during the first year the shares are outstanding. The asset-based sales charges
on Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
24 Oppenheimer Cash Reserves
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Distributor's actual expenses in selling Class B and Class C shares may be
more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended July 31, 1999, were
as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S
AGGREGATE
UNREIMBURSED
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES
CLASS UNDER PLAN BY DISTRIBUTOR UNDER PLAN
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class B Plan $1,273,035 $1,272,990 $--
- ---------------------------------------------------------------------------------------
Class C Plan $ 278,656 $ 278,567 $--
</TABLE>
25 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Cash Reserves:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Cash Reserves as of July 31, 1999,
the related statement of operations for the year then ended, the statements of
changes in net assets for the years ended July 31, 1999 and 1998 and the
financial highlights for the period January 1, 1994, to July 31, 1999. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of Oppenheimer
Cash Reserves as of July 31, 1999, the results of its operations, the changes in
its net assets, and the financial highlights for the respective stated periods,
in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
August 20, 1999
26 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
In early 2000, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended
July 31, 1999, are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
27 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
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Vice President and Treasurer
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche LLP
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
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.
28 Oppenheimer Cash Reserves
<PAGE>
- --------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
REAL ASSET FUNDS
- -----------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
GLOBAL STOCK FUNDS
- -----------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
STOCK FUNDS
- -----------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
STOCK & BOND FUNDS
- -----------------------------------------------------------------------------------------
Main Street-Registered Total Return Fund Multiple Strategies Fund
Trademark- Growth & Quest Balanced Disciplined Allocation Fund
Income Fund(1) Value Fund Convertible Securities Fund
Quest Opportunity Capital Income Fund(2)
Value Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
TAXABLE BOND FUNDS
- -----------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
MUNICIPAL BOND FUNDS
- -----------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) ROCHESTER DIVISION:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
MONEY MARKET FUNDS(4)
- -----------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 12/22/98, the Fund's name was changed from "Oppenheimer Main Street Income
& Growth Fund."
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
- -C- Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
29 Oppenheimer Cash Reserves
<PAGE>
This page is intentionally left blank.
<PAGE>
--------------------------------------
INFORMATION AND SERVICES
--------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website -- we're here to
help.
INTERNET
24-hr access to account information and transactions
- --------------------------------------------------------------------------------
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
- --------------------------------------------------------------------------------
1-800-525-7048
- --------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
- --------------------------------------------------------------------------------
1-800-852-8457
- --------------------------------------------------------------------------------
PHONELINK
24-hr automated information
and automated transactions
- --------------------------------------------------------------------------------
1-800-533-3310
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-6pm ET
- --------------------------------------------------------------------------------
1-800-843-4461
- --------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
- --------------------------------------------------------------------------------
1-800-835-3104
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services,
P.O. Box 5270, Denver, CO 80217-5270
[LOGO]
OPPENHEIMERFUNDS-REGISTERED TRADEMARK-
DISTRIBUTOR, INC.
RA0760.001.0799 September 29, 1999
