<PAGE> 1
SEMIANNUAL REPORT JANUARY 31, 2000
OPPENHEIMER
CASH RESERVES
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's Managers
6 Financial
Statements
21 Officers and Trustees
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
MONEY MARKET RETURNS WERE GENERALLY HIGHER THAN THE YIELDS REPORTED ONE YEAR
AGO, primarily because of higher short-term interest rates during the
reporting period.
CONSISTENT WITH MAINTAINING LIQUIDITY AND PRESERVING CAPITAL, we generally
found the most attractive yields in high-quality asset-backed commercial
paper.
CURRENT YIELD
For the 7-Day Period
Ended 1/31/00*
Class A
With Without
Compounding Compounding
5.04% 4.92%
Class B
With Without
Compounding Compounding
4.50% 4.40%
Class C
With Without
Compounding Compounding
4.34% 4.25%
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
1. See page 5 for further details.
<PAGE> 3
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
[PHOTE][PHOTO]
JAMES C. SWAIN
Chairman
Oppenheimer
Cash Reserves
BRIDGET A. MACASKILL
President
Oppenheimer
Cash Reserves
DEAR SHAREHOLDER,
Whenever a new year begins--let alone a new decade or century--it makes
sense to pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices
generally declined in 1999, led lower by U.S. Treasury bonds. In the stock
market, while most major indices advanced, strong performance was mostly
limited to a handful of large-capitalization growth companies, principally in
the technology arena. Smaller and value-oriented stocks provided particularly
lackluster returns, and overall, foreign stocks outperformed U.S. stocks in
1999.
Looking forward, we expect the U.S. economy to remain on a
moderate-growth, low-inflation course. As recent revisions of 1999's economic
statistics demonstrated, the economy has defied many analysts' forecasts by
growing at a strong rate, which should be positive for the bond market.
Similarly, positive economic forces could help the stock market's performance
broaden to include value-oriented and smaller stocks.
1 OPPENHEIMER CASH RESERVES
<PAGE> 4
PRESIDENT'S LETTER
- -------------------------------------------------------------------------------
We see particularly compelling opportunities outside of the U.S. market. Many
foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving companies
there the same potential for cost-cutting and productivity improvements that
U.S. companies enjoyed 10 years ago. In Japan and Asia, economic recovery is
expected to gain strength, which could allow stocks to rally from relatively
low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has
helped keep inflation under control. The Internet has also been good for
investors, as even companies with no earnings have seen their stock prices
soar. Clearly, while the Internet is here to stay, not all "dot-com" companies
will survive, and many of these high-flying Internet stocks will
eventually--and perhaps very suddenly--return to more reasonable levels. The
long-term winners are most likely to be companies that support the Internet's
growth with content or infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification
to manage risks, and availing oneself of the services of a knowledgeable
financial advisor. Indeed, these principles serve as the foundation for every
investment we offer, helping to make OppenheimerFunds The Right Way to Invest
in 2000 and beyond.
Sincerely,
/s/JAMES C. SWAIN /s/BRIDGET A. MACASKILL
James C. Swain Bridget A. Macaskill
February 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
2 OPPENHEIMER CASH RESERVES
<PAGE> 5
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
Q. HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
A. Over the six-month period that ended January 31, 2000, 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 that ended January 31, 2000, the Fund's compounded current yield for
Class A shares was 5.04%.(1) Without compounding, the corresponding yield for
Class A shares was 4.92%. These returns were generally higher than the yields
reported one year ago, primarily because of higher short-term interest rates
during the reporting period.
HOW DID THE ROBUST U.S. ECONOMY AFFECT INTEREST RATES?
When the reporting period began, the Federal Reserve had just initiated the
first interest-rate increases of 1999. The rate hike was a pre-emptive response
to concerns that stronger than expected economic growth might rekindle
long-dormant inflationary pressures. These concerns were fueled by positive
economic news from overseas, where the worst of the economic malaise appeared
to be over for Japan, Asia and Latin America, and within the United States,
where unemployment reached historical lows and consumers appeared to be
spending more than they were earning. The Federal Reserve Board subsequently
raised interest rates twice more during the summer and fall, effectively
offsetting all of 1998's rate cuts.
DID Y2K INFLUENCE THE MONEY MARKETS AT ALL?
Yes. The money markets were affected by Y2K-related worries. Although the
investment community's consensus opinion appeared to be that the U.S. financial
system was prepared for the advent of the year 2000, many issuers decided to
play it safe by issuing relatively longer term money market securities
1. See page 5 for further details.
3 OPPENHEIMER CASH RESERVES
<PAGE> 6
"In preparation for the advent of the year 2000, many issuers decided to play
it safe by issuing longer term money market securities over the summer and
early fall of 1999."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
over the summer and early fall of 1999. These securities generally featured
maturity dates in January and February of 2000, reducing the need for issuers
to return to the marketplace close to year-end 1999. However, because so many
issuers came to market at the same time, they were compelled to increase their
securities' yields in order to attract investor interest. Money market fund
shareholders generally benefited from these higher yields.
HOW DID YOU MANAGE THE FUND IN SUCH AN ENVIRONMENT?
Under these market conditions, we focused primarily on enhancing the Fund's
yield in a way that was consistent with maintaining liquidity and preserving
capital. We generally found the most attractive yields in high-quality
asset-backed commercial paper. The asset-backed commercial paper market has
grown tremendously over the past several years, but we have invested only in
highly liquid securities from seasoned issuers who have passed our rigorous
credit analysis. We also found attractive income opportunities in commercial
paper issued by financial companies, such as high-quality insurers and banks.
On the other hand, we found few opportunities in U.S. Treasury bills, which
were in relatively short supply because of the federal budget surplus.
WHAT IS YOUR OUTLOOK OVER THE COMING MONTHS?
We expect the U.S. economy to remain strong over the next several months, which
may prompt the Federal Reserve Board to increase interest rates further.
Regardless of the direction of interest rates over the coming months, we will
continue to search for attractive yield while prudently keeping your objectives
of safety and liquidity first in mind. This is part of our commitment to keep
Oppenheimer Cash Reserves an important part of The Right Way to Invest.
4 OPPENHEIMER CASH RESERVES
<PAGE> 7
NOTES
- -------------------------------------------------------------------------------
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.
Compounded yields assume reinvestment of dividends.
5 OPPENHEIMER CASH RESERVES
<PAGE> 8
STATEMENT OF INVESTMENTS January 31, 2000 / Unaudited
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
==================================================================================================================
<S> <C> <C>
DIRECT BANK OBLIGATIONS--3.9%
- ------------------------------------------------------------------------------------------------------------------
Deutsche Bank AG:
5.88%, 3/29/00 $ 8,200,000 $ 8,200,532
- ------------------------------------------------------------------------------------------------------------------
U.S. Bank NA Minneapolis:
5.96%, 3/22/001 15,000,000 15,000,000
-------------
Total Direct Bank Obligations 23,200,532
==================================================================================================================
LETTERS OF CREDIT--0.9%
- ------------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, guaranteeing commercial paper of Louis Dreyfus Corp., Series
DR1:
5.67%, 2/17/00 5,000,000 4,987,400
==================================================================================================================
SHORT-TERM NOTES--97.4%
- ------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-3.4%
British Aerospace North America, Inc.:
6.14%, 3/8/00(1) 20,000,000 19,877,200
- ------------------------------------------------------------------------------------------------------------------
ASSET-BACKED--25.2%
Asset Backed Capital Finance, Inc.:
5.95%, 2/14/00(1) 6,200,000 6,186,679
- ------------------------------------------------------------------------------------------------------------------
Asset-Securitization Cooperative:
5.82%, 2/24/00(1) 14,000,000 13,947,586
- ------------------------------------------------------------------------------------------------------------------
Beta Finance, Inc.:
5.75%, 3/3/001 5,000,000 4,975,243
5.81%, 3/10/00(1) 10,000,000 9,938,672
- ------------------------------------------------------------------------------------------------------------------
Breeds Hill Capital Co. LLC, Series A:
5.95%, 2/25/00(1) 10,000,000 9,960,333
- ------------------------------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc., Series A:
6.30%, 2/15/00 11,241,000 11,213,460
- ------------------------------------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc.:
5.80%, 2/17/00(1) 15,000,000 14,961,333
- ------------------------------------------------------------------------------------------------------------------
Eureka Securitization, Inc.:
5.85%, 4/12/00(1) 10,000,000 9,884,625
- ------------------------------------------------------------------------------------------------------------------
Lexington Parker Capital Co. LLC:
5.92%, 3/17/00(1) 5,000,000 4,963,000
6%, 3/2/001 10,300,000 10,248,500
- ------------------------------------------------------------------------------------------------------------------
Moat Funding LLC:
5.80%, 3/9/00(1) 5,000,000 4,970,194
</TABLE>
6 OPPENHEIMER CASH RESERVES
<PAGE> 9
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
==================================================================================================================
<S> <C> <C>
ASSET-BACKED Continued
Moriarty Ltd.:
5.88%, 4/25/00(1) $ 9,000,000 $ 8,876,520
- ------------------------------------------------------------------------------------------------------------------
Park Avenue Receivables Corp.:
5.92%, 2/14/00(1) 10,000,000 9,978,622
- ------------------------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
5.88%, 2/29/00(1) 15,000,000 14,931,400
- ------------------------------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.87%, 4/10/00(1) 6,000,000 5,932,495
5.95%, 3/24/00(1) 8,000,000 7,931,244
-------------
148,899,906
- ------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE--2.5%
BMW US Capital Corp.:
6.01%, 3/21/00 15,000,000 14,877,296
- ------------------------------------------------------------------------------------------------------------------
BANKS--1.7%
Credit Suisse First Boston, Inc.:
5.79%, 2/8/00(1) 10,000,000 9,988,742
- ------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS--9.2% Banc of America Securities LLC:
6.013%, 2/1/00(2) 15,000,000 15,000,000
- ------------------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc.:
5.923%, 2/7/00(2) 6,000,000 6,001,044
- ------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group LP Promissory Note:
6.01%, 3/27/00(3) 7,500,000 7,500,000
- ------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group LP, Series A:
6.281%, 3/27/00(2,3) 10,000,000 10,001,714
- ------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.85%, 2/7/00-3/15/00 14,000,000 13,932,237
- ------------------------------------------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co.:
5.812%, 6/8/00(2) 1,700,000 1,700,000
------------
54,134,995
- ------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--1.7%
Compagnie de Saint-Gobain:
5.84%, 4/25/00(1) 10,000,000 9,863,733
- ------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE--9.8%
Caterpillar Financial Services Corp.:
5.71%, 3/14/00 5,000,000 4,966,692
6.10%, 4/3/00 10,000,000 9,894,944
- ------------------------------------------------------------------------------------------------------------------
CIT Group, Inc.:
5.84%, 4/26/00 10,000,000 9,862,111
</TABLE>
7 OPPENHEIMER CASH RESERVES
<PAGE> 10
STATEMENT OF INVESTMENTS Unaudited/Continued
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL FINANCE Continued
Countrywide Home Loans:
6.20%, 2/16/00 $ 7,000,000 $ 6,983,375
- -----------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.55%, 2/3/00 6,000,000 5,998,150
- -----------------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.85%, 3/10/00 5,000,000 4,969,125
- -----------------------------------------------------------------------------------------------------------------
Heller Financial, Inc., Series H:
6.33%, 3/1/00(2) 5,000,000 5,001,359
- -----------------------------------------------------------------------------------------------------------------
Homeside Lending, Inc.:
5.86%, 2/3/00 10,000,000 9,996,728
-----------
57,672,484
- -----------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--2.0%
American Express Credit Corp.:
5.60%, 2/4/00 12,000,000 11,994,400
- -----------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--0.3%
Prudential Funding Corp.:
5.84%, 4/19/00 2,000,000 1,974,693
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--13.0%
Associates Corp. of North America:
5.84%, 2/1/00 15,990,000 15,990,000
- -----------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
5.58%, 2/22/00 12,000,000 11,960,380
- -----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp.:
5.90%, 3/13/00 10,000,000 9,932,806
- -----------------------------------------------------------------------------------------------------------------
General Electric Capital Services:
5.83%, 3/16/00 10,000,000 9,928,744
- -----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.78%, 2/2/00 14,000,000 13,997,752
- -----------------------------------------------------------------------------------------------------------------
National Rural Utilities Cooperative Finance Corp.:
5.80%, 4/4/00 15,000,000 14,847,750
-----------
76,657,432
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED MEDIA--2.5%
Omnicom Finance, Inc.:
5.72%, 2/8/00(1) 5,000,000 4,994,439
5.73%, 2/16/00(1) 10,000,000 9,976,125
-----------
14,970,564
</TABLE>
8 OPPENHEIMER CASH RESERVES
<PAGE> 11
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES--1.5%
Southern California Edison:
5.74%, 3/20/00 $ 9,000,000 $ 8,931,120
- -----------------------------------------------------------------------------------------------------------------
GAS UTILITIES--2.5%
Centrica plc:
5.90%, 4/26/00(1) 15,000,000 14,791,042
- -----------------------------------------------------------------------------------------------------------------
INSURANCE--6.8%
AIG Life Insurance Co.:
5.828%, 2/1/00(2,3) 7,000,000 7,000,000
- -----------------------------------------------------------------------------------------------------------------
Metropolitan Life Insurance Co.:
6.077%, 2/1/00(2) 13,000,000 13,000,000
- -----------------------------------------------------------------------------------------------------------------
Pacific Life Insurance Co.:
6.329%, 2/1/00(2,3) 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------------------------
Protective Life Insurance Co.:
5.857%, 2/1/00(2) 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------------------------
Prudential Insurance Co. of America:
6.04%, 4/3/00(2) 10,000,000 10,000,000
------------
40,000,000
- -----------------------------------------------------------------------------------------------------------------
LEASING & FACTORING--1.7%
American Honda Finance Corp.:
5.84%, 4/19/00 10,000,000 9,873,467
- -----------------------------------------------------------------------------------------------------------------
MANUFACTURING--1.7%
Eaton Corp.:
5.95%, 4/3/00(1) 10,000,000 9,897,528
- -----------------------------------------------------------------------------------------------------------------
OIL: DOMESTIC--4.7%
Equilon Enterprises LLC:
5.71%, 2/1/00 20,000,000 20,000,000
- -----------------------------------------------------------------------------------------------------------------
Motiva Enterprises LLC:
5.72%, 3/24/00 8,000,000 7,933,902
------------
27,933,902
- -----------------------------------------------------------------------------------------------------------------
PHOTOGRAPHY--1.7%
Eastman Kodak Co.:
5.90%, 4/20/00 10,000,000 9,870,528
- -----------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--3.3%
KZH-KMS Corp.:
5.83%, 3/29/00(1) 10,000,000 9,907,692
5.86%, 4/6/00(1) 10,000,000 9,894,194
------------
19,801,886
</TABLE>
9 OPPENHEIMER CASH RESERVES
<PAGE> 12
STATEMENT OF INVESTMENTS Unaudited/Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS: TECHNOLOGY--2.2%
GTE Corp., Series A:
6.155%, 3/13/00(2) $13,000,000 $ 12,996,982
------------
Total Short-Term Notes 575,007,900
=================================================================================================================
U.S. GOVERNMENT AGENCIES--0.8%
- -----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.66%, 3/7/00 5,000,000 4,972,486
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 103.0% 608,168,318
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (3.0) (17,802,591
----------------------------
NET ASSETS 100.0% $590,365,727
============================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
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 $251,877,141 or 42.66% of
the Fund's net assets, and have been determined to be liquid pursuant to
guidelines adopted by the Board of Trustees.
2. Represents the current interest rate for a variable or increasing rate
security.
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 $29,501,714, or 4.99% 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.
10 OPPENHEIMER CASH RESERVES
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
January 31, 2000
=================================================================================================================
ASSETS
Investments, at value--see accompanying statement $ 608,168,318
- -----------------------------------------------------------------------------------------------------------------
Cash 429,627
- -----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 7,899,627
Interest 984,861
Other 82,121
------------
Total assets 617,564,554
=================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 26,455,570
Dividends 621,322
Distribution and service plan fees 52,745
Other 69,190
------------
Total liabilities 27,198,827
=================================================================================================================
NET ASSETS $590,365,727
============
=================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $590,365,336
- -----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 391
------------
Net assets $590,365,727
=============
=================================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $308,001,693 and 308,059,972 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 $229,410,669
and 229,407,619 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 $52,953,365
and 52,952,415 shares of beneficial interest outstanding) $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 OPPENHEIMER CASH RESERVES
<PAGE> 14
STATEMENT OF OPERATIONS UNAUDITED
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended January 31, 2000
==================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 17,939,055
==================================================================================================================
EXPENSES
Management fees 1,503,572
- ------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 299,687
Class B 957,866
Class C 238,617
- ------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 820,913
- ------------------------------------------------------------------------------------------------------------------
Registration and filing fees 209,607
- ------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 11,379
- ------------------------------------------------------------------------------------------------------------------
Trustees' compensation 1,103
- ------------------------------------------------------------------------------------------------------------------
Other 110,361
-----------
Total expenses 4,153,105
Less expenses paid indirectly (1,364)
-----------
Net expenses 4,151,741
==================================================================================================================
NET INVESTMENT INCOME 13,787,314
==================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 13,787,314
============
</TABLE>
See accompanying Notes to Financial Statements.
12 OPPENHEIMER CASH RESERVES
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 MOS. YEAR
ENDED ENDED
JAN. 31, 2000 JULY 31,
(UNAUDITED) 1999
==================================================================================================================
OPERATIONS
<S> <C> <C>
Net investment income $ 13,787,314 $ 17,971,444
- ------------------------------------------------------------------------------------------------------------------
Net realized gain -- 5,386
------------------------------------
Net increase in net assets resulting from operations 13,787,314 17,976,830
==================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (7,242,906) (10,360,549)
Class B (5,235,532) (6,243,315)
Class C (1,308,876) (1,367,580)
==================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 43,369,782 54,152,037
Class B 25,329,205 124,074,884
Class C 3,345,890 31,505,887
==================================================================================================================
NET ASSETS
Total increase 72,044,877 209,738,194
- ------------------------------------------------------------------------------------------------------------------
Beginning of period 518,320,850 308,582,656
----------------------------------
End of period $590,365,727 $518,320,850
==================================
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER CASH RESERVES
<PAGE> 16
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 MOS. YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC. 31,
CLASS A (UNAUDITED) 1999 1998 1997 1996(1) 1995
==================================================================================================================
<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 .04 .03 .05
Dividends and/or distributions
to shareholders (.02) (.04) (.04) (.04) (.03) (.05)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================
==================================================================================================================
TOTAL RETURN(2) 2.37% 4.30% 4.61% 4.41% 2.68% 4.84%
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $308,002 $264,632 $210,477 $172,970 $170,031 $148,529
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $305,144 $245,622 $186,795 $179,948 $149,889 $105,349
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.69% 4.22% 4.48% 4.33% 4.47% 4.71%
Expenses 1.05% 1.10% 1.28%(4) 1.29%(4) 1.06%(4) 1.36%(4)
</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 has not been grossed up to reflect the effect of expenses
paid indirectly.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER CASH RESERVES
<PAGE> 17
<TABLE>
<CAPTION>
6 MOS. YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC 31,
CLASS B (UNAUDITED) 1999 1998 1997 1996(1) 1995
==================================================================================================================
<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 .04 .02 .04
Dividends and/or distributions
to shareholders (.02) (.04) (.04) (.04) (.02) (.04)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
================================================================
==================================================================================================================
TOTAL RETURN(2) 2.08% 3.72% 3.98% 3.82% 2.35% 4.26%
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $229,411 $204,081 $80,005 $54,009 $85,573 $37,378
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $253,626 $170,068 $73,003 $67,333 $49,226 $35,360
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.14% 3.67% 3.93% 3.78% 3.91% 4.15%
Expenses 1.60% 1.65% 1.83%(4) 1.84%(4) 1.61%(4) 1.92%(4)
</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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
15 OPPENHEIMER CASH RESERVES
<PAGE> 18
FINANCIAL HIGHLIGHTS Continued
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 MOS. YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC 31,
CLASS C (UNAUDITED) 1999 1998 1997 1996(1) 1995
==================================================================================================================
<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 .04 .02 .04
Dividends and/or distributions
to shareholders (.02) (.04) (.04) (.04) (.02) (.04)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================
==================================================================================================================
TOTAL RETURN(2) 2.08% 3.73% 3.99% 3.84% 2.35% 4.21%
==================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $52,953 $49,607 $18,101 $ 9,125 $ 11,717 $5,024
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $63,221 $37,244 $15,297 $10,930 $ 6,333 $6,040
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.15% 3.67% 3.94% 3.78% 3.91% 4.12%
Expenses 1.60% 1.65% 1.83%(4) 1.85%(4) 1.61%(4) 1.97%(4)
</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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER CASH RESERVES
<PAGE> 19
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 are sold without an initial sales charge but 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 shares
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.
17 OPPENHEIMER CASH RESERVES
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS Unaudited / 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>
6 MOS. ENDED JAN. 31, 2000 YEAR ENDED JULY 31, 1999
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 470,736,436 $ 470,736,436 815,693,381 $ 815,693,381
Dividends and/or
distributions reinvested 6,695,701 6,695,701 9,563,996 9,563,996
Redeemed (434,062,355) (434,062,355) (771,105,340) (771,105,340)
---------------------------------------------------------------------------
Net increase 43,369,782 $ 43,369,782 54,152,037 $ 54,152,037
===========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 368,482,994 $ 368,482,994 621,748,556 $ 621,748,556
Dividends and/or
distributions reinvested 4,474,834 4,474,834 5,154,276 5,154,276
Redeemed (347,628,623) (347,628,623) (502,827,948) (502,827,948)
---------------------------------------------------------------------------
Net increase 25,329,205 $ 25,329,205 124,074,884 $124,074,884
===========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 285,800,545 $ 285,800,545 342,809,992 $ 342,809,992
Dividends and/or
distributions reinvested 1,140,417 1,140,417 1,147,452 1,147,452
Redeemed (283,595,072) (283,595,072) (312,451,557) (312,451,557)
--------------------------------------------------------------------------
Net increase 3,345,890 $ 3,345,890 31,505,887 $ 31,505,887
==========================================================================
</TABLE>
18 OPPENHEIMER CASH RESERVES
<PAGE> 21
===============================================================================
3. 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 net assets in excess of $1 billion. The Fund's
management fee for the six months ended January 31, 2000 was 0.48% of the
average annual net assets of each class of shares, annualized for periods of
less than one full year.
-------------------------------------------------------------------------------
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 ON COMMISSIONS ON COMMISSIONS ON
CLASS A SHARES CLASS B SHARES CLASS C SHARES
ADVANCED BY ADVANCED BY ADVANCED BY
6 MOS. ENDED DISTRIBUTOR (1) DISTRIBUTOR (1) DISTRIBUTOR (1)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
January 31, 2000 $-- $700,770 $26,644
</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 CONTINGENT CLASS B CONTINGENT CLASS C CONTINGENT
DEFERRED SALES CHARGES DEFERRED SALES CHARGES DEFERRED SALES CHARGES
6 MOS. ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
January 31, 2000 $4,006 $702,060 $21,157
</TABLE>
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.
19 OPPENHEIMER CASH RESERVES
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
===============================================================================
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 purchased. 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 six months ended
January 31, 2000, payments under the Class A Plan totaled $299,687, all of
which was paid by the Distributor to recipients. That included $54,298 paid to
an affiliate of the Manager. 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.
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.
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 asset-based sales charges from
the Fund under the plans. If any 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 six months ended January 31,
2000, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S
AGGREGATE
UNREIMBURSED
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES
UNDER PLAN BY DISTRIBUTOR UNDER PLAN
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class B Plan $957,866 $957,866 $--
Class C Plan 238,617 238,617 --
</TABLE>
20 OPPENHEIMER CASH RESERVES
<PAGE> 23
OPPENHEIMER CASH RESERVES
<TABLE>
<S> <C>
====================================================================================
OFFICERS AND TRUSTEES James C. Swain, Trustee and Chairman of the Board
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, 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.
The financial statements included herein have
been taken from the records of the Fund
without examination of 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.
</TABLE>
21 OPPENHEIMER CASH RESERVES
<PAGE> 24
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-7pm 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
[OPPENHEIMERFUNDS LOGO]
RS0760.001.0100 March 31, 2000
