Oppenheimer Variable Account Funds NCSR Certified annual shareholder report (management investment company)

Oppenheimer Variable Account Funds N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-4108

Oppenheimer Variable Account Funds

(Exact name of registrant as specified in charter)

6803 South Tucson Way, Centennial, Colorado 80112-3924

(Address of principal executive offices) (Zip code)

Cynthia Lo Bessette

OFI Global Asset Management, Inc.

225 Liberty Street, New York, New York 10281-1008

(Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: December 31

Date of reporting period: 12/31/2016

Item 1. Reports to Stockholders.




		December 31, 2016
		Oppenheimer
		Discovery Mid Cap Growth Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds

		ANNUAL REPORT

		Listing of Top Holdings

		Fund Performance Discussion

		Financial Statements

PORTFOLIO MANAGERS: Ronald J. Zibelli, Jr., CFA and Justin Livengood, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		8/15/86		2.34%		12.82%		5.40	%
Service Shares		10/16/00		2.08		12.53		5.12
Russell MidCap Growth Index				7.33		13.51		7.83

Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns include changes in share price and reinvested distributions but do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


First Republic Bank		2.4%
Microchip Technology, Inc.		2.4
O’Reilly Automotive, Inc.		2.0
SVB Financial Group		1.9
A.O. Smith Corp.		1.8
Vail Resorts, Inc.		1.8
Raymond James Financial, Inc.		1.8
Domino’s Pizza, Inc.		1.8
Lam Research Corp.		1.8
PTC, Inc.		1.8

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

SECTOR ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of common stocks.

2 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

Fund Performance Discussion

The Fund’s Non-Service shares produced a return of 2.34% during the reporting period, underperforming the Russell Midcap Growth Index (the “Index”) return of 7.33%.

The Fund’s Non-Service shares ranked in the 74th percentile (64 out of 92 funds) in Morningstar’s U.S. Insurance Fund Mid-Cap Growth peer group over the 1-year period ended December 31, 2016. Over the longer-term, Fund’s Non-Service shares ranked in the 36th (35 out of 89 funds), 30th (32 out of 88 funds), and 82nd (62 out of 73 funds) percentiles for the 3-, 5- and 10-year periods ended December 31, 2016, respectively. Note that we have managed the Fund under the current investment process for six and a half years.

The Fund’s underperformance versus the Index stemmed from weaker relative stock selection in the information technology, consumer staples and industrials sectors. The Fund outperformed the Index in the health care sector due to stock selection and the financials sector as the result of an overweight position.

MARKET OVERVIEW

2016 was a volatile year for global equity markets. The year was off to a strong start around commodity price recoveries, but growth concerns continued to weigh on equity markets. Global equity markets were both surprised and experienced a short-term sell-off around the United Kingdom’s vote to leave the European Union (commonly known as “Brexit”) in June. Markets staged an impressive rebound in July, as investor fears receded, particularly over the immediate implications of the Brexit vote. U.S. investors instead focused their attention on two tug-of-wars: Federal Reserve (“Fed”) policy and anticipated interest rate moves and secondly, the Presidential election. Improved economic data and outlook led the Fed to hike its policy rates by 0.25% in December 2016. With a pronounced move happening after the November election, markets finished the year with a strong quarter. The unanticipated victory of the Republican nominee, Donald Trump, propelled cyclicals again into a leadership position as investors foresaw an administration friendly to the economy and markets; specifically, less regulation, tax reform and other policies favorable to domestic economic growth.

TOP INDIVIDUAL CONTRIBUTORS

Top performing stocks for the Fund this reporting period included NVIDIA, Ulta Salon, Cosmetics & Fragrance, and First Republic Bank. NVIDIA is a visual computing company that develops graphics chips for use in PCs, mobile devices, servers, automobiles and supercomputers. The company soared after it reported a solid July 2016 quarter and issued a better than expected outlook. The company is seeing one of the most successful product launches ever with its Pascal-based chips that are targeting markets including gaming, automotive, datacenters, machine learning and artificial intelligence. Ulta Salon, Cosmetics & Fragrance, Inc., a leading specialty retailer of beauty products, had a solid reporting period. In what was a treacherous first quarter of 2016 for many retailers, Ulta delivered a significantly better-than-expected quarter and guided for a double-digit trend to continue through its second quarter. First Republic Bank is a commercial bank with more than $60bln of assets that focuses on serving high net worth customers on the east and west coasts. First Republic reported strong quarterly financial results throughout the year, including greater than 20% EPS growth for the June and September quarters. Financials generally rallied after the Presidential election, as markets anticipate faster economic growth, higher interest rates, and less onerous financial regulation.

TOP INDIVIDUAL DETRACTORS

Detractors from performance this reporting period included ServiceNow, Palo Alto Networks and Tableau Software, Inc. Shares of ServiceNow, a SaaS (software as a service) provider of services to automate and manage IT services for enterprises, traded down sharply on disappointing fourth quarter billings results and slightly lower than expected guidance for fiscal year 2016. Palo Alto Networks, a provider of network security solutions, reported fourth quarter guidance that missed consensus estimates, with management pointing to longer sales cycles and a weak economic picture. Tableau Software, a leading data visualization software vendor, reported disappointing license revenue for the first time in its history as a public company at the start of the year. These results, combined with weak 2016 guidance, caused the stock to decline. We exited our position in both Palo Alto Networks and Tableau Software during the period.

STRATEGY & OUTLOOK

Our long-term investment process remains the same. We seek dynamic companies with above-average and sustainable revenue and earnings growth that we believe are positioned to outperform. This includes leading firms in structurally attractive industries with experienced management teams that have proven records of performance.

We have adopted a more constructive economic and corporate earnings outlook following the November election. This is due to President Trump’s proposals to reduce taxes and regulations while increasing fiscal stimulus. While it is too soon to know how much of this agenda will be implemented, we have shifted our

3 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

portfolio strategy consistent with a more pro-cyclical outlook. As always, our focus remains on delivering portfolios of higher quality growth companies with the potential to provide both upside participation and a degree of downside protection over the long term.

At the end of the period, the Fund was overweight the financials, industrials and energy sectors. The Fund was underweight the consumer staples, consumer discretionary and health care sectors.

We look forward to providing another update in six months.

Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. The Fund’s prospectus and summary prospectus contain this and other information about the Fund, and may be obtained by asking your financial advisor or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown, but do not include the charges associated with the separate account products that offer this Fund.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

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.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2016. Performance is measured over a ten-fiscal-year period for both Classes. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares.

Morningstar ranking is for Non-Service shares and ranking may include more than one share class of funds in the category, including other share classes of this Fund. Ranking is based on total return as of 12/31/16, without considering sales charges. Different share classes may have different expenses and performance characteristics. Fund rankings are subject to change monthly. The Fund’s total-return percentile rank is relative to all funds that are in the Morningstar U.S. Insurance Fund Mid-Cap Growth Funds category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.

The Fund’s performance is compared to the performance of the Russell MidCap Growth Index. The Russell MidCap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell MidCap Index companies with higher price-to-book ratios and higher forecasted growth values. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

4 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

Fund Expenses

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During 6 Months Ended December 31, 2016” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes.

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any charges associated with the separate accounts that offer this Fund. Therefore, the “hypothetical” lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges were included your costs would have been higher.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares		$ 1,000.00		$ 1,006.90		$ 4.04
Service shares		1,000.00		1,005.60		5.31

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.11		4.07
Service shares		1,000.00		1,019.86		5.35

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended December 31, 2016 are as follows:


Class	Expense Ratios
Non-Service shares		0.80%
Service shares		1.05

The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” tables in the Fund’s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

6 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—97.9%

Consumer Discretionary—20.5%

Automobiles—0.5%

Thor Industries, Inc.		31,350	$	3,136,567


Distributors—1.4%

Pool Corp.		88,160		9,198,614


Diversified Consumer Services—0.9%

Bright Horizons Family Solutions, Inc.¹		84,430		5,911,789


Hotels, Restaurants & Leisure—7.1%

Domino’s Pizza, Inc.		72,670		11,571,970

Hilton Worldwide Holdings, Inc.		124,600		3,389,120

MGM Resorts International¹		342,400		9,871,392

Restaurant Brands International, Inc.		180,830		8,618,358

Vail Resorts, Inc.		72,090		11,628,838

				45,079,678


Household Durables—0.6%

Mohawk Industries, Inc.¹		19,720		3,937,690


Internet & Direct Marketing Retail—0.8%

Expedia, Inc.		42,970		4,867,642


Leisure Products—0.5%

Hasbro, Inc.		39,870		3,101,487


Specialty Retail—8.7%

Burlington Stores, Inc.¹		65,650		5,563,837

Dick’s Sporting Goods, Inc.		62,240		3,304,944

Foot Locker, Inc.		118,080		8,370,691

O’Reilly Automotive, Inc.¹		46,650		12,987,827

Ross Stores, Inc.		153,170		10,047,952

Tiffany & Co.		62,670		4,852,538

Ulta Salon, Cosmetics & Fragrance, Inc.¹		39,320		10,024,241

				55,152,030


Consumer Staples—2.2%

Beverages—1.0%

Constellation Brands, Inc., Cl. A		42,700		6,546,337


Food Products—0.6%

Ingredion, Inc.		30,870		3,857,515


Household Products—0.6%

Spectrum Brands Holdings, Inc.		28,090		3,436,250


Energy—3.4%

Energy Equipment & Services—1.2%

RPC, Inc.		161,270		3,194,758

US Silica Holdings, Inc.		76,260		4,322,417

				7,517,175


Oil, Gas & Consumable Fuels—2.2%

Concho Resources, Inc.¹		48,522		6,434,017

Parsley Energy, Inc., Cl. A¹		157,412		5,547,199

Rice Energy, Inc.¹		107,510		2,295,339

				14,276,555


Financials—12.3%

Capital Markets—4.8%

E*TRADE Financial Corp.¹		186,240		6,453,216

MarketAxess Holdings, Inc.		48,370		7,106,520

Nasdaq, Inc.		52,570		3,528,498

Raymond James Financial, Inc.		167,480		11,601,340

T. Rowe Price Group, Inc.		22,680		1,706,897

				30,396,471


Commercial Banks—5.1%

First Republic Bank		165,510		15,250,091

SVB Financial Group¹		69,670		11,959,552

Western Alliance Bancorp¹		108,570		5,288,445

				32,498,088


Consumer Finance—0.5%

SLM Corp.¹		309,050		3,405,731


	Shares		Value

Insurance—0.8%

Arthur J. Gallagher & Co.		103,830	$	5,395,007


Real Estate Investment Trusts (REITs)—1.1%

Equinix, Inc.		18,730		6,694,289


Health Care—14.1%

Biotechnology—2.5%

BioMarin Pharmaceutical, Inc.¹		84,620		7,009,921

Incyte Corp.¹		68,160		6,834,403

Neurocrine Biosciences, Inc.¹		56,950		2,203,965

				16,048,289


Health Care Equipment & Supplies—6.8%

Align Technology, Inc.¹		51,900		4,989,147

Cooper Cos., Inc. (The)		20,990		3,671,781

Edwards Lifesciences Corp.¹		69,410		6,503,717

Hologic, Inc.¹		124,630		5,000,155

IDEXX Laboratories, Inc.¹		69,500		8,150,265

Intuitive Surgical, Inc.¹		13,310		8,440,803

West Pharmaceutical Services, Inc.		76,110		6,456,411

				43,212,279


Health Care Providers & Services—1.8%

VCA, Inc.¹		98,810		6,783,306

WellCare Health Plans, Inc.¹		36,160		4,956,813

				11,740,119


Health Care Technology—1.1%

Veeva Systems, Inc., Cl. A¹		164,600		6,699,220


Life Sciences Tools & Services—1.1%

Mettler-Toledo International, Inc.¹		16,210		6,784,858


Pharmaceuticals—0.8%

Zoetis, Inc., Cl. A		93,550		5,007,732


Industrials—19.8%

Aerospace & Defense—0.8%

L-3 Communications Holdings, Inc.		32,560		4,952,702


Air Freight & Couriers—0.7%

XPO Logistics, Inc.¹		105,130		4,537,411


Airlines—0.8%

Alaska Air Group, Inc.		55,080		4,887,248


Building Products—2.9%

A.O. Smith Corp.		247,180		11,703,973

Lennox International, Inc.		44,850		6,869,674

				18,573,647


Commercial Services & Supplies—2.7%

Cintas Corp.		28,190		3,257,636

Copart, Inc.¹		98,780		5,473,400

Waste Connections, Inc.		105,830		8,317,180

				17,048,216


Construction & Engineering—1.1%

Quanta Services, Inc.¹		200,950		7,003,108


Electrical Equipment—2.1%

Acuity Brands, Inc.		27,420		6,330,181

Rockwell Automation, Inc.		50,500		6,787,200

				13,117,381


Machinery—5.2%

Middleby Corp. (The)¹		66,250		8,533,662

Nordson Corp.		43,400		4,862,970

Oshkosh Corp.		99,840		6,450,662

Wabtec Corp.		39,580		3,285,932

Xylem, Inc.		204,240		10,113,965

				33,247,191


Road & Rail—2.4%

J.B. Hunt Transport Services, Inc.		89,570		8,694,560

Old Dominion Freight Line, Inc.¹		79,910		6,855,479

				15,550,039

7 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

STATEMENT OF INVESTMENTS Continued


	Shares		Value

Trading Companies & Distributors—1.1%

United Rentals, Inc.¹		64,510		$ 6,810,966


Information Technology—21.0%

Internet Software & Services—1.0%

CoStar Group, Inc.¹		8,520		1,605,935

MercadoLibre, Inc.		31,470		4,913,726

				6,519,661


IT Services—1.7%

Global Payments, Inc.		46,340		3,216,459

Vantiv, Inc., Cl. A¹		129,780		7,737,484

				10,953,943


Semiconductors & Semiconductor Equipment—9.9%

Analog Devices, Inc.		67,290		4,886,600

Applied Materials, Inc.		306,210		9,881,397

Lam Research Corp.		108,550		11,476,991

Microchip Technology, Inc.		234,660		15,053,439

Microsemi Corp.¹		71,810		3,875,586

NVIDIA Corp.		72,620		7,751,459

Skyworks Solutions, Inc.		64,900		4,845,434

Xilinx, Inc.		82,520		4,981,732

				62,752,638


Software—8.4%

Autodesk, Inc.¹		122,690		9,080,287

Electronic Arts, Inc.¹		134,250		10,573,530

PTC, Inc.¹		243,990		11,289,417


	Shares		Value

Software (Continued)

ServiceNow, Inc.¹		64,042		$ 4,760,882

Splunk, Inc.¹		96,770		4,949,786

Tyler Technologies, Inc.¹		34,820		4,971,251

Ultimate Software Group, Inc. (The)¹		44,220		8,063,517

				53,688,670


Materials—4.6%

Chemicals—1.2%

Albemarle Corp.		91,700		7,893,536


Construction Materials—1.2%

Vulcan Materials Co.		61,640		7,714,246


Containers & Packaging—1.0%

Berry Plastics Group, Inc.¹		130,740		6,370,960


Metals & Mining—1.2%

Freeport-McMoRan, Inc.¹		115,530		1,523,841

Steel Dynamics, Inc.		165,150		5,876,037

				7,399,878

Total Common Stocks (Cost $522,045,840)				622,922,853



Investment Company—3.4%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^2,3(Cost $21,498,967)		21,498,967		21,498,967

Total Investments, at Value (Cost $543,544,807)		101.3%		644,421,820

Net Other Assets (Liabilities)		(1.3)		(8,461,628)

Net Assets		100.0%		$ 635,960,192

Footnotes to Statement of Investments

1. Non-income producing security.

2. Rate shown is the 7-day yield at period end.

3. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		20,396,181		353,791,966		352,689,180		21,498,967

					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	21,498,967	$	75,504

Prior to September 28, 2016 this fund was named Oppenheimer Institutional Money Market Fund.

See accompanying Notes to Financial Statements.

8 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016




Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $522,045,840)	$	622,922,853
Affiliated companies (cost $21,498,967)		21,498,967

		644,421,820

Cash		500,000

Receivables and other assets:
Investments sold		3,934,242
Dividends		305,270
Shares of beneficial interest sold		84,024
Other		53,436

Total assets		649,298,792

Liabilities
Payables and other liabilities:
Investments purchased		12,885,797
Shares of beneficial interest redeemed		353,393
Trustees’ compensation		47,368
Shareholder communications		22,538
Distribution and service plan fees		6,976
Other		22,528

Total liabilities		13,338,600

Net Assets	$	635,960,192


Composition of Net Assets
Par value of shares of beneficial interest	$	8,774

Additional paid-in capital		466,894,652

Accumulated net investment income		154,168

Accumulated net realized gain on investments		68,025,585

Net unrealized appreciation on investments		100,877,013

Net Assets	$	635,960,192



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $603,708,174 and 8,309,727 shares of beneficial interest outstanding)		$72.65


Service Shares:

Net asset value, redemption price per share and offering price per share (based on net assets of $32,252,018 and 464,539 shares of beneficial interest outstanding)		$69.43

See accompanying Notes to Financial Statements.

9 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income

Dividends:
Unaffiliated companies (net of foreign withholding taxes of $20,422)	$	5,456,512
Affiliated companies		75,504

Total investment income		5,532,016


Expenses
Management fees		4,685,009

Distribution and service plan fees - Service shares		84,519

Transfer and shareholder servicing agent fees:
Non-Service shares		621,509
Service shares		33,820

Shareholder communications:
Non-Service shares		48,315
Service shares		2,622

Trustees’ compensation		30,116

Borrowing fees		11,964

Custodian fees and expenses		4,544

Other		76,592

Total expenses		5,599,010
Less reduction to custodian expenses		(360)
Less waivers and reimbursements of expenses		(259,476)

Net expenses		5,339,174

Net Investment Income		192,842

Realized and Unrealized Gain (Loss)
Net realized gain on investment transactions in unaffiliated companies		74,319,102

Net change in unrealized appreciation/depreciation on investment transactions		(60,542,760)

Net Increase in Net Assets Resulting from Operations	$	13,969,184

See accompanying Notes to Financial Statements.

10 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income (loss)	$	192,842	$	(1,807,584)

Net realized gain		74,319,102		54,533,950

Net change in unrealized appreciation/depreciation		(60,542,760)		(5,614,443)

Net increase in net assets resulting from operations		13,969,184		47,111,923


Dividends and/or Distributions to Shareholders
Distributions from net realized gain:
Non-Service shares		(48,415,668)		(61,563,484)
Service shares		(2,737,189)		(2,875,460)

		(51,152,857)		(64,438,944)


Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(21,717,260)		(5,761,632)
Service shares		(2,617,902)		7,088,846

		(24,335,162)		1,327,214


Net Assets
Total decrease		(61,518,835)		(15,999,807)

Beginning of period		697,479,027		713,478,834

End of period (including accumulated net investment income of $154,168 and $233,299, respectively)	$	635,960,192	$	697,479,027

See accompanying Notes to Financial Statements.

11 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$76.85		$78.82		$74.51		$54.80	$47.06

Income (loss) from investment operations:
Net investment income (loss)¹		0.03		(0.19)		(0.29)		(0.16)	0.01
Net realized and unrealized gain		1.69		5.67		4.60		19.88	7.73

Total from investment operations		1.72		5.48		4.31		19.72	7.74

Dividends and/or distributions to shareholders:
Dividends from net investment income		0.00		0.00		0.00		(0.01)	0.00
Distributions from net realized gain		(5.92)		(7.45)		0.00		0.00	0.00

Total dividends and/or distributions to shareholders		(5.92)		(7.45)		0.00		(0.01)	0.00

Net asset value, end of period		$72.65		$76.85		$78.82		$74.51	$54.80



Total Return, at Net Asset Value²		2.34%		6.61%		5.78%		35.98%	16.45%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$603,708		$660,450		$682,515		$725,406	$558,934

Average net assets (in thousands)		$621,110		$695,736		$688,259		$618,970	$575,072

Ratios to average net assets:³
Net investment income (loss)		0.04%		(0.24)%		(0.39)%		(0.24)%	0.03%
Expenses excluding specific expenses listed below		0.84%		0.83%		0.83%		0.84%	0.85%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%	0.00%

Total expenses⁵		0.84%		0.83%		0.83%		0.84%	0.85%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80%		0.80%		0.80%		0.80%	0.80%

Portfolio turnover rate		141%		81%		113%		84%	66%

1. Per share amounts calculated based on the average shares outstanding during the period.

2. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions 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 less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	0.84	%
Year Ended December 31, 2015	0.83	%
Year Ended December 31, 2014	0.83	%
Year Ended December 31, 2013	0.84	%
Year Ended December 31, 2012	0.85	%

See accompanying Notes to Financial Statements.

12 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$73.88		$76.21		$72.22		$53.25	$45.84

Income (loss) from investment operations:
Net investment loss¹		(0.15)		(0.38)		(0.46)		(0.30)	(0.12)
Net realized and unrealized gain		1.62		5.50		4.45		19.27	7.53

Total from investment operations		1.47		5.12		3.99		18.97	7.41

Dividends and/or distributions to shareholders:
Dividends from net investment income		0.00		0.00		0.00		0.00	0.00
Distributions from net realized gain		(5.92)		(7.45)		0.00		0.00	0.00

Total dividends and/or distributions to shareholders		(5.92)		(7.45)		0.00		0.00	0.00

Net asset value, end of period		$69.43		$73.88		$76.21		$72.22	$53.25



Total Return, at Net Asset Value²		2.08%		6.35%		5.53%		35.62%	16.17%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$32,252		$37,029		$30,964		$36,549	$35,942

Average net assets (in thousands)		$33,797		$32,812		$32,927		$35,905	$37,842

Ratios to average net assets:³
Net investment loss		(0.21)%		(0.49)%		(0.64)%		(0.49)%	(0.22)%
Expenses excluding specific expenses listed below		1.09%		1.08%		1.08%		1.09%	1.10%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%	0.00%

Total expenses⁵		1.09%		1.08%		1.08%		1.09%	1.10%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05%		1.05%		1.05%		1.05%	1.05%

Portfolio turnover rate		141%		81%		113%		84%	66%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.09	%
Year Ended December 31, 2015	1.08	%
Year Ended December 31, 2014	1.08	%
Year Ended December 31, 2013	1.09	%
Year Ended December 31, 2012	1.10	%

See accompanying Notes to Financial Statements.

13 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Discovery Mid Cap Growth Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. Both classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class.

The following is a summary of significant accounting policies followed in the Fund’s preparation of financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis 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.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. GAAP, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager.

Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Return of Capital Estimates. Distributions received from the Fund’s investments in Real Estate Investments Trusts (REITs), generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates. Such estimates are based on historical information available from each REIT and other industry sources. These estimates may subsequently be revised based on information received from REITs after their tax reporting periods are concluded.

Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. This rate will increase to 2.00% effective January 1, 2017. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former Trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remains open for the three preceding fiscal reporting period ends. The Fund has analyzed its tax positions for the fiscal year ended December 31, 2016, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Fund’s financial statements.

14 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

2. Significant Accounting Policies (Continued)

The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$201,536		$69,774,468		$—		$99,128,121

1. During the reporting period, the Fund did not utilize any capital loss carryforward.

2. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains are determined in accordance with federal income tax requirements, which may differ from the character of net investment income or net realized gains presented in those financial statements in accordance with U.S. GAAP. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Paid-in Capital	Reduction to Accumulated Net Investment Income		Reduction to Accumulated Net Realized Gain on Investments³

$5,342,270		$271,973		$5,070,297

3. $5,071,576, all of which was long-term capital gain, was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Long-term capital gain	$	51,152,857	$	64,438,944

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes at period end are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.


Federal tax cost of securities	$	545,293,699

Gross unrealized appreciation	$	105,813,482

Gross unrealized depreciation		(6,685,361)

Net unrealized appreciation	$	99,128,121

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

3. Securities Valuation

The Fund calculates the net asset value of its shares as of 4:00 P.M. Eastern time, on each day the New York Stock Exchange (the “Exchange”) is open for trading, except in the case of a scheduled early closing of the Exchange, in which case the Fund will calculate net asset value of the shares as of the scheduled early closing time of the Exchange.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a “fair valuation” for any security for which market quotations are not “readily available.” The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.

15 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Equity securities traded on a securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the official closing price on the principal exchange on which the security is traded, as identified by the Manager, prior to the time when the Fund’s assets are valued. If the official closing price is unavailable, the security is valued at the last sale price on the principal exchange on which it is traded. If the official closing price or last sales price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority): (1) a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.

Short-term money market type debt securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

If a market value or price cannot be determined for a security using the methodologies described above, or if, in the “good faith” opinion of the Manager, the market value or price obtained does not constitute a “readily available market quotation,” or a significant event has occurred that would materially affect the value of the security, the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

16 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

3. Securities Valuation (Continued)

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The Fund classifies each of its investments in investment companies which are publicly offered as Level 1. Investment companies that are not publicly offered are measured using net asset value as a practical expedient, and are not classified in the fair value hierarchy.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	130,385,497	$	—	$	—	$	130,385,497
Consumer Staples		13,840,102		—		—		13,840,102
Energy		21,793,730		—		—		21,793,730
Financials		78,389,586		—		—		78,389,586
Health Care		89,492,497		—		—		89,492,497
Industrials		125,727,909		—		—		125,727,909
Information Technology		133,914,912		—		—		133,914,912
Materials		29,378,620		—		—		29,378,620
Investment Company		21,498,967		—		—		21,498,967

Total Assets	$	644,421,820	$	—	$	—	$	644,421,820

Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

4. Investments and Risks

Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (“Affiliated Funds”). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services to, the Affiliated Funds. When applicable, the Fund’s investments in Affiliated Funds are included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Affiliated Funds.

Each of the Affiliated Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Fund’s investments and therefore the value of the Fund’s shares. To the extent that the Fund invests more of its assets in one Affiliated Fund than in another, the Fund will have greater exposure to the risks of that Affiliated Fund.

Investments in Money Market Instruments. The Fund is permitted to invest its free cash balances in money market instruments to provide liquidity or for defensive purposes. The Fund may invest in money market instruments by investing in Class E shares of Oppenheimer Institutional Government Money Market Fund (“IGMMF”), formerly known as Oppenheimer Institutional Money Market Fund, which is an Affiliated Fund. IGMMF is regulated as a money market fund under the 1940 Act, as amended. The Fund may also invest in money market instruments directly or in other affiliated or unaffiliated money market funds.

Equity Security Risk. Stocks and other equity securities fluctuate in price. The value of the Fund’s portfolio may be affected by changes in the equity markets generally. Equity markets may experience significant short-term volatility and may fall sharply at times. Different markets may behave differently from each other and U.S. equity markets may move in the opposite direction from one or more foreign stock markets. Adverse events in any part of the equity or fixed-income markets may have unexpected negative effects on other market segments.

The prices of individual equity securities generally do not all move in the same direction at the same time and a variety of factors can affect the price of a particular company’s securities. These factors may include, but are not limited to, poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the company’s sector or industry, or changes in government regulations affecting the company or its industry.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 66% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

17 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

5. Market Risk Factors (Continued)

Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.

Credit Risk. Credit risk relates to the ability of the issuer of debt to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield debt securities are subject to credit risk to a greater extent than lower-yield, higher-quality securities.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument’s price over a defined time period. Large increases or decreases in a financial instrument’s price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount

Non-Service Shares
Sold		260,318		$	19,152,890			316,843		$	25,835,263
Dividends and/or distributions reinvested		674,971			48,415,668			772,150			61,563,484
Redeemed		(1,219,400	)		(89,285,818	)		(1,154,717	)		(93,160,379	)

Net decrease		(284,111	)	$	(21,717,260	)		(65,724	)	$	(5,761,632	)



Service Shares
Sold		50,885		$	3,568,573			153,951		$	11,748,349
Dividends and/or distributions reinvested		39,878			2,737,189			37,465			2,875,460
Redeemed		(127,436	)		(8,923,664	)		(96,510	)		(7,534,963	)

Net increase (decrease)		(36,673	)	$	(2,617,902	)		94,906		$	7,088,846

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases	Sales

Investment securities	$903,515,062	$970,773,692

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $200 million			0.75%
Next $200 million			0.72
Next $200 million			0.69
Next $200 million			0.66
Next $700 million			0.60
Over $1.5 billion			0.58

The Fund’s effective management fee for the reporting period was 0.72% of average annual net assets before any applicable waivers.

Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.

18 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

8. Fees and Other Transactions with Affiliates (Continued)

Transfer Agent Fees. OFI Global (the “Transfer Agent”) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.

Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the “Sub-Transfer Agent”), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.

Trustees’ Compensation. The Fund’s Board of Trustees (“Board”) has adopted a compensation deferral plan for Independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustees under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustees. The Fund purchases shares of the funds selected for deferral by the Trustees in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of Trustees’ fees under the plan will not affect the net assets of the Fund and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act for Service shares to pay OppenheimerFunds Distributor, Inc. (the “Distributor”), for distribution related services, personal service and account maintenance for the Fund’s Service shares. Under the Plan, payments are made periodically at an annual rate of 0.25% of the daily net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $228,340 and $12,261 for Non-Service and Service shares, respectively.

The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IGMMF. During the reporting period, the Manager waived fees and/or reimbursed the Fund $18,875 for IGMMF management fees.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

9. Borrowings and Other Financing

Joint Credit Facility. A number of mutual funds managed by the Manager participate in a $1.3 billion revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with atypical redemption activity. Expenses and fees related to the Facility are paid by the participating funds and are disclosed separately or as other expenses on the Statement of Operations. The Fund did not utilize the Facility during the reporting period.

10. Pending Litigation

In 2009, several putative class action lawsuits were filed and later consolidated before the U.S. District Court for the District of Colorado in connection with the investment performance of Oppenheimer Rochester California Municipal Fund (the “California Fund”), a fund advised by OppenheimerFunds, Inc. (“OFI”) and distributed by OppenheimerFunds Distributor, Inc. (“OFDI”). The plaintiffs asserted claims against OFI, OFDI and certain present and former trustees and officers of the California Fund under the federal securities laws, alleging, among other things, that the disclosure documents of the California Fund contained misrepresentations and omissions and the investment policies of the California Fund were not followed. An amended complaint and a motion to dismiss were filed, and in 2011, the court issued an order which granted in part and denied in part the defendants’ motion to dismiss. In October 2015, following a successful appeal by defendants and a subsequent hearing, the court granted plaintiffs’ motion for class certification and appointed class representatives and class counsel.

OFI and OFDI believe the suit is without merit; that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them in the suit; and that no estimate can yet be made as to the amount or range of any potential loss. Furthermore, OFI believes that the suit should not impair the ability of OFI or OFDI to perform their respective duties to the Fund and that the outcome of the suit should not have any material effect on the operations of any of the Oppenheimer funds.

19 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Discovery Mid Cap Growth Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 December 31, 2016, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies from brokers were not received. 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Discovery Mid Cap Growth Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

20 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $5.91798 per share were paid Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

Dividends, if any, paid by the Fund during the reporting period which are not designated as capital gain distributions should be multiplied by the maximum amount allowable but not less than 100% to arrive at the amount 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.

21 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

The Fund has entered into an investment advisory agreement with OFI Global Asset Management, Inc. (“OFI Global” or the “Adviser”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”) (“OFI Global” and “OFI” together the “Managers”) and OFI Global has entered into a sub-advisory agreement with OFI whereby OFI provides investment sub-advisory services to the Fund (collectively, the “Agreements”). Each year, the Board of Trustees (the “Board”), including a majority of the independent Trustees, is required to determine whether to approve the terms of the Agreements and the renewal thereof. The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Managers provide, such information as may be reasonably necessary to evaluate the terms of the Agreements. The Board employs an independent consultant to prepare a report that provides information, including comparative information that the Board requests for that purpose. In addition to in-person meetings focused on this evaluation, the Board receives information throughout the year regarding Fund services, fees, expenses and performance.

The Managers and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Managers’ services, (ii) the comparative investment performance of the Fund and the Managers, (iii) the fees and expenses of the Fund, including comparative fee and expense information, (iv) the profitability of the Managers and their affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Managers from their relationship with the Fund. The Board was aware that there are alternatives to retaining the Managers.

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ key personnel who provide such services. The Managers’ duties include providing the Fund with the services of the portfolio managers and the Sub-Adviser’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; and securities trading services. OFI Global is responsible for oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; risk management; and oversight of the Sub-Adviser. OFI Global is also responsible for providing certain administrative services to the Fund. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the U.S. Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by federal and state securities laws for the sale of the Fund’s shares. OFI Global also provides the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Ronald Zibelli and Justin Livengood, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other mid-cap growth funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s contractual management fees and total expenses were lower than their respective peer group medians and category medians. The Board noted that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service Shares and 1.05% for Service Shares. This contractual expense limitation may not be amended or withdrawn for one year from the date of the Fund’s prospectus, unless approved by the Board.

Economies of Scale and Profits Realized by the Managers. The Board considered information regarding the Managers’ costs in serving as the Fund’s investment adviser and sub-adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Managers’ profitability from their relationship with the Fund. The Board also considered that the Managers must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund. The Board reviewed whether the Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

22 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).

Conclusions. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees’ counsel are independent of the Managers within the meaning and intent of the Securities and Exchange Commission Rules.

Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, decided to continue the Agreements through August 31, 2017. In arriving at its decision, the Board did not identify any factor or factors as being more important than others, but considered all of the above information, and considered the terms and conditions of the Agreements, including the management fees, in light of all the surrounding circumstances.

23 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800. CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800. CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at www.sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

24 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

25 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth: 1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.’s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Zibelli, Jr., Livengood, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal

Ronald J. Zibelli, Jr., Vice President (since 2008) Year of Birth: 1959		Senior Vice President of the Sub-Adviser (since January 2014); Senior Portfolio Manager of the Sub-Adviser (since May 2006) and Vice President of the Sub-Adviser (May 2006-January 2014). Prior to joining the Sub-Adviser, he spent six years at Merrill Lynch Investment Managers, during which time he was a Managing Director and Small Cap Growth Team Leader, responsible for managing 11 portfolios. Prior to joining Merrill Lynch Investment Managers, Mr. Zibelli spent 12 years with Chase Manhattan Bank, including two years as Senior Portfolio Manager (U.S. Small Cap Equity) at Chase Asset Management. A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Justin Livengood, Vice President (since 2014) Year of Birth: 1974		Vice President (since May 2006) and Senior Portfolio (since January 2014) of the Sub-Adviser. Senior Research Analyst of the Sub-Adviser (May 2006-January 2014), responsible for the health care, energy and financial services sectors for mid- and small-cap growth accounts. Before joining the Sub-Adviser in May 2006, Mr. Livengood was a vice president and fund analyst with Merrill Lynch Investment Managers, where he specialized in financial services, health care, energy and basic materials for the Merrill Lynch Small Cap Growth Fund. During his tenure at Merrill Lynch he also worked as an investment banking analyst in the Global Media Group and as an associate with Merrill Lynch Ventures. A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

26 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA



Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

27 OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

OPPENHEIMER DISCOVERY MID CAP GROWTH FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and		OFI Global Asset Management, Inc.
Shareholder
Servicing Agent

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent		KPMG LLP
Registered
Public
Accounting
Firm

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO

December 31, 2016

ANNUAL REPORT

Listing of Top Holdings

Fund Performance Discussion

Financial Statements

PORTFOLIO MANAGERS: Krishna Memani and Magnus Krantz

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year			5-Year			10-Year
Non-Service Shares		2/9/87		5.26	%		7.86	%		1.73	%
Service Shares		5/1/02		4.96			7.60			1.47
Russell 3000 Index				12.74			14.67			7.07
Bloomberg Barclays U.S. Aggregate Bond Index				2.65			2.23			4.34
Reference Index				6.34			6.67			5.92

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


Alphabet, Inc., Cl. C				1.3%
Microsoft Corp.				1.2
Citigroup, Inc.				1.1
Johnson & Johnson				1.0
PG&E Corp.				1.0
Suncor Energy, Inc.				0.9
Chevron Corp.				0.9
Facebook, Inc., Cl. A				0.8
JPMorgan Chase & Co.				0.8
General Electric Co.				0.8

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

PORTFOLIO ALLOCATION


Common Stocks				32.3%
Non-Convertible Corporate Bonds and Notes				29.2
Mortgage-Backed Obligations
Government Agency				18.6
Non-Agency				8.2
Asset-Backed Securities				8.9
Investment Company
Oppenheimer Institutional Government Money Market Fund				2.3
U.S. Government Obligations				0.5

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of investments.

2 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

Fund Performance Discussion

The Fund’s Non-Service shares produced a return of 5.26% during the reporting period. On a relative basis, the Fund’s Reference Index returned 6.34%. The Fund’s Reference Index is a customized weighted index currently comprised of the following underlying broad-based security indices: 65% of the Bloomberg Barclays U.S. Aggregate Bond Index and 35% of the Russell 3000 Index. Measured separately, the Bloomberg Barclays U.S. Aggregate Bond Index returned 2.65% and the Russell 3000 Index returned 12.74%.

MARKET OVERVIEW

Markets were volatile this reporting period. Central Bank policy was a major focus this reporting period, with statements and actions from the Federal Reserve (the “Fed”), Bank of Japan (BoJ), European Central Bank (“ECB”), and more, fueling movements in global capital markets. Throughout most of the year, the question of when the Fed would raise interest rates remained. It finally did in the closing month of the reporting period. Improved economic data and outlook led the Fed to hike its policy rates by 0.25% in December, meeting market expectations. The Fed’s policy making Federal Open Market Committee noted they will continue to be cautious and will hike rates gradually, but posted a modestly optimistic outlook. By year end, markets were pricing for slightly more than two hikes by the end of 2017.

Other major events that created volatility during the year were the United Kingdom’s (“UK”) vote to leave the European Union (commonly referred to as Brexit) and the U.S. Presidential election. After Brexit, U.S. markets became extremely volatile for two days. However, the event came and went with most financial assets rallying strong early in the third quarter.

Markets turned to general risk on mode after the surprise election of Donald Trump with equities climbing, credit spreads narrowing to the tightest levels since early 2015, and U.S. Treasury yields climbing to levels not experienced since 2014. The dollar rallied strongly against many currencies, particularly after Mr. Trump’s victory.

EQUITY STRATEGY REVIEW

The equity strategy produced positive absolute performance during the reporting period, but underperformed the Russell 3000 Index. The equity strategy’s underperformance stemmed primarily from weaker relative stock selection in the information technology, health care and consumer discretionary sectors. The equity strategy outperformed the Russell 3000 Index in the real estate and utilities sectors due to stock selection and underweight positions.

The equity strategy’s top contributors to performance included Microsoft Corp., Applied Materials, Inc. and Chevron Corp. Microsoft develops and supports software products. Over the third quarter of 2016, the company reported profit and sales better than analysts’ estimates, as a result of their aggressive push into Internet-based software and services for businesses. Revenue from Azure, the company’s corporate cloud platform, doubled in the quarter ending September 30. Shares of Applied Materials, maker of semiconductor equipment, rallied over the third quarter of 2016 as the company reported better than expected earnings. The company has successfully gained market share in existing businesses and could benefit from rapid growth in the organic light emitting diode (OLED) display market. Chevron benefited from the sharp bounce off the oil price lows seen in the first quarter of 2016. Furthermore, Chevron’s attractive yield and more focused capital spending plans were rewarded by the market.

The equity strategy’s top detractors from performance included Apple, Inc., McKesson Corp. and Diplomat Pharmacy, Inc. We exited our position in these three stocks during the period. Apple experienced declines over the first half of the reporting period after reporting a disappointing quarter and outlook, as the iPhone 6S was lapping very difficult prior year results in addition to a decelerating global macro-economy. McKesson is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. In October, the company reported earnings and revenue that missed forecasts, and also cut its outlook. Shares of Diplomat Pharmacy fell after the company reported weak third quarter earnings.

FIXED-INCOME STRATEGY REVIEW

The Fund’s fixed-income strategy outperformed the Bloomberg Barclays U.S. Aggregate Bond Index this reporting period. The strategy’s outperformance versus the Index this reporting period stemmed from its underweight position in U.S. Treasuries, which sold off this reporting period. In addition, the strategy’s exposure to high yield credit benefited performance. The top detractor from the strategy’s performance versus the Index was its overweight exposure to agency mortgage-backed securities (“MBS”). While the strategy had a larger allocation to agency MBS, its exposure to non-agency MBS produced slight outperformance this reporting period.

3 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2016. Performance is measured over a ten-fiscal-year period for both Classes. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares.

The Fund’s performance is compared to the performance of the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, and the Fund’s Reference Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market. The Bloomberg Barclays U.S. Aggregate Bond Index is an index of U.S dollar-denominated, investment-grade U.S. corporate government and mortgage-backed securities. The Fund’s Reference Index is a customized weighted index currently comprised of 65% of the Bloomberg Barclays U.S. Aggregate Bond Index and 35% of the Russell 3000 Index. The Indices are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

4 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares		$ 1,000.00		$ 1,010.20		$ 3.39
Service shares		1,000.00		1,008.90		4.66

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.77		3.41
Service shares		1,000.00		1,020.51		4.68


Class	Expense Ratios
Non-Service shares		0.67%
Service shares		0.92

6 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—33.8%

Consumer Discretionary—3.8%

Auto Components—0.2%

Adient plc¹		9,058	$	530,799



Hotels, Restaurants & Leisure—1.1%

Cedar Fair LP²		7,190		461,598

International Speedway Corp., Cl. A		3,380		124,384

McDonald’s Corp.		10,240		1,246,413

Norwegian Cruise Line Holdings Ltd.¹		16,980		722,159

				2,554,554



Household Durables—0.3%

Mohawk Industries, Inc.¹		3,000		599,040



Media—1.0%

Comcast Corp., Cl. A		24,600		1,698,630

Madison Square Garden Co. (The),
Cl. A¹		2,880		493,949

				2,192,579



Specialty Retail—1.2%

AutoZone, Inc.¹		1,200		947,748

Home Depot, Inc. (The)		9,090		1,218,787

Ross Stores, Inc.		6,270		411,312

				2,577,847



Consumer Staples—3.1%

Beverages—1.2%

Coca-Cola European Partners plc		18,700		587,180

Molson Coors Brewing Co., Cl. B		8,760		852,436

PepsiCo, Inc.		11,300		1,182,319

				2,621,935



Food & Staples Retailing—0.4%

Kroger Co. (The)		22,660		781,996

Food Products—1.2%

Kraft Heinz Co. (The)		11,320		988,462

Mondelez International, Inc., Cl. A		20,540		910,538

Pinnacle Foods, Inc.		16,650		889,943

				2,788,943



Household Products—0.3%

Spectrum Brands Holdings, Inc.		6,140		751,106



Energy—2.8%

Oil, Gas & Consumable Fuels—2.8%

Chevron Corp.		17,583		2,069,519

HollyFrontier Corp.		25,626		839,508

Noble Energy, Inc.		33,037		1,257,388

Suncor Energy, Inc.		64,380		2,104,582

				6,270,997



Financials—5.6%

Commercial Banks—3.0%

Citigroup, Inc.		41,680		2,477,042

JPMorgan Chase & Co.		21,120		1,822,445

Signature Bank (New York)¹		5,270		791,554

Wells Fargo & Co.		27,730		1,528,200

				6,619,241



Consumer Finance—0.7%

Synchrony Financial		44,650		1,619,456

Insurance—0.9%

Chubb Ltd.		7,400		977,688

FNF Group		33,760		1,146,490

				2,124,178



Real Estate Investment Trusts (REITs)—1.0%

Digital Realty Trust, Inc.		10,460		1,027,799

Lamar Advertising Co., Cl. A		6,340		426,302

Mid-America Apartment Communities, Inc.		7,000		685,440

				2,139,541


	Shares		Value

Health Care—4.4%

Biotechnology—0.7%

BioMarin Pharmaceutical, Inc.¹		4,690	$	388,520

Celgene Corp.¹		9,130		1,056,797

				1,445,317



Health Care Equipment & Supplies—0.9%

Medtronic plc		13,609		969,369

NuVasive, Inc.¹		6,390		430,431

Stryker Corp.		5,730		686,511

				2,086,311



Health Care Providers & Services—0.4%

Centene Corp.¹		8,140		459,992

WellCare Health Plans, Inc.¹		3,640		498,971

				958,963



Life Sciences Tools & Services—0.2%

Agilent Technologies, Inc.		10,800		492,048

Pharmaceuticals—2.2%

Johnson & Johnson		19,780		2,278,854

Merck & Co., Inc.		20,150		1,186,230

Mylan NV¹		10,410		397,141

Prestige Brands Holdings, Inc.¹		18,180		947,178

Valeant Pharmaceuticals International, Inc.¹		6,830		99,172

				4,908,575



Industrials—4.4%

Aerospace & Defense—1.1%

L-3 Communications Holdings, Inc.		5,540		842,689

Lockheed Martin Corp.		3,150		787,311

Spirit AeroSystems Holdings, Inc., Cl. A		13,950		813,983

				2,443,983



Airlines—0.4%

Spirit Airlines, Inc.¹		14,760		854,014

Building Products—0.3%

Masonite International Corp.¹		10,530		692,874

Commercial Services & Supplies—1.2%

Johnson Controls International plc		18,993		782,322

KAR Auction Services, Inc.		25,080		1,068,910

Waste Connections, Inc.		12,280		965,085

				2,816,317



Construction & Engineering—0.3%

AECOM¹		16,370		595,213



Industrial Conglomerates—0.8%

General Electric Co.		53,950		1,704,820

Road & Rail—0.3%

Canadian Pacific Railway Ltd.		4,920		702,428



Information Technology—6.5%

Communications Equipment—0.3%

Palo Alto Networks, Inc.¹		5,250		656,512



Internet Software & Services—2.3%

Alphabet, Inc., Cl. C¹		3,730		2,878,889

Facebook, Inc., Cl. A¹		16,410		1,887,970

j2 Global, Inc.		6,490		530,882

				5,297,741



IT Services—0.4%

PayPal Holdings, Inc.¹		22,250		878,208



Semiconductors & Semiconductor Equipment—0.9%

Applied Materials, Inc.		36,920		1,191,408

Microchip Technology, Inc.		12,640		810,856

				2,002,264



Software—2.1%

Activision Blizzard, Inc.		26,980		974,248

Guidewire Software, Inc.¹		6,710		331,004

7 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued


	Shares		Value

Software (Continued)

Microsoft Corp.		43,290	$	2,690,041

ServiceNow, Inc.¹		5,724		425,522

Zynga, Inc., Cl. A¹		150,220		386,065

				4,806,880



Technology Hardware, Storage & Peripherals—0.5%

Western Digital Corp.		15,670		1,064,777



Materials—1.3%

Chemicals—0.9%

Eastman Chemical Co.		8,750		658,087

EI du Pont de Nemours & Co.		11,720		860,248

PPG Industries, Inc.		6,580		623,521

				2,141,856



Construction Materials—0.4%

Vulcan Materials Co.		7,120		891,068



Telecommunication Services—0.7%

Diversified Telecommunication Services—0.7%

ORBCOMM, Inc.¹		375		3,101

Verizon Communications, Inc.		30,180		1,611,009

				1,614,110



Utilities—1.2%

Electric Utilities—1.0%

PG&E Corp.		36,800		2,236,336



Gas Utilities—0.2%

Suburban Propane Partners LP²		14,400		432,864

Total Common Stocks (Cost $65,411,689)				75,895,691

	Principal Amount

Asset-Backed Securities—9.3%

American Credit Acceptance Receivables Trust:
Series 2014-3, Cl. B, 2.43%, 6/10/20³	$	109,340		109,440
Series 2014-4, Cl. B, 2.60%, 10/10/17³		86,998		87,269
Series 2015-1, Cl. B, 2.85%, 2/12/21³		445,000		447,190
Series 2015-3, Cl. B, 3.56%, 10/12/21³		360,000		365,116

American Express Credit Account Master Trust:
Series 2014-2, Cl. A, 1.26%, 1/15/20		80,000		80,055
Series 2014-3, Cl. A, 1.49%, 4/15/20		305,000		305,714
Series 2014-5, Cl. A, 0.994%, 5/15/20⁴		400,000		400,457
Series 2015-1, Cl. A, 0.994%, 1/15/20⁴		595,000		595,574

AmeriCredit Automobile Receivables Trust:
Series 2012-4, Cl. D, 2.68%, 10/9/18		115,000		115,064
Series 2013-2, Cl. E, 3.41%, 10/8/20³		415,000		418,831
Series 2013-3, Cl. E, 3.74%, 12/8/20³		180,000		182,563
Series 2013-4, Cl. D, 3.31%, 10/8/19		35,000		35,610
Series 2014-1, Cl. E, 3.58%, 8/9/21		355,000		360,884
Series 2014-2, Cl. E, 3.37%, 11/8/21		440,000		445,182

Cabela’s Credit Card Master Note Trust:
Series 2013-2A, Cl. A2, 1.354%, 8/16/21^3,4		105,000		105,481
Series 2016-1, Cl. A1, 1.78%, 6/15/22		340,000		339,087

Capital Auto Receivables Asset Trust:
Series 2013-1, Cl. D, 2.19%, 9/20/21		125,000		125,462
Series 2014-1, Cl. D, 3.39%, 7/22/19		140,000		143,267
Series 2014-3, Cl. D, 3.14%, 2/20/20		305,000		309,606
Series 2015-1, Cl. D, 3.16%, 8/20/20		195,000		197,408
Series 2015-4, Cl. D, 3.62%, 5/20/21		295,000		300,986
Series 2016-2, Cl. D, 3.16%, 11/20/23		65,000		64,949
Series 2016-3, Cl. D, 2.65%, 1/20/24		105,000		103,402

Capital One Multi-Asset Execution Trust:
Series 2007-A1, Cl. A1, 0.754%, 11/15/19⁴		310,000		310,001
Series 2014-A2, Cl. A2, 1.26%, 1/15/20		480,000		480,277
Series 2014-A5, Cl. A5, 1.48%, 7/15/20		660,000		661,415


	Principal Amount		Value

Asset-Backed Securities (Continued)

CarFinance Capital Auto Trust, Series
2015-1A, Cl. A, 1.75%, 6/15/21³	$	97,691	$	97,769

CarMax Auto Owner Trust:
Series 2013-2, Cl. D, 2.06%, 11/15/19		30,000		29,994
Series 2015-2, Cl. D, 3.04%, 11/15/21		115,000		115,178
Series 2015-3, Cl. D, 3.27%, 3/15/22		330,000		332,660
Series 2016-1, Cl. D, 3.11%, 8/15/22		220,000		218,441
Series 2016-3, Cl. D, 2.94%, 1/17/23		125,000		122,640
Series 2016-4, Cl. D, 2.91%, 4/17/23		275,000		269,033

Chase Issuance Trust:
Series 2007-A3, Cl. A3, 5.23%, 4/15/19		105,000		105,489
Series 2014-A1, Cl. A1, 1.15%, 1/15/19		595,000		595,007
Series 2014-A6, Cl. A6, 1.26%, 7/15/19		480,000		480,326
Series 2014-A7, Cl. A7, 1.38%, 11/15/19		595,000		595,579
Series 2016-A6, Cl. A6, 1.10%, 1/15/20		605,000		603,629

CPS Auto Receivables Trust:
Series 2014-A, Cl. A, 1.21%, 8/15/18³		17,508		17,500
Series 2014-C, Cl. A, 1.31%, 2/15/19³		59,912		59,897

CPS Auto Trust, Series 2012-C, Cl. A, 1.82%, 12/16/19³		12,147		12,149

Credit Acceptance Auto Loan Trust:
Series 2014-1A, Cl. B, 2.29%, 4/15/22³		270,000		270,734
Series 2014-2A, Cl. B, 2.67%, 9/15/22³		195,000		195,820

Discover Card Execution Note Trust,
Series 2014-A5, Cl. A, 1.39%, 4/15/20		585,000		585,914

Drive Auto Receivables Trust:
Series 2015-BA, Cl. C, 2.76%, 7/15/21³		345,000		347,254
Series 2015-DA, Cl. D, 4.59%, 1/17/23³		55,000		56,487
Series 2016-BA, Cl. C, 3.19%, 7/15/22³		170,000		171,334
Series 2016-CA, Cl. D, 4.18%, 3/15/24³		170,000		168,792

DT Auto Owner Trust:
Series 2013-2A, Cl. D, 4.18%, 6/15/20³		341,179		344,167
Series 2014-2A, Cl. D, 3.68%, 4/15/21³		615,000		621,036
Series 2014-3A, Cl. D, 4.47%, 11/15/21³		425,000		433,513
Series 2015-1A, Cl. C, 2.87%, 11/16/20³		203,411		204,099
Series 2016-1A, Cl. B, 2.79%, 5/15/20³		290,000		291,784
Series 2016-4A, Cl. B, 2.02%, 8/17/20³		255,000		254,098

Element Rail Leasing I LLC, Series 2014-1A, Cl. A1, 2.299%, 4/19/44³		250,983		244,360

Evergreen Credit Card Trust, Series 2016-3, Cl. A, 1.204%, 11/16/20^3,4		480,000		480,406

Exeter Automobile Receivables Trust:
Series 2014-1A, Cl. B, 2.42%, 1/15/19³		74,586		74,651
Series 2014-1A, Cl. C, 3.57%, 7/15/19³		280,000		281,842
Series 2014-2A, Cl. C, 3.26%, 12/16/19³		135,000		135,779

First Investors Auto Owner Trust:
Series 2013-3A, Cl. B, 2.32%, 10/15/19³		465,000		465,863
Series 2013-3A, Cl. D, 3.67%, 5/15/20³		165,000		166,183

Flagship Credit Auto Trust:
Series 2014-1, Cl. A, 1.21%, 4/15/19³		13,777		13,773
Series 2014-2, Cl. A, 1.43%, 12/16/19³		74,255		74,251
Series 2016-4, Cl. A1, 1.47%, 3/16/20³		298,498		298,261

Ford Credit Floorplan Master Owner Trust A, Series 2016-3, Cl. A1, 1.55%, 7/15/21		395,000		390,994

FRS I LLC, Series 2013-1A, Cl. A1, 1.80%, 4/15/43³		30,895		30,267

GM Financial Automobile Leasing Trust, Series 2015-1, Cl. D, 3.01%, 3/20/20		280,000		283,309

8 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


	Principal Amount		Value

Asset-Backed Securities (Continued)

Navistar Financial Dealer Note Master Owner Trust II:
Series 2015-1, Cl. B, 2.456%, 6/25/20^3,4	$	70,000	$	70,063
Series 2015-1, Cl. D, 3.906%, 6/25/20^3,4		30,000		30,042
Series 2016-1, Cl. D, 4.056%, 9/27/21^3,4		80,000		80,526

Santander Drive Auto Receivables Trust:
Series 2013-A, Cl. E, 4.71%, 1/15/21³		325,000		333,329
Series 2014-2, Cl. D, 2.76%, 2/18/20		200,000		202,448
Series 2016-2, Cl. D, 3.39%, 4/15/22		115,000		115,915

SNAAC Auto Receivables Trust,
Series 2014-1A, Cl. D, 2.88%, 1/15/20³		165,000		164,288

Synchrony Credit Card Master Note Trust,
Series 2012-6, Cl. A, 1.36%, 8/17/20		165,000		165,108

TCF Auto Receivables Owner Trust:
Series 2014-1A, Cl. C, 3.12%, 4/15/21³		115,000		115,061
Series 2015-1A, Cl. D, 3.53%, 3/15/22³		190,000		190,377

Trip Rail Master Funding LLC,
Series 2014-1A, Cl. A1, 2.863%, 4/15/44³		121,421		118,556

United Auto Credit Securitization Trust,
Series 2015-1, Cl. D, 2.92%, 6/17/19³		260,000		260,770

Westlake Automobile Receivables Trust:
Series 2014-2A, Cl. D, 2.86%, 7/15/21³		195,000		195,943
Series 2015-1A, Cl. C, 2.29%, 11/16/20³		205,000		205,579
Series 2015-2A, Cl. C, 2.45%, 1/15/21³		250,000		251,717

World Financial Network Credit Card Master Trust:
Series 2014-C, Cl. A, 1.60%, 8/16/21		300,000		300,464
Series 2015-C, Cl. A, 1.26%, 3/15/21		220,000		220,145
Series 2016-B, Cl. A, 1.44%, 6/15/22		220,000		219,296

Total Asset-Backed Securities (Cost $20,825,130)				20,870,179


Mortgage-Backed Obligations—28.1%

Government Agency—19.5%

FHLMC/FNMA/FHLB/Sponsored—16.6%

Federal Home Loan Mortgage Corp. Gold Pool:
4.50%, 10/1/18		13,894		14,260
5.00%, 12/1/34		2,699		2,952
5.50%, 9/1/39		374,492		416,061
6.50%, 4/1/18-4/1/34		27,027		30,462
7.00%, 10/1/31-10/1/37		113,399		129,001
9.00%, 8/1/22-5/1/25		2,089		2,269

Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security:
Series 183,Cl. IO, 44.692%, 4/1/27⁵		62,957		14,324
Series 192,Cl. IO, 95.567%, 2/1/28⁵		18,708		4,491
Series 243,Cl. 6, 3.673%, 12/15/32⁵		52,328		9,686

Federal Home Loan Mortgage Corp.,
Mtg.-Linked Amortizing Global Debt
Securities, Series 2012-1, Cl. A10, 2.06%, 1/15/22		196,117		197,952

Federal Home Loan Mortgage Corp.,
Principal-Only Stripped Mtg.-Backed
Security, Series 176, Cl. PO, 4.198%, 6/1/26⁶		20,803		18,950

Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
Series 2426,Cl. BG, 6.00%, 3/15/17		2,481		2,506
Series 2427,Cl. ZM, 6.50%, 3/15/32		110,008		123,741
Series 2461,Cl. PZ, 6.50%, 6/15/32		45,574		53,165
Series 2564,Cl. MP, 5.00%, 2/15/18		40,460		41,118
Series 2585,Cl. HJ, 4.50%, 3/15/18		20,835		21,367
Series 2626,Cl. TB, 5.00%, 6/15/33		90,332		96,390
Series 2635,Cl. AG, 3.50%, 5/15/32		38,781		39,956
Series 2707,Cl. QE, 4.50%, 11/15/18		154,343		157,741


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: (Continued)
Series 2770,Cl. TW, 4.50%, 3/15/19	$	7,024	$	7,239
Series 3010,Cl. WB, 4.50%, 7/15/20		22,499		23,194
Series 3025,Cl. SJ, 22.169%, 8/15/35⁴		16,980		25,403
Series 3030,Cl. FL, 1.104%, 9/15/35⁴		90,115		89,710
Series 3741,Cl. PA, 2.15%, 2/15/35		179,346		180,509
Series 3815,Cl. BD, 3.00%, 10/15/20		4,982		5,039
Series 3822,Cl. JA, 5.00%, 6/15/40		52,702		55,159
Series 3840,Cl. CA, 2.00%, 9/15/18		3,759		3,773
Series 3848,Cl. WL, 4.00%, 4/15/40		107,637		111,616
Series 3857,Cl. GL, 3.00%, 5/15/40		6,358		6,504
Series 4221,Cl. HJ, 1.50%, 7/15/23		639,214		635,608

Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2130,Cl. SC, 70.907%, 3/15/29⁵		55,414		10,015
Series 2796,Cl. SD, 59.87%, 7/15/26⁵		89,600		13,793
Series 2920,Cl. S, 18.421%, 1/15/35⁵		459,941		74,302
Series 2922,Cl. SE, 23.67%, 2/15/35⁵		28,032		4,335
Series 2981,Cl. AS, 11.50%, 5/15/35⁵		253,772		42,490
Series 3397,Cl. GS, 0.00%, 12/15/37^5,7		27,999		4,868
Series 3424,Cl. EI, 0.00%, 4/15/38^5,7		15,252		1,717
Series 3450,Cl. BI, 21.117%, 5/15/38⁵		84,928		12,172
Series 3606,Cl. SN, 24.05%, 12/15/39⁵		44,286		7,000

Federal National Mortgage Assn.:
2.50%, 1/1/32⁸		2,525,000		2,527,975
3.00%, 1/1/32⁸		5,430,000		5,570,518
3.50%, 1/1/47⁸		7,455,000		7,636,739
4.00%, 1/15/47⁸		8,815,000		9,263,491
4.50%, 1/1/47⁸		2,880,000		3,097,026
5.00%, 1/1/47⁸		2,685,000		2,924,653

Federal National Mortgage Assn. Pool:
5.00%, 3/1/21		7,000		7,194
5.50%, 9/1/20		2,238		2,345
6.00%, 11/1/17-3/1/37		169,123		191,534
6.50%, 5/1/17-10/1/19		3,855		3,875
7.00%, 11/1/17-10/1/35		8,701		9,106
7.50%, 1/1/33		65,264		78,444
8.50%, 7/1/32		4,258		4,623

Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 222,Cl. 2, 99.999%, 6/25/23⁵		137,237		20,556
Series 233,Cl. 2, 99.999%, 8/25/23⁵		93,457		16,939
Series 252,Cl. 2, 99.999%, 11/25/23⁵		125,944		21,653
Series 319,Cl. 2, 0.00%, 2/25/32^5,7		29,529		7,157
Series 320,Cl. 2, 27.804%, 4/25/32⁵		10,262		2,974
Series 321,Cl. 2, 0.00%, 4/25/32^5,7		102,491		24,163
Series 331,Cl. 9, 22.188%, 2/25/33⁵		121,875		26,003
Series 334,Cl. 17, 10.754%, 2/25/33⁵		67,513		13,930
Series 339,Cl. 12, 0.00%, 6/25/33^5,7		91,608		18,938
Series 339,Cl. 7, 0.00%, 11/25/33^5,7		259,782		52,475
Series 343,Cl. 13, 0.00%, 9/25/33^5,7		95,156		18,992
Series 345,Cl. 9, 0.00%, 1/25/34^5,7		87,080		16,718
Series 351,Cl. 10, 0.00%, 4/25/34^5,7		11,771		2,418
Series 351,Cl. 8, 0.00%, 4/25/34^5,7		40,979		8,408
Series 356,Cl. 10, 0.00%, 6/25/35^5,7		28,738		5,817
Series 356,Cl. 12, 0.00%, 2/25/35^5,7		15,249		3,453
Series 362,Cl. 13, 0.00%, 8/25/35^5,7		110,966		22,980
Series 364,Cl. 16, 0.00%, 9/25/35^5,7		78,985		15,399

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass
Pass-Through Certificates:
Series 1998-61,Cl. PL, 6.00%, 11/25/28		48,985		55,594
Series 2003-100,Cl. PA, 5.00%, 10/25/18		100,168		102,423
Series 2003-130,Cl. CS, 12.588%, 12/25/33⁴		8,867		9,823
Series 2003-84,Cl. GE, 4.50%, 9/25/18		7,611		7,811

9 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass
Pass-Through Certificates: (Continued)
Series 2004-101,Cl. BG, 5.00%, 1/25/20	$	1,783	$	1,786
Series 2004-25,Cl. PC, 5.50%, 1/25/34		87,113		89,870
Series 2005-104,Cl. MC, 5.50%, 12/25/25		206,626		224,358
Series 2005-31,Cl. PB, 5.50%, 4/25/35		250,000		282,596
Series 2005-73,Cl. DF, 1.006%, 8/25/35⁴		161,539		162,225
Series 2006-11,Cl. PS, 21.794%, 3/25/36⁴		62,618		93,203
Series 2006-46,Cl. SW, 21.427%, 6/25/36⁴		45,527		61,253
Series 2006-50,Cl. KS, 21.428%, 6/25/36⁴		9,385		13,731
Series 2008-75,Cl. DB, 4.50%, 9/25/23		32,146		32,786
Series 2009-113,Cl. DB, 3.00%, 12/25/20		113,625		115,063
Series 2009-36,Cl. FA, 1.696%, 6/25/37⁴		65,431		66,923
Series 2009-37,Cl. HA, 4.00%, 4/25/19		27,283		27,662
Series 2009-70,Cl. TL, 4.00%, 8/25/19		304,236		308,186
Series 2010-43,Cl. KG, 3.00%, 1/25/21		62,160		63,143
Series 2011-15,Cl. DA, 4.00%, 3/25/41		28,545		29,427
Series 2011-3,Cl. EL, 3.00%, 5/25/20		185,734		188,046
Series 2011-3,Cl. KA, 5.00%, 4/25/40		147,761		159,065
Series 2011-38,Cl. AH, 2.75%, 5/25/20		4,051		4,089
Series 2011-82,Cl. AD, 4.00%, 8/25/26		133,379		136,170

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2001-65,Cl. S, 7.946%, 11/25/31⁵		115,825		22,638
Series 2001-81,Cl. S, 10.827%, 1/25/32⁵		30,217		8,549
Series 2002-47,Cl. NS, 5.349%, 4/25/32⁵		77,854		18,940
Series 2002-51,Cl. S, 5.475%, 8/25/32⁵		71,488		13,679
Series 2002-52,Cl. SD, 30.059%, 9/25/32⁵		110,216		22,313
Series 2002-77,Cl. SH, 24.093%, 12/18/32⁵		42,876		8,990
Series 2002-84,Cl. SA, 6.409%, 12/25/32⁵		109,294		22,108
Series 2002-9,Cl. MS, 7.986%, 3/25/32⁵		30,931		6,346
Series 2003-33,Cl. SP, 12.776%, 5/25/33⁵		120,221		24,257
Series 2003-4,Cl. S, 2.828%, 2/25/33⁵		64,795		14,510
Series 2003-46,Cl. IH, 0.00%, 6/25/23^5,7		215,327		25,875
Series 2004-54,Cl. DS, 63.309%, 11/25/30⁵		89,503		16,027
Series 2004-56,Cl. SE, 10.246%, 10/25/33⁵		22,719		5,037
Series 2005-12,Cl. SC, 31.957%, 3/25/35⁵		13,154		2,055
Series 2005-14,Cl. SE, 25.943%, 3/25/35⁵		43,940		6,819
Series 2005-40,Cl. SA, 36.661%, 5/25/35⁵		237,341		42,604
Series 2005-52,Cl. JH, 40.584%, 5/25/35⁵		622,040		96,550
Series 2005-93,Cl. SI, 5.344%, 10/25/35⁵		51,024		9,097
Series 2007-88,Cl. XI, 0.00%, 6/25/37^5,7		132,556		22,841


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security: (Continued)
Series 2008-55,Cl. SA, 0.00%, 7/25/38^5,7	$	59,953	$	6,477
Series 2009-8,Cl. BS, 7.807%, 2/25/24⁵		4,522		133
Series 2011-96,Cl. SA, 14.27%, 10/25/41⁵		128,925		22,764
Series 2012-134,Cl. SA, 9.234%, 12/25/42⁵		495,383		103,342
Series 2012-40,Cl. PI, 0.00%, 4/25/41^5,7		279,280		37,461

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Principal-Only Stripped Mtg.-Backed Security, Series 1993-184, Cl. M, 5.343%, 9/25/23⁶		49,858		46,312

				37,148,291

GNMA/Guaranteed—2.9%

Government National Mortgage Assn. I Pool:
7.00%, 1/15/24		16,679		17,097
7.50%, 1/15/23-6/15/24		23,348		24,649
8.00%, 5/15/17-4/15/23		15,957		17,328
8.50%, 8/15/17-12/15/17		263		263

Government National Mortgage Assn. II Pool:
3.50%, 1/21/47⁸		4,180,000		4,342,511
4.00%, 1/1/47⁸		1,965,000		2,085,804

Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 2002-15,Cl. SM, 99.999%, 2/16/32⁵		139,269		19,663
Series 2002-76,Cl. SY, 12.18%, 12/16/26⁵		270,928		42,843
Series 2007-17,Cl. AI, 54.719%, 4/16/37⁵		349,107		61,175
Series 2011-52,Cl. HS, 32.556%, 4/16/41⁵		170,245		27,904

				6,639,237

Non-Agency—8.6%

Commercial—5.7%

Banc of America Funding Trust, Series 2014-R7, Cl. 3A1, 3.003%, 3/26/36⁴		218,740		219,117

BCAP LLC Trust, Series 2011-R11, Cl. 18A5, 2.69%, 9/26/35^3,4		130,174		130,097

CD Commercial Mortgage Trust, Series 2016-CD2, Cl. AM, 3.668%, 11/10/49⁴		155,000		158,974

Chase Mortgage Finance Trust, Series 2005-A2, Cl. 1A3, 2.966%, 1/25/36⁴		158,749		150,229

COMM Mortgage Trust:
Series 2013-CR6,Cl. AM, 3.147%, 3/10/46³		255,000		254,997
Series 2013-CR7,Cl. D, 4.354%, 3/10/46^3,4		445,000		405,092
Series 2014-CR21,Cl. AM, 3.987%, 12/10/47		865,000		895,720
Series 2014-LC15,Cl. AM, 4.198%, 4/10/47		95,000		99,902
Series 2014-UBS6,Cl. AM, 4.048%, 12/10/47		495,000		507,536
Series 2015-CR23,Cl. AM, 3.801%, 5/10/48		280,000		285,599

COMM Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 2012-CR5, Cl. XA, 0.00%, 12/10/45^5,7		393,738		26,353

CSMC, Series 2006-6, Cl. 1A4, 6%, 7/25/36		163,746		122,837

Deutsche Bank Commercial Mortgage Trust, Series 2016-C1, Cl. AM, 3.539%, 5/10/49		155,000		156,477

10 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


	Principal Amount		Value

Commercial (Continued)

First Horizon Alternative Mortgage Securities Trust:
Series 2004-FA2,Cl. 3A1, 6.00%, 1/25/35	$	86,159	$	79,261
Series 2005-FA8,Cl. 1A6, 1.406%, 11/25/35⁴		103,750		69,797

FREMF Mortgage Trust:
Series 2013-K25,Cl. C, 3.743%, 11/25/45^3,4		60,000		57,662
Series 2013-K26,Cl. C, 3.599%, 12/25/45^3,4		40,000		37,962
Series 2013-K27,Cl. C, 3.616%, 1/25/46^3,4		110,000		105,161
Series 2013-K28,Cl. C, 3.494%, 6/25/46^3,4		450,000		426,581
Series 2013-K502,Cl. C, 3.077%, 3/25/45^3,4		220,000		220,360
Series 2013-K712,Cl. C, 3.365%, 5/25/45^3,4		70,000		70,071
Series 2013-K713,Cl. C, 3.165%, 4/25/46^3,4		145,000		142,342
Series 2014-K715,Cl. C, 4.126%, 2/25/46^3,4		35,000		34,548

GSMSC Pass-Through Trust, Series 2009-3R, Cl. 1A2, 6%, 4/25/37^3,4		383,140		362,402

GSR Mortgage Loan Trust, Series 2005- AR4, Cl. 6A1, 3.209%, 7/25/35⁴		33,291		32,836

JP Morgan Chase Commercial Mortgage Securities Trust:
Series 2013-C10,Cl. AS, 3.372%, 12/15/47		325,000		329,944
Series 2013-C16,Cl. AS, 4.517%, 12/15/46		330,000		355,671
Series 2013-LC11,Cl. AS, 3.216%, 4/15/46		40,000		40,175
Series 2014-C20,Cl. AS, 4.043%, 7/15/47		225,000		235,061

JP Morgan Mortgage Trust, Series 2007-A1, Cl. 5A1, 3.178%, 7/25/35⁴		138,947		139,281

JP Morgan Resecuritization Trust, Series 2009-5, Cl. 1A2, 3.08%, 7/26/36^3,4		206,871		187,434

JPMBB Commercial Mortgage Securities Trust:
Series 2014-C19,Cl. AS, 4.243%, 4/15/47⁴		140,000		148,313
Series 2014-C25,Cl. AS, 4.065%, 11/15/47		385,000		402,918
Series 2014-C26,Cl. AS, 3.80%, 1/15/48		190,000		195,371

JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Cl. AS, 3.385%, 12/15/49		240,000		239,035

MASTR Adjustable Rate Mortgages Trust, Series 2004-13, Cl. 2A2, 3.034%, 4/21/34⁴		52,463		53,222

Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C9,Cl. AS, 3.456%, 5/15/46		240,000		242,818
Series 2014-C19,Cl. AS, 3.832%, 12/15/47		720,000		738,515
Series 2016-C30,Cl. AS, 3.175%, 9/15/49		405,000		391,755

Morgan Stanley Re-Remic Trust, Series 2012-R3, Cl. 1B, 2.615%, 11/26/36^3,4		249,329		191,312

Morgan Stanley Resecuritization Trust, Series 2013-R9, Cl. 3A, 2.756%, 6/26/46^3,4		387,494		387,179

RBSSP Resecuritization Trust, Series 2010-1, Cl. 2A1, 2.625%, 7/26/45^3,4		28,921		28,938

Structured Adjustable Rate Mortgage Loan Trust, Series 2004-10, Cl. 2A, 3.032%, 8/25/34⁴		241,927		242,289


	Principal Amount		Value

Commercial (Continued)

Structured Agency Credit Risk Debt Nts.:
Series 2013-DN1,Cl. M1, 4.156%, 7/25/23⁴	$	228,597	$	232,100
Series 2014-DN1,Cl. M1, 1.756%, 2/25/24⁴		17,372		17,379
Series 2014-HQ2,Cl. M1, 2.206%, 9/25/24⁴		50,026		50,211
Series 2015-DNA3,Cl. M1, 2.106%, 4/25/28⁴		16,036		16,044
Series 2015-HQA2,Cl. M2, 3.556%, 5/25/28⁴		10,000		10,268
Series 2016-DNA2,Cl. M1, 2.006%, 10/25/28⁴		280,242		280,613
Series 2016-DNA3,Cl. M1, 1.856%, 12/25/28⁴		281,442		282,111
Series 2016-DNA4,Cl. M1, 1.556%, 3/25/29⁴		195,780		195,744
Series 2016-HQA2,Cl. M1, 1.956%, 11/25/28⁴		192,155		192,384
Series 2016-HQA3,Cl. M1, 1.556%, 3/25/29⁴		235,611		235,893
Series 2016-HQA4,Cl. M1, 1.556%, 4/25/29⁴		380,028		379,572

Wells Fargo Commercial Mortgage Trust: Series 2015-C29,Cl. AS, 4.013%, 6/15/48⁴		165,000		169,490
Series 2016-C37,Cl. AS, 4.018%, 12/15/49		390,000		402,855

WF-RBS Commercial Mortgage Trust:
Series 2012-C7,Cl. E, 4.835%, 6/15/45^3,4		80,000		75,364
Series 2013-C14,Cl. AS, 3.488%, 6/15/46		155,000		158,046
Series 2014-C20,Cl. AS, 4.176%, 5/15/47		150,000		158,160
Series 2014-LC14,Cl. AS, 4.351%, 3/15/47⁴		160,000		170,038

WF-RBS Commercial Mortgage Trust, Interest-Only Commercial Mtg. Pass- Through Certificates, Series 2011-C3, Cl. XA, 0.00%, 3/15/44^3,5,7		2,657,822		114,090

				12,741,506

Residential—2.9%

Alternative Loan Trust, Series 2005- 29CB, Cl. A4, 5%, 7/25/35		285,764		250,900

Banc of America Funding Trust: Series 2007-1,Cl. 1A3, 6.00%, 1/25/37		65,501		58,458
Series 2007-C,Cl. 1A4, 3.096%, 5/20/36⁴		28,838		26,085

Banc of America Mortgage Trust, Series 2004-E, Cl. 2A6, 3.342%, 6/25/34⁴		82,952		82,153

Bear Stearns ARM Trust:
Series 2005-2,Cl. A1, 2.92%, 3/25/35⁴		239,436		241,188
Series 2005-9,Cl. A1, 2.83%, 10/25/35⁴		630,956		611,211
Series 2006-1,Cl. A1, 2.91%, 2/25/36⁴		242,423		241,068

Carrington Mortgage Loan Trust, Series 2006-FRE1, Cl. A2, 0.866%, 7/25/36⁴		2,740		2,740

CHL Mortgage Pass-Through Trust:
Series 2005-26,Cl. 1A8, 5.50%, 11/25/35		84,514		78,673
Series 2006-6,Cl. A3, 6.00%, 4/25/36		46,113		41,272

Citigroup Mortgage Loan Trust, Inc.,
Series 2006-AR1, Cl. 1A1, 2.87%, 10/25/35⁴		533,478		532,534

Connecticut Avenue Securities:
Series 2014-C01,Cl. M1, 2.356%, 1/25/24⁴		29,292		29,452

11 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Residential (Continued)

Connecticut Avenue Securities: (Continued)
Series 2014-C02,Cl. 2M1, 1.706%, 5/25/24⁴	$	107,264	$	107,426
Series 2014-C03,Cl. 1M1, 1.956%, 7/25/24⁴		343,382		344,312
Series 2014-C03,Cl. 2M1, 1.956%, 7/25/24⁴		158,877		159,053
Series 2014-C04,Cl. 2M1, 2.856%, 11/25/24⁴		2,808		2,809
Series 2015-C02,Cl. 1M1, 1.906%, 5/25/25⁴		13,346		13,348
Series 2015-C03,Cl. 1M1, 2.256%, 7/25/25⁴		100,821		101,016
Series 2015-C03,Cl. 2M1, 2.256%, 7/25/25⁴		29,289		29,350
Series 2016-C02,Cl. 1M1, 2.906%, 9/25/28⁴		18,942		19,143
Series 2016-C03,Cl. 1M1, 2.756%, 10/25/28⁴		9,647		9,780
Series 2016-C03,Cl. 2M1, 2.956%, 10/25/28⁴		9,508		9,608
Series 2016-C06,Cl. 1M1, 2.056%, 4/25/29⁴		351,640		352,464
Series 2016-C07,Cl. 2M1, 2.056%, 4/25/29⁴		203,693		203,948

HomeBanc Mortgage Trust, Series 2005-3, Cl. A2, 1.066%, 7/25/35⁴		40,478		39,876

RALI Trust, Series 2006-QS13, Cl. 1A8, 6%, 9/25/36		11,106		9,083

WaMu Mortgage Pass-Through Certificates Trust:
Series 2003-AR10,Cl. A7, 2.825%, 10/25/33⁴		122,402		124,989
Series 2005-AR14,Cl. 1A4, 2.792%, 12/25/35⁴		125,339		121,380
Series 2005-AR16,Cl. 1A1, 2.85%, 12/25/35⁴		114,413		107,776

Wells Fargo Mortgage-Backed Securities Trust:
Series 2005-AR1,Cl. 1A1, 2.807%, 2/25/35⁴		24,840		25,233
Series 2005-AR10,Cl. 1A1, 3.022%, 6/25/35⁴		475,103		494,224
Series 2005-AR13,Cl. 1A5, 3.058%, 5/25/35⁴		85,087		85,334
Series 2005-AR15,Cl. 1A2, 2.983%, 9/25/35⁴		167,729		163,231
Series 2005-AR15,Cl. 1A6, 2.983%, 9/25/35⁴		326,957		310,974
Series 2005-AR4,Cl. 2A2, 3.067%, 4/25/35⁴		324,691		325,045
Series 2006-AR10,Cl. 1A1, 3.027%, 7/25/36⁴		57,639		55,500
Series 2006-AR10,Cl. 5A5, 3.08%, 7/25/36⁴		234,066		230,706
Series 2006-AR14,Cl. 1A2, 3.062%, 10/25/36⁴		55,551		52,026
Series 2006-AR2,Cl. 2A3, 3.003%, 3/25/36⁴		29,453		28,967
Series 2006-AR7,Cl. 2A4, 3.089%, 5/25/36⁴		170,315		162,524
Series 2006-AR8,Cl. 2A1, 3.083%, 4/25/36⁴		186,588		184,049
Series 2006-AR8,Cl. 2A4, 3.083%, 4/25/36⁴		111,350		109,836
Series 2007-16,Cl. 1A1, 6.00%, 12/28/37		60,196		62,578


	Principal Amount		Value

Residential (Continued)

Wells Fargo Mortgage-Backed Securities Trust: (Continued)
Series 2007-AR8,Cl. A1, 3.15%, 11/25/37⁴	$	386,191	$	346,435

				6,587,757

Total Mortgage-Backed Obligations (Cost $63,246,473)				63,116,791


U.S. Government Obligations—0.6%

Federal Home Loan Bank Nts., 1.375%, 11/15/19		75,000		74,695

Federal National Mortgage Assn. Nts.:
1.00%, 10/24/19		117,000		115,371
1.875%, 9/24/26		536,000		492,392

United States Treasury Nts., 1.50%, 5/31/19^9,10		552,000		554,444

Total U.S. Government Obligations (Cost $1,278,033)				1,236,902


Non-Convertible Corporate Bonds and Notes—30.6%

Consumer Discretionary—5.3%

Auto Components—0.1%

BorgWarner, Inc., 4.375% Sr. Unsec. Nts., 3/15/45		128,000		123,277

Automobiles—1.4%

Daimler Finance North America LLC, 8.50% Sr. Unsec. Unsub. Nts., 1/18/31		185,000		278,553

Ford Motor Credit Co. LLC, 3.664% Sr. Unsec. Nts., 9/8/24		807,000		787,787

General Motors Co., 6.25% Sr. Unsec. Nts., 10/2/43		322,000		356,573

General Motors Financial Co., Inc., 3% Sr. Unsec. Nts., 9/25/17		401,000		404,896

Harley-Davidson, Inc., 4.625% Sr. Unsec. Nts., 7/28/45		107,000		105,738

Hyundai Capital America, 2.40% Sr. Unsec. Nts., 10/30/18³		392,000		393,664

Nissan Motor Acceptance Corp.:
1.55% Sr. Unsec. Nts., 9/13/19³		91,000		89,621
2.00% Sr. Unsec. Nts., 3/8/19³		279,000		278,368

ZF North America Capital, Inc., 4.75% Sr. Unsec. Nts., 4/29/25³		363,000		370,714

				3,065,914

Diversified Consumer Services—0.2%

Service Corp. International, 5.375% Sr. Unsec. Nts., 5/15/24		350,000		366,625

Hotels, Restaurants & Leisure—0.3%

Marriott International, Inc.:
3.25% Sr. Unsec. Nts., 9/15/22		158,000		159,351
6.375% Sr. Unsec. Nts., 6/15/17		354,000		361,717

McDonald’s Corp., 2.75% Sr. Unsec. Nts., 12/9/20		173,000		175,717

				696,785

Household Durables—0.8%

Lennar Corp., 4.75% Sr. Unsec. Nts., 5/30/25		373,000		365,540

Newell Brands, Inc.:
5.00% Sr. Unsec. Nts., 11/15/23		391,000		419,396
5.50% Sr. Unsec. Nts., 4/1/46		91,000		104,512

PulteGroup, Inc., 5% Sr. Unsec. Nts., 1/15/27		384,000		366,240

Toll Brothers Finance Corp., 4.375% Sr. Unsec. Nts., 4/15/23		410,000		410,512

Whirlpool Corp.: 1.35% Sr. Unsec. Nts., 3/1/17		123,000		123,028

12 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


	Principal Amount		Value

Household Durables (Continued)

Whirlpool Corp.: (Continued) 1.65% Sr. Unsec. Nts., 11/1/17	$	105,000	$	105,166

				1,894,394

Leisure Equipment & Products—0.2%

Mattel, Inc., 1.70% Sr. Unsec. Nts., 3/15/18		433,000		432,099

Media—1.3%

21st Century Fox America, Inc., 4.75% Sr. Unsec. Nts., 11/15/46³		148,000		148,737

Charter Communications Operating LLC/Charter Communications Operating Capital:
4.464% Sr. Sec. Nts., 7/23/22		165,000		172,460
6.484% Sr. Sec. Nts., 10/23/45		237,000		274,471

Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22		211,000		285,502

Comcast Corp., 2.35% Sr. Unsec. Nts., 1/15/27		170,000		157,077

Historic TW, Inc., 9.15% Debs., 2/1/23		118,000		151,355

Interpublic Group of Cos., Inc. (The), 4.20% Sr. Unsec. Nts., 4/15/24		123,000		126,435

Sky plc:
3.75% Sr. Unsec. Nts., 9/16/24³		167,000		167,605
6.10% Sr. Unsec. Nts., 2/15/18³		125,000		130,443

Thomson Reuters Corp., 1.65% Sr. Unsec. Nts., 9/29/17		416,000		416,524

Time Warner Cable LLC, 4.50% Sr. Unsec. Unsub. Nts., 9/15/42		145,000		131,561

Time Warner, Inc., 2.95% Sr. Unsec. Nts., 7/15/26		180,000		167,766

Viacom, Inc.:
2.25% Sr. Unsec. Nts., 2/4/22		75,000		70,493
3.45% Sr. Unsec. Nts., 10/4/26		90,000		83,223
4.375% Sr. Unsec. Nts., 3/15/43		114,000		90,969

Virgin Media Secured Finance plc, 5.25% Sr. Sec. Nts., 1/15/26³		246,000		243,848

				2,818,469

Multiline Retail—0.1%

Dollar Tree, Inc., 5.75% Sr. Sec. Nts., 3/1/23		300,000		319,146

Specialty Retail—0.6%

AutoZone, Inc.:
1.30% Sr. Unsec. Nts., 1/13/17		63,000		63,002
1.625% Sr. Unsec. Nts., 4/21/19		68,000		67,400

Best Buy Co., Inc., 5.50% Sr. Unsec. Nts., 3/15/21		223,000		245,073

L Brands, Inc., 5.625% Sr. Unsec. Nts., 2/15/22		128,000		136,800

Lowe’s Cos., Inc., 3.70% Sr. Unsec. Nts., 4/15/46		163,000		152,220

Ross Stores, Inc., 3.375% Sr. Unsec. Nts., 9/15/24		225,000		226,670

Sally Holdings LLC/Sally Capital, Inc.,
5.625% Sr. Unsec. Nts., 12/1/25		350,000		365,750

Signet UK Finance plc, 4.70% Sr. Unsec. Nts., 6/15/24		119,000		114,089

				1,371,004

Textiles, Apparel & Luxury Goods—0.3%

Hanesbrands, Inc., 4.875% Sr. Unsec. Nts., 5/15/26³		256,000		251,520

Levi Strauss & Co., 5% Sr. Unsec. Nts., 5/1/25		322,000		323,610

PVH Corp., 4.50% Sr. Unsec. Unsub. Nts., 12/15/22		163,000		166,260

				741,390


	Principal Amount		Value

Consumer Staples—3.7%

Beverages—1.1%

Anheuser-Busch InBev Finance, Inc.:
1.90% Sr. Unsec. Nts., 2/1/19	$	448,000	$	448,770
3.65% Sr. Unsec. Nts., 2/1/26		57,000		57,885
4.90% Sr. Unsec. Nts., 2/1/46		86,000		92,706

Anheuser-Busch InBev Worldwide, Inc., 8.20% Sr. Unsec. Unsub. Nts., 1/15/39		262,000		394,630

Constellation Brands, Inc., 4.75% Sr. Unsec. Nts., 11/15/24		355,000		378,608

Molson Coors Brewing Co.:
2.10% Sr. Unsec. Nts., 7/15/21		329,000		320,467
4.20% Sr. Unsec. Nts., 7/15/46		87,000		81,279

Pernod Ricard SA:
2.95% Sr. Unsec. Nts., 1/15/17³		423,000		423,231
4.25% Sr. Unsec. Nts., 7/15/22³		260,000		272,101

				2,469,677

Food & Staples Retailing—0.9%

CVS Health Corp., 2.875% Sr. Unsec. Nts., 6/1/26		359,000		342,374

Koninklijke Ahold Delhaize NV, 6.50% Sr. Unsec. Nts., 6/15/17		242,000		247,273

Kroger Co. (The):
2.00% Sr. Unsec. Nts., 1/15/19		9,000		9,023
6.40% Sr. Unsec. Nts., 8/15/17		386,000		397,515
6.90% Sr. Unsec. Nts., 4/15/38		109,000		139,589

Walgreens Boots Alliance, Inc.:
1.75% Sr. Unsec. Nts., 5/30/18		260,000		260,310
3.10% Sr. Unsec. Nts., 6/1/23		395,000		392,520

Wal-Mart Stores, Inc., 4.30% Sr. Unsec. Nts., 4/22/44		195,000		205,865

				1,994,469

Food Products—1.3%

Bunge Ltd. Finance Corp.:
3.20% Sr. Unsec. Nts., 6/15/17		140,000		141,066
3.25% Sr. Unsec. Nts., 8/15/26		232,000		222,906
8.50% Sr. Unsec. Nts., 6/15/19		320,000		366,874

Ingredion, Inc., 1.80% Sr. Unsec. Nts., 9/25/17		424,000		424,591

JM Smucker Co. (The), 1.75% Sr. Unsec. Nts., 3/15/18		334,000		334,491

Kraft Heinz Foods Co.:
2.80% Sr. Unsec. Nts., 7/2/20		342,000		345,290
4.375% Sr. Unsec. Nts., 6/1/46		208,000		196,119

Lamb Weston Holdings, Inc., 4.875% Sr. Unsec. Nts., 11/1/26³		193,000		191,432

Mondelez International Holdings Netherlands BV, 1.625% Sr. Unsec. Nts., 10/28/19³		374,000		366,701

TreeHouse Foods, Inc., 6% Sr. Unsec. Nts., 2/15/24³		180,000		189,450

				2,778,920

Tobacco—0.4%

Altria Group, Inc., 3.875% Sr. Unsec. Nts., 9/16/46		230,000		212,721

Imperial Brands Finance plc, 2.05% Sr. Unsec. Nts., 7/20/18³		411,000		410,994

Reynolds American, Inc., 5.85% Sr. Unsec. Nts., 8/15/45		290,000		344,040

				967,755

Energy—2.6%

Energy Equipment & Services—0.5%

Halliburton Co., 5% Sr. Unsec. Nts., 11/15/45		102,000		110,839

Helmerich & Payne International Drilling Co., 4.65% Sr. Unsec. Nts., 3/15/25		165,000		170,566

13 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Energy Equipment & Services (Continued)

Schlumberger Holdings Corp.:
1.90% Sr. Unsec. Nts., 12/21/17³	$	368,000	$	369,437
4.00% Sr. Unsec. Nts., 12/21/25³		206,000		215,834

Sinopec Group Overseas Development 2014 Ltd., 1.75% Sr. Unsec. Nts., 4/10/17³		431,000		430,988

				1,297,664

Oil, Gas & Consumable Fuels—2.1%

Anadarko Petroleum Corp.:
4.50% Sr. Unsec. Nts., 7/15/44		72,000		67,778
6.20% Sr. Unsec. Nts., 3/15/40		68,000		78,007

Apache Corp., 4.75% Sr. Unsec. Nts., 4/15/43		124,000		127,964

Boardwalk Pipelines LP, 4.95% Sr. Unsec. Nts., 12/15/24		188,000		193,115

BP Capital Markets plc, 1.676% Sr. Unsec. Nts., 5/3/19		353,000		350,534

Buckeye Partners LP, 3.95% Sr. Unsec. Nts., 12/1/26		89,000		86,873

Chevron Corp., 1.561% Sr. Unsec. Nts., 5/16/19		379,000		377,645

CNOOC Nexen Finance 2014 ULC, 1.625% Sr. Unsec. Nts., 4/30/17		444,000		443,738

Columbia Pipeline Group, Inc., 4.50% Sr. Unsec. Nts., 6/1/25		179,000		188,138

ConocoPhillips Co.:
4.95% Sr. Unsec. Nts., 3/15/26		47,000		51,914
5.95% Sr. Unsec. Nts., 3/15/46		99,000		122,743

Devon Energy Corp., 4.75% Sr. Unsec. Nts., 5/15/42		115,000		108,836

EnLink Midstream Partners LP, 4.85% Sr. Unsec. Nts., 7/15/26		92,000		92,850

Enterprise Products Operating LLC:
4.85% Sr. Unsec. Nts., 8/15/42		119,000		119,197
4.90% Sr. Unsec. Nts., 5/15/46		42,000		43,197

EQT Midstream Partners LP, 4.125% Sr. Unsec. Nts., 12/1/26		208,000		202,857

Kinder Morgan, Inc., 5.55% Sr. Unsec. Nts., 6/1/45		294,000		309,785

Noble Energy, Inc., 5.05% Sr. Unsec. Nts., 11/15/44		104,000		104,501

ONEOK Partners LP, 4.90% Sr. Unsec. Nts., 3/15/25		166,000		178,134

Phillips 66 Partners LP, 3.605% Sr. Unsec. Nts., 2/15/25		323,000		316,485

Regency Energy Partners LP/Regency Energy Finance Corp., 5% Sr. Unsec. Nts., 10/1/22		255,000		270,270

Shell International Finance BV:
1.375% Sr. Unsec. Nts., 5/10/19		284,000		281,168
4.00% Sr. Unsec. Nts., 5/10/46		140,000		133,935

Tesoro Logistics LP, 5.25% Sr. Unsec. Nts., 1/15/25		63,000		64,575

TransCanada PipeLines Ltd., 1.625% Sr. Unsec. Nts., 11/9/17		349,000		348,767

				4,663,006

Financials—6.9%

Capital Markets—1.5%

Apollo Management Holdings LP, 4% Sr. Unsec. Nts., 5/30/24³		290,000		287,478

Bank of New York Mellon Corp. (The), 3% Sub. Nts., 10/30/28		155,000		147,332

Brookfield Asset Management, Inc., 4% Sr. Unsec. Nts., 1/15/25		373,000		366,036

Credit Suisse AG (New York), 3.625% Sr. Unsec. Nts., 9/9/24		221,000		222,428


	Principal Amount		Value

Capital Markets (Continued)

Credit Suisse Group Funding Guernsey Ltd., 4.55% Sr. Unsec. Nts., 4/17/26	$	140,000	$	145,475

Deutsche Bank AG (London), 6% Sr. Unsec. Nts., 9/1/17		184,000		188,375

E*TRADE Financial Corp., 5.875% Jr. Sub. Perpetual Bonds^4,11		384,000		382,752

Goldman Sachs Group, Inc. (The):
3.50% Sr. Unsec. Nts., 11/16/26		218,000		213,972
3.75% Sr. Unsec. Nts., 2/25/26		215,000		215,741

Morgan Stanley, 5% Sub. Nts., 11/24/25		335,000		358,050

Raymond James Financial, Inc., 3.625% Sr. Unsec. Nts., 9/15/26		215,000		209,787

S&P Global, Inc., 2.50% Sr. Unsec. Nts., 8/15/18		256,000		258,194

UBS Group Funding Jersey Ltd., 4.125% Sr. Unsec. Nts., 4/15/26³		228,000		233,302

				3,228,922

Commercial Banks—3.1%

Bank of America Corp.:
3.248% Sr. Unsec. Nts., 10/21/27		311,000		297,091
7.75% Jr. Sub. Nts., 5/14/38		253,000		348,858

BB&T Corp., 2.05% Sr. Unsec. Nts., 5/10/21		388,000		380,701

BPCE SA:
2.65% Sr. Unsec. Nts., 2/3/21		356,000		355,970
3.375% Sr. Unsec. Nts., 12/2/26		148,000		145,089

Citizens Bank NA (Providence RI), 2.55% Sr. Unsec. Nts., 5/13/21		302,000		300,190

Danske Bank AS, 2.80% Sr. Unsec. Nts., 3/10/21³		227,000		228,553

Fifth Third Bank (Cincinnati OH), 3.85% Sub. Nts., 3/15/26		228,000		229,559

First Republic Bank, 4.375% Sub. Nts., 8/1/46		160,000		145,699

FirstMerit Bank NA (Akron OH), 4.27% Sub. Nts., 11/25/26		432,000		438,712

HSBC Holdings plc, 2.65% Sr. Unsec. Nts., 1/5/22		312,000		305,203

Huntington Bancshares, Inc., 3.15% Sr. Unsec. Nts., 3/14/21		245,000		248,489

ING Bank NV, 2.75% Sr. Unsec. Nts., 3/22/21³		303,000		304,222

JPMorgan Chase & Co.:
2.295% Sr. Unsec. Nts., 8/15/21		84,000		82,421
2.70% Sr. Unsec. Nts., 5/18/23		163,000		159,438

KeyBank NA (Cleveland OH), 3.40% Sub. Nts., 5/20/26		325,000		316,130

Lloyds Banking Group plc, 6.657% Jr. Sub. Perpetual Bonds^3,4,11		400,000		432,000

PNC Bank NA, 2.55% Sr. Unsec. Nts., 12/9/21		157,000		157,087

Regions Bank (Birmingham AL), 2.25% Sr. Unsec. Nts., 9/14/18		328,000		329,149

Royal Bank of Scotland Group plc, 7.64% Jr. Sub. Perpetual Bonds^4,11		380,000		354,350

Skandinaviska Enskilda Banken AB, 2.625% Sr. Unsec. Nts., 3/15/21		227,000		227,171

Standard Chartered plc, 6.409% Jr. Sub. Perpetual Bonds^3,4,11		400,000		307,000

SunTrust Bank (Atlanta GA), 3.30% Sub. Nts., 5/15/26		163,000		157,411

Swedbank AB, 2.65% Sr. Unsec. Nts., 3/10/21³		241,000		241,296

US Bancorp, 3.10% Sub. Nts., 4/27/26		230,000		223,860

14 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


	Principal Amount		Value

Commercial Banks (Continued)

Wells Fargo & Co., 4.75% Sub. Nts., 12/7/46	$	220,000	$	222,589

				6,938,238

Consumer Finance—0.6%

Ally Financial, Inc., 4.25% Sr. Unsec. Nts., 4/15/21		379,000		383,501

Capital One Financial Corp., 3.20% Sr. Unsec. Nts., 2/5/25		306,000		296,727

Discover Financial Services:
3.75% Sr. Unsec. Nts., 3/4/25		209,000		204,427
3.95% Sr. Unsec. Nts., 11/6/24		331,000		328,188

Synchrony Financial, 4.50% Sr. Unsec. Nts., 7/23/25		114,000		117,151

				1,329,994

Diversified Financial Services—0.3%

Berkshire Hathaway Energy Co., 2% Sr. Unsec. Nts., 11/15/18		115,000		115,524

Peachtree Corners Funding Trust, 3.976% Sr. Unsec. Nts., 2/15/25³		221,000		215,732

Voya Financial, Inc., 5.65% Jr. Sub. Nts., 5/15/53⁴		380,000		374,775

				706,031

Equity Real Estate Investment Trusts (REITs)—0.5%

American Tower Corp., 5.90% Sr. Unsec. Nts., 11/1/21		233,000		260,938

HCP, Inc., 5.625% Sr. Unsec. Nts., 5/1/17		125,000		126,670

Highwoods Realty LP, 5.85% Sr. Unsec. Nts., 3/15/17		159,000		160,352

Ventas Realty LP, 1.25% Sr. Unsec. Nts., 4/17/17		178,000		177,928

WEA Finance LLC/Westfield UK & Europe Finance plc, 1.75% Sr. Unsec. Nts., 9/15/17³		369,000		369,280

Welltower, Inc., 2.25% Sr. Unsec. Nts., 3/15/18		88,000		88,391

				1,183,559

Insurance—0.9%

Arch Capital Finance LLC, 4.011% Sr. Unsec. Nts., 12/15/26		220,000		223,108

AXIS Specialty Finance plc, 5.15% Sr. Unsec. Nts., 4/1/45		235,000		232,916

Five Corners Funding Trust, 4.419% Unsec. Nts., 11/15/23³		284,000		300,353

Manulife Financial Corp., 4.15% Sr. Unsec. Nts., 3/4/26		227,000		236,932

MetLife, Inc., 5.25% Jr. Sub. Perpetual Bonds^4,11		296,000		300,440

Principal Financial Group, Inc., 4.30% Sr. Unsec. Nts., 11/15/46		155,000		152,182

TIAA Asset Management Finance Co. LLC, 4.125% Sr. Unsec. Nts., 11/1/24³		362,000		365,796

XLIT Ltd., 6.50% Jr. Sub. Perpetual Bonds^4,11		243,000		190,147

				2,001,874

Health Care—2.4%

Biotechnology—0.5%

AbbVie, Inc.:
3.60% Sr. Unsec. Nts., 5/14/25		172,000		170,446
4.70% Sr. Unsec. Nts., 5/14/45		58,000		57,016

Biogen, Inc., 5.20% Sr. Unsec. Nts., 9/15/45		110,000		118,346

Celgene Corp.:
3.875% Sr. Unsec. Nts., 8/15/25		167,000		169,471
5.00% Sr. Unsec. Nts., 8/15/45		41,000		42,711


	Principal Amount		Value

Biotechnology (Continued)

Shire Acquisitions Investments Ireland DAC:
1.90% Sr. Unsec. Nts., 9/23/19	$	376,000	$	371,303
3.20% Sr. Unsec. Nts., 9/23/26		288,000		269,308

				1,198,601

Health Care Equipment & Supplies—0.5%

Abbott Laboratories:
2.35% Sr. Unsec. Nts., 11/22/19		366,000		366,504
4.90% Sr. Unsec. Nts., 11/30/46		151,000		155,283

Baxter International, Inc., 2.60% Sr. Unsec. Nts., 8/15/26		180,000		166,265

Boston Scientific Corp., 3.85% Sr. Unsec. Nts., 5/15/25		292,000		292,715

Stryker Corp., 3.50% Sr. Unsec. Nts., 3/15/26		137,000		138,365

				1,119,132

Health Care Providers & Services—0.7%

Aetna, Inc., 3.20% Sr. Unsec. Nts., 6/15/26		280,000		277,146

Cardinal Health, Inc., 3.50% Sr. Unsec. Nts., 11/15/24		168,000		169,938

Express Scripts Holding Co., 4.50% Sr. Unsec. Nts., 2/25/26		247,000		254,405

Fresenius Medical Care US Finance II, Inc., 5.875% Sr. Unsec. Nts., 1/31/22³		145,000		159,500

Laboratory Corp. of America Holdings, 3.60% Sr. Unsec. Nts., 2/1/25		499,000		497,047

McKesson Corp., 4.883% Sr. Unsec. Nts., 3/15/44		142,000		144,723

Quest Diagnostics, Inc., 3.45% Sr. Unsec. Nts., 6/1/26		155,000		152,965

				1,655,724

Life Sciences Tools & Services—0.3%

Thermo Fisher Scientific, Inc.:
2.15% Sr. Unsec. Nts., 12/14/18		156,000		156,758
3.00% Sr. Unsec. Nts., 4/15/23		160,000		157,310
4.15% Sr. Unsec. Nts., 2/1/24		125,000		130,218
5.30% Sr. Unsec. Nts., 2/1/44		111,000		124,425

				568,711

Pharmaceuticals—0.4%

Actavis Funding SCS:
3.80% Sr. Unsec. Nts., 3/15/25		227,000		227,375
4.75% Sr. Unsec. Nts., 3/15/45		99,000		97,379

Perrigo Finance Unlimited Co., 4.375% Sr. Unsec. Nts., 3/15/26		103,000		103,157

Teva Pharmaceutical Finance Netherlands III BV, 1.70% Sr. Unsec. Nts., 7/19/19		347,000		340,998

				768,909

Industrials—2.5%

Aerospace & Defense—0.4%

BAE Systems Holdings, Inc., 3.85% Sr. Unsec. Nts., 12/15/25³		292,000		297,952

L-3 Communications Corp., 3.85% Sr. Unsec. Nts., 12/15/26		94,000		93,489

Lockheed Martin Corp., 3.55% Sr. Unsec. Nts., 1/15/26		184,000		188,090

Northrop Grumman Corp., 4.75% Sr. Unsec. Nts., 6/1/43		200,000		218,325

Textron, Inc., 3.875% Sr. Unsec. Nts., 3/1/25		129,000		129,768

United Technologies Corp., 1.778% Jr. Sub. Nts., 5/4/18⁴		67,000		67,027

				994,651

Building Products—0.2%

Johnson Controls International plc, 1.40%, 11/2/17		77,000		77,135

15 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Building Products (Continued)

Owens Corning, 3.40% Sr. Unsec. Nts., 8/15/26	$	259,000	$	246,166

				323,301

Commercial Services & Supplies—0.4%

Pitney Bowes, Inc., 4.625% Sr. Unsec. Nts., 3/15/24		288,000		283,799

Republic Services, Inc.:
2.90% Sr. Unsec. Nts., 7/1/26		185,000		177,448
3.80% Sr. Unsec. Nts., 5/15/18		311,000		319,707

Waste Management, Inc., 4.10% Sr. Unsec. Nts., 3/1/45		92,000		91,240

				872,194

Electrical Equipment—0.2%

Sensata Technologies BV, 4.875% Sr. Unsec. Nts., 10/15/23³		369,000		378,686

Industrial Conglomerates—0.1%

Roper Technologies, Inc.:
3.80% Sr. Unsec. Nts., 12/15/26		43,000		43,355
3.85% Sr. Unsec. Nts., 12/15/25		192,000		194,455

				237,810

Machinery—0.3%

Fortive Corp., 1.80% Sr. Unsec. Nts., 6/15/19³		385,000		382,733

Ingersoll-Rand Global Holding Co. Ltd., 4.25% Sr. Unsec. Nts., 6/15/23		120,000		126,965

Wabtec Corp., 3.45% Sr. Unsec. Nts., 11/15/26³		149,000		143,308

				653,006

Professional Services—0.2%

Experian Finance plc, 2.375% Sr. Unsec. Nts., 6/15/17³		427,000		428,636

Road & Rail—0.5%

Canadian Pacific Railway Co., 4.80% Sr. Unsec. Nts., 9/15/35		76,000		82,162

CSX Corp., 3.80% Sr. Unsec. Nts., 11/1/46		90,000		83,618

ERAC USA Finance LLC, 6.375% Sr. Unsec. Nts., 10/15/17³		312,000		323,322

Norfolk Southern Corp., 4.65% Sr. Unsec. Nts., 1/15/46		124,000		132,113

Penske Truck Leasing Co. LP/PTL Finance Corp.:
3.40% Sr. Unsec. Nts., 11/15/26³		305,000		291,978
3.75% Sr. Unsec. Nts., 5/11/17³		220,000		221,725

				1,134,918

Trading Companies & Distributors—0.2%

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.95% Sr. Unsec. Nts., 2/1/22		379,000		383,264

Air Lease Corp., 3% Sr. Unsec. Nts., 9/15/23		160,000		152,914

				536,178

Information Technology—1.6%

Electronic Equipment, Instruments, & Components—0.1%

Flex Ltd., 4.75% Sr. Unsec. Nts., 6/15/25		290,000		306,967

IT Services—0.3%

Broadridge Financial Solutions, Inc., 3.40% Sr. Unsec. Nts., 6/27/26		185,000		178,625

Fidelity National Information Services, Inc., 1.45% Sr. Unsec. Nts., 6/5/17		351,000		351,170

Xerox Corp.:
2.95% Sr. Unsec. Nts., 3/15/17		149,000		149,454
6.75% Sr. Unsec. Nts., 2/1/17		75,000		75,272

				754,521


	Principal Amount		Value

Semiconductors & Semiconductor Equipment—0.1%

Intel Corp., 4.90% Sr. Unsec. Nts., 7/29/45	$	107,000	$	119,748

Software—0.8%

Activision Blizzard, Inc., 2.30% Sr. Unsec. Nts., 9/15/21³		355,000		346,481

Autodesk, Inc.:
1.95% Sr. Unsec. Nts., 12/15/17		313,000		313,591
4.375% Sr. Unsec. Nts., 6/15/25		125,000		128,466

Diamond 1 Finance Corp./Diamond 2 Finance Corp.:
3.48% Sr. Sec. Nts., 6/1/19³		376,000		383,947
6.02% Sr. Sec. Nts., 6/15/26³		225,000		243,858

Open Text Corp., 5.625% Sr. Unsec. Nts., 1/15/23³		174,000		182,265

Oracle Corp., 2.40% Sr. Unsec. Nts., 9/15/23		225,000		217,924

				1,816,532

Technology Hardware, Storage & Peripherals—0.3%

Apple, Inc., 4.375% Sr. Unsec. Nts., 5/13/45		227,000		233,301

Hewlett Packard Enterprise Co.:
2.45% Sr. Unsec. Nts., 10/5/17		267,000		268,520
6.35% Sr. Unsec. Nts., 10/15/45		159,000		160,872

				662,693

Materials—2.1%

Chemicals—1.0%

Agrium, Inc.:
3.375% Sr. Unsec. Nts., 3/15/25		174,000		168,624
4.125% Sr. Unsec. Nts., 3/15/35		87,000		79,894

CF Industries, Inc., 4.50% Sr. Sec. Nts., 12/1/26³		170,000		167,181

Eastman Chemical Co., 4.65% Sr. Unsec. Nts., 10/15/44		112,000		111,292

Ecolab, Inc.:
2.00% Sr. Unsec. Nts., 1/14/19		370,000		370,387
3.70% Sr. Unsec. Nts., 11/1/46		60,000		54,675

PolyOne Corp., 5.25% Sr. Unsec. Nts., 3/15/23		365,000		372,300

RPM International, Inc., 3.45% Sr. Unsec. Unsub. Nts., 11/15/22		304,000		301,501

Valspar Corp. (The):
3.30% Sr. Unsec. Nts., 2/1/25		122,000		117,164
3.95% Sr. Unsec. Nts., 1/15/26		174,000		174,037

Yara International ASA, 3.80% Sr. Unsec. Nts., 6/6/26³		230,000		225,580

				2,142,635

Construction Materials—0.3%

CRH America, Inc., 5.125% Sr. Unsec. Nts., 5/18/45³		282,000		294,220

James Hardie International Finance Ltd., 5.875% Sr. Unsec. Nts., 2/15/23³		171,000		177,840

LafargeHolcim Finance US LLC, 3.50% Sr. Unsec. Nts., 9/22/26³		90,000		87,523

				559,583

Containers & Packaging—0.3%

Ball Corp., 5.25% Sr. Unsec. Nts., 7/1/25		16,000		16,780

International Paper Co.:
3.00% Sr. Unsec. Nts., 2/15/27		177,000		167,085
4.80% Sr. Unsec. Nts., 6/15/44		183,000		182,112

Packaging Corp. of America:
3.65% Sr. Unsec. Nts., 9/15/24		113,000		113,513
4.50% Sr. Unsec. Nts., 11/1/23		270,000		286,101

				765,591

16 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


	Principal Amount		Value

Metals & Mining—0.4%

BHP Billiton Finance USA Ltd., 1.625% Sr. Unsec. Nts., 2/24/17	$	379,000	$	379,293

Glencore Finance Canada Ltd., 3.60% Sr. Unsec. Nts., 1/15/17³		348,000		348,161

Goldcorp, Inc., 5.45% Sr. Unsec. Nts., 6/9/44		116,000		113,984

Rio Tinto Finance USA Ltd., 3.75% Sr. Unsec. Nts., 6/15/25		154,000		158,665

				1,000,103

Paper & Forest Products—0.1%

Georgia-Pacific LLC, 2.539% Sr. Unsec. Nts., 11/15/19³		83,000		83,744

Louisiana-Pacific Corp., 4.875% Sr. Unsec. Nts., 9/15/24		199,000		193,527

				277,271

Telecommunication Services—1.3%

Diversified Telecommunication Services—1.3%

AT&T, Inc.:
2.80% Sr. Unsec. Nts., 2/17/21		392,000		388,940
4.35% Sr. Unsec. Nts., 6/15/45		299,000		266,937

British Telecommunications plc, 9.375% Sr. Unsec. Nts., 12/15/30		288,000		439,666

Deutsche Telekom International Finance BV, 2.25% Sr. Unsec. Nts., 3/6/17³		373,000		373,545

Telefonica Emisiones SAU:
3.192% Sr. Unsec. Nts., 4/27/18		397,000		402,781
7.045% Sr. Unsec. Unsub. Nts., 6/20/36		104,000		120,884

Verizon Communications, Inc.:
1.75% Sr. Unsec. Nts., 8/15/21		263,000		252,336
4.125% Sr. Unsec. Nts., 8/15/46		152,000		137,846
4.50% Sr. Unsec. Nts., 9/15/20		440,000		470,908
4.522% Sr. Unsec. Nts., 9/15/48		191,000		183,532

				3,037,375

Utilities—2.2%

Electric Utilities—1.7%

AEP Texas Central Co., 3.85% Sr. Unsec. Nts., 10/1/25³		198,000		203,386

Cleco Corporate Holdings LLC, 3.743% Sr. Sec. Nts., 5/1/26³		188,000		185,248

Duke Energy Corp., 3.75% Sr. Unsec. Nts., 9/1/46		175,000		157,876

Edison International, 2.95% Sr. Unsec. Nts., 3/15/23		233,000		230,584


	Principal Amount		Value

Electric Utilities (Continued)

Enel Finance International NV, 6.25% Sr. Unsec. Nts., 9/15/17³	$	389,000	$	400,982

Exelon Corp., 4.45% Sr. Unsec. Nts., 4/15/46		96,000		94,168

Indiana Michigan Power Co., Series K, 4.55% Sr. Unsec. Nts., 3/15/46		77,000		80,025

ITC Holdings Corp., 5.30% Sr. Unsec. Nts., 7/1/43		93,000		101,918

NextEra Energy Capital Holdings, Inc., 1.586% Sr. Unsec. Nts., 6/1/17		419,000		419,282

Pennsylvania Electric Co., 5.20% Sr. Unsec. Nts., 4/1/20		88,000		94,249

PPL WEM Ltd./Western Power Distribution Ltd., 5.375% Sr. Unsec. Unsub. Nts., 5/1/21³		600,000		647,496

Public Service Co. of New Mexico, 7.95% Sr. Unsec. Nts., 5/15/18		347,000		374,673

Southern Power Co., 1.95% Sr. Unsec. Nts., 12/15/19		324,000		320,971

Trans-Allegheny Interstate Line Co., 3.85% Sr. Unsec. Nts., 6/1/25³		223,000		226,012

Xcel Energy, Inc., 3.30% Sr. Unsec. Nts., 6/1/25		186,000		186,145

				3,723,015

Multi-Utilities—0.5%

CenterPoint Energy, Inc., 5.95% Sr. Unsec. Nts., 2/1/17		386,000		387,320

CMS Energy Corp., 3.875% Sr. Unsec. Nts., 3/1/24		240,000		249,708

NiSource Finance Corp., 4.80% Sr. Unsec. Nts., 2/15/44		164,000		172,990

Public Service Enterprise Group, Inc., 1.60% Sr. Unsec. Nts., 11/15/19		337,000		332,347

				1,142,365

Total Non-Convertible Corporate Bonds and Notes (Cost $68,153,744)				68,568,068

	Shares

Investment Company—2.4%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^12,13(Cost $5,367,607)		5,367,607		5,367,607

Total Investments, at Value (Cost $224,282,676)		104.8%		235,055,238

Net Other Assets (Liabilities)		(4.8)		(10,739,704	)

Net Assets		100.0%	$	224,315,534

Footnotes to Statement of Investments

1. Non-income producing security.

2. Security is a Master Limited Partnership.

3. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $28,210,811 or 12.58% of the Fund’s net assets at period end.

4. Represents the current interest rate for a variable or increasing rate security.

5. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline.

Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $1,349,606 or 0.60% of the Fund’s net assets at period end.

6. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $65,262 or 0.03% of the Fund’s net assets at period end.

7. Interest rate is less than 0.0005%.

8. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 4 of the accompanying Notes.

9. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $72,319. See Note 6 of the accompanying Notes.

10. All or a portion of the security position has been pledged for collateral in association with forward roll transactions. See Note 4 of the accompanying Notes.

11. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

12.

Rate shown is the 7-day yield at period end.

17 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF INVESTMENTS Continued

Footnotes to Statement of Investments (Continued)

13. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E ^a		5,367,607		—		—		5,367,607
					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E ^a					$	5,367,607	$	21,187

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

Futures Contracts as of December 31, 2016

Description

Exchange

Buy/Sell

Expiration Date

Number of Contracts

Value

Unrealized Appreciation
(Depreciation)

United States Treasury Long Bonds

CBT

Buy

3/22/17

903,937

15,234

United States Treasury Nts., 2 yr.

CBT

Buy

3/31/17

104

22,535,500

(5,596)

United States Treasury Nts., 5 yr.

CBT

Sell

3/31/17

823,648

1,398

United States Treasury Nts., 10 yr.

CBT

Sell

3/22/17

2,858,469

16,947

United States Ultra Bonds

CBT

Buy

3/22/17

8,012,500

(63,750)

(35,767)

Centrally Cleared Credit Default Swaps at December 31, 2016


Reference Asset	Buy/Sell Protection		Fixed Rate			Maturity Date			Notional Amount (000’s)		Premiums Received/(Paid)			Value

CDX.HY.27		Sell		5.000	%		12/20/21	USD		1,030	$	(63,339	)	$	63,931

CDX.HY.27		Sell		5.000			12/20/21	USD		1,030		(65,222	)		63,787

Total of Cleared Credit Default Swaps											$	(128,561	)	$	127,718

The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:

*The Fund has no amounts recoverable from related purchased protection. In addition, the Fund has no recourse provisions under the credit derivatives and holds no collateral which can offset or reduce potential payments under a triggering event.

**The period end reference asset security ratings, as rated by any rating organization, are included in the equivalent Standard & Poor’s rating category. The reference asset rating represents the likelihood of a potential credit event on the reference asset which would result in a related payment by the Fund.


Glossary:

Definitions
CDX.HY.27		Markit CDX High Yield Index

Exchange Abbreviations
CBT		Chicago Board of Trade

See accompanying Notes to Financial Statements.

18 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016


Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $218,915,069)	$	229,687,631
Affiliated companies (cost $5,367,607)		5,367,607

		235,055,238

Cash		25,168,495

Cash used for collateral on futures		277,000

Cash used for collateral on forward roll transactions		76,000

Centrally cleared swaps, at value (premiums paid $128,561)		127,718

Receivables and other assets:
Investments sold (including $5,886,791 sold on a when-issued or delayed delivery basis)		6,279,024
Interest, dividends and principal paydowns		882,041
Variation margin receivable		59,438
Shares of beneficial interest sold		37,273
Other		46,003

Total assets		268,008,230

Liabilities
Centrally cleared swap collateral due		35,268

Payables and other liabilities:
Investments purchased (including $43,426,705 purchased on a when-issued or delayed delivery basis)		43,491,584
Shares of beneficial interest redeemed		65,993
Trustees’ compensation		38,545
Shareholder communications		12,197
Distribution and service plan fees		11,011
Variation margin payable		9,055
Other		29,043

Total liabilities		43,692,696

Net Assets	$	224,315,534



Composition of Net Assets
Par value of shares of beneficial interest	$	15,142

Additional paid-in capital		216,103,747

Accumulated net investment income		4,130,290

Accumulated net realized loss on investments		(6,666,134)

Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		10,732,489

Net Assets	$	224,315,534



Net Asset Value Per Share

Non-Service Shares:

Net asset value, redemption price per share and offering price per share (based on net assets of $172,572,400 and 11,614,386 shares of beneficial interest outstanding)		$14.86


Service Shares:

Net asset value, redemption price per share and offering price per share (based on net assets of $51,743,134 and 3,527,342 shares of beneficial interest outstanding)		$14.67

See accompanying Notes to Financial Statements.

19 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Interest (net of foreign withholding taxes of $1,617)	$	4,218,680

Dividends:
Unaffiliated companies (net of foreign withholding taxes of $10,620)		1,424,135
Affiliated companies		21,187

Total investment income		5,664,002

Expenses
Management fees		1,725,757

Distribution and service plan fees - Service shares		134,733

Transfer and shareholder servicing agent fees:
Non-Service shares		177,425
Service shares		53,930

Shareholder communications:
Non-Service shares		44,205
Service shares		13,441

Custodian fees and expenses		46,888

Trustees’ compensation		15,153

Borrowing fees		4,111

Other		90,332


Total expenses		2,305,975
Less waivers and reimbursements of expenses		(616,958)

Net expenses		1,689,017

Net Investment Income		3,974,985

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies (including premiums on options exercised)		6,026,715
Closing and expiration of futures contracts		(57,460)
Swap contracts		(3,290)
Swaption contracts		37,155

Net realized gain		6,003,120

Net change in unrealized appreciation/depreciation on:
Investment transactions		1,870,619
Translation of assets and liabilities denominated in foreign currencies		(520)
Futures contracts		(62,412)
Swap contracts		(843)

Net change in unrealized appreciation/depreciation		1,806,844

Net Increase in Net Assets Resulting from Operations	$	11,784,949

See accompanying Notes to Financial Statements.

20 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income	$	3,974,985	$	5,143,739

Net realized gain		6,003,120		8,011,492

Net change in unrealized appreciation/depreciation		1,806,844		(10,889,422)

Net increase in net assets resulting from operations		11,784,949		2,265,809

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(4,214,715)		(4,370,338)
Service shares		(1,155,621)		(1,196,499)

		(5,370,336)		(5,566,837)

Beneficial Interest Transactions
Net decrease in net assets resulting from beneficial interest transactions:
Non-Service shares		(14,689,603)		(18,739,351)
Service shares		(2,041,174)		(10,891,668)

		(16,730,777)		(29,631,019)

Net Assets
Total decrease		(10,316,164)		(32,932,047)

Beginning of period		234,631,698		267,563,745

End of period (including accumulated net investment income of $4,130,290 and $ 5,254,734,respectively)	$	224,315,534	$	234,631,698

See accompanying Notes to Financial Statements.

21 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$14.46			$14.67			$13.84		$12.52		$11.30

Income (loss) from investment operations:
Net investment income¹		0.26			0.31			0.29		0.25		0.29
Net realized and unrealized gain (loss)		0.49			(0.18)			0.83		1.38		1.09

Total from investment operations		0.75			0.13			1.12		1.63		1.38

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.35)			(0.34)			(0.29)		(0.31)		(0.16)

Net asset value, end of period		$14.86			$14.46			$14.67		$13.84		$12.52



Total Return, at Net Asset Value²		5.26%			0.83%			8.20%		13.17%		12.34%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$172,573			$182,406			$203,684		$213,697		$218,032

Average net assets (in thousands)		$177,368			$194,208			$208,556		$218,090		$191,416

Ratios to average net assets:³
Net investment income		1.78%			2.09%			2.03%		1.87%		2.46%
Expenses excluding specific expenses listed below		0.94%			0.91%			0.90%		0.89%		0.90%
Interest and fees from borrowings		0.00%	⁴		0.00%	⁴		0.00%		0.00%		0.00%

Total expenses⁵		0.94%			0.91%			0.90%		0.89%		0.90%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.67%			0.67%			0.67%		0.66%		0.66%

Portfolio turnover rate⁶		68%			68%			98%		187%		110%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:



Year Ended December 31, 2016	0.94	%
Year Ended December 31, 2015	0.91	%
Year Ended December 31, 2014	0.90	%
Year Ended December 31, 2013	0.90	%
Year Ended December 31, 2012	0.91	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$737,550,642		$742,753,245
Year Ended December 31, 2015		$829,988,104		$849,696,153
Year Ended December 31, 2014		$697,503,637		$678,765,376
Year Ended December 31, 2013		$794,398,216		$800,879,825
Year Ended December 31, 2012		$555,111,600		$549,805,766

See accompanying Notes to Financial Statements.

22 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


Service Shares	Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$14.28			$14.49			$13.66		$12.37		$11.17

Income (loss) from investment operations:
Net investment income¹		0.22			0.27			0.25		0.21		0.26
Net realized and unrealized gain (loss)		0.48			(0.18)			0.84		1.36		1.08

Total from investment operations		0.70			0.09			1.09		1.57		1.34

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.31)			(0.30)			(0.26)		(0.28)		(0.14)

Net asset value, end of period		$14.67			$14.28			$14.49		$13.66		$12.37



Total Return, at Net Asset Value²		4.96%			0.57%			8.02%		12.83%		12.11%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$51,743			$52,226			$63,880		$69,601		$72,872

Average net assets (in thousands)		$53,914			$59,085			$65,450		$72,332		$76,257

Ratios to average net assets:³
Net investment income		1.53%			1.84%			1.78%		1.62%		2.18%
Expenses excluding specific expenses listed below		1.19%			1.16%			1.15%		1.15%		1.16%
Interest and fees from borrowings		0.00%	⁴		0.00%	⁴		0.00%		0.00%		0.00%

Total expenses⁵		1.19%			1.16%			1.15%		1.15%		1.16%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.92%			0.92%			0.92%		0.92%		0.92%

Portfolio turnover rate⁶		68%			68%			98%		187%		110%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:



Year Ended December 31, 2016	1.19	%
Year Ended December 31, 2015	1.16	%
Year Ended December 31, 2014	1.15	%
Year Ended December 31, 2013	1.16	%
Year Ended December 31, 2012	1.17	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$737,550,642		$742,753,245
Year Ended December 31, 2015		$829,988,104		$849,696,153
Year Ended December 31, 2014		$697,503,637		$678,765,376
Year Ended December 31, 2013		$794,398,216		$800,879,825
Year Ended December 31, 2012		$555,111,600		$549,805,766

See accompanying Notes to Financial Statements.

23 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Conservative Balanced Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s main investment objective is to seek total return. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets and the market values are presented at the foreign exchange rates at Market Close, the Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments shown in the Statement of Operations.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding tax reclaims recorded on Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate.

Return of Capital Estimates. Distributions received from the Fund’s investments in Master Limited Partnerships (MLPs) and Real Estate Investments Trusts (REITs), generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates. Such estimates are based on historical information available from each MLP, REIT and other industry sources. These estimates may subsequently be revised based on information received from MLPs and REITs after their tax reporting periods are concluded.

24 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

2. Significant Accounting Policies (Continued)

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3,4,5		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$4,167,690		$—		$6,446,399		$10,513,894

1. At period end, the Fund had $5,261,675 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

2017	$	5,261,675

2. At period end, the Fund had $1,184,042 of post-October losses available to offset future realized capital gains, if any.

3. The Fund had $682 of straddle losses which were deferred.

4. During the reporting period, the Fund utilized $6,632,281 of capital loss carryforward to offset capital gains realized in that fiscal year.

5. During the previous reporting period, the Fund utilized $7,633,681 of capital loss carryforward to offset capital gains realized in that fiscal year.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Paid-in Capital	Increase to Accumulated Net Investment Income		Increase to Accumulated Net Realized Loss on Investments

$58		$270,907		$270,965

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	5,370,336	$	5,566,837

25 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)


Federal tax cost of securities	$	224,537,883
Federal tax cost of other investments		27,897,535

Total federal tax cost	$	252,435,418

Gross unrealized appreciation	$	13,873,756
Gross unrealized depreciation		(3,359,862)

Net unrealized appreciation	$	10,513,894

Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized.

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

Futures contracts and futures options traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund’s assets are valued.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors

Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

26 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

3. Securities Valuation (Continued)


Security Type (Continued)		Standard inputs generally considered by third-party pricing vendors

Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.

Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	8,454,819	$	—	$	—	$	8,454,819
Consumer Staples		6,943,980		—		—		6,943,980
Energy		6,270,997		—		—		6,270,997
Financials		12,502,416		—		—		12,502,416
Health Care		9,891,214		—		—		9,891,214
Industrials		9,809,649		—		—		9,809,649
Information Technology		14,706,382		—		—		14,706,382
Materials		3,032,924		—		—		3,032,924
Telecommunication Services		1,614,110		—		—		1,614,110
Utilities		2,669,200		—		—		2,669,200
Asset-Backed Securities		—		20,870,179		—		20,870,179

27 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Investments, at Value: (Continued)
Mortgage-Backed Obligations	$	—		$	62,897,674	$	219,117	$	63,116,791
U.S. Government Obligations		—			1,236,902		—		1,236,902
Non-Convertible Corporate Bonds and Notes		—			68,568,068		—		68,568,068
Investment Company		5,367,607			—		—		5,367,607

Total Investments, at Value		81,263,298			153,572,823		219,117		235,055,238
Other Financial Instruments:
Centrally cleared swaps, at value		—			127,718		—		127,718
Futures contracts		33,579			—		—		33,579

Total Assets	$	81,296,877		$	153,700,541	$	219,117	$	235,216,535


Liabilities Table
Other Financial Instruments:
Futures contracts	$	(69,346	)	$	—	$	—	$	(69,346)

Total Liabilities	$	(69,346	)	$	—	$	—	$	(69,346)

The table below shows the transfers between Level 2 and Level 3. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers out of Level 2*		Transfers into Level 3*

Assets Table
Investments, at Value:
Mortgage-Backed Obligations		$ (353,498)		$ 353,498

Total Assets		$ (353,498)		$ 353,498

* Transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market activity for these securities.

4. Investments and Risks

Master Limited Partnerships (“MLPs”). MLPs issue common units that represent an equity ownership interest in a partnership and provide limited voting rights. MLP common units are registered with the Securities and Exchange Commission (“SEC”), and are freely tradable on securities exchanges such as the NYSE and the NASDAQ Stock Market (“NASDAQ”), or in the over-the-counter (“OTC”) market. An MLP consists of one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. MLP common unit holders have a limited role in the partnership’s operations and management. The Fund, as a limited partner, normally would not be liable for the debts of the MLP beyond the amounts the Fund has contributed, but would not be shielded to the same extent that a shareholder of a corporation would be. In certain circumstances creditors of an MLP would have the right to seek return of capital distributed to a limited partner. This right of an MLP’s creditors would continue after the Fund sold its investment in the MLP.

28 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

4. Investments and Risks (Continued)

Securities on a When-Issued or Delayed Delivery Basis. The Fund may purchase securities on a “when-issued” basis, and may purchase or sell securities on a “delayed delivery” basis. “When-issued” or “delayed delivery” refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund’s net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.

At period end, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions

Purchased securities		$43,426,705
Sold securities		5,886,791

The Fund may enter into “forward roll” transactions with respect to mortgage-related securities. In this type of transaction, the Fund sells a mortgage-related security to a buyer and simultaneously agrees to repurchase a similar security (same type, coupon and maturity) at a later date at a set price. During the period between the sale and the repurchase, the Fund will not be entitled to receive interest and principal payments on the securities that have been sold. The Fund records the incremental difference between the forward purchase and sale of each forward roll as realized gain (loss) on investments or as fee income in the case of such transactions that have an associated fee in lieu of a difference in the forward purchase and sale price.

Forward roll transactions may be deemed to entail embedded leverage since the Fund purchases mortgage-related securities with extended settlement dates rather than paying for the securities under a normal settlement cycle. This embedded leverage increases the Fund’s market value of investments relative to its net assets which can incrementally increase the volatility of the Fund’s performance. Forward roll transactions can be replicated over multiple settlement periods.

Risks of entering into forward roll transactions include the potential inability of the counterparty to meet the terms of the agreement; the potential of the Fund to receive inferior securities at redelivery as compared to the securities sold to the counterparty; and counterparty credit risk.

At period end, the Fund pledged $558,125 of collateral to the counterparty for forward roll transactions.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 44% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

29 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

5. Market Risk Factors (Continued)

a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

6. Use of Derivatives

The Fund’s investment objective not only permits the Fund to purchase investment securities, it also allows the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, variance swaps and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. These instruments may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors. Such contracts may be entered into through a bilateral over-the-counter (“OTC”) transaction, or through a securities or futures exchange and cleared through a clearinghouse.

Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost due to unanticipated changes in the market risk factors and the overall market. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund’s performance. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment.

Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund.

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Futures Contracts

A futures contract is a commitment to buy or sell a specific amount of a commodity, financial instrument or currency at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts. Futures contracts and options thereon are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange.

Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value in an account registered in the futures commission merchant’s name. Subsequent payments (variation margin) are paid to or from the futures commission merchant each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains and losses. Should the Fund fail to make requested variation margin payments, the futures commission merchant can gain access to the initial margin to satisfy the Fund’s payment obligations.

Futures contracts are reported on a schedule following the Statement of Investments. Securities held by a futures commission merchant to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by a futures commission merchant to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

During the reporting period, the Fund had an ending monthly average market value of $19,953,069 and $11,095,736 on futures contracts purchased and sold, respectively.

Additional associated risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities.

Option Activity

The Fund may buy and sell put and call options, or write put and call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security, currency or other underlying financial instrument at a fixed price, upon exercise of the option.

30 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

6. Use of Derivatives (Continued)

depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The Fund has purchased call options on treasury and/or euro futures to increase exposure to interest rate risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has purchased put options on treasury and/or euro futures to decrease exposure to interest rate risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $49,414 and $4,637 on purchased call options and purchased put options, respectively.

Options written, if any, are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities. Securities held in collateral accounts to cover potential obligations with respect to outstanding written options are noted in the Statement of Investments.

The risk in writing a call option is that the market price of the security increases and if the option is exercised, the Fund must either purchase the security at a higher price for delivery or, if the Fund owns the underlying security, give up the opportunity for profit. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk that there may be an illiquid market where the Fund is unable to close the contract.

The Fund has written put options on treasury and/or euro futures to increase exposure to interest rate risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $3,759 on written put options.

At period end, the Fund had no purchased or written options outstanding.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Written option activity for the reporting period was as follows:


	Number of Contracts		Amount of Premiums

Options outstanding as of December 31, 2015		—	$	—
Options written		4,140,924		66,162
Options exercised		(4,140,924)		(66,162)

Options outstanding as of December 31, 2016		—	$	—

Swap Contracts

The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, the price or volatility of asset or non-asset references, or the occurrence of a credit event, over a specified period. Swaps can be executed in a bi-lateral privately negotiated arrangement with a dealer in an OTC transaction (“OTC swaps”) or executed on a regulated market. Certain swaps, regardless of the venue of their execution, are required to be cleared through a clearinghouse (“centrally cleared swaps”). Swap contracts may include interest rate, equity, debt, index, total return, credit default, currency, and volatility swaps.

Swap contracts are reported on a schedule following the Statement of Investments. The values of centrally cleared swap and OTC swap contracts are aggregated by positive and negative values and disclosed separately on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund, if any, at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations.

Swap contract agreements are exposed to the market risk factor of the specific underlying reference rate or asset. Swap contracts are typically more attractively priced compared to similar investments in related cash securities because they isolate the risk to one market risk factor and eliminate the other market risk factors. Investments in cash securities (for instance bonds) have exposure to multiple risk factors (credit and interest rate risk). Because swaps have embedded leverage, they can expose the Fund to substantial risk in the isolated market risk factor.

Credit Default Swap Contracts. A credit default swap is a contract that enables an investor to buy or sell protection against a defined-issuer credit event, such as the issuer’s failure to make timely payments of interest or principal on a debt security, bankruptcy or restructuring. The Fund may enter into credit default swaps either by buying or selling protection on a corporate issuer, sovereign issuer, or a basket or index of issuers (the “reference asset”).

The buyer of protection pays a periodic fee to the seller of protection based on the notional amount of the swap contract. The seller of protection agrees to compensate the buyer of protection for future potential losses as a result of a credit event on the reference asset. The contract effectively transfers the credit event risk of the reference asset from the buyer of protection to the seller of protection.

31 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

loss greater than the anticipated periodic fee owed. This unrealized loss would be the result of current credit protection being cheaper than the cost of credit protection at contract initiation. If the buyer elects to terminate the contract prior to its maturity, and there has been no credit event, this unrealized loss will become realized. If the contract is held to maturity, and there has been no credit event, the realized loss will be equal to the periodic fee paid over the life of the contract.

If there is a credit event, the buyer of protection can exercise its rights under the contract and receive a payment from the seller of protection equal to the notional amount of the swap less the market value of specified debt securities issued by the reference asset. Upon exercise of the contract the difference between such value and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations.

For the reporting period, the Fund had ending monthly average notional amounts of $158,462 on credit default swaps to sell protection.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Swaption Transactions

The Fund may enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. The purchaser pays a premium to the swaption writer who bears the risk of unfavorable changes in the preset terms on the underlying swap.

Purchased swaptions are reported as a component of investments in the Statement of Investments and the Statement of Assets and Liabilities. Written swaptions are reported on a schedule following the Statement of Investments and their value is reported as a separate asset or liability line item in the Statement of Assets and Liabilities. The net change in unrealized appreciation or depreciation on written swaptions is separately reported in the Statement of Operations. When a swaption is exercised, the cost of the swap is adjusted by the amount of premium paid or received. Upon the expiration or closing of an unexercised swaption contract, a gain or loss is reported in the Statement of Operations for the amount of the premium paid or received.

The Fund generally will incur a greater risk when it writes a swaption than when it purchases a swaption. When the Fund writes a swaption it will become obligated, upon exercise of the swaption, according to the terms of the underlying agreement. Swaption contracts written by the Fund do not give rise to counterparty credit risk prior to exercise as they obligate the Fund, not its counterparty, to perform. When the Fund purchases a swaption it only risks losing the amount of the premium it paid if the swaption expires unexercised. However, when the Fund exercises a purchased swaption there is a risk that the counterparty will fail to perform or otherwise default on its obligations under the swaption contract.

The Fund has purchased swaptions which gives it the option to buy credit protection through credit default swaps in order to decrease exposure to the credit risk of individual issuers and/or indexes of issuers. A purchased swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset increases.

The Fund has written swaptions which give it the obligation, if exercised by the purchaser, to buy credit protection through credit default swaps in order to decrease exposure to the credit risk of individual issuers and/or, indexes of issuers. A written swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset increases.

At period end, the Fund had no purchased or written swaptions outstanding.

During the reporting period, the Fund had an ending monthly average market value of $14,832 and $4,244 on purchased and written swaptions, respectively.

Written swaption activity for the reporting period was as follows:


	Notional Amount		Amount of Premiums

Swaptions outstanding as of December 31, 2015		—	$	—
Swaptions written		6,958,000		37,155
Swaptions closed or expired		(6,958,000)		(37,155)

Swaptions outstanding as of December 31, 2016		—	$	—

Counterparty Credit Risk. Derivative positions are subject to the risk that the counterparty will not fulfill its obligation to the Fund. The Fund intends to enter into derivative transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund. For OTC options purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform.

To reduce counterparty risk with respect to OTC transactions, the Fund has entered into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) master agreements, which allow the Fund to make (or to have an entitlement to receive) a single net payment in the event of default (close-out netting) for outstanding payables and receivables with respect to certain OTC positions in swaps, options, swaptions, and forward currency exchange contracts for each individual counterparty. In addition, the Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to ISDA master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fund.

ISDA master agreements include credit related contingent features which allow counterparties to OTC derivatives to terminate derivative contracts

32 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

6. Use of Derivatives (Continued)

prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

The Fund’s risk of loss from counterparty credit risk on exchange-traded derivatives cleared through a clearinghouse and for centrally cleared swaps is generally considered lower than as compared to OTC derivatives. However, counterparty credit risk exists with respect to initial and variation margin deposited/paid by the Fund that is held in futures commission merchant, broker and/or clearinghouse accounts for such exchange-traded derivatives and for centrally cleared swaps.

With respect to centrally cleared swaps, such transactions will be submitted for clearing, and if cleared, will be held in accounts at futures commission merchants or brokers that are members of clearinghouses. While brokers, futures commission merchants and clearinghouses are required to segregate customer margin from their own assets, in the event that a broker, futures commission merchant or clearinghouse becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker, futures commission merchant or clearinghouse for all its customers, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s, futures commission merchant’s or clearinghouse’s customers, potentially resulting in losses to the Fund.

There is the risk that a broker, futures commission merchant or clearinghouse will decline to clear a transaction on the Fund’s behalf, and the Fund may be required to pay a termination fee to the executing broker with whom the Fund initially enters into the transaction. Clearinghouses may also be permitted to terminate centrally cleared swaps at any time. The Fund is also subject to the risk that the broker or futures commission merchant will improperly use the Fund’s assets deposited/paid as initial or variation margin to satisfy payment obligations of another customer. In the event of a default by another customer of the broker or futures commission merchant, the Fund might not receive its variation margin payments from the clearinghouse, due to the manner in which variation margin payments are aggregated for all customers of the broker/futures commission merchant.

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker, futures commission merchant or clearinghouse for exchange-traded and cleared derivatives, including centrally cleared swaps. Brokers, futures commission merchants and clearinghouses can ask for margin in excess of the regulatory minimum, or increase the margin amount, in certain circumstances.

Collateral terms are contract specific for OTC derivatives. For derivatives traded under an ISDA master agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund or the counterparty.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by the Fund, if any, is noted in the Statement of Investments. Generally, the amount of collateral due from or to a party must exceed a minimum transfer amount threshold (e.g. $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance.

The following table presents the valuations of derivative instruments by risk exposure as reported within the Statement of Assets and Liabilities at period end:

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Credit contracts

Centrally cleared swaps,

at value

127,718

Interest rate contracts

Variation margin receivable

59,438

Variation margin payable

9,055

Total

187,156

9,055

* Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investment from unaffiliated companies (including premiums on options exercised)*			Closing and expiration of swaption contracts written		Closing and expiration of futures contracts		Swap contracts		Total

Credit contracts	$	(110,842	)	$	37,155		$ —		$ (3,290)	$	(76,977)
Interest rate contracts		181,398			—		(57,460)		—		123,938

Total	$	70,556		$	37,155		$ (57,460)		$ (3,290)	$	46,961

33 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

*Includes purchased options contracts, purchased swaption contracts, written options contracts exercised and written swaption contracts exercised, if any.

Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Futures
contracts

Swap contracts

Total

Credit contracts

$ —

$ (843)

Interest rate contracts

(62,412)

—

(62,412)

Total

$ (62,412)

$ (843)

$ (63,255)

7. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares		Amount

Non-Service Shares
Sold		180,594	$	2,654,702		192,335	$	2,822,887
Dividends and/or distributions reinvested		289,075		4,214,715		299,338		4,370,338
Redeemed		(1,468,409)		(21,559,020)		(1,759,489)		(25,932,576)

Net decrease		(998,740)	$	(14,689,603)		(1,267,816)	$	(18,739,351)



Service Shares
Sold		707,970	$	10,153,873		228,285	$	3,296,473
Dividends and/or distributions reinvested		80,196		1,155,621		82,918		1,196,499
Redeemed		(918,852)		(13,350,668)		(1,062,479)		(15,384,640)

Net decrease		(130,686)	$	(2,041,174)		(751,276)	$	(10,891,668)

8. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities		$133,833,990		$152,263,256
U.S. government and government agency obligations		1,591,266		1,960,893
To Be Announced (TBA) mortgage-related securities		737,550,642		742,753,245

9. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million			0.75%
Next $200 million			0.72
Next $200 million			0.69
Next $200 million			0.66
Over $800 million			0.60

The Fund’s effective management fee for the reporting period was 0.75% of average annual net assets before any applicable waivers.

Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the “Sub-Transfer Agent”),

34 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

9. Fees and Other Transactions with Affiliates (Continued)

to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.67% for Non-Service shares and 0.92% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $469,065 and $142,509 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

10. Borrowings and Other Financing

11. Pending Litigation

35 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Conservative Balanced Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Conservative Balanced Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG_LLP

Denver, Colorado

February 15, 2017

36 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

FEDERAL INCOME TAX INFORMATION

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Dividends, if any, paid by the Fund during the reporting period which are not designated as capital gain distributions should be multiplied by the maximum amount allowable but not less than 27.71% to arrive at the amount eligible for the corporate dividend-received deduction.

37 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Krishna Memani and Magnus Krantz, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other conservative allocation funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were lower than its peer group median and category median. The Board also considered that the Fund’s contractual management fee was lower than its peer group median and higher than its category median. The Board noted that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.67% for Non-Service Shares and 0.92% for Service Shares. This contractual expense limitation may not be amended or withdrawn until one year after the date of the Fund’s prospectus, unless approved by the Board.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was

38 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).

39 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

40 �� OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

41 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Memani, Krantz, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Krishna Memani, Vice President (since 2009) Year of Birth: 1960		President of the Sub-Adviser (since January 2013); Executive Vice President of the Manager (since January 2014) and Chief Investment Officer of the OppenheimerFunds advisory entities (since January 2014). Chief Investment Officer, Fixed Income of the Sub-Adviser (January 2013-December 2013); Head of the Investment Grade Fixed Income Team of the Sub-Adviser (March 2009-January 2014); Director of Fixed Income of the Sub-Adviser (October 2010-December 2012); Senior Vice President of the Sub-Adviser (March 2009-December 2012) and Senior Vice President of OFI Global Institutional, Inc. (April 2009-December 2012). Managing Director and Head of the U.S. and European Credit Analyst Team at Deutsche Bank Securities (June 2006-January 2009). Chief Credit Strategist at Credit Suisse Securities (August 2002-March 2006). Managing Director and Senior Portfolio Manager at Putnam Investments (September 1998-June 2002). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Magnus Krantz, Vice President (since 2013) Year of Birth: 1967		Vice President of the Sub-Adviser (since May 2009) and a portfolio manager of the Sub-Adviser (since November 2012); sector manager for technology for the Sub-Adviser’s Main Street Investment Team (since May 2009). Prior to joining the Sub-Adviser, Mr. Krantz was a sector manager at RS Investment and Guardian Life Insurance Company. Mr. Krantz joined Guardian Life Insurance Company in December 2005 and transitioned to RS Investments in October 2006 in connection with Guardian Life Insurance Company’s acquisition of an interest in RS Investments. Portfolio manager and analyst at Citigroup Asset Management (1998-2005) and as a consultant at Price Waterhouse (1997-1998). He also served as product development engineer at Newbridge Networks (1993-1996) and as a software engineer at Mitel Corporation (1990-1993). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

42 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA



Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

43 OPPENHEIMER CONSERVATIVE BALANCED FUND/VA

OPPENHEIMER CONSERVATIVE BALANCED FUND/VA


A Series of Oppenheimer Variable Account Funds

Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO




		December 31, 2016
		Oppenheimer
		Capital Appreciation Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds

		ANNUAL REPORT

		Listing of Top Holdings

		Fund Performance Discussion

		Financial Statements

PORTFOLIO MANAGER: Paul Larson¹

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date	1-Year			5-Year			10-Year
Non-Service Shares	4/3/85		-2.20	%		11.59	%		5.34	%
Service Shares	9/18/01		-2.43			11.31			5.07
S&P 500 Index			11.96			14.66			6.95
Russell 1000 Growth Index			7.08			14.50			8.33

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS

��



Apple, Inc.			6.9%

Alphabet, Inc., Cl. C			6.2

Microsoft Corp.			5.9

Facebook, Inc., Cl. A			4.5

Amazon.com, Inc.			3.7

Mastercard, Inc., Cl. A			3.1

Comcast Corp., Cl. A			2.7

Lowe’s Cos., Inc.			2.6

Priceline Group, Inc. (The)			2.2

PayPal Holdings, Inc.			2.0

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

SECTOR ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of common stocks.

1. Paul Larson became a portfolio manager in October 2016.

2 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

Fund Performance Discussion

Changes were made to the Fund’s portfolio management team during the reporting period. Effective October 5, 2016, the new Portfolio Manager of the Fund is Paul Larson. Mr. Larson joined OppenheimerFunds in 2013 and has 20 years of investment experience. The Fund’s focus on domestic large-cap growth has not changed, but Mr. Larson and team will implement the same investment process employed by the Main Street strategies. The Main Street team employs a process that seeks to identify competitively advantaged companies with a compelling risk/reward profile, while seeking an all-weather orientation for the portfolio as a whole. The deep and experienced investment team has a history of guiding portfolios through distinct market cycles using this disciplined approach.

For the one-year reporting period, the Fund’s Non-Service shares generated a total return of -2.20%. In comparison, the Fund underperformed the Russell 1000 Growth Index (the “Index”), which returned 7.08% for the same period. The Fund was positioned strongly toward growth-oriented companies during the reporting period, yet value stocks outperformed during the period, and particularly following the election. While still remaining a growth fund, the new portfolio management team is in the process of moving the Fund to a more all-weather orientation in the value versus growth spectrum. The Fund also saw significant turnover—and related costs—in the closing months of the year as the portfolio manager change precipitated meaningful transformation within the portfolio. With the portfolio positioning changes nearly complete, turnover should be far lower going forward. On a sector basis, the largest underperformers included health care, consumer discretionary, and industrials, where stock selection detracted from performance. The Fund outperformed in energy due to an overweight position and stock selection, as well as in the utilities sector due to stock selection.

MARKET OVERVIEW

Markets were turbulent during the reporting period. However, domestic equities generally experienced gains, particularly after the November U.S. Presidential election. A large trend for the first half of 2016 was the demand for so-called “bond proxy stocks” with above average dividend yields. This trend was magnified post the Brexit vote as treasury yields, already at historic lows, were under pressure and future interest rate hike expectations continued to be pushed further out. However, the market environment shifted over the fourth quarter of 2016, when the “risk-on” trade returned. This meant a sharp rebound in lower quality cyclicals, outperformance by smaller versus larger cap stocks, and a rotation away from more stable earnings and defensive-oriented higher dividend companies. This theme continued through year end.

The one-year reporting period saw the market driven by several important macroeconomic trends and events:

●

The U.S. election, which saw Republicans take the White House and maintain control of Congress.

●

Given above, significant policy changes are expected surrounding taxation, cross-border trade, regulatory burdens, and healthcare.

●

With these changes, a broad shift from monetary stimuli to inflationary fiscal stimuli.

●

Uncertainty over the pace of Federal Reserve interest rate hikes.

●

The U.S. dollar materially strengthening versus other currencies.

●

Continued slow, but steady recovery in domestic consumer employment, wages and consumption.

●

Continued impact of Brexit, and increased uncertainty for global markets as a result.

●

Competitive currency devaluations, including negative interest rates in a number of jurisdictions, thrusting the world economy into uncharted territory.

As investors, it is important to know what is and what is not within one’s circle of competence. As such, we strive to keep the portfolio in an all-weather orientation. Whether rates, commodity prices, currencies or even whole economies go up or down, our goal is to have a portfolio that can out-perform no matter the environment.

If our strategy includes not making oversized macro factor bets, a reasonable question is, “What types of risks are you willing to take?” First, we believe identifying companies with sustainable competitive advantages (or economic moats, if you prefer), is squarely in the middle of our circle of competence.

Second, we believe we have the skills to identify company management teams that are likely to successfully execute on their plans. Lastly, correctly valuing stocks and seeing what expectations the market is pricing in is also within our skillset. It is not by accident that we weight the portfolio more heavily towards companies that we believe have structural competitive advantages and/or management teams that are executing (e.g. gaining market share, expanding profit margins), with at least reasonable stock valuations. Companies with these qualities generally have more stable earnings.

3 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

Allow us to use a metaphor. If managing the portfolio was like betting on horses, we’d readily admit that we cannot predict ahead of time the weather or track conditions. But we do believe we can find the strongest horses (advantaged business models), the best jockeys (executing management teams), and can see when the payoff odds are in our favor (positive expected returns). To offset our agnostic position on the conditions, we seek to have some horses in the stable that we believe will win no matter the weather. In short, it boils down to mostly stock selection.

TOP INDIVIDUAL CONTRIBUTORS

Top contributors to the Fund’s performance this period included NVIDIA, Electronic Arts and Microsoft. We exited our position in NVIDIA and Electronic Arts. NVIDIA designs and develops three-dimensional graphic processors to the mainstream personal computer market. The company reported revenue above consensus over the first quarter of its fiscal year and guided second quarter revenue ahead of consensus expectations driven by broad-based growth. Shares of video game developer Electronic Arts rallied after reporting strong fourth quarter and full-year 2016 financial results in May 2016. Microsoft develops and supports software products. Over the third quarter of 2016, the company reported profit and sales better than analysts’ estimates, as a result of their aggressive push into Internet-based software and services for businesses. Revenue from Azure, the company’s corporate cloud platform, doubled in the quarter ending September 30.

TOP INDIVIDUAL DETRACTORS

Detractors from performance this reporting period included Allergan, Valeant Pharmaceuticals and LinkedIn. Allergan, formerly known as Actavis, is a specialty pharmaceuticals manufacturer that markets branded drugs for patients suffering from diseases principally in the eye care, neuroscience, medical aesthetics/ dermatology, women’s health and gastroenterology categories. In November 2015, the company announced that it was merging with Pfizer to create a global pharmaceuticals company, and expected the deal to close in the second half of 2016. However, the deal was torpedoed by new Treasury Department rules meant to block American companies from moving their corporate addresses overseas to avoid U.S. taxes. This led Pfizer and Allergan to walk away from the record $160 billion deal. Over the first half of the reporting period, Valeant Pharmaceuticals said it was under investigation by the U.S. Securities and Exchange Commission in a previously undisclosed probe, in addition to its delayed financial results. The new portfolio management team believes Valeant’s management will divest non-core assets and utilize its free cash flow to pay down debt. LinkedIn, the largest professional networking website, reported better-than-expected earnings for the last quarter but warned that revenue would fall short of what analysts had projected for 2016. It also said it was discontinuing a new online advertising system that had not worked out. We exited our position (though we continue to own the business, via its new parent company Microsoft).

STRATEGY & OUTLOOK

While bottom-up company research and stock selection continue to be central to our process and strategy, we do have some observations about the current environment. First, the upcoming change resulting from the elections are likely to be profound. While the exact forms change will take is still speculation at this point, here are our base case expectations for what we believe will happen in the year ahead:

●

Lower U.S. corporate tax rates (leading to fewer companies re-domiciling outside the U.S., and maybe some companies coming back)

●

Offsetting the lower rates, fewer specialized deductions

●

Lower regulatory burdens

●

Greater fiscal stimulus, most notably infrastructure spending

●

Rhetoric around protectionism in many forms, including higher import tariffs

●

Higher wages

While some of these changes—most notably tax rates—would directly lead to earnings growth in the near term, these changes do present some material risks that need to be considered.

Supply chains today are highly globalized, and higher friction within global trade could lead to disruptions and higher costs for our companies. Moreover, other countries could easily create retaliatory protectionist policies of their own, reducing demand for U.S. exports and/or making life more difficult for overseas operations of our companies. Finally, deflation has been the bigger concern in recent years, but these policies are clearly swinging the pendulum toward higher inflation. In moderation, inflation is helpful, but we are mindful that sometimes the pendulum can swing too far.

At the moment, the U.S. economy continues its “slow and steady” growth. This is being driven by favorable employment, wage and inflation data while home prices and innovation also continue to help drive the economy higher.

U.S. corporate revenues, earnings, and free cash flow have resumed their moderate growth. The post-election strength in US equity markets and the return of the “risk on trade” indicates that the consensus expects earnings growth to accelerate further in the quarters ahead.

4 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

We continue to be laser-focused on the rise in “accounting shenanigans” and the rising spread between GAAP earnings and pro-forma adjusted earnings. This, combined with ongoing financial engineering, e.g., tax inversions and other obfuscations, have caused us to place increasing emphasis on judging the attractiveness of an investment based on free cash flow, rather than earnings.

While interest rates have increased in recent months, they are still very low relative to historical standards. Current capital allocation is fueled by this environment of ongoing relatively low interest rates. We believe the risks inherent to this market include the misallocation of capital if interest rates were to rise materially. We intend to maintain our discipline around valuation. Additionally, while innovation is alive and well and continuing to help generate economic growth, fundamental disruptions across market segments have been elevated. We continue to be focused on potential disruption risk to our companies.

We expect heightened uncertainty to return in the equity markets. Traditionally, during periods of economic uncertainty and heightened market volatility, investors favor stocks of higher quality companies—with greater consistency and stability of revenue and earnings— leading to relatively better stock performance for those companies. We think focusing on companies with economic moats and skilled management teams positions us well, should this environment come to pass. During times of economic volatility such companies frequently widen their lead over weaker competitors. We seek to invest in companies, characterized by these qualities, at compelling valuations and believe this disciplined approach is essential to generating superior long-term performance.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the S&P 500 Index and the Russell 1000 Growth Index. The S&P 500 Index is a broad-based measure of domestic stock performance. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Indices are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

5 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, call us at 1.800. 988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns include changes in share price and reinvested distributions but do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

6 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,043.60	$	4.12
Service shares		1,000.00		1,042.40		5.40

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.11		4.07
Service shares		1,000.00		1,019.86		5.35


Class	Expense Ratios
Non-Service shares		0.80%
Service shares		1.05

7 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—96.8%

Consumer Discretionary—17.1%

Hotels, Restaurants & Leisure—2.0%

Cedar Fair LP¹		133,437	$	8,566,656

Starbucks Corp.		134,360		7,459,667

				16,026,323

Household Durables—2.4%

Newell Brands, Inc.		144,750		6,463,088

Whirlpool Corp.		66,960		12,171,319

				18,634,407

Internet & Direct Marketing Retail—5.9%

Amazon.com, Inc.²		39,624		29,712,849

Priceline Group, Inc. (The)²		11,770		17,255,526

				46,968,375

Media—2.7%

Comcast Corp., Cl. A		316,126		21,828,500

Specialty Retail—4.1%

AutoZone, Inc.²		14,820		11,704,688

Lowe’s Cos., Inc.		292,400		20,795,488

				32,500,176

Consumer Staples—7.8%

Beverages—3.8%

Constellation Brands, Inc., Cl. A		65,570		10,052,536

Dr Pepper Snapple Group, Inc.		109,540		9,931,992

Molson Coors Brewing Co., Cl. B		109,890		10,693,396

				30,677,924

Food & Staples Retailing—1.0%

Costco Wholesale Corp.		49,560		7,935,052

Food Products—1.7%

Conagra Brands, Inc.		105,930		4,189,531

Kraft Heinz Co. (The)		103,430		9,031,508

				13,221,039

Household Products—1.3%

Spectrum Brands Holdings, Inc.		85,020		10,400,497

Energy—2.2%

Energy Equipment & Services—0.4%

Halliburton Co.		60,202		3,256,326

Oil, Gas & Consumable Fuels—1.8%

EOG Resources, Inc.		30,421		3,075,563

Magellan Midstream Partners LP¹		107,015		8,093,545

Pioneer Natural Resources Co.		19,611		3,531,353

				14,700,461

Financials—5.6%

Capital Markets—4.0%

BlackRock, Inc., Cl. A		11,130		4,235,410

Charles Schwab Corp. (The)		244,360		9,644,889

CME Group, Inc., Cl. A		80,820		9,322,587

Intercontinental Exchange, Inc.		161,850		9,131,577

				32,334,463

Real Estate Investment Trusts (REITs)—1.6%

Crown Castle International Corp.		98,190		8,519,947

Mid-America Apartment Communities, Inc.		42,760		4,187,059

				12,707,006

Health Care—16.4%

Biotechnology—4.0%

Amgen, Inc.		48,720		7,123,351

Biogen, Inc.²		45,470		12,894,383

Celgene Corp.²		104,464		12,091,708

				32,109,442

Health Care Equipment & Supplies—6.3%

Baxter International, Inc.		221,410		9,817,319

CR Bard, Inc.		36,760		8,258,502


	Shares		Value

Health Care Equipment & Supplies (Continued)

Danaher Corp.		154,870	$	12,055,081

Intuitive Surgical, Inc.²		10,510		6,665,127

Medtronic plc		121,500		8,654,445

Stryker Corp.		36,510		4,374,263

				49,824,737

Health Care Providers & Services—2.6%

Humana, Inc.		50,250		10,252,507

Laboratory Corp. of America Holdings²		83,020		10,658,108

				20,910,615

Health Care Technology—0.6%

Cerner Corp.²		104,960		4,971,955

Pharmaceuticals—2.9%

Allergan plc²		76,100		15,981,761

Merck & Co., Inc.		94,350		5,554,384

Valeant Pharmaceuticals International, Inc.²		74,480		1,081,450

				22,617,595

Industrials—9.5%

Building Products—0.4%

Allegion plc		48,750		3,120,000

Commercial Services & Supplies—1.6%

KAR Auction Services, Inc.		291,300		12,415,206

Electrical Equipment—0.7%

Acuity Brands, Inc.		17,880		4,127,777

Rockwell Automation, Inc.		14,160		1,903,104

				6,030,881

Machinery—3.6%

Deere & Co.		110,470		11,382,829

Ingersoll-Rand plc		41,080		3,082,643

Stanley Black & Decker, Inc.		35,030		4,017,591

Wabtec Corp.		125,350		10,406,557

				28,889,620

Professional Services—1.0%

Nielsen Holdings plc		195,150		8,186,542

Road & Rail—2.2%

Canadian National Railway Co.		95,310		6,423,894

Canadian Pacific Railway Ltd.		70,120		10,011,032

Kansas City Southern		9,760		828,136

				17,263,062

Information Technology—35.6%

Internet Software & Services—10.6%

Alphabet, Inc., Cl. C²		63,910		49,327,016

Facebook, Inc., Cl. A²		309,570		35,616,029

				84,943,045

IT Services—6.2%

Mastercard, Inc., Cl. A		236,300		24,397,975

PayPal Holdings, Inc.²		407,220		16,072,973

Visa, Inc., Cl. A		116,158		9,062,647

				49,533,595

Semiconductors & Semiconductor Equipment—2.9%

Broadcom Ltd.		74,660		13,197,648

Texas Instruments, Inc.		132,950		9,701,362

				22,899,010

Software—9.0%

Activision Blizzard, Inc.		355,030		12,820,133

Microsoft Corp.		759,450		47,192,223

Oracle Corp.		297,110		11,423,880

				71,436,236

Technology Hardware, Storage & Peripherals—6.9%

Apple, Inc.		472,520		54,727,266

8 OPPENHEIMER CAPITAL APPRECIATION FUND/VA


	Shares		Value

Materials—1.3%

Chemicals—1.0%

Albemarle Corp.		49,100	$	4,226,528

Sherwin-Williams Co. (The)		14,240		3,826,858

				8,053,386

Construction Materials—0.3%

Vulcan Materials Co.		15,650		1,958,596


	Shares		Value

Utilities—1.3%

Gas Utilities—1.3%

AmeriGas Partners LP¹		211,050	$	10,113,516

Total Common Stocks (Cost $675,097,605)				771,194,854

Investment Company—3.9%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^3,4(Cost $31,306,028)		31,306,028		31,306,028

Total Investments, at Value (Cost $706,403,633)		100.7%		802,500,882

Net Other Assets (Liabilities)		(0.7)		(5,519,102)

Net Assets		100.0%	$	796,981,780

Footnotes to Statement of Investments

1. Security is a Master Limited Partnership.

2. Non-income producing security.

3. Rate shown is the 7-day yield at period end.

4. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		8,225,463		328,580,976		305,500,411		31,306,028

					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	31,306,028	$	70,441

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

See accompanying Notes to Financial Statements.

9 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $675,097,605)	$	771,194,854
Affiliated companies (cost $31,306,028)		31,306,028

		802,500,882

Cash		2,000,609

Receivables and other assets:
Dividends		983,853
Shares of beneficial interest sold		310,134
Other		79,626

Total assets		805,875,104

Liabilities
Payables and other liabilities:
Investments purchased		8,459,224
Shares of beneficial interest redeemed		238,493
Trustees’ compensation		73,315
Distribution and service plan fees		62,557
Shareholder communications		31,296
Other		28,439

Total liabilities		8,893,324

Net Assets	$	796,981,780



Composition of Net Assets
Par value of shares of beneficial interest	$	16,561

Additional paid-in capital		624,327,701

Accumulated net investment loss		(101,477)

Accumulated net realized gain on investments		76,664,950

Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		96,074,045

Net Assets	��$	796,981,780



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $501,755,406 and 10,375,470 shares of beneficial interest outstanding)		$48.36


Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $295,226,374 and 6,185,743 shares of beneficial interest outstanding)		$47.73

See accompanying Notes to Financial Statements.

10 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income

Dividends:
Unaffiliated companies (net of foreign withholding taxes of $13,655)	$	8,385,149
Affiliated companies		70,441

Total investment income		8,455,590

Expenses
Management fees		5,654,232

Distribution and service plan fees - Service shares		719,950

Transfer and shareholder servicing agent fees:
Non-Service shares		515,055
Service shares		288,234

Shareholder communications:
Non-Service shares		45,447
Service shares		25,589

Trustees’ compensation		35,177

Custodian fees and expenses		16,845

Borrowing fees		14,821

Other		81,630

Total expenses		7,396,980
Less reduction to custodian expenses		(1,385)
Less waivers and reimbursements of expenses		(233,965)

Net expenses		7,161,630

Net Investment Income		1,293,960

Realized and Unrealized Gain (Loss)
Net realized gain on investment transactions in unaffiliated companies		85,112,682

Net change in unrealized appreciation/depreciation on:
Investment transactions		(108,412,929)
Translation of assets and liabilities denominated in foreign currencies		(3,770)

Net change in unrealized appreciation/depreciation		(108,416,699)

Net Decrease in Net Assets Resulting from Operations	$	(22,010,057)

See accompanying Notes to Financial Statements.

11 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income	$	1,293,960	$	2,548,712

Net realized gain		85,112,682		91,601,467

Net change in unrealized appreciation/depreciation		(108,416,699)		(62,184,920)

Net increase (decrease) in net assets resulting from operations		(22,010,057)		31,965,259

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(2,123,971)		(554,707)
Service shares		(318,481)		—

		(2,442,452)		(554,707)

Distributions from net realized gain:
Non-Service shares		(53,815,550)		(106,184,924)
Service shares		(29,108,236)		(59,885,291)

		(82,923,786)		(166,070,215)

Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest transactions:
Non-Service shares		6,630,751		32,611,326
Service shares		15,475,883		30,119,410

		22,106,634		62,730,736

Net Assets
Total decrease		(85,269,661)		(71,928,927)

Beginning of period		882,251,441		954,180,368

End of period (including accumulated net investment income (loss) of $(101,477) and $ 1,047,015, respectively)	$	796,981,780	$	882,251,441

See accompanying Notes to Financial Statements.

12 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period	$	55.49	$	64.87	$	57.88	$	45.06	$	39.75

Income (loss) from investment operations:
Net investment income¹		0.12		0.22		0.09		0.23		0.42
Net realized and unrealized gain (loss)		(1.57)		2.25		8.64		13.09		5.18

Total from investment operations		(1.45)		2.47		8.73		13.32		5.60

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.22)		(0.06)		(0.27)		(0.50)		(0.29)
Distributions from net realized gain		(5.46)		(11.79)		(1.47)		0.00		0.00

Total dividends and/or distributions to shareholders		(5.68)		(11.85)		(1.74)		(0.50)		(0.29)

Net asset value, end of period	$	48.36	$	55.49	$	64.87	$	57.88	$	45.06



Total Return, at Net Asset Value²		(2.20)%		3.54%		15.41%		29.74%		14.12%


Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	501,756	$	564,514	$	616,862	$	626,907	$	573,684

Average net assets (in thousands)	$	514,525	$	601,110	$	614,272	$	595,912	$	600,121

Ratios to average net assets:³
Net investment income		0.25%		0.36%		0.15%		0.44%		0.95%
Expenses excluding specific expenses listed below		0.83%		0.81%		0.80%		0.81%		0.81%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%

Total expenses⁵		0.83%		0.81%		0.80%		0.81%		0.81%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80%		0.80%		0.80%⁶		0.80%		0.80%

Portfolio turnover rate		114%		60%		61%		77%		28%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016		0.83%
Year Ended December 31, 2015		0.81%
Year Ended December 31, 2014		0.80%
Year Ended December 31, 2013		0.81%
Year Ended December 31, 2012		0.81%

6. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

13 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FINANCIAL HIGHLIGHTS Continued


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period	$	54.80	$	64.30	$	57.37	$	44.66	$	39.40

Income (loss) from investment operations:
Net investment income (loss)¹		0.00²		0.07		(0.06)		0.10		0.31
Net realized and unrealized gain (loss)		(1.55)		2.22		8.57		12.98		5.12

Total from investment operations		(1.55)		2.29		8.51		13.08		5.43

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.06)		0.00		(0.11)		(0.37)		(0.17)
Distributions from net realized gain		(5.46)		(11.79)		(1.47)		0.00		0.00

Total dividends and/or distributions to shareholders		(5.52)		(11.79)		(1.58)		(0.37)		(0.17)

Net asset value, end of period	$	47.73	$	54.80	$	64.30	$	57.37	$	44.66



Total Return, at Net Asset Value³		(2.43)%		3.27%		15.13%		29.43%		13.81%



Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	295,226	$	317,737	$	337,318	$	364,214	$	366,664

Average net assets (in thousands)	$	287,933	$	332,468	$	343,254	$	367,615	$	382,196

Ratios to average net assets:⁴
Net investment income (loss)		0.00%⁵		0.12%		(0.10)%		0.20%		0.71%
Expenses excluding specific expenses listed below		1.08%		1.06%		1.05%		1.06%		1.06%
Interest and fees from borrowings		0.00%⁵		0.00%⁵		0.00%		0.00%		0.00%

Total expenses⁶		1.08%		1.06%		1.05%		1.06%		1.06%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05%		1.05%		1.05%⁷		1.05%		1.05%

Portfolio turnover rate		114%		60%		61%		77%		28%

1. Per share amounts calculated based on the average shares outstanding during the period.

2. Less than $0.005 per share.

3. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions 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 less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4. Annualized for periods less than one full year.

5. Less than 0.005%.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016		1.08%
Year Ended December 31, 2015		1.06%
Year Ended December 31, 2014		1.05%
Year Ended December 31, 2013		1.06%
Year Ended December 31, 2012		1.06%

7. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

14 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Capital Appreciation Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

15 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$1,290,709		$76,705,372		$—		$95,897,357

1. During the reporting period, the Fund did not utilize any capital loss carryforward.

2. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Paid-in Capital	Reduction to Accumulated Net Realized Gain on Investments³

$7,314,047		$7,314,047

3. $7,314,047, all of which was long-term capital gain, was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	2,442,452	$	24,673,136
Long-term capital gain		82,923,786		141,951,786

Total	$	85,366,238	$	166,624,922


Federal tax cost of securities			$ 706,580,321

Gross unrealized appreciation			$ 107,689,169
Gross unrealized depreciation			(11,791,812)

Net unrealized appreciation			$ 95,897,357

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions

16 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

2. Significant Accounting Policies (Continued)

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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

17 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	135,957,781	$	—	$	—	$	135,957,781
Consumer Staples		62,234,512		—		—		62,234,512
Energy		17,956,787		—		—		17,956,787
Financials		45,041,469		—		—		45,041,469
Health Care		130,434,344		—		—		130,434,344
Industrials		75,905,311		—		—		75,905,311
Information Technology		283,539,152		—		—		283,539,152
Materials		10,011,982		—		—		10,011,982
Utilities		10,113,516		—		—		10,113,516
Investment Company		31,306,028		—		—		31,306,028

Total Assets	$	802,500,882	$	—	$	—	$	802,500,882

4. Investments and Risks

Master Limited Partnerships (“MLPs”). MLPs issue common units that represent an equity ownership interest in a partnership and provide limited

18 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

4. Investments and Risks (Continued)

voting rights. MLP common units are registered with the Securities and Exchange Commission (“SEC”), and are freely tradable on securities exchanges such as the NYSE and the NASDAQ Stock Market (“NASDAQ”), or in the over-the-counter (“OTC”) market. An MLP consists of one or more general partners, who conduct the business, and one or more limited partners, who contribute capital. MLP common unit holders have a limited role in the partnership’s operations and management. The Fund, as a limited partner, normally would not be liable for the debts of the MLP beyond the amounts the Fund has contributed, but would not be shielded to the same extent that a shareholder of a corporation would be. In certain circumstances creditors of an MLP would have the right to seek return of capital distributed to a limited partner. This right of an MLP’s creditors would continue after the Fund sold its investment in the MLP.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 50% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares		Amount

Non-Service Shares
Sold		575,681	$	28,663,769		257,353	$	15,042,314
Dividends and/or distributions reinvested		1,203,259		55,939,521		1,895,571		106,739,631
Redeemed		(1,577,136)		(77,972,539)		(1,488,512)		(89,170,619)

Net increase		201,804	$	6,630,751		664,412	$	32,611,326



Service Shares
Sold		1,273,302	$	61,113,815		931,104	$	54,653,065
Dividends and/or distributions reinvested		640,546		29,426,717		1,075,333		59,885,291
Redeemed		(1,525,798)		(75,064,649)		(1,455,061)		(84,418,946)

Net increase		388,050	$	15,475,883		551,376	$	30,119,410

17 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities	$	894,252,796		$979,284,795

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $200 million		0.75%
Next $200 million		0.72
Next $200 million		0.69
Next $200 million		0.66
Next $200 million		0.60
Over $1 billion		0.58

The Fund’s effective management fee for the reporting period was 0.70% of average annual net assets before any applicable waivers.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $138,123 and $77,264 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

20 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

9. Borrowings and Other Financing

10. Pending Litigation

21 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Capital Appreciation Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Capital Appreciation Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

22 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $5.46372 per share were paid to Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

23 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

The Managers and the independent consultant provided information to the Board on the following factors:

(i) the nature, quality and extent of the Managers’ services, (ii) the comparative investment performance of the Fund and the Managers, (iii) the fees and expenses of the Fund, including comparative fee and expense information, (iv) the profitability of the Managers and their affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Managers from their relationship with the Fund. The Board was aware that there are alternatives to retaining the Managers.

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ key personnel who provide such services. The Managers’ duties include providing the Fund with the services of the portfolio manager and the Sub-Adviser’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; and securities trading services. OFI Global is responsible for oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; risk management; and oversight of the Sub-Adviser. OFI Global is also responsible for providing certain administrative services to the Fund. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the U.S. Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by federal and state securities laws for the sale of the Fund’s shares. OFI Global also provides the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Paul Larson, the portfolio manager for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Investment Performance of the Managers and the Fund. Throughout the year, the Managers provided information on the investment performance of the Fund, the Adviser and the Sub-Adviser, including comparative performance information. The Board also reviewed information, prepared by the Managers and by the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other large growth funds underlying variable insurance products. The Board noted that the Fund underperformed its category median during the one-, three-, five- and ten-year periods. The Board also noted that the Fund outperformed its category median in 2014, though it underperformed its category median in 2015. The Board considered that Michael Kotlarz took over sole portfolio management responsibilities on May 31, 2013 and has been fully accountable for the Fund’s performance since June 30, 2013. The Board further considered that the Fund’s recent underperformance has been relatively concentrated in a short time period from February to April 2016, during which time there was an unprecedented sharp sell-off in high growth momentum companies. The Board noted the Adviser’s assertion that the Fund has had top quartile results since the end of March 2016 and that it outperformed its category for the quarter ended June 30, 2016.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other large growth funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses were higher than its peer group median and its category median and that its contractual management fee was lower than its peer group median and category median. The Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service Shares and 1.05% for Service Shares. This waiver and/or reimbursement may not be amended or withdrawn until one year from the date of the Fund’s prospectus, unless approved by the Board.

24 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).

25 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

26 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

27 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth: 1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.


INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.


OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Mr. Larson, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Paul Larson, Vice President (since 2016) Year of Birth: 1971		Vice President of the Sub-Adviser (since January 2013). Prior to joining the Sub-Adviser, he was a portfolio manager and Chief Equity Strategist at Morningstar. He was previously an analyst at Morningstar covering the energy sector and oversaw the firm’s natural resources analysts. Prior to joining Morningstar in 2002, Mr. Larson was an analyst with The Motley Fool. A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

28 OPPENHEIMER CAPITAL APPRECIATION FUND/VA


Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub-Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

29 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

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30 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

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31 OPPENHEIMER CAPITAL APPRECIATION FUND/VA

OPPENHEIMER CAPITAL APPRECIATION FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc. DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO




		December 31, 2016
		Oppenheimer
		Core Bond Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds

		ANNUAL REPORT

		Listing of Top Holdings

		Fund Performance Discussion

		Financial Statements

PORTFOLIO MANAGERS: Krishna Memani and Peter A. Strzalkowski, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		4/3/85		3.27%		4.27%		0.36%
Service Shares		5/1/02		3.05		4.02		0.11
Bloomberg Barclays Credit Index				5.63		3.85		5.31
Bloomberg Barclays U.S. Aggregate Bond Index				2.65		2.23		4.34
Citigroup Broad Investment Grade Bond Index				2.66		2.22		4.43

TOP HOLDINGS AND ALLOCATIONS


PORTFOLIO ALLOCATION
Non-Convertible Corporate Bonds and Notes			37.2%
Mortgage-Backed Obligations
Government Agency			24.4
Non-Agency			10.2
Short-Term Notes			13.2
Asset-Backed Securities			11.8
Investment Company
Oppenheimer Institutional Government Money Market Fund			1.6
U.S. Government Obligations			1.3
Certificates of Deposit			0.3
Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of investments.
CORPORATE BONDS & NOTES - TOP TEN INDUSTRIES
Commercial Banks			4.6%
Oil, Gas & Consumable Fuels			3.1
Electric Utilities			2.4
Capital Markets			2.2
Automobiles			2.1
Diversified Telecommunication Services			2.1
Media			1.9
Food Products			1.9
Beverages			1.7
Chemicals			1.4
Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets.

2 OPPENHEIMER CORE BOND FUND/VA

Fund Performance Discussion

MARKET OVERVIEW

It was a volatile reporting period for fixed-income markets. Central Bank policy was a major focus this reporting period, with statements and actions from the Federal Reserve (the “Fed”), Bank of Japan (BoJ), European Central Bank (“ECB”), and more, fueling movements in global capital markets. Throughout most of the year, the question of when the Fed would raise interest rates remained. It finally did in the closing month of the reporting period. Improved economic data and outlook led the Fed to hike its policy rates by 0.25% in December, meeting market expectations. The Fed’s policy making Federal Open Market Committee noted they will continue to be cautious and will hike rates gradually, but posted a modestly optimistic outlook. By year end, markets were pricing for slightly more than two hikes by the end of 2017.

Even with the substantial sell off of U.S. Treasuries after the election, the Bloomberg Barclays U.S. Treasury Index still posted a positive return for the year at just over 1%. Spread sectors fared much better, with Industrials posting over 7% gains, while returns of structured products (mortgage backed securities and asset backed securities) were more muted. Distressed credit was the stand-out performer amongst global fixed income asset classes as higher oil prices reduced fears of significant defaults in the energy and mining sectors.

FUND REVIEW

Against this backdrop, the Fund’s Non-Service shares produced a return of 3.27% during the reporting period. In comparison, the Fund’s benchmarks, the Bloomberg Barclays U.S. Aggregate Bond Index (the “Index”), the Bloomberg Barclays Credit Index and the Citigroup Broad Investment Grade Bond Index, returned 2.65%, 5.63%, and 2.66%, respectively. The Fund’s outperformance versus the Index this reporting period stemmed from its underweight position in U.S. Treasuries, which sold off this reporting period, as mentioned earlier. In addition, the Fund’s exposure to high yield credit benefited performance. The top detractor from the Fund’s performance versus the Index was its overweight exposure to agency mortgage-backed securities (“MBS”). While the Fund had a larger allocation to agency MBS, its exposure to non-agency MBS produced slight outperformance this reporting period.

STRATEGY & OUTLOOK

The portfolio management team believes macroeconomic fundamentals will continue to remain solid, with continued gains in wages and employment. Inflation is likely to creep higher and potential fiscal stimulus could boost consumption later in the year. The team expects the Fed to hike interest rates two times in 2017 and continue to reinvest pay downs and maturities of mortgages and Treasury securities.

The team remains neutral duration as near term inflation risks appear to be fully priced into yields and the rise in risk premium is consistent with a relative sanguine economic outlook. Given the unattractive carry and rising risk later in the year for the Fed to discuss suspension of mortgage reinvestments, the team is slightly underweight agency MBS going into 2017. Should spreads widen or relative value between different areas of the market develop, the team intends to take positions tactically. However, unless carry improves significantly, this would unlikely be a longer-term position.

Demand for credit-related securities remains robust at period end. As corporate fundamentals remain stable the team remains cautiously engaged in corporate credit.

Within structured products, the team continues to avoid student loan and more esoteric asset-backed securities (“ABS”). The team remains engaged in auto and credit card ABS given the attractive fundamentals and carry of those segments. The team seeks opportunities to participate in commercial mortgage backed securities (“CMBS”) as they believe valuations are attractive and the implementation of risk retention rules make underwriting of the structures more appealing.

3 OPPENHEIMER CORE BOND FUND/VA

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the Bloomberg Barclays Credit Index, an index of non-convertible U.S. investment grade corporate bonds; the Bloomberg Barclays U.S. Aggregate Bond Index, an index of U.S. corporate and government bonds and the Citigroup Broad Investment Grade Bond Index, an index of institutionally traded U.S. Treasury Bonds, government-sponsored bonds, mortgage-backed securities and corporate securities. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

4 OPPENHEIMER CORE BOND FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER CORE BOND FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares		$ 1,000.00		$ 983.30		$ 3.75
Service shares		1,000.00		983.10		5.00

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.37		3.82
Service shares		1,000.00		1,020.11		5.09


Class	Expense Ratios
Non-Service shares		0.75%
Service shares		1.00

6 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Principal Amount		Value

Asset-Backed Securities—14.6%

Auto Loan—9.0%

American Credit Acceptance Receivables Trust:
Series 2014-3,Cl. B, 2.43%, 6/10/20¹	$	81,775	$	81,850
Series 2014-4,Cl. B, 2.60%, 10/10/17¹		72,084		72,308
Series 2015-1,Cl. B, 2.85%, 2/12/21¹		385,000		386,895
Series 2015-3,Cl. B, 3.56%, 10/12/21¹		325,000		329,618

AmeriCredit Automobile Receivables Trust:
Series 2012-4,Cl. D, 2.68%, 10/9/18		100,000		98,119
Series 2013-2,Cl. E, 3.41%, 10/8/20¹		345,000		348,185
Series 2013-3,Cl. E, 3.74%, 12/8/20¹		160,000		162,278
Series 2013-4,Cl. D, 3.31%, 10/8/19		50,000		50,871
Series 2014-1,Cl. E, 3.58%, 8/9/21		310,000		315,138
Series 2014-2,Cl. E, 3.37%, 11/8/21		385,000		389,534

Capital Auto Receivables Asset Trust:
Series 2014-1,Cl. D, 3.39%, 7/22/19		115,000		117,683
Series 2014-3,Cl. D, 3.14%, 2/20/20		295,000		299,455
Series 2015-1,Cl. D, 3.16%, 8/20/20		165,000		167,037
Series 2015-4,Cl. D, 3.62%, 5/20/21		260,000		265,276
Series 2016-2,Cl. D, 3.16%, 11/20/23		60,000		59,953
Series 2016-3,Cl. D, 2.65%, 1/20/24		100,000		98,478

CarFinance Capital Auto Trust, Series 2015-1A, Cl. A, 1.75%, 6/15/21¹		83,735		83,802

CarMax Auto Owner Trust:
Series 2013-2,Cl. D, 2.06%, 11/15/19		45,000		44,991
Series 2015-2,Cl. D, 3.04%, 11/15/21		100,000		100,155
Series 2015-3,Cl. D, 3.27%, 3/15/22		295,000		297,378
Series 2016-1,Cl. D, 3.11%, 8/15/22		185,000		183,689
Series 2016-3,Cl. D, 2.94%, 1/17/23		115,000		112,829
Series 2016-4,Cl. D, 2.91%, 4/17/23		260,000		254,359

CPS Auto Receivables Trust:
Series 2014-A,Cl. A, 1.21%, 8/15/18¹		14,699		14,694
Series 2014-C,Cl. A, 1.31%, 2/15/19¹		50,197		50,184

Credit Acceptance Auto Loan Trust:
Series 2014-1A,Cl. B, 2.29%, 4/15/22¹		215,000		215,584
Series 2014-2A,Cl. B, 2.67%, 9/15/22¹		160,000		160,673

Drive Auto Receivables Trust:
Series 2015-BA,Cl. C, 2.76%, 7/15/21¹		300,000		301,960
Series 2015-DA,Cl. D, 4.59%, 1/17/23¹		50,000		51,352
Series 2016-BA,Cl. C, 3.19%, 7/15/22¹		160,000		161,256
Series 2016-CA,Cl. A1, 0.90%, 12/15/17¹		439,221		439,225
Series 2016-CA,Cl. D, 4.18%, 3/15/24¹		160,000		158,863

DT Auto Owner Trust:
Series 2013-2A,Cl. D, 4.18%, 6/15/20¹		303,618		306,277
Series 2014-2A,Cl. D, 3.68%, 4/15/21¹		525,000		530,152
Series 2014-3A,Cl. D, 4.47%, 11/15/21¹		375,000		382,512
Series 2015-1A,Cl. C, 2.87%, 11/16/20¹		178,604		179,209
Series 2016-1A,Cl. B, 2.79%, 5/15/20¹		265,000		266,630
Series 2016-4A,Cl. B, 2.02%, 8/17/20¹		240,000		239,151

Exeter Automobile Receivables Trust:
Series 2014-1A,Cl. B, 2.42%, 1/15/19¹		61,267		61,321
Series 2014-1A,Cl. C, 3.57%, 7/15/19¹		230,000		231,513
Series 2014-2A,Cl. C, 3.26%, 12/16/19¹		155,000		155,895

First Investors Auto Owner Trust:
Series 2013-3A,Cl. B, 2.32%, 10/15/19¹		385,000		385,715
Series 2013-3A,Cl. D, 3.67%, 5/15/20¹		125,000		125,896

Flagship Credit Auto Trust:
Series 2014-1,Cl. A, 1.21%, 4/15/19¹		11,957		11,954
Series 2014-2,Cl. A, 1.43%, 12/16/19¹		64,354		64,351
Series 2016-4,Cl. A1, 1.47%, 3/16/20¹		265,850		265,638

Ford Credit Floorplan Master Owner Trust A, Series 2016-3, Cl. A1, 1.55%, 7/15/21		365,000		361,298

GM Financial Automobile Leasing Trust, Series 2015-1, Cl. D, 3.01%, 3/20/20		240,000		242,836

Huntington Auto Trust, Series 2016-1, Cl. A1, 0.85%, 12/15/17		208,715		208,720

Navistar Financial Dealer Note Master Owner Trust II:
Series 2015-1,Cl. B, 2.456%, 6/25/20^1,2		70,000		70,063


	Principal Amount		Value

Auto Loan (Continued)

Navistar Financial Dealer Note Master Owner Trust II: (Continued)
Series 2015-1,Cl. D, 3.906%, 6/25/20^1,2	$	25,000	$	25,035
Series 2016-1,Cl. D, 4.056%, 9/27/21^1,2		75,000		75,493

Santander Drive Auto Receivables Trust:
Series 2013-4,Cl. E, 4.67%, 1/15/20¹		360,000		366,440
Series 2013-A,Cl. E, 4.71%, 1/15/21¹		270,000		276,919
Series 2014-2,Cl. D, 2.76%, 2/18/20		215,000		217,631
Series 2014-4,Cl. C, 2.60%, 11/16/20		155,000		156,275
Series 2016-2,Cl. D, 3.39%, 4/15/22		120,000		120,954

SNAAC Auto Receivables Trust, Series 2014-1A, Cl. D, 2.88%, 1/15/20¹		140,000		139,396

TCF Auto Receivables Owner Trust:
Series 2014-1A,Cl. C, 3.12%, 4/15/21¹		100,000		100,053
Series 2015-1A,Cl. D, 3.53%, 3/15/22¹		160,000		160,318

United Auto Credit Securitization Trust, Series 2015-1, Cl. D, 2.92%, 6/17/19¹		225,000		225,666

Westlake Automobile Receivables Trust:
Series 2014-2A,Cl. D, 2.86%, 7/15/21¹		165,000		165,798
Series 2015-1A,Cl. C, 2.29%, 11/16/20¹		215,000		215,607
Series 2015-2A,Cl. C, 2.45%, 1/15/21¹		215,000		216,476

				12,424,864



Credit Card—5.3%

American Express Credit Account Master Trust:
Series 2014-2,Cl. A, 1.26%, 1/15/20		75,000		75,052
Series 2014-3,Cl. A, 1.49%, 4/15/20		305,000		305,714
Series 2014-5,Cl. A, 0.994%, 5/15/20²		325,000		325,371
Series 2015-1,Cl. A, 0.994%, 1/15/20²		600,000		600,579

Cabela’s Credit Card Master Note Trust:
Series 2013-2A,Cl. A2, 1.354%, 8/16/21^1,2		100,000		100,458
Series 2016-1,Cl. A1, 1.78%, 6/15/22		320,000		319,141

Capital One Multi-Asset Execution Trust:
Series 2007-A1,Cl. A1, 0.754%, 11/15/19²		305,000		305,002
Series 2014-A2,Cl. A2, 1.26%, 1/15/20		445,000		445,256
Series 2014-A5,Cl. A5, 1.48%, 7/15/20		595,000		596,276

Chase Issuance Trust:
Series 2007-A3,Cl. A3, 5.23%, 4/15/19		95,000		95,443
Series 2014-A1,Cl. A1, 1.15%, 1/15/19		555,000		555,006
Series 2014-A6,Cl. A6, 1.26%, 7/15/19		430,000		430,292
Series 2014-A7,Cl. A7, 1.38%, 11/15/19		605,000		605,588
Series 2016-A6,Cl. A6, 1.10%, 1/15/20		580,000		578,686

Discover Card Execution Note Trust, Series 2014-A5, Cl. A, 1.39%, 4/15/20		535,000		535,836

Evergreen Credit Card Trust, Series 2016-3, Cl. A, 1.204%, 11/16/20^1,2		455,000		455,385

Synchrony Credit Card Master Note Trust, Series 2012-6, Cl. A, 1.36%, 8/17/20		165,000		165,108

World Financial Network Credit Card Master Trust:
Series 2014-C,Cl. A, 1.60%, 8/16/21		310,000		310,480
Series 2015-C,Cl. A, 1.26%, 3/15/21		225,000		225,148
Series 2016-B,Cl. A, 1.44%, 6/15/22		205,000		204,344

				7,234,165



Equipment—0.1%

FRS I LLC, Series 2013-1A, Cl. A1, 1.80%, 4/15/43¹		44,412		43,509

Trip Rail Master Funding LLC, Series 2014-1A, Cl. A1, 2.863%, 4/15/44¹		75,888		74,098

				117,607



Loans: Other—0.2%

Element Rail Leasing I LLC, Series 2014-1A, Cl. A1, 2.299%, 4/19/44¹		275,174		267,913

Total Asset-Backed Securities (Cost $20,009,872)				20,044,549

7 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Mortgage-Backed Obligations—42.9%

Government Agency—30.2%

FHLMC/FNMA/FHLB/Sponsored—25.7%

Federal Home Loan Mortgage Corp. Gold Pool:
5.00%, 12/1/34	$	4,588	$	5,018
5.50%, 9/1/39		364,987		405,501
6.00%, 5/1/18-10/1/29		506,020		574,517
6.50%, 4/1/18-4/1/34		145,255		164,005
7.00%, 10/1/31-10/1/37		141,188		157,786
9.00%, 8/1/22-5/1/25		9,233		10,034

Federal Home Loan Mortgage Corp. Non Gold Pool, 10.50%, 10/1/20		763		787

Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security:
Series 205,Cl. IO, 51.644%, 9/1/29³		6,486		1,464
Series 206,Cl. IO, 0.00%, 12/1/29^3,4		103,800		30,063
Series 243,Cl. 6, 0.00%, 12/15/32^3,4		70,896		13,123

Federal Home Loan Mortgage Corp., Mtg.-Linked Amortizing Global Debt Securities, Series 2012-1, Cl. A10, 2.06%, 1/15/22		368,584		372,033

Federal Home Loan Mortgage Corp., Principal-Only Stripped Mtg.-Backed Security, Series 176, Cl. PO, 4.108%, 6/1/26⁵		34,672		31,583

Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
Series 151,Cl. F, 9.00%, 5/15/21		2,489		2,687
Series 1674,Cl. Z, 6.75%, 2/15/24		10,224		11,163
Series 2034,Cl. Z, 6.50%, 2/15/28		1,851		2,090
Series 2042,Cl. N, 6.50%, 3/15/28		4,373		4,865
Series 2043,Cl. ZP, 6.50%, 4/15/28		222,333		247,495
Series 2046,Cl. G, 6.50%, 4/15/28		10,689		12,069
Series 2053,Cl. Z, 6.50%, 4/15/28		1,953		2,208
Series 2066,Cl. Z, 6.50%, 6/15/28		202,708		228,872
Series 2195,Cl. LH, 6.50%, 10/15/29		176,457		199,262
Series 2220,Cl. PD, 8.00%, 3/15/30		1,135		1,344
Series 2326,Cl. ZP, 6.50%, 6/15/31		51,804		57,645
Series 2461,Cl. PZ, 6.50%, 6/15/32		192,490		224,554
Series 2470,Cl. LF, 1.704%, 2/15/32²		1,591		1,631
Series 2564,Cl. MP, 5.00%, 2/15/18		28,872		29,341
Series 2585,Cl. HJ, 4.50%, 3/15/18		14,882		15,262
Series 2635,Cl. AG, 3.50%, 5/15/32		30,745		31,677
Series 2707,Cl. QE, 4.50%, 11/15/18		8,870		9,066
Series 2770,Cl. TW, 4.50%, 3/15/19		5,619		5,791
Series 3010,Cl. WB, 4.50%, 7/15/20		15,000		15,463
Series 3025,Cl. SJ, 22.169%, 8/15/35²		16,980		25,403
Series 3030,Cl. FL, 1.104%, 9/15/35²		2,599		2,588
Series 3645,Cl. EH, 3.00%, 12/15/20		48,769		49,530
Series 3741,Cl. PA, 2.15%, 2/15/35		145,416		146,359
Series 3815,Cl. BD, 3.00%, 10/15/20		2,491		2,520
Series 3822,Cl. JA, 5.00%, 6/15/40		5,190		5,432
Series 3840,Cl. CA, 2.00%, 9/15/18		1,879		1,887
Series 3848,Cl. WL, 4.00%, 4/15/40		25,913		26,870
Series 3857,Cl. GL, 3.00%, 5/15/40		5,450		5,575
Series 4221,Cl. HJ, 1.50%, 7/15/23		96,443		95,899

Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2074,Cl. S, 99.999%, 7/17/28³		1,393		208
Series 2079,Cl. S, 99.999%, 7/17/28³		2,445		411
Series 2130,Cl. SC, 99.999%, 3/15/29³		85,533		15,458
Series 2526,Cl. SE, 64.254%, 6/15/29³		2,832		575
Series 2796,Cl. SD, 99.999%, 7/15/26³		152,194		23,429
Series 2920,Cl. S, 5.996%, 1/15/35³		583,922		94,331
Series 2922,Cl. SE, 25.997%, 2/15/35³		71,455		11,049
Series 2981,Cl. AS, 10.855%, 5/15/35³		94,470		15,818
Series 3004,Cl. SB, 0.00%, 7/15/35^3,4		27,440		3,527
Series 3397,Cl. GS, 0.00%, 12/15/37^3,4		13,034		2,266
Series 3424,Cl. EI, 0.00%, 4/15/38^3,4		13,688		1,541
Series 3450,Cl. BI, 23.402%, 5/15/38³		370,782		53,139
Series 3606,Cl. SN, 23.012%, 12/15/39³		95,952		15,167


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal National Mortgage Assn.:
2.50%, 1/1/32⁶	$	2,355,000	$	2,357,774
3.00%, 1/1/32⁶		5,115,000		5,247,367
3.50%, 1/1/47⁶		6,945,000		7,114,306
4.00%, 1/15/47⁶		8,115,000		8,527,876
4.50%, 1/1/47⁶		2,720,000		2,924,969
5.00%, 1/1/47⁶		1,830,000		1,993,339

Federal National Mortgage Assn. Pool:
5.00%, 3/1/21-7/1/22		6,896		7,124
5.50%, 2/1/35-5/1/36		147,903		165,914
6.50%, 5/1/17-1/1/34		25,657		27,096
7.00%, 11/1/17-7/1/35		46,366		51,588
7.50%, 1/1/33		4,171		5,013
8.50%, 7/1/32		10,036		10,896

Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 221,Cl. 2, 99.999%, 5/25/23³		2,051		350
Series 222,Cl. 2, 99.999%, 6/25/23³		227,932		34,141
Series 252,Cl. 2, 99.999%, 11/25/23³		214,758		36,922
Series 294,Cl. 2, 99.999%, 2/25/28³		26,572		6,715
Series 301,Cl. 2, 6.128%, 4/25/29³		2,180		520
Series 303,Cl. IO, 35.026%, 11/25/29³		46,378		12,004
Series 320,Cl. 2, 34.649%, 4/25/32³		180,738		52,372
Series 321,Cl. 2, 0.00%, 4/25/32^3,4		456,651		107,659
Series 324,Cl. 2, 0.00%, 7/25/32^3,4		4,775		1,149
Series 331,Cl. 5, 0.00%, 2/25/33^3,4		6,782		1,310
Series 331,Cl. 9, 27.723%, 2/25/33³		151,099		32,237
Series 334,Cl. 12, 0.00%, 3/25/33^3,4		11,135		2,530
Series 334,Cl. 17, 20.596%, 2/25/33³		96,379		19,886
Series 339,Cl. 12, 0.00%, 6/25/33^3,4		154,729		31,986
Series 339,Cl. 7, 0.00%, 11/25/33^3,4		324,925		65,633
Series 343,Cl. 13, 0.00%, 9/25/33^3,4		159,769		31,888
Series 343,Cl. 18, 0.00%, 5/25/34^3,4		39,700		9,381
Series 345,Cl. 9, 0.00%, 1/25/34^3,4		115,693		22,212
Series 351,Cl. 10, 0.00%, 4/25/34^3,4		51,322		10,542
Series 351,Cl. 8, 0.00%, 4/25/34^3,4		87,557		17,965
Series 356,Cl. 10, 0.00%, 6/25/35^3,4		62,881		12,728
Series 356,Cl. 12, 0.00%, 2/25/35^3,4		30,498		6,905
Series 362,Cl. 13, 0.00%, 8/25/35^3,4		122,556		25,381
Series 364,Cl. 15, 0.00%, 9/25/35^3,4		6,389		1,188
Series 364,Cl. 16, 0.00%, 9/25/35^3,4		133,692		26,064
Series 365,Cl. 16, 0.00%, 3/25/36^3,4		179,626		36,292

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
Series 1993-87,Cl. Z, 6.50%, 6/25/23		159,421		173,672
Series 1998-58,Cl. PC, 6.50%, 10/25/28		121,912		134,645
Series 1998-61,Cl. PL, 6.00%, 11/25/28		63,548		72,122
Series 1999-54,Cl. LH, 6.50%, 11/25/29		100,253		115,244
Series 2001-51,Cl. OD, 6.50%, 10/25/31		7,427		8,176
Series 2001-74,Cl. QE, 6.00%, 12/25/31		152,211		173,179
Series 2002-12,Cl. PG, 6.00%, 3/25/17		24		24
Series 2003-100,Cl. PA, 5.00%, 10/25/18		74,370		76,045
Series 2003-28,Cl. KG, 5.50%, 4/25/23		479,713		519,120
Series 2003-84,Cl. GE, 4.50%, 9/25/18		3,513		3,605
Series 2004-101,Cl. BG, 5.00%, 1/25/20		2,425		2,429
Series 2004-25,Cl. PC, 5.50%, 1/25/34		3,485		3,595
Series 2005-73,Cl. DF, 1.006%, 8/25/35²		6,633		6,661
Series 2006-11,Cl. PS, 21.794%, 3/25/36²		83,689		124,565
Series 2006-46,Cl. SW, 21.427%, 6/25/36²		60,902		81,940
Series 2006-50,Cl. KS, 21.428%, 6/25/36²		81,701		119,541
Series 2008-75,Cl. DB, 4.50%, 9/25/23		25,157		25,659
Series 2009-113,Cl. DB, 3.00%, 12/25/20		83,622		84,680
Series 2009-36,Cl. FA, 1.696%, 6/25/37²		69,251		70,829

8 OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: (Continued)
Series 2009-70,Cl. TL, 4.00%, 8/25/19	$	32,819	$	33,246
Series 2010-43,Cl. KG, 3.00%, 1/25/21		26,551		26,971
Series 2011-3,Cl. EL, 3.00%, 5/25/20		136,690		138,392
Series 2011-38,Cl. AH, 2.75%, 5/25/20		2,181		2,202
Series 2011-82,Cl. AD, 4.00%, 8/25/26		51,522		52,600

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2001-61,Cl. SH, 17.584%, 11/18/31³		6,151		1,455
Series 2001-63,Cl. SD, 52.614%, 12/18/31³		2,075		422
Series 2001-65,Cl. S, 29.387%, 11/25/31³		154,334		30,165
Series 2001-68,Cl. SC, 39.602%, 11/25/31³		1,393		295
Series 2001-81,Cl. S, 27.623%, 1/25/32³		45,836		12,969
Series 2002-28,Cl. SA, 27.098%, 4/25/32³		1,330		272
Series 2002-38,Cl. SO, 61.581%, 4/25/32³		4,012		732
Series 2002-39,Cl. SD, 49.534%, 3/18/32³		2,653		522
Series 2002-47,Cl. NS, 29.176%, 4/25/32³		132,304		32,187
Series 2002-48,Cl. S, 34.434%, 7/25/32³		2,191		466
Series 2002-51,Cl. S, 27.72%, 8/25/32³		121,455		23,241
Series 2002-52,Cl. SD, 71.891%, 9/25/32³		186,728		37,802
Series 2002-52,Cl. SL, 28.106%, 9/25/32³		1,374		285
Series 2002-53,Cl. SK, 70.502%, 4/25/32³		9,244		1,904
Series 2002-56,Cl. SN, 32.718%, 7/25/32³		2,987		624
Series 2002-60,Cl. SM, 20.925%, 8/25/32³		19,812		3,424
Series 2002-7,Cl. SK, 21.511%, 1/25/32³		8,757		1,755
Series 2002-77,Cl. BS, 21.321%, 12/18/32³		12,513		2,533
Series 2002-77,Cl. IS, 47.912%, 12/18/32³		6,836		1,330
Series 2002-77,Cl. SH, 33.094%, 12/18/32³		61,390		12,872
Series 2002-84,Cl. SA, 27.678%, 12/25/32³		145,746		29,481
Series 2002-9,Cl. MS, 25.517%, 3/25/32³		2,298		471
Series 2002-90,Cl. SN, 21.338%, 8/25/32³		10,192		1,762
Series 2002-90,Cl. SY, 25.223%, 9/25/32³		7,294		1,238
Series 2003-26,Cl. DI, 42.779%, 4/25/33³		6,451		1,512
Series 2003-33,Cl. SP, 33.145%, 5/25/33³		151,789		30,627
Series 2003-4,Cl. S, 21.312%, 2/25/33³		92,787		20,778
Series 2004-54,Cl. DS, 99.999%, 11/25/30³		131,636		23,572
Series 2005-12,Cl. SC, 43.072%, 3/25/35³		33,603		5,249
Series 2005-14,Cl. SE, 54.967%, 3/25/35³		104,805		16,264
Series 2005-40,Cl. SA, 99.999%, 5/25/35³		302,731		54,342
Series 2005-40,Cl. SB, 83.359%, 5/25/35³		13,135		1,968


	Principal Amount		Value

FHLMC/FNMA/FHLB/Sponsored (Continued)

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security: (Continued)
Series 2005-52,Cl. JH, 49.433%, 5/25/35³	$	80,746	$	12,533
Series 2005-93,Cl. SI, 11.819%, 10/25/35³		209,881		37,420
Series 2008-55,Cl. SA, 0.00%, 7/25/38^3,4		15,917		1,719
Series 2009-8,Cl. BS, 99.999%, 2/25/24³		14,605		428
Series 2011-96,Cl. SA, 14.482%, 10/25/41³		60,579		10,696
Series 2012-134,Cl. SA, 9.568%, 12/25/42³		172,008		35,883
Series 2012-40,Cl. PI, 3.764%, 4/25/41³		139,640		18,731

Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Principal-Only Stripped Mtg.-Backed Security, Series 1993-184, Cl. M, 5.195%, 9/25/23⁵		71,445		66,364

				35,092,038


GNMA/Guaranteed—4.5%

Government National Mortgage Assn. I Pool:
7.00%, 12/15/23-3/15/26		6,724		7,206
8.50%, 8/15/17-12/15/17		1,224		1,227

Government National Mortgage Assn. II Pool:
3.50%, 1/21/47⁶		3,890,000		4,041,236
4.00%, 1/1/47⁶		1,940,000		2,059,268

Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 2002-15,Cl. SM, 99.999%, 2/16/32³		214,065		30,223
Series 2007-17,Cl. AI, 65.36%, 4/16/37³		73,069		12,804
Series 2011-52,Cl. HS, 34.013%, 4/16/41³		485,000		79,495

				6,231,459


Non-Agency—12.7%

Commercial—8.8%

Asset Securitization Corp., Interest-Only Stripped Mtg.-Backed Security, Series 1997-D4, Cl. PS1, 91.934%, 4/14/29³		1,244,619		6,009

Banc of America Funding Trust, Series 2014-R7, Cl. 3A1, 3.003%, 3/26/36²		213,985		214,354

BCAP LLC Trust, Series 2011-R11, Cl. 18A5, 2.69%, 9/26/35^1,2		98,535		98,476

Capital Lease Funding Securitization LP, Interest-Only Commercial Mtg. Pass-Through Certificates, Series 1997-CTL1, Cl. IO, 0.00%, 6/22/24^1,3,4		299,643		8,866

CD Commercial Mortgage Trust, Series 2016-CD2, Cl. AM, 3.668%, 11/10/49²		150,000		153,846

Chase Mortgage Finance Trust, Series 2005- A2, Cl. 1A3, 2.966%, 1/25/36²		124,900		118,197

Citigroup Global Markets Mortgage Securities VII, Inc., Interest-Only Stripped Mtg.-Backed Security, Series 1999-C1, Cl. X, 0.00%, 5/18/32^3,4		653,277		698

COMM Mortgage Trust:
Series 2013-CR6,Cl. AM, 3.147%, 3/10/46¹		245,000		244,997
Series 2013-CR7,Cl. D, 4.354%, 3/10/46^1,2		390,000		355,024
Series 2014-CR21,Cl. AM, 3.987%, 12/10/47		715,000		740,393
Series 2014-LC15,Cl. AM, 4.198%, 4/10/47		85,000		89,386
Series 2014-UBS6,Cl. AM, 4.048%, 12/10/47		475,000		487,029

9 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Commercial (Continued)

COMM Mortgage Trust: (Continued)
Series 2015-CR23,Cl. AM, 3.801%, 5/10/48	$	280,000	$	285,599

COMM Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 2012-CR5, Cl. XA, 0.00%, 12/10/45^3,4		2,484,924		166,314

CSMC, Series 2006-6, Cl. 1A4, 6%, 7/25/36		192,306		144,262

Deutsche Bank Commercial Mortgage Trust, Series 2016-C1, Cl. AM, 3.539%, 5/10/49		140,000		141,334

First Horizon Alternative Mortgage Securities Trust:
Series 2004-FA2,Cl. 3A1, 6.00%, 1/25/35		124,810		114,817
Series 2005-FA8,Cl. 1A6, 1.406%, 11/25/35²		157,197		105,754

FREMF Mortgage Trust:
Series 2013-K25,Cl. C, 3.743%, 11/25/45^1,2		90,000		86,493
Series 2013-K26,Cl. C, 3.599%, 12/25/45^1,2		60,000		56,944
Series 2013-K27,Cl. C, 3.616%, 1/25/46^1,2		95,000		90,821
Series 2013-K28,Cl. C, 3.494%, 6/25/46^1,2		285,000		270,168
Series 2013-K502,Cl. C, 3.077%, 3/25/45^1,2		175,000		175,286
Series 2013-K712,Cl. C, 3.365%, 5/25/45^1,2		75,000		75,076
Series 2013-K713,Cl. C, 3.165%, 4/25/46^1,2		115,000		112,892
Series 2014-K715,Cl. C, 4.126%, 2/25/46^1,2		50,000		49,354

GSMSC Pass-Through Trust, Series 2009-3R, Cl. 1A2, 6%, 4/25/37^1,2		356,487		337,192

GSR Mortgage Loan Trust, Series 2005-AR4, Cl. 6A1, 3.209%, 7/25/35²		94,065		92,781

JP Morgan Chase Commercial Mortgage Securities Trust:
Series 2013-C10,Cl. AS, 3.372%, 12/15/47		315,000		319,792
Series 2013-C16,Cl. AS, 4.517%, 12/15/46		300,000		323,337
Series 2013-LC11,Cl. AS, 3.216%, 4/15/46		40,000		40,175
Series 2014-C20,Cl. AS, 4.043%, 7/15/47		205,000		214,166

JP Morgan Mortgage Trust, Series 2007-A1, Cl. 5A1, 3.178%, 7/25/35²		98,477		98,714

JP Morgan Resecuritization Trust, Series 2009-5, Cl. 1A2, 3.08%, 7/26/36^1,2		330,993		299,895

JPMBB Commercial Mortgage Securities Trust:
Series 2014-C19,Cl. AS, 4.243%, 4/15/47²		130,000		137,719
Series 2014-C25,Cl. AS, 4.065%, 11/15/47		490,000		512,804
Series 2014-C26,Cl. AS, 3.80%, 1/15/48		155,000		159,382

JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Cl. AS, 3.385%, 12/15/49		230,000		229,075

LB Commercial Conduit Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 1998-C1, Cl. IO, 0.00%, 2/18/30^3,4		265,261		8

Lehman Structured Securities Corp., Series 2002-GE1, Cl. A, 0%, 7/26/24^1,2		44,930		36,539

Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C9,Cl. AS, 3.456%, 5/15/46		225,000		227,642
Series 2014-C19,Cl. AS, 3.832%, 12/15/47		595,000		610,301
Series 2016-C30,Cl. AS, 3.175%, 9/15/49		375,000		362,737

Morgan Stanley Re-Remic Trust, Series 2012-R3, Cl. 1B, 2.615%, 11/26/36^1,2		450,542		345,704


	Principal Amount		Value

Commercial (Continued)

Morgan Stanley Resecuritization Trust, Series 2013-R9, Cl. 3A, 2.756%, 6/26/46^1,2	$	214,505	$	214,331

RBSSP Resecuritization Trust, Series 2010-1, Cl. 2A1, 2.625%, 7/26/45^1,2		22,832		22,846

Structured Agency Credit Risk Debt Nts.:
Series 2013-DN1,Cl. M1, 4.156%, 7/25/23²		211,012		214,246
Series 2014-DN1,Cl. M1, 1.756%, 2/25/24²		17,372		17,379
Series 2014-HQ2,Cl. M1, 2.206%, 9/25/24²		44,467		44,632
Series 2015-DNA3,Cl. M1, 2.106%, 4/25/28²		14,509		14,516
Series 2015-HQA2,Cl. M2, 3.556%, 5/25/28²		95,000		97,551
Series 2016-DNA2,Cl. M1, 2.006%, 10/25/28²		255,411		255,748
Series 2016-DNA3,Cl. M1, 1.856%, 12/25/28²		259,792		260,410
Series 2016-DNA4,Cl. M1, 1.556%, 3/25/29²		171,308		171,276
Series 2016-HQA2,Cl. M1, 1.956%, 11/25/28²		179,344		179,559
Series 2016-HQA3,Cl. M1, 1.556%, 3/25/29²		220,885		221,149
Series 2016-HQA4,Cl. M1, 1.556%, 4/25/29²		380,028		379,572

Wells Fargo Commercial Mortgage Trust:
Series 2015-C29,Cl. AS, 4.013%, 6/15/48²		240,000		246,531
Series 2016-C37,Cl. AS, 4.018%, 12/15/49		355,000		366,702

WF-RBS Commercial Mortgage Trust:
Series 2012-C7,Cl. E, 4.835%, 6/15/45^1,2		120,000		113,046
Series 2013-C14,Cl. AS, 3.488%, 6/15/46		150,000		152,947
Series 2014-C20,Cl. AS, 4.176%, 5/15/47		130,000		137,072
Series 2014-LC14,Cl. AS, 4.351%, 3/15/47²		145,000		154,097

				12,003,962


Residential—3.9%

Banc of America Funding Trust:
Series 2007-1,Cl. 1A3, 6.00%, 1/25/37		122,268		109,121
Series 2007-C,Cl. 1A4, 3.096%, 5/20/36²		55,874		50,540

Banc of America Mortgage Trust, Series 2007-1, Cl. 1A24, 6%, 3/25/37		84,452		77,016

Bear Stearns ARM Trust:
Series 2005-2,Cl. A1, 2.92%, 3/25/35²		170,309		171,555
Series 2005-9,Cl. A1, 2.83%, 10/25/35²		170,106		164,783
Series 2006-1,Cl. A1, 2.91%, 2/25/36²		219,586		218,359

Carrington Mortgage Loan Trust, Series 2006-FRE1, Cl. A2, 0.866%, 7/25/36²		5,310		5,311

CHL Mortgage Pass-Through Trust:
Series 2005-17,Cl. 1A8, 5.50%, 9/25/35		18,137		18,085
Series 2005-26,Cl. 1A8, 5.50%, 11/25/35		100,082		93,165
Series 2005-J4,Cl. A7, 5.50%, 11/25/35		13,649		13,449

Citigroup Mortgage Loan Trust, Inc., Series 2006-AR1, Cl. 1A1, 2.87%, 10/25/35²		459,531		458,718

Connecticut Avenue Securities:
Series 2014-C01,Cl. M1, 2.356%, 1/25/24²		25,108		25,244
Series 2014-C02,Cl. 2M1, 1.706%, 5/25/24²		103,767		103,923
Series 2014-C03,Cl. 1M1, 1.956%, 7/25/24²		330,226		331,120

10 OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Residential (Continued)

Connecticut Avenue Securities: (Continued)
Series 2014-C03,Cl. 2M1, 1.956%, 7/25/24²	$	137,834	$	137,986
Series 2014-C04,Cl. 2M1, 2.856%, 11/25/24²		2,632		2,634
Series 2015-C02,Cl. 1M1, 1.906%, 5/25/25²		13,094		13,096
Series 2015-C03,Cl. 1M1, 2.256%, 7/25/25²		96,020		96,205
Series 2015-C03,Cl. 2M1, 2.256%, 7/25/25²		27,458		27,515
Series 2016-C02,Cl. 1M1, 2.906%, 9/25/28²		37,885		38,287
Series 2016-C03,Cl. 1M1, 2.756%, 10/25/28²		9,647		9,780
Series 2016-C03,Cl. 2M1, 2.956%, 10/25/28²		128,355		129,710
Series 2016-C06,Cl. 1M1, 2.056%, 4/25/29²		341,735		342,536
Series 2016-C07,Cl. 2M1, 2.056%, 4/25/29²		195,000		195,243

HomeBanc Mortgage Trust, Series 2005-3, Cl. A2, 1.066%, 7/25/35²		42,097		41,472

MASTR Asset Backed Securities Trust, Series 2006-WMC3, Cl. A3, 0.856%, 8/25/36²		49,883		23,489

RALI Trust:
Series 2006-QS13,Cl. 1A8, 6.00%, 9/25/36		879		719
Series 2007-QS6,Cl. A28, 5.75%, 4/25/37		11,013		9,250

WaMu Mortgage Pass-Through Certificates Trust:
Series 2003-AR10,Cl. A7, 2.825%, 10/25/33²		108,058		110,341
Series 2005-AR14,Cl. 1A4, 2.792%,
12/25/35²		216,311		209,478
Series 2005-AR16,Cl. 1A1, 2.85%, 12/25/35²		93,949		88,499

Wells Fargo Mortgage-Backed Securities Trust:
Series 2005-AR10,Cl. 1A1, 3.022%, 6/25/35²		401,117		417,260
Series 2005-AR13,Cl. 1A5, 3.058%, 5/25/35²		86,253		86,503
Series 2005-AR15,Cl. 1A2, 2.983%, 9/25/35²		116,773		113,642
Series 2005-AR15,Cl. 1A6, 2.983%, 9/25/35²		46,050		43,799
Series 2005-AR4,Cl. 2A2, 3.067%, 4/25/35²		276,079		276,380
Series 2006-AR10,Cl. 1A1, 3.027%, 7/25/36²		72,311		69,627
Series 2006-AR10,Cl. 5A5, 3.08%, 7/25/36²		212,220		209,173
Series 2006-AR14,Cl. 1A2, 3.062%, 10/25/36²		108,643		101,750
Series 2006-AR2,Cl. 2A3, 3.003%, 3/25/36²		94,086		92,533
Series 2006-AR7,Cl. 2A4, 3.089%, 5/25/36²		7,075		6,752
Series 2006-AR8,Cl. 2A1, 3.083%, 4/25/36²		237,122		233,896
Series 2006-AR8,Cl. 2A4, 3.083%, 4/25/36²		103,794		102,382
Series 2007-16,Cl. 1A1, 6.00%, 12/28/37		92,092		95,735
Series 2007-AR3,Cl. A4, 5.949%, 4/25/37²		51,932		48,242


	Principal Amount		Value

Residential (Continued)

Wells Fargo Mortgage-Backed Securities Trust: (Continued)
Series 2007-AR8,Cl. A1, 3.15%, 11/25/37²	$	159,569	$	143,142

				5,357,445

Total Mortgage-Backed Obligations (Cost $60,192,043)				58,684,904


U.S. Government Obligations—1.6%

Federal Home Loan Bank Nts., 1.375%, 11/15/19		97,000		96,606

Federal National Mortgage Assn. Nts.:
1.00%, 10/24/19		157,000		154,814
1.875%, 9/24/26		503,000		462,076

United States Treasury Nts., 1.50%, 5/31/19⁷		1,438,000		1,444,368

Total U.S. Government Obligations (Cost $2,195,955)				2,157,864


Corporate Bonds and Notes—46.2%

Consumer Discretionary—8.1%

Auto Components—0.1%

BorgWarner, Inc., 4.375% Sr. Unsec. Nts., 3/15/45		109,000		104,978


Automobiles—2.1%

Daimler Finance North America LLC, 8.50% Sr. Unsec. Unsub. Nts., 1/18/31		172,000		258,979

Ford Motor Credit Co. LLC, 3.664% Sr. Unsec. Nts., 9/8/24		759,000		740,930

General Motors Co., 6.25% Sr. Unsec. Nts., 10/2/43		303,000		335,533

General Motors Financial Co., Inc., 3% Sr. Unsec. Nts., 9/25/17		344,000		347,342

Harley-Davidson, Inc., 4.625% Sr. Unsec. Nts., 7/28/45		93,000		91,904

Hyundai Capital America, 2.40% Sr. Unsec. Nts., 10/30/18¹		348,000		349,477

Nissan Motor Acceptance Corp.:
1.55% Sr. Unsec. Nts., 9/13/19¹		86,000		84,697
2.00% Sr. Unsec. Nts., 3/8/19¹		251,000		250,431

ZF North America Capital, Inc., 4.75% Sr. Unsec. Nts., 4/29/25¹		338,000		345,183

				2,804,476


Diversified Consumer Services—0.2%

Service Corp. International, 5.375% Sr. Unsec. Nts., 5/15/24		311,000		325,773


Hotels, Restaurants & Leisure—0.5%

Marriott International, Inc.:
3.25% Sr. Unsec. Nts., 9/15/22		148,000		149,266
6.375% Sr. Unsec. Nts., 6/15/17		314,000		320,845

McDonald’s Corp., 2.75% Sr. Unsec. Nts., 12/9/20		153,000		155,402

				625,513


Household Durables—1.2%

Lennar Corp., 4.75% Sr. Unsec. Nts., 5/30/25		344,000		337,120

Newell Brands, Inc.:
5.00% Sr. Unsec. Nts., 11/15/23		346,000		371,128
5.50% Sr. Unsec. Nts., 4/1/46		81,000		93,027

PulteGroup, Inc., 5% Sr. Unsec. Nts., 1/15/27		359,000		342,396

Toll Brothers Finance Corp., 4.375% Sr. Unsec. Nts., 4/15/23		352,000		352,440

Whirlpool Corp.:
1.35% Sr. Unsec. Nts., 3/1/17		104,000		104,024
1.65% Sr. Unsec. Nts., 11/1/17		85,000		85,134

				1,685,269

11 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Leisure Equipment & Products—0.3%

Mattel, Inc., 1.70% Sr. Unsec. Nts., 3/15/18	$	371,000	$	370,228


Media—1.9%

21st Century Fox America, Inc., 4.75% Sr. Unsec. Nts., 11/15/46¹		142,000		142,707

Charter Communications Operating LLC/Charter Communications Operating Capital:
4.464% Sr. Sec. Nts., 7/23/22		154,000		160,962
6.484% Sr. Sec. Nts., 10/23/45		230,000		266,365

Comcast Cable Communications Holdings, Inc., 9.455% Sr. Unsec. Nts., 11/15/22		242,000		327,448

Comcast Corp., 2.35% Sr. Unsec. Nts., 1/15/27		159,000		146,913

Historic TW, Inc., 9.15% Debs., 2/1/23		96,000		123,136

Interpublic Group of Cos., Inc. (The), 4.20% Sr. Unsec. Nts., 4/15/24		113,000		116,156

Sky plc:
3.75% Sr. Unsec. Nts., 9/16/24¹		162,000		162,587
6.10% Sr. Unsec. Nts., 2/15/18¹		116,000		121,051

Thomson Reuters Corp., 1.65% Sr. Unsec. Nts., 9/29/17		366,000		366,461

Time Warner Cable LLC, 4.50% Sr. Unsec. Unsub. Nts., 9/15/42		126,000		114,322

Time Warner, Inc., 2.95% Sr. Unsec. Nts., 7/15/26		168,000		156,582

Viacom, Inc.:
2.25% Sr. Unsec. Nts., 2/4/22		70,000		65,793
3.45% Sr. Unsec. Nts., 10/4/26		84,000		77,675
4.375% Sr. Unsec. Nts., 3/15/43		107,000		85,383

Virgin Media Secured Finance plc, 5.25% Sr. Sec. Nts., 1/15/26¹		227,000		225,014

				2,658,555


Multiline Retail—0.3%

Dollar Tree, Inc., 5.75% Sr. Sec. Nts., 3/1/23		325,000		345,741


Specialty Retail—1.0%

AutoZone, Inc.:
1.30% Sr. Unsec. Nts., 1/13/17		59,000		59,002
1.625% Sr. Unsec. Nts., 4/21/19		64,000		63,436

Best Buy Co., Inc., 5.50% Sr. Unsec. Nts., 3/15/21		212,000		232,984

L Brands, Inc., 5.625% Sr. Unsec. Nts., 2/15/22		120,000		128,250

Lowe’s Cos., Inc., 3.70% Sr. Unsec. Nts., 4/15/46		152,000		141,947

Ross Stores, Inc., 3.375% Sr. Unsec. Nts., 9/15/24		355,000		357,634

Sally Holdings LLC/Sally Capital, Inc., 5.625% Sr. Unsec. Nts., 12/1/25		330,000		344,850

Signet UK Finance plc, 4.70% Sr. Unsec. Nts., 6/15/24		101,000		96,832

				1,424,935


Textiles, Apparel & Luxury Goods—0.5%

Hanesbrands, Inc., 4.875% Sr. Unsec. Nts., 5/15/26¹		239,000		234,817

Levi Strauss & Co., 5% Sr. Unsec. Nts., 5/1/25		302,000		303,510

PVH Corp., 4.50% Sr. Unsec. Unsub. Nts., 12/15/22		154,000		157,080

				695,407


Consumer Staples—5.5%

Beverages—1.7%

Anheuser-Busch InBev Finance, Inc.:
1.90% Sr. Unsec. Nts., 2/1/19		408,000		408,701
3.65% Sr. Unsec. Nts., 2/1/26		85,000		86,320


	Principal Amount		Value

Beverages (Continued)

Anheuser-Busch InBev Finance, Inc.: (Continued)
4.90% Sr. Unsec. Nts., 2/1/46	$	82,000	$	88,394

Anheuser-Busch InBev Worldwide, Inc., 8.20% Sr. Unsec. Unsub. Nts., 1/15/39		230,000		346,431

Constellation Brands, Inc., 4.75% Sr. Unsec. Nts., 11/15/24		330,000		351,945

Molson Coors Brewing Co.:
2.10% Sr. Unsec. Nts., 7/15/21		309,000		300,985
4.20% Sr. Unsec. Nts., 7/15/46		82,000		76,608

Pernod Ricard SA:
2.95% Sr. Unsec. Nts., 1/15/17¹		357,000		357,195
4.25% Sr. Unsec. Nts., 7/15/22¹		252,000		263,729

				2,280,308


Food & Staples Retailing—1.3%

CVS Health Corp., 2.875% Sr. Unsec. Nts., 6/1/26		348,000		331,884

Koninklijke Ahold Delhaize NV, 6.50% Sr. Unsec. Nts., 6/15/17		224,000		228,881

Kroger Co. (The):
2.00% Sr. Unsec. Nts., 1/15/19		15,000		15,038
6.40% Sr. Unsec. Nts., 8/15/17		330,000		339,845
6.90% Sr. Unsec. Nts., 4/15/38		90,000		115,257

Walgreens Boots Alliance, Inc.:
1.75% Sr. Unsec. Nts., 5/30/18		240,000		240,286
3.10% Sr. Unsec. Nts., 6/1/23		385,000		382,583

Wal-Mart Stores, Inc., 4.30% Sr. Unsec. Nts., 4/22/44		183,000		193,196

				1,846,970


Food Products—1.9%

Bunge Ltd. Finance Corp.:
3.20% Sr. Unsec. Nts., 6/15/17		140,000		141,066
3.25% Sr. Unsec. Nts., 8/15/26		216,000		207,533
8.50% Sr. Unsec. Nts., 6/15/19		289,000		331,333

Ingredion, Inc., 1.80% Sr. Unsec. Nts., 9/25/17		374,000		374,521

JM Smucker Co. (The), 1.75% Sr. Unsec. Nts., 3/15/18		288,000		288,423

Kraft Heinz Foods Co.:
2.80% Sr. Unsec. Nts., 7/2/20		321,000		324,088
4.375% Sr. Unsec. Nts., 6/1/46		195,000		183,862

Lamb Weston Holdings, Inc., 4.875% Sr. Unsec. Nts., 11/1/26¹		184,000		182,505

Mondelez International Holdings Netherlands BV, 1.625% Sr. Unsec. Nts., 10/28/19¹		353,000		346,111

TreeHouse Foods, Inc., 6% Sr. Unsec. Nts., 2/15/24¹		170,000		178,925

				2,558,367


Tobacco—0.6%

Altria Group, Inc., 3.875% Sr. Unsec. Nts., 9/16/46		216,000		199,772

Imperial Brands Finance plc, 2.05% Sr. Unsec. Nts., 7/20/18¹		357,000		356,995

Reynolds American, Inc., 5.85% Sr. Unsec. Nts., 8/15/45		279,000		330,991

				887,758


Energy—4.0%

Energy Equipment & Services—0.9%

Halliburton Co., 5% Sr. Unsec. Nts., 11/15/45		92,000		99,972

Helmerich & Payne International Drilling Co., 4.65% Sr. Unsec. Nts., 3/15/25		146,000		150,925

Schlumberger Holdings Corp.:
1.90% Sr. Unsec. Nts., 12/21/17¹		334,000		335,305
4.00% Sr. Unsec. Nts., 12/21/25¹		194,000		203,261

12 OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Energy Equipment & Services (Continued)

Sinopec Group Overseas Development 2014 Ltd., 1.75% Sr. Unsec. Nts., 4/10/17¹	$	369,000	$	368,990

				1,158,453


Oil, Gas & Consumable Fuels—3.1%

Anadarko Petroleum Corp.:
4.50% Sr. Unsec. Nts., 7/15/44		64,000		60,247
6.20% Sr. Unsec. Nts., 3/15/40		64,000		73,418

Apache Corp., 4.75% Sr. Unsec. Nts., 4/15/43		107,000		110,421

Boardwalk Pipelines LP, 4.95% Sr. Unsec. Nts., 12/15/24		176,000		180,789

BP Capital Markets plc, 1.676% Sr. Unsec. Nts., 5/3/19		328,000		325,709

Buckeye Partners LP, 3.95% Sr. Unsec. Nts., 12/1/26		85,000		82,969

Chevron Corp., 1.561% Sr. Unsec. Nts., 5/16/19		352,000		350,742

CNOOC Nexen Finance 2014 ULC, 1.625% Sr. Unsec. Nts., 4/30/17		373,000		372,780

Columbia Pipeline Group, Inc., 4.50% Sr. Unsec. Nts., 6/1/25		168,000		176,577

ConocoPhillips Co.:
4.95% Sr. Unsec. Nts., 3/15/26		42,000		46,391
5.95% Sr. Unsec. Nts., 3/15/46		89,000		110,344

Devon Energy Corp., 4.75% Sr. Unsec. Nts., 5/15/42		106,000		100,318

EnLink Midstream Partners LP, 4.85% Sr. Unsec. Nts., 7/15/26		87,000		87,804

Enterprise Products Operating LLC:
4.85% Sr. Unsec. Nts., 8/15/42		105,000		105,174
4.90% Sr. Unsec. Nts., 5/15/46		37,000		38,055

EQT Midstream Partners LP, 4.125% Sr. Unsec. Nts., 12/1/26		202,000		197,005

Kinder Morgan, Inc., 5.55% Sr. Unsec. Nts., 6/1/45		276,000		290,818

Noble Energy, Inc., 5.05% Sr. Unsec. Nts., 11/15/44		92,000		92,443

ONEOK Partners LP, 4.90% Sr. Unsec. Nts., 3/15/25		156,000		167,403

Phillips 66 Partners LP, 3.605% Sr. Unsec. Nts., 2/15/25		303,000		296,888

Regency Energy Partners LP/Regency Energy Finance Corp., 5% Sr. Unsec. Nts., 10/1/22		235,000		249,073

Shell International Finance BV:
1.375% Sr. Unsec. Nts., 5/10/19		264,000		261,367
4.00% Sr. Unsec. Nts., 5/10/46		130,000		124,368

Tesoro Logistics LP, 5.25% Sr. Unsec. Nts., 1/15/25		59,000		60,475

TransCanada PipeLines Ltd., 1.625% Sr. Unsec. Nts., 11/9/17		324,000		323,783

				4,285,361


Financials—10.3%

Capital Markets—2.2%

Apollo Management Holdings LP, 4% Sr. Unsec. Nts., 5/30/24¹		258,000		255,757

Bank of New York Mellon Corp. (The), 3% Sub. Nts., 10/30/28		146,000		138,777

Brookfield Asset Management, Inc., 4% Sr. Unsec. Nts., 1/15/25		332,000		325,802

Credit Suisse AG (New York), 3.625% Sr. Unsec. Nts., 9/9/24		199,000		200,286

Credit Suisse Group Funding Guernsey Ltd., 4.55% Sr. Unsec. Nts., 4/17/26		130,000		135,084

Deutsche Bank AG (London), 6% Sr. Unsec. Nts., 9/1/17		173,000		177,114


	Principal Amount		Value

Capital Markets (Continued)

E*TRADE Financial Corp., 5.875% Jr. Sub. Perpetual Bonds^2,8	$	358,000	$	356,836

Goldman Sachs Group, Inc. (The):
3.50% Sr. Unsec. Nts., 11/16/26		208,000		204,156
3.75% Sr. Unsec. Nts., 2/25/26		202,000		202,696

Morgan Stanley, 5% Sub. Nts., 11/24/25		315,000		336,674

Raymond James Financial, Inc., 3.625% Sr. Unsec. Nts., 9/15/26		202,000		197,102

S&P Global, Inc., 2.50% Sr. Unsec. Nts., 8/15/18		226,000		227,937

UBS Group Funding Jersey Ltd., 4.125% Sr. Unsec. Nts., 4/15/26¹		205,000		209,767

				2,967,988


Commercial Banks—4.6%

Bank of America Corp.:
3.248% Sr. Unsec. Nts., 10/21/27		294,000		280,852
7.75% Jr. Sub. Nts., 5/14/38		236,000		325,417

BB&T Corp., 2.05% Sr. Unsec. Nts., 5/10/21		360,000		353,228

BPCE SA:
2.65% Sr. Unsec. Nts., 2/3/21		321,000		320,973
3.375% Sr. Unsec. Nts., 12/2/26		140,000		137,246

Citizens Bank NA (Providence RI), 2.55% Sr. Unsec. Nts., 5/13/21		281,000		279,316

Danske Bank AS, 2.80% Sr. Unsec. Nts., 3/10/21¹		202,000		203,382

Fifth Third Bank (Cincinnati OH), 3.85% Sub. Nts., 3/15/26		206,000		207,409

First Republic Bank, 4.375% Sub. Nts., 8/1/46		150,000		136,593

FirstMerit Bank NA (Akron OH), 4.27% Sub. Nts., 11/25/26		362,000		367,624

HSBC Holdings plc, 2.65% Sr. Unsec. Nts., 1/5/22		294,000		287,595

Huntington Bancshares, Inc., 3.15% Sr. Unsec. Nts., 3/14/21		218,000		221,104

ING Bank NV, 2.75% Sr. Unsec. Nts., 3/22/21¹		270,000		271,089

JPMorgan Chase & Co.:
2.295% Sr. Unsec. Nts., 8/15/21		79,000		77,515
2.70% Sr. Unsec. Nts., 5/18/23		152,000		148,679

KeyBank NA (Cleveland OH), 3.40% Sub. Nts., 5/20/26		302,000		293,758

Lloyds Banking Group plc, 6.657% Jr. Sub. Perpetual Bonds^1,2,8		334,000		360,720

PNC Bank NA, 2.55% Sr. Unsec. Nts., 12/9/21		149,000		149,082

Regions Bank (Birmingham AL), 2.25% Sr. Unsec. Nts., 9/14/18		287,000		288,005

Royal Bank of Scotland Group plc, 7.64% Jr. Sub. Perpetual Bonds^2,8		359,000		334,767

Skandinaviska Enskilda Banken AB, 2.625% Sr. Unsec. Nts., 3/15/21		202,000		202,152

Standard Chartered plc, 6.409% Jr. Sub. Perpetual Bonds^1,2,8		400,000		307,000

SunTrust Bank (Atlanta GA), 3.30% Sub. Nts., 5/15/26		151,000		145,823

Swedbank AB, 2.65% Sr. Unsec. Nts., 3/10/21¹		216,000		216,265

US Bancorp, 3.10% Sub. Nts., 4/27/26		214,000		208,287

Wells Fargo & Co., 4.75% Sub. Nts., 12/7/46		208,000		210,448

				6,334,329


Consumer Finance—0.9%

Ally Financial, Inc., 4.25% Sr. Unsec. Nts., 4/15/21		346,000		350,109

Capital One Financial Corp., 3.20% Sr. Unsec. Nts., 2/5/25		277,000		268,606

13 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Consumer Finance (Continued)

Discover Financial Services:
3.75% Sr. Unsec. Nts., 3/4/25	$	186,000	$	181,930
3.95% Sr. Unsec. Nts., 11/6/24		280,000		277,622

Synchrony Financial, 4.50% Sr. Unsec. Nts., 7/23/25		97,000		99,681

				1,177,948


Diversified Financial Services—0.4%

Berkshire Hathaway Energy Co., 2% Sr. Unsec. Nts., 11/15/18		102,000		102,465

Peachtree Corners Funding Trust, 3.976% Sr. Unsec. Nts., 2/15/25¹		189,000		184,495

Voya Financial, Inc., 5.65% Jr. Sub. Nts., 5/15/53²		345,000		340,256

				627,216


Equity Real Estate Investment Trusts (REITs)—0.9%

American Tower Corp.:
5.05% Sr. Unsec. Unsub. Nts., 9/1/20		149,000		159,913
5.90% Sr. Unsec. Nts., 11/1/21		200,000		223,981

HCP, Inc., 5.625% Sr. Unsec. Nts., 5/1/17		107,000		108,429

Highwoods Realty LP, 5.85% Sr. Unsec. Nts., 3/15/17		149,000		150,267

Ventas Realty LP, 1.25% Sr. Unsec. Nts., 4/17/17		151,000		150,939

WEA Finance LLC/Westfield UK & Europe Finance plc, 1.75% Sr. Unsec. Nts., 9/15/17¹		318,000		318,242

Welltower, Inc., 2.25% Sr. Unsec. Nts., 3/15/18		75,000		75,333

				1,187,104


Insurance—1.3%

Arch Capital Finance LLC, 4.011% Sr. Unsec. Nts., 12/15/26		208,000		210,938

AXIS Specialty Finance plc, 5.15% Sr. Unsec. Nts., 4/1/45		220,000		218,049

Five Corners Funding Trust, 4.419% Unsec. Nts., 11/15/23¹		258,000		272,856

Manulife Financial Corp., 4.15% Sr. Unsec. Nts., 3/4/26		205,000		213,969

MetLife, Inc., 5.25% Jr. Sub. Perpetual Bonds^2,8		258,000		261,870

Principal Financial Group, Inc., 4.30% Sr. Unsec. Nts., 11/15/46		150,000		147,273

TIAA Asset Management Finance Co. LLC, 4.125% Sr. Unsec. Nts., 11/1/24¹		326,000		329,419

XLIT Ltd., 6.50% Jr. Sub. Perpetual Bonds^2,8		212,000		165,890

				1,820,264


Health Care—3.6%

Biotechnology—0.8%

AbbVie, Inc.:
3.60% Sr. Unsec. Nts., 5/14/25		167,000		165,491
4.70% Sr. Unsec. Nts., 5/14/45		54,000		53,084

Biogen, Inc., 5.20% Sr. Unsec. Nts., 9/15/45		100,000		107,587

Celgene Corp.:
3.875% Sr. Unsec. Nts., 8/15/25		162,000		164,397
5.00% Sr. Unsec. Nts., 8/15/45		39,000		40,628

Shire Acquisitions Investments Ireland DAC:
1.90% Sr. Unsec. Nts., 9/23/19		354,000		349,578
3.20% Sr. Unsec. Nts., 9/23/26		272,000		254,346

				1,135,111


Health Care Equipment & Supplies—0.8%

Abbott Laboratories:
2.35% Sr. Unsec. Nts., 11/22/19		349,000		349,481
4.90% Sr. Unsec. Nts., 11/30/46		141,000		144,999


	Principal Amount		Value

Health Care Equipment & Supplies (Continued)

Baxter International, Inc., 2.60% Sr. Unsec. Nts., 8/15/26	$	169,000	$	156,105

Boston Scientific Corp., 3.85% Sr. Unsec. Nts., 5/15/25		260,000		260,636

Stryker Corp., 3.50% Sr. Unsec. Nts., 3/15/26		124,000		125,235

				1,036,456


Health Care Providers & Services—1.1%

Aetna, Inc., 3.20% Sr. Unsec. Nts., 6/15/26		264,000		261,309

Cardinal Health, Inc., 3.50% Sr. Unsec. Nts., 11/15/24		158,000		159,822

Express Scripts Holding Co., 4.50% Sr. Unsec. Nts., 2/25/26		239,000		246,165

Fresenius Medical Care US Finance II, Inc., 5.875% Sr. Unsec. Nts., 1/31/22¹		136,000		149,600

Laboratory Corp. of America Holdings, 3.60% Sr. Unsec. Nts., 2/1/25		454,000		452,224

McKesson Corp., 4.883% Sr. Unsec. Nts., 3/15/44		133,000		135,551

Quest Diagnostics, Inc., 3.45% Sr. Unsec. Nts., 6/1/26		145,000		143,096

				1,547,767


Life Sciences Tools & Services—0.4%

Thermo Fisher Scientific, Inc.:
2.15% Sr. Unsec. Nts., 12/14/18		138,000		138,670
3.00% Sr. Unsec. Nts., 4/15/23		142,000		139,613
4.15% Sr. Unsec. Nts., 2/1/24		121,000		126,051
5.30% Sr. Unsec. Nts., 2/1/44		105,000		117,700

				522,034


Pharmaceuticals—0.5%

Actavis Funding SCS:
3.80% Sr. Unsec. Nts., 3/15/25		220,000		220,363
4.75% Sr. Unsec. Nts., 3/15/45		94,000		92,461

Perrigo Finance Unlimited Co., 4.375% Sr. Unsec. Nts., 3/15/26		92,000		92,141

Teva Pharmaceutical Finance Netherlands III BV, 1.70% Sr. Unsec. Nts., 7/19/19		324,000		318,395

				723,360


Industrials—3.7%

Aerospace & Defense—0.6%

BAE Systems Holdings, Inc., 3.85% Sr. Unsec. Nts., 12/15/25¹		258,000		263,259

L-3 Communications Corp., 3.85% Sr. Unsec. Nts., 12/15/26		89,000		88,516

Lockheed Martin Corp., 3.55% Sr. Unsec. Nts., 1/15/26		168,000		171,734

Northrop Grumman Corp., 4.75% Sr. Unsec. Nts., 6/1/43		180,000		196,493

Textron, Inc., 3.875% Sr. Unsec. Nts., 3/1/25		111,000		111,661

United Technologies Corp., 1.778% Jr. Sub. Nts., 5/4/18²		60,000		60,024

				891,687


Building Products—0.2%

Johnson Controls International plc, 1.40%, 11/2/17		66,000		66,116

Owens Corning, 3.40% Sr. Unsec. Nts., 8/15/26		243,000		230,959

				297,075


Commercial Services & Supplies—0.6%

Pitney Bowes, Inc., 4.625% Sr. Unsec. Nts., 3/15/24		277,000		272,960

Republic Services, Inc.: 2.90% Sr. Unsec. Nts., 7/1/26		175,000		167,856

14 OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Commercial Services & Supplies (Continued)

Republic Services, Inc.: (Continued)
3.80% Sr. Unsec. Nts., 5/15/18	$	294,000	$	302,231

Waste Management, Inc., 4.10% Sr. Unsec. Nts., 3/1/45		85,000		84,298

				827,345


Electrical Equipment—0.3%

Sensata Technologies BV, 4.875% Sr. Unsec. Nts., 10/15/23¹		347,000		356,109


Industrial Conglomerates—0.1%

Roper Technologies, Inc.:
3.80% Sr. Unsec. Nts., 12/15/26		43,000		43,355
3.85% Sr. Unsec. Nts., 12/15/25		170,000		172,173

				215,528


Machinery—0.5%

Fortive Corp., 1.80% Sr. Unsec. Nts., 6/15/19¹		360,000		357,880

Ingersoll-Rand Global Holding Co. Ltd., 4.25% Sr. Unsec. Nts., 6/15/23		130,000		137,545

Wabtec Corp., 3.45% Sr. Unsec. Nts., 11/15/26¹		144,000		138,499

				633,924


Professional Services—0.3%

Experian Finance plc, 2.375% Sr. Unsec. Nts., 6/15/17¹		361,000		362,383


Road & Rail—0.7%

Canadian Pacific Railway Co., 4.80% Sr. Unsec. Nts., 9/15/35		68,000		73,513

CSX Corp., 3.80% Sr. Unsec. Nts., 11/1/46		84,000		78,044

ERAC USA Finance LLC, 6.375% Sr. Unsec. Nts., 10/15/17¹		279,000		289,124

Norfolk Southern Corp., 4.65% Sr. Unsec. Nts., 1/15/46		110,000		117,197

Penske Truck Leasing Co. LP/PTL Finance Corp.:
3.40% Sr. Unsec. Nts., 11/15/26¹		285,000		272,832
3.75% Sr. Unsec. Nts., 5/11/17¹		195,000		196,529

				1,027,239


Trading Companies & Distributors—0.4%

AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.95% Sr. Unsec. Nts., 2/1/22		354,000		357,983

Air Lease Corp., 3% Sr. Unsec. Nts., 9/15/23		148,000		141,446

				499,429


Information Technology—2.5%

Electronic Equipment, Instruments, & Components—0.2%

Flex Ltd., 4.75% Sr. Unsec. Nts., 6/15/25		280,000		296,381


IT Services—0.5%

Broadridge Financial Solutions, Inc., 3.40% Sr. Unsec. Nts., 6/27/26		174,000		168,004

Fidelity National Information Services, Inc., 1.45% Sr. Unsec. Nts., 6/5/17		297,000		297,144

Xerox Corp.:
2.95% Sr. Unsec. Nts., 3/15/17		130,000		130,396
6.75% Sr. Unsec. Nts., 2/1/17		65,000		65,236

				660,780


Semiconductors & Semiconductor Equipment—0.1%

Intel Corp., 4.90% Sr. Unsec. Nts., 7/29/45		93,000		104,080


Software—1.3%

Activision Blizzard, Inc., 2.30% Sr. Unsec. Nts., 9/15/21¹		334,000		325,985

Autodesk, Inc.:
1.95% Sr. Unsec. Nts., 12/15/17		279,000		279,527


	Principal Amount		Value

Software (Continued)

Autodesk, Inc.: (Continued)
4.375% Sr. Unsec. Nts., 6/15/25	$	110,000	$	113,051

Diamond 1 Finance Corp./Diamond 2 Finance Corp.:
3.48% Sr. Sec. Nts., 6/1/19¹		355,000		362,503
6.02% Sr. Sec. Nts., 6/15/26¹		218,000		236,271

Open Text Corp., 5.625% Sr. Unsec. Nts., 1/15/23¹		236,000		247,210

Oracle Corp., 2.40% Sr. Unsec. Nts., 9/15/23		211,000		204,364

				1,768,911


Technology Hardware, Storage & Peripherals—0.4%

Apple, Inc., 4.375% Sr. Unsec. Nts., 5/13/45		198,000		203,496

Hewlett Packard Enterprise Co.:
2.45% Sr. Unsec. Nts., 10/5/17		238,000		239,355
6.35% Sr. Unsec. Nts., 10/15/45		149,000		150,754

				593,605


Materials—3.2%

Chemicals—1.4%

Agrium, Inc.:
3.375% Sr. Unsec. Nts., 3/15/25		151,000		146,335
4.125% Sr. Unsec. Nts., 3/15/35		75,000		68,875

CF Industries, Inc., 4.50% Sr. Sec. Nts., 12/1/26¹		162,000		159,313

Eastman Chemical Co., 4.65% Sr. Unsec. Nts., 10/15/44		92,000		91,418

Ecolab, Inc.:
2.00% Sr. Unsec. Nts., 1/14/19		338,000		338,353
3.70% Sr. Unsec. Nts., 11/1/46		56,000		51,030

PolyOne Corp., 5.25% Sr. Unsec. Nts., 3/15/23		344,000		350,880

RPM International, Inc., 3.45% Sr. Unsec. Unsub. Nts., 11/15/22		285,000		282,657

Valspar Corp. (The):
3.30% Sr. Unsec. Nts., 2/1/25		103,000		98,918
3.95% Sr. Unsec. Nts., 1/15/26		152,000		152,032

Yara International ASA, 3.80% Sr. Unsec. Nts., 6/6/26¹		215,000		210,869

				1,950,680


Construction Materials—0.4%

CRH America, Inc., 5.125% Sr. Unsec. Nts., 5/18/45¹		245,000		255,617

James Hardie International Finance Ltd., 5.875% Sr. Unsec. Nts., 2/15/23¹		161,000		167,440

LafargeHolcim Finance US LLC, 3.50% Sr. Unsec. Nts., 9/22/26¹		85,000		82,660

				505,717


Containers & Packaging—0.5%

Ball Corp., 5.25% Sr. Unsec. Nts., 7/1/25		15,000		15,731

International Paper Co.:
3.00% Sr. Unsec. Nts., 2/15/27		166,000		156,701
4.80% Sr. Unsec. Nts., 6/15/44		153,000		152,257

Packaging Corp. of America:
3.65% Sr. Unsec. Nts., 9/15/24		94,000		94,427
4.50% Sr. Unsec. Nts., 11/1/23		253,000		268,088

				687,204


Metals & Mining—0.7%

BHP Billiton Finance USA Ltd., 1.625% Sr. Unsec. Nts., 2/24/17		352,000		352,272

Glencore Finance Canada Ltd., 3.60% Sr. Unsec. Nts., 1/15/17¹		302,000		302,139

Goldcorp, Inc., 5.45% Sr. Unsec. Nts., 6/9/44		101,000		99,245

15 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Metals & Mining (Continued)

Rio Tinto Finance USA Ltd., 3.75% Sr. Unsec. Nts., 6/15/25	$	143,000	$	147,332

				900,988


Paper & Forest Products—0.2%

Georgia-Pacific LLC, 2.539% Sr. Unsec. Nts., 11/15/19¹		78,000		78,699

Louisiana-Pacific Corp., 4.875% Sr. Unsec. Nts., 9/15/24		186,000		180,885

				259,584


Telecommunication Services—2.1%

Diversified Telecommunication Services—2.1%

AT&T, Inc.:
2.80% Sr. Unsec. Nts., 2/17/21		367,000		364,136
4.35% Sr. Unsec. Nts., 6/15/45		281,000		250,867

British Telecommunications plc, 9.375% Sr. Unsec. Nts., 12/15/30		247,000		377,074

Deutsche Telekom International Finance BV, 2.25% Sr. Unsec. Nts., 3/6/17¹		349,000		349,510

Telefonica Emisiones SAU:
3.192% Sr. Unsec. Nts., 4/27/18		347,000		352,053
7.045% Sr. Unsec. Unsub. Nts., 6/20/36		95,000		110,423

Verizon Communications, Inc.:
1.75% Sr. Unsec. Nts., 8/15/21		247,000		236,985
4.125% Sr. Unsec. Nts., 8/15/46		148,000		134,219
4.50% Sr. Unsec. Nts., 9/15/20		409,000		437,730
4.522% Sr. Unsec. Nts., 9/15/48		186,000		178,727

				2,791,724


Utilities—3.2%

Electric Utilities—2.4%

AEP Texas Central Co., 3.85% Sr. Unsec. Nts., 10/1/25¹		177,000		181,815

Cleco Corporate Holdings LLC, 3.743% Sr. Sec. Nts., 5/1/26¹		176,000		173,423

Duke Energy Corp., 3.75% Sr. Unsec. Nts., 9/1/46		165,000		148,854

Edison International, 2.95% Sr. Unsec. Nts., 3/15/23		208,000		205,844

Enel Finance International NV, 6.25% Sr. Unsec. Nts., 9/15/17¹		333,000		343,257

Exelon Corp., 4.45% Sr. Unsec. Nts., 4/15/46		85,000		83,378

Indiana Michigan Power Co., Series K, 4.55% Sr. Unsec. Nts., 3/15/46		70,000		72,750

ITC Holdings Corp., 5.30% Sr. Unsec. Nts., 7/1/43		90,000		98,630

NextEra Energy Capital Holdings, Inc., 1.586% Sr. Unsec. Nts., 6/1/17		369,000		369,248

Pennsylvania Electric Co., 5.20% Sr. Unsec. Nts., 4/1/20		73,000		78,184

PPL WEM Ltd./Western Power Distribution Ltd., 5.375% Sr. Unsec. Unsub. Nts., 5/1/21¹		444,000		479,147

Public Service Co. of New Mexico, 7.95% Sr. Unsec. Nts., 5/15/18		307,000		331,483

Southern Power Co., 1.95% Sr. Unsec. Nts., 12/15/19		311,000		308,092

Trans-Allegheny Interstate Line Co., 3.85% Sr. Unsec. Nts., 6/1/25¹		213,000		215,877

Xcel Energy, Inc., 3.30% Sr. Unsec. Nts., 6/1/25		167,000		167,131

				3,257,113


Multi-Utilities—0.8%

CenterPoint Energy, Inc., 5.95% Sr. Unsec. Nts., 2/1/17		327,000		328,118

CMS Energy Corp.:
3.875% Sr. Unsec. Nts., 3/1/24		202,000		210,171
5.05% Sr. Unsec. Unsub. Nts., 3/15/22		99,000		108,470


	Principal Amount		Value

Multi-Utilities (Continued)

NiSource Finance Corp., 4.80% Sr. Unsec. Nts., 2/15/44	$	157,000	$	165,606

Public Service Enterprise Group, Inc., 1.60% Sr. Unsec. Nts., 11/15/19		328,000		323,471

				1,135,836

Total Corporate Bonds and Notes (Cost $62,735,844)				63,160,991

Short-Term Notes¹²—16.4%
Road & Rail—0.5%

Paccar Financial Corp., 0.651%, 1/12/17⁹		630,000		629,882

Personal Products—0.5%

Estee Lauder Cos., Inc. (The), 0.651%, 1/19/17⁹		630,000		629,807

Receivables Finance—0.5%

Thunder Bay Funding LLC, 0.852%, 1/25/17⁹		630,000		629,707

Electric Utilities—1.5%

Arizona Public Service Co., 0.75%, 1/3/17		500,000		499,959

Duke Energy Corp., 0.831%, 1/3/17⁹		250,000		249,979

Eversource Energy, 0.721%, 1/3/17⁹		620,000		619,950

Sempra Energy Holdings, 1.071%, 1/23/17⁹		600,000		599,643

				1,969,531

Telephone Utilities—1.1%

Bell Canada, 1.003%, 2/8/17⁹		630,000		629,385

Deutsche Telekom AG, 0.951%, 1/13/17		270,000		269,908

TELUS Corp., 0.952%, 1/30/17⁹		640,000		639,478

				1,538,771

Banks—2.3%

Bank of Tokyo-Mitsubishi UFJ Ltd., 0.952%, 3/27/17¹		610,000		608,630

DNB Bank ASA, 0.952%, 3/28/17⁹		610,000		608,638

Mizuho Bank Ltd. (New York), 0.842%, 2/17/17⁹		620,000		619,362

Sumitomo Mitsui Banking Corp., 0.862%, 2/17/17⁹		620,000		619,411

Toronto Dominion Holding (U.S.A.), Inc., 0.691%, 2/2/17⁹		640,000		639,632

				3,095,673

Leasing & Factoring—2.6%

American Honda Finance Corp., 0.661%, 1/27/17		630,000		629,738

Harley-Davidson Financial Services, Inc., 0.822%, 2/6/17⁹		410,000		409,579

Hitachi Capital America Corp., 1.111%, 1/6/17		500,000		499,925

Hyundai Capital America, 0.931%, 1/5/17⁹		620,000		619,920

Nissan Motor Acceptance Corp., 0.932%, 2/24/17⁹		620,000		619,005

Toyota Motor Credit Corp., 0.741%, 2/7/17⁹		640,000		639,523

				3,417,690

Household Products—0.9%

Church & Dwight Co., Inc., 0.751%, 1/10/17⁹		640,000		639,845

Clorox Co. (The), 0.821%, 1/25/17⁹		620,000		619,593

				1,259,438

Electronic Equipment & Instruments—1.0%

Amphenol Corp., 0.901%, 1/5/17		620,000		619,920

Tyco Electronics, 1%, 1/5/17⁹		610,000		609,922

				1,229,842

Aerospace & Defense—0.4%

Rockwell Collins, Inc., 0.951%, 1/9/17⁹		620,000		619,864

Multiline Retail—0.4%

Dollar General Corp., 1.011%, 1/17/17⁹		620,000		619,710

16 OPPENHEIMER CORE BOND FUND/VA


	Principal Amount		Value

Computers & Peripherals—1.0%

Apple, Inc., 0.711%, 2/27/17⁹	$	610,000	$	609,408

HP, Inc., 1.151%, 1/9/17		270,000		269,965

NetApp, Inc., 1.071%, 1/10/17⁹		505,000		504,878

				1,384,251

Water Utilities—0.5%

American Water Capital Corp., 0.861%, 1/5/17⁹		620,000		619,924

Software—0.4%

Microsoft Corp., 0.832%, 2/27/17⁹		620,000		619,331

Commercial Services & Supplies—0.2%

Equifax, Inc., 0.972%, 2/6/17⁹		270,000		269,723

Chemicals—0.2%

Eastman Chemical Co., 1.081%, 1/10/17⁹		280,000		279,932

Commercial Finance—0.4%

Caterpillar Financial Services Corp., 0.951%, 1/6/17		610,000		609,946

Household Durables—0.8%

Leggett & Platt, Inc., 1.001%, 1/17/17⁹		610,000		609,745

Mohawk Industries, Inc., 1.001%, 1/18/17⁹		610,000		609,727

				1,219,472


	Principal Amount			Value

Food Products—0.4%

General Mills, Inc., 0.85%, 1/17/17⁹	$	610,000		$	609,745

Multi-Utilities—0.6%

DTE Energy Co., 0.90%, 1/3/17		610,000			609,948

Virginia Electric & Power Co., 0.951%, 2/6/17⁹		270,000			269,752

					879,700

Media—0.2%

CBS Corp., 1.001%, 1/30/17⁹		270,000			269,780

Total Short-Term Notes (Cost $22,401,513)					22,401,719

Certificate of Deposit—0.4%

DBS Bank Ltd., 0.841%, 2/6/17 (Cost $619,479)		620,000			619,593
	Shares

Investment Company—2.0%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^10,11(Cost $2,688,938)		2,688,938			2,688,938

Total Investments, at Value (Cost $170,843,644)		124.1	%		169,758,558

Net Other Assets (Liabilities)		(24.1	)		(33,003,675)

Net Assets		100.0	%	$	136,754,883

Footnotes to Statement of Investments

1. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $26,802,070 or 19.60% of the Fund’s net assets at period end.

2. Represents the current interest rate for a variable or increasing rate security.

3. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $1,661,875 or 1.22% of the Fund’s net assets at period end.

4. Interest rate is less than 0.0005%.

5. Principal-Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. The value of these securities generally increases as interest rates decline and prepayment rates rise. The price of these securities is typically more volatile than that of coupon-bearing bonds of the same maturity. Interest rates disclosed represent current yields based upon the current cost basis and estimated timing of future cash flows. These securities amount to $97,947 or 0.07% of the Fund’s net assets at period end.

6. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 4 of the accompanying Notes.

7. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $117,518. See Note 6 of the accompanying Notes.

8. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

9. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $17,783,780 or 13.00% of the Fund’s net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees.

10. Rate shown is the 7-day yield at period end.

11. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		24,144,526		209,288,532		230,744,120		2,688,938
					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	2,688,938	$	56,224

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

12.

Current yield as of period end.

Futures Contracts as of December 31, 2016

Description

Exchange

Buy/Sell

Expiration Date

Number of Contracts

Value

Unrealized

Appreciation
(Depreciation)

United States Treasury Long Bonds

CBT

Sell

3/22/17

3,013,125

34,104

United States Treasury Nts., 10 yr.

CBT

Sell

3/22/17

1,118,531

6,641

United States Treasury Nts., 2 yr.

CBT

Buy

3/31/17

15,818,187

United States Treasury Nts., 5 yr.

CBT

Sell

3/31/17

588,320

962

United States Ultra Bonds

CBT

Buy

3/22/17

10,736,750

(81,760)

(39,991)

17 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF INVESTMENTS Continued


Centrally Cleared Credit Default Swaps at December 31, 2016
Reference Asset	Buy/Sell Protection		Fixed Rate		Maturity Date			Notional Amount (000’s)		Premiums Received/(Paid)			Value

CDX.HY.27		Sell		5.000%		12/20/21	USD		965	$	(59,342	)	$	59,896

CDX.HY.27		Sell		5.000		12/20/21	USD		955		(60,473	)		59,143

Total of Cleared Credit Default Swaps										$	(119,815	)	$	119,039

The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:

Type of Reference Asset on which the Fund Sold Protection

Total Maximum
Potential Payments
for Selling Credit
Protection
(Undiscounted)

Amount Recoverable*

Reference Asset Rating
Range**

Non-Investment Grade Corporate Debt Indexes

$1,920,000

$—

BB-

* The Fund has no amounts recoverable from related purchased protection. In addition, the Fund has no recourse provisions under the credit derivatives and holds no collateral which can offset or reduce potential payments under a triggering event.

** The period end reference asset security ratings, as rated by any rating organization, are included in the equivalent Standard & Poor’s rating category. The reference asset rating represents the likelihood of a potential credit event on the reference asset which would result in a related payment of the Fund.

Glossary:


Definitions
CDX.HY.27		Markit CDX High Yield Index

Exchange Abbreviations
CBT		Chicago Board of Trade

See accompanying Notes to Financial Statements.

18 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $168,154,706)	$	167,069,620
Affiliated companies (cost $2,688,938)		2,688,938

		169,758,558

Cash		559,764

Cash used for collateral on futures		220,000

Centrally cleared swaps, at value (premiums paid $119,815)		119,039

Receivables and other assets:
Investments sold on a when-issued or delayed delivery basis		5,810,776
Interest, dividends and principal paydowns		700,451
Shares of beneficial interest sold		291,684
Variation margin receivable		69,579
Other		38,832

Total assets		177,568,683

Liabilities
Centrally cleared swap collateral due		17,027

Payables and other liabilities:
Investments purchased (including $40,161,628 purchased on a when-issued or delayed delivery basis)		40,492,145
Shares of beneficial interest redeemed		185,191
Trustees’ compensation		30,943
Variation margin payable		19,072
Distribution and service plan fees		11,239
Shareholder communications		9,424
Other		48,759

Total liabilities		40,813,800

Net Assets	$	136,754,883



Composition of Net Assets
Par value of shares of beneficial interest	$	17,915

Additional paid-in capital		213,569,427

Accumulated net investment income		3,115,545

Accumulated net realized loss on investments		(78,822,151)

Net unrealized depreciation on investments		(1,125,853)

Net Assets	$	136,754,883



Net Asset Value Per Share

Non-Service Shares:

Net asset value, redemption price per share and offering price per share (based on net assets of $83,405,076 and 10,869,638 shares of beneficial interest outstanding)		$7.67


Service Shares:

Net asset value, redemption price per share and offering price per share (based on net assets of $53,349,807 and 7,045,841 shares of beneficial interest outstanding)		$7.57

See accompanying Notes to Financial Statements.

19 OPPENHEIMER CORE BOND FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Interest - unaffiliated companies	$	4,393,452

Fee income on when-issued securities		730,168

Dividends - affiliated companies		56,224

Total investment income		5,179,844

Expenses
Management fees		838,714

Distribution and service plan fees - Service shares		131,762

Transfer and shareholder servicing agent fees:
Non-Service shares		87,044
Service shares		52,742

Shareholder communications:
Non-Service shares		21,414
Service shares		12,959

Legal, auditing and other professional fees		85,957

Custodian fees and expenses		48,058

Trustees’ compensation		16,123

Borrowing fees		2,432

Other		8,305

Total expenses		1,305,510
Less reduction to custodian expenses		(260)
Less waivers and reimbursements of expenses		(122,573)

Net expenses		1,182,677

Net Investment Income		3,997,167

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies (including premiums on options exercised)		(2,469,083)
Closing and expiration of futures contracts		(196,844)
Swap contracts		(3,069)
Swaption contracts		34,800

Net realized loss		(2,634,196)

Net change in unrealized appreciation/depreciation on:
Investment transactions		3,085,703
Futures contracts		(84,654)
Swap contracts		(776)

Net change in unrealized appreciation/depreciation		3,000,273

Net Increase in Net Assets Resulting from Operations	$	4,363,244

See accompanying Notes to Financial Statements.

20 OPPENHEIMER CORE BOND FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income	$	3,997,167	$	4,848,365

Net realized loss		(2,634,196)		(345,781)

Net change in unrealized appreciation/depreciation		3,000,273		(3,220,897)

Net increase in net assets resulting from operations		4,363,244		1,281,687

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(3,248,135)		(3,667,301)
Service shares		(1,867,358)		(2,079,404)

		(5,115,493)		(5,746,705)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(1,355,182)		(2,833,378)
Service shares		1,183,323		1,545,644

		(171,859)		(1,287,734)

Net Assets
Total decrease		(924,108)		(5,752,752)

Beginning of period		137,678,991		143,431,743

End of period (including accumulated net investment income of $3,115,545 and $4,110,201, respectively)	$	136,754,883	$	137,678,991

See accompanying Notes to Financial Statements.

21 OPPENHEIMER CORE BOND FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$7.71		$7.96		$7.83		$8.26		$7.88

Income (loss) from investment operations:
Net investment income¹		0.23		0.27		0.30		0.36		0.35
Net realized and unrealized gain (loss)		0.02		(0.19)		0.26		(0.37)		0.44

Total from investment operations		0.25		0.08		0.56		(0.01)		0.79

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.29)		(0.33)		(0.43)		(0.42)		(0.41)

Net asset value, end of period		$7.67		$7.71		$7.96		$7.83		$8.26



Total Return, at Net Asset Value²		3.27%		0.96%		7.27%		(0.10)%		10.29%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$83,405		$85,160		$90,757		$96,785		$116,989

Average net assets (in thousands)		$87,039		$89,919		$94,336		$105,012		$119,547

Ratios to average net assets:³
Net investment income		2.96%		3.46%		3.72%		4.51%		4.34%
Expenses excluding specific expenses listed below		0.84%		0.82%		0.80%		0.80%		0.77%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%

Total expenses⁵		0.84%		0.82%		0.80%		0.80%		0.77%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.75%		0.75%		0.75%		0.75%		0.75%

Portfolio turnover rate⁶		79%		73%		127%		115%		140%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	0.85	%
Year Ended December 31, 2015	0.83	%
Year Ended December 31, 2014	0.81	%
Year Ended December 31, 2013	0.81	%
Year Ended December 31, 2012	0.79	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$672,031,328		$673,808,454
Year Ended December 31, 2015		$697,962,198		$709,720,690
Year Ended December 31, 2014		$560,409,975		$543,669,748
Year Ended December 31, 2013		$776,927,298		$806,883,121
Year Ended December 31, 2012		$930,202,858		$942,406,652

See accompanying Notes to Financial Statements.

22 OPPENHEIMER CORE BOND FUND/VA


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$7.61		$7.86		$7.74		$8.17		$7.79

Income (loss) from investment operations:
Net investment income¹		0.21		0.25		0.27		0.34		0.33
Net realized and unrealized gain (loss)		0.02		(0.19)		0.26		(0.37)		0.44

Total from investment operations		0.23		0.06		0.53		(0.03)		0.77

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.27)		(0.31)		(0.41)		(0.40)		(0.39)

Net asset value, end of period		$7.57		$7.61		$7.86		$7.74		$8.17



Total Return, at Net Asset Value²		3.05%		0.70%		6.93%		(0.38)%		10.17%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$53,350		$52,519		$52,675		$54,946		$64,694

Average net assets (in thousands)		$52,738		$54,016		$55,215		$59,523		$67,116

Ratios to average net assets:³
Net investment income		2.70%		3.21%		3.47%		4.26%		4.07%
Expenses excluding specific expenses listed below		1.09%		1.07%		1.04%		1.05%		1.02%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%

Total expenses⁵		1.09%		1.07%		1.04%		1.05%		1.02%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00%		1.00%		1.00%		1.00%		1.00%

Portfolio turnover rate⁶		79%		73%		127%		115%		140%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.10	%
Year Ended December 31, 2015	1.08	%
Year Ended December 31, 2014	1.05	%
Year Ended December 31, 2013	1.06	%
Year Ended December 31, 2012	1.04	%

6. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$672,031,328		$673,808,454
Year Ended December 31, 2015		$697,962,198		$709,720,690
Year Ended December 31, 2014		$560,409,975		$543,669,748
Year Ended December 31, 2013		$776,927,298		$806,883,121
Year Ended December 31, 2012		$930,202,858		$942,406,652

See accompanying Notes to Financial Statements.

23 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Core Bond Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s main investment objective is to seek total return. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

24 OPPENHEIMER CORE BOND FUND/VA

2. Significant Accounting Policies (Continued)


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3,4,5		Net Unrealized Depreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$3,145,708		$—		$78,811,638		$1,135,589

1. At period end, the Fund had $78,809,859 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

2017	$	75,069,850
No expiration		3,740,009

Total	$	78,809,859

2. The Fund had $1,779 of straddle losses which were deferred.

3. During the reporting period, the Fund did not utilize any capital loss carryforward.

4. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

5. During the reporting period, $5,303,131 of unused capital loss carryforward expired.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


	Increase		Reduction
	to Accumulated		to Accumulated Net
Reduction to Paid-in Capital	Net Investment Income		Realized Loss on Investments

$5,303,131		$123,670		$5,179,461

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	5,115,493	$	5,746,705


Federal tax cost of securities	$	170,894,146
Federal tax cost of other investments		21,954,001

Total federal tax cost	$	192,848,147

Gross unrealized appreciation	$	2,482,083
Gross unrealized depreciation		(3,617,672)

Net unrealized depreciation	$	(1,135,589)

3. Securities Valuation

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation

25 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a “fair valuation” for any security for which market quotations are not “readily available.” The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.
Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the

26 OPPENHEIMER CORE BOND FUND/VA

3. Securities Valuation (Continued)

Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Asset-Backed Securities	$	—	$	20,044,549	$	—	$	20,044,549
Mortgage-Backed Obligations		—		58,425,145		259,759		58,684,904
U.S. Government Obligations		—		2,157,864		—		2,157,864
Corporate Bonds and Notes		—		63,160,991		—		63,160,991
Short-Term Notes		—		22,401,719		—		22,401,719
Certificate of Deposit		—		619,593		—		619,593
Investment Company		2,688,938		—		—		2,688,938

Total Investments, at Value		2,688,938		166,809,861		259,759		169,758,558
Other Financial Instruments:
Futures contracts		41,769		—		—		41,769
Centrally cleared swaps, at value		—		119,039		—		119,039

Total Assets	$	2,730,707	$	166,928,900	$	259,759	$	169,919,366


Liabilities Table
Other Financial Instruments:
Futures contracts	$	(81,760)	$	—	$	—	$	(81,760)

Total Liabilities	$	(81,760)	$	—	$	—	$	(81,760)

The table below shows the transfers between Level 2 and Level 3. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers out of Level 2*		Transfers into Level 3*

Assets Table
Investments, at Value:
Mortgage-Backed Obligations	$	(345,813)	$	345,813

Total Assets	$	(345,813)	$	345,813

*	Transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market activity for this security.

4. Investments and Risks

27 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

4. Investments and Risks (Continued)

included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Affiliated Funds.

At period end, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


		When-Issued or Delayed Delivery Basis Transactions

Purchased securities		$40,161,628
Sold securities		5,810,776

At period end, the Fund pledged $281,240 of collateral to the counterparty for forward roll transactions.

Shareholder Concentration. At period end, three shareholders each owned 20% or more of the Fund’s total outstanding shares.

A shareholder is the related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. A related party owned 25% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

28 OPPENHEIMER CORE BOND FUND/VA

5. Market Risk Factors (Continued)

6. Use of Derivatives

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Futures Contracts

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

During the reporting period, the Fund had an ending monthly average market value of $18,294,393 and $13,531,441 on futures contracts purchased and sold, respectively.

29 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

Option Activity

Options can be traded through an exchange or through a privately negotiated arrangement with a dealer in an OTC transaction. Options traded through an exchange are generally cleared through a clearinghouse (such as The Options Clearing Corporation). The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

During the reporting period, the Fund had an ending monthly average market value of $36,586 and $4,357 on purchased call options and purchased put options, respectively.

At period end, the Fund had no purchased options outstanding.

During the reporting period, the Fund had an ending monthly average market value of $3,504 on written put options. Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

At period end, the Fund had no written options outstanding.

Written option activity for the reporting period was as follows:


	Number of Contracts		Amount of Premiums

Options outstanding as of December 31, 2015		—	$	—
Options written		3,880,856		61,628
Options exercised		(3,880,856)		(61,628)

Options outstanding as of December 31, 2016		—	$	—

Swap Contracts

30 OPPENHEIMER CORE BOND FUND/VA

6. Use of Derivatives (Continued)

into credit default swaps either by buying or selling protection on a corporate issuer, sovereign issuer, or a basket or index of issuers (the “reference asset”).

The ongoing value of the contract will fluctuate throughout the term of the contract based primarily on the credit risk of the reference asset. If the credit quality of the reference asset improves relative to the credit quality at contract initiation, the buyer of protection may have an unrealized loss greater than the anticipated periodic fee owed. This unrealized loss would be the result of current credit protection being cheaper than the cost of credit protection at contract initiation. If the buyer elects to terminate the contract prior to its maturity, and there has been no credit event, this unrealized loss will become realized. If the contract is held to maturity, and there has been no credit event, the realized loss will be equal to the periodic fee paid over the life of the contract.

The Fund has sold credit protection through credit default swaps to increase exposure to the credit risk of individual issuers and/or indexes of issuers that are either unavailable or considered to be less attractive in the bond market. For the reporting period, the Fund had ending monthly average notional amounts of $147,692 on credit default swaps to sell protection. Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Swaption Transactions

During the reporting period, the Fund had an ending monthly average market value of $13,892 and $3,975 on purchased and written swaptions, respectively.

At period end, the Fund had no purchased or written swaptions outstanding.

Written swaption activity for the reporting period was as follows:


	Notional Amount		Amount of Premiums

Swaptions outstanding as of December 31, 2015		—	$	—
Swaptions written		6,517,000		34,800
Swaptions closed or expired		(6,517,000)		(34,800)

Swaptions outstanding as of December 31, 2016		—	$	—

31 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

typically give rise to counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform.

ISDA master agreements include credit related contingent features which allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.

The following table presents the valuations of derivative instruments by risk exposure as reported within the Statement of Assets and Liabilities at period end:

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Credit contracts

Centrally cleared swaps, at value

119,039

Interest rate contracts Variation margin receivable

69,579*

Variation margin payable

19,072*

Total

188,618

19,072

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Statement of Assets and Liabilities upon receipt or payment.

The effect of derivative instruments on the Statement of Operations is as follows:

32 OPPENHEIMER CORE BOND FUND/VA

6. Use of Derivatives (Continued)

Amount of Realized Gain or (Loss) Recognized on Derivatives

Investment

from

unaffiliated

companies

Closing and

Derivatives

(including

expiration

Closing and

Not Accounted

premiums

of swaption

expiration

for as Hedging

on options

contracts

of futures

Instruments

exercised)*

written

contracts

Swap contracts

Total

Credit contracts

(103,816)

34,800

—

(3,069)

(72,085)

Interest rate contracts

107,945

—

(196,844)

—

(88,899)

Total

4,129

34,800

(196,844)

(3,069)

(160,984)

*Includes purchased option contracts, purchased swaption contracts, written option contracts exercised and written swaption contracts exercised, if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives
Not Accounted for as Hedging	Futures
Instruments	contracts			Swap contracts			Total

Credit contracts	$	—		$	(776	)	$	(776)
Interest rate contracts		(84,654	)		—			(84,654)

Total	$	(84,654	)	$	(776	)	$	(85,430)

7. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares		Amount

Non-Service Shares
Sold		1,355,120	$	10,666,396		1,062,552	$	8,456,159
Dividends and/or distributions reinvested		420,198		3,248,135		476,892		3,667,301
Redeemed		(1,952,587)		(15,269,713)		(1,900,400)		(14,956,838)

Net decrease		(177,269)	$	(1,355,182)		(360,956)	$	(2,833,378)



Service Shares
Sold		3,050,438	$	23,656,300		2,849,289	$	22,223,803
Dividends and/or distributions reinvested		244,739		1,867,358		273,246		2,079,404
Redeemed		(3,149,918)		(24,340,335)		(2,925,634)		(22,757,563)

Net increase		145,259	$	1,183,323		196,901	$	1,545,644

8. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities		$86,169,688		$88,981,950
U.S. government and government agency obligations		1,930,998		2,276,341
To Be Announced (TBA) mortgage-related securities		672,031,328		673,808,454

9. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $1 billion		0.60%
Over $1 billion		0.50

The Fund’s effective management fee for the reporting period was 0.60% of average annual net assets before any applicable waivers.

33 OPPENHEIMER CORE BOND FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

9. Fees and Other Transactions with Affiliates (Continued)

by the Manager, not by the Fund.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.75% for Non-Service shares and 1.00% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $68,094 and $41,180 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

10. Borrowings and Other Financing

11. Pending Litigation

34 OPPENHEIMER CORE BOND FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Core Bond Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Core Bond Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

35 OPPENHEIMER CORE BOND FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

36 OPPENHEIMER CORE BOND FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Krishna Memani and Peter Strzalkowski, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other intermediate-term bond funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses were higher than its peer group median and category median. The Board also considered that the Fund’s contractual management fee was higher than its peer group median and its category median. The Board considered that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed that annual rate of 0.75% for Non-Service Shares and 1.00% for Service Shares. This contractual expense limitation may not be amended or withdrawn until one year after the date of the Fund’s prospectus, unless approved by the Board.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was

37 OPPENHEIMER CORE BOND FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
Unaudited / Continued

provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates.

38 OPPENHEIMER CORE BOND FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

39 OPPENHEIMER CORE BOND FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

40 OPPENHEIMER CORE BOND FUND/VA



F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Memani, Strzalkowski, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Krishna Memani, Vice President (since 2009) Year of Birth: 1960		President of the Sub-Adviser (since January 2013); Executive Vice President of the Manager (since January 2014) and Chief Investment Officer of the OppenheimerFunds advisory entities (since January 2014). Chief Investment Officer, Fixed Income of the Sub-Adviser (January 2013-December 2013); Head of the Investment Grade Fixed Income Team of the Sub-Adviser (March 2009-January 2014); Director of Fixed Income of the Sub-Adviser (October 2010-December 2012); Senior Vice President of the Sub-Adviser (March 2009-December 2012) and Senior Vice President of OFI Global Institutional, Inc. (April 2009-December 2012). Managing Director and Head of the U.S. and European Credit Analyst Team at Deutsche Bank Securities (June 2006-January 2009). Chief Credit Strategist at Credit Suisse Securities (August 2002-March 2006). Managing Director and Senior Portfolio Manager at Putnam Investments (September 1998-June 2002). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Peter A. Strzalkowski, Vice President (since 2009) Year of Birth: 1965		Senior Vice President of the Sub-Adviser (since January 2016); Vice President and Senior Portfolio Manager of the Sub-Adviser (August 2007-January 2016) and co-Team Leader for the Sub-Adviser’s Investment Grade Fixed Income Team (since January 2014). A member of the Sub-Adviser’s Investment Grade Fixed Income Team (April 2009-January 2014). Managing Partner and Chief Investment Officer of Vector Capital Management, LLC, a structured products money management firm he founded, (July 2006-August 2007). Senior Portfolio Manager at Highland Capital Management, L.P. (June 2005-July 2006) and a Senior Fixed Income Portfolio Manager at Microsoft Corp. (June 2003-June 2005). Vice President and Senior Fixed Income Portfolio Manager at First Citizens Bank Trust, Capital Management Group (April 2000-June 2003) and a Vice President and Fixed Income Portfolio Manager at Centura Banks (November 1998-April 2000). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

41 OPPENHEIMER CORE BOND FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

42 OPPENHEIMER CORE BOND FUND/VA

THIS PAGE INTENTIONALLY LEFT BLANK.

43 OPPENHEIMER CORE BOND FUND/VA

OPPENHEIMER CORE BOND FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc. DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO




		December 31, 2016
		Oppenheimer
		Global Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds

		ANNUAL REPORT

		Listing of Top Holdings

		Fund Performance Discussion

		Financial Statements

PORTFOLIO MANAGER: Rajeev Bhaman, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year			5-Year			10-Year
Non-Service Shares		11/12/90		0.08	%		10.44	%		4.50	%
Service Shares		7/13/00		-0.16			10.16			4.24
MSCI All Country World Index				7.86			9.36			3.56

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


S&P Global, Inc.	3.1	%
Citigroup, Inc.	3.0
Aetna, Inc.	2.9
Airbus Group SE	2.7
Alphabet, Inc., Cl. C	2.7
Murata Manufacturing Co. Ltd.	2.6
Alphabet, Inc., Cl. A	2.6
LVMH Moet Hennessy Louis Vuitton SE	2.5
SAP SE	2.4
Colgate-Palmolive Co.	2.4

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

REGIONAL ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of investments.

2 OPPENHEIMER GLOBAL FUND/VA

Fund Performance Discussion

During the one-year period ended December 31, 2016, the Fund’s Non-Service shares produced a return of 0.08%, underperforming the MSCI All Country World Index (the “Index”), which returned 7.86%.

Global equity markets were volatile in 2016, and our performance was disappointing. However, virtually all the Fund’s underperformance occurred during the first half of 2016. During that time, the market dislocation that resulted from expectations of the Federal Reserve (the “Fed”) raising rates in 2016 led to a severe underperformance of all things growth related, and outperformance was observed in anything with bond like characteristics. Perceived safety and stability were sought after, as were the major losers of the previous year. Energy and Materials rallied, as did utilities and bond proxies. Our orientation towards long-term growth companies was not the flavor of the market during this time. This was a period where cyclical factors ruled. The political season also impacted some of our companies, particularly in health care, where the posturing over price controls and eagerness of both presidential candidates to demonstrate populist rhetoric hurt the biotechnology sector. We did not help ourselves either by our choice of European financials, which were hit hard during the first half of 2016, as European policy makers seemed not to be able to get out of their own way and exacerbated the crisis in financials that existed for the better part of this decade.

The environment shifted over the third quarter of 2016. Post Brexit, things seemed to shift from the extremes of the first half of the year. Interest rates began to climb and the stock market had a better tone to it. Growth cyclicals, as opposed to mere commodity cyclicals, performed better during this time, especially among the consumer discretionary and information technology sectors. The performance of bond proxies in the consumer staples, telecommunication services, and utilities sectors, which surged in the first half of the year, was muted in the third quarter. Financials bounced back from the Brexit swoon late in the second quarter, despite the controversy created by the U.S. Department of Justice’s decision to fine Deutsche Bank $14 billion over residential mortgage backed securities sales. Higher interest rates support improved net interest margins for most financials and many European financials were nicely up in price over the third quarter of 2016.

During the fourth quarter, markets were largely driven by a turn in expectations. The catalyst was the outcome of the presidential election in the U.S. and a reassessment of electoral dynamics elsewhere. Financials was the best performing sector in the market with the recognition that the reality of the future doesn’t have to be the reality of the last two years. Central banks may not necessarily continue dampening interest rates all around the world and there can be a less draconian approach to regulation. If so, the environment for financial institutions shouldn’t be quite as bad as it has been. This change in expectations over the fourth quarter also benefitted the stock prices of luxury and media companies, some of which we held. It drove many cyclical companies and industries as well, especially in the energy and materials sectors. This was an adverse circumstance for us as we are perennially underweight energy, and the same is generally true for materials. We like certain companies for the technology they have or their access to a very scarce resource. However we don’t believe that we can predict either energy or materials prices consistently, and so will continue to invest relatively little in those sectors. Instead we find more enduring opportunities investing in technology and innovation, and this is reflected in our overweight positions in health care and information technology. These are two sectors that experienced a sell-off in the fourth quarter on the sentiment change as investors rotated into more cyclical areas.

FUND REVIEW

Against this backdrop, the top detractors from our relative performance during the reporting period were in the Financials, Information Technology and Health Care sectors. Over the first half of 2016, our pivot to cheap European financials was met with a hefty smack upside the head. In addition, our investments in the engines of 21st century drug discovery was trampled on by the stampede to the exit door with the murmurs of Fed rate rises and the increased eagerness of politicians to promise free products and services, even life-saving ones, upon which billions of dollars of risk capital have been ventured. Our structural bet against commodities, which helped in 2015, had the opposite impact for much of 2016. Quality and growth orientation seemed to attract opprobrium not salutes. We compounded this with several poor performing investments especially in SunEdison, which stumbled its way towards bankruptcy. We exited our position. We also had disappointing results in Phase III drug trials in two of our Pharma companies: Circassia Pharmaceuticals plc and Celldex Therapeutics. We exited our position in Celldex.

The Fund outperformed the Index in the consumer discretionary sector due to stock selection and the consumer staples sector as a result of an underweight position. Top contributing holdings to performance included LVMH Moet Hennessy Louis Vuitton SE, Keyence Corp. and Kering SA. LVMH Moet Hennessy Louis Vuitton is an iconic global luxury company with 70 brands across fashion and leather goods, watches and jewelry, wines and spirits, perfumes and cosmetics, and selective retailing. The company remains well positioned to benefit from the growing demand for luxury goods, particularly in the emerging markets, where customers are willing to pay premium prices, enabling LVMH to earn above-average margins and deliver returns on invested capital in the low double digits. Keyence develops, produces and sells factory automation solutions, such as image processing equipment, control and measuring equipment, as well as sensors. The company reported strong operating results at the close of April for their fiscal third quarter. Kering is a global consumer and luxury brands company, with

3 OPPENHEIMER GLOBAL FUND/VA

popular names such as Gucci, Bottega Veneta, Yves Saint Laurent and Puma. These brands tend to garner high margins and have timeless appeal even through fashion cycles.

POSITIONING AND OUTLOOK

We are long-term investors in companies that we believe can sustainably monetize their exposure to growth streams within the world economy to provide us, as shareholders, with a meaningfully positive return on our capital. We manage the risk in our portfolio through the diversity of the companies we hold and by limiting the size of individual stock positions. We hold companies in our portfolio for an average of eight to ten years – some we have held even longer – in an effort to reap those capital returns as they compound over time.

Within the market, investor expectations have turned toward the possibility of regulatory change. Regulations often have a myriad of compliance costs, and can stifle innovation as they often advantage established incumbents. So, some of this is clearly positive and some, at least to us, is not.

One area of focus is the information technology sector and the potential for trade policies and tax-related changes imposed by the new administration to negatively affect companies within it. The kinds of businesses that we own are mostly in the area of software and internet-related services. In our opinion, the taxes and tariffs that have been discussed are unlikely to affect them. The underlying demand for their technologies is unchanged and their valuations are reasonable.

Within health care, another area that may experience regulatory change, we are focused on drug innovation. Therefore we own highly innovative platform biotechnology and pharmaceutical companies that we believe are priced at a fraction of their option value.

Interest rates are a topic of speculation at period end. In our opinion, the Financials that we hold in our portfolio are very undervalued should interest rates rise meaningfully, and still undervalued if they rise only slightly. The overweight position that we have built is not typical for us when looking at the portfolio over a longer period of time. We have a natural bias against businesses with the opacity and financial leverage that financials – especially banks – have, and we would normally have a severe underweighting to them. Our overweight at period end is purely the result of valuation levels that are, in our opinion, compelling.

Speculation continues over the strength of the Eurozone and its currency. In our opinion, increased uncertainty for the Euro means continued weakening for the Euro. This is in line with the view we have held for years: that the unprofitable dynamics within many European economies lead to a weaker currency. However, we look at the world as one marketplace. The European domiciled companies that we own have done great things in the world and happen to have the Euro as their home currency. Many of them benefit from a weaker Euro, earning more in Euro terms on what they sell outside of Europe. What matters to them is not the level of the Euro but world trade conditions more generally.

As we look ahead, we are concerned about what could happen with world trade and with barriers to world trade, because that clearly affects the growth of the world economy. Volumes in world trade have been fairly mediocre over the past few years. But negative changes to the trade infrastructure would cause them to go down further and that would have a negative impact on the world economy, in which case growth rates will be lower. To the extent that we have had a change in any of our attitudes over the past six months, it is that we no longer take world trade growth for granted.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

4 OPPENHEIMER GLOBAL FUND/VA

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2016. In the case of Non-Service shares and Service shares, performance is measured over a ten-fiscal-year period. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares.

The Fund’s performance is compared to the performance of the MSCI All Country (AC) World Index, a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

5 OPPENHEIMER GLOBAL FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

6 OPPENHEIMER GLOBAL FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,090.00	$	4.00
Service shares		1,000.00		1,088.60		5.32

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.32		3.87
Service shares		1,000.00		1,020.06		5.14


Class	Expense Ratios
Non-Service shares		0.76%
Service shares		1.01

7 OPPENHEIMER GLOBAL FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value
Common Stocks—96.2%
Consumer Discretionary—14.5%
Automobiles—0.8%
Suzuki Motor Corp.		517,700	$	18,172,763

Hotels, Restaurants & Leisure—0.8%
International Game Technology plc		749,411		19,124,969

Internet & Direct Marketing Retail—1.3%
JD.com, Inc., ADR¹		1,148,186		29,209,852

Leisure Products—0.5%
Nintendo Co. Ltd.		53,300		11,142,126

Media—2.8%
Walt Disney Co. (The)		465,660		48,531,085
Zee Entertainment Enterprises Ltd.		2,508,388		16,702,185
				65,233,270

Specialty Retail—3.4%
Industria de Diseno Textil SA		1,435,668		48,992,876
Tiffany & Co.		398,250		30,836,497
				79,829,373

Textiles, Apparel & Luxury Goods—4.9%
Brunello Cucinelli SpA		426,730		9,135,513
Kering		175,060		39,245,772
LVMH Moet Hennessy Louis Vuitton SE		298,300		56,879,028
Tod’s SpA		117,609		7,646,433
				112,906,746

Consumer Staples—5.3%
Food & Staples Retailing—0.4%
Whole Foods Market, Inc.		287,930		8,856,727

Food Products—2.5%
Nestle SA		275,307		19,746,695
Unilever plc		963,823		38,986,764
				58,733,459

Household Products—2.4%
Colgate-Palmolive Co.		842,290		55,119,457

Energy—1.0%
Energy Equipment & Services—1.0%
Technip SA		318,940		22,632,750

Financials—21.7%
Capital Markets—7.5%
Credit Suisse Group AG¹		639,562		9,132,318
Goldman Sachs Group, Inc. (The)		185,660		44,456,287
S&P Global, Inc.		660,970		71,080,714
UBS Group AG		3,104,518		48,601,023
				173,270,342

Commercial Banks—7.0%
Banco Bilbao Vizcaya Argentaria SA		1,967,915		13,276,176
Citigroup, Inc.		1,157,260		68,775,962
ICICI Bank Ltd., Sponsored ADR		3,980,800		29,816,192
Societe Generale SA		617,309		30,304,091
Sumitomo Mitsui Financial Group, Inc.		504,300		19,118,042
				161,290,463

Insurance—5.9%
Allianz SE		249,352		41,218,650
Dai-ichi Life Holdings, Inc.		2,031,100		33,651,769
FNF Group		580,970		19,729,741
Prudential plc		2,145,387		42,792,215
				137,392,375

Real Estate Management & Development—1.3%
DLF Ltd.		18,658,732		30,631,885

Health Care—14.7%
Biotechnology—5.9%
ACADIA Pharmaceuticals, Inc.¹		604,070		17,421,379
Biogen, Inc.¹		92,120		26,123,389
BioMarin Pharmaceutical, Inc.¹		137,090		11,356,535


	Shares		Value
Biotechnology (Continued)
Bluebird Bio, Inc.¹		131,850	$	8,135,145
Circassia Pharmaceuticals plc¹		4,471,614		5,179,391
Gilead Sciences, Inc.		334,460		23,950,680
Ionis Pharmaceuticals, Inc.¹		370,790		17,734,886
MacroGenics, Inc.¹		412,270		8,426,799
Sage Therapeutics, Inc.¹		241,260		12,318,736
Vertex Pharmaceuticals, Inc.¹		73,170		5,390,434
				136,037,374

Health Care Equipment & Supplies—1.3%
Zimmer Biomet Holdings, Inc.		286,340		29,550,288

Health Care Providers & Services—4.7%
Aetna, Inc.		546,160		67,729,302
Anthem, Inc.		283,915		40,818,459
				108,547,761

Pharmaceuticals—2.8%
Bayer AG		306,756		32,002,603
Roche Holding AG		89,725		20,444,129
Shire plc		245,800		13,928,546
				66,375,278

Industrials—12.7%
Aerospace & Defense—2.7%
Airbus Group SE		936,930		61,836,037

Air Freight & Couriers—1.3%
United Parcel Service, Inc., Cl. B		261,740		30,005,874

Airlines—0.5%
International Consolidated Airlines
Group SA		2,152,390		11,672,811

Building Products—1.4%
Assa Abloy AB, Cl. B		1,761,077		32,667,970

Construction & Engineering—0.4%
FLSmidth & Co. AS		209,880		8,699,998

Electrical Equipment—3.2%
Emerson Electric Co.		309,810		17,271,907
Nidec Corp.		547,400		47,076,426
Prysmian SpA		415,636		10,669,107
				75,017,440

Industrial Conglomerates—2.4%
3M Co.		216,320		38,628,262
Siemens AG		132,726		16,314,926
				54,943,188

Machinery—0.8%
FANUC Corp.		105,300		17,806,299

Information Technology—23.8%
Electronic Equipment, Instruments, & Components—6.3%
Keyence Corp.		67,011		45,914,511
Kyocera Corp.		603,000		29,908,226
Murata Manufacturing Co. Ltd.		457,300		60,897,333
TDK Corp.		133,800		9,174,694
				145,894,764

Internet Software & Services—8.0%
Alphabet, Inc., Cl. A¹		76,480		60,606,576
Alphabet, Inc., Cl. C¹		79,332		61,230,024
Facebook, Inc., Cl. A¹		412,470		47,454,674
Twitter, Inc.¹		962,590		15,690,217
				184,981,491

IT Services—1.1%
Earthport plc¹		11,701,573		3,061,683
PayPal Holdings, Inc.¹		534,100		21,080,927
				24,142,610

Semiconductors & Semiconductor Equipment—2.0%
Maxim Integrated Products, Inc.		1,194,825		46,084,400

8 OPPENHEIMER GLOBAL FUND/VA


	Shares		Value
Software—6.4%
Adobe Systems, Inc.¹		380,983	$	39,222,200
Intuit, Inc.		461,300		52,869,593
SAP SE		636,197		55,600,503
				147,692,296

Materials—1.0%
Chemicals—1.0%
Linde AG		138,739		22,749,601

Telecommunication Services—1.5%
Wireless Telecommunication Services—1.5%
KDDI Corp.		1,370,100		34,592,160
Total Common Stocks (Cost $1,209,741,067)				2,222,844,197


	Shares		Value
Preferred Stocks—2.0%
Bayerische Motoren Werke (BMW) AG, Preference		567,551	$	43,531,506
Zee Entertainment Enterprises Ltd., 6% Cum. Non-Cv.		7,925,360		1,143,204
Total Preferred Stocks (Cost $17,963,907)				44,674,710

Investment Company—1.4%
Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^2,3(Cost $32,806,872)		32,806,872		32,806,872
Total Investments, at Value (Cost $1,260,511,846)		99.6%		2,300,325,779
Net Other Assets (Liabilities)		0.4		9,891,552
Net Assets		100.0%	$	2,310,217,331

Footnotes to Statement of Investments

1. Non-income producing security.

2. Rate shown is the 7-day yield at period end.


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016
Oppenheimer Institutional Government Money Market Fund, Cl. E^a		20,379,539		386,700,976		374,273,643		32,806,872

	��				Value		Income
Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	32,806,872	$	106,158

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.


Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
Geographic Holdings (Unaudited)	Value	Percent
United States	$ 1,079,294,030		46.8	%
Japan	327,454,349		14.3
Germany	211,417,788		9.2
France	210,897,678		9.2
United Kingdom	120,817,833		5.2
Switzerland	97,924,165		4.3
India	78,293,466		3.4
Spain	62,269,052		2.7
Sweden	32,667,969		1.4
China	29,209,852		1.3
Italy	27,451,053		1.2
Ireland	13,928,546		0.6
Denmark	8,699,998		0.4
Total	$ 2,300,325,779		100.0	%

See accompanying Notes to Financial Statements.

9 OPPENHEIMER GLOBAL FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $1,227,704,974)	$	2,267,518,907
Affiliated companies (cost $32,806,872)		32,806,872
		2,300,325,779
Cash		1,999,971
Receivables and other assets:
Dividends		5,849,448
Investments sold		3,165,794
Shares of beneficial interest sold		451,641
Other		114,315
Total assets		2,311,906,948

Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		1,169,070
Distribution and service plan fees		227,511
Trustees’ compensation		106,108
Shareholder communications		93,858
Foreign capital gains tax		14,173
Other		78,897
Total liabilities		1,689,617
Net Assets	$	2,310,217,331



Composition of Net Assets
Par value of shares of beneficial interest	$	66,297
Additional paid-in capital		1,285,731,623
Accumulated net investment income		17,542,546
Accumulated net realized loss on investments and foreign currency transactions		(32,206,260	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		1,039,083,125
Net Assets	$	2,310,217,331



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,245,069,883 and 35,549,508 shares of beneficial interest outstanding)		$35.02
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,065,147,448 and 30,747,177 shares of beneficial interest outstanding)		$34.64

See accompanying Notes to Financial Statements.

10 OPPENHEIMER GLOBAL FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $3,680,533)	$	34,344,915
Affiliated companies		106,158
Total investment income		34,451,073

Expenses
Management fees		14,572,942
Distribution and service plan fees - Service shares		2,541,824
Transfer and shareholder servicing agent fees:
Non-Service shares		1,271,162
Service shares		1,017,661
Shareholder communications:
Non-Service shares		101,590
Service shares		81,922
Custodian fees and expenses		134,285
Trustees’ compensation		72,455
Borrowing fees		42,388
Other		201,566
Total expenses		20,037,795
Less reduction to custodian expenses		(927	)
Less waivers and reimbursements of expenses		(24,019	)
Net expenses		20,012,849

Net Investment Income		14,438,224

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies		3,077,774
Foreign currency transactions		(25,098	)
Net realized gain		3,052,676
Net change in unrealized appreciation/depreciation on:
Investment transactions (net of foreign capital gains tax of $3,510)		(27,642,196	)
Translation of assets and liabilities denominated in foreign currencies		(216,203	)
Net change in unrealized appreciation/depreciation		(27,858,399	)

Net Decrease in Net Assets Resulting from Operations	$	(10,367,499	)

See accompanying Notes to Financial Statements.

11 OPPENHEIMER GLOBAL FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015¹
Operations
Net investment income	$	14,438,224	$	22,366,099
Net realized gain		3,052,676		168,860,356
Net change in unrealized appreciation/depreciation		(27,858,399)		(89,628,016)
Net increase (decrease) in net assets resulting from operations		(10,367,499)		101,598,439

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(13,598,845)		(19,562,644)
Service shares		(7,587,430)		(13,304,683)
		(21,186,275)		(32,867,327)

Distributions from net realized gain:
Non-Service shares		(86,197,755)		(97,527,552)
Service shares		(67,272,765)		(81,961,759)
		(153,470,520)		(179,489,311)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(55,451,479)		(4,461,169)
Service shares		62,981,601		(69,555,025)
		7,530,122		(74,016,194)

Net Assets
Total decrease		(177,494,172)		(184,774,393)
Beginning of period		2,487,711,503		2,672,485,896
End of period (including accumulated net investment income of $17,542,546 and $20,709,787¹, respectively)	$	2,310,217,331	$	2,487,711,503

1. Net investment income and net realized gain (loss) for the year ended December 31, 2015 includes an adjustment for a prior period reclassification. Please see Note 10 of the accompanying Notes to Financial Statements.

See accompanying Notes to Financial Statements.

12 OPPENHEIMER GLOBAL FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$38.00		$39.50		$40.86		$32.55		$27.46
Income (loss) from investment operations:
Net investment income¹		0.26		0.37²		0.52²		0.44²		0.44
Net realized and unrealized gain (loss)		(0.42)		1.38²		0.44²		8.37²		5.29
Total from investment operations		(0.16)		1.75		0.96		8.81		5.73
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.38)		(0.54)		(0.46)		(0.50)		(0.64)
Distributions from net realized gain		(2.44)		(2.71)		(1.86)		0.00		0.00
Total dividends and/or distributions to shareholders		(2.82)		(3.25)		(2.32)		(0.50)		(0.64)
Net asset value, end of period		$35.02		$38.00		$39.50		$40.86		$32.55


Total Return, at Net Asset Value³		0.08%		3.94%		2.29%		27.31%		21.27%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,245,070		$1,406,001		$1,468,107		$1,397,026		$1,252,127
Average net assets (in thousands)		$1,270,049		$1,502,338		$1,532,383		$1,333,848		$1,206,244
Ratios to average net assets:⁴
Net investment income		0.75%		0.92%²		1.30%²		1.20%²		1.48%
Expenses excluding specific expenses listed below		0.77%		0.76%		0.76%		0.77%		0.76%
Interest and fees from borrowings		0.00%⁵		0.00%⁵		0.00%		0.00%		0.00%
Total expenses⁶		0.77%		0.76%		0.76%		0.77%		0.76%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.77%⁷		0.76%⁷		0.76%⁷		0.77%⁷		0.76%⁷
Portfolio turnover rate		14%		14%		13%		11%		14%

1. Per share amounts calculated based on the average shares outstanding during the period.

2. Net investment income per share, net realized and unrealized gain (loss) per share and the net investment income ratio include an adjustment for a prior period reclassification for the years ended December 31, 2013, 2014 and 2015. Please see Note 10 of the accompanying Notes to Financial Statements.

4. Annualized for periods less than one full year.

5. Less than 0.005%.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	0.77	%
Year Ended December 31, 2015	0.76	%
Year Ended December 31, 2014	0.76	%
Year Ended December 31, 2013	0.77	%
Year Ended December 31, 2012	0.76	%

7. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

13 OPPENHEIMER GLOBAL FUND/VA

FINANCIAL HIGHLIGHTS Continued


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$37.59		$39.10		$40.47		$32.25		$27.21
Income (loss) from investment operations:
Net investment income¹		0.17		0.28²		0.42²		0.34²		0.36
Net realized and unrealized gain (loss)		(0.41)		1.36²		0.42²		8.30²		5.25
Total from investment operations		(0.24)		1.64		0.84		8.64		5.61
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.27)		(0.44)		(0.35)		(0.42)		(0.57)
Distributions from net realized gain		(2.44)		(2.71)		(1.86)		0.00		0.00
Total dividends and/or distributions to shareholders		(2.71)		(3.15)		(2.21)		(0.42)		(0.57)
Net asset value, end of period		$34.64		$37.59		$39.10		$40.47		$32.25


Total Return, at Net Asset Value³		(0.16)%		3.67%		2.06%		26.99%		20.95%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,065,147		$1,081,711		$1,204,379		$1,216,285		$1,130,388
Average net assets (in thousands)		$1,016,772		$1,219,501		$1,265,528		$1,174,119		$1,069,295
Ratios to average net assets:⁴
Net investment income		0.49%		0.70%²		1.05%²		0.95%²		1.23%
Expenses excluding specific expenses listed below		1.02%		1.01%		1.01%		1.02%		1.01%
Interest and fees from borrowings		0.00%⁵		0.00%⁵		0.00%		0.00%		0.00%
Total expenses⁶		1.02%		1.01%		1.01%		1.02%		1.01%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.02%⁷		1.01%⁷		1.01%⁷		1.02%⁷		1.01%⁷
Portfolio turnover rate		14%		14%		13%		11%		14%

1. Per share amounts calculated based on the average shares outstanding during the period.

4. Annualized for periods less than one full year.

5. Less than 0.005%.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.02	%
Year Ended December 31, 2015	1.01	%
Year Ended December 31, 2014	1.01	%
Year Ended December 31, 2013	1.03	%
Year Ended December 31, 2012	1.01	%

7. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

14 OPPENHEIMER GLOBAL FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Global Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s main investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former Trustees and officers with a limited indemnification against

15 OPPENHEIMER GLOBAL FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Undistributed Net Investment Income

Undistributed
Long-Term
Gain

Accumulated
Loss
Carryforward^1,2,3

Net Unrealized
Appreciation
Based on cost of

Securities and

Other Investments

for Federal Income

Tax Purposes

$21,458,166

$—

$17,365,953

$1,020,433,153

1. At period end, the Fund had $17,365,953 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring
No expiration	$	17,365,953

2. During the reporting period, the Fund did not utilize any capital loss carryforward.

3. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.

Increase to Paid-in Capital

Increase

to Accumulated
Net Investment
Income

Increase

to Accumulated Net
Realized Loss

on Investments

$4,602,266

$233,817

$4,836,083

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015
Distributions paid from:
Ordinary income	$	25,033,705	$	32,867,327
Long-term capital gain		149,623,090		179,489,311
Total	$	174,656,795	$	212,356,638

16 OPPENHEIMER GLOBAL FUND/VA

2. Significant Accounting Policies (Continued)


Federal tax cost of securities	$	1,279,161,818
Federal tax cost of other investments		301,968
Total federal tax cost	$	1,279,463,786

Gross unrealized appreciation	$	1,141,363,995
Gross unrealized depreciation		(120,930,842	)
Net unrealized appreciation	$	1,020,433,153

Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized.

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

17 OPPENHEIMER GLOBAL FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	127,702,403	$	207,916,696	$	—	$	335,619,099
Consumer Staples		63,976,184		58,733,459		—		122,709,643
Energy		—		22,632,750		—		22,632,750
Financials		233,858,896		268,726,169		—		502,585,065
Health Care		268,956,032		71,554,669		—		340,510,701
Industrials		85,906,043		206,743,574		—		292,649,617
Information Technology		344,238,611		204,556,950		—		548,795,561
Materials		—		22,749,601		—		22,749,601
Telecommunication Services		—		34,592,160		—		34,592,160
Preferred Stocks		1,143,204		43,531,506		—		44,674,710
Investment Company		32,806,872		—		—		32,806,872

Total Assets	$	1,158,588,245	$	1,141,737,534	$	—	$	2,300,325,779

4. Investments and Risks

18 OPPENHEIMER GLOBAL FUND/VA

4. Investments and Risks (Continued)

in economic or monetary policy in the United States or abroad, expropriation or nationalization of a company’s assets, or other political and economic factors. In addition, due to the inter-relationship of global economies and financial markets, changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to time-zone arbitrage risk. Foreign securities may trade on weekends or other days when the Fund does not price its shares. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse events that occur in that country or region. Foreign securities and foreign currencies held in foreign banks and securities depositories may be subject to limited or no regulatory oversight.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 28% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

19 OPPENHEIMER GLOBAL FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount
Non-Service Shares
Sold		2,580,191		$	89,371,624			3,090,155		$	125,761,536
Dividends and/or distributions reinvested		3,043,507			99,796,600			2,891,830			117,090,196
Redeemed		(7,075,696	)		(244,619,703	)		(6,149,839	)		(247,312,901	)
Net decrease		(1,451,998	)	$	(55,451,479	)		(167,854	)	$	(4,461,169	)


Service Shares
Sold		5,078,438		$	172,658,993			5,612,447		$	223,502,452
Dividends and/or distributions reinvested		2,305,519			74,860,195			2,375,130			95,266,442
Redeemed		(5,412,550	)		(184,537,587	)		(10,010,458	)		(388,323,919	)
Net increase (decrease)		1,971,407		$	62,981,601			(2,022,881	)	$	(69,555,025	)

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities		$318,669,110		$486,188,793

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million	0.75	%
Next $200 million	0.72
Next $200 million	0.69
Next $200 million	0.66
Next $4.2 billion	0.60
Over $5 billion	0.58

The Fund’s effective management fee for the reporting period was 0.64% of average annual net assets before any applicable waivers.

Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan (the “Plan”) pursuant to Rule 12b-1

20 OPPENHEIMER GLOBAL FUND/VA

8. Fees and Other Transactions with Affiliates (Continued)

under the 1940 Act for Service shares to pay OppenheimerFunds Distributor, Inc. (the “Distributor”), for distribution related services, personal service and account maintenance for the Fund’s Service shares. Under the Plan, payments are made periodically at an annual rate of 0.25% of the daily net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 1.00% for Non-Service shares and 1.25% for Service shares.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

9. Borrowings and Other Financing

10. Prior Period Reclassification

An adjustment to reflect a prior period reclassification between net investment income and net change in unrealized appreciation (depreciation) on investments and/or net realized gain (loss) on investments during the years ending December 31, 2013, 2014 and 2015 has been made to properly reflect income distributions received by the Fund from two of its investments.

The following adjustments are reflected in the respective fiscal years per the Statements of Changes in Net Assets and the Financial Highlights:


	2013			2014			2015

Net investment income (loss)		$ 1,678,655			$ 1,668,338			$ 1,749,447
Net realized gain (loss)		(163,217	)		(275,757	)		(222,558	)
Net change in unrealized appreciation/depreciation		(1,515,438	)		(1,392,581	)		(1,526,889	)

The cumulative impact of these adjustments are also reflected in the respective component of net assets on the Statement of Assets and liabilities and had no impact on total net assets or net asset values per share of the Fund.

11. Pending Litigation

21 OPPENHEIMER GLOBAL FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Global Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 December 31, 2016, by correspondence with the custodian and transfer agent. 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Global Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

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FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $2.37418 per share were paid to Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

Dividends, if any, paid by the Fund during the reporting period which are not designated as capital gain distributions should be multiplied by the maximum amount allowable but not less than 47.35% to arrive at the amount eligible for the corporate dividend-received deduction.

The Fund has elected the application of Section 853 of the Internal Revenue Code to permit shareholders to take a federal income tax credit or deduction, at their option, on a per share basis. The maximum amount allowable but not less than $3,672,525 of foreign income taxes were paid by the Fund during the reporting period. A separate notice will be mailed to each shareholder, which will reflect the proportionate share of such foreign taxes which must be treated by shareholders as gross income for federal income tax purposes.

Gross income of the maximum amount allowable but not less than $22,998,327 was derived from sources within foreign countries or possessions of the United States.

23 OPPENHEIMER GLOBAL FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ key personnel who provide such services. The Managers’ duties include providing the Fund with the services of the portfolio manager and the Sub-Adviser’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; and securities trading services. OFI Global is responsible for oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; risk management; and oversight of the Sub-Adviser. OFI Global is also responsible for providing certain administrative services to the Fund. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the U.S. Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by federal and state securities laws for the sale of the Fund’s shares. OFI Global also provides the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Rajeev Bhaman, the portfolio manager for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other world stock funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses and contractual management fee were lower than its peer group median and its category median. The Board further considered that the Adviser has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 1.00% for Non-Service Shares and 1.25% for Service Shares. This voluntary expense limitation may be amended or withdrawn at any time without prior notice to shareholders.

24 OPPENHEIMER GLOBAL FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

25 OPPENHEIMER GLOBAL FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

26 OPPENHEIMER GLOBAL FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

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TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Mr. Bhaman, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Rajeev Bhaman, Vice President (since 2004) Year of Birth: 1963		Director of Global Equities of the Sub-Adviser (since January 2013); Senior Vice President of the Sub-Adviser (since May 2006); Vice President of the Sub-Adviser (January 1997-May 2006). An officer of other portfolios in the OppenheimerFunds complex.

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

28 OPPENHEIMER GLOBAL FUND/VA



Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

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OPPENHEIMER GLOBAL FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO



		December 31, 2016
		Oppenheimer
		Main Street Fund^®/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds
		ANNUAL REPORT
		Listing of Top Holdings Fund Performance Discussion Financial Statements

PORTFOLIO MANAGERS: Manind Govil, CFA, Benjamin Ram and Paul Larson

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		7/5/95		11.62%		14.48%		6.53	%
Service Shares		7/13/00		11.30		14.19		6.25
S&P 500 Index				11.96		14.66		6.95

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


Apple, Inc.		5.6%
Alphabet, Inc., Cl. C		4.6
General Electric Co.		3.5
Comcast Corp., Cl. A		3.4
Citigroup, Inc.		3.3
Chevron Corp.		2.8
Mondelez International, Inc., Cl. A		2.8
Berkshire Hathaway, Inc., Cl. B		2.8
PepsiCo, Inc.		2.6
CME Group, Inc., Cl. A		2.3

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

SECTOR ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of common stocks.

2 OPPENHEIMER MAIN STREET FUND/VA

Fund Performance Discussion

During the reporting period, the Fund’s Non-Service shares produced a return of 11.62%. In comparison, the S&P 500 Index (the “Index”) returned 11.96%. The Fund underperformed the Index in the information technology and energy sectors due mainly to stock selection, and in telecommunication services, as a result of an underweight and stock selection. The Fund outperformed the Index in financials, health care, consumer staples and utilities due to stock selection, while an overweight position in financials also helped.

While the absolute returns seen by the Index and the Fund were both moderately above long-term averages for 2016, roughly half of the return came in the final eight weeks of the year following the election. The Fund’s performance was consistent with our expectations. Namely, given our strategy and the types of higher-quality companies we invest in, we expect to underperform in “go-go” markets, mildly outperform when market returns are near long-term averages, and then materially outperform in bear markets. 2016 was roughly between the first two of these scenarios.

MARKET OVERVIEW

Markets were turbulent during the reporting period. However, despite the volatility, the Index and the Fund experienced gains, particularly after the November U.S. Presidential election. A large trend for the first half of 2016 was the demand for so-called “bond proxy stocks” with above average dividend yields. This trend was magnified post the Brexit vote as treasury yields, already at historic lows, were under further pressure and future interest rate hike expectations continued to be pushed further out. However, the market environment shifted over the fourth quarter of 2016, when the “risk-on” trade returned. This meant a sharp rebound in lower quality cyclicals, outperformance by smaller versus larger cap stocks, and a rotation away from defensive-oriented companies with more stable earnings and higher dividends. This theme continued through year end.

The one-year reporting period saw the market driven by several important macroeconomic trends and events:

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The U.S. election, which saw Republicans take the White House and maintain control of Congress.

●

Given above, significant policy changes are expected surrounding taxation, cross-border trade, regulatory burdens, and healthcare.

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With these changes, a broad shift from monetary stimuli to inflationary fiscal stimuli.

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Uncertainty over the pace of Federal Reserve interest rate hikes.

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The U.S. dollar materially strengthening versus other currencies.

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Continued slow, but steady recovery in domestic consumer employment, wages and consumption.

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Continued impact of Brexit, and increased uncertainty for global markets as a result.

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Competitive currency devaluations, including negative interest rates in a growing number of jurisdictions, thrusting the world economy into uncharted territory.

As investors, it is important to know what is and what is not within one’s circle of competence. As such, we strive to keep the portfolio in an all-weather orientation. Whether rates, commodity prices, currencies or even whole economies go up or down, our goal is to have a portfolio that can out-perform no matter the environment.

Second, we believe we have the skills to identify company management teams that are likely to successfully execute on their plans. Lastly, correctly valuing stocks and seeing what expectations the market is pricing in is also within our skill set. It is not by accident that we weight the portfolio more heavily towards companies that we believe have structural competitive advantages and/or management teams that are executing (e.g. gaining market share, expanding profit margins), with at least reasonable stock valuations.

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TOP INDIVIDUAL CONTRIBUTORS

Top contributors to performance this period included CME Group, Chevron and Comcast. Our overweight position in financials skews towards non-lender financials such as CME Group. The company performed well during the reporting period, and particularly after the U.S. Presidential election in November. Financials were the biggest winner after the election, as many believe the Trump administration will be more favorable to the sector, thanks to less regulation as well as implementing other policies favorable to both economic growth and interest rate increases, leading to net interest margin expansion. Chevron benefited from the sharp bounce off the oil price lows seen in the first quarter of 2016. Furthermore, Chevron’s attractive yield and more focused capital spending plans were rewarded by the market. Media and technology company Comcast reported strong earnings in October 2016. The summer Olympics helped drive growth at NBCUniversal.

TOP INDIVIDUAL DETRACTORS

The top detractors from performance included health care stocks Mylan, Express Scripts and Gilead Sciences. Shares of Mylan were impacted by questions over the pricing of EpiPen. Mylan’s CEO called out the supply chain, including pharmacy benefit managers (PBMs) such as Express Scripts, as to why the price of EpiPen has had significant price increases over the last few years. Express Scripts was also negatively impacted by concern regarding scrutiny over manufacturer rebates and transparency of the PBM business model. Gilead is a biopharmaceutical company primarily focused on development of drugs aimed at HIV/AIDS, liver disease, and serious cardiovascular and respiratory conditions. The stock was down with the biotech sector, and it also faced a new competitor within the Hepatitis C market — Merck’s Zepatier — which was approved at the end of January. We’ve since exited our position on pricing concerns in the Hepatitis C space.

STRATEGY & OUTLOOK

While bottom-up company research and stock selection continue to be central to our process and strategy, we do have some observations about the current environment. First, the upcoming change resulting from the elections are likely to be profound. While the exact forms of change that will take place are still speculation at this point, here are our base case expectations for what we believe will happen in the year ahead:

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Lower U.S. corporate tax rates (fewer companies re-domiciling outside the U.S., and maybe some companies coming back)

●

Offsetting the lower tax rates, fewer specialized deductions

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Lower regulatory burdens

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Greater fiscal stimulus, most notably infrastructure spending

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Rhetoric around protectionism in many forms, including higher import tariffs

●

Higher wages

While some of these changes—most notably tax rates—would directly lead to earnings growth in the near term, these changes do present some material risks that need to be considered. Supply chains today are highly globalized, and higher friction within global trade could lead to disruptions and higher costs for our companies. Moreover, other countries could easily create retaliatory protectionist policies of their own, reducing demand for U.S. exports and/or making life more difficult for overseas operations of our companies. Finally, deflation has been the bigger concern in recent years, but these policies are clearly swinging the pendulum toward higher inflation. In moderation, inflation is helpful, but we are mindful that sometimes the pendulum can swing too far.

U.S. corporate revenues, earnings, and free cash flow have resumed their moderate growth. The post-election strength in U.S. equity markets and the return of the “risk on trade” indicates that consensus expects earnings growth to accelerate further in the quarters ahead.

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We expect heightened uncertainty to return in the equity markets. Traditionally, during periods of economic uncertainty and heightened market volatility, investors favor stocks of higher quality companies—with greater consistency and stability of revenue and earnings— leading to relatively better stock performance of those companies. We think focusing on companies with economic moats and skilled management teams positions us well, should this environment come to pass. During times of economic volatility such companies frequently widen their lead over weaker competitors. We seek to invest in companies, characterized by these qualities, at compelling valuations and believe this disciplined approach is essential to generating superior long-term performance.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The S&P 500 Index is a broad-based measure of domestic stock performance. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

5 OPPENHEIMER MAIN STREET FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns include changes in share price and reinvested distributions but do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

6 OPPENHEIMER MAIN STREET FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,066.90	$	4.11
Service shares		1,000.00		1,065.20		5.41

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.17		4.02
Service shares		1,000.00		1,019.91		5.29


Class	Expense Ratios
Non-Service shares		0.79%
Service shares		1.04

7 OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—99.1%

Consumer Discretionary—10.7%

Auto Components—0.7%

Adient plc¹		31,222	$	1,829,609

Delphi Automotive plc		105,800		7,125,630

				8,955,239

Hotels, Restaurants & Leisure—1.9%

McDonald’s Corp.		195,420		23,786,523

Household Durables—1.0%

Whirlpool Corp.		71,430		12,983,831

Internet & Catalog Retail—0.7%

Amazon.com, Inc.¹		10,890		8,166,084

Media—3.4%

Comcast Corp., Cl. A		620,205		42,825,155

Specialty Retail—3.0%

AutoZone, Inc.¹		17,830		14,081,956

Home Depot, Inc. (The)		174,317		23,372,423

				37,454,379

Consumer Staples—9.6%

Beverages—2.6%

PepsiCo, Inc.		309,310		32,363,105

Food Products—5.0%

Kraft Heinz Co. (The)		313,130		27,342,512

Mondelez International, Inc., Cl. A		798,480		35,396,618

				62,739,130

Tobacco—2.0%

Philip Morris International, Inc.		277,489		25,387,469

Energy—7.2%

Oil, Gas & Consumable Fuels—7.2%

Chevron Corp.		301,747		35,515,622

HollyFrontier Corp.		233,635		7,653,882

Magellan Midstream Partners LP²		213,290		16,131,123

Noble Energy, Inc.		307,463		11,702,042

Suncor Energy, Inc.		589,240		19,262,256

				90,264,925

Financials—21.3%

Capital Markets—4.6%

Bank of New York Mellon Corp. (The)		422,000		19,994,360

CME Group, Inc., Cl. A		255,410		29,461,544

S&P Global, Inc.		80,311		8,636,645

				58,092,549

Commercial Banks—6.1%

Citigroup, Inc.		701,598		41,695,969

SunTrust Banks, Inc.		330,610		18,133,959

US Bancorp		323,560		16,621,277

				76,451,205

Consumer Finance—3.1%

American Express Co.		238,820		17,691,785

Discover Financial Services		293,963		21,191,793

				38,883,578

Diversified Financial Services—2.8%

Berkshire Hathaway, Inc., Cl. B¹		216,740		35,324,285

Insurance—3.3%

Marsh & McLennan Cos., Inc.		126,110		8,523,775

MetLife, Inc.		323,610		17,439,343

Progressive Corp. (The)		450,150		15,980,325

				41,943,443

Real Estate Investment Trusts (REITs)—1.4%

Mid-America Apartment Communities, Inc.		97,690		9,565,805

Simon Property Group, Inc.		42,420		7,536,761

				17,102,566


	Shares		Value

Health Care—13.6%

Biotechnology—1.0%

Celgene Corp.¹		111,710	$	�� 12,930,433

Health Care Equipment & Supplies—2.3%

Boston Scientific Corp.¹		617,510		13,356,742

Stryker Corp.		130,330		15,614,837

				28,971,579

Health Care Providers & Services—4.4%

Express Scripts Holding Co.¹		319,107		21,951,371

Humana, Inc.		46,850		9,558,805

UnitedHealth Group, Inc.		151,700		24,278,068

				55,788,244

Health Care Technology—0.6%

Cerner Corp.¹		148,490		7,033,971

Life Sciences Tools & Services—0.7%

Agilent Technologies, Inc.		185,250		8,439,990

Pharmaceuticals—4.6%

Johnson & Johnson		190,770		21,978,612

Merck & Co., Inc.		408,900		24,071,943

Mylan NV¹		237,060		9,043,839

Valeant Pharmaceuticals International, Inc.¹		223,520		3,245,510

				58,339,904

Industrials—11.7%

Aerospace & Defense—1.9%

Lockheed Martin Corp.		49,450		12,359,533

United Technologies Corp.		105,040		11,514,485

				23,874,018

Commercial Services & Supplies—2.0%

Johnson Controls International plc		312,195		12,859,312

Republic Services, Inc., Cl. A		77,360		4,413,388

Waste Connections, Inc.		98,495		7,740,722

				25,013,422

Industrial Conglomerates—3.5%

General Electric Co.		1,400,220		44,246,952

Machinery—1.3%

Deere & Co.		161,860		16,678,054

Professional Services—1.0%

Nielsen Holdings plc		295,900		12,413,005

Road & Rail—2.0%

Canadian National Railway Co.		163,000		10,986,200

Canadian Pacific Railway Ltd.		102,100		14,576,817

				25,563,017

Information Technology—18.2%

Communications Equipment—1.2%

Cisco Systems, Inc.		493,450		14,912,059

Internet Software & Services—6.5%

Alphabet, Inc., Cl. C¹		74,967		57,861,030

Facebook, Inc., Cl. A¹		207,380		23,859,069

				81,720,099

IT Services—3.0%

Amdocs Ltd.		351,720		20,487,690

PayPal Holdings, Inc.¹		317,390		12,527,383

Xerox Corp.		623,927		5,446,883

				38,461,956

Semiconductors & Semiconductor Equipment—0.9%

Applied Materials, Inc.		357,080		11,522,972

Technology Hardware, Storage & Peripherals—6.6%

Apple, Inc.		608,066		70,426,204

Western Digital Corp.		182,060		12,370,977

				82,797,181

8 OPPENHEIMER MAIN STREET FUND/VA


	Shares		Value

Materials—2.2%

Chemicals—1.5%

EI du Pont de Nemours & Co.		118,210		$ 8,676,614

PPG Industries, Inc.		99,860		9,462,734

				18,139,348

Construction Materials—0.7%

Vulcan Materials Co.		72,830		9,114,674

Telecommunication Services—2.0%

Diversified Telecommunication Services—2.0%

Verizon Communications, Inc.		485,600		25,921,328

Utilities—2.6%

Electric Utilities—2.1%

PG&E Corp.		424,570		25,801,119


	Shares		Value

Multi-Utilities—0.5%

National Grid plc		554,760	$	6,488,105

Total Common Stocks (Cost $895,871,088)				1,246,894,896




Investment Company—0.9%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^3,4 (Cost $11,146,627)		11,146,627		11,146,627

Total Investments, at Value (Cost $907,017,715)		100.0%		1,258,041,523

Net Other Assets (Liabilities)		0.0		(251,101)

Net Assets		100.0%	$	1,257,790,422

Footnotes to Statement of Investments

1. Non-income producing security.

2. Security is a Master Limited Partnership.

3. Rate shown is the 7-day yield at period end.


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		18,174,708		262,220,352		269,248,433		11,146,627

					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	11,146,627	$	92,718

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

See accompanying Notes to Financial Statements.

9 OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $895,871,088)			$ 1,246,894,896
Affiliated companies (cost $11,146,627)			11,146,627

			1,258,041,523

Cash			750,904

Receivables and other assets:
Dividends			3,193,853
Shares of beneficial interest sold			335,228
Other			97,418

Total assets			1,262,418,926

Liabilities
Payables and other liabilities:
Investments purchased			3,401,028
Shares of beneficial interest redeemed			908,283
Distribution and service plan fees			165,308
Trustees’ compensation			91,668
Shareholder communications			33,603
Other			28,614

Total liabilities			4,628,504

Net Assets			$ 1,257,790,422



Composition of Net Assets
Par value of shares of beneficial interest			$ 44,550

Additional paid-in capital			871,876,424

Accumulated net investment income			12,234,256

Accumulated net realized gain on investments and foreign currency transactions			22,629,061

Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies			351,006,131

Net Assets			$ 1,257,790,422



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $485,195,969 and 17,080,300 shares of beneficial interest outstanding)			$28.41

Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $772,594,453 and 27,470,151 shares of beneficial interest outstanding)			$28.12

See accompanying Notes to Financial Statements.

10 OPPENHEIMER MAIN STREET FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $135,097)	$	24,041,072
Affiliated companies		92,718

Interest		44

Total investment income		24,133,834

Expenses
Management fees		8,166,529

Distribution and service plan fees - Service shares		1,813,561

Transfer and shareholder servicing agent fees:
Non-Service shares		502,660
Service shares		726,052

Shareholder communications:
Non-Service shares		55,998
Service shares		81,628

Trustees’ compensation		47,929

Borrowing fees		22,097

Custodian fees and expenses		7,394

Other		96,363

Total expenses		11,520,211
Less reduction to custodian expenses		(409)
Less waivers and reimbursements of expenses		(22,543)

Net expenses		11,497,259

Net Investment Income		12,636,575

Realized and Unrealized Gain
Net realized gain on:
Investment transactions in unaffiliated companies		29,425,614
Foreign currency transactions		12,591

Net realized gain		29,438,205

Net change in unrealized appreciation/depreciation on:
Investment transactions		88,753,320
Translation of assets and liabilities denominated in foreign currencies		(3,669)

Net change in unrealized appreciation/depreciation		88,749,651

Net Increase in Net Assets Resulting from Operations	$	130,824,431

See accompanying Notes to Financial Statements.

11 OPPENHEIMER MAIN STREET FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended		Year Ended
	December 31, 2016		December 31, 2015

Operations
Net investment income	$	12,636,575	$	11,743,405

Net realized gain		29,438,205		162,442,794

Net change in unrealized appreciation/depreciation		88,749,651		(133,007,686)

Net increase in net assets resulting from operations		130,824,431		41,178,513

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(5,704,267)		(5,010,080)
Service shares		(6,065,396)		(4,935,637)

		(11,769,663)		(9,945,717)

Distributions from net realized gain:
Non-Service shares		(60,632,295)		(81,805,950)
Service shares		(84,601,632)		(115,456,402)

		(145,233,927)		(197,262,352)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(20,488,952)		27,294,558
Service shares		70,674,306		6,563,579

		50,185,354		33,858,137

Net Assets
Total increase (decrease)		24,006,195		(132,171,419)

Beginning of period		1,233,784,227		1,365,955,646

End of period (including accumulated net investment income of $12,234,256 and $11,585,433, respectively)	$	1,257,790,422	$	1,233,784,227

See accompanying Notes to Financial Statements.

12 OPPENHEIMER MAIN STREET FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$29.24		$33.61		$31.24		$23.97	$20.71

Income (loss) from investment operations:
Net investment income¹		0.33		0.33		0.28		0.24	0.26
Net realized and unrealized gain		2.76		0.80		3.01		7.33	3.22

Total from investment operations		3.09		1.13		3.29		7.57	3.48

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.34)		(0.32)		(0.27)		(0.30)	(0.22)
Distributions from net realized gain		(3.58)		(5.18)		(0.65)		0.00	0.00

Total dividends and/or distributions to shareholders		(3.92)		(5.50)		(0.92)		(0.30)	(0.22)

Net asset value, end of period		$28.41		$29.24		$33.61		$31.24	$23.97



Total Return, at Net Asset Value²		11.62%		3.33%		10.70%		31.77%	16.87%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$485,196		$518,456		$559,933		$561,016	$481,089

Average net assets (in thousands)		$502,522		$541,020		$554,449		$517,750	$466,231

Ratios to average net assets:³
Net investment income		1.16%		1.05%		0.86%		0.87%	1.12%
Expenses excluding specific expenses listed below		0.79%		0.78%		0.77%		0.78%	0.78%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%	0.00%

Total expenses⁵		0.79%		0.78%		0.77%		0.78%	0.78%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.79%⁶		0.78%⁶		0.77%⁶		0.78%⁶	0.78%⁶

Portfolio turnover rate		33%		44%		43%		49%	37%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:



Year Ended December 31, 2016	0.79	%
Year Ended December 31, 2015	0.78	%
Year Ended December 31, 2014	0.77	%
Year Ended December 31, 2013	0.78	%
Year Ended December 31, 2012	0.78	%

6. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

13 OPPENHEIMER MAIN STREET FUND/VA

FINANCIAL HIGHLIGHTS Continued


Service Shares	Year Ended December 31, 2016	Year Ended December 31, 2015	Year Ended December 31, 2014	Year Ended December 31, 2013	Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period	$28.98	$33.33	$30.99	$23.78	$20.53

Income (loss) from investment operations:
Net investment income¹	0.26	0.25	0.19	0.17	0.20
Net realized and unrealized gain	2.72	0.80	2.99	7.27	3.20

Total from investment operations	2.98	1.05	3.18	7.44	3.40

Dividends and/or distributions to shareholders:
Dividends from net investment income	(0.26)	(0.22)	(0.19)	(0.23)	(0.15)
Distributions from net realized gain	(3.58)	(5.18)	(0.65)	0.00	0.00

Total dividends and/or distributions to shareholders	(3.84)	(5.40)	(0.84)	(0.23)	(0.15)

Net asset value, end of period	$28.12	$28.98	$33.33	$30.99	$23.78



Total Return, at Net Asset Value²	11.30%	3.11%	10.40%	31.44%	16.61%


Ratios/Supplemental Data
Net assets, end of period (in thousands)	$772,594	$715,328	$806,023	$915,027	$869,372

Average net assets (in thousands)	$725,836	$757,218	$856,467	$895,073	$913,871

Ratios to average net assets:³
Net investment income	0.94%	0.80%	0.61%	0.62%	0.85%
Expenses excluding specific expenses listed below	1.04%	1.03%	1.02%	1.04%	1.03%
Interest and fees from borrowings	0.00%⁴	0.00%⁴	0.00%	0.00%	0.00%

Total expenses⁵	1.04%	1.03%	1.02%	1.04%	1.03%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses	1.04%⁶	1.03%⁶	1.02%⁶	1.04%⁶	1.03%⁶

Portfolio turnover rate	33%	44%	43%	49%	37%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.04	%
Year Ended December 31, 2015	1.03	%
Year Ended December 31, 2014	1.02	%
Year Ended December 31, 2013	1.04	%
Year Ended December 31, 2012	1.03	%

6. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

14 OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Main Street Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

15 OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$13,437,974		$23,414,574		$—		$349,108,561

1. During the reporting period, the Fund utilized $2,513,988 of capital loss carryforward to offset capital gains realized in that fiscal year.

2. During the previous reporting period, the Fund utilized $2,513,988 of capital loss carryforward to offset capital gains realized in that fiscal year.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Paid-in Capital	Reduction to Accumulated Net Investment Income		Reduction to Accumulated Net Realized Gain on Investments³

$2,777,522		$218,089		$2,559,433

3. $2,778,017, all of which was long-term capital gain, was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	16,035,719	$	39,268,736
Long-term capital gain		140,967,871		167,939,333

Total	$	157,003,590	$	207,208,069


Federal tax cost of securities	$	908,915,285

Gross unrealized appreciation	$	359,226,894

Gross unrealized depreciation		(10,118,333)

Net unrealized appreciation	$	349,108,561

16 OPPENHEIMER MAIN STREET FUND/VA

2. Significant Accounting Policies (Continued)

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the

17 OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	134,171,211	$	—	$	—	$	134,171,211
Consumer Staples		120,489,704		—		—		120,489,704
Energy		90,264,925		—		—		90,264,925
Financials		267,797,626		—		—		267,797,626
Health Care		171,504,121		—		—		171,504,121
Industrials		147,788,468		—		—		147,788,468
Information Technology		229,414,267		—		—		229,414,267
Materials		27,254,022		—		—		27,254,022
Telecommunication Services		25,921,328		—		—		25,921,328
Utilities		25,801,119		6,488,105		—		32,289,224
Investment Company		11,146,627		—		—		11,146,627

Total Assets	$	1,251,553,418	$	6,488,105	$	—	$	1,258,041,523

4. Investments and Risks

18 OPPENHEIMER MAIN STREET FUND/VA

4. Investments and Risks (Continued)

unaffiliated money market funds.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount

Non-Service Shares
Sold		1,123,635		$	31,497,254			517,352		$	15,973,699
Dividends and/or distributions reinvested		2,522,303			66,336,562			2,966,041			86,816,030
Redeemed		(4,296,043	)		(118,322,768	)		(2,414,970	)		(75,495,171	)

Net increase (decrease)		(650,105	)	$	(20,488,952	)		1,068,423		$	27,294,558

19 OPPENHEIMER MAIN STREET FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Shares of Beneficial Interest (Continued)


	Year Ended December 31, 2016					Year Ended December 31, 2015
	Shares			Amount		Shares			Amount

Service Shares
Sold		4,774,619		$	132,212,797		1,895,395		$	56,747,875
Dividends and/or distributions reinvested		3,477,830			90,667,028		4,144,304			120,392,039
Redeemed		(5,466,756	)		(152,205,519)		(5,534,911	)		(170,576,335)

Net increase		2,785,693		$	70,674,306		504,788		$	6,563,579

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases	Sales

Investment securities	$399,117,010	$474,199,381

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $200 million			0.75%
Next $200 million			0.72
Next $200 million			0.69
Next $200 million			0.66
Next $200 million			0.60
Next $4 billion			0.58
Over $5 billion			0.56

The Fund’s effective management fee for the reporting period was 0.66% of average annual net assets before any applicable waivers.

20 OPPENHEIMER MAIN STREET FUND/VA

8. Fees and Other Transactions with Affiliates (Continued)

that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

9. Borrowings and Other Financing

10. Pending Litigation

21 OPPENHEIMER MAIN STREET FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Main Street Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Main Street Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

22 OPPENHEIMER MAIN STREET FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $3.47128 per share were paid to Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

23 OPPENHEIMER MAIN STREET FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Manind Govil, Benjamin Ram and Paul Larson, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other large blend funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses were higher than its peer group median and category median. The Board also considered that the Fund’s contractual management fee was lower than its category median and higher than its peer group median. The Board noted that the Adviser has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service Shares and 1.05% for Service Shares. This voluntary expense limitation may be amended or withdrawn at any time without prior notice to shareholders.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was

24 OPPENHEIMER MAIN STREET FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

25 OPPENHEIMER MAIN STREET FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

26 OPPENHEIMER MAIN STREET FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

27 OPPENHEIMER MAIN STREET FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.’s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Govil, Ram, Larson, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Manind Govil, Vice President (since 2009) Year of Birth: 1969		Senior Vice President, the Main Street Team Leader and a portfolio manager of the Sub-Adviser (since May 2009). Portfolio manager with RS Investment Management Co. LLC (October 2006-March 2009). Head of equity investments at The Guardian Life Insurance Company of America (August 2005-October 2006) when Guardian Life Insurance acquired an interest in RS Investment Management Co. LLC. Lead portfolio manager - large cap blend/core equity, co-head of equities and head of equity research (2001-July 2005), and was lead portfolio manager - core equity (April 1996-July 2005), at Mercantile Capital Advisers, Inc. A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Benjamin Ram, Vice President (since 2009) Year of Birth: 1972		Vice President of the Sub-Adviser (since May 2009); Senior Portfolio Manager of the Sub-Adviser (since January 2011) and Portfolio Manager of the Sub-Adviser (May 2009-December 2010). Sector manager for financial investments and a co portfolio manager for mid-cap portfolios with the RS Core Equity Team of RS Investment Management Co. LLC (October 2006-May 2009). Portfolio Manager of Mid Cap Strategies, Sector Manager Financials at The Guardian Life Insurance Company of America (January 2006-October 2006) when Guardian Life Insurance acquired an interest in RS Investment Management Co. LLC. Financial analyst (2003-2005), and co-portfolio manager (2005-2006) at Mercantile Capital Advisers, Inc.; bank analyst at Legg Mason Securities (2000-2003) and a senior financial analyst at the CitiFinancial division of Citigroup, Inc. (1997-2000). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Paul Larson, Vice President (since 2014) Year of Birth: 1971		Vice President of the Sub-Adviser (since January 2013). Prior to joining the Sub-Adviser, he was a portfolio manager and Chief Equity Strategist at Morningstar. He was previously an analyst at Morningstar covering the energy sector and oversaw the firm’s natural resources analysts. Prior to joining Morningstar in 2002, Mr. Larson was an analyst with The Motley Fool. A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

28 OPPENHEIMER MAIN STREET FUND/VA



Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

29 OPPENHEIMER MAIN STREET FUND/VA

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30 OPPENHEIMER MAIN STREET FUND/VA

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31 OPPENHEIMER MAIN STREET FUND/VA

OPPENHEIMER MAIN STREET FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and		OFI Global Asset Management, Inc.
Shareholder
Servicing Agent

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent		KPMG LLP
Registered
Public
Accounting
Firm

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO

December 31, 2016

ANNUAL REPORT

Listing of Top Holdings

Fund Performance Discussion

Financial Statements

PORTFOLIO MANAGERS: Matthew P. Ziehl, CFA, Raymond Anello, CFA, Raman Vardharaj, CFA, Joy Budzinski, Kristin Ketner, Magnus Krantz and Adam Weiner.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		5/1/98		18.05%		15.65%		7.72%
Service Shares		7/16/01		17.67		15.34		7.45
Russell 2000 Index				21.31		14.46		7.07

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


Korn/Ferry International			2.2%
On Assignment, Inc.			2.2
Prestige Brands Holdings, Inc.			2.1
MB Financial, Inc.			2.1
CACI International, Inc., Cl. A			1.9
Webster Financial Corp.			1.7
Sonic Corp.			1.7
Portland General Electric Co.			1.7
Group 1 Automotive, Inc.			1.6
BankUnited, Inc.			1.6

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

SECTOR ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of common stocks.

2 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

Fund Performance Discussion

During the reporting period, the Fund’s Non-Service shares produced a return of 18.05%. In comparison, the Fund underperformed the Russell 2000 Index (the “Index”), which returned 21.31%. The Fund underperformed the Index in the information technology, materials and industrials sectors, due to weaker relative stock selection. The Fund outperformed the Index in the health care, energy and utilities sectors, where stock selection benefited.

MARKET OVERVIEW

Markets were turbulent during the reporting period. However, despite the volatility, the Index and the Fund experienced gains, particularly after the November U.S. Presidential election. A large trend for the first half of 2016 was the demand for so-called “bond proxy stocks” with above average dividend yields. This trend was magnified post the Brexit vote as treasury yields, already at historic lows, were under further pressure and future interest rate hike expectations continued to be pushed further out. However, the market environment shifted over the third quarter of 2016, when the “risk-on” trade returned. This meant a sharp rebound in lower quality cyclicals, outperformance by smaller versus larger cap stocks, and a rotation away from more stable earnings and defensive-oriented higher dividend companies. This theme continued through year end.

The one-year reporting period saw the market driven by several important macroeconomic trends and events:

•

The U.S. election, which saw Republicans take the White House and maintain control of Congress.

•

Given above, significant policy changes are expected surrounding taxation, cross-border trade, regulatory burdens, and healthcare.

•

With these changes, a broad shift from monetary stimuli to inflationary fiscal stimuli.

•

Uncertainty over the pace of Federal Reserve interest rate hikes.

•

The U.S. dollar materially strengthening versus other currencies.

•

Continued slow but steady recovery in domestic consumer employment, wages and consumption.

•

Continued impact of Brexit and increased uncertainty for global markets as a result.

•

Competitive currency devaluations, including negative interest rates in a growing number of jurisdictions, thrusting the world economy into uncharted territory.

Second, we believe we have the skills to identify company management teams that are likely to successfully execute on their plans. Lastly, correctly valuing stocks and seeing what expectations the market is pricing in is also within our skillset. It is not by accident that we weight the portfolio more heavily towards companies that we believe have management teams that are executing (e.g. gaining market share, expanding profit margins), with at least reasonable stock valuations.

TOP INDIVIDUAL CONTRIBUTORS

Fund holdings that were contributors to performance this period included WellCare Health Plans, Inc., Burlington Stores, Inc. and MKS Instruments, Inc. WellCare is a managed care company for government-sponsored healthcare coverage, with a focus on Medicare and Medicaid programs. Investors reacted favorably over the first quarter of the year when the company updated its longer term growth goals of doubling its revenue within five years and attaining an after tax margin of at least 2%. WellCare also has a strong cash position and this, combined with a new credit facility, has increased deployable cash for potential acquisitions and accelerating growth. Burlington owns and operates branded apparel retail stores throughout the U.S. and Puerto Rico. During the fourth quarter of 2015 both weather and secular issues negatively impacted apparel retailers and department stores—pushing earnings down by 10%-15% for many. In contrast, Burlington executed extremely well and grew earnings despite being in the early stages of a transition to an off-price retail model. Management’s success in a challenging environment led to rising investor confidence and boosted the stock higher. MKS Instruments is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. During the reporting period, the company benefited from completing its acquisition of Newport Corporation, a worldwide leader in photonics solutions. MKS Instruments also reported several quarters of strong earnings.

3 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

TOP INDIVIDUAL DETRACTORS

Top detractors from performance included MDC Partners, Inc., Imperva, Inc. and Diplomat Pharmacy, Inc. We exited our position in these three stocks. Advertising agency, MDC Holdings, had a difficult year, and failed to meet revenue goals over its third quarter of 2016. Imperva develops protection software and services for databases and business applications. Over the first half of the period, positive quarterly results were overshadowed by a conservative outlook relative to lofty expectations, especially on bottom line earnings per share (EPS). Its shares fell again late in the period after reports indicated a hold put on the company’s potential sale. Shares of Diplomat Pharmacy fell after the company reported weak third quarter earnings.

STRATEGY & OUTLOOK

While bottom-up company research and stock selection continue to be central to our process and strategy, we do have some observations about the current environment. First, the U.S. economy continues its “slow and steady” growth. This is being driven by favorable employment and inflation data, while home prices and innovation also continue to help drive the economy higher. However, the potential for protectionist trade policies by the incoming Trump administration could cause global contagion by slowing global trade.

We believe the risks inherent to this market include the misallocation of capital, fueled by an environment of ongoing relatively low interest rates and possibly leading to “bubble-like” valuations for some companies. We intend to maintain our discipline around valuation. Additionally, while innovation is alive and well, and continuing to help generate economic growth, fundamental disruptions across market segments have been elevated. We continue to be focused on potential disruption risk to our companies.

We expect heightened uncertainty to return in the equity markets. Traditionally, during periods of economic uncertainty and heightened market volatility, investors favor stocks of higher quality companies—with greater consistency and stability of revenue and earnings—leading to relatively better stock performance of those companies. We think focusing on companies with economic moats and skilled management teams positions us well, should this environment come to pass. During times of economic volatility such companies frequently widen their lead over weaker competitors. We seek to invest in companies, characterized by these qualities, at compelling valuations and believe this disciplined approach is essential to generating superior long-term performance.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the Russell 2000 Index. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not

4 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,147.20	$	4.33
Service shares		1,000.00		1,145.10		5.68

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.11		4.07
Service shares		1,000.00		1,019.86		5.35


Class	Expense Ratios
Non-Service shares		0.80%
Service shares		1.05

6 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value
Common Stocks—98.1%
Consumer Discretionary—11.3%
Auto Components—1.2%
Visteon Corp.		158,250	$	12,713,805

Diversified Consumer Services—0.5%
Houghton Mifflin Harcourt Co.¹		506,420		5,494,657

Hotels, Restaurants & Leisure—4.3%
International Speedway Corp., Cl. A		52,728		1,940,391
Popeyes Louisiana Kitchen, Inc.¹		236,890		14,327,107
Sonic Corp.		676,740		17,940,377
Texas Roadhouse, Inc., Cl. A		250,230		12,071,095
				46,278,970

Media—0.7%
Madison Square Garden Co. (The), Cl. A¹		45,450		7,795,130

Specialty Retail—4.6%
Burlington Stores, Inc.¹		120,830		10,240,342
DSW, Inc., Cl. A		351,470		7,960,796
Group 1 Automotive, Inc.		221,800		17,287,092
Sally Beauty Holdings, Inc.¹		519,720		13,731,002
				49,219,232

Consumer Staples—1.8%
Beverages—0.8%
Boston Beer Co., Inc. (The), Cl. A¹		47,620		8,088,257

Food Products—1.0%
Pinnacle Foods, Inc.		205,350		10,975,958

Energy—4.7%
Energy Equipment & Services—0.6%
RigNet, Inc.¹		286,580		6,634,327

Oil, Gas & Consumable Fuels—4.1%
Cone Midstream Partners LP²		357,943		8,429,558
HollyFrontier Corp.		411,615		13,484,507
Matador Resources Co.¹		202,032		5,204,344
Noble Midstream Partners LP^1,2		185,706		6,685,416
Renewable Energy Group, Inc.¹		1,076,323		10,440,333
				44,244,158

Financials—23.2%
Capital Markets—1.0%
Stifel Financial Corp.¹		210,100		10,494,495

Commercial Banks—10.1%
BankUnited, Inc.		455,595		17,171,376
Berkshire Hills Bancorp, Inc.		217,310		8,007,873
Chemical Financial Corp.		194,376		10,529,348
Customers Bancorp, Inc.¹		217,140		7,777,955
FCB Financial Holdings, Inc., Cl. A¹		162,620		7,756,974
IBERIABANK Corp.		199,750		16,729,062
MB Financial, Inc.		464,990		21,961,478
Webster Financial Corp.		336,460		18,263,049
				108,197,115

Insurance—1.3%
James River Group Holdings Ltd.		325,230		13,513,307

Real Estate Investment Trusts (REITs)—7.6%
Brandywine Realty Trust		962,010		15,882,785
CYS Investments, Inc.		1,788,150		13,822,400
DiamondRock Hospitality Co.		1,069,410		12,330,297
DuPont Fabros Technology, Inc.		282,830		12,424,722
Four Corners Property Trust, Inc.		667,520		13,697,510
National Storage Affiliates Trust		577,426		12,743,792
				80,901,506

Real Estate Management & Development—0.8%
Realogy Holdings Corp.		320,880		8,256,242

Thrifts & Mortgage Finance—2.4%
Beneficial Bancorp, Inc.		410,630		7,555,592


	Shares		Value
Thrifts & Mortgage Finance (Continued)
Oritani Financial Corp.		688,900	$	12,916,875
WSFS Financial Corp.		113,710		5,270,458
				25,742,925

Health Care—12.0%
Biotechnology—2.0%
ACADIA Pharmaceuticals, Inc.¹		159,240		4,592,481
Axovant Sciences Ltd.¹		155,730		1,934,167
Clovis Oncology, Inc.¹		77,040		3,422,117
Exelixis, Inc.¹		99,340		1,481,159
Sage Therapeutics, Inc.¹		83,680		4,272,701
Ultragenyx Pharmaceutical, Inc.¹		80,860		5,685,267
				21,387,892

Health Care Equipment & Supplies—2.8%
NuVasive, Inc.¹		148,250		9,986,120
NxStage Medical, Inc.¹		438,980		11,505,666
Spectranetics Corp. (The)¹		330,390		8,094,555
				29,586,341

Health Care Providers & Services—3.4%
Addus HomeCare Corp.¹		110,400		3,869,520
Amedisys, Inc.¹		216,720		9,238,773
HealthSouth Corp.		305,900		12,615,316
WellCare Health Plans, Inc.¹		78,321		10,736,243
				36,459,852

Life Sciences Tools & Services—0.7%
VWR Corp.¹		287,860		7,205,136

Pharmaceuticals—3.1%
Akorn, Inc.¹		146,810		3,204,862
Intersect ENT, Inc.¹		298,050		3,606,405
Prestige Brands Holdings, Inc.¹		423,986		22,089,671
TherapeuticsMD, Inc.¹		752,150		4,339,905
				33,240,843

Industrials—20.1%
Aerospace & Defense—1.3%
Hexcel Corp.		127,070		6,536,481
Wesco Aircraft Holdings, Inc.¹		520,830		7,786,408
				14,322,889

Airlines—1.4%
Spirit Airlines, Inc.¹		251,150		14,531,539

Building Products—1.2%
Masonite International Corp.¹		197,600		13,002,080

Commercial Services & Supplies—4.9%
ABM Industries, Inc.		385,520		15,744,637
ACCO Brands Corp.¹		1,171,907		15,293,386
Advanced Disposal Services, Inc.¹		312,270		6,938,640
Matthews International Corp., Cl. A		187,440		14,404,764
				52,381,427

Construction & Engineering—1.9%
Dycom Industries, Inc.¹		127,400		10,228,946
KBR, Inc.		602,120		10,049,383
				20,278,329

Electrical Equipment—1.3%
Generac Holdings, Inc.¹		348,580		14,201,149

Machinery—1.9%
Greenbrier Cos., Inc. (The)		172,680		7,174,854
Manitowoc Co., Inc. (The)¹		910,770		5,446,405
Rexnord Corp.¹		413,810		8,106,538
				20,727,797

Professional Services—4.5%
Korn/Ferry International		813,461		23,940,157
On Assignment, Inc.¹		538,930		23,799,149
				47,739,306

7 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

STATEMENT OF INVESTMENTS Continued


	Shares		Value
Road & Rail—1.2%
Genesee & Wyoming, Inc., Cl. A¹		188,090	$	13,055,327

Trading Companies & Distributors—0.5%
SiteOne Landscape Supply, Inc.¹		162,700		5,650,571

Information Technology—16.1%
Electronic Equipment, Instruments, & Components—1.7%
SYNNEX Corp.		90,000		10,891,800
Vishay Intertechnology, Inc.		424,710		6,880,302
				17,772,102

Internet Software & Services—2.1%
j2 Global, Inc.		197,913		16,189,283
Yelp, Inc., Cl. A1		174,990		6,672,369
				22,861,652

IT Services—4.2%
Black Knight Financial Services, Inc., Cl. A¹		345,872		13,073,962
Booz Allen Hamilton Holding Corp., Cl. A		320,720		11,568,370
CACI International, Inc., Cl. A¹		159,030		19,767,429
				44,409,761

Semiconductors & Semiconductor Equipment—3.7%
Brooks Automation, Inc.		514,110		8,775,858
Cypress Semiconductor Corp.		540,941		6,188,365
MaxLinear, Inc., Cl. A¹		490,600		10,695,080
MKS Instruments, Inc.		225,050		13,367,970
				39,027,273

Software—4.4%
Guidewire Software, Inc.¹		172,400		8,504,492
Paylocity Holding Corp.¹		327,320		9,822,873
Pegasystems, Inc.		305,200		10,987,200


	Shares			Value
Software (Continued)
Proofpoint, Inc.¹		132,080		$	9,331,452
Zynga, Inc., Cl. A¹		3,240,230			8,327,391
					46,973,408

Materials—6.4%
Chemicals—0.8%
Ingevity Corp.¹		145,270			7,969,512

Construction Materials—1.1%
Summit Materials, Inc., Cl. A¹		474,454			11,287,261

Metals & Mining—2.0%
Century Aluminum Co.¹		607,180			5,197,461
Kaiser Aluminum Corp.		210,480			16,352,191
					21,549,652

Paper & Forest Products—2.5%
Boise Cascade Co.¹		444,750			10,006,875
PH Glatfelter Co.		698,500			16,687,165
					26,694,040

Utilities—2.5%
Electric Utilities—1.7%
Portland General Electric Co.		408,170			17,686,006

Gas Utilities—0.8%
Suburban Propane Partners LP²		278,235			8,363,744
Total Common Stocks (Cost $817,823,149)					1,046,914,973



Investment Company—2.8%
Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^3,4(Cost $30,101,780)		30,101,780			30,101,780
Total Investments, at Value (Cost $847,924,929)		100.9	%		1,077,016,753
Net Other Assets (Liabilities)		(0.9	)		(9,552,101	)
Net Assets		100.0	%	$	1,067,464,652

Footnotes to Statement of Investments

1. Non-income producing security.

2. Security is a Master Limited Partnership.

3. Rate shown is the 7-day yield at period end.


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016
Oppenheimer Institutional Government Money Market Fund, Cl. E^a		14,384,001		330,528,421		314,810,642		30,101,780

					Value		Income
Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	30,101,780	$	78,925

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

See accompanying Notes to Financial Statements.

8 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $817,823,149)	$	1,046,914,973
Affiliated companies (cost $30,101,780)		30,101,780
		1,077,016,753
Cash		978,993
Receivables and other assets:
Dividends		1,078,371
Shares of beneficial interest sold		434,278
Investments sold		40,192
Other		50,985
Total assets		1,079,599,572

Liabilities
Payables and other liabilities:
Investments purchased		10,540,607
Shares of beneficial interest redeemed		1,289,385
Distribution and service plan fees		195,531
Trustees’ compensation		46,347
Shareholder communications		37,194
Other		25,856
Total liabilities		12,134,920
Net Assets	$	1,067,464,652



Composition of Net Assets
Par value of shares of beneficial interest	$	44,857
Additional paid-in capital		776,525,265
Accumulated net investment income		5,127,532
Accumulated net realized gain on investments and foreign currency transactions		56,675,174
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		229,091,824
Net Assets	$	1,067,464,652



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $145,427,852 and 6,040,539 shares of beneficial interest outstanding)		$24.08
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $922,036,800 and 38,816,908 shares of beneficial interest outstanding)		$23.75

See accompanying Notes to Financial Statements.

9 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $17,147)	$	15,093,669
Affiliated companies		78,925
Interest		96
Total investment income		15,172,690

Expenses
Management fees		6,726,921
Distribution and service plan fees:
Service shares		2,125,027
Transfer and shareholder servicing agent fees:
Non-Service shares		130,851
Service shares		850,630
Shareholder communications:
Non-Service shares		13,751
Service shares		89,853
Trustees’ compensation		40,081
Borrowing fees		17,535
Custodian fees and expenses		5,004
Other		86,991
Total expenses		10,086,644
Less reduction to custodian expenses		(474	)
Less waivers and reimbursements of expenses		(90,251	)
Net expenses		9,995,919

Net Invest’ment Income		5,176,771


Realized and Unrealized Gain (Loss)
Net realized gain on:
Investment transactions in unaffiliated companies		64,005,144
Foreign currency transactions		3,148
Net realized gain		64,008,292
Net change in unrealized appreciation/depreciation on:
Investment transactions		97,917,025
Translation of assets and liabilities denominated in foreign currencies		(6	)
Net change in unrealized appreciation/depreciation		97,917,019

Net Increase in Net Assets Resulting from Operations	$	167,102,082

See accompanying Notes to Financial Statements.

10 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015
Operations
Net investment income	$	5,176,771	$	2,875,881
Net realized gain		64,008,292		41,953,892
Net change in unrealized appreciation/depreciation		97,917,019		(107,664,132)
Net increase (decrease) in net assets resulting from operations		167,102,082		(62,834,359)

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(682,044)		(1,186,413)
Service shares		(2,155,681)		(5,919,665)
		(2,837,725)		(7,106,078)

Distributions from net realized gain:
Non-Service shares		(5,056,400)		(19,582,501)
Service shares		(33,184,812)		(137,100,829)
		(38,241,212)		(156,683,330)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(467,642)		21,318,007
Service shares		(43,913,591)		86,089,174
		(44,381,233)		107,407,181

Net Assets
Total increase (decrease)		81,641,912		(119,216,586)
Beginning of period		985,822,740		1,105,039,326
End of period (including accumulated net investment income of $5,127,532 and $2,764,432, respectively)	$	1,067,464,652	$	985,822,740

See accompanying Notes to Financial Statements.

11 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$21.32		$26.56		$27.80		$20.14		$17.17
Income (loss) from investment operations:
Net investment income¹		0.16		0.12		0.26		0.16		0.21
Net realized and unrealized gain (loss)		3.55		(1.28)		2.74		8.01		2.87
Total from investment operations		3.71		(1.16)		3.00		8.17		3.08
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.11)		(0.23)		(0.25)		(0.22)		(0.11)
Distributions from net realized gain		(0.84)		(3.85)		(3.99)		(0.29)		0.00
Total dividends and/or distributions to shareholders		(0.95)		(4.08)		(4.24)		(0.51)		(0.11)
Net asset value, end of period		$24.08		$21.32		$26.56		$27.80		$20.14


Total Return, at Net Asset Value²		18.05%		(5.90)%		11.93%		41.01%		17.99%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$145,428		$129,104		$136,402		$134,692		$87,267
Average net assets (in thousands)		$130,889		$134,932		$133,864		$113,522		$83,790
Ratios to average net assets:³
Net investment income		0.74%		0.49%		0.99%		0.67%		1.09%
Expenses excluding specific expenses listed below		0.81%		0.80%		0.80%		0.81%		0.83%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%
Total expenses⁵		0.81%		0.80%		0.80%		0.81%		0.83%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80%		0.80%⁶		0.79%		0.80%		0.80%
Portfolio turnover rate		65%		43%		65%		60%		92%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	0.81	%
Year Ended December 31, 2015	0.80	%
Year Ended December 31, 2014	0.80	%
Year Ended December 31, 2013	0.81	%
Year Ended December 31, 2012	0.83	%

6. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

12 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$21.05		$26.26		$27.53		$19.96		$17.02
Income (loss) from investment operations:
Net investment income¹		0.10		0.06		0.19		0.10		0.15
Net realized and unrealized gain (loss)		3.49		(1.25)		2.71		7.93		2.85
Total from investment operations		3.59		(1.19)		2.90		8.03		3.00
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.05)		(0.17)		(0.18)		(0.17)		(0.06)
Distributions from net realized gain		(0.84)		(3.85)		(3.99)		(0.29)		0.00
Total dividends and/or distributions to shareholders		(0.89)		(4.02)		(4.17)		(0.46)		(0.06)
Net asset value, end of period		$23.75		$21.05		$26.26		$27.53		$19.96


Total Return, at Net Asset Value²		17.67%		(6.09)%		11.66%		40.62%		17.67%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$922,037		$856,719		$968,637		$990,168		$849,920
Average net assets (in thousands)		$850,883		$927,514		$957,874		$935,083		$836,487
Ratios to average net assets:³
Net investment income		0.49%		0.24%		0.75%		0.43%		0.82%
Expenses excluding specific expenses listed below		1.06%		1.05%		1.05%		1.06%		1.08%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%
Total expenses⁵		1.06%		1.05%		1.05%		1.06%		1.08%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05%		1.05%⁶		1.04%		1.05%		1.05%
Portfolio turnover rate		65%		43%		65%		60%		92%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.06	%
Year Ended December 31, 2015	1.05	%
Year Ended December 31, 2014	1.05	%
Year Ended December 31, 2013	1.06	%
Year Ended December 31, 2012	1.08	%

6. Waiver was less than 0.005%.

See accompanying Notes to Financial Statements.

13 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Main Street Small Cap Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

14 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

2. Significant Accounting Policies (Continued)

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Undistributed

Net Investment

Income

Undistributed
Long-Term
Gain

Accumulated
Loss
Carryforward^1,2

Net Unrealized
Appreciation
Based on cost of
Securities and
Other Investments
for Federal Income
Tax Purposes

$5,169,716

$58,941,215

$—

$226,829,945

1. During the reporting period, the Fund did not utilize any capital loss carryforward.

2. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.

Increase

to Paid-in Capital

Increase

to Accumulated
Net Investment
Income

Reduction

to Accumulated Net
Realized Gain

on Investments¹

$5,808,947

$24,054

$5,833,001

1. $5,808,478, all of which was long-term capital gain, was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015
Distributions paid from:
Ordinary income	$	2,837,725	$	11,136,711
Long-term capital gain		38,241,212		152,652,697

Total	$	41,078,937	$	163,789,408


Federal tax cost of securities			$ 850,186,808

Gross unrealized appreciation			$ 242,104,432
Gross unrealized depreciation			(15,274,487)

Net unrealized appreciation			$ 226,829,945

15 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the

16 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

3. Securities Valuation (Continued)

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	121,501,794	$	—	$	—	$	121,501,794
Consumer Staples		19,064,215		—		—		19,064,215
Energy		50,878,485		—		—		50,878,485
Financials		247,105,590		—		—		247,105,590
Health Care		127,880,064		—		—		127,880,064
Industrials		215,890,414		—		—		215,890,414
Information Technology		171,044,196		—		—		171,044,196
Materials		67,500,465		—		—		67,500,465
Utilities		26,049,750		—		—		26,049,750
Investment Company		30,101,780		—		—		30,101,780

Total Assets	$	1,077,016,753	$	—	$	—	$	1,077,016,753

4. Investments and Risks

17 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

4. Investments and Risks (Continued)

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares			Amount
Non-Service Shares
Sold		1,207,275	$	26,014,115		1,409,497		$	33,342,939
Dividends and/or distributions reinvested		272,999		5,738,444		876,695			20,768,914
Redeemed		(1,493,942)		(32,220,201)		(1,368,306	)		(32,793,846)

Net increase (decrease)		(13,668)	$	(467,642)		917,886		$	21,318,007


Service Shares
Sold		3,595,856	$	73,971,132		3,720,118		$	87,937,386
Dividends and/or distributions reinvested		1,701,517		35,340,493		6,109,352			143,020,494
Redeemed		(7,186,807)		(153,225,216)		(6,013,134	)		(144,868,706)

Net increase (decrease)		(1,889,434)	$	(43,913,591)		3,816,336		$	86,089,174

18 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales
Investment securities	$	625,494,811	$	705,014,873

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $200 million			0.75%
Next $200 million			0.72
Next $200 million			0.69
Next $200 million			0.66
Next $200 million			0.60
Next $4 billion			0.58
Over $5 billion			0.56

The Fund’s effective management fee for the reporting period was 0.69% of average annual net assets before any applicable waivers.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $9,453 and $61,665 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

19 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

9. Borrowings and Other Financing

10. Pending Litigation

20 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Main Street Small Cap Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Main Street Small Cap Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMGLLP

Denver, Colorado

February 15, 2017

21 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $0.83744 per share were paid to Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

22 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Matthew Ziehl, Raymond Anello, Raman Vardharaj, Joy Budzinski, Kristin Ketner, Magnus Krantz and Adam Weiner, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other small blend funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s contractual management fee and total expenses were lower than their respective peer group medians and category medians. The Board also considered that the Adviser has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service Shares and 1.05% for Service Shares. This voluntary expense limitation may be amended or withdrawn at any time without prior notice to shareholders.

23 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).

24 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

25 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

26 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Ziehl, Vardharaj, Anello, Krantz, Weiner, Mss. Lo Bessette, Budzinski, Ketner, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Matthew P. Ziehl, Vice President (since 2009) Year of Birth: 1967		Vice President and Senior Portfolio Manager of the Sub-Adviser (since May 2009). Portfolio manager with RS Investment Management Co. LLC (October 2006-May 2009); Managing Director at The Guardian Life Insurance Company (December 2001-October 2006) when Guardian Life Insurance acquired an interest in RS Investment Management Co. LLC. Team leader and co portfolio manager with Salomon Brothers Asset Management, Inc. for small growth portfolios (January 2001-December 2001). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Raman Vardharaj, Vice President (since 2009) Year of Birth: 1971		Vice President and portfolio manager of the Sub-Adviser (since May 2009). Sector manager and a senior quantitative analyst creating stock selection models, monitoring portfolio risks and analyzing portfolio performance across the RS Core Equity Team of RS Investment Management Co. LLC (October 2006-May 2009). Quantitative analyst at The Guardian Life Insurance Company of America (1998-October 2006) when Guardian Life Insurance acquired an interest in RS Investment Management Co. LLC. A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Raymond Anello, Vice President (since 2011) Year of Birth: 1964		Vice President of the Sub-Adviser (since May 2009) and a portfolio manager of the Sub-Adviser (since April 2011). Sector manager for energy and utilities for the Sub-Adviser’s Main Street Investment Team (since May 2009). Portfolio Manager of the RS All Cap Dividend product (from its inception in July 2007-April 2009) and served as a sector manager for energy and utilities for various other RS Investments products. Guardian Life Insurance Company (October 1999) and transitioned to RS Investments (October 2006) in connection with Guardian Life Insurance Company’s acquisition of an interest in RS Investments. Mr. Anello served as an equity portfolio manager/analyst and high yield analyst at Orion Capital (1995-1998) and an assistant portfolio manager at the Garrison Bradford portfolio management firm (1988-1995). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

27 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


Joy Budzinski, Vice President (since 2012) Year of Birth: 1968		Vice President of the Sub-Adviser (since May 2009) and a portfolio manager of the Sub-Adviser (since November 2012). Sector manager for healthcare for the Sub-Adviser’s Main Street Investment Team (since May 2009). Healthcare sector manager at RS Investment and Guardian Life Insurance Company. Guardian Life Insurance Company (August 2006) and transitioned to RS Investments (October 2006) in connection with Guardian Life Insurance Company’s acquisition of an interest in RS Investments. Senior equity analyst at Bank of New York BNY Asset Management (2001 -2006); portfolio manager and analyst at Alliance of America (1999-2001); portfolio manager and analyst at JP Morgan Chase (1993-1997); analyst at Prudential Investments (1997-1998). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Kristin Ketner, Vice President (since 2012) Year of Birth: 1965		Vice President of the Sub-Adviser (since June 2009) and a portfolio manager of the Sub-Adviser (since November 2012). Sector manager for consumer discretionary and consumer staples for the Sub-Adviser’s Main Street Investment Team (since May 2009). Sector manager at RS Investment and Guardian Life Insurance Company. Guardian Life Insurance Company in February 2006 and transitioned to RS Investments in October 2006 in connection with Guardian Life Insurance Company’s acquisition of an interest in RS Investments. Portfolio Manager at Solstice Equity Management (2002-2005); retail analyst at Goldman Sachs (1999-2001); Director of Strategy and Integration at Staples (1997-1999); investment banker at Merrill Lynch (1987-1992 and 1995-1997) and Montgomery Securities (1994-1995). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Magnus Krantz, Vice President (since 2012) Year of Birth: 1967		Vice President of the Sub-Adviser (since May 2009) and a portfolio manager of the Sub-Adviser (since November 2012); sector manager for technology for the Sub-Adviser’s Main Street Investment Team (since May 2009). Prior to joining the Sub-Adviser, Mr. Krantz was a sector manager at RS Investment and Guardian Life Insurance Company. Mr. Krantz joined Guardian Life Insurance Company in December 2005 and transitioned to RS Investments in October 2006 in connection with Guardian Life Insurance Company’s acquisition of an interest in RS Investments. Portfolio manager and analyst at Citigroup Asset Management (1998-2005) and as a consultant at Price Waterhouse (1997-1998). He also served as product development engineer at Newbridge Networks (1993-1996) and as a software engineer at Mitel Corporation (1990-1993). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Adam Weiner, Vice President (since 2012) Year of Birth: 1969		Vice President of the Sub-Adviser (since May 2009) and a portfolio manager of the Sub-Adviser (since November 2012). Sector manager for industrials and materials for the Sub-Adviser’s Main Street Investment Team (since May 2009). Sector manager at RS Investment for industrials and materials (January 2007-April 2009). Director and senior equity analyst at Credit Suisse Asset Management (CSAM) (September 2004-December 2006). Equity analyst at Credit Suisse First Boston 2004-2006 (buy-side) and 1999-2004 (sell-side) and Morgan Stanley (1996-1999); internal auditor at Dun and Bradstreet (1992-1996). Budget analyst, Information Resources Division of the Executive Office of the President (1990-1992). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

28 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

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31 OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

OPPENHEIMER MAIN STREET SMALL CAP FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO

December 31, 2016

LOGO

ANNUAL REPORT

Listing of Top Holdings

Fund Performance Discussion

Financial Statements

*Prior to April 29, 2016, the Fund was named Oppenheimer Money Fund/VA

PORTFOLIO MANAGERS: Christopher Proctor, CFA and Adam S. Wilde, CFA

Current Yield

For the 7-Day Period Ended 12/31/16

With Compounding 0.01%

Without Compounding 0.01%

For the 12-Month Period Ended 12/31/16

With Compounding 0.01%

Without Compounding 0.01%

The performance data quoted represents past performance, which does not guarantee future results. Yields include dividends in a hypothetical investment for the periods shown. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The yields take into account voluntary fee waivers and/or expense reimbursements, without which yields would have been lower. Some of these undertakings may be modified at any time, as indicated in the prospectus. There is no guarantee that the Fund will maintain a positive yield. The Fund’s performance should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s performance does not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.


PORTFOLIO ALLOCATION
U.S. Government Agencies			76.7%
Repurchase Agreements			22.7
U.S. Government Obligations			0.6

Portfolio holdings and allocations are subject to change. Percentages

are as of December 31, 2016, and are based on the total market value

of investments.

2 OPPENHEIMER GOVERNMENT MONEY FUND/VA

Fund Update

On April 29, 2016, the Fund converted from Oppenheimer Money Fund/VA to Oppenheimer Government Money Fund/VA.¹ As such, the Fund now operates as a government money market fund, which requires that it invest 99.5% or more of its total assets in cash, government securities and/or repurchase agreements that are collateralized solely by government securities or cash. As a government money market fund, the Fund invests primarily in government agency securities, such as Federal Home Loan Bank System obligations, and short-term repurchase agreements collateralized by agency and treasury securities. Under the new rules adopted by the Securities and Exchange Commission (“SEC”), the Fund posts current and historical Fund metrics on the oppenheimerfunds.com website. Among these are the market based NAV, Daily Liquid Assets, Weekly Liquid Assets and Fund Net Inflows or Outflows.

FUND PERFORMANCE DISCUSSION

Throughout the reporting period, the Fund continued to offer very strong liquidity and a stable $1.00 net asset value (NAV), while providing competitive income. Throughout the year, short-term government market rates began to rise in anticipation of a Federal Reserve (the “Fed”) hike. The Fund benefited from these upticks as it was able to reinvest at higher rates. The Fund benefited further in December when the Fed followed through and increased the Federal Funds rate.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

1. In connection with new rules governing money market funds implemented in October 2016, effective April 29, 2016, Oppenheimer Money Fund/VA changed its name to Oppenheimer Government Money Fund/VA, and made changes to its investment strategies that enable it to operate as a government money market fund.

3 OPPENHEIMER GOVERNMENT MONEY FUND/VA

Fund Expenses

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During 6 Months Ended December 31, 2016” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes.

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio, and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
	$	1,000.00	$	1,000.10		$ 1.61

Hypothetical
(5% return before expenses)
		1,000.00		1,023.53		1.63

Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). This annualized expense ratio, excluding indirect expenses from affiliated funds, based on the 6-month period ended December 31,

2016 is as follows:

Expense Ratio

0.32%

The expense ratio reflects voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund’s Manager. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. The “Financial Highlights” table in the Fund’s financial statements, included in this report, also shows the gross expense ratio, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

4 OPPENHEIMER GOVERNMENT MONEY FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Maturity Date*		Final Legal Maturity Date**		Principal Amount		Value
U.S. Government Agencies—76.6%
Fannie Mae, 0.41%		1/17/17		1/17/17	$	4,000,000	$	3,999,271
Federal Farm Credit Bank:
0.74%¹		1/3/17		3/22/17		1,000,000		999,757
0.766%¹		1/27/17		11/27/17		2,000,000		2,000,844
Federal Home Loan Bank:
0.295%		1/3/17		1/3/17		3,000,000		2,999,951
0.34%		1/10/17		1/10/17		5,000,000		4,999,575
0.36%		1/5/17		1/5/17		20,000,000		19,999,200
0.364%		1/27/17		1/27/17		5,000,000		4,998,686
0.37%		2/3/17		2/3/17		5,000,000		4,998,304
0.391%		2/24/17		2/24/17		3,000,000		2,998,245
0.393%		1/12/17		1/12/17		25,800,000		25,796,900
0.407%		1/11/17		1/11/17		36,200,000		36,195,905
0.41%		1/6/17		1/6/17		12,100,000		12,099,311
0.439%		2/8/17		2/8/17		13,000,000		12,993,983
0.444%		1/20/17		1/20/17		14,630,000		14,626,577
0.451%		1/4/17		1/4/17		25,000,000		24,999,060
0.452%		1/13/17		1/13/17		34,900,000		34,894,747
0.457%		1/25/17		1/25/17		30,000,000		29,990,867
0.461%¹		1/27/17		7/27/17		2,000,000		1,999,655
0.464%		1/18/17		1/18/17		37,800,000		37,791,714
0.468%		3/1/17		3/1/17		10,000,000		9,992,338
0.476%		1/24/17		1/24/17		25,050,000		25,042,381
0.501%		2/9/17		2/9/17		3,000,000		2,998,375
0.51%		2/10/17		2/10/17		9,603,000		9,597,558
0.52%		2/15/17		2/15/17		20,000,000		19,987,000
0.541%		3/28/17		3/28/17		10,000,000		9,987,100
0.551%		2/22/17		2/22/17		4,299,000		4,295,585
0.622%		6/2/17		6/2/17		3,000,000		2,992,147
0.636%¹		1/24/17		4/24/17		3,000,000		3,000,000
0.675%¹		1/5/17		9/5/17		1,135,000		1,135,712
0.722%¹		1/7/17		12/7/17		3,000,000		3,003,285
0.847%¹		2/9/17		8/9/17		6,000,000		6,009,962
0.905%¹		2/25/17		8/25/17		2,000,000		2,004,168
Freddie Mac:
0.501%		5/16/17		5/16/17		5,000,000		4,990,625
0.75%		7/14/17		7/14/17		1,000,000		1,000,100
Tennessee Valley Authority:
0.498%		1/10/17		1/10/17		10,000,000		9,998,755
0.50%		1/3/17		1/3/17		20,000,000		19,999,444
Total U.S. Government Agencies (Cost $415,417,087)								415,417,087
U.S. Government Obligations—0.6%
United States Treasury Bills, 0.489%		4/6/17		4/6/17		2,000,000		1,997,427
United States Treasury Nts., 0.625%		8/31/17		8/31/17		1,000,000		999,093
Total U.S. Government Obligations (Cost $2,996,520)								2,996,520
Repurchase Agreements—22.7%
Repurchase Agreements²(Cost $123,000,000)						123,000,000		123,000,000
Total Investments, at Value (Cost $541,413,607)						99.9%		541,413,607
Net Other Assets (Liabilities)						0.1		556,318
Net Assets						100.0%	$	541,969,925

Footnotes to Statement of Investments

Short-term notes and direct bank obligations are generally traded on a discount basis; the interest rate shown is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown.

*. The Maturity Date represents the date used to calculate the Fund’s weighted average maturity as determined under Rule 2a-7.

**. If different from the Maturity Date, the Final Legal Maturity Date includes any maturity date extensions which may be affected at the option of the issuer or unconditional payments of principal by the issuer which may be affected at the option of the Fund, and represents the date used to calculate the Fund’s weighted average life as determined under Rule 2a-7.

1. Represents the current interest rate for a variable or increasing rate security.

2. Repurchase agreements:

5 OPPENHEIMER GOVERNMENT MONEY FUND/VA

STATEMENT OF INVESTMENTS Continued

Footnotes to Statement of Investments (Continued)


Counterparty	Lending Rate		Settlement Date		Maturity Date		Principal Amount		Collateralized By	Collateral Received, at Value^a			Repurchase Agreements, at Value		Repurchase Agreement Proceeds to be Received^a
Credit Agricole Corp. & Investment Bank		0.52%		12/30/16		1/3/17		$5,000,000	U.S. Treasury Bonds, 1.375%, 2/15/44		$(5,100,351	)		$5,000,000		$5,000,344
Deutsche Bank Securities, Inc.		0.46		12/30/16		1/3/17		12,000,000	U.S. Agency Mortgages, 1.75%, 6/20/19		(12,241,029	)		12,000,000		12,001,009
Deutsche Bank Securities, Inc.		0.54		12/20/16		1/10/17		5,000,000	U.S. Agency Mortgages, 1%, 3/8/17		(5,101,431	)		5,000,000		5,001,403
Deutsche Bank Securities, Inc.		0.54		12/23/16		1/13/17		2,000,000	U.S. Agency Mortgages, 1%, 3/8/17		(2,041,175	)		2,000,000		2,001,152
Deutsche Bank Securities, Inc.		0.55		12/19/16		1/5/17		2,000,000	U.S. Agency Mortgages, 1%, 3/8/17		(2,041,175	)		2,000,000		2,001,152
Deutsche Bank Securities, Inc.		0.57		12/27/16		1/17/17		1,000,000	U.S. Agency Mortgages, 1%, 3/8/17		(1,021,089	)		1,000,000		1,001,068
RBC Dominion Securities, Inc.		0.50		12/30/16		1/3/17		12,000,000	U.S. Agency Mortgages, 3.50%, 4/20/46-6/20/46		(12,240,680	)		12,000,000		12,000,667
RBC Dominion Securities, Inc.		0.52		12/23/16		1/3/17		2,000,000	U.S. Agency Mortgages, 3%, 7/20/46		(2,040,325	)		2,000,000		2,000,319
RBC Dominion Securities, Inc.		0.53		12/19/16		1/4/17		2,000,000	U.S. Agency Mortgages, 4%, 6/20/44		(2,040,451	)		2,000,000		2,000,442
RBC Dominion Securities, Inc.		0.54		12/28/16		1/4/17		10,000,000	U.S. Agency Mortgages, 3.50%-4%, 1/20/44-4/20/46		(10,200,918	)		10,000,000		10,000,900
South Street Securities, Inc.		0.50		12/30/16		1/3/17		50,000,000	U.S. Agency Mortgages, 0.827%-3.975%, 11/1/17-1/25/45		(51,747,934	)		50,000,000		50,002,778
TD Securities (USA) LLC		0.59		12/27/16		1/3/17		20,000,000	U.S. Treasury Bonds, 3%, 11/15/45		(20,402,430	)		20,000,000		20,002,383
											$(126,218,988	)		$123,000,000		$123,013,617

a. Includes accrued interest.

The following issuer is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the reporting period by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. There were no affiliate securities held by the Fund at period end. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions			Shares December 31, 2016
Oppenheimer Institutional Government Money Market Fund, Cl. E^a		131,359,385		126,653,654		258,013,039			—

								Income
Oppenheimer Institutional Government Money Market Fund, Cl. E^a							$		190,049

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

See accompanying Notes to Financial Statements.

6 OPPENHEIMER GOVERNMENT MONEY FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016


Assets
Investments, at value (cost $541,413,607)—see accompanying statement of investments	$	541,413,607
Cash		620,530
Receivables and other assets:
Shares of beneficial interest sold		76,640
Interest		26,263
Other		40,736
Total assets		542,177,776
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		128,794
Trustees’ compensation		35,363
Legal, auditing and other professional fees		24,034
Shareholder communications		14,289
Dividends		2,035
Other		3,336
Total liabilities		207,851
Net Assets	$	541,969,925



Composition of Net Assets
Par value of shares of beneficial interest	$	541,943
Additional paid-in capital		541,408,064
Accumulated net investment income		20,133
Accumulated net realized loss on investments		(215	)
Net Assets – applicable to 541,943,307 shares of beneficial interest outstanding	$	541,969,925



Net Asset Value, Redemption Price Per Share and Offering Price Per Share		$1.00

See accompanying Notes to Financial Statements.

7 OPPENHEIMER GOVERNMENT MONEY FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income

Interest	$	5,035,253

Dividends from affiliated companies		190,049

Total investment income		5,225,302

Expenses

Management fees		6,131,106

Transfer and shareholder servicing agent fees		1,477,875

Shareholder communications		66,269

Trustees’ compensation		85,299

Custodian fees and expenses		12,909

Other		339,355

Total expenses		8,112,813

Less reduction to custodian expenses		(7,838	)

Less waivers and reimbursements of expenses		(3,027,668)

Net expenses		5,077,307

Net Investment Income		147,995

Realized Loss		(215	)

Net Increase in Net Assets Resulting from Operations	$	147,780

See accompanying Notes to Financial Statements.

8 OPPENHEIMER GOVERNMENT MONEY FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015
Operations

Net investment income	$	147,995	$	114,454

Net realized gain (loss)		(215)		22,016

Net increase in net assets resulting from operations		147,780		136,470
Dividends and/or Distributions to Shareholders

Dividends from net investment income		(153,515)		(119,146)
Beneficial Interest Transactions

Net increase (decrease) in net assets resulting from beneficial interest transactions		(2,106,660,389)		2,133,322,061
Net Assets

Total increase (decrease)		(2,106,666,124)		2,133,339,385

Beginning of period		2,648,636,049		515,296,664

End of period (including accumulated net investment income of $20,133 and $25,655, respectively)	$	541,969,925	$	2,648,636,049

See accompanying Notes to Financial Statements.

9 OPPENHEIMER GOVERNMENT MONEY FUND/VA

FINANCIAL HIGHLIGHTS


	Year Ended December 31, 2016			Year Ended December 31, 2015			Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income¹		0.00	²		0.00	²		0.00	²		0.00	²		0.00	²
Net realized gain (loss)		(0.00	)²		0.00	²		0.00	²		0.00	²		0.00	²

Total from investment operations		0.00	²		0.00	²		0.00	²		0.00	²		0.00	²
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.00	)²		(0.00	)²		(0.00	)²		(0.00	)²		(0.00	)²
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00



Total Return, at Net Asset Value³		0.01%			0.01%			0.01%			0.01%			0.01%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	541,970		$	2,648,636		$	515,297		$	177,026		$	174,428
Average net assets (in thousands)	$	1,470,447		$	1,144,581		$	329,045		$	178,263		$	164,276
Ratios to average net assets:⁴
Net investment income		0.01%			0.01%			0.01%			0.01%			0.01%
Total expenses⁵		0.55%			0.53%			0.57%			0.61%			0.62%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.35%			0.19%			0.15%			0.22%			0.30%

1. Per share amounts calculated based on the average shares outstanding during the period.

2. Less than $0.005 per share.

4. Annualized for periods less than one full year.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:

See accompanying Notes to Financial Statements.

10 OPPENHEIMER GOVERNMENT MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Government Money Fund/VA, formerly Oppenheimer Money Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek income consistent with stability of principal. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. GAAP, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually but may be paid at other times to maintain the net asset value per share at $1.00.

Investment Income. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remains open for the three preceding fiscal reporting period ends. The Fund has analyzed its tax positions for the fiscal year ended December 31, 2016, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Fund’s financial statements.

Undistributed

Net Investment

Income

Undistributed

Long-Term

Gain

Accumulated

Loss

Carryforward^1,2,3

$60,163

$—

$215

1. At period end, the Fund had $215 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring
No expiration	$	215

2. During the reporting period, the Fund did not utilize any capital loss carryforwards.

3. During the previous reporting period, the Fund did not utilize any capital loss carryforwards.

11 OPPENHEIMER GOVERNMENT MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.

Increase

to Paid-in Capital

Reduction

to Accumulated

Net Investment

Income

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015
Distributions paid from:
Ordinary income	$	153,515	$	119,146

Money Market Fund Reform. In accordance with the Reform Rules, adopted by the Securities and Exchange Commission (SEC) in July 2014, the Fund’s name changed from Oppenheimer Money Fund/VA to Oppenheimer Government Money Fund/VA effective April 29, 2016. Additionally the Board of Trustees approved the adoption of a new non-fundamental investment policy requiring each Fund to invest 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully by cash and/or government securities.

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined under procedures approved by the Fund’s Board of Trustees.

12 OPPENHEIMER GOVERNMENT MONEY FUND/VA

3. Securities Valuation (Continued)

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
U.S. Government Agencies	$	—	$	415,417,087	$	—	$	415,417,087
U.S. Government Obligations		—		2,996,520		—		2,996,520
Repurchase Agreement		—		123,000,000		—		123,000,000

Total Assets	$	—	$	541,413,607	$	—	$	541,413,607

4. Investments and Risks

Fund may also invest in money market instruments directly or in other affiliated or unaffiliated money market funds. At period end, the Fund had no holdings in IGMMF.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

13 OPPENHEIMER GOVERNMENT MONEY FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

5. Market Risk Factors (Continued)

are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount
Sold		1,180,358,383		$	1,180,358,383			3,416,245,044		$	3,416,245,044
Dividends and/or distributions reinvested		159,576			159,576			112,387			112,387
Redeemed		(3,287,178,348	)		(3,287,178,348	)		(1,283,035,370	)		(1,283,035,370)
Net increase (decrease)		(2,106,660,389	)	$	(2,106,660,389	)		2,133,322,061		$	2,133,322,061

7. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $500 million			0.450%
Next $500 million			0.425
Next $500 million			0.400
Over $1.5 billion			0.375

The Fund’s effective management fee for the reporting period was 0.42% of average annual net assets before any applicable waivers.

Transfer Agent Fees. OFI Global (the “Transfer Agent”) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.

Waivers and Reimbursements of Expenses. The Manager has voluntarily undertaken to waive fees and/or reimburse expenses to the extent necessary to assist the Fund in attempting to maintain a positive yield. There is no guarantee that the Fund will maintain a positive yield. During the reporting period, the Manager waived fees and/or reimbursed the Fund $2,220,152.

The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding expenses incurred directly or indirectly by the Fund as a result of investments in other investment companies, wholly-owned subsidiaries and pooled investment vehicles; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.50%. As a result of this limitation, the Manager waived $762,661 for the reporting period.

The Manager is permitted to recapture previously waived and/or reimbursed fees in any given fiscal year if the recapture would not: 1) cause the Fund

14 OPPENHEIMER GOVERNMENT MONEY FUND/VA

7. Fees and Other Transactions with Affiliates (Continued)

to generate a negative daily yield, and 2) exceed amounts previously waived and/or reimbursed under this arrangement during the current and prior three fiscal years. The reimbursement to the Manager of such previous waivers and reimbursements would not include any portion of distribution and/or service fees. At period end, the following waived and/or reimbursed amounts are eligible for recapture:


Expiration Date

December 31, 2017	$	1,378,598
December 31, 2018		3,773,037
December 31, 2019		2,982,813

The Manager has not recaptured any previously waived and/or reimbursed amounts during the reporting period.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

8. Repurchase Agreements

In a repurchase transaction, a Fund buys a security and simultaneously sells it back to an approved institution for delivery on an agreed-upon future date. The resale price exceeds the purchase price by an amount that reflects an agreed-upon interest rate effective for the period during which the repurchase agreement is in effect. Approved institutions include U.S. commercial banks, U.S. branches of foreign banks or broker-dealers that have been designated as primary dealers in government securities. They must meet credit requirements set by the investment adviser from time to time. Repurchase agreements must be fully collateralized. However, if the seller fails to pay the repurchase price on the delivery date, a Fund may incur costs in disposing of the collateral and may experience losses if there is any delay in its ability to do so. If the default on the part of the seller is due to its bankruptcy, a Fund’s ability to liquidate the collateral may be delayed or limited.

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of period end:


Counterparty	Repurchase Agreement Proceeds to be Received ¹		Collateral (Received) / Pledged¹		Net Exposure²

Repurchase Agreements
Credit Agricole Corp. & Investment Bank	$	5,000,344		$ (5,100,351)	$	(100,007)
Deutsche Bank Securities, Inc.		12,001,009		(12,241,029)		(240,020)
Deutsche Bank Securities, Inc.		5,001,403		(5,101,431)		(100,028)
Deutsche Bank Securities, Inc.		2,001,152		(2,041,175)		(40,023)
Deutsche Bank Securities, Inc.		2,001,152		(2,041,175)		(40,023)
Deutsche Bank Securities, Inc.		1,001,068		(1,021,089)		(20,021)
RBC Dominion Securities, Inc.		12,000,667		12,240,680)		(240,013)
RBC Dominion Securities, Inc.		2,000,319		(2,040,325)		(40,006)
RBC Dominion Securities, Inc.		2,000,442		(2,040,451)		(40,009)
RBC Dominion Securities, Inc.		10,000,900		(10,200,918)		(200,018)
South Street Securities, Inc.		50,002,778		(51,747,934)		(1,745,156)
TD Securities (USA) LLC		20,002,383		(20,402,430)		(400,047)

	$	123,013,617

1.	Includes accrued interest.

2.	Net exposure represents the net receivable/payable that would be due from the counterparty in the event of default.

9. Pending Litigation

15 OPPENHEIMER GOVERNMENT MONEY FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Government Money Fund/VA, formerly Oppenheimer Money Fund/VA, (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 December 31, 2016, by correspondence with the custodian and brokers. 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Government Money Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

16 OPPENHEIMER GOVERNMENT MONEY FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

17 OPPENHEIMER GOVERNMENT MONEY FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Christopher Proctor and Adam Wilde, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other money market tax-free funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were equal to its peer group median and lower than its category median. The Board also considered that the Fund’s contractual management fee was lower than both its peer group median and its category median. The Board noted that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as a percentage of daily net assets, will not exceed the annual rate of 0.50%. This contractual expense limitation may not be amended or withdrawn until one year after the date of the Fund’s prospectus, unless approved by the Board. The Board also considered that the Adviser voluntarily agreed to waive fees to assist the Fund in attempting to maintain a positive yield, although there is no guarantee that the Fund will maintain a positive yield. This voluntary fee waiver may be amended or withdrawn at any time without prior notice to shareholders.

18 OPPENHEIMER GOVERNMENT MONEY FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

19 OPPENHEIMER GOVERNMENT MONEY FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

20 OPPENHEIMER GOVERNMENT MONEY FUND/VA

DISTRIBUTION SOURCES Unaudited

For any distribution that took place over the last six months of the Fund’s reporting period, the table below details, on a per-share basis, the percentage of the Fund’s total distribution payment amount that was derived from the following sources: net income, net profit from the sale of securities, and other capital sources. This information is based upon income and capital gains using generally accepted accounting principles as of the date of each distribution. Because the Fund is actively managed, the relative amount of the Fund’s total distributions derived from various sources over the calendar year may change. Please note that this information should not be used for tax reporting purposes as the tax character of distributable income may differ from the amounts used for this notification. You will receive IRS tax forms in the first quarter of each calendar year detailing the actual amount of the taxable and non-taxable portion of distributions paid to you during the tax year.

For the most current information, please go to oppenheimerfunds.com. Select your Fund, then the ‘Detailed’ tab; where ‘Dividends’ are shown, the Fund’s latest pay date will be followed by the sources of any distribution, updated daily.


Fund Name	Pay Date			Net Income		Net Profit from Sale		Other Capital Sources
Oppenheimer Government Money Fund/VA		7/15/16			95.9%		0.0%		4.1%
Oppenheimer Government Money Fund/VA		8/19/16			95.9%		0.0%		4.1%
Oppenheimer Government Money Fund/VA		9/16/16			95.9%		0.0%		4.1%
Oppenheimer Government Money Fund/VA		10/21/16			95.9%		0.0%		4.1%
Oppenheimer Government Money Fund/VA		11/18/16			95.9%		0.0%		4.1%
Oppenheimer Government Money Fund/VA		12/16/16	��		97.2%		0.0%		2.8%

21 OPPENHEIMER GOVERNMENT MONEY FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008-2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth: 1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

22 OPPENHEIMER GOVERNMENT MONEY FUND/VA


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992-2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth: 1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969-1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.’s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed-Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Messrs. Proctor, Wilde and Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Christopher Proctor, Vice President (since 2010) Year of Birth: 1968		Head of the Cash Strategies Team (since July 2013); Senior Vice President of the Sub-Adviser (since July 2013) and Senior Portfolio Manager of the Sub-Adviser (since January 2010). Vice President of the Sub-Adviser (August 2008-July 2013). Vice President at Calamos Asset Management (January 2007-March 2008) and Scudder-Kemper Investments (1999-2002). Managing Director and Co-Founder of Elmhurst Capital Management (June 2004-January 2007); Senior Manager of Research for Etrade Global Asset Management (2002-2004). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Adam S. Wilde, Vice President (since 2013) Year of Birth: 1978		Vice President of the Sub-Adviser (since May 2011) and a Portfolio Manager of the Sub-Adviser (since July 2013). He served as the head of credit research for the cash strategies team of the Sub-Adviser (from 2011 to 2013), and as an Assistant Vice President and senior research analyst of the Sub-Adviser (from 2008 to 2011). Mr. Wilde served as an intermediate research analyst of the Sub-Adviser (from 2007 to 2008) and served in other analyst roles of the Sub-Adviser (since 2002). Mr. Wilde joined the Sub-Adviser in 2001. A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

23 OPPENHEIMER GOVERNMENT MONEY FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub-Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

24 OPPENHEIMER GOVERNMENT MONEY FUND/VA

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25 OPPENHEIMER GOVERNMENT MONEY FUND/VA

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27 OPPENHEIMER GOVERNMENT MONEY FUND/VA

OPPENHEIMER GOVERNMENT MONEY FUND/VA

A Series of Oppenheimer Variable Account Funds



Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and		OFI Global Asset Management, Inc.
Shareholder
Servicing Agent
Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent		KPMG LLP
Registered
Public
Accounting
Firm

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		^© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO



		December 31, 2016

		ANNUAL REPORT Listing of Top Holdings Fund Performance Discussion Financial Statements

PORTFOLIO MANAGERS: Michael A. Mata, Krishna Memani and Hemant Baijal¹

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16²


	Inception Date	1-Year			5-Year			10-Year
Non-Service Shares	5/3/93		6.53	%		3.96	%		4.64	%
Service Shares	3/19/01		6.27			3.67			4.37
Bloomberg Barclays U.S. Aggregate Bond Index			2.65			2.23			4.34
Citigroup World Government Bond Index			1.60			-0.99			2.99
Citigroup Non-U.S. World Government Bond Index			1.81			-1.94			2.54
J.P. Morgan Domestic High Yield Index			18.91			7.59			7.74
Reference Index			7.07			2.19			4.75

Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance and expense ratios may be lower or higher than the data quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns include changes in share price and reinvested distributions but do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

1. As referenced in the Prospectus supplement dated January 3, 2017, effective April 28, 2017, the Portfolio Managers will be: Michael Mata, Krishna Memani, Ruta Ziverte, and Chris Kelly, CFA.

2. As referenced in the Prospectus supplement dated January 3, 2017, effective April 28, 2017, all references to the “Reference Index,” the “Citigroup Non-U.S. World Government Bond Index,” the “JP Morgan Domestic High Yield Index,” and the “Citigroup World Government Bond Index” are deleted from the Prospectus entirely.

2 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

TOP HOLDINGS AND ALLOCATIONS


PORTFOLIO ALLOCATION

Non-Convertible Corporate Bonds and Notes		45.0%

Investment Companies
Oppenheimer Institutional Government Money Market Fund		2.2
Oppenheimer Master Event-Linked Bond Fund, LLC		2.3
Oppenheimer Master Loan Fund, LLC		11.9
Oppenheimer Ultra-Short Duration Fund		1.2

Mortgage-Backed Obligations
Government Agency		6.4
Non-Agency		9.3

Short-Term Notes		6.9

Foreign Government Obligations		6.8

Asset-Backed Securities		5.3

U.S. Government Obligations		1.8

Structured Securities		0.5

Common Stocks		0.2

Over-the-Counter Options Purchased		0.1

Corporate Loans		0.1

Over-the-Counter Interest Rate Swaptions Purchased		—^*

Rights, Warrants and Certificates		—^*

*	Represents a value of less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on total market value of investments. For more current Fund holdings, please visit oppenheimerfunds.com.


CREDIT RATING BREAKDOWN	NRSRO ONLY TOTAL
AAA		20.5%
AA		0.9
A		3.7
BBB		16.0
BB		19.6
B		16.7
CCC		3.6
CC		0.0
C		0.1
D		0.3
Unrated		18.6
Total		100.0%

The percentages above are based on the market value of the Fund’s securities as of December 31, 2016, and are subject to change. Except for securities labeled “Unrated,” and except for certain securities issued or guaranteed by a foreign sovereign, all securities have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. (the “Sub-Adviser”) converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest S&P equivalent rating is used. Unrated securities issued or guaranteed by a foreign sovereign are assigned a credit rating equal to the highest NRSRO rating assigned to that foreign sovereign. For securities not rated by an NRSRO, the Sub-Adviser uses its own credit analysis to assign ratings in categories similar to those of S&P. The use of similar categories is not an indication that the Sub-Adviser’s credit analysis process is consistent or comparable with any NRSRO’s process were that NRSRO to rate the same security. Fund assets invested in Oppenheimer Institutional Government Money Market Fund are assigned that Fund’s S&P rating, which is currently AAA. For the purposes of this table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories (AAA, AA, A and BBB). Unrated securities do not necessarily indicate low credit quality, and may or may not be the equivalent of investment-grade. Please consult the Fund’s prospectus and Statement of Additional Information for further information.

3 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Fund Performance Discussion

The Fund’s Non-Service shares produced a return of 6.53% during the reporting period, versus the 2.65% return provided by the Bloomberg Barclays U.S. Aggregate Bond Index.

MARKET OVERVIEW

Markets were volatile this reporting period. One of the most significant events during the period was the United Kingdom’s (“UK”) vote to leave the European Union (“EU”), a move commonly referred to as “Brexit.” Although the UK still has not initiated the formal process to leave the EU, the vote initially raised the level of uncertainty in global markets. Within days of the result, there were sharp moves across all markets. Perhaps the most significant movers were government bonds, where yields fell sharply, despite already being well below historical levels.

Markets staged an impressive rebound in July, as investor fears receded, particularly over the immediate implications of June’s Brexit vote. We saw central bank action remain supportive with the Bank of England and the European Central Bank (“ECB”) making forceful statements outlining intentions to backstop market sentiment. Central bank activity was not just apparent after the Brexit vote, but played a large role throughout the period.

In June, the ECB started to purchase European corporate bonds, marking another ‘Rubicon crossed’ in the central bank’s unconventional monetary policy moves. The purchasing program started more aggressively than had been expected, buying at the upper end of the 5-10 billion euro per month range.

Two key policy meetings in the third quarter were closely watched, one with the U.S. Federal Reserve (“Fed”) and the other from the Bank of Japan (“BoJ”). Throughout most of the year, the question of when the Fed would raise interest rates remained. It finally did in the closing month of the reporting period. Improved economic data and outlook led the Fed to hike its policy rates by 0.25% in December, meeting market expectations. The Fed’s policy making Federal Open Market Committee noted that they will continue to be cautious and will hike rates gradually, but posted a modestly optimistic outlook. By year end, markets were pricing for slightly more than two hikes by the end of 2017.

The BoJ’s meeting was perhaps even more eagerly anticipated, with a growing view that the unprecedented monetary policy experiment from the last few years has failed to generate the promised inflation. Expectations varied widely, from a further rate cut (to more deeply negative), to expansion of the quantitative easing program, to no change to policy. In the end, the BoJ opted for what amounted to a fine-tuning of policy: It left its rates unchanged, but announced a new policy of ‘yield curve control’, where it would keep the 10-year Japanese Government Bond yield anchored around 0%, and target a modestly positively sloping yield curve.

Markets turned to general “risk on” mode after the surprise election of Donald Trump with equities climbing, credit spreads narrowing to the tightest levels since early 2015, and U.S. Treasury yields climbing to levels not experienced since 2014. The dollar rallied strongly against many currencies, particularly after Mr. Trump’s victory.

FUND REVIEW

For the one-year reporting period, the Fund’s allocation to High Yield was the strongest contributor to total return, followed by Leveraged Loans. These areas benefited performance as credit spreads tightened sharply during the second half of the period. Alternatively, the Fund’s allocation to and selection within local currency Emerging Market bonds was the largest detractor to the Fund’s return. Emerging market currencies experienced declines due to widened fears regarding the potential for protectionist U.S. policies after the U.S. election.

STRATEGY & OUTLOOK

Global growth and market trends are likely to continue for the early part of 2017. By year end, some global yield depressing activities, like the tapering of the ECB’s bond buying program could lead to higher yields in core European government bond markets with knock on effects to U.S. yields.

More immediately, increases in minimum wages in several U.S. jurisdictions in January is likely to manifest in wage pressures in coming months leading to an uptick in inflation during the first quarter. Such realized data should push 10-year U.S. Treasury yields toward 3%. Therefore we remain underweight duration generally.

Markets are fully pricing June and December Fed rate hikes, but higher inflation could lead to markets pricing additional hikes. We believe that such an environment should mean higher rates in short maturity bonds.

4 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

We remain long credit sectors and continue to increase our allocation to floating rate loans, which are currently about 12% of the portfolio. We believe that defaults are likely to fall back below historic norms of 2% to 3%, thanks largely to the recovery and stabilization of energy prices. Floating rate loans should also benefit as the Fed continues to slowly move front end rates higher.

In High Yield bonds, we are underweight the retail sector on potential adverse tax policies from the incoming administration and continued transition to online retailers. We’re positive the energy sector, but remain cautious in regard to metals and mining as we believe the price of metals has likely peaked. We think the healthcare sector offers value but there are risks within the sector so we are selectively adding to a focused overweight.

Within the Fund, we allocate to foreign exchange when we believe doing so offers additional return to shareholders. At the moment such opportunities are limited given overall dollar strength. Our small currency exposure is focused on high carry emerging market currencies like the Brazilian real and Russian ruble against being modestly short low or negative carry currencies such as the euro and Korean won.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the Bloomberg Barclays U.S. Aggregate Bond Index, the Citigroup World Government Bond Index, the Citigroup Non-U.S. World Government Bond Index, the J.P. Morgan Domestic High Yield Index and the Fund’s Reference Index. The Bloomberg Barclays U.S. Aggregate Bond Index is an index of U.S. Government and corporate bonds. The Citigroup World Government Bond Index is an index of debt securities of major foreign government bond markets. The Citigroup Non-U.S. World Government Bond Index is an index of fixed rate government bonds with a maturity of one year or longer and amounts outstanding of at least U.S. $25 million. The J.P. Morgan Domestic High Yield Index is an unmanaged index of high yield fixed income securities issued by U.S. companies. The Fund’s Reference Index is a customized weighted index currently comprised of the following underlying broad-based security indices: 40% Citigroup Non-U.S. World Government Bond Index, 30% J.P. Morgan Domestic High Yield Index, and 30% Barclays U.S. Aggregate Bond Index. As referenced in the Prospectus supplement dated January 3, 2017, effective April 28, 2017, all references to the “Reference Index,” the “Citigroup Non-U.S. World Government Bond Index,” the “JP Morgan Domestic High Yield Index,” and the “Citigroup World Government Bond Index” are deleted from the Prospectus entirely. The indices are unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

5 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

6 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,020.70	$	3.77
Service shares		1,000.00		1,020.10		5.04

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,021.42		3.77
Service shares		1,000.00		1,020.16		5.04


Class	Expense Ratios
Non-Service shares		0.74%
Service shares		0.99

7 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS December 31, 2016


	Principal Amount		Value
Asset-Backed Securities—5.4%
American Credit Acceptance Receivables Trust:
Series 2013-1, Cl. D, 4.94%, 6/15/20¹	$	1,520,000	$	1,527,398
Series 2013-2, Cl. D, 5.92%, 8/17/20¹		1,375,000		1,394,795
Series 2014-2, Cl. D, 4.96%, 5/10/21¹		720,000		729,945
Series 2014-3, Cl. B, 2.43%, 6/10/20¹		120,365		120,476
Series 2014-4, Cl. B, 2.60%, 10/10/17¹		101,911		102,229
Series 2015-1, Cl. B, 2.85%, 2/12/21¹		665,000		668,273
Series 2015-3, Cl. B, 3.56%, 10/12/21¹		525,000		532,460
American Express Credit Account Master Trust:
Series 2014-2, Cl. A, 1.26%, 1/15/20		130,000		130,090
Series 2014-3, Cl. A, 1.49%, 4/15/20		865,000		867,024
Series 2014-5, Cl. A, 0.994%, 5/15/20²		1,080,000		1,081,234
Series 2015-1, Cl. A, 0.994%, 1/15/20²		1,710,000		1,711,651
AmeriCredit Automobile Receivables Trust:
Series 2012-4, Cl. D, 2.68%, 10/9/18		315,000		315,175
Series 2013-2, Cl. E, 3.41%, 10/8/20¹		1,290,000		1,301,910
Series 2013-3, Cl. D, 3.00%, 7/8/19		440,000		444,945
Series 2013-3, Cl. E, 3.74%, 12/8/20¹		455,000		461,479
Series 2013-4, Cl. D, 3.31%, 10/8/19		520,000		529,062
Series 2014-1, Cl. C, 2.15%, 3/9/20		655,000		658,801
Series 2014-1, Cl. E, 3.58%, 8/9/21		550,000		559,116
Series 2014-2, Cl. E, 3.37%, 11/8/21		485,000		490,712
Series 2014-3, Cl. D, 3.13%, 10/8/20		1,395,000		1,417,285
Series 2014-4, Cl. D, 3.07%, 11/9/20		305,000		309,252
Cabela’s Credit Card Master Note Trust:
Series 2013-2A, Cl. A2, 1.354%, 8/16/21^1,2		280,000		281,283
Series 2016-1, Cl. A1, 1.78%, 6/15/22		870,000		867,664
Capital Auto Receivables Asset Trust:
Series 2013-1, Cl. D, 2.19%, 9/20/21		275,000		276,017
Series 2014-1, Cl. D, 3.39%, 7/22/19		185,000		189,317
Series 2014-3, Cl. D, 3.14%, 2/20/20		265,000		269,002
Series 2015-4, Cl. D, 3.62%, 5/20/21		470,000		479,537
Series 2016-2, Cl. D, 3.16%, 11/20/23		165,000		164,871
Series 2016-3, Cl. D, 2.65%, 1/20/24		275,000		270,814
Capital One Multi-Asset Execution Trust:
Series 2007-A1, Cl. A1, 0.754%, 11/15/19²		875,000		875,004
Series 2014-A2, Cl. A2, 1.26%, 1/15/20		965,000		965,556
Series 2014-A5, Cl. A5, 1.48%, 7/15/20		1,070,000		1,072,295
CarFinance Capital Auto Trust:
Series 2013-2A, Cl. B, 3.15%, 8/15/19¹		40,626		40,786
Series 2015-1A, Cl. A, 1.75%, 6/15/21¹		144,793		144,908
CarMax Auto Owner Trust:
Series 2013-2, Cl. D, 2.06%, 11/15/19		10,000		9,998
Series 2014-2, Cl. D, 2.58%, 11/16/20		450,000		450,543
Series 2015-2, Cl. D, 3.04%, 11/15/21		175,000		175,270
Series 2015-3, Cl. D, 3.27%, 3/15/22		610,000		614,917
Series 2016-1, Cl. D, 3.11%, 8/15/22		465,000		461,704
Series 2016-3, Cl. D, 2.94%, 1/17/23		315,000		309,054
Series 2016-4, Cl. D, 2.91%, 4/17/23		710,000		694,595
Chase Issuance Trust:
Series 2007-A3, Cl. A3, 5.23%, 4/15/19		165,000		165,769
Series 2014-A1, Cl. A1, 1.15%, 1/15/19		1,515,000		1,515,017
Series 2014-A6, Cl. A6, 1.26%, 7/15/19		1,165,000		1,165,791
Series 2014-A7, Cl. A7, 1.38%, 11/15/19		1,710,000		1,711,663
Series 2016-A6, Cl. A6, 1.10%, 1/15/20		1,685,000		1,681,181
CPS Auto Receivables Trust, Series 2014- C, Cl. A, 1.31%, 2/15/19¹		79,343		79,323
CPS Auto Trust, Series 2012-C, Cl. A, 1.82%, 12/16/19¹		23,827		23,832
Credit Acceptance Auto Loan Trust, Series 2014-1A, Cl. B, 2.29%, 4/15/22¹		765,000		767,079
Discover Card Execution Note Trust, Series 2014-A5, Cl. A, 1.39%, 4/15/20		1,470,000		1,472,298
Drive Auto Receivables Trust:
Series 2015-BA, Cl. C, 2.76%, 7/15/21¹		515,000		518,364


	Principal Amount		Value
Asset-Backed Securities (Continued)
Drive Auto Receivables Trust: (Continued)
Series 2015-BA, Cl. D, 3.84%, 7/15/21¹	$	985,000	$	992,180
Series 2015-CA, Cl. D, 4.20%, 9/15/21¹		1,715,000		1,738,022
Series 2015-DA, Cl. C, 3.38%, 11/15/21¹		1,445,000		1,468,960
Series 2015-DA, Cl. D, 4.59%, 1/17/23¹		135,000		138,649
Series 2016-BA, Cl. C, 3.19%, 7/15/22¹		440,000		443,453
Series 2016-CA, Cl. D, 4.18%, 3/15/24¹		430,000		426,944
DT Auto Owner Trust:
Series 2013-2A, Cl. D, 4.18%, 6/15/20¹		422,561		426,261
Series 2014-1A, Cl. D, 3.98%, 1/15/21¹		1,046,225		1,055,233
Series 2014-2A, Cl. D, 3.68%, 4/15/21¹		2,505,000		2,529,585
Series 2014-3A, Cl. D, 4.47%, 11/15/21¹		2,875,000		2,932,590
Series 2015-1A, Cl. C, 2.87%, 11/16/20¹		302,635		303,659
Series 2015-1A, Cl. D, 4.26%, 2/15/22¹		3,020,000		3,063,303
Series 2015-2A, Cl. D, 4.25%, 2/15/22¹		625,000		632,340
Series 2015-3A, Cl. D, 4.53%, 10/17/22¹		2,530,000		2,576,754
Series 2016-1A, Cl. B, 2.79%, 5/15/20¹		625,000		628,844
Series 2016-4A, Cl. B, 2.02%, 8/17/20¹		655,000		652,683
Element Rail Leasing I LLC, Series 2014- 1A, Cl. A1, 2.299%, 4/19/44¹		250,983		244,360
Evergreen Credit Card Trust, Series 2016-3, Cl. A, 1.204%, 11/16/20^1,2		1,210,000		1,211,023
Exeter Automobile Receivables Trust:
Series 2013-2A, Cl. C, 4.35%, 1/15/19¹		352,566		355,212
Series 2014-1A, Cl. B, 2.42%, 1/15/19¹		98,560		98,646
Series 2014-1A, Cl. C, 3.57%, 7/15/19¹		860,000		865,656
Series 2014-2A, Cl. C, 3.26%, 12/16/19¹		180,000		181,039
First Investors Auto Owner Trust, Series 2013-3A, Cl. D, 3.67%, 5/15/20¹		1,085,000		1,092,777
Flagship Credit Auto Trust:
Series 2014-2, Cl. A, 1.43%, 12/16/19¹		93,066		93,062
Series 2016-4, Cl. A1, 1.47%, 3/16/20¹		769,566		768,953
Ford Credit Floorplan Master Owner Trust A, Series 2016-3, Cl. A1, 1.55%, 7/15/21		1,000,000		989,857
GM Financial Automobile Leasing Trust, Series 2015-1, Cl. D, 3.01%, 3/20/20		415,000		419,905
ICE EM CLO:
Series 2007-1A, Cl. B, 2.904%, 8/15/22^1,2		7,870,000		7,705,572
Series 2007-1A, Cl. C, 4.204%, 8/15/22^1,2		5,270,000		5,092,596
Series 2007-1A, Cl. D, 6.204%, 8/15/22^1,2		4,730,018		4,353,343
Navistar Financial Dealer Note Master Owner Trust II:
Series 2015-1, Cl. B, 2.456%, 6/25/20^1,2		185,000		185,166
Series 2015-1, Cl. D, 3.906%, 6/25/20^1,2		70,000		70,099
Series 2016-1, Cl. D, 4.056%, 9/27/21^1,2		205,000		206,347
Santander Drive Auto Receivables Trust:
Series 2013-1, Cl. D, 2.27%, 1/15/19		920,000		923,743
Series 2013-4, Cl. D, 3.92%, 1/15/20		740,000		755,831
Series 2013-4, Cl. E, 4.67%, 1/15/20¹		520,000		529,302
Series 2013-5, Cl. D, 2.73%, 10/15/19		1,200,000		1,213,926
Series 2013-A, Cl. E, 4.71%, 1/15/21¹		405,000		415,379
Series 2014-2, Cl. D, 2.76%, 2/18/20		1,120,000		1,133,707
Series 2014-4, Cl. C, 2.60%, 11/16/20		1,795,000		1,809,769
Series 2015-1, Cl. D, 3.24%, 4/15/21		1,190,000		1,204,574
Series 2015-5, Cl. D, 3.65%, 12/15/21		915,000		938,019
Series 2016-2, Cl. D, 3.39%, 4/15/22		300,000		302,386
SNAAC Auto Receivables Trust, Series 2014-1A, Cl. D, 2.88%, 1/15/20¹		905,000		901,095
Synchrony Credit Card Master Note Trust, Series 2012-6, Cl. A, 1.36%, 8/17/20		470,000		470,309
TCF Auto Receivables Owner Trust, Series 2015-1A, Cl. D, 3.53%, 3/15/22¹		285,000		285,566
Trip Rail Master Funding LLC, Series 2014-1A, Cl. A1, 2.863%, 4/15/44¹		117,626		114,852

8 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Asset-Backed Securities (Continued)
United Auto Credit Securitization Trust, Series 2015-1, Cl. D, 2.92%, 6/17/19¹	$	385,000	$	386,140
Westlake Automobile Receivables Trust:
Series 2014-2A, Cl. D, 2.86%, 7/15/21¹		245,000		246,184
Series 2015-1A, Cl. C, 2.29%, 11/16/20¹		485,000		486,370
Series 2015-2A, Cl. C, 2.45%, 1/15/21¹		365,000		367,506
World Financial Network Credit Card Master Trust:
Series 2014-C, Cl. A, 1.60%, 8/16/21		875,000		876,355
Series 2015-C, Cl. A, 1.26%, 3/15/21		635,000		635,418
Series 2016-B, Cl. A, 1.44%, 6/15/22		560,000		558,209
Total Asset-Backed Securities (Cost $91,537,731)				91,564,477


Mortgage-Backed Obligations—16.2%
Government Agency—6.6%
FHLMC/FNMA/FHLB/Sponsored—5.6%
Federal Home Loan Mortgage Corp. Gold Pool:
5.00%, 9/1/33		312,098		343,064
5.50%, 9/1/39		397,303		441,405
6.00%, 5/1/18-11/1/21		66,403		74,658
6.50%, 3/1/18-8/1/32		325,573		358,456
7.00%, 10/1/31-10/1/37		71,407		80,594
7.50%, 1/1/32		280,705		339,319
Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed Security:
Series 192,Cl. IO, 77.047%, 2/1/28³		6,696		1,607
Series 205,Cl. IO, 37.955%, 9/1/29³		40,072		9,043
Series 243,Cl. 6, 0.852%, 12/15/32³		86,088		15,935
Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
Series 1360,Cl. PZ, 7.50%, 9/15/22		279,995		305,720
Series 151,Cl. F, 9.00%, 5/15/21		3,733		4,031
Series 1674,Cl. Z, 6.75%, 2/15/24		138,020		150,697
Series 1897,Cl. K, 7.00%, 9/15/26		525,641		582,318
Series 2043,Cl. ZP, 6.50%, 4/15/28		197,629		219,995
Series 2106,Cl. FG, 1.154%, 12/15/28²		350,882		351,849
Series 2122,Cl. F, 1.154%, 2/15/29²		9,440		9,467
Series 2148,Cl. ZA, 6.00%, 4/15/29		194,427		217,473
Series 2195,Cl. LH, 6.50%, 10/15/29		141,071		159,304
Series 2326,Cl. ZP, 6.50%, 6/15/31		19,925		22,171
Series 2344,Cl. FP, 1.654%, 8/15/31²		86,913		89,445
Series 2368,Cl. PR, 6.50%, 10/15/31		65,371		71,819
Series 2412,Cl. GF, 1.654%, 2/15/32²		124,834		128,444
Series 2449,Cl. FL, 1.254%, 1/15/32²		97,080		98,555
Series 2451,Cl. FD, 1.704%, 3/15/32²		49,596		51,139
Series 2453,Cl. BD, 6.00%, 5/15/17		1,445		1,464
Series 2461,Cl. PZ, 6.50%, 6/15/32		231,868		270,491
Series 2464,Cl. FI, 1.704%, 2/15/32²		44,023		45,131
Series 2470,Cl. AF, 1.704%, 3/15/32²		85,095		87,742
Series 2470,Cl. LF, 1.704%, 2/15/32²		45,051		46,185
Series 2477,Cl. FZ, 1.254%, 6/15/31²		187,532		188,755
Series 2517,Cl. GF, 1.704%, 2/15/32²		39,169		40,156
Series 2635,Cl. AG, 3.50%, 5/15/32		59,510		61,315
Series 2668,Cl. AZ, 4.00%, 9/15/18		12,907		13,077
Series 2676,Cl. KY, 5.00%, 9/15/23		688,885		734,357
Series 2707,Cl. QE, 4.50%, 11/15/18		57,657		58,926
Series 2770,Cl. TW, 4.50%, 3/15/19		8,429		8,687
Series 3025,Cl. SJ, 22.169%, 8/15/35²		113,501		169,797
Series 3741,Cl. PA, 2.15%, 2/15/35		358,692		361,018
Series 3815,Cl. BD, 3.00%, 10/15/20		7,785		7,874
Series 3840,Cl. CA, 2.00%, 9/15/18		5,951		5,975
Series 3848,Cl. WL, 4.00%, 4/15/40		190,358		197,394
Series 3857,Cl. GL, 3.00%, 5/15/40		8,174		8,363
Series 3917,Cl. BA, 4.00%, 6/15/38		106,226		109,281
Series 4221,Cl. HJ, 1.50%, 7/15/23		248,957		247,553
Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2074,Cl. S, 99.999%, 7/17/28³		10,677		1,596
Series 2079,Cl. S, 99.999%, 7/17/28³		18,380		3,087
Series 2136,Cl. SG, 34.496%, 3/15/29³		492,378		92,207


	Principal Amount		Value
FHLMC/FNMA/FHLB/Sponsored (Continued)
Federal Home Loan Mortgage Corp., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security: (Continued)
Series 2399,Cl. SG, 99.999%, 12/15/26³	$	279,011	$	49,341
Series 2437,Cl. SB, 45.488%, 4/15/32³		867,353		187,934
Series 2526,Cl. SE, 49.17%, 6/15/29³		17,395		3,534
Series 2682,Cl. TQ, 99.999%, 10/15/33³		180,974		39,714
Series 2795,Cl. SH, 99.999%, 3/15/24³		367,371		36,819
Series 2920,Cl. S, 55.393%, 1/15/35³		190,295		30,742
Series 2922,Cl. SE, 25.763%, 2/15/35³		33,100		5,118
Series 2981,Cl. AS, 11.50%, 5/15/35³		313,788		52,539
Series 2981,Cl. BS, 99.999%, 5/15/35³		379,110		68,292
Series 3397,Cl. GS, 0.00%, 12/15/37^3,4		121,168		21,067
Series 3424,Cl. EI, 0.00%, 4/15/38^3,4		52,992		5,966
Series 3450,Cl. BI, 24.976%, 5/15/38³		220,605		31,616
Series 3606,Cl. SN, 23.604%, 12/15/39³		65,374		10,334
Series 3659,Cl. IE, 44.406%, 3/15/19³		147,413		5,097
Series 3685,Cl. EI, 4.763%, 3/15/19³		70,008		1,683
Federal National Mortgage Assn.:
2.50%, 1/1/32⁵		6,400,000		6,407,540
3.00%, 1/1/32⁵		13,965,000		14,326,388
3.50%, 1/1/47⁵		18,770,000		19,227,577
4.00%, 1/15/47⁵		22,380,000		23,518,653
4.50%, 1/1/47⁵		7,270,000		7,817,840
5.00%, 1/1/47⁵		4,380,000		4,770,942
Federal National Mortgage Assn. Pool:
5.00%, 2/1/18-7/1/33		626,330		665,969
5.50%, 4/1/21-5/1/36		215,919		239,244
6.00%, 3/1/17-1/1/19		3,819		3,841
6.50%, 4/1/17-1/1/34		579,646		662,935
7.00%, 11/1/17-6/1/34		728,839		850,134
7.50%, 2/1/27-3/1/33		925,633		1,106,250
8.50%, 7/1/32		1,470		1,596
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 214,Cl. 2, 99.999%, 3/25/23³		103,171		15,820
Series 221,Cl. 2, 36.784%, 5/25/23³		12,287		2,098
Series 254,Cl. 2, 99.999%, 1/25/24³		210,182		45,384
Series 301,Cl. 2, 5.692%, 4/25/29³		39,939		9,519
Series 313,Cl. 2, 99.999%, 6/25/31³		419,769		113,737
Series 319,Cl. 2, 0.123%, 2/25/32³		193,214		46,828
Series 321,Cl. 2, 6.065%, 4/25/32³		55,553		13,097
Series 324,Cl. 2, 0.00%, 7/25/32^3,4		58,299		14,024
Series 328,Cl. 2, 0.00%, 12/25/32^3,4		115,406		26,625
Series 331,Cl. 5, 0.00%, 2/25/33^3,4		221,834		42,847
Series 332,Cl. 2, 0.00%, 3/25/33^3,4		926,724		220,859
Series 334,Cl. 12, 0.00%, 3/25/33^3,4		178,871		40,638
Series 339,Cl. 15, 0.298%, 10/25/33³		533,453		116,489
Series 345,Cl. 9, 0.00%, 1/25/34^3,4		161,983		31,099
Series 351,Cl. 10, 0.00%, 4/25/34^3,4		100,761		20,696
Series 351,Cl. 8, 0.00%, 4/25/34^3,4		178,424		36,609
Series 356,Cl. 10, 0.00%, 6/25/35^3,4		128,608		26,032
Series 356,Cl. 12, 0.00%, 2/25/35^3,4		62,521		14,155
Series 362,Cl. 13, 0.00%, 8/25/35^3,4		84,704		17,542
Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates:
Series 1999-54,Cl. LH, 6.50%, 11/25/29		120,712		138,763
Series 2001-80,Cl. ZB, 6.00%, 1/25/32		108,083		121,713
Series 2002-12,Cl. PG, 6.00%, 3/25/17		643		649
Series 2002-29,Cl. F, 1.756%, 4/25/32²		49,157		50,431
Series 2002-64,Cl. FJ, 1.756%, 4/25/32²		15,137		15,529
Series 2002-68,Cl. FH, 1.236%,
10/18/32²		34,662		34,831
Series 2002-84,Cl. FB, 1.756%,
12/25/32²		217,287		222,662
Series 2002-9,Cl. PC, 6.00%, 3/25/17		776		785
Series 2002-9,Cl. PR, 6.00%, 3/25/17		950		960
Series 2002-90,Cl. FH, 1.256%,
9/25/32²		121,572		122,089

9 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
FHLMC/FNMA/FHLB/Sponsored (Continued)
Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates: (Continued)
Series 2003-100,Cl. PA, 5.00%, 10/25/18	$	82,681	$	84,543
Series 2003-11,Cl. FA, 1.756%, 9/25/32²		217,292		222,667
Series 2003-112,Cl. AN, 4.00%, 11/25/18		28,756		29,213
Series 2003-116,Cl. FA, 1.156%, 11/25/33²		22,555		22,580
Series 2003-84,Cl. GE, 4.50%, 9/25/18		11,709		12,017
Series 2004-101,Cl. BG, 5.00%, 1/25/20		2,241		2,245
Series 2004-25,Cl. PC, 5.50%, 1/25/34		33,103		34,151
Series 2005-109,Cl. AH, 5.50%,
12/25/25		924,289		992,185
Series 2005-31,Cl. PB, 5.50%, 4/25/35		560,000		633,014
Series 2005-71,Cl. DB, 4.50%, 8/25/25		131,611		138,369
Series 2006-11,Cl. PS, 21.794%, 3/25/36²		96,944		144,295
Series 2006-46,Cl. SW, 21.427%, 6/25/36²		160,542		215,998
Series 2008-75,Cl. DB, 4.50%, 9/25/23		41,929		42,765
Series 2009-113,Cl. DB, 3.00%, 12/25/20		125,138		126,722
Series 2009-36,Cl. FA, 1.696%, 6/25/37²		47,330		48,408
Series 2009-70,Cl. TL, 4.00%, 8/25/19		134,067		135,808
Series 2010-43,Cl. KG, 3.00%, 1/25/21		69,344		70,441
Series 2011-122,Cl. EC, 1.50%, 1/25/20		78,898		78,949
Series 2011-15,Cl. DA, 4.00%, 3/25/41		94,755		97,683
Series 2011-3,Cl. EL, 3.00%, 5/25/20		204,555		207,101
Series 2011-3,Cl. KA, 5.00%, 4/25/40		204,592		220,244
Series 2011-38,Cl. AH, 2.75%, 5/25/20		6,233		6,290
Series 2011-6,Cl. BA, 2.75%, 6/25/20		89,303		90,246
Series 2011-69,Cl. EA, 3.00%, 11/25/29		37,959		38,143
Series 2011-82,Cl. AD, 4.00%, 8/25/26		138,194		141,085
Series 2012-20,Cl. FD, 1.156%, 3/25/42²		274,893		273,769
Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security:
Series 2001-61,Cl. SH, 31.485%, 11/18/31³		56,515		13,365
Series 2001-63,Cl. SD, 56.448%, 12/18/31³		14,903		3,029
Series 2001-68,Cl. SC, 33.875%, 11/25/31³		9,986		2,113
Series 2001-81,Cl. S, 36.41%, 1/25/32³		12,470		3,528
Series 2002-28,Cl. SA, 23.282%, 4/25/32³		8,447		1,725
Series 2002-38,Cl. SO, 47.275%, 4/25/32³		56,482		10,310
Series 2002-48,Cl. S, 33.067%, 7/25/32³		13,228		2,812
Series 2002-52,Cl. SL, 23.07%, 9/25/32³		8,488		1,758
Series 2002-56,Cl. SN, 34.662%, 7/25/32³		18,177		3,801
Series 2002-77,Cl. IS, 44.431%, 12/18/32³		96,228		18,724
Series 2002-77,Cl. SH, 40.208%,
12/18/32³		17,629		3,696
Series 2002-9,Cl. MS, 23.644%, 3/25/32³		16,149		3,313
Series 2003-13,Cl. IO, 30.262%, 3/25/33³		170,968		27,797
Series 2003-26,Cl. DI, 26.659%, 4/25/33³		130,827		30,672
Series 2003-33,Cl. SP, 34.385%, 5/25/33³		98,913		19,958
Series 2003-38,Cl. SA, 99.999%, 3/25/23³		14,561		134


	Principal Amount		Value
FHLMC/FNMA/FHLB/Sponsored (Continued)
Federal National Mortgage Assn., Real Estate Mtg. Investment Conduit Multiclass Pass-Through Certificates, Interest-Only Stripped Mtg.-Backed Security: (Continued)
Series 2003-4,Cl. S, 18.658%, 2/25/33³	$	27,732	$	6,210
Series 2004-56,Cl. SE, 7.457%, 10/25/33³		462,983		102,653
Series 2005-12,Cl. SC, 39.352%, 3/25/35³		15,568		2,432
Series 2005-14,Cl. SE, 63.254%, 3/25/35³		567,314		88,039
Series 2005-40,Cl. SA, 63.18%, 5/25/35³		493,048		88,505
Series 2005-40,Cl. SB, 99.999%, 5/25/35³		750,444		112,458
Series 2005-52,Cl. JH, 45.499%, 5/25/35³		300,087		46,578
Series 2005-63,Cl. SA, 41.298%, 10/25/31³		26,409		4,936
Series 2006-90,Cl. SX, 36.244%, 9/25/36³		531,601		82,342
Series 2007-88,Cl. XI, 4.694%, 6/25/37³		602,714		103,855
Series 2008-55,Cl. SA, 0.00%, 7/25/38^3,4		48,679		5,259
Series 2009-8,Cl. BS, 99.999%, 2/25/24³		14,449		424
Series 2010-95,Cl. DI, 66.153%, 11/25/20³		219,543		8,847
Series 2011-96,Cl. SA, 14.272%, 10/25/41³		155,331		27,427
Series 2012-134,Cl. SA, 9.234%, 12/25/42³		612,348		127,743
Series 2012-40,Cl. PI, 2.326%, 4/25/41³		1,117,118		149,845
Federal National Mortgage Assn., Stripped Mtg.-Backed Security, Series 302, Cl. 2, 6%, 5/1/29		3		—
				93,811,373

GNMA/Guaranteed—1.0%
Government National Mortgage Assn. I Pool:
7.00%, 4/15/28-7/15/28		59,305		65,927
7.50%, 2/15/27		4,495		4,625
8.00%, 5/15/26		9,273		9,374
Government National Mortgage Assn. II Pool:
2.00%, 11/20/25²		2,674		2,757
3.50%, 1/21/47⁵		10,660,000		11,074,441
4.00%, 1/1/47⁵		4,910,000		5,211,858
Government National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Series 2007-17,Cl. AI, 52.528%, 4/16/37³		260,703		45,684
Series 2011-52,Cl. HS, 30.375%, 4/16/41³		441,449		72,357
				16,487,023

Non-Agency—9.6%
Commercial—6.5%
Banc of America Funding Trust, Series 2014- R7, Cl. 3A1, 3.003%, 3/26/36²		87,972		88,123
BCAP LLC Trust:
Series 2011-R11,Cl. 18A5, 2.69%, 9/26/35^1,2		107,575		107,510
Series 2012-RR2,Cl. 6A3, 3.242%, 9/26/35^1,2		126,758		126,655
Series 2012-RR6,Cl. RR6, 2.054%, 11/26/36¹		201,301		190,693
CD Commercial Mortgage Trust, Series 2016- CD2, Cl. AM, 3.668%, 11/10/49²		365,000		374,358
Chase Mortgage Finance Trust, Series 2005- A2, Cl. 1A3, 2.966%, 1/25/36²		17,318		16,389
COMM Mortgage Trust:
Series 2013-CR6,Cl. AM, 3.147%, 3/10/46¹		960,000		959,988

10 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Commercial (Continued)
COMM Mortgage Trust: (Continued)
Series 2013-CR7,Cl. D, 4.354%, 3/10/46^1,2	$	3,270,000	$	2,976,741
Series 2014-CR21,Cl. AM, 3.987%, 12/10/47		25,000		25,888
Series 2014-LC15,Cl. AM, 4.198%, 4/10/47		230,000		241,869
Series 2014-UBS3,Cl. D, 4.813%, 6/10/47^1,2		8,895,000		7,186,653
Series 2014-UBS6,Cl. AM, 4.048%, 12/10/47		1,600,000		1,640,520
Series 2015-CR23,Cl. AM, 3.801%, 5/10/48		1,100,000		1,121,995
COMM Mortgage Trust, Interest-Only Stripped Mtg.-Backed Security, Series 2012-CR5, Cl. XA, 0.00%, 12/10/45^3,4		3,132,404		209,649
Deutsche Alt-B Securities, Inc. Mortgage Loan Trust, Series 2006-AB2, Cl. A1, 5.752%, 6/25/36²		64,614		54,021
Deutsche Bank Commercial Mortgage Trust, Series 2016-C1, Cl. AM, 3.539%, 5/10/49		600,000		605,717
Deutsche Mortgage Securities, Inc., Series 2013-RS1, Cl. 1A2, 0.959%, 7/22/36^1,2		5,060,144		4,510,200
FREMF Mortgage Trust:
Series 2012-K20,Cl. C, 3.869%, 5/25/45^1,2		4,165,000		4,122,876
Series 2013-K25,Cl. C, 3.743%, 11/25/45^1,2		135,000		129,740
Series 2013-K26,Cl. C, 3.599%, 12/25/45^1,2		95,000		90,161
Series 2013-K27,Cl. C, 3.616%, 1/25/46^1,2		1,460,000		1,395,775
Series 2013-K28,Cl. C, 3.494%, 6/25/46^1,2		2,330,000		2,208,743
Series 2013-K29,Cl. C, 3.481%, 5/25/46^1,2		2,300,000		2,200,225
Series 2013-K502,Cl. C, 3.077%, 3/25/45^1,2		220,000		220,360
Series 2013-K712,Cl. C, 3.365%, 5/25/45^1,2		265,000		265,268
Series 2013-K713,Cl. C, 3.165%, 4/25/46^1,2		535,000		525,191
Series 2014-K41,Cl. B, 3.961%, 11/25/47^1,2		2,365,000		2,348,817
Series 2015-K44,Cl. B, 3.684%, 1/25/48^1,2		3,990,000		3,849,584
Series 2015-K45,Cl. B, 3.591%, 4/25/48^1,2		4,646,000		4,503,674
Series 2015-K721,Cl. B, 3.565%, 11/25/47^1,2		1,380,000		1,346,890
GSR Mortgage Loan Trust, Series 2005-AR4, Cl. 6A1, 3.209%, 7/25/35²		19,742		19,473
JP Morgan Chase Commercial Mortgage Securities Trust:
Series 2013-C10,Cl. AS, 3.372%, 12/15/47		855,000		868,006
Series 2013-C16,Cl. AS, 4.517%, 12/15/46		820,000		883,788
Series 2013-LC11,Cl. AS, 3.216%, 4/15/46		110,000		110,480
Series 2014-C20,Cl. AS, 4.043%, 7/15/47		560,000		585,040
JP Morgan Mortgage Trust, Series 2007-A1, Cl. 5A1, 3.178%, 7/25/35²		80,266		80,458
JP Morgan Resecuritization Trust, Series 2009-5, Cl. 1A2, 3.08%, 7/26/36^1,2		4,190,075		3,796,395
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C19,Cl. AS, 4.243%, 4/15/47²		350,000		370,783


	Principal Amount		Value
Commercial (Continued)
JPMBB Commercial Mortgage Securities Trust: (Continued)
Series 2014-C21,Cl. D, 4.66%, 8/15/47^1,2	$	3,703,000	$	2,996,757
Series 2014-C25,Cl. AS, 4.065%, 11/15/47		2,245,000		2,349,481
Series 2014-C26,Cl. AS, 3.80%, 1/15/48		1,250,000		1,285,338
JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Cl. AS, 3.385%, 12/15/49		610,000		607,548
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C9,Cl. AS, 3.456%, 5/15/46		570,000		576,692
Series 2014-C14,Cl. B, 4.64%, 2/15/47²		240,000		256,866
Series 2014-C14,Cl. D, 4.83%,
2/15/47^1,2		5,060,000		4,461,540
Series 2016-C30,Cl. AS, 3.175%, 9/15/49		1,020,000		986,644
Morgan Stanley Re-Remic Trust, Series 2012- R3, Cl. 1A, 2.615%, 11/26/36^1,2		19,366		19,053
Morgan Stanley Resecuritization Trust, Series 2013-R9, Cl. 3A, 2.756%, 6/26/46^1,2		189,134		188,980
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-10, Cl. 2A, 3.032%, 8/25/34²		3,507,935		3,513,189
Structured Agency Credit Risk Debt Nts.:
Series 2013-DN1,Cl. M1, 4.156%, 7/25/23²		580,284		589,178
Series 2014-DN1,Cl. M1, 1.756%, 2/25/24²		44,395		44,413
Series 2014-DN4,Cl. M3, 5.306%, 10/25/24²		4,980,000		5,333,608
Series 2014-HQ2,Cl. M1, 2.206%, 9/25/24²		126,454		126,924
Series 2014-HQ2,Cl. M3, 4.506%, 9/25/24²		5,430,000		5,676,077
Series 2015-DNA3,Cl. M1, 2.106%, 4/25/28²		41,999		42,020
Series 2015-DNA3,Cl. M3, 5.456%, 4/25/28²		3,815,000		4,130,951
Series 2015-HQA2,Cl. M2, 3.556%, 5/25/28²		600,000		616,111
Series 2016-DNA2,Cl. M1, 2.006%, 10/25/28²		716,568		717,516
Series 2016-DNA2,Cl. M3, 5.406%, 10/25/28²		3,674,000		3,921,301
Series 2016-DNA3,Cl. M1, 1.856%, 12/25/28²		723,088		724,808
Series 2016-DNA3,Cl. M3, 5.756%, 12/25/28²		2,630,000		2,845,687
Series 2016-DNA4,Cl. M1, 1.556%, 3/25/29²		460,083		459,998
Series 2016-DNA4,Cl. M3, 4.556%, 3/25/29²		4,645,000		4,660,547
Series 2016-HQA2,Cl. M1, 1.956%, 11/25/28²		495,332		495,924
Series 2016-HQA3,Cl. M1, 1.556%, 3/25/29²		598,844		599,561
Series 2016-HQA3,Cl. M3, 4.606%, 3/25/29²		4,620,000		4,627,233
Series 2016-HQA4,Cl. M1, 1.556%, 4/25/29²		1,026,569		1,025,338
UBS-Barclays Commercial Mortgage Trust, Series 2012-C2, Cl. E, 4.885%, 5/10/63^1,2		930,000		890,330
Washington Mutual Mortgage Pass-Through Certificates Trust, Series 2007-OA3, Cl. 5A, 1.848%, 4/25/47²		421,655		347,458
Wells Fargo Commercial Mortgage Trust:
Series 2015-C29,Cl. AS, 4.013%, 6/15/48²		780,000		801,227
Series 2016-C37,Cl. AS, 4.018%, 12/15/49		910,000		939,996

11 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Commercial (Continued)
WF-RBS Commercial Mortgage Trust:
Series 2012-C7,Cl. E, 4.835%, 6/15/45^1,2	$	180,000	$	169,568
Series 2013-C14,Cl. AS, 3.488%, 6/15/46		640,000		652,575
Series 2014-C20,Cl. AS, 4.176%, 5/15/47		490,000		516,657
Series 2014-LC14,Cl. AS, 4.351%, 3/15/47²		395,000		419,781
WF-RBS Commercial Mortgage Trust, Interest-Only Commercial Mtg. Pass-Through Certificates, Series 2011-C3, Cl. XA, 0.00%, 3/15/44^1,3,4		3,918,298		168,197
				109,143,768

Residential—3.1%
Bear Stearns ARM Trust:
Series 2005-2,Cl. A1, 2.92%, 3/25/35²		124,353		125,262
Series 2006-1,Cl. A1, 2.91%, 2/25/36²		68,511		68,128
CHL Mortgage Pass-Through Trust:
Series 2005-17,Cl. 1A8, 5.50%, 9/25/35		847,917		845,460
Series 2005-J4,Cl. A7, 5.50%, 11/25/35		719,983		709,446
Citigroup Mortgage Loan Trust, Inc.:
Series 2005-2,Cl. 1A3, 3.074%, 5/25/35²		1,034,956		1,023,651
Series 2005-3,Cl. 2A4, 3.225%, 8/25/35²		1,887,482		1,574,740
Series 2006-AR1,Cl. 1A1, 2.87%, 10/25/35²		8,803		8,788
Series 2009-8,Cl. 7A2, 3.003%, 3/25/36^1,2		10,353,846		9,753,427
Series 2012-8,Cl. 1A1, 3.108%, 10/25/35^1,2		296,620		296,293
Series 2014-8,Cl. 1A2, 1.029%, 7/20/36^1,2		3,400,000		2,875,158
Connecticut Avenue Securities:
Series 2014-C01,Cl. M1, 2.356%, 1/25/24²		69,046		69,422
Series 2014-C02,Cl. 2M1, 1.706%, 5/25/24²		282,152		282,578
Series 2014-C03,Cl. 1M1, 1.956%, 7/25/24²		835,432		837,694
Series 2014-C03,Cl. 2M1, 1.956%, 7/25/24²		358,788		359,185
Series 2014-C03,Cl. 2M2, 3.656%, 7/25/24²		4,495,000		4,517,669
Series 2014-C04,Cl. 2M1, 2.856%, 11/25/24²		7,136		7,140
Series 2015-C01,Cl. 1M2, 5.056%, 2/25/25²		2,474,726		2,605,018
Series 2015-C02,Cl. 1M1, 1.906%, 5/25/25²		36,260		36,266
Series 2015-C03,Cl. 1M1, 2.256%, 7/25/25²		249,653		250,134
Series 2015-C03,Cl. 1M2, 5.756%, 7/25/25²		4,490,000		4,845,172
Series 2015-C03,Cl. 2M1, 2.256%, 7/25/25²		73,222		73,375
Series 2016-C02,Cl. 1M1, 2.906%, 9/25/28²		544,591		550,374
Series 2016-C03,Cl. 1M1, 2.756%, 10/25/28²		14,470		14,670
Series 2016-C03,Cl. 2M1, 2.956%, 10/25/28²		831,931		840,716
Series 2016-C06,Cl. 1M1, 2.056%, 4/25/29²		906,341		908,464
Series 2016-C06,Cl. 1M2, 5.006%, 4/25/29²		4,295,000		4,441,480
Series 2016-C07,Cl. 2M1, 2.056%, 4/25/29²		520,000		517,332


	Principal Amount			Value
Residential (Continued)
CWHEQ Revolving Home Equity Loan Trust:
Series 2005-G,Cl. 2A, 0.934%, 12/15/35²	$	46,906		$	41,797
Series 2006-H,Cl. 2A1A, 0.854%, 11/15/36²		28,211			20,974
Home Equity Mortgage Trust, Series 2005-1, Cl. M6, 5.863%, 6/25/35²		287,331			290,109
HomeBanc Mortgage Trust, Series 2005-3, Cl. A2, 1.066%, 7/25/35²		8,905			8,773
MASTR Asset Backed Securities Trust, Series 2006-WMC3, Cl. A3, 0.856%, 8/25/36²		933,527			439,583
RALI Trust:
Series 2005-QA4,Cl. A32, 3.51%, 4/25/35²		6,139			196
Series 2006-QS13,Cl. 1A8, 6.00%, 9/25/36		17,578			14,376
Residential Asset Securitization Trust, Series 2005-A6CB, Cl. A7, 6%, 6/25/35		2,303,911			2,147,521
WaMu Mortgage Pass-Through Certificates Trust:
Series 2003-AR10,Cl. A7, 2.825%, 10/25/33²		88,932			90,812
Series 2005-AR16,Cl. 1A1, 2.85%, 12/25/35²		12,196			11,488
Wells Fargo Mortgage-Backed Securities Trust:
Series 2005-AR1,Cl. 1A1, 2.807%, 2/25/35²		1,414,090			1,436,429
Series 2005-AR10,Cl. 1A1, 3.022%, 6/25/35²		644,477			670,415
Series 2005-AR13,Cl. 1A5, 3.058%, 5/25/35²		137,538			137,937
Series 2005-AR15,Cl. 1A2, 2.983%, 9/25/35²		225,761			219,708
Series 2005-AR15,Cl. 1A6, 2.983%, 9/25/35²		2,779,905			2,644,008
Series 2005-AR4,Cl. 2A2, 3.067%, 4/25/35²		13,299			13,314
Series 2006-AR10,Cl. 1A1, 3.027%, 7/25/36²		233,701			225,026

Series 2006-AR10,Cl. 5A5, 3.08%, 7/25/36²		474,375			467,563
Series 2006-AR14,Cl. 1A2, 3.062%, 10/25/36²		988,603			925,876
Series 2006-AR2,Cl. 2A3, 3.003%, 3/25/36²		2,231,891			2,195,046
Series 2006-AR7,Cl. 2A4, 3.089%, 5/25/36²		1,203,826			1,148,761
Series 2006-AR8,Cl. 2A1, 3.083%, 4/25/36²		936,048			923,314
Series 2007-AR3,Cl. A4, 5.949%, 4/25/37²		693,407			644,140
					53,154,208
Total Mortgage-Backed Obligations (Cost $270,391,670)					272,596,372


U.S. Government Obligations—1.8%
Federal Home Loan Bank Nts.:
1.25%, 1/16/19		5,275,000			5,271,666
1.375%, 11/15/19		2,698,000			2,687,033
Federal National Mortgage Assn. Nts.:
1.00%, 10/24/19		5,325,000			5,250,865
1.875%, 9/24/26		1,371,000	��		1,259,457
United States Treasury Nts.:
1.625%, 4/30/19^6,7		6,347,000			6,395,834
1.75%, 10/31/20^6,7,17		9,509,000			9,522,294
2.50%, 8/15/23⁶		735,000			747,275
Total U.S. Government Obligations (Cost $31,397,311)					31,134,424

12 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


		Principal Amount		Value
Foreign Government Obligations—7.0%
Argentina—0.3%
Argentine Republic Sr. Unsec. Bonds:
7.50%, 4/22/26¹		$	3,550,000	$	3,736,375
7.875%, 6/15/27¹			595,000		588,276
Argentine Republic Sr. Unsec. Nts., 9.125%, 3/16/24¹			1,130,000		1,232,265
					5,556,916

Brazil—0.6%
Federative Republic of Brazil Nota Do Tesouro Nacional Unsec. Nts., 6%, 5/15/21	BRL		8,000,000		7,338,303
Federative Republic of Brazil Sr. Unsec. Bonds, 5%, 1/27/45			3,265,000		2,664,893
					10,003,196

Colombia—0.3%
Republic of Colombia Sr. Unsec. Bonds:
4.00%, 2/26/24			385,000		389,813
6.125%, 1/18/41			2,725,000		2,956,625
Series B, 10.00%, 7/24/24	COP		5,146,000,000		2,027,810
					5,374,248

Costa Rica—0.0%
Republic of Costa Rica Sr. Unsec. Bonds, 7.158%, 3/12/45¹			815,000		758,610

Croatia—0.1%
Republic of Croatia Sr. Unsec. Bonds, 6.75%, 11/5/19¹			985,000		1,071,188
Republic of Croatia Sr. Unsec. Nts., 3.875%, 5/30/22	EUR		1,145,000		1,298,004
					2,369,192

Dominican Republic—0.2%
Dominican Republic Sr. Unsec. Bonds:
6.60%, 1/28/24¹			1,015,000		1,063,212
6.85%, 1/27/45¹			1,315,000		1,248,882
7.45%, 4/30/44¹			540,000		548,100
					2,860,194

Gabon—0.0%
Gabonese Republic Unsec. Bonds, 6.375%, 12/12/24¹			110,000		102,955

Ghana—0.0%
Republic of Ghana Sr. Unsec. International Nts., 9.25%, 9/15/22¹			345,000		370,018

Honduras—0.1%
Republic of Honduras Sr. Unsec. International Nts., 8.75%, 12/16/20¹			1,155,000		1,291,752

Hungary—0.3%
Hungary Sr. Unsec. Bonds, 5.75%, 11/22/23			2,245,000		2,493,578
Hungary Unsec. Nts., Series 20/B, 3.50%, 6/24/20	HUF		535,000,000		1,966,420
					4,459,998

Indonesia—1.6%
Perusahaan Penerbit SBSN Indonesia III Sr. Unsec. Nts., 4%, 11/21/18¹			860,000		892,250
Perusahaan Penerbit SBSN Indonesia III Unsec. Bonds:
4.35%, 9/10/24¹			575,000		579,341
4.55%, 3/29/26¹			965,000		972,238
Perusahaan Penerbit SBSN Indonesia III Unsec. Nts., 6.125%, 3/15/19¹			1,920,000		2,076,096
Republic of Indonesia Sr. Unsec. Bonds:
3.375%, 7/30/25¹	EUR		290,000		313,242
3.75%, 6/14/28¹	EUR		485,000		520,036
4.125%, 1/15/25¹			340,000		337,735
5.875%, 3/13/20¹			360,000		393,722
6.75%, 1/15/44¹			1,885,000		2,286,235


		Principal Amount		Value
Indonesia (Continued)
Republic of Indonesia Sr. Unsec. Nts., 3.70%, 1/8/22¹		$	720,000	$	723,418
Republic of Indonesia Treasury Bonds:
Series FR53, 8.25%, 7/15/21	IDR		112,775,000,000		8,596,372
Series FR56, 8.375%, 9/15/26	IDR		95,810,000,000		7,329,115
Series FR73, 8.75%, 5/15/31	IDR		16,051,000,000		1,242,918
					26,262,718

Iraq—0.0%
Republic of Iraq Unsec. Bonds, 5.80%, 1/15/28¹			540,000		450,039

Ivory Coast—0.3%
Republic of Cote d’Ivoire Sr. Unsec. Bonds, 5.75%, 12/31/32²			6,108,300		5,673,688

Jamaica—0.2%
Commonwealth of Jamaica Sr. Unsec. Bonds:
7.625%, 7/9/25			1,915,000		2,194,188
8.00%, 3/15/39			385,000		429,487
					2,623,675

Kazakhstan—0.1%
Republic of Kazakhstan Sr. Unsec. Bonds, 4.875%, 10/14/44¹			2,110,000		2,019,895

Kenya—0.1%
Republic of Kenya Sr. Unsec. Bonds, 6.875%, 6/24/24¹			1,260,000		1,195,667

Mexico—0.1%
United Mexican States Sr. Unsec. Bonds, Series M, 5.75%, 3/5/26	MXN		54,445,000		2,334,343

Namibia—0.1%
Republic of Namibia Sr. Unsec. Bonds, 5.25%, 10/29/25¹			1,155,000		1,135,180

Paraguay—0.0%
Republic of Paraguay Sr. Unsec. Bonds, 6.10%, 8/11/44¹			575,000		586,500

Peru—0.2%
Republic of Peru Sr. Unsec. Bonds:
2.75%, 1/30/26	EUR		1,290,000		1,469,947
3.75%, 3/1/30	EUR		470,000		559,632
4.125%, 8/25/27			840,000		876,750
5.625%, 11/18/50			600,000		681,000
					3,587,329

Romania—0.2%
Romania Sr. Unsec. Bonds:
2.75%, 10/29/25¹	EUR		980,000		1,078,800
3.875%, 10/29/35¹	EUR		305,000		338,761
4.875%, 1/22/24¹			1,120,000		1,188,701
					2,606,262

Russia—0.4%
Russian Federation Unsec. Nts., 7.50%, 8/18/21	RUB		463,280,000		7,394,959

Senegal—0.0%
Republic of Senegal Unsec. Bonds, 6.25%, 7/30/24¹			540,000		540,629

Serbia—0.2%
Republic of Serbia Sr. Unsec. Nts., 5.25%, 11/21/17¹			1,005,000		1,030,940
Republic of Serbia Unsec. Nts., 5.875%, 12/3/18¹			2,115,000		2,216,262
					3,247,202

South Africa—0.4%
Republic of South Africa Unsec. Bonds: Series 2037, 8.50%, 1/31/37	ZAR		24,200,000		1,586,068

13 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


		Principal Amount		Value
South Africa (Continued)
Republic of South Africa Unsec. Bonds: (Continued)
Series R186, 10.50%, 12/21/26	ZAR		65,975,000	$	5,298,440
					6,884,508
Sri Lanka—0.2%
Democratic Socialist Republic of Sri Lanka Sr. Unsec. Bonds:
5.875%, 7/25/22¹			1,105,000		1,089,553
6.25%, 10/4/20¹			495,000		509,235
6.85%, 11/3/25¹			455,000		449,100
Democratic Socialist Republic of Sri Lanka Sr. Unsec. Nts., 6%, 1/14/19¹			1,515,000		1,561,370
					3,609,258
Turkey—0.2%
Republic of Turkey Unsec. Nts., 8.80%, 11/14/18	TRY		10,570,000		2,924,290
Ukraine—0.5%
Ukraine Sr. Unsec. Nts., 7.75%, 9/1/19			8,450,000		8,522,163
Uruguay—0.2%
Oriental Republic of Uruguay Sr. Unsec. Bonds, 5.10%, 6/18/50		2,810,000		2,536,025
Vietnam—0.1%
Socialist Republic of Vietnam Sr. Unsec. Bonds, 4.80%, 11/19/24¹			1,065,000		1,052,865
Total Foreign Government Obligations (Cost $120,019,033)					118,334,274


Corporate Loans—0.1%
Affinion Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 6.75%, 4/30/18²			781,283		777,946
Caesars Entertainment Resort Properties LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B, 7.00%, 10/11/20²			941,010		952,302
Pharmaceutical Product Development LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche D, 4.25%, 8/18/22²			762,261		770,836
Total Corporate Loans (Cost $2,483,172)					2,501,084


Corporate Bonds and Notes—46.5%
Consumer Discretionary—8.9%
Auto Components—0.5%
BorgWarner, Inc., 4.375% Sr. Unsec. Nts., 3/15/45			192,000		184,916
Dana Financing Luxembourg Sarl, 6.50% Sr. Unsec. Nts., 6/1/26¹			1,245,000		1,304,137
Gates Global LLC/Gates Global Co., 6% Sr. Unsec. Nts., 7/15/22¹			1,075,000		1,056,725
Goodyear Tire & Rubber Co. (The): 5.00% Sr. Unsec. Nts., 5/31/26			665,000		663,630
5.125% Sr. Unsec. Nts., 11/15/23			1,815,000		1,878,525
Grinding Media, Inc./MC Grinding Media Canada, Inc., 7.375% Sr. Sec. Nts., 12/15/23¹			505,000		531,816
MPG Holdco I, Inc., 7.375% Sr. Unsec. Nts., 10/15/22			2,490,000		2,614,500
Tenneco, Inc., 5% Sr. Unsec. Nts., 7/15/26			495,000		486,956
					8,721,205
Automobiles—0.6%
Daimler Finance North America LLC:
1.50% Sr. Unsec. Nts., 7/5/19¹			861,000		847,058
8.50% Sr. Unsec. Unsub. Nts., 1/18/31			485,000		730,260
Ford Motor Credit Co. LLC, 3.664% Sr. Unsec. Nts., 9/8/24			2,067,000		2,017,789
General Motors Co.:
5.00% Sr. Unsec. Nts., 4/1/35			1,705,000		1,665,052
6.25% Sr. Unsec. Nts., 10/2/43			820,000		908,044


	Principal Amount		Value
Automobiles (Continued)
General Motors Financial Co., Inc., 3% Sr. Unsec. Nts., 9/25/17	$	616,000	$	621,985
Harley-Davidson, Inc., 4.625% Sr. Unsec. Nts., 7/28/45		258,000		254,959
Hyundai Capital America, 2.40% Sr. Unsec. Nts., 10/30/18¹		624,000		626,648
Nissan Motor Acceptance Corp.:
1.55% Sr. Unsec. Nts., 9/13/19¹		234,000		230,455
2.00% Sr. Unsec. Nts., 3/8/19¹		645,000		643,538
Volkswagen Group of America Finance LLC, 1.60% Sr. Unsec. Nts., 11/20/17¹		976,000		973,143
ZF North America Capital, Inc., 4.75% Sr. Unsec. Nts., 4/29/25¹		926,000		945,678
				10,464,609
Distributors—0.1%
LKQ Corp., 4.75% Sr. Unsec. Nts., 5/15/23		2,172,000		2,172,000
Diversified Consumer Services—0.1%
Service Corp. International, 5.375% Sr. Unsec. Nts., 5/15/24		813,000		851,617
Hotels, Restaurants & Leisure—2.0%
1011778 B.C. ULC/New Red Finance, Inc., 6% Sec. Nts., 4/1/22¹		2,285,000		2,393,538
Aramark Services, Inc., 4.75% Sr. Unsec. Nts., 6/1/26¹		745,000		739,412
Boyd Gaming Corp.:
6.375% Sr. Unsec. Nts., 4/1/26¹		235,000		254,270
6.875% Sr. Unsec. Nts., 5/15/23		1,400,000		1,510,250
Caesars Entertainment Resort Properties LLC, 11% Sec. Nts., 10/1/21		835,000		916,412
Caesars Growth Properties Holdings LLC/Caesars Growth Properties Finance, Inc., 9.375% Sec. Nts., 5/1/22		830,000		898,475
CEC Entertainment, Inc., 8% Sr. Unsec. Nts., 2/15/22		230,000		235,750
Churchill Downs, Inc., 5.375% Sr. Unsec. Nts., 12/15/21		1,770,000		1,845,225
Greektown Holdings LLC/Greektown Mothership Corp., 8.875% Sec. Nts., 3/15/19¹		2,005,000		2,117,781
Hilton Domestic Operating Co., Inc., 4.25% Sr. Unsec. Nts., 9/1/24¹		500,000		487,500
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc., 6.125% Sr. Unsec. Nts., 12/1/24¹		1,260,000		1,315,125
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 5.625% Sr. Unsec. Nts., 10/15/21		140,000		144,629
International Game Technology plc, 6.25% Sr. Sec. Nts., 2/15/22¹		2,100,000		2,262,750
Isle of Capri Casinos, Inc., 5.875% Sr. Unsec. Nts., 3/15/21		970,000		1,004,556
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC:
5.00% Sr. Unsec. Nts., 6/1/24¹		1,245,000		1,274,569
5.25% Sr. Unsec. Nts., 6/1/26¹		995,000		1,012,413
Landry’s, Inc., 6.75% Sr. Unsec. Nts., 10/15/24¹		2,510,000		2,553,925
Marriott International, Inc.:
3.25% Sr. Unsec. Nts., 9/15/22		388,000		391,319
6.375% Sr. Unsec. Nts., 6/15/17		561,000		573,230
McDonald’s Corp., 2.75% Sr. Unsec. Nts., 12/9/20		387,000		393,077
MCE Finance Ltd., 5% Sr. Unsec. Nts., 2/15/21¹		1,080,000		1,078,519
MGM Growth Properties Operating Partnership LP/MGP Escrow Co.-Issuer, Inc., 5.625% Sr. Unsec. Nts., 5/1/24¹		1,230,000		1,291,500

14 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Hotels, Restaurants & Leisure (Continued)
MGM Resorts International:
6.00% Sr. Unsec. Nts., 3/15/23	$	1,250,000	$	1,353,125
6.625% Sr. Unsec. Nts., 12/15/21		1,155,000		1,293,600
Mohegan Tribal Gaming Authority, 7.875% Sr. Unsec. Nts., 10/15/24¹		780,000		798,525
PF Chang’s China Bistro, Inc., 10.25% Sr. Unsec. Nts., 6/30/20¹		550,000		540,375
Premier Cruises Ltd., 11% Sr. Unsec. Nts., 3/15/08^1,8		250,000		—
Scientific Games International, Inc., 10% Sr. Unsec. Nts., 12/1/22		785,000		785,000
Six Flags Entertainment Corp., 4.875% Sr. Unsec. Nts., 7/31/24¹		500,000		495,000
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp., 6.375% Sr. Sec. Nts., 6/1/21¹		560,000		561,400
Viking Cruises Ltd., 8.50% Sr. Unsec. Nts., 10/15/22¹		2,235,000		2,327,194
				32,848,444

Household Durables—1.0%
Ardagh Packaging Finance plc/Ardagh Holdings USA, Inc., 7.25% Sr. Unsec. Nts., 5/15/24¹		1,235,000		1,306,012
Beazer Homes USA, Inc.:
7.25% Sr. Unsec. Nts., 2/1/23		870,000		887,400
8.75% Sr. Unsec. Nts., 3/15/22¹		785,000		849,762
KB Home:
7.00% Sr. Unsec. Nts., 12/15/21		1,100,000		1,166,000
7.625% Sr. Unsec. Nts., 5/15/23		1,075,000		1,131,437
Lennar Corp.:
4.75% Sr. Unsec. Nts., 11/15/22		400,000		412,000
4.75% Sr. Unsec. Nts., 5/30/25		2,498,000		2,448,040
Meritage Homes Corp., 7.15% Sr. Unsec. Nts., 4/15/20		770,000		839,300
Newell Brands, Inc.:
2.15% Sr. Unsec. Nts., 10/15/18		386,000		388,013
5.00% Sr. Unsec. Nts., 11/15/23		628,000		673,607
5.50% Sr. Unsec. Nts., 4/1/46		289,000		331,911
PulteGroup, Inc.:
4.25% Sr. Unsec. Nts., 3/1/21		495,000		508,613
5.00% Sr. Unsec. Nts., 1/15/27		970,000		925,138
5.50% Sr. Unsec. Nts., 3/1/26		740,000		737,225
6.00% Sr. Unsec. Nts., 2/15/35		80,000		77,200
Standard Industries, Inc., 5.50% Sr. Unsec. Nts., 2/15/23¹		245,000		254,825
Taylor Morrison Communities, Inc./ Monarch Communities, Inc., 5.875% Sr. Unsec. Nts., 4/15/23¹		1,060,000		1,081,200
Toll Brothers Finance Corp., 4.375% Sr. Unsec. Nts., 4/15/23		1,929,000		1,931,411
Whirlpool Corp., 1.65% Sr. Unsec. Nts., 11/1/17		280,000		280,442
				16,229,536

Leisure Equipment & Products—0.1%
Mattel, Inc., 1.70% Sr. Unsec. Nts., 3/15/18		647,000		645,653
Proven Honour Capital Ltd., 4.125% Sr. Unsec. Nts., 5/6/26		900,000		895,722
				1,541,375

Media—3.2%
21st Century Fox America, Inc., 4.75% Sr. Unsec. Nts., 11/15/46¹		377,000		378,877
Altice Financing SA, 6.50% Sec. Nts., 1/15/22¹		2,435,000		2,544,575
Altice Finco SA, 8.125% Sec. Nts., 1/15/24¹		1,260,000		1,310,400
AMC Entertainment Holdings, Inc.: 5.75% Sr. Sub. Nts., 6/15/25		745,000		765,487


	Principal Amount		Value
Media (Continued)
AMC Entertainment Holdings, Inc.: (Continued)
5.875% Sr. Sub. Nts., 11/15/26¹	$	760,000	$	779,000
Belo Corp., 7.75% Sr. Unsec. Nts., 6/1/27		1,202,000		1,292,150
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75% Sr. Unsec. Nts., 2/15/26¹		1,135,000		1,177,562
Cequel Communications Holdings I LLC/ Cequel Capital Corp., 6.375% Sr. Unsec. Nts., 9/15/20¹		2,475,000		2,555,437
Charter Communications Operating LLC/ Charter Communications Operating Capital:
4.464% Sr. Sec. Nts., 7/23/22		417,000		435,853
6.484% Sr. Sec. Nts., 10/23/45		612,000		708,761
Cinemark USA, Inc., 4.875% Sr. Unsec. Nts., 6/1/23		495,000		503,662
Clear Channel Worldwide Holdings, Inc.: 6.50% Sr. Unsec. Nts., Series B, 11/15/22		2,455,000		2,522,512
7.625% Sr. Sub. Nts., Series B, 3/15/20		1,695,000		1,700,288
Comcast Corp., 2.35% Sr. Unsec. Nts., 1/15/27		858,000		792,774
CSC Holdings LLC:
5.25% Sr. Unsec. Nts., 6/1/24		1,200,000		1,176,000
5.50% Sr. Unsec. Nts., 4/15/27¹		750,000		761,250
10.875% Sr. Unsec. Nts., 10/15/25¹		860,000		1,025,550
DISH DBS Corp.:
5.875% Sr. Unsec. Nts., 11/15/24		2,950,000		3,046,613
6.75% Sr. Unsec. Nts., 6/1/21		925,000		1,005,938
7.75% Sr. Unsec. Nts., 7/1/26		250,000		282,500
Gray Television, Inc.:
5.125% Sr. Unsec. Nts., 10/15/24¹		760,000		737,200
5.875% Sr. Unsec. Nts., 7/15/26¹		2,380,000		2,368,100
iHeartCommunications, Inc., 9% Sr. Sec. Nts., 12/15/19		875,000		718,594
Interpublic Group of Cos., Inc. (The), 4.20% Sr. Unsec. Nts., 4/15/24		283,000		290,904
LIN Television Corp., 6.375% Sr. Unsec. Nts., 1/15/21		1,200,000		1,243,500
Lions Gate Entertainment Corp., 5.875% Sr. Unsec. Nts., 11/1/24¹		2,000,000		2,040,000
MDC Partners, Inc., 6.50% Sr. Unsec. Nts., 5/1/24¹		490,000		443,450
Mediacom LLC/Mediacom Capital Corp., 7.25% Sr. Unsec. Nts., 2/15/22		1,465,000		1,514,444
Nexstar Broadcasting, Inc., 6.125% Sr. Unsec. Nts., 2/15/22¹		755,000		785,200
Nexstar Escrow Corp., 5.625% Sr. Unsec. Nts., 8/1/24¹		1,245,000		1,238,775
SFR Group SA, 6% Sr. Sec. Nts., 5/15/22¹		2,540,000		2,616,200
Sinclair Television Group, Inc.:
5.625% Sr. Unsec. Nts., 8/1/24¹		1,845,000		1,891,125
6.125% Sr. Unsec. Nts., 10/1/22		740,000		775,150
Sirius XM Radio, Inc.:
5.375% Sr. Unsec. Nts., 7/15/26¹		995,000		975,100
6.00% Sr. Unsec. Nts., 7/15/24¹		245,000		256,638
Sky plc:
3.75% Sr. Unsec. Nts., 9/16/24¹		433,000		434,569
6.10% Sr. Unsec. Nts., 2/15/18¹		317,000		330,802
TEGNA, Inc., 5.50% Sr. Unsec. Nts., 9/15/24¹		1,680,000		1,703,100
Thomson Reuters Corp., 1.65% Sr. Unsec. Nts., 9/29/17		628,000		628,791
Time Warner Cable LLC, 4.50% Sr. Unsec. Unsub. Nts., 9/15/42		438,000		397,405
Time Warner, Inc.:
2.95% Sr. Unsec. Nts., 7/15/26		462,000		430,600
3.875% Sr. Unsec. Nts., 1/15/26		200,000		200,317

15 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Media (Continued)
Tribune Media Co., 5.875% Sr. Unsec. Nts., 7/15/22	$	965,000	$	983,094
Univision Communications, Inc.:
5.125% Sr. Sec. Nts., 5/15/23¹		245,000		242,244
5.125% Sr. Sec. Nts., 2/15/25¹		2,045,000		1,963,200
Viacom, Inc.:
2.25% Sr. Unsec. Nts., 2/4/22		191,000		179,522
3.45% Sr. Unsec. Nts., 10/4/26		231,000		213,607
4.375% Sr. Unsec. Nts., 3/15/43		292,000		233,008
Virgin Media Secured Finance plc:
5.25% Sr. Sec. Nts., 1/15/26¹		577,000		571,951
5.50% Sr. Sec. Nts., 8/15/26¹		705,000		705,000
Ziggo Secured Finance BV, 5.50% Sr. Sec. Nts., 1/15/27¹		2,515,000		2,457,910
				54,334,689
Multiline Retail—0.1%
Dollar Tree, Inc., 5.75% Sr. Sec. Nts., 3/1/23		2,149,000		2,286,149
Specialty Retail—0.6%
AutoZone, Inc.:
1.30% Sr. Unsec. Nts., 1/13/17		161,000		161,006
1.625% Sr. Unsec. Nts., 4/21/19		174,000		172,466
Best Buy Co., Inc., 5.50% Sr. Unsec. Nts., 3/15/21		574,000		630,815
CST Brands, Inc., 5% Sr. Unsec. Nts., 5/1/23		1,255,000		1,302,062
GameStop Corp.:
5.50% Sr. Unsec. Nts., 10/1/19¹		1,030,000		1,058,325
6.75% Sr. Unsec. Nts., 3/15/21¹		1,425,000		1,439,250
Guitar Center, Inc., 6.50% Sr. Sec. Nts., 4/15/19¹		615,000		561,187
L Brands, Inc.:
5.625% Sr. Unsec. Nts., 2/15/22		324,000		346,275
6.625% Sr. Unsec. Nts., 4/1/21		1,085,000		1,223,338
6.875% Sr. Unsec. Nts., 11/1/35		1,595,000		1,634,875
Lowe’s Cos., Inc., 3.70% Sr. Unsec. Nts., 4/15/46		414,000		386,620
Ross Stores, Inc., 3.375% Sr. Unsec. Nts., 9/15/24		555,000		559,118
Sally Holdings LLC/Sally Capital, Inc., 5.625% Sr. Unsec. Nts., 12/1/25		890,000		930,050
Signet UK Finance plc, 4.70% Sr. Unsec. Nts., 6/15/24		480,000		460,192
				10,865,579
Textiles, Apparel & Luxury Goods—0.6%
Hanesbrands, Inc.:
4.625% Sr. Unsec. Nts., 5/15/24¹		425,000		414,375
4.875% Sr. Unsec. Nts., 5/15/26¹		1,143,000		1,122,998
Levi Strauss & Co., 5% Sr. Unsec. Nts., 5/1/25		3,031,000		3,046,155
PVH Corp., 4.50% Sr. Unsec. Unsub. Nts., 12/15/22		1,002,000		1,022,040
Springs Industries, Inc., 6.25% Sr. Sec. Nts., 6/1/21		3,060,000		3,182,400
William Carter Co. (The), 5.25% Sr. Unsec. Nts., 8/15/21		825,000		859,031
				9,646,999
Consumer Staples—2.7%
Beverages—0.4%
Anheuser-Busch InBev Finance, Inc.:
1.90% Sr. Unsec. Nts., 2/1/19		970,000		971,667
3.65% Sr. Unsec. Nts., 2/1/26		508,000		515,890
4.90% Sr. Unsec. Nts., 2/1/46		343,000		369,747
Anheuser-Busch InBev Worldwide, Inc., 8.20% Sr. Unsec. Unsub. Nts., 1/15/39		390,000		587,427
Beam Suntory, Inc., 1.875% Sr. Unsec. Nts., 5/15/17		305,000		305,456


	Principal Amount		Value
Beverages (Continued)
Constellation Brands, Inc., 4.75% Sr. Unsec. Nts., 11/15/24	$	915,000	$	975,847
Molson Coors Brewing Co.:
1.45% Sr. Unsec. Nts., 7/15/19		348,000		342,928
2.10% Sr. Unsec. Nts., 7/15/21		833,000		811,394
4.20% Sr. Unsec. Nts., 7/15/46		241,000		225,153
Pernod Ricard SA:
2.95% Sr. Unsec. Nts., 1/15/17¹		708,000		708,386
4.25% Sr. Unsec. Nts., 7/15/22¹		704,000		736,766
				6,550,661
Food & Staples Retailing—0.8%
Albertsons Cos. LLC/Safeway, Inc./ New Albertson’s, Inc./Albertson’s LLC, 6.625% Sr. Unsec. Nts., 6/15/24¹		745,000		778,525
CVS Health Corp., 2.875% Sr. Unsec. Nts., 6/1/26		932,000		888,838
Ingles Markets, Inc., 5.75% Sr. Unsec. Nts., 6/15/23		1,485,000		1,533,263
Koninklijke Ahold Delhaize NV, 6.50% Sr. Unsec. Nts., 6/15/17		565,000		577,310
Kroger Co. (The):
2.00% Sr. Unsec. Nts., 1/15/19		40,000		40,102
6.40% Sr. Unsec. Nts., 8/15/17		559,000		575,676
6.80% Sr. Unsec. Nts., 12/15/18		287,000		314,259
6.90% Sr. Unsec. Nts., 4/15/38		248,000		317,598
New Albertsons, Inc., 7.45% Sr. Unsec. Nts., 8/1/29		740,000		703,000
Omnicare, Inc., 4.75% Sr. Unsec. Nts., 12/1/22		1,765,000		1,876,899
Performance Food Group, Inc., 5.50% Sr. Unsec. Nts., 6/1/24¹		495,000		499,950
Rite Aid Corp., 6.125% Sr. Unsec. Nts., 4/1/23¹		2,100,000		2,265,375
Simmons Foods, Inc., 7.875% Sec. Nts., 10/1/21¹		10,000		10,325
SUPERVALU, Inc., 6.75% Sr. Unsec. Nts., 6/1/21		740,000		751,100
US Foods, Inc., 5.875% Sr. Unsec. Nts., 6/15/24¹		125,000		129,688
Walgreens Boots Alliance, Inc.:
1.75% Sr. Unsec. Nts., 5/30/18		667,000		667,796
3.10% Sr. Unsec. Nts., 6/1/23		1,020,000		1,013,596
Wal-Mart Stores, Inc., 4.30% Sr. Unsec. Nts., 4/22/44		498,000		525,746
				13,469,046
Food Products—0.9%
Bunge Ltd. Finance Corp.:
3.20% Sr. Unsec. Nts., 6/15/17		615,000		619,680
3.25% Sr. Unsec. Nts., 8/15/26		590,000		566,873
8.50% Sr. Unsec. Nts., 6/15/19		400,000		458,593
Dean Foods Co., 6.50% Sr. Unsec. Nts., 3/15/23¹		2,065,000		2,178,575
ESAL GmbH, 6.25% Sr. Unsec. Nts., 2/5/23¹		530,000		534,240
Ingredion, Inc., 1.80% Sr. Unsec. Nts., 9/25/17		635,000		635,885
JBS USA LLC/JBS USA Finance, Inc., 5.75% Sr. Unsec. Nts., 6/15/25¹		1,315,000		1,338,012
JM Smucker Co. (The), 1.75% Sr. Unsec. Nts., 3/15/18		498,000		498,732
Kraft Heinz Foods Co.:
2.80% Sr. Unsec. Nts., 7/2/20		867,000		875,341
4.375% Sr. Unsec. Nts., 6/1/46		526,000		495,955
Lamb Weston Holdings, Inc., 4.875% Sr. Unsec. Nts., 11/1/26¹		498,000		493,954
Land O’ Lakes, Inc., 6% Sr. Unsec. Nts., 11/15/22¹		745,000		815,775

16 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Food Products (Continued)
Minerva Luxembourg SA, 6.50% Sr. Unsec. Nts., 9/20/26¹	$	585,000	$	565,987
Mondelez International Holdings Netherlands BV, 1.625% Sr. Unsec. Nts., 10/28/19¹		966,000		947,148
Pilgrim’s Pride Corp., 5.75% Sr. Unsec. Nts., 3/15/25¹		910,000		914,550
Post Holdings, Inc., 6.75% Sr. Unsec. Nts., 12/1/21¹		940,000		1,005,800
TreeHouse Foods, Inc., 6% Sr. Unsec. Nts., 2/15/24¹		1,445,000		1,520,862
WhiteWave Foods Co. (The), 5.375% Sr. Unsec. Nts., 10/1/22		670,000		736,163
				15,202,125
Household Products—0.0%
Spectrum Brands, Inc., 6.125% Sr. Unsec. Nts., 12/15/24		360,000		381,600
Personal Products—0.4%
Avon International Operations, Inc., 7.875% Sr. Sec. Nts., 8/15/22¹		3,035,000		3,213,306
Edgewell Personal Care Co., 4.70% Sr. Unsec. Nts., 5/24/22		85,000		87,975
Revlon Consumer Products Corp.:
5.75% Sr. Unsec. Nts., 2/15/21		2,205,000		2,227,050
6.25% Sr. Unsec. Nts., 8/1/24		500,000		513,750
				6,042,081
Tobacco—0.2%
Altria Group, Inc., 3.875% Sr. Unsec. Nts., 9/16/46		588,000		543,825
Imperial Brands Finance plc, 2.05% Sr. Unsec. Nts., 7/20/18¹		947,000		946,987
Reynolds American, Inc., 5.85% Sr. Unsec. Nts., 8/15/45		738,000		875,523
Vector Group Ltd., 7.75% Sr. Sec. Nts., 2/15/21		1,170,000		1,222,650
				3,588,985
Energy—8.8%
Energy Equipment & Services—1.1%
Endeavor Energy Resources LP/EER Finance, Inc., 7% Sr. Unsec. Nts., 8/15/21¹		550,000		574,750
Ensco plc, 5.20% Sr. Unsec. Nts., 3/15/25		685,000		595,039
Halliburton Co., 5% Sr. Unsec. Nts., 11/15/45		257,000		279,270
Helmerich & Payne International Drilling Co., 4.65% Sr. Unsec. Nts., 3/15/25		247,000		255,332
McDermott International, Inc., 8% Sec. Nts., 5/1/21¹		1,585,000		1,608,775
Noble Holding International Ltd., 7.75% Sr. Unsec. Nts., 1/15/24		760,000		716,756
Pertamina Persero PT:
5.625% Sr. Unsec. Nts., 5/20/43¹		962,000		889,926
6.45% Sr. Unsec. Nts., 5/30/44¹		2,860,000		2,906,549
Precision Drilling Corp., 6.625%, 11/15/20		466,370		475,697
Rowan Cos., Inc.:
4.875% Sr. Unsec. Unsub. Nts., 6/1/22		1,012,000		961,400
7.375% Sr. Unsec. Nts., 6/15/25		1,775,000		1,814,937
Schlumberger Holdings Corp.:
1.90% Sr. Unsec. Nts., 12/21/17¹		789,000		792,082
4.00% Sr. Unsec. Nts., 12/21/25¹		528,000		553,206
Sinopec Group Overseas Development 2014 Ltd., 1.75% Sr. Unsec. Nts., 4/10/17¹		637,000		636,982
Transocean, Inc., 9% Sr. Unsec. Nts., 7/15/23¹		2,155,000		2,219,650


	Principal Amount		Value
Energy Equipment & Services (Continued)
Unit Corp., 6.625% Sr. Sub. Nts., 5/15/21	$	1,970,000	$	1,920,750
Weatherford International Ltd., 9.875% Sr. Unsec. Nts., 2/15/24¹		507,000		541,537
				17,742,638
Oil, Gas & Consumable Fuels—7.7%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., 7.875% Sr. Unsec. Nts., 12/15/24¹		1,010,000		1,050,400
Anadarko Petroleum Corp.: 4.50% Sr. Unsec. Nts., 7/15/44		168,000		158,149
6.20% Sr. Unsec. Nts., 3/15/40		175,000		200,753
Apache Corp., 4.75% Sr. Unsec. Nts., 4/15/43		317,000		327,134
Baytex Energy Corp., 5.625% Sr. Unsec. Nts., 6/1/24¹		1,635,000		1,451,062
Bharat Petroleum Corp. Ltd., 4% Sr. Unsec. Nts., 5/8/25		1,960,000		1,925,990
Bill Barrett Corp.:
7.00% Sr. Unsec. Nts., 10/15/22		1,370,000		1,315,200
7.625% Sr. Unsec. Nts., 10/1/19		2,863,000		2,834,370
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.125% Sr. Unsec. Nts., 11/15/22¹		570,000		572,850
Boardwalk Pipelines LP, 4.95% Sr. Unsec. Nts., 12/15/24		480,000		493,060
BP Capital Markets plc, 1.676% Sr. Unsec. Nts., 5/3/19		967,000		960,245
Buckeye Partners LP, 3.95% Sr. Unsec. Nts., 12/1/26		230,000		224,505
California Resources Corp., 8% Sec. Nts., 12/15/22¹		2,658,000		2,378,910
Calumet Specialty Products Partners LP/Calumet Finance Corp., 6.50% Sr. Unsec. Nts., 4/15/21		1,415,000		1,206,287
Carrizo Oil & Gas, Inc., 6.25% Sr. Unsec. Nts., 4/15/23		2,525,000		2,600,750
Cheniere Corpus Christi Holdings LLC:
5.875% Sr. Sec. Nts., 3/31/25¹		2,530,000		2,590,872
7.00% Sr. Sec. Nts., 6/30/24¹		2,065,000		2,245,687
Chesapeake Energy Corp.:
4.875% Sr. Unsec. Nts., 4/15/22		630,000		578,025
6.125% Sr. Unsec. Nts., 2/15/21		1,135,000		1,112,300
8.00% Sec. Nts., 12/15/22¹		2,245,000		2,434,141
8.00% Sr. Unsec. Nts., 1/15/25¹		760,000		778,050
Chevron Corp., 1.561% Sr. Unsec. Nts., 5/16/19		972,000		968,526
CITGO Petroleum Corp., 6.25% Sr. Sec. Nts., 8/15/22¹		70,000		73,150
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp., 12% Sec. Nts., 11/1/21		1,440,000		1,504,800
CNOOC Finance 2011 Ltd., 4.25% Sr. Unsec. Nts., 1/26/21¹		650,000		677,851
CNOOC Nexen Finance 2014 ULC, 1.625% Sr. Unsec. Nts., 4/30/17		546,000		545,678
Columbia Pipeline Group, Inc., 4.50% Sr. Unsec. Nts., 6/1/25		458,000		481,382
Compania General de Combustibles SA, 9.50% Sr. Unsec. Nts., 11/7/21¹		445,000		449,895
Concho Resources, Inc., 5.50% Sr. Unsec. Unsub. Nts., 4/1/23		740,000		770,562
ConocoPhillips Co.:
4.95% Sr. Unsec. Nts., 3/15/26		108,000		119,291
5.95% Sr. Unsec. Nts., 3/15/46		230,000		285,160
CONSOL Energy, Inc.:
5.875% Sr. Unsec. Nts., 4/15/22		2,730,000		2,689,050
8.00% Sr. Unsec. Nts., 4/1/23		1,320,000		1,361,250

17 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Oil, Gas & Consumable Fuels (Continued)
Continental Resources, Inc., 5% Sr. Unsec. Nts., 9/15/22	$	520,000	$	526,833
Denbury Resources, Inc.:
5.50% Sr. Sub. Nts., 5/1/22		987,000		866,092
6.375% Sr. Sub. Nts., 8/15/21		2,755,000		2,493,275
9.00% Sec. Nts., 5/15/21¹		1,140,000		1,239,750
Devon Energy Corp., 4.75% Sr. Unsec. Nts., 5/15/42		1,367,000		1,293,729
Energy Transfer Equity LP, 7.50% Sr. Sec. Nts., 10/15/20		1,975,000		2,212,000
EnLink Midstream Partners LP, 4.85% Sr. Unsec. Nts., 7/15/26		233,000		235,152
Enterprise Products Operating LLC:
4.85% Sr. Unsec. Nts., 8/15/42		174,000		174,288
4.90% Sr. Unsec. Nts., 5/15/46		171,000		175,876
EP Energy LLC/Everest Acquisition Finance, Inc.:
7.75% Sr. Unsec. Nts., 9/1/22		860,000		700,900
8.00% Sr. Sec. Nts., 11/29/24¹		1,260,000		1,360,422
9.375% Sr. Unsec. Nts., 5/1/20		635,000		588,562
EQT Midstream Partners LP, 4.125% Sr. Unsec. Nts., 12/1/26		537,000		523,722
Gazprom OAO Via Gaz Capital SA, 4.95% Sr. Unsec. Nts., 7/19/22¹		3,580,000		3,697,428
Genesis Energy LP/Genesis Energy Finance Corp.:
5.75% Sr. Unsec. Nts., 2/15/21		515,000		522,725
6.00% Sr. Unsec. Nts., 5/15/23		885,000		904,913
Gulfport Energy Corp., 6% Sr. Unsec. Nts., 10/15/24¹		1,765,000		1,804,712
Halcon Resources Corp.:
8.625% Sec. Nts., 2/1/20¹		1,745,000		1,823,525
12.00% Sec. Nts., 2/15/22¹		274,000		300,030
Hess Corp., 5.60% Sr. Unsec. Nts., 2/15/41		525,000		535,156
Indian Oil Corp. Ltd., 5.75% Sr. Unsec. Nts., 8/1/23		1,215,000		1,333,322
Jones Energy Holdings LLC/Jones Energy Finance Corp., 6.75% Sr. Unsec. Nts., 4/1/22		1,888,000		1,807,760
KazMunayGas National Co. JSC:
4.40% Sr. Unsec. Nts., 4/30/23¹		280,000		275,949
6.375% Sr. Unsec. Nts., 4/9/21¹		2,300,000		2,502,239
7.00% Sr. Unsec. Nts., 5/5/20¹		1,880,000		2,070,406
Kinder Morgan, Inc., 5.55% Sr. Unsec. Nts., 6/1/45		754,000		794,482
Laredo Petroleum, Inc., 5.625% Sr. Unsec. Nts., 1/15/22		1,590,000		1,609,875
LBC Tank Terminals Holding Netherlands BV, 6.875% Sr. Unsec. Nts., 5/15/231		1,530,000		1,572,075
MEG Energy Corp.:
6.50% Sr. Unsec. Nts., 3/15/21¹		1,345,000		1,250,850
7.00% Sr. Unsec. Nts., 3/31/24¹		1,355,000		1,233,050
Murphy Oil Corp.:
4.70% Sr. Unsec. Nts., 12/1/22		785,000		761,207
6.875% Sr. Unsec. Nts., 8/15/24		720,000		768,600
Murray Energy Corp., 11.25% Sec. Nts., 4/15/21¹		3,250,000		2,526,875
Newfield Exploration Co., 5.625% Sr. Unsec. Nts., 7/1/24		515,000		539,462
NGL Energy Partners LP/NGL Energy
Finance Corp.:
6.875% Sr. Unsec. Nts., 10/15/21		1,365,000		1,402,537
7.50% Sr. Unsec. Nts., 11/1/23¹		885,000		918,187
Noble Energy, Inc., 5.05% Sr. Unsec. Nts., 11/15/44		240,000		241,155
Novatek OAO via Novatek Finance DAC, 4.422% Sr. Unsec. Nts., 12/13/22¹		915,000		908,888


		Principal Amount		Value
Oil, Gas & Consumable Fuels (Continued)
Oasis Petroleum, Inc.:
6.875% Sr. Unsec. Nts., 3/15/22		$	1,110,000	$	1,143,300
6.875% Sr. Unsec. Nts., 1/15/23			1,545,000		1,591,350
ONEOK Partners LP, 4.90% Sr. Unsec. Nts., 3/15/25			421,000		451,774
ONEOK, Inc., 7.50% Sr. Unsec. Nts., 9/1/23			1,360,000		1,567,400
PBF Holding Co. LLC/PBF Finance Corp., 7% Sr. Sec. Nts., 11/15/23¹			2,090,000		2,090,000
Peabody Energy Corp.:
6.00% Sr. Unsec. Nts., 11/15/18			1,110,000		682,650
10.00% Sec. Nts., 3/15/22¹			2,075,000		1,851,937
Petrobras Global Finance BV:
4.375% Sr. Unsec. Nts., 5/20/23			2,405,000		2,107,261
5.75% Sr. Unsec. Nts., 1/20/20			135,000		137,025
8.375% Sr. Unsec. Nts., 5/23/21			4,830,000		5,216,400
8.75% Sr. Unsec. Nts., 5/23/26			2,680,000		2,897,750
Petroleos Mexicanos:
3.75% Sr. Unsec. Nts., 4/16/26	EUR		1,005,000		1,029,386
4.625% Sr. Unsec. Nts., 9/21/23¹			2,480,000		2,418,744
5.375% Sr. Unsec. Nts., 3/13/22¹			510,000		522,867
5.50% Sr. Unsec. Nts., 6/27/44			1,720,000		1,439,984
6.375% Sr. Unsec. Nts., 2/4/21¹			820,000		875,350
6.50% Sr. Unsec. Nts., 3/13/27¹			1,030,000		1,063,732
6.875% Sr. Unsec. Nts., 8/4/26¹			1,100,000		1,163,250
Phillips 66 Partners LP, 3.605% Sr. Unsec. Nts., 2/15/25			817,000		800,521
Rain CII Carbon LLC/CII Carbon Corp., 8% Sec. Nts., 12/1/18¹			1,395,000		1,395,000
Range Resources Corp.:
5.00% Sr. Unsec. Nts., 8/15/22¹			830,000		828,962
5.00% Sr. Unsec. Nts., 3/15/23¹			325,000		322,563
Regency Energy Partners LP/Regency Energy Finance Corp., 5% Sr. Unsec. Nts., 10/1/22			645,000		683,625
Rose Rock Midstream LP/Rose Rock Finance Corp., 5.625% Sr. Unsec. Nts., 11/15/23			545,000		534,100
RSP Permian, Inc., 5.25% Sr. Unsec. Nts., 1/15/25¹			760,000		765,700
Sabine Pass Liquefaction LLC, 5.75% Sr. Sec. Nts., 5/15/24			575,000		619,563
Sanchez Energy Corp.:
6.125% Sr. Unsec. Nts., 1/15/23			1,225,000		1,169,875
7.75% Sr. Unsec. Nts., 6/15/21			405,000		414,113
SemGroup Corp., 7.50% Sr. Unsec. Nts., 6/15/21			505,000		522,675
Shell International Finance BV:
1.375% Sr. Unsec. Nts., 5/10/19			728,000		720,740
4.00% Sr. Unsec. Nts., 5/10/46			355,000		339,620
SM Energy Co., 6.50% Sr. Unsec. Nts., 1/1/23			1,765,000		1,802,506
Southwestern Energy Co., 5.80% Sr. Unsec. Nts., 1/23/20			780,000		807,300
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.50% Sr. Unsec. Nts., 8/15/22			1,420,000		1,391,600
Sunoco LP/Sunoco Finance Corp., 6.375% Sr. Unsec. Nts., 4/1/23			755,000		768,212
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., 5.50% Sr. Unsec. Nts., 9/15/24¹			500,000		498,750
Tesoro Logistics LP, 5.25% Sr. Unsec.
Nts., 1/15/25			162,000		166,050
TransCanada PipeLines Ltd., 1.625% Sr. Unsec. Nts., 11/9/17			968,000		967,352
Ultrapar International SA, 5.25% Sr. Unsec. Nts., 10/6/26¹			445,000		438,281

18 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Oil, Gas & Consumable Fuels (Continued)
Whiting Petroleum Corp., 5.75% Sr. Unsec. Nts., 3/15/21	$	1,640,000	$	1,641,378
WPX Energy, Inc.:
5.25% Sr. Unsec. Nts., 9/15/24		585,000		570,375
6.00% Sr. Unsec. Nts., 1/15/22		305,000		314,150
8.25% Sr. Unsec. Nts., 8/1/23		1,140,000		1,279,650
				129,874,165
Financials—6.2%
Capital Markets—1.3%
Affinion Group, Inc., 7.875% Sr. Unsec. Nts., 12/15/18		2,095,000		1,833,125
Apollo Management Holdings LP, 4% Sr. Unsec. Nts., 5/30/24¹		765,000		758,348
Bank of New York Mellon Corp. (The), 3% Sub. Nts., 10/30/28		401,000		381,162
Brookfield Asset Management, Inc., 4% Sr. Unsec. Nts., 1/15/25		873,000		856,701
Brookfield Residential Properties, Inc., 6.50% Sr. Unsec. Nts., 12/15/20¹		2,025,000		2,080,687
Credit Suisse AG (New York), 3.625% Sr. Unsec. Nts., 9/9/24		512,000		515,309
Credit Suisse Group Funding Guernsey Ltd., 4.55% Sr. Unsec. Nts., 4/17/26		360,000		374,077
Deutsche Bank AG (London), 6% Sr. Unsec. Nts., 9/1/17		474,000		485,272
Drawbridge Special Opportunities Fund LP/Drawbridge Special Opportunities Finance Corp., 5% Sr. Unsec. Nts., 8/1/21¹		3,145,000		3,042,787
E*TRADE Financial Corp., 5.875% Jr. Sub. Perpetual Bonds^2,9		978,000		974,821
Enviva Partners LP/Enviva Partners Finance Corp., 8.50% Sr. Unsec. Nts., 11/1/21¹		1,235,000		1,290,575
Equate Petrochemical BV, 4.25% Sr. Unsec. Nts., 11/3/26¹		1,010,000		967,115
Goldman Sachs Group, Inc. (The):
3.50% Sr. Unsec. Nts., 11/16/26		556,000		545,726
3.75% Sr. Unsec. Nts., 2/25/26		548,000		549,888
KCG Holdings, Inc., 6.875% Sr. Sec. Nts., 3/15/20¹		1,275,000		1,281,375
Morgan Stanley, 5% Sub. Nts., 11/24/25		859,000		918,104
MPH Acquisition Holdings LLC, 7.125% Sr. Unsec. Nts., 6/1/24¹		495,000		522,275
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25% Sec. Nts., 5/15/23¹		495,000		540,169
Raymond James Financial, Inc., 3.625% Sr. Unsec. Nts., 9/15/26		543,000		529,835
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp., 6.125% Sr. Sec. Nts., 8/15/21¹		375,000		384,375
S&P Global, Inc., 2.50% Sr. Unsec. Nts., 8/15/18		941,000		949,066
Springleaf Finance Corp., 8.25% Sr. Unsec. Nts., 12/15/20		490,000		534,100
UBS Group Funding Jersey Ltd., 4.125% Sr. Unsec. Nts., 4/15/26¹		584,000		597,580
				20,912,472
Commercial Banks—1.8%
Astana Finance JSC, 9.16% Sr. Unsec. Nts., 3/14/12⁸		315,159		—
Australia & New Zealand Banking Group Ltd., 6.75% Jr. Sub. Perpetual Bonds^1,2,9		105,000		111,044
Banco ABC Brasil SA, 7.875% Sub. Nts., 4/8/20¹		150,000		158,859
Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 11/30/20¹		170,000		181,475


	Principal Amount		Value
Commercial Banks (Continued)
Banco Macro SA, 6.75% Sub. Nts., 11/4/26^1,2	$	265,000	$	251,750
Bank of America Corp.:
3.248% Sr. Unsec. Nts., 10/21/27		803,000		767,088
7.75% Jr. Sub. Nts., 5/14/38		645,000		889,381
Bank of China Ltd., 5% Sub. Nts., 11/13/24¹		575,000		597,328
BankAmerica Capital III, 1.45% Jr. Sub. Nts., 1/15/27²		420,000		380,625
BB&T Corp., 2.05% Sr. Unsec. Nts., 5/10/21		993,000		974,321
BPCE SA:
2.65% Sr. Unsec. Nts., 2/3/21		759,000		758,935
3.375% Sr. Unsec. Nts., 12/2/26		373,000		365,663
CIT Group, Inc.:
4.25% Sr. Unsec. Nts., 8/15/17		575,000		582,906
5.00% Sr. Unsec. Nts., 8/15/22		2,440,000		2,549,800
Citigroup, Inc., 6.675% Sub. Nts., 9/13/43		296,000		375,841
Citizens Bank NA (Providence RI), 2.55% Sr. Unsec. Nts., 5/13/21		776,000		771,350
Constellis Holdings LLC/Constellis Finance Corp., 9.75% Sec. Nts., 5/15/20¹		1,420,000		1,462,600
Danske Bank AS, 2.80% Sr. Unsec. Nts., 3/10/21¹		525,000		528,591
Fifth Third Bank (Cincinnati OH), 3.85% Sub. Nts., 3/15/26		491,000		494,358
First Republic Bank, 4.375% Sub. Nts., 8/1/46		405,000		368,801
Global Bank Corp., 4.50% Sr. Unsec. Nts., 10/20/21¹		605,000		590,601
Grupo Aval Ltd., 4.75% Sr. Unsec. Nts., 9/26/22¹		825,000		815,925
HSBC Holdings plc, 2.65% Sr. Unsec. Nts., 1/5/22		801,000		783,550
Huntington Bancshares, Inc.:
3.15% Sr. Unsec. Nts., 3/14/21		528,000		535,518
4.35% Sub. Nts., 2/4/23		660,000		671,374
ICICI Bank Ltd., 6.375% Jr. Sub. Nts., 4/30/22^1,2		930,000		936,941
ING Bank NV, 2.75% Sr. Unsec. Nts., 3/22/21¹		705,000		707,843
JPMorgan Chase & Co.:
2.295% Sr. Unsec. Nts., 8/15/21		213,000		208,996
2.70% Sr. Unsec. Nts., 5/18/23		411,000		402,019
Kenan Advantage Group, Inc. (The), 7.875% Sr. Unsec. Nts., 7/31/23¹		1,660,000		1,684,900
KeyBank NA (Cleveland OH), 3.40% Sub. Nts., 5/20/26		833,000		810,265
Krung Thai Bank PCL (Cayman Islands), 5.20% Sub. Nts., 12/26/24²		440,000		456,676
Lloyds Banking Group plc, 6.413% Jr. Sub. Perpetual Bonds^1,2,9		566,000		609,865
PNC Bank NA, 2.55% Sr. Unsec. Nts., 12/9/21		399,000		399,220
Regions Bank (Birmingham AL), 2.25% Sr. Unsec. Nts., 9/14/18		477,000		478,671
Royal Bank of Scotland Group plc, 7.64% Jr. Sub. Perpetual Bonds^2,9		942,000		878,415
Sberbank of Russia Via SB Capital SA, 5.50% Sub. Nts., 2/26/24^1,2		1,480,000		1,507,750
Skandinaviska Enskilda Banken AB, 2.625% Sr. Unsec. Nts., 3/15/21		526,000		526,397
Standard Chartered plc, 6.409% Jr. Sub. Perpetual Bonds^1,2,9		1,100,000		844,250
SunTrust Bank (Atlanta GA), 3.30% Sub. Nts., 5/15/26		417,000		402,702
Swedbank AB, 2.65% Sr. Unsec. Nts., 3/10/21¹		557,000		557,683

19 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


		Principal Amount		Value
Commercial Banks (Continued)
TC Ziraat Bankasi AS, 4.75% Sr. Unsec. Nts., 4/29/21¹		$	250,000	$	239,775
Turkiye Halk Bankasi AS, 5% Sr. Unsec. Nts., 7/13/21¹			515,000		483,006
Turkiye Is Bankasi, 5.375% Sr. Unsec. Nts., 10/6/21¹			300,000		288,042
Turkiye Vakiflar Bankasi TAO, 6.875% Sub. Nts., 2/3/25^1,2			625,000		603,750
US Bancorp, 3.10% Sub. Nts., 4/27/26			586,000		570,357
Wells Fargo & Co.:
4.75% Sub. Nts., 12/7/46			558,000		564,568
5.90% Jr. Sub. Perpetual Bonds, Series S^2,9			685,000		689,281
					30,819,056
Consumer Finance—0.6%
Ahern Rentals, Inc., 7.375% Sec. Nts., 5/15/23¹			2,090,000		1,766,050
Ally Financial, Inc.:
4.25% Sr. Unsec. Nts., 4/15/21			1,704,000		1,724,235
4.625% Sr. Unsec. Nts., 5/19/22			1,000,000		1,013,750
5.75% Sub. Nts., 11/20/25			1,175,000		1,176,469
Capital One Financial Corp., 3.20% Sr. Unsec. Nts., 2/5/25			656,000		636,120
Discover Financial Services, 3.75% Sr. Unsec. Nts., 3/4/25			606,000		592,740
Navient Corp.:
6.625% Sr. Unsec. Nts., 7/26/21			505,000		535,300
7.25% Sr. Unsec. Nts., 1/25/22			2,300,000		2,443,750
Synchrony Financial, 4.50% Sr. Unsec. Nts., 7/23/25			172,000		176,755
TMX Finance LLC/TitleMax Finance Corp., 8.50% Sr. Sec. Nts., 9/15/18¹			685,000		601,087
					10,666,256
Diversified Financial Services—0.1%
Berkshire Hathaway Energy Co., 2% Sr. Unsec. Nts., 11/15/18			267,000		268,216
JPMorgan Hipotecaria su Casita, 6.47% Sec. Nts., 8/26/35^10,11	MXN		5,808,600		28,301
Peachtree Corners Funding Trust, 3.976% Sr. Unsec. Nts., 2/15/25¹			445,000		434,393
Suntory Holdings Ltd., 1.65% Sr. Unsec. Nts., 9/29/17¹			327,000		327,175
Voya Financial, Inc., 5.65% Jr. Sub. Nts., 5/15/53²			810,000		798,862
					1,856,947
Insurance—0.5%
Arch Capital Finance LLC, 4.011% Sr. Unsec. Nts., 12/15/26			558,000		565,883
AXIS Specialty Finance plc, 5.15% Sr. Unsec. Nts., 4/1/45			600,000		594,679
CNO Financial Group, Inc., 4.50% Sr. Unsec. Nts., 5/30/20			2,195,000		2,260,850
Five Corners Funding Trust, 4.419% Unsec. Nts., 11/15/23¹			744,000		786,840
Manulife Financial Corp., 4.15% Sr. Unsec. Nts., 3/4/26			525,000		547,970
MetLife, Inc., 5.25% Jr. Sub. Perpetual Bonds^2,9			446,000		452,690
NFP Corp., 9% Sr. Unsec. Nts., 7/15/21¹			1,525,000		1,614,594
Principal Financial Group, Inc., 4.30% Sr. Unsec. Nts., 11/15/46			399,000		391,747
Prudential Financial, Inc., 5.375% Jr. Sub. Nts., 5/15/45²			617,000		632,425
TIAA Asset Management Finance Co. LLC, 4.125% Sr. Unsec. Nts., 11/1/24¹			914,000		923,584


		Principal Amount		Value
Insurance (Continued)
XLIT Ltd., 6.50% Jr. Sub. Perpetual Bonds^2,9		$	360,000	$	281,700
					9,052,962
Real Estate Investment Trusts (REITs)—1.3%
American Tower Corp.:
2.80% Sr. Unsec. Nts., 6/1/20			616,000		616,469
5.90% Sr. Unsec. Nts., 11/1/21			279,000		312,453
Banco Invex SA/Hipotecaria Creditoy Casa SA de CV, 6.45% Sec. Nts., 3/13/34^8,11	MXN		4,830,531		—
Boston Properties LP, 3.70% Sr. Unsec. Nts., 11/15/18			593,000		610,947
Communications Sales & Leasing, Inc./CSL Capital LLC:
7.125% Sr. Unsec. Nts., 12/15/24¹			760,000		769,500
8.25% Sr. Unsec. Nts., 10/15/23			1,195,000		1,272,675
CTR Partnership LP/CareTrust Capital Corp., 5.875% Sr. Unsec. Nts., 6/1/21			760,000		777,100
DuPont Fabros Technology LP, 5.875% Sr. Unsec. Nts., 9/15/21			1,535,000		1,606,953
Equinix, Inc.:
5.375% Sr. Unsec. Nts., 1/1/22			2,200,000		2,321,000
5.875% Sr. Unsec. Nts., 1/15/26			1,135,000		1,197,425
FelCor Lodging LP, 6% Sr. Unsec. Nts., 6/1/25			1,035,000		1,081,575
GLP Capital LP/GLP Financing II, Inc., 5.375% Sr. Unsec. Nts., 11/1/23			810,000		870,750
HCP, Inc., 5.625% Sr. Unsec. Nts., 5/1/17			332,000		336,436
Highwoods Realty LP, 5.85% Sr. Unsec. Nts., 3/15/17			407,000		410,461
Iron Mountain US Holdings, Inc., 5.375% Sr. Unsec. Nts., 6/1/26¹			995,000		967,638
iStar, Inc.:
4.875% Sr. Unsec. Nts., 7/1/18			2,145,000		2,150,362
5.00% Sr. Unsec. Nts., 7/1/19			905,000		911,787
Lamar Media Corp., 5.75% Sr. Unsec. Nts., 2/1/26			620,000		654,875
MPT Operating Partnership LP/MPT Finance Corp., 6.375% Sr. Unsec. Nts., 3/1/24			740,000		777,925
Outfront Media Capital LLC/Outfront Media Capital Corp., 5.875% Sr. Unsec. Nts., 3/15/25			2,040,000		2,144,550
Starwood Property Trust, Inc., 5% Sr. Unsec. Nts., 12/15/21¹			760,000		772,084
Trust F/1401, 5.25% Sr. Unsec. Nts., 1/30/26¹			1,145,000		1,102,063
WEA Finance LLC/Westfield UK & Europe Finance plc, 1.75% Sr. Unsec. Nts., 9/15/17¹			434,000		434,330
Welltower, Inc., 2.25% Sr. Unsec. Nts., 3/15/18			130,000		130,577
					22,229,935
Real Estate Management & Development—0.3%
Mattamy Group Corp.:
6.50% Sr. Unsec. Nts., 11/15/20¹			1,010,000		1,030,200
6.875% Sr. Unsec. Nts., 12/15/23¹			505,000		513,837
O1 Properties Finance plc, 8.25% Sr. Unsec. Nts., 9/27/21¹			200,000		194,636
Realogy Group LLC/Realogy Co.-Issuer Corp.:
4.875% Sr. Unsec. Nts., 6/1/23¹			1,240,000		1,202,800
5.25% Sr. Unsec. Nts., 12/1/21¹			985,000		1,014,550
Shea Homes LP/Shea Homes Funding
Corp., 6.125% Sr. Unsec. Nts., 4/1/25¹			1,065,000		1,035,713
					4,991,736

20 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Thrifts & Mortgage Finance—0.3%
Jefferies Finance LLC/JFIN Co.-Issuer Corp., 7.375% Sr. Unsec. Nts., 4/1/20¹	$	1,015,000	$	1,020,075
Quicken Loans, Inc., 5.75% Sr. Unsec. Nts., 5/1/25¹		2,135,000		2,086,962
Radian Group, Inc., 5.25% Sr. Unsec. Nts., 6/15/20		1,235,000		1,293,663
				4,400,700
Health Care—3.7%
Biotechnology—0.3%
AbbVie, Inc.:
3.60% Sr. Unsec. Nts., 5/14/25		440,000		436,025
4.70% Sr. Unsec. Nts., 5/14/45		150,000		147,456
Biogen, Inc., 5.20% Sr. Unsec. Nts., 9/15/45		236,000		253,906
Celgene Corp.:
2.125% Sr. Unsec. Nts., 8/15/18		946,000		950,009
3.875% Sr. Unsec. Nts., 8/15/25		428,000		434,332
5.00% Sr. Unsec. Nts., 8/15/45		104,000		108,340
Gilead Sciences, Inc., 4.75% Sr. Unsec. Nts., 3/1/46		390,000		403,687
Shire Acquisitions Investments Ireland DAC:
1.90% Sr. Unsec. Nts., 9/23/19		964,000		951,958
3.20% Sr. Unsec. Nts., 9/23/26		744,000		695,711
				4,381,424
Health Care Equipment & Supplies—0.4%
Abbott Laboratories:
2.35% Sr. Unsec. Nts., 11/22/19		927,000		928,278
4.90% Sr. Unsec. Nts., 11/30/46		381,000		391,806
Baxter International, Inc., 2.60% Sr. Unsec. Nts., 8/15/26		458,000		423,053
Boston Scientific Corp., 3.85% Sr. Unsec. Nts., 5/15/25		743,000		744,818
DJO Finco, Inc./DJO Finance LLC/ DJO Finance Corp., 8.125% Sec. Nts., 6/15/21¹		580,000		506,050
Hill-Rom Holdings, Inc., 5.75% Sr. Unsec. Nts., 9/1/23¹		680,000		705,500
Hologic, Inc., 5.25% Sr. Unsec. Nts., 7/15/22¹		1,460,000		1,542,125
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.375% Sr. Unsec. Nts., 8/1/23¹		510,000		546,975
Stryker Corp., 3.50% Sr. Unsec. Nts., 3/15/26		318,000		321,167
				6,109,772
Health Care Providers & Services—2.1%
Acadia Healthcare Co., Inc.:
5.625% Sr. Unsec. Nts., 2/15/23		930,000		934,650
6.50% Sr. Unsec. Nts., 3/1/24		250,000		256,250
Aetna, Inc., 3.20% Sr. Unsec. Nts., 6/15/26		707,000		699,794
Cardinal Health, Inc., 3.50% Sr. Unsec. Nts., 11/15/24		430,000		434,960
Centene Corp.:
4.75% Sr. Unsec. Nts., 5/15/22		1,920,000		1,948,800
5.625% Sr. Unsec. Nts., 2/15/21		245,000		258,205
6.125% Sr. Unsec. Nts., 2/15/24		245,000		258,781
CHS/Community Health Systems, Inc., 6.875% Sr. Unsec. Nts., 2/1/22		3,585,000		2,509,500
DaVita, Inc., 5.125% Sr. Unsec. Nts., 7/15/24		1,995,000		1,993,753
Envision Healthcare Corp.:
5.125% Sr. Unsec. Nts., 7/1/22¹		590,000		590,737
5.625% Sr. Unsec. Nts., 7/15/22		945,000		977,839
Express Scripts Holding Co., 4.50% Sr. Unsec. Nts., 2/25/26		634,000		653,007


	Principal Amount		Value
Health Care Providers & Services (Continued)
FGI Operating Co. LLC/FGI Finance, Inc., 7.875% Sec. Nts., 5/1/20	$	1,008,000	$	861,840
Fresenius Medical Care US Finance II, Inc.:
4.75% Sr. Unsec. Nts., 10/15/24¹		785,000		796,775
5.875% Sr. Unsec. Nts., 1/31/22¹		775,000		852,500
HCA, Inc.:
5.375% Sr. Unsec. Nts., 2/1/25		700,000		702,625
7.50% Sr. Unsec. Nts., 2/15/22		2,695,000		3,065,563
5.875% Sr. Unsec. Nts., Series 1, 5/1/23		3,480,000		3,706,200
HealthSouth Corp., 5.75% Sr. Unsec. Nts., 11/1/24		1,550,000		1,577,125
IASIS Healthcare LLC/IASIS Capital Corp., 8.375% Sr. Unsec. Nts., 5/15/19		2,545,000		2,226,875
Kindred Healthcare, Inc., 6.375% Sr. Unsec. Nts., 4/15/22		540,000		483,975
Laboratory Corp. of America Holdings, 3.60% Sr. Unsec. Nts., 2/1/25		1,188,000		1,183,351
LifePoint Health, Inc., 5.50% Sr. Unsec. Nts., 12/1/21		1,435,000		1,493,297
McKesson Corp., 4.883% Sr. Unsec. Nts., 3/15/44		362,000		368,942
OCP SA, 4.50% Sr. Unsec. Nts., 10/22/25¹		940,000		901,285
Quest Diagnostics, Inc., 3.45% Sr. Unsec. Nts., 6/1/26		400,000		394,748
Select Medical Corp., 6.375% Sr. Unsec. Nts., 6/1/21		900,000		904,500
Tenet Healthcare Corp.:
6.75% Sr. Unsec. Nts., 6/15/23		2,370,000		2,091,525
7.50% Sec. Nts., 1/1/22¹		505,000		527,725
8.125% Sr. Unsec. Nts., 4/1/22		1,445,000		1,370,583
Universal Hospital Services, Inc., 7.625% Sec. Nts., 8/15/20		725,000		721,375
				35,747,085
Life Sciences Tools & Services—0.1%
Quintiles IMS, Inc., 4.875% Sr. Unsec. Nts., 5/15/23¹		1,197,000		1,220,940
Thermo Fisher Scientific, Inc.:
2.15% Sr. Unsec. Nts., 12/14/18		247,000		248,200
3.00% Sr. Unsec. Nts., 4/15/23		599,000		588,930
4.15% Sr. Unsec. Nts., 2/1/24		136,000		141,677
5.30% Sr. Unsec. Nts., 2/1/44		281,000		314,986
				2,514,733
Pharmaceuticals—0.8%
Actavis Funding SCS:
2.35% Sr. Unsec. Nts., 3/12/18		798,000		802,744
3.80% Sr. Unsec. Nts., 3/15/25		583,000		583,962
4.75% Sr. Unsec. Nts., 3/15/45		252,000		247,875
Concordia International Corp., 7% Sr. Unsec. Nts., 4/15/23¹		585,000		187,200
Endo Finance LLC/Endo Finco, Inc., 5.375% Sr. Unsec. Nts., 1/15/23¹		1,555,000		1,329,525
Endo Ltd./Endo Finance LLC/Endo Finco, Inc.:
6.00% Sr. Unsec. Nts., 7/15/23¹		1,205,000		1,063,413
6.50% Sr. Unsec. Nts., 2/1/25¹		210,000		175,875
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC:
4.875% Sr. Unsec. Nts., 4/15/20¹		220,000		221,925
5.50% Sr. Unsec. Nts., 4/15/25¹		1,160,000		1,044,000
5.75% Sr. Unsec. Nts., 8/1/22¹		930,000		899,775
Perrigo Finance Unlimited Co., 4.375% Sr. Unsec. Nts., 3/15/26		239,000		239,365
Prestige Brands, Inc., 6.375% Sr. Unsec. Nts., 3/1/24¹		370,000		390,350

21 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Pharmaceuticals (Continued)
Teva Pharmaceutical Finance Netherlands III BV, 1.70% Sr. Unsec. Nts., 7/19/19	$	880,000	$	864,778
Valeant Pharmaceuticals International, Inc.:
5.375% Sr. Unsec. Nts., 3/15/20¹		700,000		595,000
5.50% Sr. Unsec. Nts., 3/1/23¹		2,330,000		1,759,150
5.875% Sr. Unsec. Nts., 5/15/23¹		555,000		421,800
6.75% Sr. Unsec. Nts., 8/15/21¹		485,000		404,975
7.25% Sr. Unsec. Nts., 7/15/22¹		1,150,000		945,875
7.50% Sr. Unsec. Nts., 7/15/21¹		785,000		668,231
				12,845,818
Industrials—4.9%
Aerospace & Defense—0.6%
BAE Systems Holdings, Inc., 3.85% Sr. Unsec. Nts., 12/15/25¹		674,000		687,737
Bombardier, Inc., 8.75% Sr. Unsec. Nts., 12/1/21¹		2,525,000		2,685,969
CBC Ammo LLC/CBC FinCo, Inc., 7.25% Sr. Unsec. Nts., 11/15/21¹		515,000		508,563
L-3 Communications Corp., 3.85% Sr. Unsec. Nts., 12/15/26		239,000		237,700
LMI Aerospace, Inc., 7.375% Sec. Nts., 7/15/19		1,555,000		1,558,888
Lockheed Martin Corp., 3.55% Sr. Unsec. Nts., 1/15/26		428,000		437,514
Northrop Grumman Corp., 4.75% Sr. Unsec. Nts., 6/1/43		505,000		551,271
Textron, Inc., 4.30% Sr. Unsec. Nts., 3/1/24		293,000		304,041
TransDigm, Inc., 6.375% Sr. Sub. Nts., 6/15/26¹		1,245,000		1,284,840
Triumph Group, Inc., 5.25% Sr. Unsec. Nts., 6/1/22		1,975,000		1,851,563
United Technologies Corp., 1.778% Jr. Sub. Nts., 5/4/18²		170,000		170,068
				10,278,154
Air Freight & Couriers—0.2%
CEVA Group plc, 7% Sr. Sec. Nts., 3/1/21¹		1,475,000		1,194,750
SPL Logistics Escrow LLC/SPL Logistics Finance Corp., 8.875% Sr. Sec. Nts., 8/1/20¹		2,560,000		2,233,600
XPO Logistics, Inc., 6.125% Sr. Unsec. Nts., 9/1/23¹		370,000		388,037
				3,816,387
Airlines—0.1%
American Airlines Group, Inc.:
4.625% Sr. Unsec. Nts., 3/1/20¹		830,000		843,487
5.50% Sr. Unsec. Nts., 10/1/19¹		930,000		964,875
				1,808,362
Building Products—0.2%
Masco Corp., 4.45% Sr. Unsec. Nts., 4/1/25		1,045,000		1,065,900
Owens Corning, 3.40% Sr. Unsec. Nts., 8/15/26		656,000		623,495
Standard Industries, Inc., 5.375% Sr. Unsec. Nts., 11/15/24¹		1,365,000		1,409,362
USG Corp., 5.50% Sr. Unsec. Nts., 3/1/25¹		500,000		515,625
				3,614,382
Commercial Services & Supplies—0.9%
ACCO Brands Corp.:
5.25% Sr. Unsec. Nts., 12/15/24¹		490,000		494,596
6.75% Sr. Unsec. Nts., 4/30/20		495,000		520,987
ADT Corp. (The), 5.25% Sr. Sec. Nts., 3/15/20		2,210,000		2,353,650


	Principal Amount		Value
Commercial Services & Supplies (Continued)
Advanced Disposal Services, Inc., 5.625% Sr. Unsec. Nts., 11/15/24¹	$	125,000	$	124,688
APX Group, Inc., 8.75% Sr. Unsec. Nts., 12/1/20		1,180,000		1,194,750
ARD Finance SA, 7.125% Sr. Sec. Nts., 9/15/23^1,12		765,000		758,306
Cenveo Corp., 6% Sr. Sec. Nts., 8/1/19¹		400,000		359,000
Clean Harbors, Inc., 5.125% Sr. Unsec. Nts., 6/1/21		1,230,000		1,260,996
Covanta Holding Corp., 5.875% Sr. Unsec. Nts., 3/1/24		1,565,000		1,510,225
Monitronics International, Inc., 9.125% Sr. Unsec. Nts., 4/1/20		1,400,000		1,326,500
Pitney Bowes, Inc., 4.625% Sr. Unsec. Nts., 3/15/24		727,000		716,396
Republic Services, Inc.:
2.90% Sr. Unsec. Nts., 7/1/26		472,000		452,733
3.80% Sr. Unsec. Nts., 5/15/18		786,000		808,006
RR Donnelley & Sons Co., 7.875% Sr. Unsec. Nts., 3/15/21		1,200,000		1,242,000
Waste Management, Inc., 4.10% Sr. Unsec. Nts., 3/1/45		217,000		215,207
West Corp., 5.375% Sr. Unsec. Nts., 7/15/22¹		1,375,000		1,333,750
				14,671,790
Construction & Engineering—0.2%
Fideicomiso PA Pacifico Tres, 8.25% Sr. Sec. Nts., 1/15/35¹		385,000		409,062
Globe Luxembourg SCA, 9.625% Sr. Sec. Nts., 5/1/18¹		1,395,000		1,384,538
IHS Netherlands Holdco BV, 9.50% Sr. Unsec. Nts., 10/27/21¹		505,000		518,192
Sinopec Group Overseas Development 2016 Ltd., 2% Sr. Unsec. Nts., 9/29/21¹		1,200,000		1,145,910
				3,457,702
Electrical Equipment—0.3%
EnerSys, 5% Sr. Unsec. Nts., 4/30/23¹		2,090,000		2,108,287
Sensata Technologies BV: 4.875% Sr. Unsec. Nts., 10/15/23¹		934,000		958,518
5.625% Sr. Unsec. Nts., 11/1/24¹		1,190,000		1,245,038
				4,311,843
Industrial Conglomerates—0.1%
Citgo Holding, Inc., 10.75% Sr. Sec. Nts., 2/15/20¹		570,000		614,175
Icahn Enterprises LP/Icahn Enterprises Finance Corp., 5.875% Sr. Unsec. Nts., 2/1/22		1,370,000		1,366,575
Roper Technologies, Inc.:
3.80% Sr. Unsec. Nts., 12/15/26		185,000		186,527
3.85% Sr. Unsec. Nts., 12/15/25		305,000		308,899
				2,476,176
Machinery—0.8%
Allison Transmission, Inc., 5% Sr. Unsec. Nts., 10/1/24¹		500,000		506,250
Amsted Industries, Inc., 5% Sr. Unsec. Nts., 3/15/22¹		1,785,000		1,793,925
EnPro Industries, Inc., 5.875% Sr. Unsec. Nts., 9/15/22		1,020,000		1,053,150
Fortive Corp., 1.80% Sr. Unsec. Nts., 6/15/19¹		985,000		979,200
Ingersoll-Rand Global Holding Co. Ltd., 4.25% Sr. Unsec. Nts., 6/15/23		764,000		808,343
Meritor, Inc., 6.25% Sr. Unsec. Nts., 2/15/24		1,640,000		1,615,400
Navistar International Corp., 8.25% Sr. Unsec. Nts., 11/1/21		1,285,000		1,304,275

22 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Machinery (Continued)
Stanley Black & Decker, Inc., 2.451% Sub. Nts., 11/17/18	$	946,000	$	954,350
Terex Corp.:
6.00% Sr. Unsec. Nts., 5/15/21		1,500,000		1,539,375
6.50% Sr. Unsec. Nts., 4/1/20		730,000		748,250
Wabtec Corp., 3.45% Sr. Unsec. Nts., 11/15/26¹		384,000		369,330
Xerium Technologies, Inc., 9.50% Sr. Sec. Nts., 8/15/21¹		1,025,000		1,025,000
				12,696,848
Professional Services—0.4%
Equifax, Inc., 6.30% Sr. Unsec. Nts., 7/1/17		796,000		814,085
FTI Consulting, Inc., 6% Sr. Unsec. Nts., 11/15/22		2,740,000		2,859,875
Nielsen Finance LLC/Nielsen Finance Co., 5% Sr. Unsec. Nts., 4/15/22¹		2,415,000		2,466,319
				6,140,279
Road & Rail—0.3%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 5.25% Sr. Unsec. Nts., 3/15/25¹		2,100,000		1,966,125
Canadian Pacific Railway Co., 4.80% Sr. Unsec. Nts., 9/15/35		111,000		120,000
CSX Corp., 3.80% Sr. Unsec. Nts., 11/1/46		231,000		214,621
ERAC USA Finance LLC, 6.375% Sr. Unsec. Nts., 10/15/17¹		794,000		822,813
GFL Environmental, Inc., 9.875% Sr. Unsec. Nts., 2/1/21¹		490,000		541,450
Hertz Corp. (The), 5.50% Sr. Unsec. Nts., 10/15/24¹		625,000		549,219
Norfolk Southern Corp., 4.65% Sr. Unsec. Nts., 1/15/46		197,000		209,889
Penske Truck Leasing Co. LP/PTL Finance Corp.:
3.40% Sr. Unsec. Nts., 11/15/26¹		772,000		739,039
3.75% Sr. Unsec. Nts., 5/11/17¹		354,000		356,775
				5,519,931
Trading Companies & Distributors—0.7%
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 3.95% Sr. Unsec. Nts., 2/1/22		976,000		986,980
Air Lease Corp., 3% Sr. Unsec. Nts., 9/15/23		403,000		385,154
Aircastle Ltd., 5% Sr. Unsec. Nts., 4/1/23		245,000		250,512
American Builders & Contractors Supply Co., Inc., 5.75% Sr. Unsec. Nts., 12/15/23¹		340,000		351,050
Eldorado International Finance GmbH, 8.625% Sr. Unsec. Nts., 6/16/21¹		260,000		224,900
Fly Leasing Ltd.:
6.375% Sr. Unsec. Nts., 10/15/21		1,290,000		1,348,050
6.75% Sr. Unsec. Nts., 12/15/20		875,000		917,656
HD Supply, Inc.:
5.25% Sr. Sec. Nts., 12/15/21¹		1,190,000		1,259,913
5.75% Sr. Unsec. Nts., 4/15/24¹		490,000		518,518
Herc Rentals, Inc.:
7.50% Sec. Nts., 6/1/22¹		745,000		788,769
7.75% Sec. Nts., 6/1/24¹		500,000		528,125
Standard Industries, Inc., 6% Sr. Unsec. Nts., 10/15/25¹		1,265,000		1,337,737
United Rentals North America, Inc.:
4.625% Sr. Sec. Nts., 7/15/23		1,245,000		1,274,569
5.875% Sr. Unsec. Nts., 9/15/26		1,235,000		1,276,681
				11,448,614


	Principal Amount		Value
Transportation Infrastructure—0.1%
Aeropuerto Internacional de Tocumen SA, 5.625% Sr. Sec. Nts., 5/18/36¹⁰	$	1,075,000	$	1,119,344
DP World Ltd., 6.85% Sr. Unsec. Nts., 7/2/37¹		835,000		894,265
				2,013,609
Information Technology—2.4%
Communications Equipment—0.4%
Avaya, Inc., 7% Sr. Sec. Nts., 4/1/19¹		1,610,000		1,416,800
CommScope Technologies Finance LLC, 6% Sr. Unsec. Nts., 6/15/25¹		975,000		1,038,375
Infor US, Inc., 6.50% Sr. Unsec. Nts., 5/15/22		1,760,000		1,839,200
Plantronics, Inc., 5.50% Sr. Unsec. Nts., 5/31/23¹		730,000		739,125
Riverbed Technology, Inc., 8.875% Sr. Unsec. Nts., 3/1/23¹		535,000		569,775
ViaSat, Inc., 6.875% Sr. Unsec. Nts., 6/15/20		476,000		490,578
				6,093,853
Electronic Equipment, Instruments, & Components—0.3%
Belden, Inc., 5.50% Sr. Sub. Nts., 9/1/22¹		2,065,000		2,137,275
CDW LLC/CDW Finance Corp., 5% Sr. Unsec. Nts., 9/1/23		700,000		702,625
Flex Ltd., 4.75% Sr. Unsec. Nts., 6/15/25		752,000		795,996
Zebra Technologies Corp., 7.25% Sr. Unsec. Nts., 10/15/22		1,390,000		1,518,575
				5,154,471
Internet Software & Services—0.1%
Inception Merger Sub, Inc./Rackspace Hosting, Inc., 8.625% Sr. Unsec. Nts., 11/15/24¹		1,395,000		1,480,025
IT Services—0.6%
Broadridge Financial Solutions, Inc., 3.40% Sr. Unsec. Nts., 6/27/26		474,000		457,665
Fidelity National Information Services, Inc., 2.85% Sr. Unsec. Nts., 10/15/18		626,000		637,043
First Data Corp.:
5.00% Sr. Sec. Nts., 1/15/24¹		1,350,000		1,362,245
5.75% Sec. Nts., 1/15/24¹		910,000		942,423
7.00% Sr. Unsec. Nts., 12/1/23¹		3,055,000		3,261,213
Harland Clarke Holdings Corp., 6.875% Sr. Sec. Nts., 3/1/20¹		1,880,000		1,823,600
Sabre GLBL, Inc., 5.25% Sr. Sec. Nts., 11/15/23¹		1,585,000		1,635,514
Total System Services, Inc., 2.375% Sr. Unsec. Nts., 6/1/18		506,000		508,192
Xerox Corp.:
2.95% Sr. Unsec. Nts., 3/15/17		222,000		222,677
6.75% Sr. Unsec. Nts., 2/1/17		111,000		111,402
				10,961,974
Semiconductors & Semiconductor Equipment—0.2%
Intel Corp., 4.90% Sr. Unsec. Nts., 7/29/45		156,000		174,587
Micron Technology, Inc., 5.25% Sr. Unsec. Nts., 8/1/23¹		575,000		580,031
NXP BV/NXP Funding LLC, 4.625% Sr. Unsec. Nts., 6/1/23¹		2,540,000		2,673,350
Versum Materials, Inc., 5.50% Sr. Unsec. Nts., 9/30/24¹		250,000		256,250
				3,684,218
Software—0.6%
Activision Blizzard, Inc., 2.30% Sr. Unsec. Nts., 9/15/21¹		911,000		889,139
Autodesk, Inc.:
1.95% Sr. Unsec. Nts., 12/15/17		659,000		660,244
4.375% Sr. Unsec. Nts., 6/15/25		185,000		190,130

23 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


		Principal Amount		Value
Software (Continued)
BMC Software Finance, Inc., 8.125% Sr. Unsec. Nts., 7/15/21¹		$	1,225,000	$	1,150,734
Diamond 1 Finance Corp./Diamond 2 Finance Corp.:
3.48% Sr. Sec. Nts., 6/1/19¹			971,000		991,522
5.875% Sr. Unsec. Nts., 6/15/21¹			710,000		755,426
6.02% Sr. Sec. Nts., 6/15/26¹			577,000		625,361
7.125% Sr. Unsec. Nts., 6/15/24¹			745,000		827,208
Infor Software Parent LLC/Infor Software Parent, Inc., 7.125% Sr. Unsec. Nts., 5/1/21^1,12			1,505,000		1,550,150
Informatica LLC, 7.125% Sr. Unsec. Nts., 7/15/23¹			595,000		569,712
Open Text Corp., 5.625% Sr. Unsec. Nts., 1/15/23¹			401,000		420,047
Oracle Corp., 2.40% Sr. Unsec. Nts., 9/15/23			575,000		556,917
Veritas US, Inc./Veritas Bermuda Ltd., 7.50% Sr. Sec. Nts., 2/1/23¹			755,000		707,813
					9,894,403
Technology Hardware, Storage & Peripherals—0.2%
Apple, Inc., 4.375% Sr. Unsec. Nts., 5/13/45			452,000		464,545
Hewlett Packard Enterprise Co.:
2.45% Sr. Unsec. Nts., 10/5/17			693,000		696,946
6.35% Sr. Unsec. Nts., 10/15/45			406,000		410,780
NCR Corp., 6.375% Sr. Unsec. Nts., 12/15/23			520,000		560,300
Western Digital Corp., 10.50% Sr. Unsec. Nts., 4/1/24¹			875,000		1,036,875
					3,169,446
Materials—4.5%
Chemicals—1.3%
Agrium, Inc.:
3.375% Sr. Unsec. Nts., 3/15/25			258,000		250,029
4.125% Sr. Unsec. Nts., 3/15/35			129,000		118,464
Blue Cube Spinco, Inc., 9.75% Sr. Unsec. Nts., 10/15/23			645,000		770,775
CF Industries, Inc., 4.50% Sr. Sec. Nts., 12/1/26¹			434,000		426,803
Chemours Co. (The), 6.625% Sr. Unsec. Nts., 5/15/23			780,000		776,100
Eastman Chemical Co., 4.65% Sr. Unsec. Nts., 10/15/44			187,000		185,818
Ecolab, Inc.:
2.00% Sr. Unsec. Nts., 1/14/19			803,000		803,839
3.70% Sr. Unsec. Nts., 11/1/46			154,000		140,333
Hexion, Inc.:
6.625% Sr. Sec. Nts., 4/15/20			2,540,000		2,260,600
8.875% Sec. Nts., 2/1/18			1,155,000		1,155,000
Huntsman International LLC, 5.125% Sr. Unsec. Nts., 11/15/22			1,010,000		1,035,250
Kallpa Generacion SA, 4.875% Sr. Unsec. Nts., 5/24/26¹			370,000		374,625
LyondellBasell Industries NV, 5% Sr. Unsec. Nts., 4/15/19			895,000		945,336
NOVA Chemicals Corp.:
5.00% Sr. Unsec. Nts., 5/1/25¹			250,000		245,547
5.25% Sr. Unsec. Nts., 8/1/23¹			495,000		501,806
ONGC Videsh Ltd.:
2.75% Sr. Unsec. Nts., 7/15/21	EUR		1,035,000		1,157,760
4.625% Sr. Unsec. Nts., 7/15/24			1,365,000		1,404,210
Platform Specialty Products Corp., 6.50% Sr. Unsec. Nts., 2/1/22¹			1,435,000		1,452,938
PolyOne Corp., 5.25% Sr. Unsec. Nts., 3/15/23			923,000		941,460
PQ Corp., 6.75% Sr. Sec. Nts., 11/15/22¹			1,960,000		2,102,100


	Principal Amount		Value
Chemicals (Continued)
RPM International, Inc., 3.45% Sr. Unsec. Unsub. Nts., 11/15/22	$	692,000	$	686,310
Techniplas LLC, 10% Sr. Sec. Nts., 5/1/20¹		1,395,000		1,217,138
Tronox Finance LLC:
6.375% Sr. Unsec. Nts., 8/15/20		1,965,000		1,847,100
7.50% Sr. Unsec. Nts., 3/15/22¹		670,000		628,125
UPL Corp. Ltd., 3.25% Sr. Unsec. Nts., 10/13/21¹		500,000		486,912
Valspar Corp. (The), 3.95% Sr. Unsec. Nts., 1/15/26		418,000		418,088
Yara International ASA, 3.80% Sr. Unsec. Nts., 6/6/26¹		585,000		573,759
				22,906,225
Construction Materials—0.3%
Cemex SAB de CV, 5.70% Sr. Sec. Nts., 1/11/25¹		745,000		752,450
CRH America, Inc., 5.125% Sr. Unsec. Nts., 5/18/45¹		678,000		707,380
Globo Comunicacao e Participacoes SA, 4.843% Sr. Unsec. Nts., 6/8/25^1,2		1,750,000		1,684,375
James Hardie International Finance Ltd., 5.875% Sr. Unsec. Nts., 2/15/23¹		431,000		448,240
LafargeHolcim Finance US LLC, 3.50% Sr. Unsec. Nts., 9/22/26¹		231,000		224,641
St Marys Cement, Inc., 5.75% Sr. Unsec. Nts., 1/28/27¹		450,000		433,687
US Concrete, Inc., 6.375% Sr. Unsec. Nts., 6/1/24		745,000		789,700
				5,040,473
Containers & Packaging—0.9%
Ball Corp.:
5.00% Sr. Unsec. Nts., 3/15/22		1,225,000		1,287,781
5.25% Sr. Unsec. Nts., 7/1/25		40,000		41,950
Berry Plastics Corp., 5.125% Sec. Nts., 7/15/23		2,200,000		2,249,500
Coveris Holdings SA, 7.875% Sr. Unsec. Nts., 11/1/19¹		1,880,000		1,875,300
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50% Sr. Unsec. Nts., 1/15/23		1,000,000		1,025,000
Graphic Packaging International, Inc., 4.125% Sr. Unsec. Nts., 8/15/24		765,000		732,487
International Paper Co.:
3.00% Sr. Unsec. Nts., 2/15/27		448,000		422,905
4.80% Sr. Unsec. Nts., 6/15/44		378,000		376,165
Klabin Finance SA, 5.25% Sr. Unsec. Nts., 7/16/24¹		1,295,000		1,233,487
Owens-Brockway Glass Container, Inc., 5% Sr. Unsec. Nts., 1/15/22¹		1,245,000		1,277,681
Packaging Corp. of America, 4.50% Sr. Unsec. Nts., 11/1/23		690,000		731,148
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA:
5.125% Sr. Sec. Nts., 7/15/23¹		745,000		758,037
7.00% Sr. Unsec. Nts., 7/15/24¹		1,415,000		1,506,091
Sealed Air Corp.:
4.875% Sr. Unsec. Nts., 12/1/22¹		1,150,000		1,185,938
5.125% Sr. Unsec. Nts., 12/1/24¹		645,000		665,963
				15,369,433
Metals & Mining—1.8%
ABJA Investment Co. Pte Ltd., 5.95% Sr. Unsec. Nts., 7/31/24		2,490,000		2,443,661
Alcoa Nederland Holding BV:
6.75% Sr. Unsec. Nts., 9/30/24¹		245,000		266,437
7.00% Sr. Unsec. Nts., 9/30/26¹		240,000		263,400

24 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Metals & Mining (Continued)
Aleris International, Inc., 7.875% Sr. Unsec. Nts., 11/1/20	$	1,402,000	$	1,412,515
BHP Billiton Finance USA Ltd., 1.625% Sr. Unsec. Nts., 2/24/17		965,000		965,746
Cliffs Natural Resources, Inc.:
5.90% Sr. Unsec. Nts., 3/15/20		530,000		514,100
8.00% Sec. Nts., 9/30/20¹		735,000		768,075
Constellium NV:
5.75% Sr. Unsec. Nts., 5/15/24¹		1,250,000		1,175,000
8.00% Sr. Unsec. Nts., 1/15/23¹		470,000		491,150
Evraz Group SA, 6.75% Sr. Unsec. Nts., 1/31/22¹³		380,000		397,575
First Quantum Minerals Ltd.:
7.00% Sr. Unsec. Nts., 2/15/21¹		690,000		689,724
7.25% Sr. Unsec. Nts., 5/15/22¹		2,050,000		2,029,500
Freeport-McMoRan, Inc.:
2.15% Sr. Unsec. Nts., 3/1/17		450,000		447,750
2.30% Sr. Unsec. Nts., 11/14/17		3,040,000		3,032,400
5.40% Sr. Unsec. Nts., 11/14/34		915,000		773,175
6.125% Sr. Unsec. Nts., 6/15/19¹		500,000		513,750
Glencore Finance Canada Ltd., 3.60% Sr. Unsec. Nts., 1/15/17¹		962,000		962,444
Goldcorp, Inc., 5.45% Sr. Unsec. Nts., 6/9/44		261,000		256,464
HudBay Minerals, Inc.:
7.25% Sr. Unsec. Nts., 1/15/23¹		380,000		394,250
7.625% Sr. Unsec. Nts., 1/15/25¹		505,000		526,149
Metalloinvest Finance DAC, 5.625% Unsec. Nts., 4/17/20¹		335,000		352,667
Novelis Corp.:
5.875% Sr. Unsec. Nts., 9/30/26¹		1,250,000		1,265,625
6.25% Sr. Unsec. Nts., 8/15/24¹		500,000		531,250
Polyus Gold International Ltd., 4.699% Sr. Unsec. Nts., 3/28/22¹		445,000		439,438
Rio Tinto Finance USA Ltd., 3.75% Sr. Unsec. Nts., 6/15/25		390,000		401,815
Southern Copper Corp., 5.875% Sr. Unsec. Nts., 4/23/45		1,315,000		1,294,941
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.:
7.375% Sr. Unsec. Nts., 2/1/20¹		475,000		475,000
7.375% Sr. Unsec. Nts., 2/1/20		280,000		280,000
7.375% Sr. Unsec. Nts., 2/1/20¹		505,000		505,000
Teck Resources Ltd.:
5.20% Sr. Unsec. Nts., 3/1/42		1,225,000		1,084,125
6.125% Sr. Unsec. Nts., 10/1/35		550,000		537,625
8.00% Sr. Unsec. Nts., 6/1/21¹		250,000		275,625
8.50% Sr. Unsec. Nts., 6/1/24¹		250,000		288,750
United States Steel Corp., 8.375% Sr. Sec. Nts., 7/1/21¹		495,000		548,475
Vale Overseas Ltd., 6.25% Sr. Unsec. Nts., 8/10/26		1,805,000		1,881,713
Wise Metals Group LLC/Wise Alloys Finance Corp., 8.75% Sr. Sec. Nts., 12/15/18¹		560,000		585,200
Zekelman Industries, Inc., 9.875% Sr. Sec. Nts., 6/15/23¹		805,000		903,613
				29,974,127
Paper & Forest Products—0.2%
Georgia-Pacific LLC, 2.539% Sr. Unsec. Nts., 11/15/19¹		212,000		213,899
Louisiana-Pacific Corp., 4.875% Sr. Unsec. Nts., 9/15/24		968,000		941,380
Mercer International, Inc., 7.75% Sr. Unsec. Nts., 12/1/22		500,000		527,500
Suzano Austria GmbH, 5.75% Sr. Unsec. Nts., 7/14/26¹		1,030,000		995,238


	Principal Amount		Value
Paper & Forest Products (Continued)
Tembec Industries, Inc., 9% Sr. Sec. Nts., 12/15/19¹	$	750,000	$	705,000
				3,383,017
Telecommunication Services—2.3%
Diversified Telecommunication Services—1.8%
AT&T, Inc.:
2.80% Sr. Unsec. Nts., 2/17/21		994,000		986,242
4.35% Sr. Unsec. Nts., 6/15/45		763,000		681,181
British Telecommunications plc, 9.375% Sr. Unsec. Nts., 12/15/30		719,000		1,097,638
CenturyLink, Inc.:
6.45% Sr. Unsec. Nts., Series S, 6/15/21		1,940,000		2,051,550
7.50% Sr. Unsec. Nts., Series Y, 4/1/24		1,235,000		1,299,837
Deutsche Telekom International Finance BV, 2.25% Sr. Unsec. Nts., 3/6/17¹		958,000		959,401
FairPoint Communications, Inc., 8.75% Sr. Sec. Nts., 8/15/19¹		3,600,000		3,762,000
Frontier Communications Corp.:
7.125% Sr. Unsec. Nts., 1/15/23		2,190,000		1,992,900
10.50% Sr. Unsec. Nts., 9/15/22		1,595,000		1,682,805
11.00% Sr. Unsec. Nts., 9/15/25		1,650,000		1,709,813
Level 3 Financing, Inc.:
5.25% Sr. Unsec. Nts., 3/15/26¹		1,195,000		1,186,037
5.625% Sr. Unsec. Nts., 2/1/23		1,930,000		1,983,075
Telecom Italia Capital SA, 7.721% Sr. Unsec. Unsub. Nts., 6/4/38		2,141,000		2,221,287
Telefonica Emisiones SAU:
3.192% Sr. Unsec. Nts., 4/27/18		577,000		585,403
7.045% Sr. Unsec. Unsub. Nts., 6/20/36		228,000		265,014
T-Mobile USA, Inc., 6% Sr. Unsec. Nts., 4/15/24		985,000		1,040,406
Verizon Communications, Inc.:
1.75% Sr. Unsec. Nts., 8/15/21		665,000		638,036
4.125% Sr. Unsec. Nts., 8/15/46		394,000		357,312
4.50% Sr. Unsec. Nts., 9/15/20		1,071,000		1,146,232
4.522% Sr. Unsec. Nts., 9/15/48		494,000		474,684
Windstream Services LLC:
6.375% Sr. Unsec. Nts., 8/1/23		1,155,000		1,036,613
7.75% Sr. Unsec. Nts., 10/1/21		1,285,000		1,327,405
Zayo Group LLC/Zayo Capital, Inc., 6% Sr. Unsec. Nts., 4/1/23		1,345,000		1,405,525
				29,890,396
Wireless Telecommunication Services—0.5%
Digicel Ltd., 6.75% Sr. Unsec. Nts., 3/1/23¹		1,440,000		1,305,547
Sprint Communications, Inc.:
6.00% Sr. Unsec. Nts., 11/15/22		1,975,000		1,994,750
7.00% Sr. Unsec. Nts., 3/1/20¹		1,315,000		1,430,062
Sprint Corp.:
7.125% Sr. Unsec. Nts., 6/15/24		2,505,000		2,586,413
7.875% Sr. Unsec. Nts., 9/15/23		1,915,000		2,049,050
				9,365,822
Utilities—2.1%
Electric Utilities—0.6%
AEP Texas Central Co., 3.85% Sr. Unsec. Nts., 10/1/25¹		291,000		298,916
Cleco Corporate Holdings LLC, 3.743% Sr. Sec. Nts., 5/1/26¹		482,000		474,944
Duke Energy Corp., 3.75% Sr. Unsec. Nts., 9/1/46		451,000		406,868
Edison International, 2.95% Sr. Unsec. Nts., 3/15/23		539,000		533,412
Emera US Finance LP, 2.15% Sr. Unsec. Nts., 6/15/19¹		434,000		433,356
Enel Americas SA, 4% Sr. Unsec. Nts., 10/25/26		400,000		382,504

25 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


	Principal Amount		Value
Electric Utilities (Continued)
Enel Finance International NV, 6.25% Sr. Unsec. Nts., 9/15/17¹	$	728,000	$	750,424
Entergy Texas, Inc., 7.125% Sec. Nts., 2/1/19		263,000		289,470
Exelon Corp., 4.45% Sr. Unsec. Nts., 4/15/46		243,000		238,363
Indiana Michigan Power Co., Series K, 4.55% Sr. Unsec. Nts., 3/15/46		202,000		209,936
ITC Holdings Corp., 5.30% Sr. Unsec. Nts., 7/1/43		241,000		264,109
NextEra Energy Capital Holdings, Inc., 1.586% Sr. Unsec. Nts., 6/1/17		793,000		793,533
PPL WEM Ltd./Western Power Distribution Ltd., 5.375% Sr. Unsec. Unsub. Nts., 5/1/21¹		1,280,000		1,381,325
Public Service Co. of New Mexico, 7.95% Sr. Unsec. Nts., 5/15/18		523,000		564,709
Southern Power Co., 1.95% Sr. Unsec. Nts., 12/15/19		829,000		821,250
TECO Finance, Inc., 6.572% Sr. Unsec. Nts., 11/1/17		650,000		674,850
Trans-Allegheny Interstate Line Co., 3.85% Sr. Unsec. Nts., 6/1/25¹		568,000		575,671
Xcel Energy, Inc., 3.30% Sr. Unsec. Nts., 6/1/25		431,000		431,337
				9,524,977
Gas Utilities—0.1%
Ferrellgas LP/Ferrellgas Finance Corp.:
6.50% Sr. Unsec. Nts., 5/1/21		660,000		656,700
6.75% Sr. Unsec. Nts., 6/15/23		930,000		918,375
				1,575,075
Independent Power and Renewable Electricity Producers—1.2%
AES Andres BV/Dominican Power Partners/Empresa Generadora de Electricidad It, 7.95% Sr. Unsec. Nts., 5/11/26¹		790,000		818,021
AES Corp., 6% Sr. Unsec. Nts., 5/15/26		2,120,000		2,162,400
Calpine Corp.:
5.25% Sr. Sec. Nts., 6/1/26¹		740,000		732,600
5.375% Sr. Unsec. Nts., 1/15/23		460,000		451,950
5.75% Sr. Unsec. Nts., 1/15/25		560,000		543,200
Dynegy, Inc.:
5.875% Sr. Unsec. Nts., 6/1/23		420,000		366,450
6.75% Sr. Unsec. Nts., 11/1/19		1,150,000		1,175,875
7.375% Sr. Unsec. Nts., 11/1/22		1,580,000		1,516,800
8.00% Sr. Unsec. Nts., 1/15/25¹		760,000		712,500
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 12.25% Sec. Nts., 3/1/22^1,8		1,487,674		2,030,675
GenOn Energy, Inc., 9.50% Sr. Unsec. Nts., 10/15/18		935,000		665,603
Listrindo Capital BV, 4.95% Sr. Unsec. Nts., 9/14/26¹		2,015,000		1,965,776
Miran Mid-Atlantic Trust, 10.06% Sec. Pass-Through Certificates, Series C, 12/30/28		662,520		570,374
NRG Energy, Inc.:
6.625% Sr. Unsec. Nts., 3/15/23		785,000		790,888
7.25% Sr. Unsec. Nts., 5/15/26¹		2,485,000		2,485,000
Talen Energy Supply LLC:
4.625% Sr. Unsec. Nts., 7/15/19¹		585,000		557,213
6.50% Sr. Unsec. Nts., 6/1/25		1,930,000		1,500,575
Trinidad Generation UnLtd, 5.25% Sr. Unsec. Nts., 11/4/27¹		505,000		492,925
				19,538,825


		Principal Amount		Value
Multi-Utilities—0.2%
CenterPoint Energy, Inc., 5.95% Sr. Unsec. Nts., 2/1/17		$	200,000	$	200,684
CMS Energy Corp.:
3.875% Sr. Unsec. Nts., 3/1/24			740,000		769,933
5.05% Sr. Unsec. Unsub. Nts., 3/15/22			83,000		90,939
InterGen NV, 7% Sr. Sec. Nts., 6/30/23¹			1,055,000		944,225
NiSource Finance Corp.:
4.80% Sr. Unsec. Nts., 2/15/44			418,000		440,914
6.80% Sr. Unsec. Nts., 1/15/19			843,000		920,302
Public Service Enterprise Group, Inc., 1.60% Sr. Unsec. Nts., 11/15/19			871,000		858,974
					4,225,971
Total Corporate Bonds and Notes (Cost $781,200,831)					782,829,207

			Shares
Common Stocks—0.2%
Arco Capital Corp. Ltd.^1,14,15			690,638		—
JP Morgan International, GDR^1,14			446,838		—
NuStar Energy LP¹⁸			13,102		652,480
Premier Holdings Ltd.¹⁴			18,514		—
Quicksilver Resources, Inc.¹⁴			4,151,000		149,021
Sabine Oil¹⁴			824		40,376
Teck Resources Ltd., Cl. B			30,971		620,349
Valeant Pharmaceuticals International, Inc.¹⁴			108,823		1,580,110
Wallace Theater Holdings, Inc.^1,14			1,525		15
Total Common Stocks (Cost $8,260,778)					3,042,351

			Units
Rights, Warrants and Certificates—0.0%
MediaNews Group, Inc. Wts., Strike Price $0.001, Exp. 3/19/17¹⁴			22,685		—
Sabine Oil Tranche 1 Wts., Strike Price $4.49, Exp. 8/11/26¹⁴			2,611		19,582
Sabine Oil Tranche 2 Wts., Strike Price $2.72,
Exp. 8/11/26¹⁴			465		3,023
Total Rights, Warrants and Certificates (Cost $6,682,364)					22,605

			Principal Amount
Structured Securities—0.5%
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds:
3.098%, 4/30/25^1,16		$	1,268,396		660,558
3.003%, 4/30/25^1,16			1,153,058		600,491
3.054%, 4/30/25^1,16			1,469,174		765,119
3.131%, 4/30/25^1,16			1,133,786		590,455
3.179%, 4/30/25^1,16			1,411,656		735,164
3.231%, 4/30/25^1,16			1,611,190		839,079
3.265%, 4/30/25^1,16			1,287,153		670,326
3.346%, 4/30/25^1,16			1,209,869		630,078
72.268%, 12/31/17^10,11	BRL		5,140,000		2,665,255
LB Peru Trust II Certificates, Series 1998- A, 3.796%, 2/28/16^8,16			2,994		—
Morgan Stanley, Russian Federation Total Return Linked Bonds, Series 007, Cl. VR, 5%, 8/22/34	RUB		32,561,994		234,207
Total Structured Securities (Cost $12,048,069)					8,390,732
Short-Term Note—7.1%
United States Treasury Bills, 0.485%, 3/16/17^6,16,17(Cost $119,879,133)			120,000,000		119,881,200

			Shares
Investment Companies—18.2%
Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^19,20			38,454,698		38,454,698
Oppenheimer Master Event-Linked Bond Fund, LLC²⁰			2,520,983		40,463,664
Oppenheimer Master Loan Fund, LLC²⁰			12,870,585		207,632,814
Oppenheimer Ultra-Short Duration Fund, Cl. Y²⁰			4,042,818		20,254,519
Total Investment Companies (Cost $301,279,863)					306,805,695

26 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Counterparty

Exercise Price

Expiration Date

Contracts

Value

Over-the-Counter Options Purchased—0.1%

AUD Currency Call¹⁴

BAC

NZD

1.085

1/23/17

AUD

19,385,902

831

BRL Currency Call¹⁴

HSBC

BRL

3.160

1/27/17

BRL

39,500,000

56,129

EUR Currency Put¹⁴

BNP

EUR

1.010

2/10/17

EUR

18,159,835

46,398

EUR Currency Put¹⁴

BAC

PLN

4.400

3/6/17

EUR

6,470,000

59,216

KRW Currency Put¹⁴

BAC

KRW

1200.000

6/15/17

KRW

40,470,490,000

1,133,174

MXN Currency Put¹⁴

CITNA-B

MXN

21.100

3/1/17

MXN

548,540,044

411,405

TWD Currency Put¹⁴

HSBC

TWD

32.750

3/23/17

TWD

409,400,000

137,149

Total Over-the-Counter Options Purchased (Cost $2,108,649)

1,844,302

Counterparty

Pay / Receive
Floating Rate

Floating Rate

Fixed Rate

Expiration
Date

Notional Amount (000’s)

Over-the-Counter Interest Rate Swaption Purchased—0.1%

Interest Rate Swap maturing 3/2/27 Call¹⁴(Cost $716,030)

BAC

Pay

Three-Month USD
BBA LIBOR

2.250%

2/28/17

USD

52,000

918,199

Total Investments, at Value (Cost $1,748,004,634)

103.2%

1,739,864,922

Net Other Assets (Liabilities)

(3.2)

(54,534,831)

Net Assets

100.0%

1,685,330,091

Consolidated Footnotes to Statement of Investments

1. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $508,053,612 or 30.15% of the Fund’s net assets at period end.

2. Represents the current interest rate for a variable or increasing rate security.

3. Interest-Only Strips represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. These securities typically decline in price as interest rates decline. Most other fixed income securities increase in price when interest rates decline. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The price of these securities is typically more sensitive to changes in prepayment rates than traditional mortgage-backed securities (for example, GNMA pass-throughs). Interest rates disclosed represent current yields based upon the current cost basis and estimated timing and amount of future cash flows. These securities amount to $3,127,544 or 0.19% of the Fund’s net assets at period end.

4. Interest rate is less than 0.0005%.

5. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 4 of the accompanying Consolidated Notes.

6. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $2,412,903. See Note 6 of the accompanying Consolidated Notes.

7. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements under certain derivative contracts. The aggregate market value of such securities is $5,297,123. See Note 6 of the accompanying Consolidated Notes.

8. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and or principal payments. The rate shown is the contractual interest rate. See Note 4 of the accompanying Consolidated Notes.

9. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

10. Restricted security. The aggregate value of restricted securities at period end was $3,812,900, which represents 0.23% of the Fund’s net assets. See Note 4 of the accompanying Consolidated Notes. Information concerning restricted securities is as follows:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation/ (Depreciation)

Aeropuerto Internacional de Tocumen SA, 5.625% Sr. Sec. Nts., 5/18/36		5/13/16 – 9/8/16	$	1,090,940	$	1,119,344	$ 28,404
Deutsche Bank AG, Coriolanus Ltd. Sec. Credit Linked Bonds, 72.268%, 12/31/17		9/19/07		2,567,888		2,665,255	97,367
JPMorgan Hipotecaria su Casita, 6.47% Sec. Nts., 8/26/35		3/21/07		528,890		28,301	(500,589)

			$	4,187,718	$	3,812,900	$ (374,818)

11. Denotes an inflation-indexed security: coupon or principal are indexed to a consumer price index.

12. Interest or dividend is paid-in-kind, when applicable.

13. All or a portion of this security is owned by the subsidiary. See Note 2 of the accompanying Consolidated Notes.

14. Non-income producing security.

15. Security received as the result of issuer reorganization.

16. Zero coupon bond reflects effective yield on the original acquisition date.

17. All or a portion of the security position has been pledged for collateral in association with forward roll transactions. See Note 4 of the accompanying Notes.

18. Security is a Master Limited Partnership.

19. Rate shown is the 7-day yield at period end.

20. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		92,728,261		863,318,194		917,591,757		38,454,698
Oppenheimer Master Event-Linked Bond Fund, LLC		3,158,849		—		637,866		2,520,983
Oppenheimer Master Loan Fund, LLC		6,443,877		6,426,708		—		12,870,585
Oppenheimer Ultra-Short Duration Fund, Cl. Y		—		8,034,834		3,992,016		4,042,818

			Value		Income		Realized Loss

Oppenheimer Institutional Government Money Market Fund, Cl. E^a			$	38,454,698	$	562,242	$	—
Oppenheimer Master Event-Linked Bond Fund, LLC				40,463,664		2,573,129^b		326,597^b

27 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued

Consolidated Footnotes to Statement of Investments (Continued)



	Value		Income		Realized Loss
Oppenheimer Master Loan Fund, LLC	$	207,632,814	$	9,941,018^c		$ 4,258,987^c
Oppenheimer Ultra-Short Duration Fund, Cl. Y		20,254,519		254,325		—

Total	$	306,805,695	$	13,330,714		$ 4,585,584

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

b. Represents the amount allocated to the Fund from Oppenheimer Master Event-Linked Bond Fund, LLC.

c. Represents the amount allocated to the Fund from Oppenheimer Master Loan Fund, LLC.


Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
Geographic Holdings (Unaudited)	Value		Percent

United States	$	1,414,439,437		81.3%
Brazil		32,571,797		1.9
Indonesia		32,024,969		1.8
Canada		27,185,751		1.6
Supranational		17,151,511		1.0
Russia		15,127,548		0.9
Netherlands		13,277,683		0.8
Mexico		13,141,875		0.8
United Kingdom		12,548,867		0.7
Peru		10,748,164		0.6
India		9,688,795		0.6
Ukraine		8,522,163		0.5
Luxembourg		7,265,144		0.4
South Africa		6,884,508		0.4
Kazakhstan		6,868,489		0.4
Colombia		6,599,235		0.4
Germany		6,590,086		0.4
Argentina		6,440,036		0.4
Ireland		6,208,468		0.4
Ivory Coast		5,673,688		0.3
China		5,577,990		0.3
France		5,185,950		0.3
Turkey		4,538,862		0.3
Hungary		4,459,998		0.3
Belgium		4,016,806		0.2
Jamaica		3,929,222		0.2
Dominican Republic		3,678,216		0.2
Sri Lanka		3,609,258		0.2
Serbia		3,247,202		0.2
Italy		2,971,711		0.2
Romania		2,606,262		0.2
Uruguay		2,536,025		0.1
Croatia		2,369,192		0.1
Switzerland		2,299,973		0.1
New Zealand		2,264,128		0.1
Jersey, Channel Islands		2,262,750		0.1
Israel		2,175,178		0.1
Australia		1,960,190		0.1
South Korea		1,759,822		0.1
Panama		1,709,945		0.1
Honduras		1,291,752		0.1
Japan		1,201,168		0.1
Kenya		1,195,667		0.1
Namibia		1,135,180		0.1
Sweden		1,084,080		0.1
Vietnam		1,052,865		0.1
Kuwait		967,115		0.1
Morocco		901,285		0.1
United Arab Emirates		894,265		0.1
Spain		850,417		0.0
Singapore		795,996		0.0
Costa Rica		758,610		0.0
Paraguay		586,500		0.0
Norway		573,759		0.0
Senegal		540,629		0.0
Denmark		528,591		0.0

28 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Geographic Holdings (Unaudited) (Continued)	Value		Percent

Nigeria	$	518,192		0.0	%
Trinidad		492,925		0.0
Thailand		456,676		0.0
Iraq		450,039		0.0
Chile		382,504		0.0
Guernsey		374,077		0.0
Ghana		370,018		0.0
Taiwan		137,149		0.0
Eurozone		105,614		0.0
Gabon		102,955		0.0

Total	$	1,739,864,922		100.0	%

Forward Currency Exchange Contracts as of December 31, 2016


Counterparty	Settlement Month(s)		Currency Purchased (000’s)		Currency Sold (000’s)		Unrealized Appreciation		Unrealized Depreciation

BAC		03/2017	EUR	1,055	USD	1,129	$	—	$	14,364
BAC		03/2017	JPY	989,000	USD	9,625		—		1,132,418
BAC		03/2017	MYR	12,195	USD	2,885		—		176,366
BAC		03/2017	RUB	560,200	USD	8,430		544,181		—
BAC		03/2017	TRY	8,400	USD	2,370		—		24,770
BAC		03/2017	USD	8,655	JPY	905,000		884,215		—
BAC		03/2017	USD	3,800	PEN	12,920		—		13,710
BNP		03/2017	USD	9,074	KRW	10,579,000		313,565		—
BNP		03/2017	USD	9,904	MXN	213,800		—		312,189
BNP		03/2017	USD	1,505	RUB	94,900		—		14,870
BOA		03/2017	EUR	6,880	USD	7,334		—		65,409
BOA		01/2017	INR	547,000	USD	7,988		53,430		—
BOA		02/2017	MYR	21,055	USD	4,760		—		76,709
BOA		03/2017	PEN	12,930	USD	3,773		43,683		—
BOA		03/2017	USD	17,663	EUR	16,005		755,094		—
BOA		02/2017	USD	8,431	IDR	113,250,000		82,410		—
BOA		03/2017	USD	7,907	KRW	9,050,000		412,718		—
BOA		02/2017	USD	2,252	PHP	113,000		—		14,035
BOA		03/2017	ZAR	115,090	USD	8,367		—		98,031
CITNA-B		03/2017	CAD	5,750	USD	4,260		26,487		—
CITNA-B		01/2017	COP	18,720,000	USD	6,142		87,129		—
CITNA-B		03/2017	EUR	870	USD	921		—		1,992
CITNA-B		03/2017	GBP	4,925	USD	6,200		—		120,111
CITNA-B		03/2017	MXN	55,900	USD	2,880		—		208,487
CITNA-B		03/2017	SGD	6,460	USD	4,527		—		67,906
CITNA-B		02/2017	USD	3,879	BRL	13,686		—		288,550
CITNA-B		01/2017	USD	3,970	COP	12,732,000		—		266,359
CITNA-B		03/2017	USD	4,427	GBP	3,560		31,953		—
CITNA-B		01/2017	USD	3,747	INR	258,000		—		45,338
CITNA-B		03/2017	USD	19,860	MXN	399,500		902,639		122,857
CITNA-B		03/2017	USD	2,488	RUB	162,000		—		107,519
CITNA-B		03/2017	USD	4,542	SGD	6,460		83,001		—
DEU		03/2017	EUR	27,410	USD	29,440		—		483,803
DEU		03/2017	USD	117	JPY	12,200		12,040		—
DEU		01/2017	USD	91	TRY	300		6,083		—
DEU		03/2017	USD	1,757	ZAR	25,945		—		107,272
GSCO-OT		03/2017	MXN	268,100	USD	12,761		69,070		19,745
GSCO-OT		03/2017	USD	2,485	BRL	8,740		—		147,355
GSCO-OT		03/2017	USD	8,067	KRW	9,455,000		236,858		—
GSCO-OT		03/2017	USD	2,632	ZAR	37,160		—		37,513
GSCO-OT		03/2017	ZAR	36,320	USD	2,586		23,359		—
HSBC		03/2017	EUR	4,720	USD	5,359		—		372,529
HSBC		03/2017	HUF	1,227,000	USD	4,448		—		263,838
HSBC		03/2017	PLN	16,790	USD	4,131		—		123,718
HSBC		03/2017	USD	1,757	ZAR	25,945		—		106,697
HSBC		03/2017	ZAR	51,890	USD	3,567		161,088		—
JPM		03/2017	BRL	53,370	USD	16,098		—		21,541
JPM		03/2017	CAD	9,760	USD	7,359		—		83,544
JPM		03/2017	CLP	1,944,000	USD	2,892		—		4,580
JPM		01/2017	COP	5,671,000	USD	1,773		113,564		—
JPM		03/2017	EUR	1,435	USD	1,551		—		34,894
JPM		03/2017	GBP	1,120	USD	1,394		—		11,063
JPM		03/2017	KRW	9,455,000	USD	8,101		—		271,285
JPM		02/2017 - 03/2017	MXN	474,800	USD	22,689		173,899		126,206

29 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Forward Currency Exchange Contracts (Continued)


Counterparty	Settlement Month(s)		Currency Purchased (000’s)		Currency Sold (000’s)			Unrealized Appreciation		Unrealized Depreciation

JPM		03/2017	PEN	12,920		USD	3,778	$	35,491	$	—
JPM		01/2017 - 03/2017	RUB	1,073,200		USD	16,840		609,936		97,775
JPM		01/2017	THB	90,200		USD	2,550		—		31,307
JPM		03/2017	USD	11,598		CAD	15,450		81,416		—
JPM		03/2017	USD	2,947		CLP	1,944,000		59,170		—
JPM		03/2017	USD	17,311		EUR	15,600		830,830		—
JPM		03/2017	USD	2,849		HUF	843,000		—		25,473
JPM		02/2017 - 03/2017	USD	5,807		IDR	78,514,500		41,454		4,987
JPM		01/2017	USD	4,201		INR	289,000		—		47,735
JPM		02/2017 - 03/2017	USD	2,574		MXN	53,400		22,959		266
JPM		03/2017	USD	2,618		MYR	11,650		30,135		—
JPM		01/2017	USD	13,110		RUB	850,700		88,441		776,393
JPM		03/2017	USD	2,501		TRY	8,790		46,837		—
JPM		03/2017	USD	14,619		ZAR	214,180		—		768,294
JPM		03/2017	ZAR	69,450		USD	5,034		—		44,846
TDB		02/2017	BRL	48,860		USD	13,773		1,104,347		—
TDB		03/2017	EUR	945		USD	1,008		—		9,551
TDB		02/2017 - 03/2017	USD	25,866		BRL	90,480		—		1,585,521
TDB		03/2017	USD	5,889		CAD	7,800		74,412		—
TDB		03/2017	USD	27,772		EUR	25,055		1,303,202		—
TDB		03/2017	USD	2,847		GBP	2,290		19,365		—
TDB		03/2017	USD	2,990		MXN	55,900		319,098		—

Total Unrealized Appreciation and Depreciation								$	9,683,559	$	8,779,721

Futures Contracts as of December 31, 2016


Description	Exchange		Buy/Sell		Expiration Date		Number of Contracts		Value		Unrealized Appreciation (Depreciation)

Euro-BUND		EUX		Sell		3/08/17		110	$	19,007,174	$	(24,654)
United States Treasury Long Bonds		CBT		Buy		3/22/17		102		15,366,937		(50,957)
United States Treasury Nts., 2 yr.		CBT		Buy		3/31/17		337		73,023,687		(23,944)
United States Treasury Nts., 5 yr.		CBT		Sell		3/31/17		19		2,235,617		4,221
United States Treasury Nts., 10 yr.		CBT		Buy		3/22/17		155		19,263,594		(79,961)
United States Treasury Nts., 10 yr.		CBT		Sell		3/22/17		56		6,959,750		(2,772)
United States Ultra Bonds		CBT		Buy		3/22/17		197		31,569,250		(255,646)

											$	(433,713)

Over-the-Counter Options Written at December 31, 2016


Description	Counterparty			Exercise Price		Expiration Date			Number of Contracts			Premiums Received		Value

BRL Currency Call		HSBC	BRL		3.050		1/27/17	BRL		(38,125,000	)	$	127,625	$	(10,484)

BRL Currency Put		HSBC	BRL		3.400		1/27/17	BRL		(42,500,000	)		170,000		(83,640)

EUR Currency Put		BAC	PLN		4.300		3/6/17	EUR		(6,470,000	)		11,320		(14,346)

EUR Currency Put		BNP	EUR		0.980		2/10/17	EUR		(18,159,835	)		44,491		(7,428)

KRW Currency Call		BAC	KRW		1130.000		6/15/17	KRW		(38,109,710,000	)		492,731		(266,768)

KRW Currency Put		BAC	KRW		1250.000		6/15/17	KRW		(42,156,760,000	)		491,042		(674,508)

MXN Currency Put		CITNA-B	MXN		21.700		3/1/17	MXN		(564,138,339	)		248,403		(220,014)

MXN Currency Call		CITNA-B	MXN		20.000		3/1/17	MXN		(519,943,169	)		177,170		(193,939)

TWD Currency Call		HSBC	TWD		31.600		3/23/17	TWD		(395,000,000	)		74,062		(71,100)

TWD Currency Put		HSBC	TWD		33.400		3/23/17	TWD		(417,500,000	)		72,813		(75,567)

ZAR Currency Put		CITNA-B	ZAR		15.000		1/5/17	ZAR		(187,500,000	)		205,811		(188)

ZAR Currency Call		CITNA-B	ZAR		13.150		1/5/17	ZAR		(164,375,000	)		142,009		(4,109)

Total Over-the-Counter Options Written												$	2,257,477	$	(1,622,091)

Centrally Cleared Credit Default Swaps at December 31, 2016


Reference Asset	Buy/Sell Protection		Fixed Rate		Maturity Date			Notional Amount (000’s)		Premiums Received/(Paid)		Value

Argentine Republic		Buy		5.000%		12/20/21	USD		1,000	$	26,470	$	(36,987)

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(67,611)		61,958

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(70,556)		61,958

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(76,856)		61,958

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(76,256)		61,958

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(76,356)		61,958

CDX.EM.26		Buy		1.000		12/20/21	USD		1,000		(75,411)		61,958

CDX.HY.27		Buy		5.000		12/20/21	USD		18,900		1,134,000		(1,176,881)

CDX.HY.27		Sell		5.000		12/20/21	USD		2,620		(161,115)		162,619

CDX.HY.27		Buy		5.000		12/20/21	USD		18,900		1,135,890		(1,176,881)

CDX.HY.27		Sell		5.000		12/20/21	USD		2,610		(165,271)		161,636

Federative Republic of Brazil		Sell		1.000		3/20/17	USD		5,000		(4,759)		5,436

30 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Centrally Cleared Credit Default Swaps (Continued)


Reference Asset	Buy/Sell Protection		Fixed Rate		Maturity Date			Notional Amount (000’s)		Premiums Received/(Paid)		Value

Malaysia		Buy		1.000%		12/20/21	USD		2,250	$	(41,734)	$	36,560

People’s Republic of China		Buy		1.000		12/20/21	USD		4,400		(39,302)		33,543

Republic of Colombia		Buy		1.000		12/20/21	USD		1,000		(32,341)		28,103

Republic of Colombia		Buy		1.000		12/20/21	USD		2,000		(61,273)		56,205

Republic of Indonesia		Buy		1.000		12/20/21	USD		1,000		(29,484)		24,886

Republic of Indonesia		Buy		1.000		12/20/21	USD		2,250		(68,644)		55,993

Republic of Indonesia		Buy		1.000		12/20/21	USD		2,000		(74,646)		49,772

Republic of Indonesia		Buy		1.000		12/20/21	USD		800		(24,407)		19,909

Republic of Indonesia		Buy		1.000		12/20/21	USD		1,300		(39,069)		32,352

Republic of Indonesia		Buy		1.000		12/20/21	USD		2,250		(69,667)		55,993

Republic of Korea		Buy		1.000		12/20/21	USD		2,250		51,583		(60,033)

Republic of Korea		Buy		1.000		12/20/21	USD		800		20,144		(21,345)

Republic of Korea		Buy		1.000		12/20/21	USD		1,300		33,060		(34,686)

Republic of Korea		Buy		1.000		12/20/21	USD		2,250		51,583		(60,033)

Republic of Turkey		Buy		1.000		12/20/21	USD		1,350		(110,390)		99,629

Republic of Turkey		Buy		1.000		12/20/21	USD		912		(71,041)		67,305

Republic of Turkey		Buy		1.000		12/20/21	USD		1,000		(79,561)		73,799

Republic of Turkey		Buy		1.000		12/20/21	USD		1,000		(87,539)		73,799

Republic of Turkey		Buy		1.000		12/20/21	USD		1,007		(81,432)		74,316

Republic of Turkey		Buy		1.000		12/20/21	USD		1,000		(79,247)		73,799

Republic of Turkey		Buy		1.000		12/20/21	USD		1,350		(108,131)		99,629

United Mexican States		Buy		1.000		12/20/21	USD		1,000		(27,280)		24,590

United Mexican States		Buy		1.000		12/20/21	USD		2,000		(83,627)		49,180

Total Cleared Credit Default Swaps										$	469,724	$	(836,045)

Over-the-Counter Credit Default Swaps at December 31, 2016


Reference Asset	Counterparty		Buy/Sell Protection		Fixed Rate			Maturity Date				Notional Amount (000’s)		Premiums Received/(Paid)		Value

CMBX.NA.BBB-.9		FIB		Sell		3.000	%		9/17/58		USD		2,325	$	358,796	$	(303,916)

CMBX.NA.BBB-.9		FIB		Sell		3.000			9/17/58		USD		2,585		396,164		(337,903)

CMBX.NA.BBB-.9		FIB		Sell		3.000			9/17/58		USD		3,615		548,772		(472,541)

CMBX.NA.BBB-.9		MSCO		Sell		3.000			9/17/58		USD		2,585		397,539		(337,903)

CMBX.NA.BBB-.9		MSCO		Sell		3.000			9/17/58		USD		3,875		590,697		(506,527)

CMBX.NA.BBB-.9		MSCO		Sell		3.000			9/17/58		USD		2,580		375,718		(337,249)

CMBX.NA.BBB-.9		MSCO		Sell		3.000			9/17/58		USD		3,880		592,189		(507,181)

Federative Republic of Brazil		BNP		Sell		1.000			12/20/18		USD		1,190		94,152		(3,439)

Hellenic Republic		BAC		Sell		1.000			3/20/20		USD		475		168,651		(106,887)

Hellenic Republic		BAC		Sell		1.000			3/20/20		USD		475		180,526		(106,887)

Malaysia		GSCOI		Buy		1.000			6/20/21		USD		1,785		(47,059)		15,744

Malaysia		MOS-A		Buy		1.000			12/20/20		USD		765		(48,374)		1,942

Republic of Indonesia		BNP		Buy		1.000			6/20/21		USD		5,100		(203,573)		84,740

Republic of Peru		BNP		Buy		1.000			12/20/20		USD		964		(27,540)		(7,710)

Republic of Turkey		CITNA-B		Buy		1.000			6/20/21		USD		1,625		(107,092)		95,317

Republic of Turkey		HSBC		Buy		1.000			6/20/21		USD		1,270		(94,540)		75,846

Russian Federation		BNP		Buy		1.000			12/20/20		USD		765		(81,669)		11,131

State Bank of India		BNP		Sell		1.000			9/20/19		USD		1,740		71,791		11,206
										��
Total Over-the-Counter Credit Default Swaps														$	3,165,148	$	(2,732,217)

The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:


Type of Reference Asset on which the Fund Sold Protection	Total Maximum Potential Payments for Selling Credit Protection (Undiscounted)		Amount Recoverable*		Reference Asset Rating Range**

Non-Investment Grade Corporate Debt
Indexes	$	26,675,000	$	38,995,738		BB+ to BB-
Investment Grade Single Name Corporate
Debt		1,740,000		—		BBB-
Non-Investment Grade Sovereign Debt		7,140,000		—		BB to B-

Total USD	$	35,555,000	$	38,995,738

31 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

Centrally Cleared Interest Rate Swaps at December 31, 2016

Counterparty

Pay/Receive
Floating Rate

Floating Rate

Fixed Rate

Maturity Date

Notional Amount (000’s)

Premiums

Received / (Paid)

Value

Three-Month USD

BAC

Receive

BBA LIBOR

2.461%

3/20/47

USD

2,825

—

80,641

Three-Month USD

BAC

Receive

BBA LIBOR

2.289

12/5/26

USD

17,800

—

47,907

Three-Month USD

BAC

Receive

BBA LIBOR

1.796

12/1/21

USD

26,400

—

184,751

Three-Month USD

BAC

Pay

BBA LIBOR

2.191

3/17/27

USD

6,837

—

(111,090)

Six-Month PLN WIBOR

BAC

Pay

WIBO

1.745

9/12/18

PLN

25,200

—

(26,079)

Six-Month PLN WIBOR

BAC

Pay

WIBO

1.745

9/15/18

PLN

25,195

—

(19,937)

CITNA-B

Pay

BZDI

11.710

1/4/21

BRL

35,000

—

76,128

Three-Month ZAR

DEU

Receive

JIBAR SAFEX

8.310

6/29/26

ZAR

56,100

—

1,863

GSCOI

Pay

MXN TIIE BANXICO

6.820

11/14/18

MXN

271,085

2,516

(79,054)

GSCOI

Receive

MXN TIIE BANXICO

7.400

11/4/26

MXN

65,835

(663)

110,190

Three-Month USD

JPM

Receive

BBA LIBOR

2.338

12/15/26

USD

6,900

—

(8,662)

Three-Month USD

UBS

Receive

BBA LIBOR

2.499

12/20/26

USD

8,584

—

(132,593)

Total Centrally Cleared Interest Rate Swaps

1,853

124,065

Over-the-Counter Interest Rate Swaps at December 31, 2016

Counterparty

PAy/Receive
Floating Rate

Floating Rate

Fixed Rate

Maturity Date

Notional Amount (000’s)

Value

Three-Month KRW CD

DEU

Pay

KSDA

1.480%

4/20/18

KRW

102,630,000

$ (2,142)

Three-Month MYR

SCB

Pay

KLIBOR BNM

3.310

8/19/21

MYR

45,000

(213,788)

Total Over-the-Counter Interest Rate Swaps

$ (215,930)

Over-the-Counter Interest Rate Swaptions Written at December 31, 2016

Description

Counterparty

Pay/Receive
Floating Rate

Floating Rate

Fixed Rate

Expiration
Date

Notional Amount
(000’s)

Premiums Received

Value

Interest Rate Swap maturing 3/16/19 Call

BAC

Pay

Three-Month
USD BBA
LIBOR

1.821

3/14/17

USD

78,000

105,300

(88,038

)

Interest Rate Swap maturing 3/2/27 Call

BAC

Pay

Three-Month
USD BBA
LIBOR

2.500

2/28/17

USD

104,000

677,030

(760,094

)

Total Over-the-Counter Interest Rate Swaptions Written

782,330

(848,132)


Glossary:
Counterparty Abbreviations
BAC		Barclays Bank plc
BNP		BNP Paribas
BOA		Bank of America NA
CITNA-B		Citibank NA
DEU		Deutsche Bank AG
FIB		Credit Suisse International
GSCOI		Goldman Sachs International
GSCO-OT		Goldman Sachs Bank USA
HSBC		HSBC Bank USA NA
JPM		JPMorgan Chase Bank NA
MOS-A		Morgan Stanley
MSCO		Morgan Stanley Capital Services, Inc.
SCB		Standard Chartered Bank
TDB		Toronto Dominion Bank
UBS		UBS AG

Currency abbreviations indicate amounts reporting in currencies
AUD		Australian Dollar
BRL		Brazilian Real
CAD		Canadian Dollar
CLP		Chilean Peso
COP		Colombian Peso
EUR		Euro
GBP		British Pound Sterling

32 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Currency abbreviations indicate amounts reporting in currencies (Continued)
HUF		Hungarian Forint
IDR		Indonesian Rupiah
INR		Indian Rupee
JPY		Japanese Yen
KRW		South Korean Won
MXN		Mexican Nuevo Peso
MYR		Malaysian Ringgit
PEN		Peruvian New Sol
PHP		Philippine Peso
PLN		Polish Zloty
RUB		Russian Ruble
SGD		Singapore Dollar
THB		Thailand Baht
TRY		New Turkish Lira
TWD		New Taiwan Dollar
ZAR		South African Rand

Definitions
BANXICO		Banco de Mexico
BBA LIBOR		British Bankers’ Association London - Interbank Offered Rate
BNM		Bank Negra Malaysia
BUND		German Federal Obligation
BZDI		Brazil Interbank Deposit Rate
CD		Certificate of Deposit
CDX.EM.26		Markit CDX Emerging Markets Index
CDX.HY.27		Markit CDX High Yield Index
CMBX.NA.BBB-.9		Markit CMBX North American Index
JIBAR SAFEX		South Africa Johannesburg Interbank Agreed Rate/Futures Exchange
KLIBOR		Kuala Lumpur Interbank Offered Rate
KSDA		Korean Securities Dealers Assn.
TIIE		Interbank Equilibrium Interest Rate
WIBOR WIBO		Poland Warsaw Interbank Offer Bid Rate

Exchange Abbreviations
CBT		Chicago Board of Trade
EUX		European Stock Exchange

See accompanying Notes to Consolidated Financial Statements.

33 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES December 31, 2016


Assets
Investments, at value—see accompanying Consolidated statement of investments:
Unaffiliated companies (cost $1,446,724,771)	$	1,433,059,227
Affiliated companies (cost $301,279,863)		306,805,695
		1,739,864,922
Cash		16,024,275
Cash—foreign currencies (cost $2,195,513)		2,204,676
Cash used for collateral on centrally cleared swaps		8,464,394
Unrealized appreciation on forward currency exchange contracts		9,683,559
Swaps, at value (net payments paid $510,516)		295,926
Centrally cleared swaps, at value (net premiums paid $1,983,669)		2,232,281
Receivables and other assets:
Investments sold (including $14,663,625 sold on a when-issued or delayed delivery basis)		18,387,165
Interest, dividends and principal paydowns		14,259,300
Shares of beneficial interest sold		597,966
Variation margin receivable		374,618
Other		189,135
Total assets		1,812,578,217
Liabilities
Unrealized depreciation on forward currency exchange contracts		8,779,721
Options written, at value (premiums received $2,257,477)		1,622,091
Swaps, at value (premiums received $3,675,664)		3,244,073
Centrally cleared swaps, at value (premiums received $2,455,246)		2,944,261
Swaptions written, at value (premiums received $782,330)		848,132
Payables and other liabilities:
Investments purchased (including $107,226,767 purchased on a when-issued or delayed delivery basis)		108,538,631
Shares of beneficial interest redeemed		720,521
Distribution and service plan fees		271,413
Trustees’ compensation		101,660
Shareholder communications		96,017
Variation margin payable		3,117
Other		78,489
Total liabilities		127,248,126
Net Assets	$	1,685,330,091


Composition of Net Assets
Par value of shares of beneficial interest	$	334,282
Additional paid-in capital		1,823,105,792
Accumulated net investment income		44,340,175
Accumulated net realized loss on investments and foreign currency transactions		(175,308,515	)
Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies		(7,141,643	)
Net Assets	$	1,685,330,091


Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $401,308,356 and 81,212,948 shares of beneficial interest outstanding)		$4.94
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $1,284,021,735 and 253,069,229 shares of beneficial interest outstanding)		$5.07

See accompanying Notes to Consolidated Financial Statements.

34 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENT OF OPERATIONS For the Year Ended December 31, 2016


Allocation of Income and Expenses from Master Funds¹
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC:
Interest	$	2,570,128
Dividends		3,001
Net expenses		(197,765	)
Net investment income allocated from Oppenheimer Master Event-Linked Bond Fund, LLC		2,375,364
Net investment income allocated from Oppenheimer Master Loan Fund, LLC
Interest		9,679,578
Dividends		261,440
Net expenses		(558,257	)
Net investment income allocated from Oppenheimer Master Loan Fund, LLC		9,382,761
Total allocation of net investment income from master funds		11,758,125
Investment Income
Interest - unaffiliated companies (net of foreign withholding taxes of $400,957)		67,590,200
Fee income on when-issued securities		1,896,514
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $169)		1,351
Affiliated companies		816,567
Total investment income		70,304,632
Expenses
Management fees		10,656,474
Distribution and service plan fees - Service shares		3,329,305
Transfer and shareholder servicing agent fees:
Non-Service shares		416,152
Service shares		1,332,662
Shareholder communications:
Non-Service shares		50,879
Service shares		162,843
Custodian fees and expenses		113,182
Trustees’ compensation		69,512
Borrowing fees		31,293
Other		261,361
Total expenses		16,423,663
Less reduction to custodian expenses		(6,049	)
Less waivers and reimbursements of expenses		(914,121	)
Net expenses		15,503,493
Net Investment Income		66,559,264

35 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENT OF OPERATIONS Continued


Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies (including premiums on options and swaptions exercised)	$	(80,022,358	)
Closing and expiration of option contracts written		1,575,415
Closing and expiration of futures contracts		(8,521,990	)
Foreign currency transactions		5,728,348
Swap contracts		(2,594,755	)
Swaption contracts		1,138,332
Net realized loss allocated from:
Oppenheimer Master Event-Linked Bond Fund, LLC		(326,597	)
Oppenheimer Master Loan Fund, LLC		(4,258,987	)
Net realized loss		(87,282,592	)
Net change in unrealized appreciation/depreciation on:
Investment transactions		114,058,602
Translation of assets and liabilities denominated in foreign currencies		(2,615,984	)
Futures contracts		(846,477	)
Option contracts written		596,466
Swap contracts		2,024,039
Swaption contracts		1,399,283
Net change in unrealized appreciation/depreciation allocated from:
Oppenheimer Master Event-Linked Bond Fund, LLC		837,960
Oppenheimer Master Loan Fund, LLC		14,675,812
Net change in unrealized appreciation/depreciation		130,129,701
Net Increase in Net Assets Resulting from Operations	$	109,406,373

1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 4 of the accompanying Consolidated Notes.

See accompanying Notes to Consolidated Financial Statements.

36 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016			Year Ended December 31, 2015
Operations
Net investment income	$	66,559,264		$	86,850,429
Net realized loss		(87,282,592	)		(53,432,958	)
Net change in unrealized appreciation/depreciation		130,129,701			(75,538,414	)
Net increase (decrease) in net assets resulting from operations		109,406,373			(42,120,943	)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(20,719,866	)		(29,479,205	)
Service shares		(61,256,620	)		(81,704,570	)
		(81,976,486	)		(111,183,775	)
Beneficial Interest Transactions
Net decrease in net assets resulting from beneficial interest transactions:
Non-Service shares		(34,595,904	)		(120,101,219	)
Service shares		(112,356,578	)		(59,939,490	)
		(146,952,482	)		(180,040,709	)
Net Assets
Total decrease		(119,522,595	)		(333,345,427	)
Beginning of period		1,804,852,686			2,138,198,113
End of period (including accumulated net investment income of $44,340,175 and $ 90,272,009, respectively)	$	1,685,330,091		$	1,804,852,686

See accompanying Notes to Consolidated Financial Statements.

37 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

CONSOLIDATED FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$4.88		$5.30		$5.38		$5.67		$5.38
Income (loss) from investment operations:
Net investment income¹		0.20		0.23		0.26		0.28		0.33
Net realized and unrealized gain (loss)		0.11		(0.34)		(0.11)		(0.29)		0.36
Total from investment operations		0.31		(0.11)		0.15		(0.01)		0.69
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.25)		(0.31)		(0.23)		(0.28)		(0.34)
Distributions from net realized gain		0.00		0.00		0.00		0.00		(0.06)
Total dividends and/or distributions to shareholders		(0.25)		(0.31)		(0.23)		(0.28)		(0.40)
Net asset value, end of period		$4.94		$4.88		$5.30		$5.38		$5.67


Total Return, at Net Asset Value²		6.53%		(2.26)%		2.84%		(0.13)%		13.53%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$401,308		$429,710		$586,951		$738,741		$741,996
Average net assets (in thousands)		$416,054		$510,765		$707,673		$734,707		$690,351
Ratios to average net assets:^3,4
Net investment income		4.00%		4.51%		4.73%		5.12%		6.01%
Expenses excluding specific expenses listed below		0.79%		0.76%		0.74%		0.74%		0.77%
Interest and fees from borrowings		0.00%⁵		0.00%⁵		0.00%		0.00%		0.00%
Total expenses⁶		0.79%		0.76%		0.74%		0.74%		0.77%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.74%		0.73%		0.71%		0.72%		0.71%
Portfolio turnover rate⁷		80%		79%		93%		107%		78%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Includes the Fund’s share of the allocated expenses and/or net investment income from the master funds.

5. Less than 0.005%.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	0.80	%
Year Ended December 31, 2015	0.77	%
Year Ended December 31, 2014	0.75	%
Year Ended December 31, 2013	0.74	%
Year Ended December 31, 2012	0.77	%

7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$1,798,210,272		$1,766,445,159
Year Ended December 31, 2015		$1,225,140,927		$1,266,426,777
Year Ended December 31, 2014		$1,348,552,640		$1,337,346,996
Year Ended December 31, 2013		$4,294,357,677		$4,679,296,373
Year Ended December 31, 2012		$3,862,820,437		$3,466,796,233

See accompanying Notes to Consolidated Financial Statements.

38 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Per Share Operating Data
Net asset value, beginning of period		$5.00		$5.42		$5.50		$5.79		$5.49
Income (loss) from investment operations:
Net investment income¹		0.19		0.23		0.25		0.27		0.33
Net realized and unrealized gain (loss)		0.12		(0.35)		(0.11)		(0.29)		0.36
Total from investment operations		0.31		(0.12)		0.14		(0.02)		0.69
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.24)		(0.30)		(0.22)		(0.27)		(0.33)
Distributions from net realized gain		0.00		0.00		0.00		0.00		(0.06)
Total dividends and/or distributions to shareholders		(0.24)		(0.30)		(0.22)		(0.27)		(0.39)
Net asset value, end of period		$5.07		$5.00		$5.42		$5.50		$5.79


Total Return, at Net Asset Value²		6.27%		(2.49)%		2.49%		(0.37)%		13.15%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,284,022		$1,375,143		$1,551,247		$1,716,026		$1,840,721
Average net assets (in thousands)		$1,332,343		$1,496,350		$1,646,615		$1,794,640		$1,715,995
Ratios to average net assets:^3,4
Net investment income		3.75%		4.26%		4.48%		4.88%		5.76%
Expenses excluding specific expenses listed below		1.04%		1.01%		0.99%		0.99%		1.02%
Interest and fees from borrowings		0.00%⁵		0.00%⁵		0.00%		0.00%		0.00%
Total expenses⁶		1.04%		1.01%		0.99%		0.99%		1.02%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.99%		0.98%		0.96%		0.97%		0.96%
Portfolio turnover rate⁷		80%		79%		93%		107%		78%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Includes the Fund’s share of the allocated expenses and/or net investment income from the master funds.

5. Less than 0.005%.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.05	%
Year Ended December 31, 2015	1.02	%
Year Ended December 31, 2014	1.00	%
Year Ended December 31, 2013	0.99	%
Year Ended December 31, 2012	1.02	%

7. The portfolio turnover rate excludes purchase and sale transactions of To Be Announced (TBA) mortgage-related securities as follows:


	Purchase Transactions		Sale Transactions

Year Ended December 31, 2016		$1,798,210,272		$1,766,445,159
Year Ended December 31, 2015		$1,225,140,927		$1,266,426,777
Year Ended December 31, 2014		$1,348,552,640		$1,337,346,996
Year Ended December 31, 2013		$4,294,357,677		$4,679,296,373
Year Ended December 31, 2012		$3,862,820,437		$3,466,796,233

See accompanying Notes to Consolidated Financial Statements.

39 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Global Strategic Income Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s main investment objective is to seek total return. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Basis for Consolidation. The Fund has established a Cayman Islands exempted company, Oppenheimer Global Strategic Income Fund (Cayman) Ltd., which is wholly-owned and controlled by the Fund (the “Subsidiary”). The Fund and Subsidiary are both managed by the Manager. The Fund may invest up to 25% of its total assets in the Subsidiary. The Subsidiary invests primarily in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts) and exchange traded funds related to gold or other special minerals (“Gold ETFs”). The Subsidiary is subject to the same investment restrictions and guidelines, and follows the same compliance policies and procedures, as the Fund.

The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated. At period end, the Fund owned 51,485 shares with net assets of $4,466,412 in the Subsidiary.

Other financial information at period end:


Total market value of investments	$	397,575
Net assets	$	4,466,412
Net income (loss)	$	140,883
Net realized gain (loss)	$	40,180
Net change in unrealized appreciation/depreciation	$	205,494

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

40 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

2. Significant Accounting Policies (Continued)

securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Consolidated Statement of Operations, are amortized or accreted daily.

Return of Capital Estimates. Distributions received from the Fund’s investments in Master Limited Partnerships (MLPs), generally are comprised of income and return of capital. The Fund records investment income and return of capital based on estimates. Such estimates are based on historical information available from each MLP and other industry sources. These estimates may subsequently be revised based on information received from MLPs after their tax reporting periods are concluded.

Custodian Fees. “Custodian fees and expenses” in the Consolidated Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. This rate will increase to 2.00% effective January 1, 2017. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Subchapter M requires, among other things, that at least 90% of the Fund’s gross income be derived from securities or derived with respect to its business of investing in securities (typically referred to as “qualifying income”). Income from commodity-linked derivatives may not be treated as “qualifying income” for purposes of the 90% gross income requirement. The Internal Revenue Service (IRS) has previously issued a number of private letter rulings which conclude that income derived from commodity index-linked notes and investments in a wholly-owned subsidiary will be “qualifying income.” As a result, the Fund will gain exposure to commodities through commodity-linked notes and its wholly-owned subsidiary.

The IRS has suspended the granting of private letter rulings pending further review. As a result, there can be no assurance that the IRS will not change its position with respect to commodity-linked notes and wholly-owned subsidiaries. In addition, future legislation and guidance from the Treasury and the IRS may adversely affect the Fund’s ability to gain exposure to commodities through commodity-linked notes and its wholly-owned subsidiary.

The Fund is required to include in income for federal income tax purposes all of the subsidiary’s net income and gains whether or not such income is distributed by the subsidiary. Net income and gains from the subsidiary are generally treated as ordinary income by the Fund, regardless of the character of the subsidiary’s underlying income. Net losses from the subsidiary do not pass through to the Fund for federal income tax purposes.


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3,4,5		Net Unrealized Depreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$33,682,851		$—		$164,705,502		$6,374,083

1. At period end, the Fund had $164,682,432 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

No expiration	$	164,682,432

2. The Fund had $23,070 of straddle losses which were deferred.

41 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

3. During the reporting period, the Fund did not utilize any capital loss carryforward.

4. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

5. During the reporting period, $3,339,490 of unused capital loss carryforward expired.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Reduction to Paid-in Capital	Reduction to Accumulated Net Investment Income		Reduction to Accumulated Net Realized Loss on Investments

$3,338,490		$30,514,612		$33,853,102

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	81,976,486	$	111,183,775


Federal tax cost of securities	$	1,745,976,661
Federal tax cost of other investments		108,234,034

Total federal tax cost	$	1,854,210,695

Gross unrealized appreciation	$	38,022,334
Gross unrealized depreciation		(44,396,417	)

Net unrealized depreciation	$	(6,374,083	)

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

42 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

3. Securities Valuation (Continued)

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

Forward foreign currency exchange contracts are valued utilizing current and forward currency rates obtained from third party pricing services. When the settlement date of a contract is an interim date for which a quotation is not available, interpolated values are derived using the nearest dated forward currency rate.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors

Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.

Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets

43 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Consolidated Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Asset-Backed Securities	$	—		$	74,412,966		$	17,151,511	$	91,564,477
Mortgage-Backed Obligations		—			272,508,249			88,123		272,596,372
U.S. Government Obligations		—			31,134,424			—		31,134,424
Foreign Government Obligations		—			118,334,274			—		118,334,274
Corporate Loans		—			2,501,084			—		2,501,084
Corporate Bonds and Notes		—			782,800,906			28,301		782,829,207
Common Stocks		2,852,939			40,376			149,036		3,042,351
Rights, Warrants and Certificates		—			22,605			—		22,605
Structured Securities		—			5,491,270			2,899,462		8,390,732
Short-Term Note		—			119,881,200			—		119,881,200
Investment Companies		58,709,217			—			—		58,709,217
Over-the-Counter Options Purchased		—			1,844,302			—		1,844,302
Over-the-Counter Interest Rate Swaption Purchased		—			918,199			—		918,199

Total Investments, at Value		61,562,156			1,409,889,855			20,316,433		1,491,768,444
Other Financial Instruments:
Swaps, at value		—			295,926			—		295,926
Centrally cleared swaps, at value		—			2,232,281			—		2,232,281
Futures contracts		4,221			—			—		4,221
Forward currency exchange contracts		—			9,683,559			—		9,683,559

Total Assets excluding investment companies valued using practical expedient	$	61,566,377		$	1,422,101,621		$	20,316,433		1,503,984,431

Investment companies valued using practical expedient										248,096,478

Total Assets									$	1,752,080,909


Liabilities Table
Other Financial Instruments:
Swaps, at value	$	—		$	(3,244,073	)	$	—	$	(3,244,073	)
Centrally cleared swaps, at value		—			(2,944,261	)		—		(2,944,261	)
Options written, at value		—			(1,622,091	)		—		(1,622,091	)
Futures contracts		(437,934	)		—			—		(437,934	)
Forward currency exchange contracts		—			(8,779,721	)		—		(8,779,721	)
Swaptions written, at value		—			(848,132	)		—		(848,132	)

Total Liabilities	$	(437,934	)	$	(17,438,278	)	$	—	$	(17,876,212	)

The table below shows the transfers between Level 2 and Level 3. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers out of Level 2*			Transfers into Level 3*

Assets Table Investments, at Value:
Mortgage-Backed Obligations	$	(142,168	)	$	142,168

Total Assets	$	(142,168	)	$	142,168

* Transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market activity for these securities.

44 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

3. Securities Valuation (Continued)

The following is a reconciliation of assets in which significant unobservable inputs (level 3) were used in determining fair value:


	Value as of December 31, 2015		Realized gain (loss)		Change in unrealized appreciation/ depreciation		Accretion/ (amortization) of premium/ discount^a

Assets Table Investments, at Value:
Asset-Backed Securities	$	16,991,566	$	—	$	70,591	$	89,354
Mortgage-Backed Obligations		16,686		(49,009)		(3,530)		(171)
Corporate Loans		7,452		(1,440,560)		1,433,108		—
Corporate Bonds and Notes		29,997		1		(1,657)		(39)
Common Stocks		1,255,935		(2,111,954)		(1,084,555)		—
Structured Securities		4,439,555		(5,199,346)		4,763,316		49,425

Total Assets	$	22,741,191	$	(8,800,868)	$	5,177,273	$	138,569

a. Included in net investment income.


		Purchases		Sales			Transfers into Level 3		Transfers out of Level 3		Value as of December 31, 2016

Assets Table Investments, at Value:
Asset-Backed Securities		$	—	$	—		$	—	$	—	$	17,151,511
Mortgage-Backed Obligations			—		(18,021	)		142,168		—		88,123
Corporate Loans			—		—			—		—		—
Corporate Bonds and Notes			—		(1	)		—		—		28,301
Common Stocks			3,295,200		(1,205,590	)		—		—		149,036
Structured Securities			—		(1,153,488	)		—		—		2,899,462
	��
Total Assets		$	3,295,200	$	(2,377,100	)	$	142,168	$	—	$	20,316,433

The total change in unrealized appreciation/depreciation included in the Consolidated Statement of Operations attributable to Level 3 investments still held at period end:


	Change in unrealized appreciation/ depreciation

Assets Table Investments, at Value
Asset-Backed Securities	$	70,591
Mortgage-Backed Obligations		(52,869	)
Corporate Bonds and Notes		(1,656	)
Common Stocks		(3,146,179	)
Structured Securities		(252,872	)
Total	$	(3,382,985	)

The following table summarizes the valuation techniques and significant unobservable inputs used in determining fair value measurements for those investments classified as Level 3 at period end:

Value as of

December 31, 2016

Valuation

Technique

Unobservable

Input

Range of
Unobservable

Inputs

Unobservable
Input Used

Assets Table

Investments, at Value:

Asset-Backed Securities

17,151,511

Broker quotes

N/A

(a)

Mortgage-Backed Obligations

88,123

Pricing service

N/A

(a)

Corporate Bonds and Notes

28,301

Broker quotes

N/A

(a)

Estimated recovery

Common Stocks

proceeds

Nominal Value

N/A

$0.01/share

(b)

Estimated recovery

Common Stocks

149,021

proceeds

N/A

$0.0359/share

(c)

Structured Securities

2,899,462

Broker quotes

N/A

(a)

Total

20,316,433

(a) Securities classified as Level 3 whose unadjusted values were provided by a pricing service or broker-dealer for which such inputs are unobservable. The Manager periodically reviews pricing vendor and broker methodologies and inputs to confirm they are determined using unobservable inputs and have been appropriately classified. Such securities’ fair valuations could change significantly based on changes in unobservable inputs used by the pricing service or broker.

(b) The Fund fair values certain common stocks held at a nominal value to reflect the low probability of receipt of future payments to be received as a result of a merger. The Manager monitors such investments for additional market information or the occurrence of a significant event which would warrant a re-evaluation of the security’s fair valuation. A significant increase (decrease) in the future distribution amount, or a significant increase (decrease) to the probability of payment rate, will result in a significant increase (decrease) to the fair value of the investment.

45 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

4. Investments and Risks

Risks of Foreign Investing. The Fund may invest in foreign securities which are subject to special risks. Securities traded in foreign markets may be less liquid and more volatile than those traded in U.S. markets. Foreign issuers are usually not subject to the same accounting and disclosure requirements that U.S. companies are subject to, which may make it difficult for the Fund to evaluate a foreign company’s operations or financial condition. A change in the value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of investments denominated in that foreign currency and in the value of any income or distributions the Fund may receive on those investments. The value of foreign investments may be affected by exchange control regulations, foreign taxes, higher transaction and other costs, delays in the settlement of transactions, changes in economic or monetary policy in the United States or abroad, expropriation or nationalization of a company’s assets, or other political and economic factors. In addition, due to the inter-relationship of global economies and financial markets, changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to time-zone arbitrage risk. Foreign securities may trade on weekends or other days when the Fund does not price its shares. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse events that occur in that country or region. Foreign securities and foreign currencies held in foreign banks and securities depositories may be subject to limited or no regulatory oversight.

Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (“Affiliated Funds”). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services to, the Affiliated Funds. When applicable, the Fund’s investments in Affiliated Funds are included in the Consolidated Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Affiliated Funds.

Investment in Oppenheimer Master Funds. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the 1940 Act, as amended, that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master Loan Fund, LLC (“Master Loan”) and Oppenheimer Master Event-Linked Bond Fund, LLC (“Master Event-Linked Bond”) (the “Master Funds”). Each Master Fund has its own investment risks, and those risks can affect the value of the Fund’s investments and therefore the value of the Fund’s shares. To the extent that the Fund invests more of its assets in one Master Fund than in another, the Fund will have greater exposure to the risks of that Master Fund.

The investment objective of Master Loan is to seek income. The investment objective of Master Event-Linked Bond is to seek total return. The Fund’s investments in the Master Funds are included in the Consolidated Statement of Investments. The Fund recognizes income and gain/(loss) on its investments in each Master Fund according to its allocated pro-rata share, based on its relative proportion of total outstanding Master Fund shares held, of the total net income earned and the net gain/(loss) realized on investments sold by the Master Funds. As a shareholder, the Fund is subject to its proportional share of the Master Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Master Funds. The Fund owns 13.7% of Master Loan and 14.6% of Master Event-Linked Bond at period end.

Structured Securities. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note’s market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Consolidated Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures.

46 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

4. Investments and Risks (Continued)

Loans. The Fund invests in loans made to U.S. and foreign borrowers that are corporations, partnerships or other business entities. The Fund will do so directly as an original lender or by assignment or indirectly through participation agreements or certain derivative instruments. While many of these loans will be collateralized, the Fund can also invest in uncollateralized loans. Loans are often issued in connection with recapitalizations, acquisitions, leveraged buyouts, and refinancing of borrowers. The loans often pay interest at rates that float above (or are adjusted periodically based on) a benchmark that reflects current interest rates although the Fund can also invest in loans with fixed interest rates.

At period end, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:


	When-Issued or Delayed Delivery Basis Transactions

Purchased securities		$107,226,767
Sold securities		14,663,625

At period end, the Fund pledged $1,399,324 of collateral to the counterparty for forward roll transactions.

Restricted Securities. At period end, investments in securities included issues that are restricted. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. Securities that are restricted are marked with an applicable footnote on the Consolidated Statement of Investments. Restricted securities are reported on a schedule following the Consolidated Statement of Investments.

The prices of individual equity securities generally do not all move in the same direction at the same time and a variety of factors can affect the price of a particular company’s securities. These factors may include, but are not limited to, poor earnings reports, a loss of customers, litigation against the company, general unfavorable performance of the company��s sector or industry, or changes in government regulations affecting the company or its industry.

Credit Risk. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities that have missed an interest payment, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently miss an interest payment.

Information concerning securities not accruing interest at period end is as follows:

47 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

4. Investments and Risks (Continued)


Cost	$	3,687,721
Market Value	$	2,030,675
Market Value as % of Net Assets		0.12%

Sovereign Debt Risk. The Fund invests in sovereign debt securities, which are subject to certain special risks. These risks include, but are not limited to, the risk that a governmental entity may delay or refuse, or otherwise be unable, to pay interest or repay the principal on its sovereign debt. There may also be no legal process for collecting sovereign debt that a government does not pay or bankruptcy proceedings through which all or part of such sovereign debt may be collected. In addition, a restructuring or default of sovereign debt may also cause additional impacts to the financial markets, such as downgrades to credit ratings, reduced liquidity and increased volatility, among others.

Shareholder Concentration. At period end, three shareholders each owned 20% or more of the Fund’s total outstanding shares.

A shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. A related party owned 21% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Use of Derivatives

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at

48 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

6. Use of Derivatives (Continued)

a future date. Such contracts are traded in the OTC inter-bank currency dealer market.

Forward contracts are reported on a schedule following the Consolidated Statement of Investments. The unrealized appreciation (depreciation) is reported in the Consolidated Statement of Assets and Liabilities as a receivable (or payable) and in the Consolidated Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Consolidated Statement of Operations.

The Fund has entered into forward contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to take a positive investment perspective on the related currency. These forward contracts seek to increase exposure to foreign exchange rate risk.

The Fund has entered into forward contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

The Fund has entered into forward contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to take a negative investment perspective on the related currency. These forward contracts seek to increase exposure to foreign exchange rate risk.

The Fund has entered into forward contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

During the reporting period, the Fund had daily average contract amounts on forward contracts to buy and sell of $374,832,613 and $474,612,739, respectively.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty to a forward contract will default and fail to perform its obligations to the Fund.

Futures Contracts

Futures contracts are reported on a schedule following the Consolidated Statement of Investments. Securities held by a futures commission merchant to cover initial margin requirements on open futures contracts are noted in the Consolidated Statement of Investments. Cash held by a futures commission merchant to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Consolidated Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Consolidated Statement of Operations. Realized gains (losses) are reported in the Consolidated Statement of Operations at the closing or expiration of futures contracts.

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk.

The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

The Fund has sold futures contracts on various equity indexes to decrease exposure to equity risk.

During the reporting period, the Fund had an ending monthly average market value of $148,090,086 and $67,672,958 on futures contracts purchased and sold, respectively.

Option Activity

Options can be traded through an exchange or through a privately negotiated arrangement with a dealer in an OTC transaction. Options traded through an exchange are generally cleared through a clearinghouse (such as The Options Clearing Corporation). The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Consolidated Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Consolidated Statement of Operations.

The Fund has purchased call options on currencies to increase exposure to foreign exchange rate risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has purchased put options on currencies to decrease exposure to foreign exchange rate risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

49 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

The Fund has purchased call options on individual equity securities and/or equity indexes to increase exposure to equity risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $607,006 and $802,524 on purchased call options and purchased put options, respectively.

Options written, if any, are reported in a schedule following the Consolidated Statement of Investments and as a liability in the Consolidated Statement of Assets and Liabilities. Securities held in collateral accounts to cover potential obligations with respect to outstanding written options are noted in the Consolidated Statement of Investments.

The Fund has written put options on currencies to increase exposure to foreign exchange rate risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has written call options on currencies to decrease exposure to foreign exchange rate risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

The Fund has written call options on individual equity securities and/or equity indexes to decrease exposure to equity risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $537,015 and $509,461 on written call options and written put options, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Written option activity for the reporting period was as follows:


	Number of Contracts			Amount of Premiums

Options outstanding as of
December 31, 2015		64,770,515,000		$	2,061,032
Options written		530,436,238,368			8,759,977
Options closed or expired		(100,762,038,642	)		(1,575,414	)
Options exercised		(411,824,533,383	)		(6,988,118	)

Options outstanding as of
December 31, 2016		82,620,181,343		$	2,257,477

Swap Contracts

Swap contracts are reported on a schedule following the Consolidated Statement of Investments. The values of centrally cleared swap and OTC swap contracts are aggregated by positive and negative values and disclosed separately on the Consolidated Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund, if any, at termination or settlement. The net change in this amount during the period is included on the Consolidated Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Consolidated Statement of Operations.

Credit Default Swap Contracts. A credit default swap is a contract that enables an investor to buy or sell protection against a defined-issuer credit event, such as the issuer’s failure to make timely payments of interest or principal on a debt security, bankruptcy or restructuring. The Fund may enter into credit default swaps either by buying or selling protection on a corporate issuer, sovereign issuer, or a basket or index of issuers (the “reference

50 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

6. Use of Derivatives (Continued)

asset”).

The Fund has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual issuers and/or indexes of issuers.

The Fund has engaged in spread curve trades by simultaneously purchasing and selling protection through credit default swaps referenced to the same reference asset but with different maturities. Spread curve trades attempt to gain exposure to credit risk on a forward basis by realizing gains on the expected differences in spreads.

For the reporting period, the Fund had ending monthly average notional amounts of $34,974,074 and $20,124,193 on credit default swaps to buy protection and credit default swaps to sell protection, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Currency Swap Contracts. A currency swap contract is an agreement between counterparties to exchange different currencies at contract inception that are equivalent to a notional value. The exchange at contract inception is made at the current spot rate. The contract also includes an agreement to reverse the exchange of the same notional values of those currencies at contract termination. The re-exchange at contract termination may take place at the same exchange rate, a specified rate or the then current spot rate. Certain currency swap contracts provide for exchanging the currencies only at contract termination and can provide for only a net payment in the settlement currency, typically USD. A currency swap contract may also include the exchange of periodic payments, between the counterparties, that are based on interest rates available in the respective currencies at contract inception. Other currency swap contracts may not provide for exchanging the different currencies at all, and only for exchanging interest cash flows based on the notional value in the contract.

The Fund has entered into currency swap contracts with the obligation to pay an interest rate on the dollar notional amount and receive an interest rate on the various foreign currency notional amounts. These currency swap contracts increase exposure to, or decrease exposure away from, foreign exchange and interest rate risk.

For the reporting period, the Fund had ending monthly average notional amounts of $2,068,237 on currency swaps which receive a fixed rate.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Interest Rate Swap Contracts. An interest rate swap is an agreement between counterparties to exchange periodic payments based on interest rates. One cash flow stream will typically be a floating rate payment based upon a specified floating interest rate while the other is typically a fixed interest rate.

The Fund has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. Typically, if relative interest rates rise, payments made by the Fund under a swap agreement will be greater than the payments received by the Fund.

The Fund has entered into interest rate swaps in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. Typically, if relative interest rates rise, payments received by the Fund under the swap agreement will be greater than the payments made by the Fund.

For the reporting period, the Fund had ending monthly average notional amounts of $24,240,789 and $109,502,477 on interest rate swaps which pay a fixed rate and interest rate swaps which receive a fixed rate, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Total Return Swap Contracts. A total return swap is an agreement between counterparties to exchange periodic payments based on the value of asset or non-asset references. One cash flow is typically based on a non-asset reference (such as an interest rate) and the other on the total return of a reference asset (such as a security or a basket of securities or securities index). The total return of the reference asset typically includes appreciation or depreciation on the reference asset, plus any interest or dividend payments.

Total return swap contracts are exposed to the market risk factor of the specific underlying financial instrument or index. Total return swaps are less standard in structure than other types of swaps and can isolate and/or include multiple types of market risk factors including equity risk, credit risk, and interest rate risk.

The Fund has entered into total return swaps to increase exposure to the credit risk of various indexes or basket of securities. These credit risk

51 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

related total return swaps require the Fund to pay to, or receive payments from, the counterparty based on the movement of credit spreads of the related indexes or securities.

For the reporting period, the Fund had ending monthly average notional amounts of $1,294,976 on total return swaps which are long the reference asset.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Swaption Transactions

Purchased swaptions are reported as a component of investments in the Consolidated Statement of Investments and the Consolidated Statement of Assets and Liabilities. Written swaptions are reported on a schedule following the Consolidated Statement of Investments and their value is reported as a separate asset or liability line item in the Consolidated Statement of Assets and Liabilities. The net change in unrealized appreciation or depreciation on written swaptions is separately reported in the Consolidated Statement of Operations. When a swaption is exercised, the cost of the swap is adjusted by the amount of premium paid or received. Upon the expiration or closing of an unexercised swaption contract, a gain or loss is reported in the Consolidated Statement of Operations for the amount of the premium paid or received.

The Fund has purchased swaptions which gives it the option to enter into an interest rate swap in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. A purchased swaption of this type becomes more valuable as the reference interest rate decreases relative to the preset interest rate.

The Fund has purchased swaptions which gives it the option to enter into an interest rate swap in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. A purchased swaption of this type becomes more valuable as the reference interest rate increases relative to the preset interest rate.

The Fund has purchased swaptions which gives it the option to sell credit protection through credit default swaps in order to increase exposure to the credit risk of individual issuers and/ or indexes of issuers. A purchased swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset decreases.

The Fund has written swaptions which gives it the obligation, if exercised by the purchaser, to enter into an interest rate swap in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. A written swaption of this type becomes more valuable as the reference interest rate decreases relative to the preset interest rate.

The Fund has written swaptions which gives it the obligation, if exercised by the purchaser, to enter into an interest rate swap in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. A written swaption of this type becomes more valuable as the reference interest rate increases relative to the preset interest rate.

The Fund has written swaptions which give it the obligation, if exercised by the purchaser, to sell credit protection through credit default swaps in order to increase exposure to the credit risk of individual issuers and/or indexes of issuers. A written swaption of this type becomes more valuable as the likelihood of a credit event on the reference asset decreases.

During the reporting period, the Fund had an ending monthly average market value of $1,773,812 and $1,229,063 on purchased and written swaptions, respectively.

Written swaption activity for the reporting period was as follows:


	Number of Contracts			Amount of Premiums

Swaptions outstanding as of
December 31, 2015		362,297,441		$	1,043,474
Swaptions written		1,820,854,000			6,713,225
Swaptions closed or expired		(380,061,441	)		(1,138,332	)
Swaptions exercised		(1,621,090,000	)		(5,836,037	)

Swaptions outstanding as of
December 31, 2016		182,000,000		$	782,330

To reduce counterparty risk with respect to OTC transactions, the Fund has entered into master netting arrangements, established within the Fund’s

52 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

6. Use of Derivatives (Continued)

International Swap and Derivatives Association, Inc. (“ISDA”) master agreements, which allow the Fund to make (or to have an entitlement to receive) a single net payment in the event of default (close-out netting) for outstanding payables and receivables with respect to certain OTC positions in swaps, options, swaptions, and forward currency exchange contracts for each individual counterparty. In addition, the Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to ISDA master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fund.

At period end, the Fund has required certain counterparties to post collateral of $4,069,474.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Consolidated Statement of Assets and Liabilities. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund, if any, is reported separately on the Consolidated Statement of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by the Fund, if any, is noted in the Consolidated Statement of Investments. Generally, the amount of collateral due from or to a party must exceed a minimum transfer amount threshold (e.g. $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance.

The following table presents by counterparty the Fund’s OTC derivative assets net of the related collateral pledged by the Fund at period end:


			Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Counterparty	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities*		Financial Instruments Available for Offset		Financial Instruments Collateral Received**		Cash Collateral Received**		Net Amount

Bank of America NA	$	1,347,335	$	(254,184)	$	(1,093,151)	$	–	$	–
Barclays Bank plc		3,539,816		(3,379,156)		–		–		160,660
BNP Paribas		467,040		(345,636)		–		–		121,404
Citibank NA		1,637,931		(1,637,931)		–		–		–
Deutsche Bank AG		18,123		(18,123)		–		–		–
Goldman Sachs Bank USA		329,287		(204,613)		(124,674)		–		–
Goldman Sachs International		15,744		–		(15,744)		–		–
HSBC Bank USA NA		430,212		(430,212)		–		–		–
JPMorgan Chase Bank NA		2,134,132		(2,134,132)		–		–		–
Morgan Stanley		1,942		–		–		–		1,942

53 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)


			Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Counterparty	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities*		Financial Instruments Available for Offset		Financial Instruments Collateral Received**		Cash Collateral Received**		Net Amount

Toronto Dominion Bank	$	2,820,424	$	(1,595,072)	$	(1,225,352)	$	–	$	–

	$	12,741,986	$	(9,999,059)	$	(2,458,921)	$	–	$	284,006

*OTC derivatives are reported gross on the Consolidated Statement of Assets and Liabilities. Exchange traded options and margin related to centrally cleared swaps and futures are excluded from these reported amounts.

**Reported collateral posted for the benefit of the Fund within this table is limited to the net outstanding amount due from an individual counterparty. The collateral posted for the benefit of the Fund may exceed these amounts.

The following table presents by counterparty the Fund’s OTC derivative liabilities net of the related collateral pledged by the Fund at period end:


			Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Counterparty	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities*		Financial Instruments Available for Offset		Financial Instruments Collateral Pledged**		Cash Collateral Pledged**		Net Amount

Bank of America NA	$	(254,184)	$	254,184	$	–	$	–	$	–
Barclays Bank plc		(3,379,156)		3,379,156		–		–		–
BNP Paribas		(345,636)		345,636		–		–		–
Citibank NA		(1,647,369)		1,637,931		–		–		(9,438)
Credit Suisse International		(1,114,360)		–		1,114,360		–		–
Deutsche Bank AG		(593,217)		18,123		575,094		–		–
Goldman Sachs Bank USA		(204,613)		204,613		–		–		–
HSBC Bank USA NA		(1,107,573)		430,212		677,361		–		–
JPMorgan Chase Bank NA		(2,350,189)		2,134,132		115,885		–		(100,172)
Morgan Stanley Capital Services, Inc.		(1,688,860)		–		1,688,860		–		–
Standard Chartered Bank		(213,788)		–		213,788		–		–
Toronto Dominion Bank		(1,595,072)		1,595,072		–		–		–

	$	(14,494,017)	$	9,999,059	$	4,385,348	$	–		$ (109,610)

**Reported collateral pledged within this table is limited to the net outstanding amount due from the Fund. The securities pledged as collateral by the Fund as reported on the Consolidated Statements of Investments may exceed these amounts.

The following table presents the valuations of derivative instruments by risk exposure as reported within the Consolidated Statement of Assets and Liabilities at period end:

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Consolidated

Statement of Assets
and Liabilities Location

Value

Consolidated

Statement of Assets
and Liabilities Location

Value

Credit contracts

Swaps, at value

295,926

Swaps, at value

3,028,143

Interest rate contracts

Swaps, at value

215,930

Credit contracts

Centrally cleared swaps, at value

1,730,801

Centrally cleared swaps, at value

2,566,846

Interest rate contracts

Centrally cleared swaps, at value

501,480

Centrally cleared swaps, at value

377,415

Interest rate contracts

Variation margin receivable

374,618^*

Variation margin payable

3,117^*

Unrealized appreciation on

Unrealized depreciation on

Forward currency

forward currency exchange

exchange contracts

contracts

9,683,559

contracts

8,779,721

Forward currency exchange

contracts

Options written, at value

1,622,091

Interest rate contracts

Swaptions written, at value

848,132

Forward currency exchange

contracts

Investments, at value

1,844,302^**

Interest rate contracts

Investments, at value

918,199^**

Total

15,348,885

17,441,395

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Consolidated Statement of Assets and Liabilities upon receipt or payment.

**Amounts relate to purchased option contracts and purchased swaption contracts, if any.

54 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

6. Use of Derivatives (Continued)

The effect of derivative instruments on the Consolidated Statement of Operations is as follows:


	Amount of Realized Gain or (Loss) Recognized on Derivatives

Derivatives Not Accounted for as Hedging Instruments	Investment from unaffiliated companies (including premiums on options and swaptions exercised)*		Closing and expiration of swaption contracts written		Closing and expiration of option contracts written		Closing and expiration of futures contracts		Foreign currency transactions		Swap contracts		Total

Credit contracts	$	(282,982)	$	94,857	$	—	$	—	$	—	$	386,038	$	197,913
Equity contracts		(40,956)		—		—		(138,766)		—		—		(179,722)
Forward currency exchange contracts		(2,338,231)		—		1,575,415		—		6,422,510		(1,825,710)		3,833,984
Interest rate contracts		(3,270,391)		1,043,475		—		(8,383,224)		—		(1,155,083)		(11,765,223)

Total	$	(5,932,560)	$	1,138,332	$	1,575,415	$	(8,521,990)	$	6,422,510	$	(2,594,755)	$	(7,913,048)

*Includes purchased options contracts, purchased swaption contracts, written options contracts exercised and written swaption contracts exercised, if any.


	Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives

Derivatives Not Accounted for as Hedging Instruments	Investments*		Option contracts written		Swaption contracts written		Futures contracts		Translation of assets and liabilities denominated in foreign currencies		Swap contracts		Total

Credit contracts	$	—	$	—	$	—	$	—	$	—	$	75,665	$	75,665
Forward currency exchange contracts		422,464		596,466		—		—		(2,702,205)		1,512,906		(170,369)
Interest rate contracts		203,979		—		1,399,283		(846,477)		—		435,468		1,192,253

Total	$	626,443	$	596,466	$	1,399,283	$	(846,477)	$	(2,702,205)	$	2,024,039	$	1,097,549

*Includes purchased option contracts and purchased swaption contracts, if any.

7. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares		Amount

Non-Service Shares
Sold		2,809,997	$	13,876,130		4,671,962	$	23,990,179
Dividends and/or distributions reinvested		4,307,664		20,719,866		5,825,930		29,479,205
Redeemed		(14,033,568)		(69,191,900)		(33,212,336)		(173,570,603)

Net decrease		(6,915,907)	$	(34,595,904)		(22,714,444)	$	(120,101,219)



Service Shares
Sold		9,843,598	$	49,602,452		13,496,560	$	71,281,913
Dividends and/or distributions reinvested		12,375,075		61,256,620		15,712,417		81,704,570
Redeemed		(44,290,987)		(223,215,650)		(40,362,328)		(212,925,973)

Net decrease		(22,072,314)	$	(112,356,578)		(11,153,351)	$	(59,939,490)

8. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities	$	1,151,810,108	$	1,358,293,133
U.S. government and government agency obligations		73,000,441		78,828,988
To Be Announced (TBA) mortgage-related securities		1,798,210,272		1,766,445,159

9. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the

55 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

9. Fees and Other Transactions with Affiliates (Continued)

Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $200 million			0.75%
Next $200 million			0.72
Next $200 million			0.69
Next $200 million			0.66
Next $200 million			0.60
Next $4 billion			0.50
Over $5 billion			0.48

The Manager also provides investment management related services to the Subsidiary. The Subsidiary pays the Manager a monthly management fee at an annual rate according to the above schedule. The Subsidiary also pays certain other expenses including custody and directors’ fees.

The Fund’s effective management fee for the reporting period was 0.61% of average annual net assets before any Subsidiary management fees or any applicable waivers.

Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund and the Subsidiary. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the investment management fee collected by the Manager from the Fund and the Subsidiary, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.

Transfer Agent Fees. OFI Global (the “Transfer Agent”) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Consolidated Statement of Operations and Consolidated Financial Highlights, respectively.

Trustees’ Compensation. The Fund’s Board of Trustees (“Board”) has adopted a compensation deferral plan for Independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustees under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustees. The Fund purchases shares of the funds selected for deferral by the Trustees in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Consolidated Statement of Assets and Liabilities. Deferral of Trustees’ fees under the plan will not affect the net assets of the Fund and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.75% for Non-Service shares and 1.00% for Service shares.

The Manager has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee it receives from the Subsidiary. During the reporting period, the Manager waived $73,025.

The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investments in Affiliated Funds. During the reporting period, the Manager waived fees and/or reimbursed the Fund $841,096 for these management fees.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

10. Borrowings and Other Financing

Joint Credit Facility. A number of mutual funds managed by the Manager participate in a $1.3 billion revolving credit facility (the “Facility”) intended

56 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

10. Borrowings and Other Financing (Continued)

to provide short-term financing, if necessary, subject to certain restrictions in connection with atypical redemption activity. Expenses and fees related to the Facility are paid by the participating funds and are disclosed separately or as other expenses on the Consolidated Statement of Operations. The Fund did not utilize the Facility during the reporting period.

11. Pending Litigation

57 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying consolidated statement of assets and liabilities of Oppenheimer Global Strategic Income Fund/VA (a separate series of Oppenheimer Variable Account Funds) and subsidiary, including the consolidated statement of investments, as of December 31, 2016, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the years in the five-year period then ended. These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Global Strategic Income Fund/VA and subsidiary as of December 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG_LLP

Denver, Colorado

February 24, 2017

58 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

None of the dividends paid by the Fund during the reporting period are eligible for the corporate dividend-received deduction.

59 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Michael Mata, Krishna Memani and Hemant Baijal, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Investment Performance of the Managers and the Fund. Throughout the year, the Managers provided information on the investment performance of the Fund, the Adviser and the Sub-Adviser, including comparative performance information. The Board also reviewed information, prepared by the Managers and by the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other multisector bond funds underlying variable insurance products. The Board considered that the Fund underperformed its category median during the one-, three-, five- and ten-year periods. The Board took into account the Adviser’s assertion that the Fund underperformed its performance category for the one- and three-year periods due to several asset allocation decisions relative to peer funds, including the Fund’s position in emerging market local debt, as well as security selection in high yield bonds. The Board took into account recent changes to the Fund, including that Hemant Baijal was appointed as a new portfolio manager for the Fund effective as of March 31, 2015. The Board further considered that the Adviser recently has added more resources to the Fund’s portfolio manager team. The Board concluded it was appropriate to permit the Fund’s performance to reflect these changes and additional investments on the part of the Adviser.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other multisector bond funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were equal to its category median and one basis point higher than its peer group median. The Board also considered that the Fund’s contractual management fee was lower than its peer group median and category median. The Board noted that the Adviser has voluntarily agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.75% for Non-Service Shares and 1.00% for Service Shares. This voluntary expense limitation may be amended or withdrawn at any time without prior notice to shareholders.

60 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

information regarding the Managers’ profitability from their relationship with the Fund. The Board also considered that the Managers must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund. The Board reviewed whether the Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

61 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

62 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008-2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

63 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992-2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969-1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed-Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Baijal, Mata, Memani, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Hemant Baijal, Vice President (Since 2015) Year of Birth: 1962		Vice President and Senior Portfolio Manager of the Sub-Adviser (since July 2011) and Co-Head of the Global Debt Team (since January 2015). Co-founder, Partner and Portfolio Manager of Six Seasons Global Asset Management (January 2009-December 2010). Partner and Portfolio Manager of Aravali Partners, LLC (September 2006-December 2008); Partner and Portfolio Manager at Havell Capital Management, LLC (November 1996-August 2006). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Michael Mata, Vice President (since 2014) Year of Birth: 1963		Senior Vice President of the Sub-Adviser and the Head of Multi-Sector Fixed Income (since July 2014). Portfolio manager with ING Investment Management and Head of Multi-Sector Fixed-Income (August 2004-December 2013), managing the Global Bond and Core Plus strategies and the macro and quantitative research teams, along with the emerging markets sovereign team. Senior Vice President and Senior Risk Manager at Putnam Investments (March 2000-August 2004) and a Vice President and Risk Manager for Fixed Income Trading at Lehman Brothers (September 1994-March 2000). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Krishna Memani, Vice President (since 2009) Year of Birth: 1960		President of the Sub-Adviser (since January 2013); Executive Vice President of the Manager (since January 2014) and Chief Investment Officer of the OppenheimerFunds advisory entities (since January 2014). Chief Investment Officer, Fixed Income of the Sub-Adviser (January 2013-December 2013); Head of the Investment Grade Fixed Income Team of the Sub-Adviser (March 2009-January 2014); Director of Fixed Income of the Sub-Adviser (October 2010-December 2012); Senior Vice President of the Sub-Adviser (March 2009-December 2012) and Senior Vice President of OFI Global Institutional, Inc. (April 2009-December 2012). Managing Director and Head of the U.S. and European Credit Analyst Team at Deutsche Bank Securities (June 2006-January 2009). Chief Credit Strategist at Credit Suisse Securities (August 2002-March 2006). Managing Director and Senior Portfolio Manager at Putnam Investments (September 1998-June 2002). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

64 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA


Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub-Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

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67 OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager				OFI Global Asset Management, Inc.

Sub-Adviser				OppenheimerFunds, Inc.

Distributor				OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent				OFI Global Asset Management, Inc.

Sub-Transfer Agent				Shareholder Services, Inc.
				DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm				KPMG LLP

Legal Counsel				Ropes & Gray LLP

				Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

				© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO



		December 31, 2016
		Oppenheimer
		Equity Income Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds
		ANNUAL REPORT
		Listing of Top Holdings Fund Performance Discussion Financial Statements

PORTFOLIO MANAGER: Michael S. Levine, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		1/2/03		15.31%		11.63%		6.70%
Service Shares		9/18/06		15.13		10.84		4.15
Russell 1000 Value Index				17.34		14.80		5.72

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS



Citigroup, Inc.			5.5%

Assured Guaranty Ltd.			3.1

JPMorgan Chase & Co.			2.9

Wells Fargo & Co.			2.8

AT&T, Inc.			2.7

Apple, Inc.			2.7

Chevron Corp.			2.7

Royal Dutch Shell plc, Cl. A, Sponsored ADR			2.4

Pfizer, Inc.			2.4

Morgan Stanley			2.0

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

SECTOR ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of common stocks.

2 OPPENHEIMER EQUITY INCOME FUND/VA

Fund Performance Discussion

The Fund’s Non-Service shares returned 15.31% during the reporting period. In comparison, the Fund underperformed the Russell 1000 Value Index (the “Index”), which returned 17.34%. On a sector basis, the most significant detractors from performance versus the Index included stock selection and overweight positions in health care and consumer discretionary. The largest outperforming sectors for the Fund versus the Index were financials and consumer staples, due primarily to stock selection.

MARKET OVERVIEW

Not surprisingly, markets were volatile during the reporting period. Nevertheless, the Index and the Fund experienced gains, particularly after the November U.S. Presidential election. Similar to the surprise Brexit vote in June, expectations of a negative market reaction proved to be overly pessimistic, and the U.S. equity market reacted in a positive manner, with the Russell 1000 Value index gaining almost 8% between the election and mid-December, when the Federal Reserve increased the Federal Funds Rate by another quarter percent, only the second such move since the financial crisis.

Investor optimism improved in the hope that an incoming Trump administration would pursue a pro-growth economic agenda, specifically around corporate tax reform and deregulation. The primary beneficiary of the equity market’s year end optimism was the financials sector, led by bank stocks, which gained over 30% during the fourth quarter. Rising interest rates coupled with the prospect of lower corporate tax rates and a reduced regulatory burden could all benefit bank profitability, which drove valuation multiples higher for the group.

TOP INDIVIDUAL CONTRIBUTORS

Top contributors to the Fund’s performance this period included Assured Guaranty Ltd., Chevron Corp. and Navistar International Corp.

Assured Guaranty (AGO) is a leading Municipal Bond Insurer. AGO performed well during the reporting period as optimism surrounding a favorable solution to Puerto Rico’s debt problems increased following the results of the U.S. Presidential election as well the election of a new Governor in Puerto Rico. Both of these results should be favorable to creditors. Additionally, AGO continued to consolidate the Structure Finance market with an acquisition of MBIA, Inc’s U.K. structured finance subsidiary, which should be accretive.

Chevron benefited from the sharp bounce off the oil price lows seen in the first quarter of 2016. Furthermore, Chevron’s attractive yield and more focused capital spending plans were rewarded by the market.

Navistar International performed well due to steadily improving results in a challenging macro environment as well as an equity investment by Volkswagen. These two events/developments highlighted the earnings power of the company during the next up cycle and significantly de-risked the balance sheet. Following the recent strength in the name, we exited our position.

TOP INDIVIDUAL DETRACTORS

Detractors from performance this reporting period included Teva Pharmaceutical Industries Ltd., Allergan plc and Frontier Communications Corp.

Teva is a leading Generic Drug manufacturer. Teva has been a very disappointing investment during the second half of 2016. An expensive acquisition of Allergan’s generic business was poorly timed as the pricing environment has deteriorated for the generic industry. Furthermore, a delay in new product introductions has impacted recent results. Lastly, competition for its largest product appears likely (although not unexpected) over the next 12 months or so. While we are disappointed with the company’s execution, we maintained a position since at 7x-8x earnings per share (EPS), in our view, the stock is too cheap and our patience can be rewarded.

Allergan is a leading specialty Pharmaceuticals company. A failed merger with Pfizer in early 2016 set the tone for a dismal 2016 for the stock. Following the deal break up the stock continued to perform poorly due to overall industry pricing concerns, concerns about the prices Allergan was paying for acquisitions, and falling forward earnings guidance. We believe all of these issues are in the rearview mirror and we expect much better performance in 2017. A high percentage of cash pay business, solid balance sheet and above average earnings growth should hopefully lead to better stock performance.

Frontier is a high yielding local telephone company. Frontier acquired a large number of customers from Verizon in the spring of 2016. While this acquisition should ultimately generate significant synergies and cash flow, the integration has been challenging. Concerns about Frontier’s ability to continue to pay the

3 OPPENHEIMER EQUITY INCOME FUND/VA

dividend resulted in very poor performance during the second half of 2016. While we are concerned about the initial integration challenges, the current payout ratio is below 60%. We believe this gives Frontier time to stabilize the acquired properties. Once this happens, the stock should be revalued higher, in our view.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the Russell 1000 Value Index. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. The index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

4 OPPENHEIMER EQUITY INCOME FUND/VA

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER EQUITY INCOME FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares	$	1,000.00	$	1,149.00	$	4.33
Service shares		1,000.00		1,148.10		5.68

Hypothetical (5% return before expenses)
Non-Service shares		1,000.00		1,021.11		4.07
Service shares		1,000.00		1,019.86		5.35


Class	Expense Ratios
Non-Service shares		0.80%
Service shares		1.05

6 OPPENHEIMER EQUITY INCOME FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—90.6%

Consumer Discretionary—7.8%

Automobiles—1.8%

Ford Motor Co.		8,560	$	103,833

General Motors Co.		1,250		43,550

				147,383

Hotels, Restaurants & Leisure—1.0%

Extended Stay America, Inc.		5,175		83,576

Household Durables—1.9%

CalAtlantic Group, Inc.		3,360		114,274

PulteGroup, Inc.		1,925		35,381

				149,655

Media—1.1%

Comcast Corp., Cl. A		495		34,180

Time Warner, Inc.		570		55,022

				89,202

Multiline Retail—1.2%

Kohl’s Corp.		750		37,035

Macy’s, Inc.		1,735		62,130

				99,165

Specialty Retail—0.8%

Signet Jewelers Ltd.		320		30,163

Staples, Inc.		3,675		33,259

				63,422

Consumer Staples—7.6%

Beverages—1.1%

Coca-Cola Co. (The)		1,210		50,167

Molson Coors Brewing Co., Cl. B		425		41,357

				91,524

Food & Staples Retailing—2.3%

CVS Health Corp.		195		15,387

Walgreens Boots Alliance, Inc.		1,330		110,071

Wal-Mart Stores, Inc.		890		61,517

				186,975

Food Products—2.4%

Kraft Heinz Co. (The)		1,250		109,150

Post Holdings, Inc.¹		1,000		80,390

				189,540

Household Products—0.7%

Procter & Gamble Co. (The)		640		53,811

Tobacco—1.1%

Philip Morris International, Inc.		915		83,713

Reynolds American, Inc.		115		6,445

				90,158

Energy—10.6%

Oil, Gas & Consumable Fuels—10.6%

BP plc, Sponsored ADR		3,255		121,672

Chevron Corp.²		1,825		214,803

Exxon Mobil Corp.		1,500		135,390

Kinder Morgan, Inc.		2,875		59,541

Marathon Oil Corp.		5,675		98,234

Royal Dutch Shell plc, Cl. A, Sponsored ADR		3,600		195,768

Williams Cos., Inc. (The)		1,050		32,697

				858,105

Financials—31.0%

Capital Markets—5.5%

Goldman Sachs Group, Inc. (The)		550		131,698

KKR & Co. LP³		7,950		122,350

Morgan Stanley		3,775		159,494

NorthStar Asset Management Group, Inc.		1,800		26,856

				440,398


	Shares		Value

Commercial Banks—12.0%

Bank of America Corp.		3,000	$	66,300

Citigroup, Inc.²		7,500		445,725

JPMorgan Chase & Co.²		2,750		237,297

Wells Fargo & Co.		4,050		223,196

				972,518

Insurance—5.7%

American International Group, Inc.		1,955		127,681

Assured Guaranty Ltd.		6,650		251,171

MetLife, Inc.		1,460		78,679

				457,531

Real Estate Investment Trusts (REITs)—5.0%

Blackstone Mortgage Trust, Inc., Cl. A		1,900		57,133

Colony Capital, Inc., Cl. A		5,525		111,881

Communications Sales & Leasing, Inc.		2,850		72,419

NorthStar Realty Finance Corp.		2,825		42,799

Starwood Property Trust, Inc.		3,100		68,045

Two Harbors Investment Corp.		5,625		49,050

				401,327

Real Estate Management & Development—0.6%

Realogy Holdings Corp.		1,925		49,530

Thrifts & Mortgage Finance—2.2%

MGIC Investment Corp.¹		8,775		89,417

Radian Group, Inc.		5,150		92,597

				182,014

Health Care—9.3%

Biotechnology—2.1%

AbbVie, Inc.		1,355		84,850

Gilead Sciences, Inc.		1,150		82,352

				167,202

Health Care Equipment & Supplies—2.1%

Abbott Laboratories		2,650		101,786

Medtronic plc		1,000		71,230

				173,016

Pharmaceuticals—5.1%

Johnson & Johnson		600		69,126

Merck & Co., Inc.		2,590		152,473

Pfizer, Inc.		5,845		189,846

				411,445

Industrials—5.3%

Aerospace & Defense—1.2%

General Dynamics Corp.		250		43,165

United Technologies Corp.		455		49,877

				93,042

Airlines—1.1%

United Continental Holdings, Inc.¹		1,250		91,100

Commercial Services & Supplies—0.2%
					��
RR Donnelley & Sons Co.		1,000		16,320

Electrical Equipment—0.9%

Eaton Corp. plc		685		45,956

General Cable Corp.		1,200		22,860

				68,816

Industrial Conglomerates—1.8%

General Electric Co.		4,550		143,780

Honeywell International, Inc.		40		4,634

				148,414

Road & Rail—0.1%

CSX Corp.		275		9,881

Information Technology—10.7%

Communications Equipment—1.5%

Cisco Systems, Inc.		4,075		123,146

7 OPPENHEIMER EQUITY INCOME FUND/VA

STATEMENT OF INVESTMENTS Continued


	Shares		Value

Internet Software & Services—0.5%

Alphabet, Inc., Cl. C¹		50	$	38,591

IT Services—0.7%

International Business Machines Corp.		320		53,117

Semiconductors & Semiconductor Equipment—2.5%

Intel Corp.		1,880		68,188

Micron Technology, Inc.¹		3,075		67,404

QUALCOMM, Inc.		1,000		65,200

				200,792

Software—2.6%

Microsoft Corp.		1,900		118,066

Oracle Corp.		2,300		88,435

				206,501

Technology Hardware, Storage & Peripherals—2.9%

Apple, Inc.		1,875		217,162

HP, Inc.		1,350		20,034

				237,196

Materials—1.8%

Chemicals—0.9%

Dow Chemical Co. (The)		655		37,479

LyondellBasell Industries NV, Cl. A		425		36,457

				73,936

Containers & Packaging—0.5%

International Paper Co.		750		39,795

Paper & Forest Products—0.4%

Domtar Corp.		770		30,053

Telecommunication Services—3.4%

Diversified Telecommunication Services—3.4%

AT&T, Inc.		5,200		221,156

CenturyLink, Inc.		470		11,176

Frontier Communications Corp.		5,500		18,590

Level 3 Communications, Inc.¹		460		25,926

				276,848

Utilities—3.1%

Electric Utilities—2.4%

American Electric Power Co., Inc.		1,475		92,866

Exelon Corp.		580		20,584

PPL Corp.		2,350		80,018

				193,468


	Shares		Value

Independent Power and Renewable Electricity Producers—0.7%

NRG Energy, Inc.		4,400	$	53,944

Total Common Stocks (Cost $6,079,761)				7,312,457

Preferred Stocks—7.7%

Allergan plc, 5.50% Cv., Series A		209		159,354

Dominion Resources, Inc., 6.375% Cv.		495		24,780

Exelon Corp., 6.50% Cv.		1,435		69,468

Frontier Communications Corp., 11.125% Cv., Series A, Non-Vtg.		1,910		135,763

iStar, Inc., 4.50% Cv., Non-Vtg.		2,345		122,526

Teva Pharmaceutical Industries Ltd., 7% Cv., Non-Vtg.		173		111,585

Total Preferred Stocks (Cost $768,254)				623,476

	Principal Amount

Non-Convertible Corporate Bond and Note—0.0%

Frontier Communications Corp., 11% Sr. Unsec. Nts., 9/15/25 (Cost $995)	$	1,000		1,036

Convertible Corporate Bonds and Notes—0.6%

MGIC Investment Corp., 9% Cv. Jr. Sub. Nts., 4/1/63⁴		30,000		37,688

Micron Technology, Inc., 3% Cv. Sr. Unsec. Nts., 11/15/43		10,000		9,981

Total Convertible Corporate Bonds and Notes (Cost $42,781)				47,669

	Shares

Structured Securities—1.2%

Barclays Bank plc, Alcoa, Inc. Equity Linked Nts., 10/4/17		450		12,599

Barclays Bank plc, Alphabet, Inc., Cl. C Yield Enhanced Equity Debt Securities, 3/20/17		24		18,574

Citigroup Global Markets Holdings, Inc., Alphabet, Inc. Equity Linked Nts., 3/2/17⁴		26		20,007

Credit Suisse AG (London Branch), Alphabet, Inc. Equity Linked Nts., 2/23/17⁴		26		20,037

Credit Suisse AG (London Branch), Alphabet, Inc. Equity Linked Nts., 3/3/17⁴		33		25,436

Total Structured Securities (Cost $100,615)				96,653


		Exercise Price		Expiration Date			Contracts

Exchange-Traded Options Purchased—0.0%

Abbott Laboratories Put¹	USD		36.000		1/20/17	USD		5		110

General Motors Co. Put¹	USD		32.000		1/20/17	USD		10		180

NRG Energy, Inc. Put¹	USD		10.000		1/20/17	USD		10		50

Total Exchange-Traded Options Purchased (Cost $521)										340

Total Investments, at Value (Cost $6,992,927)								100.1%		8,081,631

Net Other Assets (Liabilities)								(0.1)		(10,946)

Net Assets								100.0%	$	8,070,685

Footnotes to Statement of Investments

1. Non-income producing security.

2. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements with respect to outstanding written options. The aggregate market value of such securities is $486,276. See Note 6 of the accompanying Notes.

3. Security is a Master Limited Partnership.

4. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $103,168 or 1.28% of the Fund’s net assets at period end.

8 OPPENHEIMER EQUITY INCOME FUND/VA


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		60,375		1,654,426		1,714,801		—

							Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a							$	206

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.



Exchange-Traded Options Written at December 31, 2016
Description		Exercise Price		Expiration Date		Number of Contracts			Premiums Received		Value

Abbott Laboratories Put	USD		38.000		1/20/17		USD	(10)	$	820	$	(690)

Assured Guaranty Ltd. Call	USD		39.000		1/20/17		USD	(1)		58		(29)

Assured Guaranty Ltd. Call	USD		38.000		1/20/17		USD	(3)		250		(195)

Citigroup, Inc. Call	USD		60.000		1/20/17		USD	(2)		382		(262)

Ford Motor Co. Call	USD		12.750		1/20/17		USD	(10)		350		(70)

Ford Motor Co. Call	USD		13.000		1/20/17		USD	(20)		879		(80)

General Motors Co. Put	USD		35.000		1/20/17		USD	(10)		579		(970)

International Paper Co. Call	USD		55.000		1/20/17		USD	(2)		163		(68)

Kroger Co. (The) Put	USD		35.000		1/20/17		USD	(5)		372		(500)

Marathon Oil Corp. Call	USD		17.000		1/20/17		USD	(5)		790		(420)

Micron Technology, Inc. Put	USD		20.000		1/20/17		USD	(1)		83		(19)

Microsoft Corp. Call	USD		64.000		1/20/17		USD	(1)		69		(30)

Morgan Stanley Call	USD		42.000		1/20/17		USD	(5)		1,050		(645)

NRG Energy, Inc. Put	USD		12.000		1/20/17		USD	(10)		724		(350)

Signet Jewelers Ltd. Call	USD		95.000		1/20/17		USD	(3)		1,540		(990)

Walgreens Boots Alliance, Inc. Call	USD		85.000		1/20/17		USD	(1)		352		(130)

Total of Exchange-Traded Options Written									$	8,461	$	(5,448)

See accompanying Notes to Financial Statements.

9 OPPENHEIMER EQUITY INCOME FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value unaffiliated companies (cost $6,992,927)—see accompanying statement of investments	$	8,081,631

Cash		26,264

Receivables and other assets:
Investments sold		24,349
Interest and dividends		15,042
Shares of beneficial interest sold		201
Other		15,326

Total assets		8,162,813

Liabilities
Options written, at value (premiums received $8,461)		5,448

Payables and other liabilities:
Investments purchased		30,417
Legal, auditing and other professional fees		27,697
Trustees’ compensation		11,853
Shareholder communications		8,866
Shares of beneficial interest redeemed		5,464
Distribution and service plan fees		1,660
Other		723

Total liabilities		92,128

Net Assets	$	8,070,685



Composition of Net Assets
Par value of shares of beneficial interest	$	634

Additional paid-in capital		7,211,641

Accumulated net investment income		94,746

Accumulated net realized loss on investments		(328,053)

Net unrealized appreciation on investments		1,091,717

Net Assets	$	8,070,685



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $412,395 and 39,301 shares of beneficial interest outstanding)		$10.49

Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $7,658,290 and 595,173 shares of beneficial interest outstanding)		$12.87

See accompanying Notes to Financial Statements.

10 OPPENHEIMER EQUITY INCOME FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $3,496)	$	272,149
Affiliated companies		206

Interest		14,024

Total investment income		286,379

Expenses
Management fees		59,448

Distribution and service plan fees - Service shares		18,936

Transfer and shareholder servicing agent fees:
Non-Service shares		346
Service shares		7,580

Shareholder communications:
Non-Service shares		1,958
Service shares		38,869

Legal, auditing and other professional fees		66,853

Trustees’ compensation		9,060

Custodian fees and expenses		2,109

Borrowing fees		151

Other		5,853

Total expenses		211,163
Less reduction to custodian expenses		(1)
Less waivers and reimbursements of expenses		(128,541)

Net expenses		82,621

Net Investment Income		203,758

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies (including premiums on options exercised)		5,277
Closing and expiration of option contracts written		40,242
Short positions		(149)

Net realized gain		45,370

Net change in unrealized appreciation/depreciation on:
Investment transactions		844,001
Option contracts written		(1,849)

Net change in unrealized appreciation/depreciation		842,152

Net Increase in Net Assets Resulting from Operations	$	1,091,280

See accompanying Notes to Financial Statements.

11 OPPENHEIMER EQUITY INCOME FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income	$	203,758	$	257,353

Net realized gain (loss)		45,370		(151,710)

Net change in unrealized appreciation/depreciation		842,152		(1,094,652)

Net increase (decrease) in net assets resulting from operations		1,091,280		(989,009)

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(21,464)		(10,233)
Service shares		(396,306)		(287,911)

		(417,770)		(298,144)

Distributions from net realized gain:
Non-Service shares		—		(25,987)
Service shares		—		(746,892)

		—		(772,879)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		54,821		91,789
Service shares		(1,177,501)		(1,019,497)

		(1,122,680)		(927,708)

Net Assets
Total decrease		(449,170)		(2,987,740)

Beginning of period		8,519,855		11,507,595

End of period (including accumulated net investment income of $94,746 and $226,680, respectively)	$	8,070,685	$	8,519,855

See accompanying Notes to Financial Statements.

12 OPPENHEIMER EQUITY INCOME FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$9.72		$12.09		$11.64		$9.15		$8.00

Income (loss) from investment operations:
Net investment income¹		0.26		0.29		0.25		0.21		0.16
Net realized and unrealized gain (loss)		1.13		(1.28)		1.01		2.42		1.11

Total from investment operations		1.39		(0.99)		1.26		2.63		1.27

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.62)		(0.39)		(0.22)		(0.14)		(0.12)
Distributions from net realized gain		0.00		(0.99)		(0.59)		0.00		0.00

Total dividends and/or distributions to shareholders		(0.62)		(1.38)		(0.81)		(0.14)		(0.12)

Net asset value, end of period		$10.49		$9.72		$12.09		$11.64		$9.15



Total Return, at Net Asset Value²		15.31%		(9.58)%		11.08%		28.93%		16.08%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$413		$325		$302		$227		$154

Average net assets (in thousands)		$346		$318		$266		$195		$132

Ratios to average net assets:³
Net investment income		2.75%		2.64%		2.08%		2.00%		1.82%
Expenses excluding specific expenses listed below		2.48%		1.52%		1.42%		1.64%		1.75%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%

Total expenses⁵		2.48%		1.52%		1.42%		1.64%		1.75%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.80%		0.80%		0.80%		0.80%		0.80%

Portfolio turnover rate		49%		44%		40%		159%		87%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	2.48	%
Year Ended December 31, 2015	1.52	%
Year Ended December 31, 2014	1.42	%
Year Ended December 31, 2013	1.64	%
Year Ended December 31, 2012	1.75	%

See accompanying Notes to Financial Statements.

13 OPPENHEIMER EQUITY INCOME FUND/VA

FINANCIAL HIGHLIGHTS Continued


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$11.81		$14.43		$13.78		$10.83		$9.69

Income (loss) from investment operations:
Net investment income¹		0.30		0.33		0.26		0.22		0.13
Net realized and unrealized gain (loss)		1.39		(1.58)		1.19		2.87		1.13

Total from investment operations		1.69		(1.25)		1.45		3.09		1.26

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.63)		(0.38)		(0.21)		(0.14)		(0.12)
Distributions from net realized gain		0.00		(0.99)		(0.59)		0.00		0.00

Total dividends and/or distributions to shareholders		(0.63)		(1.37)		(0.80)		(0.14)		(0.12)

Net asset value, end of period		$12.87		$11.81		$14.43		$13.78		$10.83



Total Return, at Net Asset Value²		15.13%		(9.82)%		10.73%		28.70%		13.09%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,658		$8,195		$11,206		$10,862		$6,897

Average net assets (in thousands)		$7,576		$10,265		$11,020		$8,549		$7,095

Ratios to average net assets:³
Net investment income		2.56%		2.43%		1.82%		1.78%		1.26%
Expenses excluding specific expenses listed below		2.67%		1.76%		1.67%		1.89%		1.93%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%		0.00%

Total expenses⁵		2.67%		1.76%		1.67%		1.89%		1.93%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.05%		1.05%		1.05%		1.05%		1.04%

Portfolio turnover rate		49%		44%		40%		159%		87%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	2.67	%
Year Ended December 31, 2015	1.76	%
Year Ended December 31, 2014	1.67	%
Year Ended December 31, 2013	1.89	%
Year Ended December 31, 2012	1.93	%

See accompanying Notes to Financial Statements.

14 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Equity Income Fund/VA (the “Fund”), a separate series of Oppenheimer Variable Account Funds, is a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek total return. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

15 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$110,075		$—		$206,795		$966,981

1. At period end, the Fund had $206,795 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

No expiration	$	206,795

2. During the reporting period, the Fund did not utilize any capital loss carryforward.

3. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Accumulated Net Investment Income		Increase to Accumulated Net Realized Loss on Investments

$82,078		$82,078

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	417,770	$	636,899
Long-term capital gain		—		434,124

Total	$	417,770	$	1,071,023


Federal tax cost of securities		$ 7,117,663
Federal tax cost of other investments		(8,461)

Total federal tax cost		$ 7,109,202

Gross unrealized appreciation		$ 1,264,912
Gross unrealized depreciation		(297,931)

Net unrealized appreciation		$ 966,981

3. Securities Valuation

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation

16 OPPENHEIMER EQUITY INCOME FUND/VA

3. Securities Valuation (Continued)

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors

Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.

Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

17 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	632,403	$	—	$	—	$ 632,403
Consumer Staples		612,008		—		—	612,008
Energy		858,105		—		—	858,105
Financials		2,503,318		—		—	2,503,318
Health Care		751,663		—		—	751,663
Industrials		427,573		—		—	427,573
Information Technology		859,343		—		—	859,343
Materials		143,784		—		—	143,784
Telecommunication Services		276,848		—		—	276,848
Utilities		247,412		—		—	247,412
Preferred Stocks		500,950		122,526		—	623,476
Non-Convertible Corporate Bond and Note		—		1,036		—	1,036
Convertible Corporate Bonds and Notes		—		47,669		—	47,669
Structured Securities		—		96,653		—	96,653
Exchange-Traded Options Purchased		340		—		—	340

Total Assets	$	7,813,747	$	267,884	$	—	$ 8,081,631


Liabilities Table
Other Financial Instruments:
Options written, at value	$	(5,448)	$	—	$	—	$ (5,448)

Total Liabilities	$	(5,448)	$	—	$	—	$ (5,448)

4. Investments and Risks

18 OPPENHEIMER EQUITY INCOME FUND/VA

4. Investments and Risks (Continued)

Money Market Fund (“IGMMF”), formerly known as Oppenheimer Institutional Money Market Fund, which is an Affiliated Fund. IGMMF is regulated as a money market fund under the 1940 Act, as amended. The Fund may also invest in money market instruments directly or in other affiliated or unaffiliated money market funds. At period end, the Fund had no holdings in IGMMF.

Structured Securities. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note’s market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures.

Shareholder Concentration. At period end, two shareholders each owned 20% or more of the Fund’s total outstanding shares.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Use of Derivatives

19 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

a clearinghouse.

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Option Activity

The Fund has purchased put options on individual equity securities and/or equity indexes to decrease exposure to equity risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $111 on purchased put options.

The Fund has written put options on individual equity securities and/or equity indexes to increase exposure to equity risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $6,279 and $867 on written call options and written put options, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Written option activity for the reporting period was as follows:


	Number of		Amount of
	Contracts		Premiums

Options outstanding as of December 31, 2015		49	$	9,487
Options written		1,095		94,722
Options closed or expired		(548)		(40,242)
Options exercised		(507)		(55,506)

Options outstanding as of December 31, 2016		89	$	8,461

20 OPPENHEIMER EQUITY INCOME FUND/VA

6. Use of Derivatives (Continued)

The following table presents the valuations of derivative instruments by risk exposure as reported within the Statement of Assets and Liabilities at period end:

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Statement of Assets
and Liabilities Location

Value

Statement of Assets
and Liabilities Location

Value

Equity contracts

Investments, at value

340*

Options written, at value

5,448

*Amounts relate to purchased option contracts and purchased swaption contracts, if any.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investment from unaffiliated companies (including premiums on options exercised)*		Closing and expiration of option contracts written		Total

Equity contracts	$	6,335	$	40,242	$	46,577

*Includes purchased option contracts and purchased swaption contracts, if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments*		Option contracts written		Total

Equity contracts	$	1,072	$	(1,849)	$	(777)

*Includes purchased option contracts and purchased swaption contracts, if any.

7. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest

21 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

7. Shares of Beneficial Interest (Continued)

were as follows:


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount

Non-Service Shares
Sold		7,879		$	75,176			6,593		$	71,817
Dividends and/or distributions reinvested		2,351			21,464			3,275			36,220
Redeemed		(4,349	)		(41,819	)		(1,387	)		(16,248)

Net increase		5,881		$	54,821			8,481		$	91,789



Service Shares
Sold		17,226		$	196,973			73,064		$	1,015,107
Dividends and/or distributions reinvested		35,353			396,306			76,880			1,034,803
Redeemed		(151,342	)		(1,770,780	)		(232,573	)		(3,069,407)

Net decrease		(98,763	)	$	(1,177,501	)		(82,629	)	$	(1,019,497)

8. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities	$	3,862,606	$	5,081,436

9. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $200 million		0.75%
Next $200 million		0.72
Next $200 million		0.69
Next $200 million		0.66
Over $800 million		0.60

The Fund’s effective management fee for the reporting period was 0.75% of average annual net assets before any applicable waivers.

22 OPPENHEIMER EQUITY INCOME FUND/VA

9. Fees and Other Transactions with Affiliates (Continued)

account maintenance for the Fund’s Service shares. Under the Plan, payments are made periodically at an annual rate of 0.25% of the daily net assets of Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service shares and 1.05% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $5,819 and $122,672 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

10. Borrowings and Other Financing

Securities Sold Short. The Fund sells securities that it does not own, and it will therefore be obligated to purchase such securities at a future date. Upon entering into a short position, the Fund is required to segregate cash or securities at its custodian which are pledged for the benefit of the lending broker and/or to deposit and pledge cash directly at the lending broker, with a value equal to a certain percentage, exceeding 100%, of the value of the securities that it sold short. Cash that has been segregated and pledged for this purpose will be disclosed on the Statement of Assets and Liabilities; securities that have been segregated and pledged for this purpose are disclosed as such in the Statement of Investments. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the change in value of the open short position. The Fund records a realized gain or loss when the short position is closed out. By entering into short sales, the Fund bears the market risk of increases in value of the security sold short in excess of the proceeds received. Until the security is replaced, the Fund is required to pay the lender any dividend or interest earned. Dividend expense on short sales is treated as an expense in the Statement of Operations.

At period end, the Fund had no outstanding securities sold short.

11. Pending Agreement and Plan of Reorganization

The Board of Trustees of the Fund has determined that it is in the best interests of the Fund that the Fund reorganize with and into Oppenheimer Main Street Fund/VA (“Main Street Fund/VA”) and that the interests of the Fund’s existing shareholders would not be diluted as a result of the reorganization. The Board unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) to be entered into between the Fund and Main Street Fund/VA, pursuant to which Main Street Fund/VA will acquire substantially all of the assets and assume certain liabilities of the Fund in exchange for newly-issued shares of Main Street Fund/VA (the “Reorganization”). If the Reorganization takes place, shareholders of the Fund will receive corresponding shares of Main Street Fund/VA, in each case equal in value to the value of the net assets of the shares of the Fund held immediately prior to the Reorganization. The shares of Main Street Fund/VA to be received by shareholders of the Fund will be issued at net asset value and without a sales charge. The Reorganization is expected to be a tax-free reorganization for U.S. federal income tax purposes. Following the Reorganization, the Fund will liquidate and dissolve and terminate its registration as an investment company under the Investment Company Act of 1940.

The Reorganization is conditioned upon, among other things, approval by the Fund’s shareholders. If approved by the shareholders and certain conditions required by the Agreement are satisfied, the Reorganization of the Fund is expected to take place on or about April 28, 2017.

12. Pending Litigation

OFI and OFDI believe the suit is without merit; that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them in

23 OPPENHEIMER EQUITY INCOME FUND/VA

NOTES TO FINANCIAL STATEMENTS Continued

12. Pending Litigation (Continued)

the suit; and that no estimate can yet be made as to the amount or range of any potential loss. Furthermore, OFI believes that the suit should not impair the ability of OFI or OFDI to perform their respective duties to the Fund and that the outcome of the suit should not have any material effect on the operations of any of the Oppenheimer funds.

24 OPPENHEIMER EQUITY INCOME FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Equity Income Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 December 31, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Equity Income Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

As discussed in Note 11 to the financial statements, Pending Agreement and Plan of Reorganization, at a meeting held February 10, 2017, the Board voted to approve the merger of Oppenheimer Equity Income Fund/VA into Oppenheimer Main Street Fund/VA effective on or about April 28, 2017, subject to approval by the acquired Fund’s shareholders.

KPMG LLP

Denver, Colorado

February 15, 2017

25 OPPENHEIMER EQUITY INCOME FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

26 OPPENHEIMER EQUITY INCOME FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ key personnel who provide such services. The Managers’ duties include providing the Fund with the services of the portfolio manager and the Sub-Adviser’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; and securities trading services. OFI Global is responsible for oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; risk management; and oversight of the Sub-Adviser. OFI Global is also responsible for providing certain administrative services to the Fund. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the U.S. Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by federal and state securities laws for the sale of the Fund’s shares. OFI Global also provides the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Michael Levine, the portfolio manager for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Investment Performance of the Managers and the Fund. Throughout the year, the Managers provided information on the investment performance of the Fund, the Adviser and the Sub-Adviser, including comparative performance information. The Board also reviewed information, prepared by the Managers and by the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other large value funds underlying variable insurance products. The Board considered that the Fund outperformed its performance category median during the ten-year period but underperformed its performance category median during the one-, three- and five-year periods. The Board noted that on April 30, 2013 the Fund changed its name from Oppenheimer Value Fund/VA to Oppenheimer Equity Income Fund/VA, and changed its investment strategy and, that on that same date, Michael Levine took over as sole portfolio manager of the Fund. Accordingly, the Board noted that performance prior to April 30, 2013 is reflective of a different investment strategy and different portfolio managers. The Board also considered the Adviser’s assertion that the vast majority of the Fund’s 3-year underperformance was concentrated in the second half of 2015 and that excluding that period, Mr. Levine’s performance record since becoming sole portfolio manager of the Fund has been better, with monthly performance in the top half of the Morningstar category 58% of the time. The Board also considered that the Adviser is implementing certain changes to the Fund’s investment process, which, it noted, deserve time to be evaluated.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other large value funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were higher than both its peer group median and its category median. The Board also considered that the Fund’s contractual management fee was higher than both its peer group median and its category median. The Board further noted that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 0.80% for Non-Service Shares and 1.05% for Service Shares. This contractual expense limitation may not be amended or withdrawn until one year after the date of the Fund’s prospectus, unless approved by the Board.

27 OPPENHEIMER EQUITY INCOME FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

28 OPPENHEIMER EQUITY INCOME FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

29 OPPENHEIMER EQUITY INCOME FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

30 OPPENHEIMER EQUITY INCOME FUND/VA



F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Levine, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Michael S. Levine, Vice President (since 2013) Year of Birth: 1965		Vice President of the Sub-Adviser (since June 1998) and Senior Portfolio Manager of the Sub-Adviser (since September 2000). A portfolio manager and an officer of other portfolios in the OppenheimerFunds complex.

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

31 OPPENHEIMER EQUITY INCOME FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued



Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

32 OPPENHEIMER EQUITY INCOME FUND/VA

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35 OPPENHEIMER EQUITY INCOME FUND/VA

OPPENHEIMER EQUITY INCOME FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc. DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing. © 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO

PORTFOLIO MANAGERS: Mark Hamilton; Benjamin Rockmuller, CFA; Dokyoung Lee, CFA; and Alessio de Longis, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year			Since Inception
Non-Service Shares		11/14/13		3.71	%		1.70	%
Service Shares		11/14/13		3.49			1.51
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index				0.33			0.14

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


Alphabet, Inc., Cl. A		0.8%
Honeywell International, Inc.		0.8
M&T Bank Corp.		0.7
Chubb Ltd.		0.7
UnitedHealth Group, Inc.		0.6
Republic Services, Inc., Cl. A		0.6
Apple, Inc.		0.6
Xilinx, Inc.		0.6
General Electric Co.		0.6
Lockheed Martin Corp.		0.5

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.


PORTFOLIO ALLOCATION
Common Stocks			31.0%
Short-Term Notes			18.6
Investment Companies
Highland/iBoxx Senior Loan Exchange Traded Fund			0.5
iShares US Preferred Stock Exchange Traded Fund			—^*
Oppenheimer Institutional Government Money Market Fund			14.7
SPDR Gold Trust Exchange Traded Fund			1.0
Event-Linked Bonds
Multiple Event			6.8
Windstorm			3.7
Earthquake			3.2
Other			0.6
Longevity			0.1
Non-Convertible Corporate Bonds and Notes			8.8
Asset-Backed Securities			4.1
Corporate Loans			3.3
Foreign Government Obligations			2.0
Over-the-Counter Options Purchased			0.5
Mortgage-Backed Obligations Non-Agency			0.5
Preferred Stocks			0.3
Convertible Corporate Bonds and Notes			0.2
Over-the-Counter Interest Rate Swaptions Purchased			0.1
Exchange-Traded Options Purchased			—^*
Rights, Warrants and Certificates			—^*
*Represents a value of less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of investments.

2 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

Fund Performance Discussion

The Fund’s Non-Service shares returned 3.71% during the reporting period. On a relative basis, the Fund outperformed the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index (the “Index”), which returned 0.33% during the same period. In what was a volatile reporting period for global capital markets, most alternative asset classes in which the Fund invests outperformed the performance of short-term U.S. Government securities, resulting in the Fund’s relative outperformance versus the Index.

FUND REVIEW

The Fund’s strongest performing exposure was to income alternatives, particularly master limited partnerships (“MLPs”) and loans. Our MLP strategy seeks to invest in U.S. midstream MLPs that the investment team believes have attractive risk and reward characteristics. After experiencing declines over the first half of the reporting period, MLPs rallied strongly over the second half. The supply-demand picture for both crude oil and natural gas improved during the reporting period. Credit assets like bank loans also did very well as spreads declined throughout the period. Also performing positively for the Fund among income alternatives was our exposure to event-linked bonds, which transfer a specified set of catastrophe risks such as hurricanes, earthquakes and windstorms from a sponsor to investors. Event-linked bonds performed well during the reporting period in the absence of catastrophe related events.

Our exposure to Alpha alternatives contributed positively to performance overall. Our positive results were driven by the Fundamental Alpha and Global Multi Strategies. The Currency Alpha Strategy, which is a total return strategy focusing on fundamental and systematic dislocations across currency markets, detracted from performance during the reporting period. The strategy can be long and/or short currencies against the U.S. dollar. It has a go-anywhere mandate across currencies and seeks opportunities regardless of dollar bull or bear market cycles. During the reporting period, the Currency Alpha Strategy had a bias to higher yielding emerging currencies versus the lower yielding developed currencies. This positioning hurt after the U.S. election as we saw a reversal of the carry trade and many emerging currencies selling off.

Detractors from performance this reporting period included the Fund’s exposure to Global Real Estate through real estate investment trusts (REITs). After healthy year-to-date returns through the third quarter of 2016, global-listed securities declined sharply in the fourth quarter, as REITs were negatively impacted by rising interest rates around the world. Although we reduced our position, we continue to see value in real estate assets based on attractive spreads versus the government bond yields and continued strong demand. Moreover, attractive valuations in Europe in conjunction with additional quantitative easing measures should provide additional support. The Fund’s risk management overlay was also a detractor from performance. In particular, we reduced our equity market exposure through shorting European futures, and this was a drag as equity markets moved higher. Given appropriate market conditions, the Fund periodically utilizes risk management overlays in an attempt to control and manage volatility, hedge unwanted risks, and maximize risk-adjusted returns.

STRATEGY & OUTLOOK

The Fund comprises a flexible blend of alternative strategies and assets and is designed to be a turnkey alternative solution that improves the risk/reward tradeoff of a traditional balanced portfolio. We classify alternatives into three categories: Alpha alternatives, income alternatives and real alpha alternatives. Alpha alternatives, such as Global Multi Strategies, Fundamental Alpha Strategies, and the Currency Alpha Strategy, rely less on the direction of major markets and economic factors to generate returns. Income alternatives (e.g. MLPs, loans, and event-linked bonds) provide exposure to relatively stable income producing assets with less interest rate sensitivity than traditional fixed income allocations. Real asset alternatives, like Global Real Estate and Commodities, could help guard against inflation over the long-term. We combine these strategies and assets to provide a core, alternative exposure that can potentially offset some of the risk from equity drawdowns, rising interest rates and inflationary shocks.

As we look ahead, most developed markets reached the peak of the cycle over the past couple of years and have spent the last few quarters in a “slowdown” regime, an environment in which growth is above trend and decelerating, though experiencing frequent short-lived re-accelerations (i.e. renewed “expansions”). In our opinion, the first half of 2017 will be characterized by another one of these mini-expansions that are generally accompanied by outperformance of equities and credit over government bonds.

However, we recognize that 2017 may bring some unique challenges. For example, enacting fiscal stimulus when the economy is near full employment would be highly unusual. Such a move would likely push the Fed to hike rates more aggressively, in turn generating volatility and a more challenging investment environment overall. In such an environment, further diversifying in alternatives can improve the risk/reward profile for investors. Thus we believe that diversifying risk, controlling volatility and managing the downside will be a winning strategy going forward. Because the Fund comprises a number of different alternative

3 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

assets and strategies, with diversifying properties as well as the potential to generate attractive total returns, we believe it can play a particularly valuable role in investors’ portfolios.

The Fund’s investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2016. Performance is measured from the inception of both Classes on November 14, 2013. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares.

The Fund’s performance is compared to the performance of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index. The Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is an index of short-term U.S. Government securities with a remaining term to final maturity of less than three months. The index is unmanaged, includes the reinvestment of dividends and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the indices. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

4 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

LOGO

5 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016			Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares		$	1,000.00		$ 1,002.40		$ 7.48
Service shares			1,000.00		1,002.70		8.70

Hypothetical
(5% return before expenses)
Non-Service shares			1,000.00		1,017.70		7.53
Service shares			1,000.00		1,016.49		8.76


Class	Expense Ratios
Non-Service shares		1.48%
Service shares		1.72

6 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—30.1%

Consumer Discretionary—1.3%

Diversified Consumer Services—0.1%

Houghton Mifflin Harcourt Co.¹		8,508	$	92,312

LifeLock, Inc.¹		18,039		431,493

				523,805


Hotels, Restaurants & Leisure—0.3%

Brinker International, Inc.		17,815		882,377

Hilton Worldwide Holdings, Inc.		6,610		179,792

				1,062,169


Household Durables—0.2%

Harman International Industries, Inc.		3,820		424,631

Sekisui House SI Residential Investment Corp.		155		172,551

				597,182


Internet & Catalog Retail—0.1%

Blue Nile, Inc.		10,669		433,481


Media—0.4%

DISH Network Corp., Cl. A¹		17,463		1,011,631

Live Nation Entertainment, Inc.¹		13,800		367,080

				1,378,711


Multiline Retail—0.0%

Fred’s, Inc., Cl. A		4,968		92,206


Specialty Retail—0.2%

Ascena Retail Group, Inc.¹		33,040		204,518

Cabela’s, Inc.¹		6,119		358,267

CST Brands, Inc.		8,511		409,805

				972,590


Consumer Staples—1.2%

Beverages—0.2%

Coca-Cola Co. (The)		25,800		1,069,668


Food Products—0.1%

WhiteWave Foods Co. (The), Cl. A¹		7,314		406,658


Tobacco—0.9%

Altria Group, Inc.		32,102		2,170,737

Philip Morris International, Inc.		15,420		1,410,776

				3,581,513


Energy—7.3%

Energy Equipment & Services—0.3%

Halliburton Co.		11,041		597,208

Schlumberger Ltd.		6,359		533,838

Vantage Drilling International¹		447		46,264

				1,177,310


Oil, Gas & Consumable Fuels—7.0%

Arch Coal, Inc., Cl. A¹		139		10,849

Buckeye Partners LP²		14,390		952,042

Canadian Natural Resources Ltd.		14,945		476,294

Chevron Corp.		11,886		1,398,982

ConocoPhillips		22,344		1,120,328

Energy Transfer Equity LP²		87,985		1,698,990

Energy Transfer Partners LP²		44,716		1,601,280

Enterprise Products Partners LP²		60,120		1,625,645

EOG Resources, Inc.		8,076		816,484

EQT Midstream Partners LP²		8,395		643,729

Genesis Energy LP²		21,345		768,847

Halcon Resources Corp.¹		7,505		70,097

Magellan Midstream Partners LP²		21,715		1,642,305

MPLX LP²		37,187		1,287,414

Newfield Exploration Co.¹		13,541		548,410

Noble Energy, Inc.³		23,368		889,386

NuStar Energy LP²		3,420		170,316

NuStar GP Holdings LLC²		14,255		411,969

Occidental Petroleum Corp.		16,887		1,202,861

Pacific Ethanol, Inc.¹		7,742		73,549


	Shares		Value

Oil, Gas & Consumable Fuels (Continued)

Plains All American Pipeline LP²		20,030	$	646,769

Rice Midstream Partners LP^1,2,4,5		29,925		735,557

Rice Midstream Partners LP^2,5		800		19,664

SandRidge Energy, Inc.¹		1,128		26,564

Sunoco Logistics Partners LP²		58,775		1,411,776

Tallgrass Energy GP LP, Cl. A		45,777		1,226,824

Tallgrass Energy Partners LP²		4,600		218,270

Targa Resources Corp.³		22,912		1,284,676

TC PipeLines LP²		30,395		1,788,442

Tesoro Logistics LP²		9,445		479,900

TransMontaigne Partners LP²		6,045		267,612

Valero Energy Corp.		6,541		446,881

Western Gas Partners LP²		7,235		425,129

Westmoreland Coal Co.¹		6,660		117,682

Williams Cos., Inc. (The)		29,970		933,266

Williams Partners LP²		24,917		947,594

				28,386,383


Financials—5.8%

Capital Markets—0.2%

Goldman Sachs Group, Inc. (The)		4,212		1,008,563


Commercial Banks—0.9%

Atlantic Capital Bancshares, Inc.¹		246		4,674

JPMorgan Chase & Co.		4,660		402,111

M&T Bank Corp.³		17,515		2,739,872

Wells Fargo & Co.		7,790		429,307

				3,575,964


Insurance—1.3%

Allstate Corp. (The)		27,460		2,035,335

Chubb Ltd.		20,725		2,738,187

Endurance Specialty Holdings Ltd.		4,264		393,994

Enstar Group Ltd.¹		175		34,597

				5,202,113


Real Estate Investment Trusts (REITs)—2.8%

Acadia Realty Trust		5,200		169,936

Agree Realty Corp.		1,330		61,246

American Assets Trust, Inc.		13,015		560,686

American Campus Communities, Inc.		5,280		262,786

American Homes 4 Rent, Cl. A		4,880		102,382

Ascendas Real Estate Investment Trust		69,000		107,814

AvalonBay Communities, Inc.		1,050		186,007

Blackstone Mortgage Trust, Inc., Cl. A		41,355		1,243,545

Boston Properties, Inc.		2,200		276,716

Champion REIT		92,000		49,749

Charter Hall Retail REIT		34,200		104,334

Colony Starwood Homes		4,110		118,409

CyrusOne, Inc.		3,810		170,421

Derwent London plc		930		31,733

Dexus Property Group		31,300		217,871

Duke Realty Corp.		7,440		197,606

Equity One, Inc.		5,680		174,319

Eurocommercial Properties NV		1,802		69,376

Extra Space Storage, Inc.		3,650		281,926

First Industrial Realty Trust, Inc.		4,550		127,627

Fortune Real Estate Investment Trust		113,000		129,688

GEO Group, Inc. (The)		2,570		92,340

GLP J-Reit		146		168,173

Goodman Group		29,200		150,647

Great Portland Estates plc		6,060		49,837

Hammerson plc		10,180		71,725

Highwoods Properties, Inc.		2,120		108,141

Hudson Pacific Properties, Inc.		5,430		188,855

Invincible Investment Corp.		85		38,145

Japan Retail Fund Investment Corp.		79		160,003

Kilroy Realty Corp.		2,730		199,891

Klepierre		3,540		139,041

Land Securities Group plc		12,850		169,749

7 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


	Shares		Value

Real Estate Investment Trusts (REITs) (Continued)

Macerich Co. (The)		12,615	$	893,647

Mapletree Commercial Trust		46,000		44,248

Mapletree Industrial Trust		56,000		63,554

Mid-America Apartment Communities,
Inc.		3,112		304,727

Milestone Apartments Real Estate
Investment Trust		8,966		126,879

Orix JREIT, Inc.		32		50,501

Paramount Group, Inc.		7,730		123,603

Physicians Realty Trust		10,530		199,649

Prologis, Inc.		6,210		327,826

Ramco-Gershenson Properties Trust		4,620		76,600

Regency Centers Corp.		1,970		135,832

Simon Property Group, Inc.		2,100		373,107

Spirit Realty Capital, Inc.		14,560		158,122

Starwood Property Trust, Inc.		27,830		610,869

Stockland		56,200		185,576

STORE Capital Corp.		3,310		81,790

Tanger Factory Outlet Centers, Inc.		2,100		75,138

Taubman Centers, Inc.		1,260		93,152

Unibail-Rodamco SE		1,448		345,172

Vastned Retail NV		1,217		47,245

Ventas, Inc.		4,440		277,589

Vicinity Centres		44,600		96,475

Welltower, Inc.		3,960		265,043

Wereldhave NV		1,662		74,733

Westfield Corp.		15,607		105,924

				11,317,725


Real Estate Management & Development—0.4%

Cheung Kong Property Holdings Ltd.		18,000		109,155

China Resources Land Ltd.		52,000		117,242

Frasers Logistics & Industrial Trust¹		128,000		81,654

Henderson Land Development Co. Ltd.		25,100		132,501

Hongkong Land Holdings Ltd.		5,000		31,554

Hulic Co. Ltd.		10,600		94,023

Mitsubishi Estate Co. Ltd.		10,100		200,208

Mitsui Fudosan Co. Ltd.		10,000		230,754

Sun Hung Kai Properties Ltd.		6,000		75,121

Unite Group plc (The)		15,050		112,509

Vonovia SE		8,656		281,959

Wharf Holdings Ltd. (The)		15,000		98,573

				1,565,253


Thrifts & Mortgage Finance—0.2%

Astoria Financial Corp.		10,576		197,243

Essent Group Ltd.¹		1,227		39,718

EverBank Financial Corp.		21,078		409,967

				646,928


Health Care—3.4%

Biotechnology—0.3%

Chelsea Therapeutics, Inc.^1,6,7		10,531		—

Dyax Corp.^1,7		10,770		108

Immunomedics, Inc.¹		31,189		114,464

Shire plc, ADR		5,840		995,019

				1,109,591


Health Care Equipment & Supplies—0.4%

Medtronic plc		15,942		1,135,548

Vascular Solutions, Inc.¹		7,727		433,485

				1,569,033


Health Care Providers & Services—1.6%

Capital Senior Living Corp.¹		9,039		145,076

Cigna Corp.		7,410		988,420

Express Scripts Holding Co.¹		12,140		835,111

HCA Holdings, Inc.¹		12,205		903,414

Team Health Holdings, Inc.¹		14,878		646,449

UnitedHealth Group, Inc.³		16,215		2,595,049


	Shares		Value

Health Care Providers & Services (Continued)

Universal Health Services, Inc., Cl. B		3,225	$	343,075

				6,456,594


Pharmaceuticals—1.1%

Allergan plc^1,3		6,680		1,402,867

Ambit Biosciences Corp.^1,7		10,347		6,208

Bristol-Myers Squibb Co.		6,630		387,457

Durata Therapeutics^1,7		6,530		—

Merck & Co., Inc.		16,755		986,367

Novartis AG, Sponsored ADR		13,050		950,562

Roche Holding AG		4,211		959,490

Teva Pharmaceutical Industries Ltd.¹		10		—

				4,692,951


Industrials—4.3%

Aerospace & Defense—1.4%

Arconic, Inc.		6,794		125,961

L-3 Communications Holdings, Inc.		7,420		1,128,656

Lockheed Martin Corp.		8,715		2,178,227

Northrop Grumman Corp.		5,320		1,237,326

Raytheon Co.		6,130		870,460

				5,540,630


Airlines—0.2%

United Continental Holdings, Inc.¹		10,260		747,749


Building Products—0.0%

Griffon Corp.		333		8,725


Commercial Services & Supplies—1.1%

G&K Services, Inc., Cl. A		4,181		403,257

Johnson Controls International plc³		36,340		1,496,845

Republic Services, Inc., Cl. A³		41,520		2,368,716

				4,268,818


Construction & Engineering—0.0%

Great Lakes Dredge & Dock Corp.¹		18,935		79,527


Industrial Conglomerates—1.3%

General Electric Co.³		71,100		2,246,760

Honeywell International, Inc.³		26,420		3,060,757

				5,307,517


Machinery—0.2%

CLARCOR, Inc.		5,207		429,421

Joy Global, Inc.		14,601		408,828

				838,249


Road & Rail—0.1%

Union Pacific Corp.		4,030		417,830


Information Technology—3.2%

Communications Equipment—0.5%

Aerohive Networks, Inc.¹		41,242		235,079

Brocade Communications Systems, Inc.		34,432		430,056

Cisco Systems, Inc.		44,380		1,341,164

				2,006,299


Electronic Equipment, Instruments, & Components—0.1%

InvenSense, Inc., Cl. A¹		33,498		428,439


Internet Software & Services—0.8%

Alphabet, Inc., Cl. A^1,3		4,246		3,364,743

Benefitfocus, Inc.¹		373		11,078

Endurance International Group Holdings, Inc.¹		1,305		12,136

Limelight Networks, Inc.¹		1,344		3,387

				3,391,344


IT Services—0.1%

MoneyGram International, Inc.¹		360		4,252

NeuStar, Inc., Cl. A¹		12,933		431,962

				436,214


Semiconductors & Semiconductor Equipment—1.0%

Exar Corp.¹		12,379		133,446

8 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


	Shares		Value

Semiconductors & Semiconductor Equipment (Continued)

Hanergy Thin Film Power Group Ltd.¹		161,121	$	2

Intersil Corp., Cl. A		18,072		403,006

Lattice Semiconductor Corp.¹		53,020		390,227

QUALCOMM, Inc.³		10,880		709,376

Xilinx, Inc.³		37,385		2,256,932

				3,892,989


Software—0.1%

Mentor Graphics Corp.		11,510		424,604


Technology Hardware, Storage & Peripherals—0.6%

Apple, Inc.		20,000		2,316,400

Diebold Nixdorf, Inc.		4,335		109,025

				2,425,425


Materials—1.7%

Chemicals—0.8%

Celanese Corp., Cl. A³		17,230		1,356,690

Chemtura Corp.¹		12,027		399,297

Methanex Corp.		25,342		1,109,980

Westlake Chemical Partners LP²		17,512		380,010

				3,245,977


Construction Materials—0.1%

Headwaters, Inc.¹		17,852		419,879


Containers & Packaging—0.7%

Packaging Corp. of America		13,320		1,129,802

Sonoco Products Co.³		31,420		1,655,834

				2,785,636


Metals & Mining—0.1%

Stillwater Mining Co.¹		23,974		386,221


Telecommunication Services—1.0%

Diversified Telecommunication Services—1.0%

AT&T, Inc.³		28,570		1,215,082

BCE, Inc.		27,865		1,204,882

Inteliquent, Inc.		18,977		434,953

Verizon Communications, Inc.		21,950		1,171,691

				4,026,608


Wireless Telecommunication Services—0.0%

NII Holdings, Inc.¹		605		1,301


Utilities—0.9%

Electric Utilities—0.7%

Edison International		25,985		1,870,660

PG&E Corp.		16,490		1,002,098

				2,872,758


Independent Power and Renewable Electricity Producers—0.0%

NRG Energy, Inc.		171		2,099


Multi-Utilities—0.2%
CMS Energy Corp.		15,510		645,526

Total Common Stocks (Cost $109,430,002)				121,426,755


Preferred Stocks—0.3%

Kinesis 2017 Sidecar, Preferred¹		49,261		482,758

M&T Bank Corp., 6.375% Cum., Series A, Non-Vtg.		340		343,400

M&T Bank Corp., 6.375% Cum., Series C, Non-Vtg.		475		479,750

Total Preferred Stocks (Cost $1,345,454)				1,305,908

	Units

Rights, Warrants and Certificates—0.0%

Halcon Resources Corp. Wts., Strike Price $14.04, Exp. 9/9/20¹		2,038		4,891

Kaisa Group Holdings Ltd. Rts., Strike Price 1SGD, Exp. 12/31/49¹		231		2

SandRidge Energy, Inc., Wts., Strike Price $41.34, Exp. 10/3/22¹		977		3,419


	Units		Value

Rights, Warrants and Certificates (Continued)

SandRidge Energy, Inc., Wts., Strike Price $42.03, Exp. 10/3/22¹		411	$	1,665

Total Rights, Warrants and Certificates (Cost $70,284)				9,977
	Principal Amount

Asset-Backed Securities—4.0%

Airspeed Ltd., Series 2007-1A, Cl. G1, 0.974%, 6/15/32^8,9	$	4,041,730		3,191,669

Bear Stearns Structured Products Trust, Series 2007-EMX1, Cl. A2, 2.056%, 3/25/37^8,9		1,600,000		1,534,597

Blade Engine Securitization Ltd., Series 2006-1AW, Cl. A1, 1.004%, 9/15/41^4,9		1,112,285		730,088

GSAMP Trust, Series 2005-HE4, Cl. M3, 1.276%, 7/25/45⁹		1,400,000		1,200,333

JP Morgan Mortgage Acquisition Corp., Series 2005-OPT2, Cl. M2, 1.206%, 12/25/35⁹		1,836,000		1,763,270

Morgan Stanley ABS Capital I, Inc. Trust, Series 2006-NC1, Cl. M1, 1.136%, 12/25/35⁹		1,780,000		1,612,020

New Century Home Equity Loan Trust, Series 2005-1, Cl. M2, 1.476%, 3/25/35⁹		517,001		443,196

Raspro Trust, Series 2005-1A, Cl. G, 1.397%, 3/23/24^8,9		1,990,983		1,923,696

SG Mortgage Securities Trust, Series 2005-OPT1, Cl. M2, 1.206%, 10/25/35⁹		4,250,000		3,666,393

Total Asset-Backed Securities (Cost $16,269,070)				16,065,262


Mortgage-Backed Obligation—0.5%

RAMP Trust, Series 2005-RS6, Cl. M4, 1.731%, 6/25/35⁹(Cost $2,060,390)		2,300,000		2,064,231


Foreign Government Obligations—1.9%
Federative Republic of Brazil Nota Do Tesouro Nacional Unsec. Nts., 11.779%, 7/1/17¹²	BRL	10,400,000		3,014,770

Kingdom of Spain Sr. Unsec. Bonds, 3.80%, 1/31/17⁸	EUR	4,350,000		4,593,758

Total Foreign Government Obligations (Cost $7,795,338)				7,608,528


Non-Convertible Corporate Bonds and Notes—8.6%

1011778 B.C. ULC/New Red Finance, Inc., 6% Sec. Nts., 4/1/22⁸		350,000		366,625

Alcatel-Lucent USA, Inc., 6.45% Sr. Unsec. Nts., 3/15/29		350,000		366,625

Arconic, Inc., 5.40% Sr. Unsec. Nts., 4/15/21		300,000		319,125

Ardagh Packaging Finance plc/Ardagh Holdings USA, Inc., 7.25% Sr. Unsec. Nts., 5/15/24⁸		350,000		370,125

Bancolombia SA, 5.125% Unsec. Sub. Nts., 9/11/22		350,000		357,437

Bank of America Corp., 8% Jr. Sub. Perpetual Bonds, Series K^9,10		1,666,000		1,713,897

BMC Software Finance, Inc., 8.125% Sr. Unsec. Nts., 7/15/21⁸		350,000		328,781

CCO Holdings LLC/CCO Holdings Capital Corp., 5.125% Sr. Unsec. Nts., 5/1/23⁸		200,000		206,500

Cemex Finance LLC, 6% Sr. Sec. Nts., 4/1/24⁸		350,000		360,500

9 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Non-Convertible Corporate Bonds and Notes (Continued)

Cenovus Energy, Inc., 6.75% Sr. Unsec. Nts., 11/15/39	$	300,000	$	335,004

Centene Corp., 5.625% Sr. Unsec. Nts., 2/15/21		300,000		316,170

Cequel Communications Holdings I LLC/Cequel Capital Corp., 6.375% Sr. Unsec. Nts., 9/15/20⁸		250,000		258,125

Charter Communications Operating LLC/Charter Communications Operating Capital, 4.908% Sr. Sec. Nts., 7/23/25		300,000		316,324

CHC Helicopter SA, 9.25% Sr. Sec. Nts., 10/15/20⁶		90,000		43,200

China Evergrande Group, 8.75% Sr. Unsec. Nts., 10/30/18⁸		200,000		204,000

Citigroup, Inc., 5.875% Jr. Sub. Perpetual Bonds^9,10		1,783,000		1,803,059

Columbus Cable Barbados Ltd., 7.375% Sr. Unsec. Nts., 3/30/21⁸		200,000		213,578

CommScope Technologies Finance LLC, 6% Sr. Unsec. Nts., 6/15/25⁸		300,000		319,500

Concho Resources, Inc., 5.50% Sr. Unsec. Unsub. Nts., 4/1/23		300,000		312,390

CONSOL Energy, Inc., 5.875% Sr. Unsec. Nts., 4/15/22		300,000		295,500

Continental Resources, Inc., 5% Sr. Unsec. Nts., 9/15/22		350,000		354,599

Crown Castle International Corp., 5.25% Sr. Unsec. Nts., 1/15/23		350,000		378,000

CSC Holdings LLC, 10.875% Sr. Unsec. Nts., 10/15/25⁸		350,000		417,375

DaVita, Inc.:
5.125% Sr. Unsec. Nts., 7/15/24		550,000		549,656
5.75% Sr. Unsec. Nts., 8/15/22		200,000		209,750

Digicel Group Ltd., 8.25% Sr. Unsec. Nts., 9/30/20⁸		200,000		172,594

DISH DBS Corp., 5.875% Sr. Unsec. Nts., 7/15/22		350,000		369,250

Dollar Tree, Inc., 5.75% Sr. Sec. Nts., 3/1/23		250,000		265,955

Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 12.25% Sec. Nts., 3/1/22^6,8		1,027,487		1,402,520

EP Energy LLC/Everest Acquisition Finance, Inc., 9.375% Sr. Unsec. Nts., 5/1/20		300,000		278,061

FirstEnergy Corp., 7.375% Sr. Unsec. Nts., 11/15/31		350,000		451,411

FMG Resources August 2006 Pty Ltd., 9.75% Sr. Sec. Nts., 3/1/22⁸		350,000		407,774

Gazprom OAO Via Gaz Capital SA, 9.25% Sr. Unsec. Nts., 4/23/19⁸		300,000		340,416

Goldman Sachs Capital II, 4% Jr. Sub. Perpetual Bonds^9,10		8,000		6,549

Goldman Sachs Group, Inc. (The), 5.70% Jr. Sub. Perpetual Bonds, Series L^9,10		168,000		172,376

HCA, Inc., 6.50% Sr. Sec. Nts., 2/15/20		250,000		274,125

Hexion, Inc., 8.875% Sec. Nts., 2/1/18		300,000		300,000

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 5.625% Sr. Unsec. Nts., 10/15/21		250,000		258,267

HUB International Ltd., 7.875% Sr. Unsec. Nts., 10/1/21⁸		250,000		264,728

Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6% Sr. Unsec. Nts., 8/1/20		350,000		359,188

iHeartCommunications, Inc., 9% Sr. Sec. Nts., 12/15/19		300,000		246,375


	Principal Amount		Value

Non-Convertible Corporate Bonds and Notes (Continued)

Intelsat Jackson Holdings SA, 7.25% Sr. Unsec. Nts., 10/15/20	$	300,000	$	234,000

Itau Unibanco Holding SA (Cayman Islands), 5.125% Sub. Nts., 5/13/23⁸		300,000		297,750

JPMorgan Chase & Co., 7.90% Jr. Sub. Perpetual Bonds, Series 1^9,10		1,653,000		1,713,748

Laureate Education, Inc., 10% Sr. Unsec. Nts., 9/1/19⁸		400,000		410,500

Lukoil International Finance BV: 4.563% Sr. Unsec. Unsub. Nts., 4/24/23⁸		250,000		252,898
6.125% Sr. Unsec. Nts., 11/9/20⁸		2,729,000		2,965,593

MGM Resorts International, 7.75% Sr. Unsec. Nts., 3/15/22		250,000		288,125

MMC Energy, Inc., 8.875% Sr. Unsec. Nts., 10/15/20^6,7		100,000		—

Momentive Performance Materials, Inc., 3.88% Sr. Sec. Nts., 10/24/21		200,000		189,000

NGPL PipeCo LLC, 7.119% Sr. Sec. Nts., 12/15/17⁸		350,000		366,625

Nielsen Finance LLC/Nielsen Finance Co., 5% Sr. Unsec. Nts., 4/15/22⁸		350,000		357,438

OAS Financial Ltd., 8% Sr. Unsec. Nts., 7/2/21^4,6		200,000		9,400

Offshore Group Investment Ltd., 7.50% 1st Lien Nts., 11/1/19^6,7		250,000		—

Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA, 6.625% Sr. Unsec. Nts., 5/15/22⁸		400,000		356,000

Post Holdings, Inc., 5% Sr. Unsec. Nts., 8/15/26⁸		350,000		336,000

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA, 5.75% Sr. Sec. Nts., 10/15/20		350,000		361,375

Rio Oil Finance Trust, 9.25% Sr. Sec. Nts., 7/6/24⁸		321,521		303,837

Sabine Pass Liquefaction LLC, 5.625% Sr. Sec. Nts., 2/1/21		300,000		322,500

Samson Investment Co., 9.75% Sr. Unsec. Nts., 2/15/20⁶		300,000		16,125

Sandridge Energy, Inc., 7.50% Sr. Unsec. Nts., 3/15/21^6,7		500,000		50

Scientific Games International, Inc., 10% Sr. Unsec. Nts., 12/1/22		300,000		300,000

Sirius XM Radio, Inc., 6% Sr. Unsec. Nts., 7/15/24⁸		350,000		366,625

SoftBank Group Corp., 4.50% Sr. Unsec. Nts., 4/15/20⁸		200,000		205,500

Solera LLC/Solera Finance, Inc., 10.50% Sr. Unsec. Nts., 3/1/24⁸		350,000		395,500

Springleaf Finance Corp., 6.90% Sr. Unsec. Nts., 12/15/17		400,000		418,120

Sprint Corp., 7.875% Sr. Unsec. Nts., 9/15/23		300,000		321,000

Talen Energy Supply LLC, 4.625% Sr. Unsec. Nts., 7/15/19⁸		250,000		238,125

T-Mobile USA, Inc., 6.625% Sr. Unsec. Nts., 4/1/23		350,000		371,875

TransDigm, Inc., 6.50% Sr. Sub. Nts., 7/15/24		350,000		367,938

United Rentals North America, Inc., 7.625% Sr. Unsec. Nts., 4/15/22		142,000		150,165

Univision Communications, Inc., 5.125% Sr. Sec. Nts., 2/15/25⁸		300,000		288,000

Vantage Drilling International, 10% Sec. Nts., 12/31/20		7,000		6,370

VTR Finance BV, 6.875% Sr. Sec. Nts., 1/15/24⁸		400,000		414,000

10 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


	Principal Amount		Value

Non-Convertible Corporate Bonds and Notes (Continued)

Wachovia Capital Trust III, 5.57% Jr. Sub. Perpetual Bonds^9,10	$	1,842,000	$	1,809,857

Wells Fargo & Co., 7.98% Jr. Sub. Perpetual Bonds, Series K^9,10		1,597,000		1,670,861

Western Digital Corp., 10.50% Sr. Unsec. Nts., 4/1/24⁸		300,000		355,500

Williams Partners LP/ACMP Finance Corp., 4.875% Sr. Unsec. Nts., 5/15/23		350,000		356,607

Wind Acquisition Finance SA, 7.375% Sec. Nts., 4/23/21⁸		400,000		417,000

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50% Sr. Unsec. Nts., 3/1/25⁸		250,000		248,625

Wynn Macau Ltd., 5.25% Sr. Unsec. Nts., 10/15/21⁸		200,000		202,500

Zayo Group LLC/Zayo Capital, Inc., 6% Sr. Unsec. Nts., 4/1/23		300,000		313,500

ZF North America Capital, Inc., 4.75% Sr. Unsec. Nts., 4/29/25⁸		300,000		306,375

Total Non-Convertible Corporate Bonds and Notes (Cost $34,011,226)				34,590,441

Convertible Corporate Bond and Note—0.1%

Clearwire Communications LLC/Clearwire Finance, Inc., 8.25% Cv. Sr. Unsec. Nts., 12/1/40⁴(Cost $618,854)		600,000		628,500

Corporate Loans—3.2%

Ardagh Holdings USA, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Delayed Draw, 4.00%, 12/17/21^9,11		1,499,756		1,518,736

Delos Finance Sarl, Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.748%, 2/26/21⁹		5,330,000		5,377,304

Dynegy, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.00%, 4/23/20⁹		472,661		475,074

Neiman Marcus Group Ltd. LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.25%, 10/25/20⁹		771,036		674,656

Pinnacle Foods Finance LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.284%, 1/13/23^9,11		705,453		715,741

TransDigm, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 3.77%, 5/14/22⁹		3,971,168		4,003,743

Total Corporate Loans (Cost $12,670,598)				12,765,254

Event-Linked Bonds—13.9%

Earthquake—3.1%

Acorn Re Ltd. Catastrophe Linked Nts., 4.183%, 7/17/18^4,9		750,000		769,987

Azzurro Re I Ltd. Catastrophe Linked Nts., 2.15%, 1/16/19^8,9	EUR	800,000		844,688

Bosphorus Ltd. Catastrophe Linked Nts., 4.341%, 8/17/18^4,9		500,000		508,675

Golden State Re II Ltd. Catastrophe Linked Nts., 2.713%, 1/8/19^8,9		1,000,000		1,000,550

Kilimanjaro Re Ltd. Catastrophe Linked Nts., 4.242%, 11/25/19^8,9		250,000		253,912

Kizuna Re II Ltd. Catastrophe Linked Nts.:
2.742%, 4/6/18^8,9		950,000		954,322
2.992%, 4/6/18^8,9		750,000		751,612

Merna Re Ltd. Catastrophe Linked Nts.:
2.492%, 4/9/18^8,9		500,000		500,775
2.742%, 4/8/19^8,9		500,000		502,825

Merna Re V Ltd. Catastrophe Linked
Nts., 2.492%, 4/7/17^8,9		750,000		751,312


	Principal Amount		Value

Earthquake (Continued)

Nakama Re Ltd. Catastrophe Linked Nts.:
2.622%, 1/16/19^8,9	$	750,000	$	750,937
2.747%, 4/13/18^8,9		250,000		250,712
2.997%, 4/13/18^8,9		500,000		502,425
3.372%, 1/16/20^4,9		500,000		508,475
3.372%, 1/14/21^8,9		250,000		251,013
3.518%, 10/13/21^8,9		650,000		652,503
3.747%, 1/14/21^8,9		250,000		256,763
4.568%, 10/13/21^8,9		250,000		250,588

Tramline Re II Ltd. Catastrophe Linked Nts., 3.742%, 7/7/17^8,9		250,000		250,738

Ursa Re Ltd. Catastrophe Linked Nts.:
3.50%, 12/7/17^8,9		750,000		754,688
4.00%, 12/10/22^8,9		500,000		502,175
5.00%, 12/7/17-9/21/18^8,9		750,000		764,763

				12,534,438


Longevity—0.0%

Vita Capital VI Ltd. Catastrophe Linked Nts., 3.647%, 1/8/21^8,9		250,000		254,538

Multiple Event—6.6%

Atlas IX Capital DAC Catastrophe Linked Nts.:
4.188%, 1/17/19^8,9		750,000		763,612
8.358%, 1/8/20^8,9		250,000		265,812
8.443%, 1/7/19^8,9		250,000		256,837

Blue Halo Re Ltd. Catastrophe Linked Nts.:
8.742%, 7/26/19^8,9		250,000		260,137
14.492%, 6/21/19^8,9		500,000		520,025

Bonanza Re Ltd. Catastrophe Linked Nts.:
4.703%, 12/31/19^8,9		250,000		248,337
5.953%, 12/31/19^8,9		250,000		248,137

Caelus Re 2013 Ltd. Catastrophe Linked Nts., 7.347%, 4/7/20^8,9		500,000		507,675

Caelus Re IV Ltd. Catastrophe Linked Nts., 5.997%, 3/6/20^8,9		750,000		785,212

Citrus Re Ltd. Catastrophe Linked Nts.:
4.797%, 4/24/17^8,9		750,000		757,162
5.507%, 4/18/17^8,9		250,000		252,812

Cranberry Re Ltd. Catastrophe Linked Nts., 4.357%, 7/6/18^8,9		500,000		513,475

East Lane Re VI Ltd. Catastrophe Linked Nts.:
3.147%, 3/14/18^8,9		750,000		757,162
3.887%, 3/13/20^8,9		500,000		511,175

Eden Re II Ltd. Catastrophe Linked Nts., 0%, 3/22/21¹²		500,000		500,000

Espada Re Ltd. Catastrophe Linked Nts., 1.50%, 6/6/20		250,000		252,375

Galilei Re Ltd. Catastrophe Linked Nts.:
5.503%, 1/8/21^8,9,11		750,000		750,000
6.241%, 1/8/21^8,9,11		250,000		250,000
14.228%, 1/8/20^8,9		250,000		250,569

Galileo Re Ltd. Catastrophe Linked Nts.:
14.013%, 1/8/18-1/8/19^8,9		750,000		779,138

Kilimanjaro Re Ltd. Catastrophe Linked Nts.:
4.992%, 4/30/18^8,9		500,000		510,925
5.242%, 4/30/18^8,9		500,000		512,775
7.242%, 12/6/19^8,9		250,000		259,162
9.742%, 12/6/19^8,9		500,000		522,175

Laetere Re Ltd. Catastrophe Linked Nts., 9.952%, 6/6/17^8,12		250,000		246,687

Loma Reinsurance Ltd. Catastrophe Linked Nts.:
12.232%, 1/8/18^8,9		200,000		205,470
18.232%, 1/8/18^8,9		500,000		522,175

Long Point Re III Ltd. Catastrophe Linked Nts., 3.75%, 5/23/18^8,9		250,000		255,262

PennUnion Re Ltd. Catastrophe Linked Nts., 4.997%, 12/7/18^8,9		500,000		509,025

11 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


	Principal Amount		Value

Multiple Event (Continued)

Residential Reinsurance 2013 Ltd. Catastrophe Linked Nts.:
5.742%, 12/6/17^8,9	$	500,000	$	505,725
8.492%, 6/6/17^8,9		250,000		255,287
20.492%, 12/6/17^8,9		500,000		517,825

Residential Reinsurance 2014 Ltd. Catastrophe Linked Nts.:
4.102%, 6/6/18^8,9		750,000		763,988
15.572%, 6/6/18^8,9		500,000		523,475

Residential Reinsurance 2015 Ltd. Catastrophe Linked Nts.:
7.742%, 12/6/19^8,9		250,000		258,688
11.462%, 6/6/19^8,9		250,000		256,088

Residential Reinsurance 2016 Ltd. Catastrophe Linked Nts.:
1.981%, 12/6/20^8,12		250,000		231,763
3.742%, 6/6/20^8,9		750,000		762,563
3.992%, 12/6/23^8,9		500,000		496,275
11.992%, 6/6/20^8,9		250,000		253,788

Riverfront Re Ltd. Catastrophe Linked
Nts., 4.492%, 1/6/17^8,9		1,125,000		1,128,206

Sanders Re Ltd. Catastrophe Linked Nts.:
3.593%, 5/25/18^8,9		250,000		252,638
3.813%, 5/25/18^8,9		750,000		759,488
4.013%, 5/5/17^8,9		500,000		501,175
4.283%, 6/7/17^8,9		500,000		504,675
4.383%, 5/28/19^8,9		250,000		254,538
4.513%, 5/5/17^8,9		500,000		501,725

Tradewynd Re Ltd. Catastrophe Linked Nts.:
5.31%, 1/8/21^8,9		500,000		507,625
6.702%, 1/9/17^8,9		1,375,000		1,379,194
7.382%, 1/9/17^8,9		1,125,000		1,128,544
7.45%, 1/8/18^8,9		500,000		512,475
10.142%, 7/9/18^8,9		250,000		270,088

Tramline Re II Ltd. Catastrophe Linked
Nts., 10.242%, 1/4/19^8,9		400,000		416,500

VenTerra Re Ltd. Catastrophe Linked
Nts., 4.242%, 1/9/17^8,9		750,000		752,138

				26,667,782


Other—0.6%

Benu Capital Ltd. Catastrophe Linked Nts.:
2.55%, 1/8/20^8,9	EUR	250,000		265,084
3.35%, 1/8/20^8,9	EUR	500,000		533,272

Horse Capital I DAC Catastrophe
Linked Nts., 12%, 6/15/20^8,9	EUR	500,000		525,904

Vitality Re IV Ltd. Catastrophe Linked
Nts., 4.242%, 1/9/17^8,9		250,000		250,762

Vitality Re V Ltd. Catastrophe Linked
Nts., 2.992%, 1/7/19^8,9		250,000		252,312

Vitality Re VI Ltd. Catastrophe Linked
Nts., 2.592%, 1/8/18^8,9		250,000		250,413

Vitality Re VII Ltd. Catastrophe Linked
Nts., 3.142%, 1/7/20^4,9		250,000		254,138

				2,331,885


Windstorm—3.6%

Akibare Re Ltd. Catastrophe Linked
Nts., 3.818%, 4/7/20^8,9		750,000		765,337

Alamo Re Ltd. Catastrophe Linked Nts.:
5.112%, 6/7/19^8,9		750,000		787,537
6.272%, 6/7/18^8,9		500,000		517,025

Aozora Re Ltd. Catastrophe Linked Nts.:
2.497%, 4/7/17^8,9	JPY	91,000,000		780,089
3.518%, 4/7/20^8,9		250,000		253,012

Calypso Capital II Ltd. Catastrophe Linked Nts.:
2.88%, 1/9/17^8,9	EUR	500,000		526,272
4.10%, 1/8/18^8,9	EUR	500,000		534,825

Citrus Re Ltd. Catastrophe Linked Nts.:
5.637%, 4/9/18^8,9		250,000		255,637
7.457%, 4/9/18^8,9		250,000		257,587
7.50%, 2/25/19^8,9		500,000		522,225
9.527%, 4/9/18^8,9		250,000		257,162


	Principal Amount		Value

Windstorm (Continued)

Citrus Re Ltd. Catastrophe Linked Nts.: (Continued)
10.997%, 2/25/21^8,9	$	500,000	$	524,425

Everglades Re II Ltd. Catastrophe Linked Nts., 5.727%, 5/3/18^8,9		750,000		768,263

Everglades Re Ltd. Catastrophe Linked Nts., 7.607%, 4/28/17^8,9		500,000		509,375

First Coast Re 2016 Ltd. Catastrophe Linked Nts., 4.497%, 6/7/19^8,9		250,000		254,513

Gator Re Ltd. Catastrophe Linked Nts., 6.783%, 1/9/17^8,9		1,000,000		843,750

Green Fields II Capital Ltd. Catastrophe Linked Nts., 2.75%, 1/9/17^8,9	EUR	750,000		789,409

Lion I Re Ltd. Catastrophe Linked Nts., 2.31%, 4/28/17^8,9	EUR	750,000		790,435

Manatee Re Ltd. Catastrophe Linked Nts.:
5.492%, 12/22/17^8,9		750,000		757,388
16.25%, 3/10/19⁸		500,000		488,300

Pelican III Re Ltd. Catastrophe Linked Nts., 6.677%, 4/16/18^8,9		750,000		769,763

Pelican Re Ltd. Catastrophe Linked Nts., 6.497%, 5/15/17^8,9		500,000		508,375

Queen City Re Ltd. Catastrophe Linked Nts., 3.997%, 1/6/17^8,9		665,000		666,895

Queen Street IX Re DAC Catastrophe Linked Nts., 5.997%, 6/8/17^8,9		250,000		251,863

Queen Street X Re Ltd. Catastrophe Linked Nts., 6.247%, 6/8/18^8,9		250,000		252,338

Queen Street XI Re DAC Catastrophe Linked Nts., 6.647%, 6/7/19^8,9		250,000		256,488

Queen Street XII Re Designated Activity Co. Catastrophe Linked Nts., 6.41%, 4/8/20^8,9		500,000		508,525

				14,396,813

Total Event-Linked Bonds (Cost $56,212,349)				56,185,456

Short-Term Notes—18.1%

France—1.0%
French Republic Treasury Bills, 0%, 2/15/17¹²	EUR	4,000,000		4,214,650

Italy—2.3%
Republic of Italy Treasury Bills:
0%, 1/13/17¹²	EUR	6,950,000		7,316,759
0%, 3/14/17¹²	EUR	1,680,000		1,770,181

				9,086,940

Japan—4.3%
Japan Treasury Bills, 0%, 2/20/17¹²	JPY	2,000,000,000		17,118,871

Mexico—0.4%
United Mexican States Treasury Bills, 5.521%, 3/30/17¹²	MXN	37,400,000		1,777,694

Portugal—0.6%
Portuguese Republic Treasury Bills, 0%, 1/20/17¹²	EUR	2,245,000		2,363,535

Sweden—3.4%
Kingdom of Sweden Treasury Bills, 0%, 1/18/17¹²	SEK	123,800,000		13,593,554

United States—6.1%
United States Treasury Bills, 0.488%, 3/9/17^12,13,14	USD	24,735,000		24,713,950

Total Short-Term Notes (Cost $75,176,343)				72,869,194
		Shares

Investment Companies—15.8%

Highland/iBoxx Senior Loan Exchange Traded Fund		111,516		2,090,925

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^15,16,17		57,727,699		57,727,699

SPDR Gold Trust Exchange Traded Fund^1,17		34,231		3,752,060

12 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


	Shares	Value
Investment Companies (Continued)
Total Investment Companies (Cost $63,799,739)		$	63,570,684

Exercise Price

Expiration Date

Contracts

Value

Exchange-Traded Option Purchased—0.0%

S&P 500 Index Put¹(Cost $43,791)

USD

2,100.000

1/20/17

USD

3,640

Counterparty

Value

Over-the-Counter Options Purchased—0.5%

CNH Currency Put¹

CITNA-B

CNH

7.300

11/29/17

CNH

53,100,000

233,056

CNH Currency Put¹

CITNA-B

CNH

7.300

11/29/17

CNH

10,585,000

46,458

EUR Currency Put¹

CITNA-B

EUR

1.030

5/12/17

EUR

18,464,000

305,838

JPY Currency Put1,¹⁸

GSCO-OT

JPY

117.000

1/19/17

JPY

923,400

433,730

JPY Currency Put1

BOA

JPY

118.500

6/19/17

JPY

3,283,000,000

686,147

NZD Currency Put¹

BOA

CAD

0.935

4/26/17

NZD

18,465,000

326,763

Total Over-the-Counter Options Purchased (Cost $1,617,185)

2,031,992

Counterparty

Pay / Receive
Floating Rate

Floating Rate

Fixed Rate

Expiration

Date

Notional Amount (000’s)

Over-the-Counter Interest Rate Swaptions Purchased—0.1%

Interest Rate Swap maturing

Six-Month JPY BBA

11/2/27 Call¹

GSCOI

Pay

LIBOR

1.070%

11/20/17

JPY

560,000

5,883

Interest Rate Swap maturing

Six-Month JPY BBA

11/22/27 Call¹

GSCOI

Pay

LIBOR

1.070

11/20/17

JPY

424,000

4,454

Interest Rate Swap maturing

Six-Month JPY BBA

7/25/28 Call¹

GSCOI

Pay

LIBOR

1.050

7/23/18

JPY

630,000

16,185

Interest Rate Swap maturing

Three-Month USD

9/6/28 Call¹

GSCOI

Pay

BBA LIBOR

1.610

9/4/18

USD

3,700

333,726

Total Over-the-Counter Interest Rate Swaptions Purchased (Cost $495,436)

360,248

Total Investments, at Value (Cost $381,616,059)

97.1%

391,486,070

Net Other Assets (Liabilities)

2.9

11,507,100

Net Assets

100.0%

402,993,170

Footnotes to Consolidated Statement of Investments

1. Non-income producing security.

2. Security is a Master Limited Partnership.

3. All or portion of the security position is held in segregated accounts and pledged to cover margin requirements with respect to securities sold short. The aggregate market value of such securities is $9,890,389. See Note 10 of accompanying Consolidated Notes.

4. Restricted security. The aggregate value of restricted securities at period end was $4,144,820, which represents 1.03% of the Fund’s net assets. See Note 4 of the accompanying Consolidated Notes. Information concerning restricted securities is as follows:


Security	Acquisition Dates		Cost		Value		Unrealized Appreciation/ (Depreciation)
Acorn Re Ltd. Catastrophe Linked Nts., 4.183%, 7/17/18		7/2/15	$	750,000	$	769,987	$	19,987
Blade Engine Securitization Ltd., Series 2006-1AW, Cl. A1, 1.004%, 9/15/41		7/25/14-8/28/14		920,999		730,088		(190,911)
Bosphorus Ltd. Catastrophe Linked Nts., 4.341%, 8/17/18		8/11/15		500,000		508,675		8,675
Clearwire Communications LLC/Clearwire Finance, Inc., 8.25% Cv. Sr. Unsec. Nts., 12/1/40		8/14/15		618,854		628,500		9,646
Nakama Re Ltd. Catastrophe Linked Nts., 3.372%, 1/16/20		12/12/14-10/9/15		500,727		508,475		7,748
OAS Financial Ltd., 8% Sr. Unsec. Nts., 7/2/21		9/3/14		204,171		9,400		(194,771)
Rice Midstream Partners LP		10/7/16		643,387		735,557		92,170
Vitality Re VII Ltd. Catastrophe Linked Nts., 3.142%, 1/7/20		1/22/16		250,000		254,138		4,138
			$	4,388,138	$	4,144,820		$ (243,318)

5. The Fund holds securities which have been issued by the same entity and that trade on separate exchanges.

6. This security is not accruing income because the issuer has missed an interest payment on it and/or is not anticipated to make future interest and or principal payments. The rate shown is the contractual interest rate. See Note 4 of the accompanying Consolidated Notes.

7. Security received as the result of issuer reorganization.

8. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $79,353,058 or 19.69% of the Fund’s net assets at period end.

9. Represents the current interest rate for a variable or increasing rate security.

10. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

11. All or a portion of the security position is when-issued or delayed delivery to be delivered and settled after period end. See Note 4 of the accompanying Consolidated Notes.

12. Zero coupon bond reflects effective yield on the original acquisition date.

13 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued

Footnotes to Consolidated Statement of Investments (Continued)

13. All or a portion of the security position is held in accounts at a futures clearing merchant and pledged to cover margin requirements on open futures contracts and written options on futures, if applicable. The aggregate market value of such securities is $6,083,818. See Note 6 of the accompanying Consolidated Notes.

14. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements under certain derivative contracts. The aggregate market value of such securities is $1,666,581. See Note 6 of the accompanying Consolidated Notes.

15. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows:


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016
Oppenheimer Institutional Government Money Market Fund, Cl. E ^a		23,203,584		358,220,893		323,696,778		57,727,699

					Value		Income
Oppenheimer Institutional Government Money Market Fund, Cl. E ^a					$	57,727,699	$	130,187

a. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

16. Rate shown is the 7-day yield at period end.

17. All or a portion of this security is owned by the subsidiary. See Note 2 of the accompanying Consolidated Notes.

18. One-Touch Binary option becomes eligible for exercise if at any time spot rate is greater than or equal to 117 JPY per 1 USD.

Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:


Geographic Holdings (Unaudited)	Value		Percent

United States	$	282,197,179		72.1	%
Japan		26,010,492		6.6
Sweden		13,593,554		3.5
Supranational		10,283,464		2.6
Italy		9,503,940		2.4
France		6,653,253		1.7
Bermuda		5,073,948		1.3
Spain		4,593,758		1.2
Ireland		3,944,610		1.0
Cayman Islands		3,828,450		1.0
Brazil		3,625,757		0.9
Russia		3,558,907		0.9
Canada		3,492,786		0.9
Eurozone		2,467,233		0.6
Portugal		2,363,535		0.6
Mexico		2,138,194		0.5
Switzerland		1,910,052		0.5
Australia		1,268,602		0.3
Hong Kong		626,341		0.2
Germany		588,334		0.2
Turkey		508,675		0.1
United Kingdom		435,553		0.1
Chile		414,000		0.1
Colombia		357,437		0.1
New Zealand		326,763		0.1
China		321,244		0.1
Singapore		297,269		0.1
China Offshore		279,513		0.1
Barbados		213,578		0.1
Macau		202,500		0.1
Netherlands		191,355		0.0
Jamaica		172,594		0.0
Luxembourg		43,200		0.0

Total	$	391,486,070		100.0	%


	Shares Sold Short		Value
Securities Sold Short—(9.9)%
Common Stock Securities Sold Short—(9.3)%
AGCO Corp.		(26,510)		$ (1,533,869)
Air Lease Corp., Cl. A		(52,605)		(1,805,930	)
Aircastle Ltd.		(24,325)		(507,176	)
Aker Solutions ASA¹		(325,366)		(1,556,984	)
athenahealth, Inc.¹		(4,430)		(465,903	)
Boeing Co. (The)		(13,220)		(2,058,090	)
Caterpillar, Inc.		(8,505)		(788,754)
CBL & Associates Properties, Inc.		(45,690)		(525,435	)
Charter Communications, Inc., Cl. A¹		(5,956)		(1,714,851	)
Cheniere Energy, Inc.¹		(13,430)		(556,405	)
Cie Financiere Richemont SA		(11,321)		(749,584	)

14 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


Securities Sold Short—(9.9)% (Continued)
Common Stock Securities Sold Short (Continued)
CNH Industrial NV	(144,010)		$	(1,251,447)
Colgate-Palmolive Co.	(16,210)			(1,060,782)
Comcast Corp., Cl. A	(11,240)			(776,122)
Deere & Co.	(20,200)			(2,081,408)
Fastenal Co.	(21,700)			(1,019,466)
Franklin Resources, Inc.	(17,010)			(673,256)
Intel Corp.	(39,945)			(1,448,805)
International Business Machines Corp.	(11,240)			(1,865,727)
Kennametal, Inc.	(16,433)			(513,695)
Pennsylvania Real Estate Investment Trust	(86,442)			(1,638,940)
Procter & Gamble Co. (The)	(16,445)			(1,382,696)
Rio Tinto plc, Sponsored ADR	(9,650)			(371,139)
RLJ Lodging Trust	(59,040)			(1,445,890)
SAP SE, Sponsored ADR	(22,250)			(1,923,067)
Southern Copper Corp.	(52,550)			(1,678,447)
Subsea 7 SA¹	(165,771)			(2,095,425)
Tiffany & Co.	(7,520)			(582,274)
W.W. Grainger, Inc.	(4,245)			(985,901)
Walt Disney Co. (The)	(4,460)			(464,821)
Weingarten Realty Investors	(59,980	)		(2,146,684	)

Common Stock Securities Sold Short (Proceeds $35,120,091)				(37,668,973)
Investment Company Securities Sold Short—(0.6)%
iShares US Preferred Stock Exchange Traded Fund (Proceeds $2,442,608)	(61,965	)		(2,305,719	)

Total Securities Sold Short (Proceeds $37,562,699)			$	(39,974,692	)


Forward Currency Exchange Contracts as of December 31, 2016
Counterparty	Settlement Month(s)	Currency Purchased (000’s)			Currency Sold (000’s)	Unrealized Appreciation		Unrealized Depreciation
BAC	02/2017	IDR	40,478,000	USD	3,007	$	—	$	33,121
BAC	01/2017	JPY	538,000	USD	4,630		—		20,913
BAC	03/2017	USD	3,020	CAD	4,065		—		9,471
BAC	02/2017	USD	3,645	IDR	49,540,000		5,602		—
BOA	01/2017	BRL	19,710	USD	5,839		217,184		—
BOA	03/2017	COP	3,037,000	USD	1,003		—		2,802
BOA	01/2017 - 03/2017	IDR	52,275,049	USD	3,879		—		36,699
BOA	03/2017	TWD	64,000	USD	2,013		—		37,948
BOA	01/2017 - 01/2017	USD	9,169	BRL	30,110		—		80,979
BOA	11/2017	USD	184	CNH	1,300		5,837		—
BOA	01/2017	USD	2,523	EUR	2,245		157,574		—
BOA	03/2017	USD	7,513	KRW	8,920,000		125,770		29
BOA	03/2017	USD	2,379	THB	85,000		5,808		—
BOA	03/2017	USD	1,978	TWD	64,000		2,360		—
BOA	02/2017	ZAR	18,330	USD	1,325		—		3,160
CITNA-B	01/2017 - 03/2017	BRL	13,780	USD	4,167		47,275		—
CITNA-B	01/2017	CAD	4,050	USD	2,986		31,067		—
CITNA-B	03/2017	EUR	1,585	USD	1,677		—		2,806
CITNA-B	07/2017	USD	3,022	BRL	10,400		—		23,174
CITNA-B	03/2017	USD	1,001	CLP	682,000		—		13,017
CITNA-B	01/2017 - 03/2017	USD	22,529	EUR	20,777		614,665		—
CITNA-B	03/2017	USD	769	TRY	2,760		—		2,951
DEU	01/2017	CAD	4,950	USD	3,678		8,936		—
DEU	03/2017	IDR	42,163,200	USD	3,048		49,120		—
DEU	01/2017	JPY	544,000	USD	4,630		30,575		—
DEU	01/2017	NZD	9,230	USD	6,712		—		303,290
DEU	01/2017	USD	6,735	CAD	8,995		34,069		—
DEU	03/2017	USD	1,809	CHF	1,835		—		503
DEU	01/2017	USD	3,542	NZD	5,030		49,239		—
DEU	02/2017	ZAR	38,460	USD	2,737		37,008		—
GSCO-OT	01/2017	BRL	17,730	USD	5,386		61,681		—
GSCO-OT	03/2017	COP	2,962,000	USD	976		—		1,033
GSCO-OT	03/2017	GBP	680	USD	857		—		17,655
GSCO-OT	01/2017	JPY	544,000	USD	4,629		31,417		—
GSCO-OT	03/2017	KRW	2,027,000	USD	1,704		—		25,763
GSCO-OT	03/2017	NOK	35,630	USD	4,148		—		20,316
GSCO-OT	03/2017	SEK	18,360	USD	1,988		34,973		—
GSCO-OT	03/2017	USD	6,723	AUD	8,980		252,973		—
GSCO-OT	01/2017	USD	5,319	BRL	17,730		18,745		147,381

15 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


Forward Currency Exchange Contracts (Continued)
Counterparty	Settlement Month(s)	Currency Purchased (000’s)			Currency Sold (000’s)	Unrealized Appreciation		Unrealized Depreciation
GSCO-OT	03/2017	USD	4,792	CAD	6,300	$	96,012	$	—
GSCO-OT	04/2017	USD	1,505	CNH	10,000		102,967		—
GSCO-OT	03/2017	USD	531	EUR	500		2,856		—
GSCO-OT	03/2017	USD	1,115	GBP	885		22,978		—
HSBC	01/2017	BRL	9,700	USD	3,009		—		28,286
HSBC	03/2017	CZK	50,900	USD	1,995		—		3,734
HSBC	02/2017	IDR	15,789,000	USD	1,173		—		13,268
HSBC	03/2017	MXN	17,600	USD	851		—		9,264
HSBC	03/2017	NZD	1,210	USD	860		—		21,410
HSBC	03/2017	PLN	4,170	USD	988		7,529		—
HSBC	03/2017	TWD	65,000	USD	2,024		—		18,162
HSBC	01/2017	USD	2,976	BRL	9,700		—		4,024
HSBC	03/2017	USD	831	HUF	247,000		—		10,793
HSBC	02/2017	USD	18,547	JPY	2,000,000		1,392,289		—
HSBC	03/2017	USD	993	MXN	20,500		12,673		—
HSBC	03/2017	USD	3,979	NZD	5,532		143,584		—
HSBC	03/2017	USD	866	SEK	7,910		—		5,195
HSBC	03/2017	USD	1,010	SGD	1,460		2,582		—
HSBC	03/2017	ZAR	41,570	USD	2,943		47,598		—
JPM	01/2017	BRL	14,540	USD	4,386		81,133		—
JPM	03/2017	CAD	2,290	USD	1,713		—		6,246
JPM	04/2017	CNH	10,000	USD	1,430		—		28,000
JPM	02/2017	IDR	84,263,000	USD	6,180		17,121		6,151
JPM	03/2017	NOK	9,000	USD	1,035		7,370		—
JPM	03/2017	RUB	186,400	USD	2,974		24,101		6,857
JPM	01/2017	USD	4,240	BRL	14,540		—		227,340
JPM	03/2017	USD	1,723	CAD	2,330		—		13,194
JPM	11/2017	USD	1,268	CNH	9,000		37,212		—
JPM	01/2017 - 02/2017	USD	3,618	IDR	49,616,049		—		33,596
JPM	03/2017	USD	3,292	JPY	382,900		5,589		—
JPM	03/2017	USD	2,116	KRW	2,528,000		21,969		—
JPM	03/2017	USD	1,795	MXN	37,400		11,270		—
JPM	03/2017	USD	843	NOK	7,220		6,402		—
JPM	01/2017 - 03/2017	USD	4,667	NZD	6,650		54,369		2,604
JPM	01/2017	USD	14,128	SEK	123,800		525,007		—
MSCO	02/2017 - 03/2017	USD	6,056	EUR	5,680		79,020		17,384
TDB	01/2017 - 03/2017	BRL	19,160	USD	5,808		32,080		—
TDB	03/2017	COP	3,132,000	USD	1,043		—		11,616
TDB	03/2017	JPY	237,000	USD	2,024		10,361		—
TDB	01/2017	USD	2,914	BRL	9,580		—		29,589
TDB	03/2017	USD	186	CHF	190		—		1,142

Total Unrealized Appreciation and Depreciation						$	4,565,950	$	1,280,866


Futures Contracts as of December 31, 2016
Description	Exchange	Buy/Sell	Expiration Date	Number of Contracts		Value		Unrealized Appreciation (Depreciation)

Aluminum*	LME	Buy	1/18/17	10		$	423,500	$	(5,532)
CAC 40 10 Index	PAR	Sell	1/20/17	220			11,261,881		(265,445)
CBOE Volatility Index	CBE	Sell	1/18/17	66			998,250		75,051
Copper*	CMX	Buy	3/29/17	7			438,462		(21,629)
Corn*	CBT	Sell	3/14/17	25			440,000		5,128
Cotton No. 2*	NYB	Sell	3/09/17	12			423,900		4,465
Euro-BONO	EUX	Sell	3/08/17	14			2,069,384		(37,008)
Euro-BTP	EUX	Sell	3/08/17	32			4,557,890		(90,369)
Euro-BUND	EUX	Buy	3/08/17	44			7,602,870		106,065
Euro-OAT	EUX	Sell	3/08/17	12			1,917,760		(21,739)
FTSE 100 Index	ICE	Sell	3/17/17	74			6,429,431		(215,774)
Gold (100 oz.)*	CMX	Sell	2/24/17	5			575,850		(11,612)
Live Cattle*	CME	Buy	2/28/17	10			464,200		13,571
Natural Gas*	NYM	Sell	2/24/17	15			552,600		(43,090)
Nickel*	LME	Buy	1/18/17	6			359,100		(42,535)
Russell 2000 Mini Index	NYF	Sell	3/17/17	314	��		21,303,330		464,230
S&P 500 E-Mini Index	CME	Buy	3/17/17	216			24,150,960		(151,659)
S&P 500 E-Mini Index	CME	Sell	3/17/17	26			2,907,060		32,023
S&P/TSX 60 Index	MON	Sell	3/16/17	5			668,007		192
SPI 200 Index	SFE	Sell	3/16/17	15			1,523,854		(33,312)
STOXX Europe 600 Index	EUX	Sell	3/17/17	879			16,590,258		(264,977)

16 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


Futures Contracts (Continued)
Description	Exchange		Buy/Sell		Expiration Date		Number of Contracts		Value		Unrealized Appreciation (Depreciation)
Sugar #11 World*		NYB		Sell		2/28/17		19	$	415,173	$	35,494
United States Treasury Long Bonds		CBT		Sell		3/22/17		56		8,436,750		92,654
United States Treasury Nts., 10 yr.		CBT		Sell		3/22/17		94		11,682,438		65,220
United States Treasury Nts., 5 yr.		CBT		Sell		3/31/17		102		12,001,734		17,372
Wheat*		CBT		Sell		3/14/17		21		428,400		22,177
WTI Crude Oil*		NYM		Buy		1/20/17		12		644,640		26,372
Zinc*		LME		Buy		1/18/17		6		384,525		(27,994	)

											$	(272,661	)

*All or a portion of this security is owned by the subsidiary. See Note 2 of the accompanying Consolidated Notes.


Over-the-Counter Options Written at December 31, 2016
Description	Counterparty		Exercise Price	Expiration Date		Number of Contracts			Premiums Received		Value
CNH Currency Put	CITNA-B	CNH	8.000	11/29/17	CNH	(58,200,000	)	$	60,528	$	(82,353	)
CNH Currency Put	CITNA-B	CNH	8.000	11/29/17	CNH	(11,600,000	)		10,323		(16,414	)
EUR Currency Put	JPM	EUR	1.055	1/6/17	EUR	(1,370,000	)		8,566		(9,923	)
EUR Currency Call	JPM	EUR	1.055	1/6/17	EUR	(1,370,000	)		8,913		(8,046	)
IDR Currency Call	DEU	IDR	14000.000	2/28/17	IDR	(129,291,000,000	)		265,606		(387,873	)
IDR Currency Put	DEU	IDR	14000.000	2/28/17	IDR	(129,291,000,000	)		155,983		(129,291	)
IDR Currency Call	NOM	IDR	13830.000	2/21/17	IDR	(127,700,000,000	)		230,850		(255,400	)
IDR Currency Put	NOM	IDR	13830.000	2/21/17	IDR	(127,700,000,000	)		230,850		(127,700	)
JPY Currency Put	BOA	JPY	125.000	6/19/17	JPY	(3,463,000,000	)		300,865		(270,114	)
NZD Currency Put	BOA	CAD	0.890	4/26/17	NZD	(18,465,000	)		84,298		(94,259	)
ZAR Currency Call	GSCO-OT	ZAR	14.500	1/21/17	ZAR	(133,900,000	)		356,082		(526,897	)
ZAR Currency Put	GSCO-OT	ZAR	14.500	2/21/17	ZAR	(133,900,000	)		363,008		(123,322	)

Total of Over-the-Counter Options Written								$	2,075,872	$	(2,031,592	)


Centrally Cleared Credit Default Swaps at December 31, 2016
Reference Asset		Buy/Sell Protection	Fixed Rate	Maturity Date		Notional Amount (000’s)		Premiums Received/(Paid)			Value
21st Century Fox America, Inc.		Buy	1.000%	12/20/21	USD	1,100	$	28,034		$	(22,515	)
Altria Group, Inc.		Sell	1.000	12/20/21	USD	1,100		(38,911	)		35,590
Avnet, Inc.		Buy	1.000	12/20/21	USD	1,100		(122	)		(5,042	)
Barrick Gold Corp.		Buy	1.000	12/20/21	USD	1,100		(33,146	)		35,338
Best Buy Co., Inc.		Sell	5.000	12/20/21	USD	1,100		(169,728	)		170,097
Caterpillar, Inc.		Sell	1.000	12/20/21	USD	1,100		(20,785	)		19,769
CDX.HY.24		Buy	5.000	6/20/20	USD	215		13,140			(16,977	)
CDX.HY.24		Buy	5.000	6/20/20	USD	1,862		144,017			(147,286	)
CDX.HY.25		Buy	5.000	12/20/20	USD	8,793		217,607			(608,625	)
CDX.HY.25		Buy	5.000	12/20/20	USD	12,628		(25,958	)		(874,084	)
CDX.IG.25		Sell	1.000	12/20/20	USD	5,655		(44,408	)		93,660
Hartford Financial Services Group, Inc. (The)		Buy	1.000	12/20/21	USD	1,100		10,751			(15,145	)
Hess Corp.		Sell	1.000	12/20/21	USD	1,100		(58,177	)		38,457
Home Depot, Inc. (The)		Sell	1.000	12/20/21	USD	1,100		(41,919	)		38,563
Honeywell International, Inc.		Sell	1.000	12/20/21	USD	1,100		(40,324	)		39,626
iTraxx.Main 26		Buy	1.000	12/20/21	EUR	150		1,718			(2,067	)
iTraxx.Main.24		Buy	1.000	12/20/20	EUR	5,160		69,067			(83,018	)
Johnson & Johnson		Sell	1.000	12/20/21	USD	1,100		(46,743	)		39,848
Kinder Morgan, Inc.		Buy	1.000	12/20/21	USD	1,100		31,647			(18,367	)
Kroger Co. (The)		Buy	1.000	12/20/21	USD	1,100		19,133			(20,306	)
Lincoln National Corp.		Sell	1.000	12/20/21	USD	1,100		19,733			(3,208	)
Lockheed Martin Corp.		Buy	1.000	12/20/21	USD	1,100		38,264			(36,535	)
Lowe’s Cos., Inc.		Buy	1.000	12/20/21	USD	1,100		41,170			(39,276	)
Mckesson Corp.		Buy	1.000	12/20/21	USD	1,100		38,836			(25,019	)
Motorola Solutions, Inc.		Sell	1.000	12/20/21	USD	1,100		2,809			(1,394	)
Neiman Marcus Group LLC (The)		Buy	5.000	12/20/20	USD	715		41,431			(30,155	)
Northrop Grumman Systems Corp.		Buy	1.000	12/20/21	USD	1,100		44,051			(42,802	)
Sherwin-Williams Co. (The)		Sell	1.000	12/20/21	USD	1,100		(10,287	)		10,042
Total of Cleared Credit Default Swaps							$	230,900		$	(1,470,831	)


Over-the-Counter Credit Default Swaps at December 31, 2016
Reference Asset	Counterparty	Buy/Sell Protection	Fixed Rate	Maturity Date		Notional Amount (000’s)		Premiums Received/(Paid)			Value
CDX.NA.HY.21	CITNA-B	Buy	5.000%	12/20/18	USD	1,125	$	(34,531	)	$	(99,609	)
CDX.NA.HY.21	CITNA-B	Sell	5.000	12/20/18	USD	288		160,725			(52,386	)
CDX.NA.HY.21	GSG	Sell	5.000	12/20/18	USD	84		46,161			(15,366	)
CDX.NA.HY.25	GSG	Buy	5.000	12/20/20	USD	1,125		(194,688	)		(39,668	)
CDX.NA.HY.25	GSG	Sell	5.000	12/20/20	USD	353		234,113			(153,382	)

17 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued

Over-the-Counter Credit Default Swaps (Continued)

Reference Asset

Counterparty

Buy/Sell

Protection

Fixed Rate

Maturity Date

Notional Amount

(000’s)

Premiums Received/(Paid)

Value

Malaysia

BNP

Buy

1.000%

6/20/21

USD

775

(22,856)

6,836

Malaysia

BNP

Buy

1.000

12/20/20

USD

1,700

(110,693)

4,315

Malaysia

MOS-A

Buy

1.000

12/20/20

USD

1,700

(85,394)

4,315

Total of Over-the-Counter Credit Default Swaps

(7,163)

(344,945)

The table that follows shows the undiscounted maximum potential payment by the Fund related to selling credit protection in credit default swaps:

Type of Reference Asset on which the Fund Sold

Protection

Total Maximum

Potential Payments

for Selling Credit
Protection
(Undiscounted)

Amount Recoverable*

Reference Asset Rating
Range**

Investment Grade Corporate Debt Indexes

$6,027,399

$1,125,000

BBB+ to BBB-

Non-Investment Grade Corporate Debt Indexes

352,750

22,546,620

Investment Grade Single Name Corporate Debt

11,000,000

—

AAA to BBB-

Total

$17,380,149

$23,671,620

* Amounts recoverable includes potential payments from related purchased protection for instances where the Fund is the seller of protection. In addition, the Fund has no recourse provisions under the credit derivatives and holds no collateral which can offset or reduce potential payments under a triggering event.

** The period end reference asset security ratings, as rated by any rating organization, are included in the equivalent Standard & Poor’s rating category. The reference asset rating represents the likelihood of a potential credit event on the reference asset which would result in a related payment by the Fund.

Centrally Cleared Interest Rate Swaps at December 31, 2016

Pay/Receive

Premiums

Counterparty

Floating Rate

Fixed Rate

Maturity Date

Notional Amount (000’s)

Received / (Paid)

Value

Six-Month JPY BBA

BAC

Receive

LIBOR

0.468%

11/12/25

JPY

23,000

—

$ (5,046)

Three-Month SEK

BAC

Pay

STIBOR SIDE

1.418

11/12/25

SEK

1,840

—

8,788

Three-Month SEK

BAC

Pay

STIBOR SIDE

0.628

7/8/26

SEK

2,340

—

(8,596)

Three-Month SEK

BAC

Pay

STIBOR SIDE

1.501

12/9/25

SEK

5,120

—

27,534

Three-Month SEK

BAC

Pay

STIBOR SIDE

1.365

8/10/25

SEK

4,580

—

22,468

Three-Month SEK

BAC

Pay

STIBOR SIDE

1.630

7/3/25

SEK

41,685

12,089

323,835

Three-Month NZD

BOA

Pay

BBR FRA

3.353

12/8/26

NZD

9,145

—

(66,612)

Six-Month JPY BBA

BOA

Receive

LIBOR

0.208

12/8/26

JPY

49,000

—

459

Six-Month NOK

GSCOI

Receive

NIBOR NIBR

1.393

9/5/26

NOK

53,985

—

301,399

Six-Month JPY BBA

JPM

Receive

LIBOR

0.595

8/11/25

JPY

29,000

—

(9,516)

Three-Month SEK

JPM

Pay

STIBOR SIDE

1.070

6/7/26

SEK

3,550

—

4,188

Six-Month JPY BBA

JPM

Receive

LIBOR

0.593

7/10/25

JPY

563,000

—

(186,522)

Six-Month JPY BBA

JPM

Receive

LIBOR

0.566

8/6/25

JPY

13,000

—

(3,975)

Six-Month JPY BBA

JPM

Receive

LIBOR

0.100

6/6/26

JPY

35,000

—

2,846

Six-Month JPY BBA

JPM

Receive

LIBOR

0.461

12/9/25

JPY

28,000

—

(5,940)

Total of Centrally Cleared Interest Rate Swaps

12,089

$ 405,310

Over-the-Counter Total Return Swaps at December 31, 2016

Reference Asset

Counterparty

Pay/Receive Total
Return*

Floating Rate

Maturity Date

Notional
Amount

(000’s)

Value

One-Month AUD BBR BBSW

CGAUOPAU Custom Basket

CITNA-B

Receive

plus 50 basis points

3/9/17

AUD

2,881

90,065

One-Month CAD BA CDOR

CGCNOCAD Custom Basket^a

CITNA-B

Receive

plus 80 basis points

3/7/17

CAD

5,571

13,832

GSEHOPCN Custom Basket

GSG

Pay

One-Month HKD HIBOR

HKAB minus 25 basis points

6/22/17

HKD

14,465

(442,721

)

GSOPRUSS Custom Basket^b

GSCOI

Receive

One-Month USD BBA LIBOR

plus 35 basis points

12/7/17

USD

20,512

738,352

GSOPSPS3 Custom Basket^c

GSCOI

Receive

One-Month USD BBA LIBOR

plus 35 basis points

10/7/17

USD

11,097

154,958

JPCMOLNG Custom Basket

JPM

Receive

One-Month USD BBA LIBOR

plus 30 basis points

6/7/17

USD

3,221

42,469

18 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

Over-the-Counter Total Return Swaps (Continued)

Reference Asset

Counterparty

Pay/Receive Total
Return*

Floating Rate

Maturity Date

Notional

Amount
(000’s)

Value

One-Month USD BBA LIBOR

JPCMOSHR Custom Basket

JPM

Pay

minus 85 basis points

6/7/17

USD

3,225

1,090

One-Month EUR EURIBOR

JPEBCACO Custom Basket^d

JPM

Receive

plus 10 basis points

4/6/17

EUR

9,717

650,228

One-Month GBP BBA LIBOR

JPEBUKXO Custom Basket^e

JPM

Receive

plus 20 basis points

4/6/17

GBP

4,755

332,729

One-Month USD BBA LIBOR

OEX Index

GSG

Pay

minus 35 basis points

7/10/17

USD

307

(8,172

)

One-Month USD BBA LIBOR

OEX Index

GSG

Pay

minus 35 basis points

4/13/17

USD

11,002

(62,079

)

PowerShares Senior Loan

One-Month USD BBA LIBOR

Portfolio

CITNA-B

Receive

minus 15 basis points

11/1/17

USD

65,082

53,527

Total of Over-the-Counter Total Return Swaps

1,564,278

* Fund will pay or receive the total return of the reference asset depending on whether the return is positive or negative. For contracts where the Fund has elected to receive the total return of the reference asset if positive, it will be responsible for paying the floating rate and the total return of the reference asset if negative. If the Fund has elected to pay the total return of the reference asset if positive, it will receive the floating rate and the total return of the reference asset if negative.


Custom baskets of securities: The following are the components and weights of the underlying basket of securities
Description	Shares		% of Basket
CGCNOCAD^a:
Alimentation Couche-Tard, Inc., Cl. B		0.08059		1.27%
Boyd Group Income Fund		0.05766		0.91
Canadian Apartment Properties Real Estate Investment Trust		0.16359		2.58
Celestica, Inc.		0.3065		4.84
Cott Corp.		0.32717		5.17
Dollarama, Inc.		0.05		0.79
Empire Co. Ltd., Cl. A		0.2739		4.33
Enbridge Income Fund Holding		0.1463		2.31
FirstService Corp.		0.08565		1.35
Intertape Polymer Group, Inc.		0.20242		3.20
Jean Coutu Group, Inc., Cl. A		0.24123		3.81
Just Energy Group, Inc.		0.67972		10.73
Metro, Inc.		0.12212		1.93
North West Co., Inc. (The)		0.19943		3.15
Parkland Fuel Corp.		0.1792		2.83
Premium Brands Holdings Corp.		0.07077		1.12
Saputo, Inc.		0.10997		1.74
Stella-Jones, Inc.		0.1107		1.75
Uni-Select, Inc.		0.16483		2.60
Western Forest Products, Inc.		2.76017		43.59

		6.33192		100.00%

GSOPRUSS^b:
Achillion Pharmaceuticals		0.012169		0.23%
Advanced Micro Devices		0.044101		0.85
American Eagle Outfitters		0.010928		0.21
Amkor Technology, Inc.		0.01094		0.21
Arena Pharmaceuticals, Inc.		0.0146		0.28
Avon Products, Inc.		0.0313		0.60
BGC Partners, Inc., Cl. A		0.0144		0.28
BioScrip, Inc.		0.0163		0.31
Cobalt International Energy		0.0168		0.32
Coeur Mining, Inc.		0.0114		0.22
Cousins Properties, Inc.		0.0121		0.23
Denbury Resources, Inc.		0.0148		0.29
Diamondrock Hospitality Co.		0.0102		0.20
Eclipse Resources Corp.		0.0142		0.27
Erin Energy Corp.		0.0134		0.26
Exco Resources, Inc.		0.0174		0.34
Exelixis, Inc.		0.0105		0.20
First Bancorp (Puerto Rico)		0.0111		0.21
FNB Corp.		0.0106		0.20
FNFV Group		0.0187		0.36
Genworth Financial, Inc., Cl. A		0.0283		0.55
Gramercy Property Trust		0.0261		0.50
Hecla Mining Co.		0.0228		0.44

19 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


Custom baskets of securities: The following are the components and weights of the underlying basket of securities (Continued)
Description	Shares		% of Basket
GSOPRUSS^b: (Continued)
HRG Group, Inc.		0.0114		0.22%
Investors Bancorp, Inc.		0.0165		0.32
Janus Capital Group, Inc.		0.0102		0.20
LendingClub Corp.		0.0201		0.39
Lexington Realty Trust		0.0137		0.26
McDermott International, Inc.		0.0106		0.20
Medical Properties Trust, Inc.		0.0213		0.41
MGIC Investment Corp.		0.0182		0.35
New Residential Investment		0.0133		0.26
NRG Yield, Inc., Cl. A		0.0108		0.21
NRG Yield, Inc., Cl. C		0.0108		0.21
Office Depot, Inc.		0.0289		0.56
Other Securities Outside Top 50		4.426549		85.29
PDL Biopharma, Inc.		0.0143		0.28
Pure Storage, Inc., Cl. A		0.0102		0.20
Radian Group, Inc.		0.0117		0.23
Sunstone Hotel Investors, Inc.		0.011		0.21
SUPERVALU, Inc.		0.0144		0.28
TherapeuticsMD, Inc.		0.0111		0.21
Travelport Worldwide Ltd.		0.0106		0.20
Umpqua Holdings Corp.		0.0111		0.21
Valhi, Inc.		0.0126		0.24
Valley National Bancorp		0.013		0.25
Viavi Solutions, Inc.		0.0123		0.24
Vonage Holdings Corp.		0.0133		0.26
Washington Prime Group, Inc.		0.0114		0.22
WMIH Corp.		0.015		0.29
Xenith Bankshares, Inc.		0.0127		0.24

		5.190187		100.00%


GSOPSPS3^c:
Abbott Laboratories		0.032604		1.26%
Abbvie, Inc.		0.029029		1.12
Allstate Corp.		0.03227		1.25
Altria Group, Inc.		0.029949		1.16
American International Group		0.023183		0.90
At&T, Inc.		0.045781		1.77
Bank of America Corp.		0.077955		3.02
Bank of New York Mellon Corp.		0.030192		1.17
Bristol-Myers Squibb Co.		0.041474		1.61
Cisco Systems, Inc.		0.047391		1.83
Coca-Cola Co. (The)		0.039132		1.51
Colgate-Palmolive Co.		0.024208		0.94
Comcast Corp., Cl. A		0.030526		1.18
ConocoPhillips		0.028749		1.11
CVS Health Corp.		0.038045		1.47
Danaher Corp.		0.02358		0.91
Dow Chemical Co. (The)		0.043402		1.68
Du Pont (E.I.) De Nemours		0.027348		1.06
Duke Energy Corp.		0.032224		1.25
Eli Lilly & Co.		0.025905		1.00
Exelon Corp.		0.048959		1.89
Ford Motor Co.		0.104011		4.03
General Electric Co.		0.051347		1.99
General Motors Co.		0.037627		1.46
Gilead Sciences, Inc.		0.024358		0.94
Halliburton Co.		0.023095		0.89
Intel Corp.		0.036163		1.40
Kinder Morgan, Inc.		0.054031		2.09
Lowe’s Cos., Inc.		0.025508		0.99
Merck & Co., Inc.		0.022936		0.89
MetLife, Inc.		0.026094		1.01
Microsoft Corp.		0.025316		0.98
Mondelez International, Inc., Cl. A		0.026474		1.02
Monsanto Co.		0.022815		0.88
Morgan Stanley		0.028958		1.12
Nike, Inc., Cl. B		0.034854		1.35
Oracle Corp.		0.040997		1.59

20 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


Custom baskets of securities: The following are the components and weights of the underlying basket of securities (Continued)
Description	Shares		% of Basket
GSOPSPS3^c: (Continued)
Other Securities Outside Top 50		0.734247		28.42%
PayPal Holdings, Inc.		0.039881		1.54
Pfizer, Inc.		0.04977		1.93
QUALCOMM, Inc.		0.022895		0.89
Southern Co. (The)		0.055487		2.15
Starbucks Corp.		0.038271		1.48
Target Corp.		0.037338		1.45
Twenty-First Century Fox, Cl. A		0.049344		1.91
Twenty-First Century Fox, Cl. B		0.048127		1.86
US Bancorp		0.039454		1.53
Verizon Communications, Inc.		0.040909		1.58
Wal-Mart Stores, Inc.		0.029656		1.15
Walt Disney Co. (The)		0.02412		0.93
Wells Fargo & Co.		0.037811		1.46

		2.5838		100.00%


JPEBCACO^d:
Accor SA		15,065		1.89%
Air Liquide SA		8,783		1.10
Airbus Group SE		12,202		1.53
Arcelormittal		62,758		7.88
Axa SA		20,035		2.51
BNP Paribas		8,719		1.09
Bouygues SA		25,795		3.24
Capgemini		6,987		0.88
Carrefour SA		26,467		3.32
Compagnie De Saint Gobain		12,935		1.62
Credit Agricole SA		52,326		6.57
Danone		12,493		1.57
ENGIE		47,899		6.01
Essilor International		8,081		1.01
Kering		3,623		0.45
Klepierre		19,935		2.50
Lafargeholcim Ltd.		8,999		1.13
Legrand SA		13,344		1.67
L’Oreal		5,380		0.68
LVMH Moet Hennessy Louis Vuitton SE		4,241		0.53
Michelin		7,462		0.94
Nokia OYJ		118,207		14.84
Orange SA		54,511		6.84
Pernod Ricard SA		10,833		1.36
Peugeot SA		25,987		3.26
Publicis Groupe		10,902		1.37
Renault SA		5,533		0.69
Safran SA		10,419		1.31
Sanofi		15,652		1.96
Schneider Electric SE		8,646		1.09
Societe Generale SA		11,833		1.49
Sodexo		9,315		1.17
Solvay SA		6,425		0.81
Technip SA		13,400		1.68
Total SA		13,095		1.64
Unibail-Rodamco SE		3,271		0.41
Valeo SA		9,998		1.25
Veolia Environnement		37,560		4.71
Vinci SA		10,505		1.32
Vivendi		37,264		4.68

		796,885		100.00%


JPEBUKXO^e:
3I Group plc		22,495		0.77%
Antofagasta plc		27,876		0.95
Aviva plc		27,962		0.95
BAE Systems plc		43,091		1.47
Barclays plc		68,428		2.34
BP plc		53,201		1.82
British Land Co. plc		20,860		0.71
BT Group plc		48,753		1.66

21 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF INVESTMENTS Continued


Custom baskets of securities: The following are the components and weights of the underlying basket of securities (Continued)
Description	Shares		% of Basket
JPEBUKXO^e: (Continued)
Capita plc		22,550		0.77%
Centrica plc		77,685		2.65
Compass Group plc		19,131		0.65
Direct Line Insurance Group		65,562		2.24
Dixons Carphone plc		39,137		1.34
GKN plc		77,086		2.63
GlaxoSmithKline plc		19,078		0.65
Glencore plc		53,266		1.82
Hammerson plc		25,093		0.86
HSBC Holdings plc		52,772		1.80
Informa plc		37,999		1.30
International Consolidated Airlines Group SA		29,945		1.02
Intu Properties plc		51,474		1.76
ITV plc		65,322		2.23
J Sainsbury plc		74,643		2.55
Kingfisher plc		49,206		1.68
Legal & General Group plc		49,512		1.69
Lloyds Banking Group plc		222,234		7.58
Marks & Spencer Group plc		38,952		1.33
Mediclinic International plc		26,135		0.89
Merlin Entertainment		49,525		1.69
National Grid plc		28,322		0.97
Old Mutual plc		70,089		2.39
Other Securities Outside Top 50		492,351		16.80
Pearson plc		33,896		1.16
Polymetal International plc		28,602		0.98
RELX plc		21,420		0.73
Rolls-Royce Holdings plc		30,629		1.04
Royal Bank of Scotland Group		71,382		2.44
Royal Mail plc		40,498		1.38
RSA Insurance Group plc		37,712		1.29
SABMiller plc		47,426		1.62
Sage Group plc (The)		28,183		0.96
Sky plc		20,675		0.70
Smith & Nephew plc		21,827		0.74
Standard Chartered plc		22,084		0.75
Standard Life plc		32,537		1.11
Taylor Wimpey plc		55,051		1.88
Tesco plc		76,666		2.62
United Utilities Group plc		27,662		0.94
Vodafone Group plc		122,311		4.17
Wm Morrison Supermarkets		87,340		2.98
Worldpay Group plc		74,695		2.55

		2,930,331		100.00%


Over-the-Counter Volatility Swaps at December 31, 2016
Reference Asset	Counterparty	Pay/Receive Volatility*		Strike Price	Maturity Date		Notional Amount			Value
CAD/JPY spot exchange rate	CITNA-B	Pay	$	13.050	2/6/17	CAD	(6,400	)	$	(2,669	)
EUR/CAD spot exchange rate	CITNA-B	Receive		8.550	1/12/17	EUR	4,500			(1,847	)
EUR/CAD spot exchange rate	DEU	Receive		8.250	1/13/17	EUR	4,500			(568	)
EUR/NZD spot exchange rate	CITNA-B	Pay		10.300	1/6/17	EUR	(4,500	)		5,400
EUR/SEK spot exchange rate	DEU	Pay		6.000	1/9/17	EUR	(4,400	)		(9,680	)
GBP/AUD spot exchange rate	JPM	Pay		10.100	2/3/17	GBP	(3,900	)		(5,191	)
GBP/CAD spot exchange rate	JPM	Pay		7.900	1/30/17	GBP	(3,900	)		(8,219	)
GBP/CAD spot exchange rate	DEU	Pay		8.800	1/30/17	GBP	(3,900	)		(3,220	)
GBP/CAD spot exchange rate	HSBC	Pay		9.350	1/31/17	GBP	(3,900	)		(1,923	)
GBP/CAD spot exchange rate	CITNA-B	Pay		8.450	1/30/17	GBP	(3,900	)		(4,422	)
NZD/CHF spot exchange rate	HSBC	Pay		9.300	1/9/17	NZD	(6,700	)		1,443
NZD/CHF spot exchange rate	DEU	Pay		10.000	1/9/17	NZD	(6,600	)		3,851
NZD/USD spot exchange rate	CITNA-B	Receive		11.650	1/26/17	USD	4,800			(6,864	)
NZD/USD spot exchange rate	JPM	Receive		12.050	1/20/17	USD	4,800			(11,232	)
NZD/USD spot exchange rate	CITNA-B	Pay		9.150	1/17/17	USD	(4,800	)		(8,256	)
NZD/USD spot exchange rate	HSBC	Receive		11.150	1/19/17	USD	4,800			(5,232	)
USD/JPY spot exchange rate	JPM	Pay		11.860	1/17/17	USD	(4,800	)		2,640
USD/JPY spot exchange rate	DEU	Pay		11.400	1/17/17	USD	(4,800	)		4,224
USD/JPY spot exchange rate	DEU	Receive		11.650	1/27/17	USD	4,800			(528	)
USD/JPY spot exchange rate	JPM	Receive		11.600	1/23/17	USD	4,800			(3,264	)

22 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

Over-the-Counter Volatility Swaps (Continued)

Reference Asset

Counterparty

Pay/Receive Volatility*

Strike Price

Maturity Date

Notional Amount

Value

USD/SEK spot exchange rate

GSCO-OT

Pay

$ 10.750

1/5/17

USD

(4,800

)

1,824

Total of Over-the-Counter Volatility Swaps

(53,733

)

* Fund will pay or receive the volatility of the reference asset depending on whether the realized volatility of the reference asset exceeds or is less than the strike price. For contracts where the Fund has elected to receive the volatility of the reference asset, it will receive a net payment of the difference between the realized volatility and the strike price multiplied by the notional amount if the realized volatility exceeds the strike price; the Fund will make a net payment of the absolute value of the difference of the realized volatility and the strike price multiplied by the notional amount if the realized volatility is less than the strike price. For contracts where the Fund has elected to pay the volatility of the reference asset, it will make a net payment of the difference between the realized volatility and the strike price multiplied by the notional amount if the realized volatility exceeds the strike price; the Fund will receive a net payment of the absolute value of the difference of the realized and the strike price multiplied by the notional amount if the realized volatility is less than the strike price.


Glossary:
Counterparty Abbreviations
BAC		Barclays Bank plc
BNP		BNP Paribas
BOA		Bank of America NA
CITNA-B		Citibank NA
DEU		Deutsche Bank AG
GSCOI		Goldman Sachs International
GSCO-OT		Goldman Sachs Bank USA
GSG		Goldman Sachs Group, Inc. (The)
HSBC		HSBC Bank USA NA
JPM		JPMorgan Chase Bank NA
MOS-A		Morgan Stanley
MSCO		Morgan Stanley Capital Services, Inc.
NOM		Nomura Global Financial Products, Inc.
TDB		Toronto Dominion Bank

Currency abbreviations indicate amounts reporting in currencies
AUD		Australian Dollar
BRL		Brazilian Real
CAD		Canadian Dollar
CHF		Swiss Franc
CLP		Chilean Peso
CNH		Offshore Chinese Renminbi
COP		Colombian Peso
CZK		Czech Koruna
EUR		Euro
GBP		British Pound Sterling
HKD		Hong Kong Dollar
HUF		Hungarian Forint
IDR		Indonesian Rupiah
JPY		Japanese Yen
KRW		South Korean Won
MXN		Mexican Nuevo Peso
NOK		Norwegian Krone
NZD		New Zealand Dollar
PLN		Polish Zloty
RUB		Russian Ruble
SEK		Swedish Krona
SGD		Singapore Dollar
THB		Thailand Baht
TRY		New Turkish Lira
TWD		New Taiwan Dollar
ZAR		South African Rand

Definitions
BA CDOR		Canada Bankers Acceptances Deposit Offering Rate
BBA LIBOR		British Bankers’ Association London - Interbank Offered Rate
BBR		Bank Bill Rate
BBR FRA		Bank Bill Forward Rate Agreement
BBSW		Bank Bill Swap Reference Rate (Australian Financial Market)
BONO		Spanish Government Bonds
BTP		Italian Treasury Bonds
BUND		German Federal Obligation
CDX.HY.24		Merkit CDX High Yield Index
CDX.HY.25		Markit CDX High Yield Index
CDX.IG.25		Markit CDX Investment Grade Index
CDX.NA.HY.21		Markit CDX North American High Yield
CDX.NA.HY.25		Markit CDX North American High Yield

23 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


CONSOLIDATED STATEMENT OF INVESTMENTS Continued


Definitions (Continued)
CGAUOPAU		Custom Basket of Securities
EURIBOR		Euro Interbank Offered Rate
FTSE 100		United Kingdom 100 most highly capitalized companies on the London Stock Exchange
GSEHOPCN		Custom Basket of Securities
HIBOR		Hong Kong Interbank Offered Rate
HKAB		Hong Kong Association of Banks
iTraxx.Main.24		Credit Default Swap Trading Index for a Specific Basket of Securities
iTraxx.Main.26		Credit Default Swap Trading Index for a Specific Basket of Securities
JPCMOLNG		Custom Basket of Securities
JPCMOSHR		Custom Basket of Securities
MLHKOPCB		Custom Basket of Securities
NIBOR NIBR		Norwegian Interbank Offered Rate
OAT		French Gorvernment Bonds
OEX		S&P 100 Index
S&P		Standard & Poor’s
STIBOR SIDE		Stockholm Interbank Offered Rate
TSX 60		60 largest companies on the Toronto Stock Exchange

Exchange Abbreviations
CBE		Chicago Board Options Exchange
CBT		Chicago Board of Trade
CME		Chicago Mercantile Exchanges
CMX		Commodity Exchange, Inc.
EUX		European Stock Exchange
ICE		IntercontinentalExchange
LME		London Metal Exchange
MON		Montreal Exchange
NYB		New York Board of Trade
NYF		New York Futures Exchange
NYM		New York Mercantile Exchange
PAR		Paris Stock Exchange
SFE		Sydney Futures Exchange

See accompanying Notes to Consolidated Financial Statements.

24 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES December 31, 2016


Assets
Investments, at value—see accompanying consolidated statement of investments:
Unaffiliated companies (cost $323,888,360)	$	333,758,371
Affiliated companies (cost $57,727,699)		57,727,699
		391,486,070
Cash		2,622,941
Cash used for collateral on futures		768,112
Cash used for collateral on centrally cleared swaps		3,677,063
Deposits with broker for securities sold short		40,075,810
Deposits with broker for foreign securities sold short (cost $3,963,252)		3,912,230
Unrealized appreciation on forward currency exchange contracts		4,565,950
Swaps, at value (premiums paid $218,943)		2,112,098
Centrally cleared swaps, at value (net premiums paid $492,339)		1,212,507
Receivables and other assets:
Interest and dividends		1,454,243
Investments sold		442,608
Variation margin receivable		153,069
Shares of beneficial interest sold		101,939
Other		18,640
Total assets		452,603,280
Liabilities
Securities sold short, at value (proceeds $37,562,699) - see accompanying Consolidated statement of investments		39,974,692
Unrealized depreciation on forward currency exchange contracts		1,280,866
Options written, at value (net premiums received $2,075,872)		2,031,592
Swaps, at value (net premiums received $211,780)		946,498
Centrally cleared swaps, at value (net premiums received $735,328)		2,278,028
Payables and other liabilities:
Investments purchased (including $1,934,751 purchased on a when-issued or delayed delivery basis)		2,569,425
Variation margin payable		372,673
Dividends on short sales		64,743
Trustees’ compensation		5,491
Shareholder communications		3,599
Distribution and service plan fees		515
Shares of beneficial interest redeemed		101
Other		81,887
Total liabilities		49,610,110
Net Assets	$	402,993,170


Composition of Net Assets
Par value of shares of beneficial interest	$	40,773
Additional paid-in capital		413,697,088
Accumulated net investment loss		(1,020,555)
Accumulated net realized loss on investments and foreign currency transactions		(20,391,824)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		10,667,688
Net Assets	$	402,993,170


Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $400,449,043 and 40,515,373 shares of beneficial interest outstanding)		$9.88
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $2,544,127 and 257,806 shares of beneficial interest outstanding)		$9.87

See accompanying Notes to Consolidated Financial Statements.

25 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENT OF OPERATIONS For the Year Ended December 31, 2016


Investment Income
Interest (net of foreign withholding taxes of $23,500)	$	7,555,090
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $56,439)		2,784,508
Affiliated companies		130,187
Total investment income		10,469,785
Expenses
Management fees		4,223,739
Distribution and service plan fees - Service shares		5,123
Transfer and shareholder servicing agent fees:
Non-Service shares		408,842
Service shares		2,054
Shareholder communications:
Non-Service shares		17,935
Service shares		93
Dividends on short sales		895,600
Custodian fees and expenses		131,257
Financing expense from short sales		98,514
Trustees’ compensation		33,000
Borrowing fees		7,177
Other		231,537
Total expenses		6,054,871
Less reduction to custodian expenses		(1,136)
Less waivers and reimbursements of expenses		(153,229)
Net expenses		5,900,506
Net Investment Income		4,569,279
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments transactions in unaffiliated companies (including premiums on options exercised)		(13,586,074)
Closing and expiration of option contracts written		6,379,729
Closing and expiration of futures contracts		(7,913,621)
Foreign currency transactions		(4,762,171)
Short positions		2,049,395
Swap contracts		2,606,362
Net realized loss		(15,226,380)
Net change in unrealized appreciation/depreciation on:
Investment transactions		29,540,154
Translation of assets and liabilities denominated in foreign currencies		(983,348)
Futures contracts		1,294,797
Option contracts written		(185,743)
Short positions		(7,855,565)
Swap contracts		4,003,448
Net change in unrealized appreciation/depreciation		25,813,743
Net Increase in Net Assets Resulting from Operations	$	15,156,642

See accompanying Notes to Consolidated Financial Statements.

26 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended		Year Ended
	December 31, 2016		December 31, 2015¹
Operations
Net investment income	$	4,569,279	$	4,065,328
Net realized loss		(15,226,380)		(4,481,159)
Net change in unrealized appreciation/depreciation		25,813,743		(15,637,443)
Net increase (decrease) in net assets resulting from operations		15,156,642		(16,053,274)
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(5,549,952)		(1,416,586)
Service shares		(29,481)		(1,965)
		(5,579,433)		(1,418,551)
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		(15,372,890)		161,111,575
Service shares		657,532		587,007
		(14,715,358)		161,698,582
Net Assets
Total increase (decrease)		(5,138,149)		144,226,757
Beginning of period		408,131,319		263,904,562

End of period (including accumulated net investment loss of $1,020,555 and $5,176,170¹, respectively)	$	402,993,170	$	408,131,319

1. Net investment income and net realized gain (loss) for the year ended December 31, 2015 includes an adjustment for a prior period reclassification. Please see Note 11 of the accompanying Notes to Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

27 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

CONSOLIDATED FINANCIAL HIGHLIGHTS


	Year Ended		Year Ended		Year Ended		Period Ended
Non-Service Shares	December 31,		December 31,		December 31,		December 31,
Non-Service Shares	2016		2015¹		2014¹		2013²
Per Share Operating Data
Net asset value, beginning of period		$9.66		$10.04		$9.92		$10.00
Income (loss) from investment operations:
Net investment income (loss)³		0.11		0.11		0.08		(0.02)
Net realized and unrealized gain (loss)		0.25		(0.46)		0.52		(0.05)
Total from investment operations		0.36		(0.35)		0.60		(0.07)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.14)		(0.03)		(0.25)		(0.01)
Distributions from net realized gain		0.00		0.00		(0.21)		0.00
Tax return of capital distribution		0.00		0.00		(0.02)		0.00
Total dividends and/or distributions to shareholders		(0.14)		(0.03)		(0.48)		(0.01)
Net asset value, end of period		$9.88		$9.66		$10.04		$9.92


Total Return, at Net Asset Value⁴		3.71%		(3.45)%		6.02%		(0.69)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$400,449		$406,286		$262,573		$9,917
Average net assets (in thousands)		$408,810		$363,975		$161,988		$9,827
Ratios to average net assets:⁵
Net investment income (loss)		1.11%		1.11%		0.77%⁶		(1.85)%⁶
Expenses excluding specific expenses listed below		1.23%		1.24%		1.33%		7.16%
Dividends and/or interest expense on securities sold short		0.22%		0.17%		0.08%		0.00%
Borrowing expenses on securities sold short		0.02%		0.05%		0.02%		0.00%
Interest and fees from borrowings		0.00%⁷		0.00%⁷		0.00%		0.00%
Total expenses⁸		1.47%		1.46%		1.43%⁶		7.16%⁶
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.43%		1.41%		1.31%⁶		3.33%⁶
Portfolio turnover rate		93%		67%		147%		11%

1. Net investment income per share, net realized and unrealized gain (loss) per share and the net investment income ratio include an adjustment for a prior period reclassification for the years ended December 31, 2014 and 2015. Please see Note 11 of the accompanying Notes to Financial Statements.

2. For the period from November 14, 2013 (inception of offering) to December 31, 2013.

3. Per share amounts calculated based on the average shares outstanding during the period.

4. Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions 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 less than one full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

5. Annualized for periods less than one full year.

6. Includes the Fund’s shares of the allocated expenses and/or net investment income from the master funds.

7. Less than 0.005%.

8. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.48	%
Year Ended December 31, 2015	1.47	%
Year Ended December 31, 2014	1.45	%
Period Ended December 31, 2013	7.18	%

See accompanying Notes to Consolidated Financial Statements.

28 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA


	Year Ended		Year Ended		Year Ended		Period Ended
Service Shares	December 31,		December 31,		December 31,		December 31,
Service Shares	2016		2015¹		2014¹		2013²
Per Share Operating Data
Net asset value, beginning of period		$9.65		$10.03		$9.92		$10.00
Income (loss) from investment operations:
Net investment income (loss)³		0.08		0.08		0.08		(0.03)
Net realized and unrealized gain (loss)		0.26		(0.45)		0.50		(0.04)
Total from investment operations		0.34		(0.37)		0.58		(0.07)
Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.12)		(0.01)		(0.25)		(0.01)
Distributions from net realized gain		0.00		0.00		(0.21)		0.00
Tax return of capital distribution		0.00		0.00		(0.01)		0.00
Total dividends and/or distributions to shareholders		(0.12)		(0.01)		(0.47)		(0.01)
Net asset value, end of period		$9.87		$9.65		$10.03		$9.92


Total Return, at Net Asset Value⁴		3.49%		(3.68)%		5.90%		(0.72)%

Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,544		$1,845		$1,332		$10
Average net assets (in thousands)		$2,054		$1,695		$335		$10
Ratios to average net assets:⁵
Net investment income (loss)		0.85%		0.85%		0.78%⁶		(2.12)%⁶
Expenses excluding specific expenses listed below		1.48%		1.48%		1.68%		7.43%
Dividends and/or interest expense on securities sold short		0.22%		0.17%		0.08%		0.00%
Borrowing expenses on securities sold short		0.02%		0.05%		0.02%		0.00%
Interest and fees from borrowings		0.00%⁷		0.00%⁷		0.00%		0.00%
Total expenses⁸		1.72%		1.70%		1.78%⁶		7.43%⁶
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.68%		1.65%		1.67%⁶		3.50%⁶
Portfolio turnover rate		93%		67%		147%		11%

2. For the period from November 14, 2013 (inception of offering) to December 31, 2013.

3. Per share amounts calculated based on the average shares outstanding during the period.

5. Annualized for periods less than one full year.

6. Includes the Fund’s shares of the allocated expenses and/or net investment income from the master funds.

7. Less than 0.005%.

8. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.73	%
Year Ended December 31, 2015	1.71	%
Year Ended December 31, 2014	1.80	%
Period Ended December 31, 2013	7.45	%

See accompanying Notes to Consolidated Financial Statements.

29 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer Global Multi-Alternatives Fund/VA (the “Fund”) is a separate series of Oppenheimer Variable Account Funds, a diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek total return. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. The Sub-Adviser has entered into a sub-sub-advisory agreement with Barings Real Estate Advisers LLC, formerly Cornerstone Real Estate Advisers LLC, and OFI SteelPath, Inc. (collectively, the “Sub-Sub-Advisers”). Effective January 1, 2017, Barings Real Estate Advisers LLC is known as Barings LLC. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Basis for Consolidation. The Fund has established a Cayman Islands exempted company, Oppenheimer Global Multi-Alternatives Fund/VA (Cayman) Ltd., which is wholly-owned and controlled by the Fund (the “Subsidiary”). The Fund and Subsidiary are both managed by the Manager. The Fund may invest up to 25% of its total assets in the Subsidiary. The Subsidiary invests primarily in commodity-linked derivatives (including commodity futures, financial futures, options and swap contracts) and certain fixed-income securities and other investments that may serve as margin or collateral for its derivatives positions. Investments in the Subsidiary are expected to provide the Fund with exposure to commodities markets within the limitations of the federal tax requirements that apply to the Fund. The Subsidiary is subject to the same investment restrictions and guidelines, and follows the same compliance policies and procedures, as the Fund.

The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated. At period end, the Fund owned 21,023 shares with net assets of $11,445,792 in the Subsidiary.

Other financial information at period end:


Total market value of investments	$	10,758,662
Net assets	$	11,445,792
Net income (loss)	$	(137,501	)
Net realized gain (loss)	$	612,819
Net change in unrealized appreciation/depreciation	$	336,328

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

30 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

2. Significant Accounting Policies (Continued)

annually or at other times as deemed necessary by the Manager.

Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Consolidated Statement of Operations, are amortized or accreted daily.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Undistributed

Net Investment

Income

Undistributed
Long-Term
Gain

Accumulated
Loss
Carryforward^1,2,3,4

Net Unrealized
Appreciation
Based on cost of
Securities and
Other Investments
for Federal Income
Tax Purposes

$3,552,520

$—

$14,646,720

$3,050,070

1. At period end, the Fund had $14,645,163 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details

31 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring
No expiration	$	14,645,163

2. The Fund had $1,557 of straddle losses which were deferred.

3. During the reporting period, the Fund did not utilize any capital loss carryforward.

4. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.

Reduction

to Paid-in Capital

Reduction

to Accumulated
Net Investment
Loss

Increase
to Accumulated Net

Realized Loss on
Investments

$4,826,314

$5,162,070

$335,756

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015
Distributions paid from:
Ordinary income	$	5,579,433	$	1,418,551


Federal tax cost of securities	$	385,874,340
Federal tax cost of other investments		(106,958,092)

Total federal tax cost	$	278,916,248

Gross unrealized appreciation	$	19,473,301
Gross unrealized depreciation		(16,423,231)

Net unrealized appreciation	$	3,050,070

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

32 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

3. Securities Valuation (Continued)

exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority): (1) a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.
Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.
Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.
Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

Classifications

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation.

Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are

33 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

categorized in the following hierarchy under applicable financial accounting standards:

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Consolidated Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices			Level 2— Other Significant Observable Inputs			Level 3— Significant Unobservable Inputs		Value
Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	4,887,593		$	172,551		$	—	$	5,060,144
Consumer Staples		5,057,839			—			—		5,057,839
Energy		29,517,429			46,264			—		29,563,693
Financials		19,079,980			4,236,566			—		23,316,546
Health Care		12,862,363			959,490			6,316		13,828,169
Industrials		17,209,045			—			—		17,209,045
Information Technology		13,005,312			—			2		13,005,314
Materials		6,837,713			—			—		6,837,713
Telecommunication Services		4,027,909			—			—		4,027,909
Utilities		3,520,383			—			—		3,520,383
Preferred Stocks		482,758			823,150			—		1,305,908
Rights, Warrants and Certificates		8,312			1,665			—		9,977
Asset-Backed Securities		—			14,141,566			1,923,696		16,065,262
Mortgage-Backed Obligation		—			2,064,231			—		2,064,231
Foreign Government Obligations		—			7,608,528			—		7,608,528
Non-Convertible Corporate Bonds and Notes		—			34,590,391			50		34,590,441
Convertible Corporate Bond and Note		—			628,500			—		628,500
Corporate Loans		—			12,765,254			—		12,765,254
Event-Linked Bonds		—			56,185,456			—		56,185,456
Short-Term Notes		—			72,869,194			—		72,869,194
Investment Companies		63,570,684			—			—		63,570,684
Exchange-Traded Option Purchased		3,640			—			—		3,640
Over-the-Counter Options Purchased		—			2,031,992			—		2,031,992
Over-the-Counter Interest Rate Swaptions Purchased		—			360,248			—		360,248

Total Investments, at Value		180,070,960			209,485,046			1,930,064		391,486,070
Other Financial Instruments:
Swaps, at value		—			2,112,098			—		2,112,098
Centrally cleared swaps, at value		—			1,212,507			—		1,212,507
Futures contracts		960,014			—			—		960,014
Forward currency exchange contracts		—			4,565,950			—		4,565,950

Total Assets	$	181,030,974		$	217,375,601		$	1,930,064	$	400,336,639


Liabilities Table
Other Financial Instruments:
Investment Company Securities Sold Short	$	(2,305,719	)	$	—		$	—	$	(2,305,719)
Common Stock Securities Sold Short		(33,266,980	)		(4,401,993	)		—		(37,668,973)
Swaps, at value		—			(946,498	)		—		(946,498)
Centrally cleared swaps, at value		—			(2,278,028	)		—		(2,278,028)
Options written, at value		—			(2,031,592	)		—		(2,031,592)
Futures contracts		(1,232,675	)		—			—		(1,232,675)
Forward currency exchange contracts		—			(1,280,866	)		—		(1,280,866)

Total Liabilities	$	(36,805,374	)	$	(10,938,977	)	$	—	$	(47,744,351)

34 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

3. Securities Valuation (Continued)

The table below shows the transfers between Level 2 and Level 3. The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.


	Transfers into Level 2**		Transfers out of Level 2*			Transfers into Level 3*		Transfers out of Level 3**

Assets Table
Investments, at Value:
Asset-Backed Securities	$	1,394,054	$	(2,557,750	)	$	2,557,750	$	(1,394,054)

Total Assets	$	1,394,054	$	(2,557,750	)	$	2,557,750	$	(1,394,054)

* Transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market activity for these securities.

** Transferred from Level 3 to Level 2 due to the availability of market data for this security.

4. Investments and Risks

Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (“Affiliated Funds”). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services to, the Affiliated Funds. When applicable, the Fund’s investments in Affiliated Funds are included in the Consolidated Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Affiliated Funds.

Event-Linked Bonds. The Fund may invest in “event-linked” bonds. Event-linked bonds, which are sometimes referred to as “catastrophe” bonds, are fixed income securities for which the return of principal and payment of interest is contingent on the non-occurrence of a specific trigger event, such as a hurricane, earthquake, or other occurrence that leads to physical or economic loss. If the trigger event occurs prior to maturity, the Fund may lose all or a portion of its principal in addition to interest otherwise due from the security. Event-linked bonds may expose the Fund to certain other risks, including issuer default, adverse regulatory or jurisdictional interpretations, liquidity risk and adverse tax consequences. The Fund records the net change in market value of event-linked bonds on the Consolidated Statement of Operations as a change in unrealized appreciation or depreciation on investments. The Fund records a realized gain or loss on the Consolidated Statement of Operations upon the sale or maturity of such securities.

35 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

4. Investments and Risks (Continued)

At period end, the Fund had purchased securities issued on a when-issued or delayed delivery basis as follows:


	When-Issued or
	Delayed Delivery
	Basis Transactions
Purchased securities		$1,934,751


Cost			$1,764,185
Market Value			$1,471,295
Market Value as % of Net Assets			0.37%

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares. The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 96% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in

36 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

5. Market Risk Factors (Continued)

the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

6. Use of Derivatives

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Such contracts are traded in the OTC inter-bank currency dealer market.

During the reporting period, the Fund had daily average contract amounts on forward contracts to buy and sell of $115,314,500 and $180,011,486,

37 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

respectively.

Futures Contracts

The Fund has purchased futures contracts on various bonds and notes to increase exposure to interest rate risk. The Fund has sold futures contracts on various bonds and notes to decrease exposure to interest rate risk.

The Fund has purchased futures contracts on various equity indexes to increase exposure to equity risk.

The Fund has sold futures contracts on various equity indexes to decrease exposure to equity risk.

The Fund has purchased futures contracts, which have values that are linked to the price movement of the related volatility indexes, in order to increase exposure to volatility risk.

The Fund has sold futures contracts, which have values that are linked to the price movement of the related volatility indexes, in order to decrease exposure to volatility risk.

The Fund has purchased futures contracts, which have values that are linked to the price movement of the related commodities, in order to increase exposure to commodity risk.

The Fund has sold futures contracts, which have values that are linked to the price movement of the related commodities, in order to decrease exposure to commodity risk.

During the reporting period, the Fund had an ending monthly average market value of $40,429,651 and $103,611,269 on futures contracts purchased and sold, respectively.

Option Activity

Options can be traded through an exchange or through a privately negotiated arrangement with a dealer in an OTC transaction. Options traded through an exchange are generally cleared through a clearinghouse (such as The Options Clearing Corporation). The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Consolidated Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Consolidated Statement of Operations.

During the reporting period, the Fund had an ending monthly average market value of $354,090 and $863,558 on purchased call options and

38 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

6. Use of Derivatives (Continued)

purchased put options, respectively.

The Fund has written call options on treasury and/or euro futures to decrease exposure to interest rate risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the reporting period, the Fund had an ending monthly average market value of $934,318 and $648,185 on written call options and written put options, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Written option activity for the reporting period was as follows:


	Number of Contracts		Amount of Premiums
Options outstanding as of
December 31, 2015		5,400,003,810	$	609,381
Options written		2,379,799,459,880		17,553,603
Options closed or expired		(337,503,960,000)		(6,379,729)
Options exercised		(1,529,891,698,690)		(9,707,383)

Options outstanding as of
December 31, 2016		517,803,805,000	$	2,075,872

Swap Contracts

39 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

periodic fee paid over the life of the contract.

The Fund has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual issuers and/or indexes of issuers.

For the reporting period, the Fund had ending monthly average notional amounts of $64,377,846 and $19,897,953 on credit default swaps to buy protection and credit default swaps to sell protection, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

For the reporting period, the Fund had ending monthly average notional amounts of $19,749,223 and $20,735,535 on interest rate swaps which pay a fixed rate and interest rate swaps which receive a fixed rate, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

The Fund has entered into total return swaps on various equity securities or indexes to increase exposure to equity risk. These equity risk related total return swaps require the Fund to pay a floating reference interest rate, and an amount equal to the negative price movement of securities or an index (expressed as a percentage) multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same securities or index (expressed as a percentage) multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities.

The Fund has entered into total return swaps on various equity securities or indexes to decrease exposure to equity risk. These equity risk related total return swaps require the Fund to pay an amount equal to the positive price movement of securities or an index (expressed as a percentage) multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities. The Fund will receive payments of a floating reference interest rate and an amount equal to the negative price movement of the same securities or index (expressed as a percentage) multiplied by the notional amount of the contract.

The Fund has entered into total return swaps to increase exposure to the credit risk of various indexes or basket of securities. These credit risk related total return swaps require the Fund to pay to, or receive payments from, the counterparty based on the movement of credit spreads of the related indexes or securities.

The Fund has entered into total return swaps to decrease exposure to the credit risk of various indexes or basket of securities. These credit risk related total return swaps require the fund to pay to, or receive payments from, the counterparty based on the movement of credit spreads of the related indexes or securities.

For the reporting period, the Fund had ending monthly average notional amounts of $166,573,688 and $35,289,655 on total return swaps which are long the reference asset and total return swaps which are short the reference asset, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Volatility Swap Contracts. A volatility swap is an agreement between counterparties to exchange periodic payments based on the measured volatility of a reference security, index, currency or other reference investment over a specified time frame. One cash flow is typically based on the realized volatility of the reference investment as measured by changes in its price or level over the specified time period while the other cash flow is based on a specified rate representing expected volatility for the reference investment at the time the swap is executed, or the measured volatility

40 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

6. Use of Derivatives (Continued)

of a different reference investment over the specified time period. The appreciation or depreciation on a volatility swap will typically depend on the magnitude of the reference investment’s volatility, or size of the movements in its price, over the specified time period, rather than general directional increases or decreases in its price.

Volatility swaps are less standard in structure than other types of swaps and provide pure, or isolated, exposure to volatility risk of the specific underlying reference investment. Volatility swaps are typically used to speculate on future volatility levels, to trade the spread between realized and expected volatility, or to decrease the volatility exposure of investments held by the Fund.

Variance swaps are a type of volatility swap where counterparties agree to exchange periodic payments based on the measured variance (or the volatility squared) of a reference security, index, or other reference investment over a specified time period. At payment date, a net cash flow will be exchanged based on the difference between the realized variance of the reference investment over the specified time period and the specified rate representing expected variance for the reference investment at the time the swap is executed multiplied by the notional amount of the contract.

The Fund has entered into volatility swaps to increase exposure to the volatility risk of various reference investments. These types of volatility swaps require the Fund to pay the measured volatility and receive a fixed rate payment. If the measured volatility of the related reference investment increases over the period, the swaps will depreciate in value. Conversely, if the measured volatility of the related reference investment decreases over the period, the swaps will appreciate in value.

The Fund has entered into volatility swaps to decrease exposure to the volatility risk of various reference investments. These types of volatility swaps require the Fund to pay a fixed rate payment and receive the measured volatility. If the measured volatility of the related reference investment increases over the period, the swaps will appreciate in value. Conversely, if the measured volatility of the related reference investment decreases over the period, the swaps will depreciate in value.

The Fund has entered into variance swaps to increase exposure to the volatility risk of various reference investments. These types of volatility swaps require the Fund to make a payment if the measured price variance of the reference investment exceeds the specified fixed rate. If the measured variance of the related reference investment increases over the period, the swaps will depreciate in value. Conversely, if the measured variance of the related reference investment decreases over the period, the swaps will appreciate in value.

The Fund has entered into variance swaps to decrease exposure to the volatility risk of various reference investments. These types of volatility swaps require the Fund to make a payment if the measured price variance of the reference asset is less than the specified fixed rate. If the measured variance of the related reference investment increases over the period, the swaps will appreciate in value. Conversely, if the measured variance of the related reference investment decreases over the period, the swaps will depreciate in value.

For the reporting period, the Fund had ending monthly average notional amounts of $47,802 and $24,469 on volatility swaps which pay measured volatility/variance and volatility swaps which receive measured volatility/variance, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Swaption Transactions

During the reporting period, the Fund had an ending monthly average market value of $364,271 on purchased swaptions.

41 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform.

At period end, the Fund has required certain counterparties to post collateral of $7,182,841.

The following table presents by counterparty the Fund’s OTC derivative assets net of the related collateral pledged by the Fund at period end:


			Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Counterparty	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities*		Financial Instruments Available for Offset		Financial Instruments Collateral Received**		Cash Collateral Received**		Net Amount
Bank of America NA	$	1,527,443	$	(525,990)	$	(1,001,453)	$	–	$	–
Barclays Bank plc		5,602		(5,602)		–		–		–
BNP Paribas		11,151		–		–		–		11,151
Citibank NA		1,441,183		(316,768)		(1,124,415)		–		–
Deutsche Bank AG		217,022		(217,022)		–		–		–
Goldman Sachs Bank USA		1,060,156		(862,367)		(197,789)		–		–
Goldman Sachs International		1,253,558		–		(814,469)		–		439,089
HSBC Bank USA NA		1,607,698		(121,291)		–		(1,486,407)		–

42 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

6. Use of Derivatives (Continued)


			Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Counterparty	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities*		Financial Instruments Available for Offset		Financial Instruments Collateral Received**		Cash Collateral Received**		Net Amount
JPMorgan Chase Bank NA	$	1,820,699	$	(369,863)		$ (1,450,836)	$	–	$	–
Morgan Stanley		4,315		–		–		–		4,315
Morgan Stanley Capital Services, Inc.		79,020		(17,384)		–		–		61,636
Toronto Dominion Bank		42,441		(42,347)		–		–		94

	$	9,070,288	$	(2,478,634)	$	(4,588,962)	$	(1,486,407)	$	516,285

The following table presents by counterparty the Fund’s OTC derivative liabilities net of the related collateral pledged by the Fund at period end:

Gross Amounts Not Offset in the Consolidated Statement of

Assets & Liabilities

Counterparty

Gross Amounts Not Offset
in the Consolidated
Statement of Assets
& Liabilities*

Financial Instruments
Available
for Offset

Financial Instruments
Collateral
Pledged**

Cash Collateral Pledged**

Net Amount

Bank of America NA

(525,990)

525,990

–

$–

–

Barclays Bank plc

(63,505)

5,602

–

(57,903)

Citibank NA

(316,768)

316,768

–

Deutsche Bank AG

(834,953)

217,022

617,931

–

Goldman Sachs Bank USA

(862,367)

862,367

–

Goldman Sachs Group, Inc. (The)

(721,388)

–

(721,388)

HSBC Bank USA NA

(121,291)

121,291

–

JPMorgan Chase Bank NA

(369,863)

369,863

–

Morgan Stanley Capital Services, Inc.

(17,384)

17,384

–

Nomura Global Financial Products, Inc.

(383,100)

–

383,100

–

Toronto Dominion Bank

(42,347)

42,347

–

(4,258,956)

2,478,634

1,001,031

–

(779,291)

The following table presents the valuations of derivative instruments by risk exposure as reported within the Consolidated Statement of Assets and Liabilities at period end:

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Consolidated

Statement of Assets

and Liabilities Location

Value

Consolidated

Statement of Assets

and Liabilities Location

Value

Credit contracts

Swaps, at value

15,466

Swaps, at value

360,411

Equity contracts

Swaps, at value

2,077,250

Swaps, at value

512,972

Volatility contracts

Swaps, at value

19,382

Swaps, at value

73,115

Credit contracts

Centrally cleared swaps, at value

520,990

Centrally cleared swaps,

at value

1,991,821

Interest rate contracts

Centrally cleared swaps, at value

691,517

Centrally cleared swaps, at value

286,207

Commodity contracts

Variation margin receivable

16,763

Variation margin payable

91,742

Equity contracts

Variation margin receivable

109,024

Variation margin payable

169,012

Interest rate contracts

Variation margin receivable

27,282

Variation margin payable

111,919

Unrealized appreciation on

Unrealized depreciation on

Forward currency

forward currency exchange

exchange contracts

contracts

4,565,950

contracts

1,280,866

Forward currency

exchange contracts

Options written, at value

2,031,592

Equity contracts

Investments, at value

3,640

Forward currency

exchange contracts

Investments, at value

2,031,992

Interest rate contracts

Investments, at value

360,248

43 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

6. Use of Derivatives (Continued)

Asset Derivatives

Liability Derivatives

Derivatives

Not Accounted

for as Hedging

Instruments

Consolidated

Statement of Assets

and Liabilities Location

Value

Consolidated

Statement of Assets
and Liabilities
Location

Value

Total

10,439,504

6,909,657

*Includes only the current day’s variation margin. Prior variation margin movements have been reflected in cash on the Consolidated Statement of Assets and Liabilities upon receipt or payment.

**Amounts relate to purchased option contracts and purchased swaption contracts, if any.

The effect of derivative instruments on the Consolidated Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investment from unaffiliated companies (including premiums on options exercised)*		Closing and expiration of option contracts written		Closing and expiration of futures contracts		Foreign currency transactions		Swap contracts		Total
Commodity contracts	$	—	$	—	$	612,819	$	—	$	—	$	612,819
Credit contracts		—		—		—		—		(2,069,356)		(2,069,356)
Equity contracts		(782,951)		—		(9,336,056)		—		4,729,506		(5,389,501)
Forward currency exchange contracts		(551,815)		6,379,729		—		(4,536,524)		—		1,291,390
Interest rate contracts		(407,472)		—		243,838		—		378,122		214,488
Volatility contracts		—		—		565,778		—		(431,910)		133,868

Total	$	(1,742,238)	$	6,379,729	$	(7,913,621)	$	(4,536,524)	$	2,606,362	$	(5,206,292)

*Includes purchased option contracts, purchased swaption contracts, written option contracts exercised and written swaption contracts exercised, if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives

Derivatives Not Accounted for as Hedging Instruments	Investments*		Option contracts written		Futures contracts		Translation of assets and liabilities denominated in foreign currencies		Swap contracts		Total
Commodity contracts	$	—	$	—	$	116,314	$	—	$	—	$	116,314
Credit contracts		—		—		—		—		520,531		520,531
Equity contracts		190,109		51,594		932,537		—		3,058,424		4,232,664
Forward currency exchange contracts		493,965		(237,337)		—		(863,245)		—		(606,617)
Interest rate contracts		167,174		—		93,927		—		295,360		556,461
Volatility contracts		—		—		152,019		—		129,133		281,152

Total	$	851,248	$	(185,743)	$	1,294,797	$	(863,245)	$	4,003,448	$	5,100,505

*Includes purchased option contracts and purchased swaption contracts, if any.

7. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016					Year Ended December 31, 2015
	Shares		Amount			Shares		Amount
Non-Service Shares
Sold		133,545		$	1,338,377		15,762,717		$	159,728,797
Dividends and/or distributions reinvested		560,049			5,544,486		143,442			1,382,778
Redeemed		(2,232,493)			(22,255,753)		—			—
Net increase (decrease)		(1,538,899)		$	(15,372,890)		15,906,159		$	161,111,575

44 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

7. Shares of Beneficial Interest (Continued)


	Year Ended December 31, 2016						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount

Service Shares
Sold		103,428		$	1,019,688			145,309		$	1,456,569
Dividends and/or distributions reinvested		2,972			29,364			203			1,954
Redeemed		(39,783	)		(391,520	)		(87,055	)		(871,516	)

Net increase		66,617		$	657,532			58,457		$	587,007

8. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales
Investment securities	$	202,793,882	$	230,803,831

9. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule
Up to $500 million		1.00%
Next $500 million		0.95
Next $4 billion		0.90
Over $5 billion		0.88

The Fund’s effective management fee for the reporting period was 1.00% of average annual net assets before any Subsidiary management fees or any applicable waivers.

Sub-Sub-Adviser Fees. The Sub-Adviser retains the Sub-Sub-Adviser to provide the day-today portfolio management of the Fund. Under the Sub-Sub-Advisory Agreement, the Sub-Adviser pays the Sub-Sub-Adviser an annual fee in monthly installments, based on the average daily net assets of the Fund. The fee paid to the Sub-Sub-Adviser under the Sub-Sub-Advisory agreement is paid by the Sub-Adviser, not by the Fund.

Transfer Agent Fees. OFI Global (the “Transfer Agent”) serves as the transfer and shareholder servicing agent for the Fund. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Consolidated Statement of Operations and Consolidated Financial Highlights, respectively.

Trustees’ Compensation. The Fund’s Board of Trustees (“Board”) has adopted a compensation deferral plan for Independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustees under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustees. The Fund purchases shares of the funds selected for deferral by the Trustees in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Consolidated Statement of Assets and Liabilities. Deferral of Trustees’ fees under the plan will not affect the net assets of the Fund and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the compensation deferral plan.

45 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued

9. Fees and Other Transactions with Affiliates (Continued)

Service shares of the Fund. The Distributor currently uses all of those fees to compensate sponsors of the insurance product that offers Fund shares, for providing personal service and maintenance of accounts of their variable contract owners that hold Service shares. These fees are paid out of the Fund’s assets on an on-going basis and increase operating expenses of the Service shares, which results in lower performance compared to the Fund’s shares that are not subject to a service fee. Fees incurred by the Fund under the Plan are detailed in the Consolidated Statement of Operations.

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive fees and/or reimburse expenses to limit the Fund’s “Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses” (excluding any applicable dividends tied to short sales expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses) so that, as percentages of average daily net assets, those expenses will not exceed the annual rate of 1.20% for Non-Service shares and 1.45% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $5,013 and $66 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

10. Borrowings and Other Financing

Securities Sold Short. The Fund sells securities that it does not own, and it will therefore be obligated to purchase such securities at a future date. Upon entering into a short position, the Fund is required to segregate cash or securities at its custodian which are pledged for the benefit of the lending broker and/or to deposit and pledge cash directly at the lending broker, with a value equal to a certain percentage, exceeding 100%, of the value of the securities that it sold short. Cash that has been segregated and pledged for this purpose will be disclosed on the Consolidated Statement of Assets and Liabilities; securities that have been segregated and pledged for this purpose are disclosed as such in the Consolidated Statement of Investments. The aggregate market value of such cash and securities at period end is $53,878,429. The value of the open short position is recorded as a liability, and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the change in value of the open short position. The Fund records a realized gain or loss when the short position is closed out. By entering into short sales, the Fund bears the market risk of increases in value of the security sold short in excess of the proceeds received. Until the security is replaced, the Fund is required to pay the lender any dividend or interest earned. Dividend expense on short sales is treated as an expense in the Consolidated Statement of Operations.

Joint Credit Facility. A number of mutual funds managed by the Manager participate in a $1.3 billion revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with atypical redemption activity. Expenses and fees related to the Facility are paid by the participating funds and are disclosed separately or as other expenses on the Consolidated Statement of Operations. The Fund did not utilize the Facility during the reporting period.

11. Prior Period Reclassification

An adjustment to reflect a prior period reclassification between net investment income and net change in unrealized appreciation (depreciation) on investments and/or net realized gain (loss) on investments during the years ending December 31, 2014 and 2015 has been made to properly reflect income distributions received by the Fund from two of its investments.

The following adjustments are reflected in the respective fiscal years per the Consolidated Statements of Changes in Net Assets and the Consolidated Financial Highlights:


	2014		2015
Net investment income (loss)		$3,699		$696,112
Net realized gain (loss)		360		3,812
Net change in unrealized appreciation/depreciation		(4,059)		(699,924)

The cumulative impact of these adjustments are also reflected in the respective component of net assets on the Consolidated Statement of Assets and liabilities and had no impact on total net assets or net asset values per share of the Fund.

12. Pending Litigation

46 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

12. Pending Litigation (Continued)

to dismiss. In October 2015, following a successful appeal by defendants and a subsequent hearing, the court granted plaintiffs’ motion for class certification and appointed class representatives and class counsel.

47 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying consolidated statement of assets and liabilities of Oppenheimer Global Multi-Alternatives Fund/VA (a separate series of Oppenheimer Variable Account Funds) and subsidiary, including the consolidated statement of investments, as of December 31, 2016, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the years or periods in the four-year period then ended. These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Global Multi-Alternatives Fund/VA and subsidiary as of December 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the years or periods in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 24, 2017

48 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Dividends, if any, paid by the Fund during the reporting period which are not designated as capital gain distributions should be multiplied by the maximum amount allowable but not less than 18.18% to arrive at the amount eligible for the corporate dividend-received deduction.

49 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY, SUB-ADVISORY AND SUB-SUB ADVISORY AGREEMENTS Unaudited

The Fund has entered into an investment advisory agreement with OFI Global Asset Management, Inc. (“OFI Global” or the “Adviser”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). OFI Global has entered into a sub-advisory agreement with OFI whereby OFI provides investment sub-advisory services to the Fund, and OFI has entered into sub-sub-advisory agreements with Cornerstone Real Estate Advisers LLC¹ (“Cornerstone”) and OFI SteelPath, Inc. (“OFI SteelPath”) whereby OFI SteelPath and Cornerstone provide investment sub-sub-advisory services to the Fund (collectively, all the investment advisory agreements are referred to as the “Agreements”, “OFI Global” and “OFI” are referred to as the “Managers” and “OFI SteelPath” and “Cornerstone” are referred to as the “Sub-Sub Advisers”). Each year, the Board of Trustees (the “Board”), including a majority of the independent Trustees, is required to determine whether to approve the terms of the Agreements and the renewal thereof. The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Managers and Sub-Sub Advisers provide, such information as may be reasonably necessary to evaluate the terms of the Agreements. The Board employs an independent consultant to prepare a report that provides information, including comparative information that the Board requests for that purpose. In addition to in-person meetings focused on this evaluation, the Board receives information throughout the year regarding Fund services, fees, expenses and performance.

The Managers and Sub-Sub Advisers and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Managers’ and Sub-Sub Advisers’ services, (ii) the comparative investment performance of the Fund and the Managers and Sub-Sub Advisers, (iii) the fees and expenses of the Fund, including comparative fee and expense information, (iv) the profitability of the Managers, Sub-Sub Advisers and their affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Managers and Sub-Sub Advisers from their relationship with the Fund. The Board was aware that there are alternatives to retaining the Managers and Sub-Sub Advisers.

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ and the Sub-Sub Advisers’ key personnel who provide such services. The Sub-Sub Advisers duties include providing the Fund with the services of the portfolio managers and the Sub-Sub-Advisers’ investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; and securities trading services. OFI Global is responsible for oversight of other third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; and risk management. OFI Global is also responsible for providing certain administrative services to the Fund. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the U.S. Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by federal and state securities laws for the sale of the Fund’s shares. OFI Global also provides the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ and Sub-Sub Advisers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Mark Hamilton, Benjamin Rockmuller, Dokyoung Lee and Alessio de Longis, the portfolio managers for the Fund, and the Sub-Sub-Advisers’ investment team and analysts. The Board members also considered the totality of their experiences with the Managers and Sub-Sub Advisers as directors or trustees of the Fund and other funds advised by the Managers and Sub-Sub Advisers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ and Sub-Sub Advisers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Investment Performance of the Managers and the Fund. Throughout the year, the Managers provided information on the investment performance of the Fund, the Adviser, the Sub-Adviser and the Sub-Sub-Advisers, including comparative performance information. The Board also reviewed information, prepared by the Managers and by the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other multialternative funds underlying variable insurance products. The Board considered that the Fund underperformed its performance category median for the one-year period. The Board also considered that the Fund was launched on November 14, 2013 and therefore, has a relatively short performance record. The Board also noted the Adviser’s assertion that the Fund’s performance has improved in 2016, and that the Fund has outperformed its category for the year-to-date and one-year periods ended June 30, 2016.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement and the Sub-Adviser pays the Sub-Sub-Advisers’ fees under the sub-sub-advisory agreements. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other multialternative funds underlying variable insurance products. In reviewing the fees and expenses charged to the Fund, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the Fund to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were 3 basis points higher than its category median and equal to its peer group median. The Board also considered

1. Subsequent to the renewal of the sub-sub-advisory agreement, Cornerstone changed its name to Barings Real Estate Advisers LLC and then to Barings LLC.

50 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY, SUB-ADVISORY AND SUB-SUB ADVISORY AGREEMENTS Unaudited / Continued

that the Fund’s contractual management fee was lower than its peer group median and category median. The Board further considered that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 1.20% for Non-Service Shares and 1.45% for Service Shares. This waiver and/or reimbursement may not be amended or withdrawn for one year from the date of the Fund’s prospectus, unless approved by the Board.

Economies of Scale and Profits Realized by the Managers. The Board considered information regarding the Managers’ costs in serving as the Fund’s investment adviser, sub-adviser and sub-sub-advisers, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Managers’ profitability from their relationship with the Fund. The Board also considered that the Managers must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund. The Board reviewed whether the Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

Other Benefits to the Managers and Sub-Sub Advisers. In addition to considering the profits realized by the Managers and Sub-Sub Advisers, the Board considered information that was provided regarding the direct and indirect benefits the Managers and Sub-Sub Advisers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements).

Conclusions. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees’ counsel are independent of the Managers and Sub-Sub Advisers within the meaning and intent of the Securities and Exchange Commission Rules.

51 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF

INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.CALL OPP (225.5677), and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

52 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

DISTRIBUTION SOURCES Unaudited

For any distribution that took place over the last six months of Fund’s reporting period, the table below details on a per-share basis the percentage of the Fund’s total distribution payment amount that was derived from the following sources: net income, net profit from the sale of securities, and other capital sources. This information is based upon income and capital gains using generally accepted accounting principles as of the date of each distribution. For certain securities, such as Real Estate Investment Trusts (“REITs”) and Master Limited Partnerships (“MLPs”), the percentages attributed to each category are estimated using historical information because the character of the amounts received from the REITs and MLPs in which the Fund invests is unknown until after the end of the calendar year. Because the Fund is actively managed, the relative amount of the Fund’s total distributions derived from various sources over the calendar year may change. Please note that this information should not be used for tax reporting purposes as the tax character of distributable income may differ from the amounts used for this notification. You will receive IRS tax forms in the first quarter of each calendar year detailing the actual amount of the taxable and non-taxable portion of distributions paid to you during the tax year.

Fund Name

Pay

Date

Net Income

Net Profit
from Sale

Other
Capital

Sources

Oppenheimer Global Multi-Alternatives

Fund/VA

12/22/16

37.0%

0.0%

63.0%

53 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

54 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA



F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Hamilton, Lee, Rockmuller, de Longis, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Mark Hamilton, Vice President (since 2013) Year of Birth: 1965		Chief Investment Officer, Asset Allocation of the Sub-Adviser (since April 2013) and a Senior Vice President of the Sub-Adviser (since April 2013). Mr. Hamilton served at AllianceBernstein L.P. (from 1994-2013), as an Investment Director of Dynamic Asset Allocation (from 2010-2013), Head of North American Blend Team (from 2009-2010), and Senior Portfolio Manager of Blend Strategies (from 2006-2010). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Dokyoung Lee, Vice President (since 2014) Year of Birth: 1965		Director of Research, Global Multi-Asset Group (since October 2013) and a Senior Vice President of the Sub-Adviser (since October 2013). Mr. Lee served at Alliance Bernstein L.P. (1994-2013): Director of Research for Strategic Asset Allocation (2011-2013), Director of Research for Blend Strategies (2008-2011), Head of Asia Pacific Blend Strategies (2005-2008), Head of Quantitative Research and Senior Portfolio Manager for Japan Value Equities (2001-2005), Portfolio Manager for Emerging Markets Value Equities (1997-2001), and Quantitative Analyst for US Value Equities (1994-1997). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Benjamin H. Rockmuller, Vice President (since 2014) Year of Birth: 1979		Vice President of the Sub-Adviser (since September 2010); Assistant Vice President of the Sub-Adviser (January 2010-August 2010); Portfolio Manager of the Sub-Adviser (since July 2010); Senior Analyst of the Sub-Adviser for the Global Debt Team (January 2010-July 2010); Intermediate Analyst of the Sub-Adviser for the Global Debt Team (January 2007-January 2010); Junior Analyst of the Sub-Adviser for the Global Debt Team (April 2004-January 2007) and Junior Analyst of the Sub-Adviser for the High Yield Team (June 2003-April 2004). A portfolio manager and an officer in the OppenheimerFunds complex.

Alessio de Longis, Vice President (since 2016) Year of Birth: 1978		Vice President of the Sub-Adviser (since June 2010); Assistant Vice President of the Sub-Adviser (May 2009-June 2010); Senior Research Analyst of the Sub-Adviser (January 2008-June 2010); Intermediate Research Analyst of the Sub-Adviser (January 2006-January 2008); Junior Analyst of the Sub-Adviser (February 2004-January 2006). A portfolio manager and an officer in the OppenheimerFunds complex.

55 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued



Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

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59 OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

OPPENHEIMER GLOBAL MULTI-ALTERNATIVES FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder Servicing Agent		OFI Global Asset Management, Inc.

Sub-Transfer Agent		Shareholder Services, Inc. DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm		KPMG LLP

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO




		December 31, 2016
		Oppenheimer
		International Growth Fund/VA		Annual Report
		A Series of Oppenheimer Variable Account Funds

		ANNUAL REPORT

		Listing of Top Holdings

		Fund Performance Discussion

		Financial Statements

PORTFOLIO MANAGERS: George R. Evans, CFA, and Robert B. Dunphy, CFA

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/16


	Inception Date		1-Year		5-Year		10-Year
Non-Service Shares		5/13/92		-2.12%		7.64%		3.31	%
Service Shares		3/19/01		-2.72		7.33		3.04
MSCI AC World ex-U.S. Index				4.50		5.00		0.96

Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance and expense ratios may be lower or higher than the data quoted. For performance data current to the most recent month end, call us at 1.800.988.8287. The Fund’s total returns should not be expected to be the same as the returns of other funds, whether or not both funds have the same portfolio managers and/or similar names. The Fund’s total returns include changes in share price and reinvested distributions but do not include the charges associated with the separate account products that offer this Fund. Such performance would have been lower if such charges were taken into account.

TOP HOLDINGS AND ALLOCATIONS

TOP TEN COMMON STOCK HOLDINGS


Infineon Technologies AG		2.1%
Dollarama, Inc.		2.0
Nippon Telegraph & Telephone Corp.		1.7
Valeo SA		1.7
Continental AG		1.5
Temenos Group AG		1.5
Carnival Corp.		1.5
SAP SE		1.5
Nidec Corp.		1.4
SEB SA		1.4

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds.com.

REGIONAL ALLOCATION

LOGO

Portfolio holdings and allocations are subject to change. Percentages are as of December 31, 2016, and are based on the total market value of investments.

2 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

Fund Performance Discussion

In a volatile market environment, the Fund’s Non-Service shares generated a total return of -2.12% over the one-year reporting period ended December 31, 2016, underperforming the MSCI AC World ex-U.S. Index (the “Index”), which returned 4.50% during the same period.

On a sector basis, the Fund’s underperformance versus the Index stemmed primarily from underweight positions in materials and energy, and stock selection in consumer discretionary and information technology. The Fund outperformed in the consumer staples sector due to stock selection and in utilities, where our lack of exposure benefited as the sector declined.

Currency was also a factor. Slightly over 20% of our portfolio was invested in UK-domiciled companies at period end, significantly more than the roughly 13% it comprises of the Index, so the British pound’s decline was an immediate drag on relative performance. However, most of our UK-domiciled companies are global businesses with revenues from around the world. Translating those revenues into cheaper pounds should flatter their earnings over time. Moreover, as very long-term investors, we find it impractical to engage in currency hedging. We leave that to the management of our companies themselves, as they are better placed to do it, should they deem it necessary.

MARKET OVERVIEW

2016 opened up with market volatility, due largely to China’s slowing economy, falling crude oil prices, and the aggressive interest rate hike path indicated by the Federal Reserve (the “Fed”) in its December 2015 communication. Equity markets bottomed in February, though interest rates continued to decline. In June, the British referendum to leave the European Union (Brexit) provided a temporary shock to equity markets. They then proceeded to rebound nearly as swiftly over the third quarter of 2016. Investors clearly focused on the fundamental earnings effects and determined that they were relatively minimal in the near term. The most lasting Brexit effect was on the British currency, which fell sharply against the U.S. dollar through the reporting period’s end.

International equities experienced further declines over the fourth quarter of 2016. During this time, markets were largely driven by a turn in expectations. The catalyst was the outcome of the presidential election in the U.S. and a reassessment of electoral dynamics elsewhere. Stocks generally did well in local currency terms. However, the U.S. Dollar Index (DXY) also rose in the quarter, which meaningfully reduced those returns in U.S. dollars. Reflation, a cyclical theme if there ever was one, was the market theme of the fourth quarter.

TOP INDIVIDUAL CONTRIBUTORS

Top contributors to performance this period included CP All Public Co. Ltd., Saputo, Inc. and Dollarama, Inc.

CP All Public Co. Ltd. is the exclusive operator of over 9,200 7-Eleven stores in Thailand. During the period, the company announced its second quarter net profit was up over 30% year over year, handily beating the consensus expectation. CP All’s convenience store business was strong, with same store sales growth of 5% and year over year sales growth of 15%. Management also voiced it sees no slowdown threat to its store expansion plan and revised its target from 10,000 convenience stores by 2018 to 12,000 stores in the next three years. CP All opened 420 stores in the first half of the year, on track for its 700 new store target for this year.

Saputo is a Canadian dairy processor, and ranks among the world’s largest producers of mozzarella cheese, largely distributed in wholesale channels. The company posted solid fiscal year quarterly results during the reporting period despite a generally weak environment for global dairy prices. We continue to view Saputo as a long term consolidator in a highly fragmented world dairy market. It is well managed and has a strong financial profile.

Dollarama, Inc. is the largest dollar store chain in Canada with more than 1,000 locations, with plans to expand well beyond that over the next several years. The stock price rose more than 20% after the company announced fiscal fourth quarter sales rose 32% year over year, and same store sales rose 7.9% year over year. The company increased both its dividend and stock buyback program. Given the weakness of the Canadian economy we believe consumers will remain highly value conscious. Dollarama is well positioned for this.

3 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

TOP INDIVIDUAL DETRACTORS

Top detractors from performance included Essentra plc, Travis Perkins plc and Novo Nordisk A/S.

Essentra plc is an international supplier of specialty plastic packaging for health and personal care products, of fiber filters, and of customized protective components for use with industrial equipment. It also has a distribution business. Shares plunged in early June when the company issued a profit warning, and declined again at the end of July after announcing a profit decline for the first half of the year and departure of the CEO in early 2017. While it experienced declines this period, we are positive on the longer-term outlook for the company.

Travis Perkins, a UK-based company, is a leading company in the builders’ merchant and home improvement markets there and is the UK’s largest product supplier to the building and construction market. Shares of the company traded down significantly following the Brexit decision given its focus on the UK housing market and in sympathy with some of the home builders. The stock price saw a rebound towards the end of the summer, but slumped back near Brexit-lows as the company announced it would close 30 branches and issued a profit warning. Travis Perkins has historically executed very well operationally and we believe the Brexit-related share price hit was overdone.

Novo Nordisk A/S, a Danish company, is the world market leader in diabetes treatment. As the world becomes more affluent, particularly in emerging markets, the incidence of obesity and diabetes is rising, and therefore so is demand for Novo Nordisk’s products. Despite this long-term demand trend, there are some pricing pressures in some of the company’s key markets, particularly in the U.S. During the reporting period, the company lowered forward guidance for 2017 and the stock reacted unfavorably.

STRATEGY & OUTLOOK

It looks like there is at least the possibility that significant reforms to tax and regulatory policy may come out of the new Trump Administration early in the new term. The U.S. is by far the most important economy in the world, and if it can successfully introduce reforms which stimulate aggregate activity, the rest of the world may find it more palatable as well. Beyond that, one can observe that many of the world’s currencies have been falling versus the U.S. dollar. While it has caused some distress this year, it is likely to prove stimulative to the laboring economies of Europe and Japan. Alongside U.S. reforms, this might surprise skeptics with faster growth and higher inflation than we have seen in some time. Both would be welcome. All that said, it doesn’t really influence our positioning, which is of a structural nature, not a cyclical one. The rationale is that the returns from owning equities, particularly high-quality equities, will flow to owners with a view well beyond 2017, 2018, or even 2019. Part of our success has been to invest in superior business models at rational prices, taking advantage of short-term market participants.

The Fund’s investment strategy and focus can change over time. The mention of specific Fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates.

The Fund’s performance is compared to the performance of the MSCI AC World ex-U.S. Index. The MSCI AC World ex-U.S. Index is designed to measure the equity market performance of developed and emerging markets and excludes the U.S. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the

4 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

5 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

Fund Expenses

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended December 31, 2016.

Hypothetical Example for Comparison Purposes.


Actual	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During 6 Months Ended December 31, 2016
Non-Service shares		$ 1,000.00		$ 1,004.80		$ 5.05
Service shares		1,000.00		1,000.00		6.30

Hypothetical
(5% return before expenses)
Non-Service shares		1,000.00		1,020.11		5.09
Service shares		1,000.00		1,018.85		6.36


Class	Expense Ratios
Non-Service shares		1.00%
Service shares		1.25

6 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

STATEMENT OF INVESTMENTS December 31, 2016


	Shares		Value

Common Stocks—97.6%

Consumer Discretionary—24.2%

Auto Components—3.7%

Continental AG		37,404	$ 7,281,223

Koito Manufacturing Co. Ltd.		41,500	2,191,410

Valeo SA		143,233	8,230,108

			17,702,741


Automobiles—2.1%

Bayerische Motoren Werke AG		35,373	3,311,719

Hero MotoCorp Ltd.		150,020	6,702,469

			10,014,188


Diversified Consumer Services—0.6%

Dignity plc		101,707	3,093,322


Hotels, Restaurants & Leisure—4.0%

Carnival Corp.		136,250	7,093,175

Domino’s Pizza Group plc		1,054,134	4,672,671

Whitbread plc		74,839	3,478,844

William Hill plc		1,061,616	3,783,755

			19,028,445


Household Durables—1.4%

SEB SA		49,630	6,724,983


Media—3.6%

Grupo Televisa SAB, Sponsored ADR		82,680	1,727,185

ProSiebenSat.1 Media SE		110,964	4,289,623

SES SA, Cl. A, FDR		187,990	4,139,760

Sky plc		241,326	2,936,008

Technicolor SA		715,790	3,871,870

			16,964,446


Multiline Retail—2.6%

Dollarama, Inc.		128,630	9,425,106

Hudson’s Bay Co.		309,963	3,045,032

			12,470,138


Specialty Retail—0.9%

Industria de Diseno Textil SA		119,983	4,094,479


Textiles, Apparel & Luxury Goods—5.3%

Burberry Group plc		255,080	4,701,809

Cie Financiere Richemont SA		63,945	4,233,914

Hermes International		12,576	5,157,464

LVMH Moet Hennessy Louis Vuitton SE		27,210	5,188,328

Pandora AS		46,647	6,092,661

			25,374,176


Consumer Staples—12.7%

Beverages—3.0%

Anheuser-Busch InBev SA/NV		33,018	3,486,931

Diageo plc		91,722	2,372,949

Heineken NV		74,040	5,545,834

Pernod Ricard SA		28,590	3,097,214

			14,502,928


Food & Staples Retailing—3.1%

Alimentation Couche-Tard, Inc., Cl. B		105,825	4,798,440

CP ALL PCL		3,264,400	5,688,663

Spar Group Ltd. (The)		311,518	4,497,206

			14,984,309


Food Products—4.9%

Aryzta AG¹		100,588	4,429,057

Barry Callebaut AG¹		3,839	4,698,324

Danone SA		48,486	3,068,937

Saputo, Inc.		189,567	6,707,875

Unilever plc		106,033	4,289,048

			23,193,241


Household Products—1.1%

Reckitt Benckiser Group plc		59,110	4,996,823


	Shares		Value

Tobacco—0.6%

Swedish Match AB		87,400	$	2,776,743


Energy—2.1%

Energy Equipment & Services—1.1%

Technip SA		74,841		5,310,898


Oil, Gas & Consumable Fuels—1.0%

Koninklijke Vopak NV		95,781		4,518,417


Financials—3.5%

Capital Markets—2.0%

NEX Group plc¹		472,852		2,706,840

TP ICAP plc		648,271		3,458,077

UBS Group AG		197,340		3,089,345

				9,254,262


Commercial Banks—0.5%

ICICI Bank Ltd., Sponsored ADR		337,955		2,531,283


Insurance—1.0%

Prudential plc		240,231		4,791,684


Health Care—10.0%

Biotechnology—2.2%

CSL Ltd.		72,000		5,201,286

Grifols SA		256,841		5,103,175

				10,304,461


Health Care Equipment & Supplies—3.4%

Coloplast AS, Cl. B		72,930		4,907,625

Essilor International SA		37,613		4,249,340

Sonova Holding AG		31,753		3,841,820

William Demant Holding AS¹		188,136		3,271,236

				16,270,021


Health Care Providers & Services—0.7%

Sonic Healthcare Ltd.		217,482		3,356,361


Life Sciences Tools & Services—1.0%

Lonza Group AG¹		28,632		4,950,003


Pharmaceuticals—2.7%

Galenica AG		3,466		3,902,566

Novo Nordisk AS, Cl. B		111,502		4,005,096

Roche Holding AG		22,730		5,179,104

				13,086,766


Industrials—20.8%

Aerospace & Defense—2.0%

Airbus Group SE		93,210		6,151,726

Rolls-Royce Holdings plc¹		398,126		3,274,130

				9,425,856


Air Freight & Couriers—0.8%

Royal Mail plc		696,335		3,962,008


Commercial Services & Supplies—2.6%

Aggreko plc		166,157		1,877,248

Edenred		232,234		4,602,348

Prosegur Cia de Seguridad SA		918,540		5,733,640

				12,213,236


Construction & Engineering—1.4%

Boskalis Westminster		91,453		3,171,321

CIMIC Group Ltd.		134,385		3,378,539

				6,549,860


Electrical Equipment—3.7%

ABB Ltd.¹		98,939		2,082,801

Legrand SA		75,980		4,302,922

Nidec Corp.		80,200		6,897,204

Schneider Electric SE		64,530		4,484,037

				17,766,964


Machinery—3.2%

Aalberts Industries NV		188,680		6,114,795

Atlas Copco AB, Cl. A		194,079		5,899,516

7 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

STATEMENT OF INVESTMENTS Continued


	Shares		Value

Machinery (Continued)

Kubota Corp.		91,900		$ 1,308,264

Weir Group plc (The)		84,777		1,964,191

				15,286,766


Professional Services—2.6%

Experian plc		261,155		5,054,966

Intertek Group plc		102,140		4,357,765

SGS SA		1,552		3,151,764

				12,564,495


Trading Companies & Distributors—4.5%

Brenntag AG		109,465		6,065,888

Bunzl plc		223,293		5,778,282

Travis Perkins plc		239,688		4,284,092

Wolseley plc		89,337		5,457,973

				21,586,235


Information Technology—13.7%

Communications Equipment—0.9%

Nokia OYJ		911,537		4,383,778


Electronic Equipment, Instruments, & Components—2.9%

Hoya Corp.		103,993		4,358,530

Keyence Corp.		9,506		6,513,309

Spectris plc		95,964		2,732,205

				13,604,044


Internet Software & Services—0.6%

United Internet AG		78,140		3,041,460


IT Services—1.3%

Amadeus IT Group SA, Cl. A		133,817		6,079,208


Semiconductors & Semiconductor Equipment—3.2%

ASML Holding NV		46,413		5,200,281

Infineon Technologies AG		587,235		10,177,863

				15,378,144


Software—4.8%

Dassault Systemes SE		65,227		4,969,038

Gemalto NV		65,184		3,763,507

SAP SE		80,225		7,011,272

Temenos Group AG¹		104,301		7,263,338

				23,007,155


	Shares		Value

Materials—4.8%

Chemicals—2.3%

Essentra plc		451,670	$ 2,557,995

Novozymes AS, Cl. B		113,401	3,902,870

Sika AG		949	4,558,530

Syngenta AG¹		479	189,749

			11,209,144


Construction Materials—1.3%

James Hardie Industries plc		382,600	6,058,116


Containers & Packaging—1.2%

CCL Industries, Inc., Cl. B		28,790	5,656,576


Telecommunication Services—5.8%

Diversified Telecommunication Services—4.7%

BT Group plc		936,857	4,242,412

Iliad SA		21,310	4,093,266

Inmarsat plc		289,474	2,670,188

Nippon Telegraph & Telephone Corp.		196,300	8,251,626

Telstra Corp. Ltd.		906,697	3,332,319

			22,589,811


Wireless Telecommunication Services—1.1%

Vodafone Group plc		2,034,355	5,003,447

Total Common Stocks (Cost $344,131,955)			465,661,421


Preferred Stock—0.0%

Zee Entertainment Enterprises Ltd., 6% Cum. Non-Cv. (Cost $12,272)		599,541	86,481

		Units

Rights, Warrants and Certificates—0.0%

MEI Pharma, Inc. Wts., Strike Price $1.19, Exp. 5/10/17¹(Cost $35,548)		151,358	—

		Shares

Investment Company—2.0%

Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.43%^2,3(Cost $9,483,349)		9,483,349	9,483,349

Total Investments, at Value (Cost $353,663,124)		99.6%	475,231,251

Net Other Assets (Liabilities)		0.4	1,961,210

Net Assets		100.0%	$ 477,192,461

Footnotes to Statement of Investments

1. Non-income producing security.

2. Rate shown is the 7-day yield at period end.


	Shares December 31, 2015		Gross Additions		Gross Reductions		Shares December 31, 2016

Oppenheimer Institutional Government Money Market Fund, Cl. E^a		4,009,537		82,902,643		77,428,831		9,483,349

					Value		Income

Oppenheimer Institutional Government Money Market Fund, Cl. E^a					$	9,483,349	$	28,378

Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund.

Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:


Geographic Holdings (Unaudited)	Value		Percent

United Kingdom		$ 98,498,730		20.7	%
France		77,642,238		16.3
Switzerland		51,570,315		10.8
Germany		41,179,050		8.7
Canada		29,633,030		6.2
Japan		29,520,343		6.2
Netherlands		28,314,155		6.0
Denmark		22,179,488		4.7
Spain		21,010,502		4.4
United States		16,576,524		3.5

8 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA


Geographic Holdings (Unaudited) (Continued)	Value		Percent

Australia		$ 15,268,506		3.2	%
India		9,320,233		2.0
Sweden		8,676,259		1.8
Ireland		6,058,115		1.3
Thailand		5,688,663		1.2
South Africa		4,497,206		1.0
Finland		4,383,778		0.9
Belgium		3,486,931		0.7
Mexico		1,727,185		0.4

Total		$ 475,231,251		100.0	%

See accompanying Notes to Financial Statements.

9 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

STATEMENT OF ASSETS AND LIABILITIES December 31, 2016



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $344,179,775)		$ 465,747,902
Affiliated companies (cost $9,483,349)		9,483,349

		475,231,251

Cash		506,497

Cash—foreign currencies (cost $8)		8

Receivables and other assets:
Dividends		1,672,781
Shares of beneficial interest sold		363,793
Investments sold		13,143
Other		31,030

Total assets		477,818,503


Liabilities
Payables and other liabilities:
Foreign capital gains tax		317,299
Shares of beneficial interest redeemed		205,552
Distribution and service plan fees		36,540
Trustees’ compensation		23,578
Legal, auditing and other professional fees		21,109
Shareholder communications		6,488
Other		15,476

Total liabilities		626,042


Net Assets		$ 477,192,461



Composition of Net Assets
Par value of shares of beneficial interest		$ 226,555

Additional paid-in capital		357,631,433

Accumulated net investment income		4,952,410

Accumulated net realized loss on investments and foreign currency transactions		(6,768,770)

Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		121,150,833

Net Assets		$ 477,192,461



Net Asset Value Per Share
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $301,559,115 and 145,305,148 shares of beneficial interest outstanding)		$2.08


Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets of $175,633,346 and 81,249,431 shares of beneficial interest outstanding)		$2.16

See accompanying Notes to Financial Statements.

10 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

STATEMENT OF OPERATIONS For the Year Ended December 31, 2016



Investment Income

Dividends:
Unaffiliated companies (net of foreign withholding taxes of $957,855)		$ 10,753,361
Affiliated companies		28,378

Total investment income		10,781,739


Expenses
Management fees		4,574,327

Distribution and service plan fees - Service shares		437,066

Transfer and shareholder servicing agent fees:
Non-Service shares		305,525
Service shares		174,983

Shareholder communications:
Non-Service shares		18,337
Service shares		10,643

Custodian fees and expenses		48,542

Trustees’ compensation		22,073

Borrowing fees		8,581

Other		90,995

Total expenses		5,691,072
Less reduction to custodian expenses		(229)
Less waivers and reimbursements of expenses		(439,820)

Net expenses		5,251,023

Net Investment Income		5,530,716


Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment transactions in unaffiliated companies (net of foreign capital gains tax of $53,711)		84,274
Foreign currency transactions		(105,589)

Net realized loss		(21,315)

Net change in unrealized appreciation/depreciation on:
Investment transactions (net of foreign capital gains tax of $247,663)		(15,775,957)
Translation of assets and liabilities denominated in foreign currencies		(18,890)

Net change in unrealized appreciation/depreciation		(15,794,847)

Net Decrease in Net Assets Resulting from Operations		$ (10,285,446)

See accompanying Notes to Financial Statements.

11 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended December 31, 2016		Year Ended December 31, 2015

Operations
Net investment income	$	5,530,716	$ 5,013,190

Net realized gain (loss)		(21,315)	12,349,329

Net change in unrealized appreciation/depreciation		(15,794,847)	(2,159,966)

Net increase (decrease) in net assets resulting from operations		(10,285,446)	15,202,553


Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Non-Service shares		(3,398,644)	(4,005,137)
Service shares		(1,459,515)	(1,505,303)

		(4,858,159)	(5,510,440)


Distributions from net realized gain:
Non-Service shares		(7,229,895)	(24,445,588)
Service shares		(4,021,530)	(11,368,323)

		(11,251,425)	(35,813,911)


Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Non-Service shares		788,912	(24,199,401)
Service shares		15,959,227	32,889,329

		16,748,139	8,689,928


Net Assets
Total decrease		(9,646,891)	(17,431,870)

Beginning of period		486,839,352	504,271,222

End of period (including accumulated net investment of $4,952,410 and $4,495,293, respectively)	$	477,192,461	$ 486,839,352

See accompanying Notes to Financial Statements.

12 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

FINANCIAL HIGHLIGHTS


Non-Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$2.20		$2.31		$2.57		$2.07	$1.72

Income (loss) from investment operations:
Net investment income¹		0.03		0.03		0.03		0.03	0.03
Net realized and unrealized gain (loss)		(0.08)		0.06		(0.21)		0.50	0.35

Total from investment operations		(0.05)		0.09		(0.18)		0.53	0.38

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.02)		(0.03)		(0.03)		(0.03)	(0.03)
Distributions from net realized gain		(0.05)		(0.17)		(0.05)		0.00	0.00

Total dividends and/or distributions to shareholders		(0.07)		(0.20)		(0.08)		(0.03)	(0.03)

Net asset value, end of period		$2.08		$2.20		$2.31		$2.57	$2.07



Total Return, at Net Asset Value²		(2.12)%		3.43%		(7.22)%		25.87%	22.22%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$301,559		$317,547		$358,756		$458,038	$348,449

Average net assets (in thousands)		$305,269		$343,347		$400,556		$404,859	$332,018

Ratios to average net assets:³
Net investment income		1.24%		1.08%		1.13%		1.24%	1.68%
Expenses excluding specific expenses listed below		1.09%		1.08%		1.07%		1.09%	1.13%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%	0.00%

Total expenses⁵		1.09%		1.08%		1.07%		1.09%	1.13%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.00%		1.00%		1.00%		1.00%	1.00%

Portfolio turnover rate		15%		24%		41%		32%	22%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.09	%
Year Ended December 31, 2015	1.08	%
Year Ended December 31, 2014	1.07	%
Year Ended December 31, 2013	1.09	%
Year Ended December 31, 2012	1.13	%

See accompanying Notes to Financial Statements.

13 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

FINANCIAL HIGHLIGHTS Continued


Service Shares	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012

Per Share Operating Data
Net asset value, beginning of period		$2.29		$2.40		$2.66		$2.14	$1.78

Income (loss) from investment operations:
Net investment income¹		0.02		0.02		0.02		0.02	0.03
Net realized and unrealized gain (loss)		(0.08)		0.06		(0.21)		0.53	0.35

Total from investment operations		(0.06)		0.08		(0.19)		0.55	0.38

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.02)		(0.02)		(0.02)		(0.03)	(0.02)
Distributions from net realized gain		(0.05)		(0.17)		(0.05)		0.00	0.00

Total dividends and/or distributions to shareholders		(0.07)		(0.19)		(0.07)		(0.03)	(0.02)

Net asset value, end of period		$2.16		$2.29		$2.40		$2.66	$2.14



Total Return, at Net Asset Value²		(2.72)%		3.11%		(7.15)%		25.71%	21.68%


Ratios/Supplemental Data
Net assets, end of period (in thousands)		$175,633		$169,292		$145,515		$118,060	$68,997

Average net assets (in thousands)		$174,834		$165,226		$128,694		$88,647	$63,118

Ratios to average net assets:³
Net investment income		0.99%		0.79%		0.85%		0.89%	1.43%
Expenses excluding specific expenses listed below		1.34%		1.33%		1.32%		1.34%	1.38%
Interest and fees from borrowings		0.00%⁴		0.00%⁴		0.00%		0.00%	0.00%

Total expenses⁵		1.34%		1.33%		1.32%		1.34%	1.38%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.25%		1.25%		1.25%		1.25%	1.25%

Portfolio turnover rate		15%		24%		41%		32%	22%

1. Per share amounts calculated based on the average shares outstanding during the period.

3. Annualized for periods less than one full year.

4. Less than 0.005%.

5. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended December 31, 2016	1.34	%
Year Ended December 31, 2015	1.33	%
Year Ended December 31, 2014	1.32	%
Year Ended December 31, 2013	1.34	%
Year Ended December 31, 2012	1.38	%

See accompanying Notes to Financial Statements.

14 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

NOTES TO FINANCIAL STATEMENTS December 31, 2016

1. Organization

Oppenheimer International Growth Fund/VA (the “Fund”), is a separate series of Oppenheimer Variable Account Funds, which is registered under the Investment Company Act of 1940 (“1940 Act”), as amended, as a diversified open-end management investment company. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI. Shares of the Fund are sold only to separate accounts of life insurance companies.

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1) Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close as described in Note 3.

(2) Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

Indemnifications. The Fund’s organizational documents provide current and former Trustees and officers with a limited indemnification against

15 Oppenheimer International Growth Fund/VA

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3		Net Unrealized Appreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$7,257,792		$—		$417,148		$112,517,406

1. At period end, the Fund had $417,148 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

No expiration	$	417,148

2. During the reporting period, the Fund did not utilize any capital loss carryforward.

3. During the previous reporting period, the Fund did not utilize any capital loss carryforward.

Accordingly, the following amounts have been reclassified for the reporting period. Net assets of the Fund were unaffected by the reclassifications.


Increase to Paid-in Capital	Reduction to Accumulated Net Investment Income		Reduction to Accumulated Net Realized Loss on Investments

$11,688		$215,440		$203,752

The tax character of distributions paid during the reporting periods:


	Year Ended December 31, 2016		Year Ended December 31, 2015

Distributions paid from:
Ordinary income	$	4,858,159	$	6,531,547
Long-term capital gain		11,251,425		34,792,804

Total	$	16,109,584	$	41,324,351

16 ��Oppenheimer International Growth Fund/VA

2. Significant Accounting Policies (Continued)


Federal tax cost of securities	$	362,296,550
Federal tax cost of other investments		8

Total federal tax cost	$	362,296,558

Gross unrealized appreciation	$	169,970,819
Gross unrealized depreciation		(57,453,413)

Net unrealized appreciation	$	112,517,406

Certain foreign countries impose a tax on capital gains which is accrued by the Fund based on unrealized appreciation, if any, on affected securities. The tax is paid when the gain is realized.

3. Securities Valuation

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors
Corporate debt, government debt, municipal, mortgage- backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

17 Oppenheimer International Growth Fund/VA

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

Classifications

1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities at period end based on valuation input level:


	Level 1— Unadjusted Quoted Prices		Level 2— Other Significant Observable Inputs		Level 3— Significant Unobservable Inputs		Value

Assets Table
Investments, at Value:
Common Stocks
Consumer Discretionary	$	21,290,498	$	94,176,420	$	—	$	115,466,918
Consumer Staples		11,506,315		48,947,729		—		60,454,044
Energy		—		9,829,315		—		9,829,315
Financials		5,238,123		11,339,106		—		16,577,229
Health Care		—		47,967,612		—		47,967,612
Industrials		—		99,355,420		—		99,355,420
Information Technology		—		65,493,789		—		65,493,789
Materials		5,656,576		17,267,260		—		22,923,836
Telecommunication Services		—		27,593,258		—		27,593,258
Preferred Stock		86,481		—		—		86,481
Rights, Warrants and Certificates		—		—		—		—
Investment Company		9,483,349		—		—		9,483,349

Total Assets	$	53,261,342	$	421,969,909	$	—	$	475,231,251

4. Investments and Risks

18 Oppenheimer International Growth Fund/VA

4. Investments and Risks (Continued)

may be affected by exchange control regulations, foreign taxes, higher transaction and other costs, delays in the settlement of transactions, changes in economic or monetary policy in the United States or abroad, expropriation or nationalization of a company’s assets, or other political and economic factors. In addition, due to the inter-relationship of global economies and financial markets, changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to time-zone arbitrage risk. Foreign securities may trade on weekends or other days when the Fund does not price its shares. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse events that occur in that country or region. Foreign securities and foreign currencies held in foreign banks and securities depositories may be subject to limited or no regulatory oversight.

Shareholder Concentration. At period end, one shareholder owned 20% or more of the Fund’s total outstanding shares.

The shareholder is a related party of the Fund. Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds, and directors or employees. The related party owned 40% of the Fund’s total outstanding shares at period end.

5. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

19 Oppenheimer International Growth Fund/VA

NOTES TO FINANCIAL STATEMENTS Continued

6. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended December 31, 2016				Year Ended December 31, 2015
	Shares		Amount		Shares		Amount

Non-Service Shares
Sold		22,953,697	$	47,962,883		25,785,184	$	60,862,122
Dividends and/or distributions reinvested		4,989,924		10,628,539		12,263,244		28,450,725
Redeemed		(27,048,722)		(57,802,510)		(48,734,993)		(113,512,248)

Net increase (decrease)		894,899	$	788,912		(10,686,565)	$	(24,199,401)



Service Shares
Sold		20,232,575	$	45,018,434		20,290,959	$	49,094,495
Dividends and/or distributions reinvested		2,468,939		5,481,045		5,341,754		12,873,626
Redeemed		(15,460,315)		(34,540,252)		(12,264,866)		(29,078,792)

Net increase		7,241,199	$	15,959,227		13,367,847	$	32,889,329

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IGMMF, for the reporting period were as follows:


	Purchases		Sales

Investment securities	$	70,980,651	$	72,767,052

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $250 million			1.00%
Next $250 million			0.90
Next $500 million			0.85
Over $1 billion			0.82

The Fund’s effective management fee for the reporting period was 0.95% of average annual net assets before any applicable waivers.

20 Oppenheimer International Growth Fund/VA

8. Fees and Other Transactions with Affiliates (Continued)

Waivers and Reimbursements of Expenses. The Manager has contractually agreed to limit the Fund’s expenses after payments, waivers and/or reimbursements and reduction to custodian expenses, excluding any applicable dividend expense, taxes, interest and fees from borrowing, any subsidiary expenses, Acquired Fund Fees and Expenses, brokerage commissions, unusual and infrequent expenses and certain other Fund expenses; so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 1.00% for Non-Service shares and 1.25% for Service shares. During the reporting period, the Manager waived fees and/or reimbursed the Fund $274,928 and $157,676 for Non-Service and Service shares, respectively.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

9. Borrowings and Other Financing

10. Pending Litigation

21 Oppenheimer International Growth Fund/VA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Variable Account Funds:

We have audited the accompanying statement of assets and liabilities of Oppenheimer International Growth Fund/VA (a separate series of Oppenheimer Variable Account Funds), including the statement of investments, as of December 31, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 December 31, 2016, by correspondence with the custodian and transfer agent. 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer International Growth Fund/VA as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

February 15, 2017

22 Oppenheimer International Growth Fund/VA

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2017, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2016.

Capital gain distributions of $0.05114 per share were paid to Non-Service and Service shareholders, respectively, on June 21, 2016. Whether received in stock or in cash, the capital gain distribution should be treated by shareholders as a gain from the sale of the capital assets held for more than one year (long-term capital gains).

None of the dividends paid by the Fund during the reporting period are eligible for the corporate dividend-received deduction.

23 Oppenheimer International Growth Fund/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance and risk management services, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of George Evans and Robert Dunphy, the portfolio managers for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other foreign large growth funds underlying variable insurance products. In reviewing the fees and expenses charged to the VA funds, the Board considered the Adviser’s assertion that, because there is much greater disparity in the fees and services that may be provided by a manager to a VA fund as opposed to a retail fund, when comparing the expenses of the various VA funds to those of retail funds, it is most appropriate to focus on total expenses (rather than on the management fees). Accordingly, while the Board reviewed and considered all expenses, it focused on total expenses. The Board considered that the Fund’s total expenses, net of waivers, were equal to its peer group median and higher than its category median. The Board also considered that the Fund’s contractual management fee was also equal to its peer group median and higher than its category median. The Board noted that the Adviser has contractually agreed to limit the Fund’s total annual operating expenses so that those expenses, as percentages of daily net assets, will not exceed the annual rate of 1.00% for Non-Service Shares and 1.25% for Service Shares. This contractual expense limitation may not be amended or withdrawn until one year from the date of the Fund’s prospectus, unless approved by the Board.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was

24 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS Unaudited / Continued

25 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

PORTFOLIO PROXY VOTING POLICIES AND GUIDELINES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited

The Fund has adopted Portfolio Proxy Voting Policies and Guidelines under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Guidelines is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.

26 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund, Length of Service, Age		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Robert J. Malone, Chairman of the Board of Trustees (since 2016), Trustee (since 2002) Year of Birth: 1944		Chairman - Colorado Market of MidFirst Bank (since January 2015); Chairman of the Board (2012-2016) and Director (August 2005-March 2016) of Jones International University (educational organization); Trustee of the Gallagher Family Foundation (non-profit organization) (2000-2015); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (August 2003-January 2015); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008- 2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991) and Trustee (1984-1999) of Young Presidents Organization. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 1990) Year of Birth: 1942		Chairman of the Board of Jack Creek Preserve Foundation (non-profit organization) (since March 2005); Director of Jack Creek Preserve Foundation (non-profit organization) (March 2005-December 2014); Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of OppenheimerFunds, Inc.; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of OppenheimerFunds, Inc.), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2012) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2002) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (2000-2014); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (2010-2016) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005) and Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-2015) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

27 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

TRUSTEES AND OFFICERS Unaudited / Continued


F. William Marshall, Jr., Trustee (since 2000) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (1996-2015), MML Series Investment Fund (investment company) (1996-2015) and Mass Mutual Premier Funds (investment company) (January 2012-December 2015); President and Treasurer of the SIS Fund (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Member (since May 2015) of Desert Mountain Community Foundation Advisory Board (non-profit organization); Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992- 2006), member of Executive, Nominating and Audit Committees and Chair of Finance Committee (1992-2006), and Emeritus Trustee (since 2006) of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 47 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969- 1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003-2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 47 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.
INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman and director of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (Since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of OppenheimerFunds, Inc. (since January 2015); CEO and Chairman of OFI Global Asset Management, Inc. (since July 2014), President of OFI Global Asset Management, Inc. (since May 2013), a Director of OFI Global Asset Management, Inc. (since January 2013), Director of OppenheimerFunds, Inc. (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (OppenheimerFunds, Inc.‘s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of OFI Global Asset Management, Inc. (January 2013-May 2013); Chief Investment Officer of OppenheimerFunds, Inc. (October 2010-December 2012); Chief Investment Officer, Fixed- Income, of OppenheimerFunds, Inc. (April 2009-October 2010); Executive Vice President of OppenheimerFunds, Inc. (October 2009-December 2012); Director of Fixed Income of OppenheimerFunds, Inc. (January 2009-April 2009); and a Senior Vice President of OppenheimerFunds, Inc. (March 1993-September 2009). An officer of 103 portfolios in the OppenheimerFunds complex.
OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Evans, Dunphy, Mss. Lo Bessette, Foxson and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Petersen, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

George R. Evans, Vice President (since 1999) Year of Birth: 1959		CIO Equities of the Sub-Adviser (since January 2013); Senior Vice President of the Sub-Adviser (since July 2004). Director of International Equities of the Sub-Adviser (since July 2004); Director of Equities of the Sub-Adviser (October 2010-December 2012); Vice President of HarbourView Asset Management Corporation (July 1994-November 2001) and Vice President of the Sub-Adviser (October 1993-July 2004). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Robert B. Dunphy, Vice President (since 2012) Year of Birth: 1979		Vice President of the Sub-Adviser (since January 2011); Senior Portfolio Manager (since May 2011); Senior Research Analyst and Assistant Vice President of the Sub-Adviser (May 2009-January 2011), and an Intermediate Research Analyst of the Sub- Adviser (January 2006-May 2009). A portfolio manager of other portfolios in the OppenheimerFunds complex

Cynthia Lo Bessette, Secretary and Chief Legal Officer (since 2016) Year of Birth: 1969		Executive Vice President, General Counsel and Secretary of the Manager (since February 2016); Chief Legal Officer of the Sub-Adviser and the Distributor (since February 2016); Vice President, General Counsel and Secretary of Oppenheimer Acquisition Corp. (since February 2016); General Counsel of OFI SteelPath, Inc., VTL Associates, LLC and Index Management Solutions, LLC (since February 2016); Chief Legal Officer of OFI Global Institutional, Inc., HarbourView Asset Management Corporation, OFI Global Trust Company, Oppenheimer Real Asset Management, Inc., OFI Private Investments Inc., Shareholder Services, Inc. and Trinity Investment Management Corporation (since February 2016); Senior Vice President and Deputy General Counsel (March 2015-February 2016) and Executive Vice President, Vice President, Corporate Counsel (February 2012-March 2015) and Deputy Chief Legal Officer (April 2013-March 2015) of Jennison Associates LLC; Assistant General Counsel (April 2008-September 2009) and Deputy General Counsel (October 2009-February 2012) of Lord Abbett & Co. LLC. An officer of 103 portfolios in the OppenheimerFunds complex.

Jennifer Foxson, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 103 portfolios in the OppenheimerFunds complex.

28 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA



Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub- Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 103 portfolios in the OppenheimerFunds complex.

Brian S. Petersen, Treasurer and Principal Financial & Accounting Officer (since 2016) Year of Birth: 1970		Vice President of the Manager (since January 2013); Vice President of the Sub-Adviser (February 2007-December 2012); Assistant Vice President of the Sub-Adviser (August 2002-2007). An officer of 103 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge, upon request, by calling 1.800.988.8287.

29 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

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30 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

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31 OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

OPPENHEIMER INTERNATIONAL GROWTH FUND/VA

A Series of Oppenheimer Variable Account Funds


Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and		OFI Global Asset Management, Inc.
Shareholder
Servicing Agent

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent		KPMG LLP
Registered
Public
Accounting
Firm

Legal Counsel		Ropes & Gray LLP

		Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, or calling us at 1.800.988.8287. Read prospectuses and summary prospectuses carefully before investing.

		© 2017 OppenheimerFunds, Inc. All rights reserved. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

LOGO

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the registrant has determined that Karen L. Stuckey, the Chairwoman of the Board’s Audit Committee, is the audit committee financial expert and that Ms. Stuckey is “independent” for purposes of this Item 3.

Item 4. Principal Accountant Fees and Services.

(a)	Audit Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $473,600 in fiscal 2016 and $438,300 in fiscal 2015.

(b)	Audit-Related Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $84,100 in fiscal 2016 and no such fees in fiscal 2015.

The principal accountant for the audit of the registrant’s annual financial statements billed $232,185 in fiscal 2016 and $467,159 in fiscal 2015 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: Internal control reviews, GIPS attestation procedures, system conversion testing, and additional audit services.

(c)

Tax Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $20,375 in fiscal 2016 and $28,745 in fiscal 2015.

The principal accountant for the audit of the registrant’s annual financial statements billed $645,284 in fiscal 2016 and $720,026 in fiscal 2015 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d)	All Other Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2016 and no such fees in fiscal 2015.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2016 and no such fees in fiscal 2015 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrant’s retirement plan with respect to its Trustees.

(e)	(1) During its regularly scheduled periodic meetings, the registrant’s audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant.

The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.

Under applicable laws, pre-approval of non-audit services may be waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to its principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.

(2) 0%

(f)	Not applicable as less than 50%.

(g)

The principal accountant for the audit of the registrant’s annual financial statements billed $981,944 in fiscal 2016 and $1,215,930 in fiscal 2015 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.

(h)

The registrant’s audit committee of the board of Trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. No such services were rendered.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards

None

Item 11. Controls and Procedures.

Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 12/31/2016, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Exhibit attached hereto.

(2) Exhibits attached hereto.

(3) Not applicable.

(b)	Exhibit attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Oppenheimer Variable Account Funds

By:		/s/ Arthur P. Steinmetz
		Arthur P. Steinmetz
		Principal Executive Officer
Date:		2/17/2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ Arthur P. Steinmetz
		Arthur P. Steinmetz
		Principal Executive Officer
Date:		2/17/2017

By:		/s/ Brian S. Petersen
		Brian S. Petersen
		Principal Financial Officer
Date:		2/17/2017

Oppenheimer

Annual Report

Conservative Balanced Fund/VA

A Series of Oppenheimer Variable Account Funds