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 811-5582
OPPENHEIMER CASH RESERVES
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS July 31, 2003
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Certificates of Deposit--6.2%
- --------------------------------------------------------------------------------
Domestic Certificates of Deposit--3.3%
Bank of New York,
1.29%, 8/21/03 $ 15,000,000 $ 15,000,165
- --------------------------------------------------------------------------------
Citibank NA,
1.055%, 10/30/03 10,000,000 10,000,000
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National Bank of
Commerce,
Tennessee,
1.225%, 6/14/04 1 6,500,000 6,499,344
------------
31,499,509
- --------------------------------------------------------------------------------
Yankee Certificates of Deposit--2.9%
Canadian Imperial
Bank of Commerce,
New York,
1.23%, 8/7/03 10,000,000 10,000,000
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Svenska
Handelsbanken,
New York:
1.17%, 10/3/03 9,000,000 9,000,000
1.19%, 10/2/03 8,000,000 8,000,137
------------
27,000,137
------------
Total Certificates of Deposit
(Cost $58,499,646) 58,499,646
- --------------------------------------------------------------------------------
Direct Bank Obligations--24.0%
AB SPINTAB:
0.935%, 10/27/03 10,000,000 9,977,404
1.21%, 8/14/03 17,000,000 16,992,547
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Bank of New York,
1.87%, 8/5/03 10,000,000 10,000,655
- --------------------------------------------------------------------------------
Bank One NA:
1.17%, 11/6/03 11,000,000 11,000,862
1.25%, 8/15/03 5,000,000 4,999,990
- --------------------------------------------------------------------------------
Barclays US
Funding Corp.,
1.145%, 11/19/03 6,500,000 6,477,259
- --------------------------------------------------------------------------------
BNP Paribas
Finance, Inc.,
1.03%, 11/14/03 10,000,000 9,969,958
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Credit Lyonnais
North America, Inc.:
1.035%, 10/23/03 7,000,000 6,983,296
1.265%, 10/9/03 20,000,000 19,957,929
- --------------------------------------------------------------------------------
Danske Corp.,
Series A:
1.21%, 8/18/03 10,000,000 9,994,286
1.21%, 8/20/03 10,000,000 9,993,561
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Direct Bank Obligations Continued
Governor & Co.
of the Bank of
Ireland,
1.15%, 11/17/03 2 $ 10,000,000 $ 9,965,500
- --------------------------------------------------------------------------------
HBOS Treasury
Services,
1.035%, 10/3/03 10,000,000 9,981,888
- --------------------------------------------------------------------------------
NATC
California LLC,
1.06%, 10/27/03 10,000,000 9,974,383
- --------------------------------------------------------------------------------
Nationwide
Building Society:
1.22%, 8/11/03 10,000,000 9,996,611
1.22%, 8/12/03 15,000,000 14,994,408
- --------------------------------------------------------------------------------
Nordea North
America, Inc.:
1.03%, 10/17/03 5,000,000 4,988,985
1.04%, 10/21/03 6,000,000 5,985,960
- --------------------------------------------------------------------------------
Societe General
North America:
1.02%, 9/3/03 4,000,000 3,996,260
1.17%, 10/1/03 25,000,000 24,950,438
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Svenska
Handelsbanken,
Inc., Series S,
1.27%, 8/12/03 10,000,000 9,996,120
- --------------------------------------------------------------------------------
Wells Fargo
Bank NA,
1.22%, 8/15/03 5,000,000 5,000,000
------------
Total Direct
Bank Obligations
(Cost $226,178,300) 226,178,300
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Short-Term Notes--53.9%
- --------------------------------------------------------------------------------
Asset-Backed--13.1%
Crown Point
Capital Co.:
1%, 12/12/03 2 7,800,000 7,771,183
1.05%, 10/17/03 2 10,000,000 9,977,542
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FCAR Owner Trust I,
1.25%, 8/22/03 8,229,000 8,223,000
- --------------------------------------------------------------------------------
GOVCO, Inc.:
1.04%, 10/20/03 2 10,000,000 9,976,889
1.20%, 9/15/03 2 4,500,000 4,493,250
- --------------------------------------------------------------------------------
Grampian
Funding LLC:
1.05%, 10/23/03 2 15,000,000 14,963,687
1.08%, 9/4/03 2 4,000,000 3,995,920
6 | OPPENHEIMER CASH RESERVES
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Asset-Backed Continued
Lexington Parker
Capital Co. LLC,
1.23%, 10/6/03 2 $ 14,900,000 $ 14,866,401
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Neptune
Funding Corp.:
1.08%, 9/24/03 2 10,000,000 9,983,500
1.20%, 9/22/03 2 3,750,000 3,743,500
- --------------------------------------------------------------------------------
New Center
Asset Trust,
1.04%, 10/8/03 4,850,000 4,840,472
- --------------------------------------------------------------------------------
Perry Global
Funding LLC,
Series A:
0.95%, 9/25/03 2 9,000,000 8,986,800
1.23%, 8/27/03 2 6,000,000 5,994,670
- --------------------------------------------------------------------------------
Scaldis Capital LLC:
1.115%, 8/29/03 2 10,000,000 9,991,328
1.22%, 11/10/03 2 5,600,000 5,580,832
------------
123,388,974
- --------------------------------------------------------------------------------
Automobiles--1.1%
BMW US
Capital Corp.,
1.22%, 8/19/03 10,000,000 9,993,900
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Capital Markets--11.1%
Banc of America
Securities LLC,
1.19%, 8/1/03 1 15,000,000 15,000,000
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Bear Stearns
Cos., Inc.,
1.04%, 9/4/03 10,000,000 9,990,178
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Citigroup
Global Markets
Holdings Inc.,
1.03%, 10/6/03 12,500,000 12,476,396
- --------------------------------------------------------------------------------
Goldman Sachs
Group LP:
1.23%, 11/24/03 8,000,000 8,000,000
1.26%, 9/8/03 3 10,000,000 10,000,000
1.28%, 9/10/03 3 9,250,000 9,250,000
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Morgan Stanley,
0.875%, 12/2/03 1 10,000,000 10,000,000
- --------------------------------------------------------------------------------
Wachovia
Securities LLC,
1.29%, 3/26/04 1 30,000,000 30,000,000
------------
104,716,574
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Chemicals--2.1%
BASF AG:
1.23%, 8/7/03 2 $ 15,000,000 $ 14,996,925
1.26%, 8/29/03 2 5,000,000 4,995,100
------------
19,992,025
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Commercial Banks--0.7%
JPMorgan
Chase & Co.,
1.05%, 10/29/03 7,000,000 6,981,829
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Diversified Financial Services--1.4%
General Electric
Capital Corp.:
1.25%, 10/8/03 7,800,000 7,781,583
1.27%, 8/7/03 5,000,000 4,998,942
------------
12,780,525
- --------------------------------------------------------------------------------
Food Products--2.7%
Nestle Capital Corp.:
1.04%, 10/2/03 2 10,000,000 9,982,089
1.04%, 10/28/03 2 15,000,000 14,961,867
------------
24,943,956
- --------------------------------------------------------------------------------
Insurance--3.7%
General Electric
Capital
Assurance Co.,
1.17%, 12/1/03 1,3 15,000,000 15,000,000
- --------------------------------------------------------------------------------
Pacific Life
Insurance Co.,
1.20%, 8/1/03 1,3 5,000,000 5,000,000
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Prudential
Insurance Co.
of America,
1.16%, 10/1/03 1 10,000,000 10,000,000
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United of Omaha
Life Insurance Co.,
1.22%, 8/1/03 1,3 5,000,000 5,000,000
------------
35,000,000
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Leasing & Factoring--4.2%
American Honda
Finance Corp.:
1.239%, 2/4/04 1,4 10,000,000 10,000,000
1.27%, 8/4/03 1,4 10,000,000 10,000,000
- --------------------------------------------------------------------------------
Volkswagen of
America:
1.15%, 9/12/03 2 10,000,000 9,986,583
1.24%, 8/1/03 2 10,000,000 10,000,000
------------
39,986,583
7 | OPPENHEIMER CASH RESERVES
STATEMENT OF INVESTMENTS Continued
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Oil & Gas--1.1%
Total Capital,
1.265%, 8/6/03 2 $ 10,000,000 $ 9,998,243
- --------------------------------------------------------------------------------
Special Purpose Financial--12.7%
AriesOne Metafolio
Corp.:
1.07%, 8/5/03 2 6,200,000 6,199,263
1.08%, 8/8/03 2 9,537,000 9,534,997
- --------------------------------------------------------------------------------
Cooperative Assn
of Tractor Dealers,
Inc., Series A:
1.20%, 9/5/03 10,200,000 10,188,100
1.30%, 8/1/03 5,000,000 5,000,000
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Cooperative Assn
of Tractor Dealers,
Inc., Series B:
1.10%, 10/24/03 7,500,000 7,480,750
1.12%, 8/1/03 1,100,000 1,100,000
1.27%, 11/3/03 2,000,000 1,993,368
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CORSAIR Trust,
Series 1-1005,
1.339%, 9/17/03 1,4 10,000,000 10,000,000
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Independence
Funding LLC,
1.05%, 8/28/03 4 10,000,000 9,992,125
- --------------------------------------------------------------------------------
Intrepid Funding
Master Trust -
Series 1999A,
1.09%, 8/27/03 4 10,000,000 9,992,128
- --------------------------------------------------------------------------------
K2 (USA) LLC,
1.057%, 7/15/04 1,4 5,000,000 4,998,500
- --------------------------------------------------------------------------------
LINKS Finance LLC,
1.23%, 8/6/03 2 15,000,000 14,997,437
- --------------------------------------------------------------------------------
Parkland (USA) LLC,
1.09%, 2/24/04 1,4 10,000,000 10,000,000
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RACERS, Series
2002-31-C,
1.10%, 9/3/03 1,3 6,500,000 6,491,290
- --------------------------------------------------------------------------------
RACERS, Series
2002-36-C,
1.10%, 10/1/03 1,3 12,000,000 11,983,080
------------
119,951,038
------------
Total Short-Term Notes
(Cost $507,733,647) 507,733,647
- --------------------------------------------------------------------------------
U.S. Government Agencies--13.6%
Federal Home Loan Bank:
1.124%, 8/27/03 2,928,000 2,925,623
1.23%, 7/6/04 10,000,000 10,000,000
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
U.S. Government Agencies Continued
- --------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corp.:
1.05%, 12/1/03 $ 9,950,000 $ 9,914,595
1.06%, 11/21/03 10,000,000 9,967,022
1.08%, 12/12/03 10,000,000 9,960,100
1.09%, 9/22/03 5,000,000 4,992,128
- --------------------------------------------------------------------------------
Federal National
Mortgage Assn.:
1.03%, 10/22/03 25,000,000 24,941,175
1.085%, 9/3/03 15,000,000 14,984,669
1.14%, 11/26/03 10,000,000 9,962,950
1.25%, 7/7/04 10,000,000 10,000,000
- --------------------------------------------------------------------------------
FNMA Master
Credit Facility:
0.95%, 1/2/04 10,000,000 9,959,361
1.19%, 9/2/03 10,000,000 9,989,422
------------
Total U.S. Government
Agencies (Cost $127,597,045) 127,597,045
- --------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $920,008,638) 97.7% 920,008,638
- --------------------------------------------------------------------------------
Other Assets
Net of Liabilities 2.3 21,584,474
---------------------
Net Assets 100.0% $941,593,112
=====================
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.
1. Represents the current interest rate for a variable or increasing rate
security.
2. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $225,943,506, or 24% of the
Fund's net assets, and have been determined to be liquid pursuant to
guidelines adopted by the Board of Trustees.
3. Identifies issues considered to be illiquid. See Note 4 of Notes to
Financial Statements.
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 $64,982,753 or 6.90% of the Fund's net
assets as of July 31, 2003.
See accompanying Notes to Financial Statements.
8 | OPPENHEIMER CASH RESERVES
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- -------------------------------------------------------------------------------
Assets
Investments, at value (cost $920,008,638)--see
accompanying statement $920,008,638
- -------------------------------------------------------------------------------
Cash 2,098,374
- -------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 13,201,147
Investments sold 10,000,000
Interest 805,125
Other 133,615
------------
Total assets 946,246,899
- -------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed 4,099,264
Transfer and shareholder servicing agent fees 268,746
Distribution and service plan fees 85,641
Dividends 85,455
Trustees' compensation 397
Other 114,284
------------
Total liabilities 4,653,787
- -------------------------------------------------------------------------------
Net Assets $941,593,112
============
- -------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 941,550
- -------------------------------------------------------------------------------
Additional paid-in capital 940,651,562
------------
Net Assets $941,593,112
============
9 | OPPENHEIMER CASH RESERVES
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $465,843,139 and 465,853,617 shares of beneficial
interest outstanding) $1.00
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $316,750,401 and 316,709,441 shares of beneficial
interest outstanding) $1.00
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $106,649,584 and 106,637,714 shares of beneficial
interest outstanding) $1.00
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $52,349,988 and 52,349,232 shares of beneficial interest
outstanding) $1.00
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER CASH RESERVES
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Interest $15,517,227
- ------------------------------------------------------------------------------
Dividends 931
-----------
Total investment income 15,518,158
- --------------------------------------------------------------------------------
Expenses
Management fees 4,619,828
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 887,674
Class B 2,353,379
Class C 685,210
Class N 245,560
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,010,854
Class B 956,149
Class C 343,706
Class N 112,959
- --------------------------------------------------------------------------------
Shareholder reports 292,524
- --------------------------------------------------------------------------------
Custodian fees and expenses 18,008
- --------------------------------------------------------------------------------
Trustees' compensation 8,899
- --------------------------------------------------------------------------------
Other 163,419
-----------
Total expenses 12,698,169
Less reduction to custodian expenses (989)
Less voluntary reimbursement of management fees (404,272)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class A (449,748)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class B (139,102)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class C (77,200)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (33,450)
-----------
Net expenses 11,593,408
- --------------------------------------------------------------------------------
Net Investment Income 3,924,750
- --------------------------------------------------------------------------------
Net Realized Gain on Investments 73,568
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $3,998,318
===========
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER CASH RESERVES
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- -------------------------------------------------------------------------------------------
Operations
Net investment income $ 3,924,750 $ 8,291,141
- -------------------------------------------------------------------------------------------
Net realized gain 73,568 110,956
-------------------------------------
Net increase in net assets resulting
from operations 3,998,318 8,402,097
- -------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (2,404,957) (5,240,579)
Class B (1,044,894) (2,136,831)
Class C (272,812) (681,306)
Class N (202,087) (139,943)
- -------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (32,551) (46,805)
Class B (28,468) (33,340)
Class C (8,440) (9,923)
Class N (3,523) (2,414)
- -------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 25,949,775 43,941,742
Class B (101,017,788) 178,524,051
Class C (16,470,114) 38,029,783
Class N 9,589,171 38,485,352
- -------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) (81,948,370) 299,091,884
- -------------------------------------------------------------------------------------------
Beginning of period 1,023,541,482 724,449,598
-------------------------------------
End of period $ 941,593,112 $1,023,541,482
=====================================
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER CASH RESERVES
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .01 .01 .05 .05 .04
Net realized gain -- 1 -- 1 -- -- --
-------------------------------------------------------------------
Total from investment operations .01 .01 .05 .05 .04
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.01) (.01) (.05) (.05) (.04)
Distributions from net realized gain -- 1 -- 1 -- -- --
-------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (.01) (.01) (.05) (.05) (.04)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return 2 0.54% 1.31% 4.84% 5.10% 4.30%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $465,843 $439,893 $395,898 $317,198 $264,632
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $451,634 $405,285 $351,490 $312,440 $245,622
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.53% 1.30% 4.67% 5.00% 4.22%
Expenses, gross 1.16% 1.17% 1.15% 1.06% 1.10%
Expenses, net 1.00% 4,5,6 1.16% 4,5 1.15% 4 1.06% 4 1.10% 4
1. Less than $0.005 per share.
2. Assumes an 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 of less than one full year. Total returns reflect changes in net
investment income only. 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 of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary waiver of management fees.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER CASH RESERVES
FINANCIAL HIGHLIGHTS Continued
Class B Year Ended July 31, 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 1 .01 .04 .04 .04
Net realized gain -- 1 -- 1 -- -- --
-----------------------------------------------------------------
Total from investment operations -- .01 .04 .04 .04
- ------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 1 (.01) (.04) (.04) (.04)
Distributions from net realized gain -- 1 -- 1 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.01) (.04) (.04) (.04)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================
- ------------------------------------------------------------------------------------------------------------------------
Total Return 2 0.27% 0.76% 4.25% 4.52% 3.72%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $316,750 $417,768 $239,201 $172,345 $204,081
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $385,078 $288,676 $208,775 $225,824 $170,068
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.27% 0.75% 4.07% 4.40% 3.67%
Expenses, gross 1.37% 1.71% 1.70% 1.61% 1.65%
Expenses, net 1.27% 4,5,6 1.70% 4,5 1.70% 4 1.61% 4 1.65% 4
1. Less than $0.005 per share.
2. Assumes an 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 of less than one full year. Total returns reflect changes in net
investment income only. 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 of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary waiver of management fees.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER CASH RESERVES
Class C Year Ended July 31, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 1 .01 .04 .04 .04
Net realized gain -- 1 -- 1 -- -- --
-------------------------------------------------------------------
Total from investment operations -- .01 .04 .04 .04
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 1 (.01) (.04) (.04) (.04)
Distributions from net realized gain -- 1 -- 1 -- -- --
-------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.01) (.04) (.04) (.04)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return 2 0.25% 0.76% 4.26% 4.52% 3.73%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $106,650 $123,120 $85,076 $49,382 $49,607
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $113,569 $ 85,893 $68,741 $59,556 $37,244
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.24% 0.80% 4.07% 4.44% 3.67%
Expenses, gross 1.41% 1.71% 1.70% 1.61% 1.65%
Expenses, net 1.28% 4,5,6 1.70% 4,5 1.70% 4 1.61% 4 1.65% 4
1. Less than $0.005 per share.
2. Assumes an 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 of less than one full year. Total returns reflect changes in net
investment income only. 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 of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary waiver of management fees.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER CASH RESERVES
FINANCIAL HIGHLIGHTS Continued
Class N Year Ended July 31, 2003 2002 2001 1
- -------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 2 .01 .01
Net realized gain -- 2 -- 2 --
-----------------------------------------
Total from investment operations -- .01 .01
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 2 (.01) (.01)
Distributions from net realized gain -- 2 -- 2 --
-----------------------------------------
Total dividends and/or distributions to shareholders -- (.01) (.01)
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00
=========================================
- -----------------------------------------------------------------------------------------------
Total Return 3 0.43% 1.08% 1.49%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $52,350 $42,761 $4,275
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $49,145 $21,014 $ 737
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.41% 0.68% 3.03%
Expenses, gross 1.24% 1.47% 1.19%
Expenses, net 1.11% 5,6,7 1.46% 5,6 1.19% 5
1. For the period from March 1, 2001 (inception of offering) to July 31, 2001.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), 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 of less than one full year. Total returns
reflect changes in net investment income only. 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 of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Net of voluntary waiver of transfer agent fees.
7. Net of voluntary waiver of management fees.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER CASH RESERVES
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Cash Reserves (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The
Fund's investment objective is to seek the maximum current income that is
consistent with stability of principal. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class N shares. Class A shares
are sold at their offering price, which is the net asset value per share
without any initial sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. All classes of shares have identical rights and voting privileges.
Earnings, net assets and net asset value per share may differ by minor amounts
due to each class having its own expenses directly attributable to that class.
Classes A, B, C and N have separate distribution and/or service plans. Class B
shares will automatically convert to Class A shares six years after the date of
purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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, if any, to
shareholders, therefore, no federal income or excise tax provision is required.
The tax components of capital shown in the table below 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
for federal income tax purposes.
Undistributed Net Undistributed Accumulated Loss
Investment Income Long-Term Gain Carryforward
- ------------------------------------------------------------------------------
$190,621 $-- $--
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 may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends
17 | OPPENHEIMER CASH RESERVES
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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 July
31, 2003. Net assets of the Fund were unaffected by the reclassifications.
To (From) From Net
Ordinary Capital Tax Return Investment
Income (Loss) Gain 1 of Capital Loss
- -----------------------------------------------------------------------
$-- $586 $-- $--
1. $586, all of which was long-term capital gain, was distributed in connection
with Fund share redemptions.
The tax character of distributions paid during the years ended July 31, 2003
and July 31, 2002 was as follows:
Year Ended Year Ended
July 31, 2003 July 31, 2002
------------------------------------------------------
Distributions paid from:
Ordinary income $3,924,750 $ 8,198,659
Long-term capital gain 72,982 92,482
----------------------------
Total $3,997,732 $ 8,291,141
============================
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
18 | OPPENHEIMER CASH RESERVES
- --------------------------------------------------------------------------------
2. 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 July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------
Class A
Sold 645,438,961 $ 645,438,961 725,626,956 $ 725,626,956
Dividends and/or
distributions reinvested 2,267,138 2,267,138 5,044,104 5,044,104
Redeemed (621,756,324) (621,756,324) (686,729,318) (686,729,318)
-------------------------------------------------------------------------
Net increase 25,949,775 $ 25,949,775 43,941,742 $ 43,941,742
=========================================================================
- --------------------------------------------------------------------------------------------------------
Class B
Sold 387,633,392 $ 387,633,392 600,768,660 $ 600,768,660
Dividends and/or
distributions reinvested 989,218 989,218 1,988,404 1,988,404
Redeemed (489,640,398) (489,640,398) (424,233,013) (424,233,013)
-------------------------------------------------------------------------
Net increase (decrease) (101,017,788) $(101,017,788) 178,524,051 $ 178,524,051
=========================================================================
- --------------------------------------------------------------------------------------------------------
Class C
Sold 236,359,515 $ 236,359,515 242,337,624 $ 242,337,624
Dividends and/or
distributions reinvested 256,705 256,705 568,139 568,139
Redeemed (253,086,334) (253,086,334) (204,875,980) (204,875,980)
-------------------------------------------------------------------------
Net increase (decrease) (16,470,114) $ (16,470,114) 38,029,783 $ 38,029,783
=========================================================================
- --------------------------------------------------------------------------------------------------------
Class N
Sold 156,184,467 $ 156,184,467 84,380,207 $ 84,380,207
Dividends and/or
distributions reinvested 204,581 204,581 135,286 135,286
Redeemed (146,799,877) (146,799,877) (46,030,141) (46,030,141)
-------------------------------------------------------------------------
Net increase 9,589,171 $ 9,589,171 38,485,352 $ 38,485,352
=========================================================================
- --------------------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at
annual rate of 0.50% of the first $250 million of average annual net assets,
0.475% of the next $250 million, 0.45% of the next $250 million, 0.425% of the
next $250 million, and 0.40% of net assets in excess of $1 billion. Effective
December 6, 2002, the Manager has agreed to limit the Fund's management fee to
0.40% of the Fund's average net assets for each class of shares. This expense
limitation can be amended or terminated at any time without advance notice. As
a result of this limitation the Fund was reimbursed $404,272 for the year ended
July 31, 2003.
19 | OPPENHEIMER CASH RESERVES
NOTES TO FINANCIAL STATEMENTS Continued
- -------------------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates Continued
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended July 31, 2003, the Fund
paid $2,928,931 to OFS for services to the Fund.
Prior to April 28, 2003, OFS had voluntarily agreed to limit transfer and
shareholder servicing agent fees for all classes, up to an annual rate of 0.35%
of average net assets per class. Effective April 28, 2003, transfer agent fees
for all classes are limited to the lesser of 0.35% of average daily net assets
or to an amount (but not less than zero) necessary to allow each class of the
Fund to maintain a 7-day yield of at least approximately 0.10%. As a result of
this agreement the Fund was reimbursed $53,108 for the year ended July 31,
2003. Each of the above-mentioned voluntary undertakings may be further amended
or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Concessions Concessions Concessions Concessions
on Class A on Class B on Class C on Class N
Shares Shares Shares Shares
Advanced by Advanced by Advanced by Advanced by
Year Ended Distributor 1 Distributor 1 Distributor 1 Distributor 1
- -----------------------------------------------------------------------------------------------------------
July 31, 2003 $-- $363,611 $208,888 $887,944
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its own
resources at the time of sale.
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- -----------------------------------------------------------------------------------------------------------
July 31, 2003 $41,397 $845,548 $111,680 $1,224,487
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.20% of the average annual net assets of
Class A shares of the Fund. For the year ended July 31, 2003, expense under the
Class A Plan totaled $887,674, all of which were paid by the Distributor to
recipients, which included $89 retained by the Distributor and $148,511 which
was paid to an affiliate of the Manager. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years.
20 | OPPENHEIMER CASH RESERVES
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual service fee of 0.25% per year and an annual
asset-based sales charge of 0.25% per year on Class N shares. Effective January
1, 2003, the Fund decreased the asset-based sales charge on Class B and Class C
shares to 0.50% of average daily net assets per annum. The distributor is
entitled to receive a service fee of 0.25% per year under each plan, but the
Board of Trustees has not authorized the Fund to pay the service fees on Class
B and Class C shares at this time.
Distribution fees paid to the Distributor for the year ended July 31, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -----------------------------------------------------------------------------------------------------
Class B Plan $2,353,379 $2,353,379 $-- --%
Class C Plan 685,210 607,900 -- --
Class N Plan 245,560 221,182 2,421,058 4.62
- --------------------------------------------------------------------------------
4. Illiquid Securities
As of July 31, 2003, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 10% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of July
31, 2003 was $62,724,370, which represents 6.66% of the Fund's net assets.
21 | OPPENHEIMER CASH RESERVES
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Oppenheimer Cash Reserves:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Cash Reserves, including the statement of investments, as of July
31, 2003, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for the periods indicated. 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 auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 2003, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. 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 Cash Reserves as of July 31, 2003, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America.
Deloitte & Touche LLP
Denver, Colorado
August 21, 2003
22 | OPPENHEIMER CASH RESERVES
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2003
are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures 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
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (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 will be required to file new 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 first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
23 | OPPENHEIMER CASH RESERVES
TRUSTEES AND OFFICERS Unaudited
- ------------------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age by Trustee; Number of Portfolios in Fund Complex Currently Overseen by Trustee
INDEPENDENT TRUSTEES The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial,
CO 80112-3924. Each Trustee serves for an indefinite term, until his or her
resignation, retirement, death or removal.
James C. Swain, Formerly, Chief Executive Officer (until August 27, 2002) of the Board II Funds,
Chairman and Trustee Vice Chairman (until January 2, 2002) of OppenheimerFunds, Inc. (the Manager)
(since 1989) and President and a director (until 1997) of Centennial Asset Management
Age: 69 Corporation (a wholly-owned investment advisory subsidiary of the Manager).
Oversees 43 portfolios in the OppenheimerFunds complex.
William L. Armstrong, Chairman of the following private mortgage banking companies: Cherry Creek
Vice Chairman (since 2003) Mortgage Company (since 1991), Centennial State Mortgage Company (since 1994),
and Trustee (since 1999) The El Paso Mortgage Company (since 1993), Transland Financial Services, Inc.
Age: 66 (since 1997); Chairman of the following private companies: Great Frontier
Insurance (insurance agency) (since 1995), Ambassador Media Corporation and
Broadway Ventures (since 1984); a director of the following public companies:
Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992)
and UNUMProvident (insurance company) (since 1991). Mr. Armstrong is also a
Director/Trustee of Campus Crusade for Christ and the Bradley Foundation.
Formerly a director of the following: Storage Technology Corporation (a
publicly-held computer equipment company) (1991-February 2003), and
International Family Entertainment (television channel) (1992-1997), Frontier
Real Estate, Inc. (residential real estate brokerage) (1994-1999), and Frontier
Title (title insurance agency) (1995-June 1999); a U.S. Senator (January
1979-January 1991). Oversees 43 portfolios in the OppenheimerFunds complex.
Robert G. Avis, Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner
Trustee (since 1993) of private equity funds) (until February 2001); Chairman, President and Chief
Age: 72 Executive Officer of A.G. Edwards Capital, Inc. (until March 2000); Vice
Chairman and Director of A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards &
Sons, Inc. (its brokerage company subsidiary) (until March 1999); Chairman of
A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March 2000) of A.G. Edwards & Sons and
A.G. Edwards Trust Company. Oversees 43 portfolios in the OppenheimerFunds
complex.
George C. Bowen, Formerly (until April 1999): Senior Vice President (from September 1987) and
Trustee (since 1997) Treasurer (from March 1985) of the Manager; Vice President (from June 1983) and
Age: 66 Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Senior Vice President (since February 1992), Treasurer (since
July 1991) Assistant Secretary and a director (since December 1991) of
Centennial Asset Management Corporation; Vice President (since October 1989) and
Treasurer (since April 1986) of HarbourView Asset Management Corporation (an
investment advisory subsidiary of the Manager); President, Treasurer and a
director (June 1989-January 1990) of Centennial Capital Corporation (an
investment advisory subsidiary of the Manager); Vice President and Treasurer
(since August 1978) and Secretary (since April 1981) of Shareholder Services,
Inc. (a transfer agent subsidiary of the Manager); Vice President, Treasurer and
Secretary (since November 1989) of Shareholder Financial Services, Inc. (a
transfer agent subsidiary of the Manager); Assistant Treasurer (since March
1998) of Oppenheimer Acquisition Corp. (the Manager's parent corporation);
Treasurer (since November 1989) of Oppenheimer Partnership Holdings, Inc. (a
holding company subsidiary of the Manager); Vice President and Treasurer
24 | OPPENHEIMER CASH RESERVES
George C. Bowen, (since July 1996) of Oppenheimer Real Asset Management, Inc. (an investment
Continued advisory subsidiary of the Manager); Chief Executive Officer and director (since
March 1996) of MultiSource Services, Inc. (a broker-dealer subsidiary of the
Manager); Treasurer (since October 1997) of OppenheimerFunds International Ltd.
and OppenheimerFunds plc (offshore fund management subsidiaries of the Manager).
Oversees 43 portfolios in the OppenheimerFunds complex.
Edward L. Cameron, A member of The Life Guard of Mount Vernon, George Washington's home (since June
Trustee (since 1999) 2000). Formerly (March 2001 - May 2002) Director of Genetic ID, Inc. and its
Age: 64 subsidiaries (a privately held biotech company); a partner with
PricewaterhouseCoopers LLP (from 1974-1999) (an accounting firm) and Chairman
(from 1994-1998), Price Waterhouse LLP Global Investment Management Industry
Services Group. Oversees 43 portfolios in the OppenheimerFunds complex.
Jon S. Fossel, Chairman and Director (since 1998) of Rocky Mountain Elk Foundation (a
Trustee (since 1990) not-for-profit foundation); and a director (since October 1999) of P.R.
Age: 61 Pharmaceuticals (a privately held company) and UNUMProvident (an insurance
company) (since June 1, 2002). Formerly Chairman and a director (until October
1996) and President and Chief Executive Officer (until October 1995) of the
Manager; President, Chief Executive Officer and a director of Oppenheimer
Acquisition Corp., Shareholders Services Inc. and Shareholder Financials
Services, Inc. (until October 1995). Oversees 43 portfolios in the
OppenheimerFunds complex.
Sam Freedman, Director of Colorado Uplift (a non-profit charity) (since September 1984).
Trustee (since 1996) Formerly (until October 1994) Mr. Freedman held several positions in subsidiary
Age: 62 or affiliated companies of the Manager. Oversees 43 portfolios in the
OppenheimerFunds complex.
Beverly L. Hamilton, Trustee (since 1996) of MassMutual Institutional Funds and of MML Series
Trustee (since 2002) Investment Fund (open-end investment companies); Director of MML Services (since
Age: 56 April 1987) and America Funds Emerging Markets Growth Fund (since October 1991)
(both are investment companies), The California Endowment (a philanthropy
organization) (since April 2002), and Community Hospital of Monterey Peninsula,
(since February 2002); a trustee (since February 2000) of Monterey International
Studies (an educational organization), and an advisor to Unilever (Holland)'s
pension fund and to Credit Suisse First Boston's Sprout venture capital unit.
Mrs. Hamilton also is a member of the investment committees of the Rockefeller
Foundation, the University of Michigan and Hartford Hospital. Formerly,
President (February 1991-April 2000) ARCO Investment Management Company.
Oversees 44 portfolios in the OppenheimerFunds complex.
Robert J. Malone, Director (since 2001) of Jones Knowledge, Inc. (a privately held company), U.S.
Trustee (since 2002) Exploration, Inc., (since 1997), Colorado UpLIFT (a non-profit organization)
Age: 58 (since 1986) and a trustee of the Gallagher Family Foundation (non-profit
organization) (since 2000). Formerly, Chairman of U.S. Bank (a subsidiary of
U.S. Bancorp and formerly Colorado National Bank,) (July 1996-April 1, 1999) and
a director of Commercial Assets, Inc. (a REIT) (1993-2000). Oversees 44
portfolios in the OppenheimerFunds complex.
25 | OPPENHEIMER CASH RESERVES
TRUSTEES AND OFFICERS Unaudited / Continued
F. William Marshall, Jr., Trustee (since 1996) of MassMutual Institutional Funds and of MML Series
Trustee (since 2000) Investment Fund (open-end investment companies); Trustee (since 1987), Chairman
Age: 61 of the Board (since 2003) and Chairman of the investment committee (since 1994)
for the Worcester Polytech Institute; President and Treasurer (since January
1999) of the SIS Fund (a private not for profit charitable fund); Trustee (since
1995) of the Springfield Library and Museum Association; Trustee (since 1996) of
the Community Music School of Springfield. Formerly, member of the investment
committee of the Community Foundation of Western Massachusetts (1998 - 2003);
Chairman (January 1999-July 1999) of SIS & Family Bank, F.S.B. (formerly SIS
Bank); President, Chief Executive Officer and Director (May 1993-December 1998)
of SIS Bankcorp, Inc. and SIS Bank (formerly Springfield Institution for
Savings) and Executive Vice President (January 1999-July 1999) of Peoples
Heritage Financial Group, Inc. Oversees 43 portfolios in the OppenheimerFunds
complex.
- ------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE AND OFFICER The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New York, NY
10018. Mr. Murphy serves for an indefinite term, until his resignation, death or
removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Trustee (since September 2000) of the Manager; President and a director or trustee of
(since 2001) other Oppenheimer funds; President and a director (since July 2001) of
Age: 54 Oppenheimer Acquisition Corp. and of Oppenheimer Partnership Holdings, Inc.; a
director (since November 2001) of OppenheimerFunds Distributor, Inc.; Chairman
and a director (since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc.; President and a director (since July 2001)
of OppenheimerFunds Legacy Program (a charitable trust program established by
the Manager); a director of the following investment advisory subsidiaries of
OppenheimerFunds, Inc.: OFI Institutional Asset Management, Inc. and Centennial
Asset Management Corporation (since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and a director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; a director (since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of
the Manager); Executive Vice President (since February 1997) of Massachusetts
Mutual Life Insurance Company (the Manager's parent company); a director (since
June 1995) of DLB Acquisition Corporation (a holding company that owns shares of
David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and trustee (November 1999-November
2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end
investment companies); a director (September 1999-August 2000) of C.M. Life
Insurance Company; President, Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 73 portfolios in the
OppenheimerFunds complex.
26 | OPPENHEIMER CASH RESERVES
- ------------------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Mr. Zack, 498
Seventh Avenue, New York, NY 10018, for Messrs. Weiss and Wixted and Ms. Wolf,
6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual
term or until his or her earlier resignation, death or removal.
Barry D. Weiss, Vice President of the Manager (since July 2001); an officer of 6 portfolios in
Vice President (since 2001) the OppenheimerFunds complex; formerly Assistant Vice President and Senior
Age: 38 Credit Analyst of the Manager (February 2000-June 2001). Prior to joining the
Manager in February 2000, he was Associate Director, Structured Finance, Fitch
IBCA Inc. (April 1998 - February 2000); and News Director, Fitch Investors
Service (September 1996 - April 1998).
Carol E. Wolf, Senior Vice President (since June 2000) of the Manager; an officer of 6
Vice President (since 1998) portfolios in the OppenheimerFunds complex; formerly Vice President of the
Age: 51 Manager (June 1990 - June 2000).
Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer
Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder
Age: 43 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder
Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management subsidiaries of the Manager)
(since May 2000) and OFI Institutional Asset Management, Inc. (since November
2000); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer
Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer
(since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy
Program (since April 2000); formerly Principal and Chief Operating Officer
(March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An
officer of 89 portfolios in the OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002)
Vice President and Secretary of the Manager; General Counsel and a director (since November 2001) of
(since 2001) OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel
Age: 54 (since November 2001) of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of Oppenheimer Partnership
Holdings, Inc.; Senior Vice President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc., Shareholder Financial Services,
Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel (since November 2001) of
Centennial Asset Management Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director
(since November 2001) of OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy Program; Secretary (since
November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel
(November 2001-February 2002) and Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds
plc (October 1997-November 2001). An officer of 89 portfolios in the
OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
27 | OPPENHEIMER CASH RESERVES
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, possesses the technical
attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as
an "audit committee financial expert," and has designated Mr. Cameron as the
Audit Committee's financial expert. Mr. Cameron is an "independent" Trustee
pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
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.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)