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 811-3864
Oppenheimer Multiple Strategies Fund
(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
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: September 30
Date of reporting period: October 1, 2002 - September 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended September 30, 2003, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's Discussion of Fund Performance. The Fund's strong performance in
its equity portion during its fiscal year was primarily driven by its
stock-selection strategy. The portfolio manager's "bottom-up" investment
approach seeking companies with above-average fundamentals at below average
prices led it to stocks from a variety of market-capitalization ranges and
representing a number of investment styles. In addition, the Fund's performance
was supported by income derived from dividend-paying stocks and relatively
strong total returns from a diversified portfolio of bonds.
The single biggest individual contributor to the Fund's performance came from
its equity investment in Wella AG, the manufacturer of hair care products, which
was acquired at a substantial premium by consumer-products giant Procter &
Gamble during the reporting period. Diversified franchiser Cendant Corp. saw its
stock price rise as investors gradually recognized that its business
fundamentals were better than they had anticipated. Cendant's housing-related
businesses, such as realtor Century 21, benefited from a persistently strong
housing market, and its cyclical travel-related businesses, such as car rental
agencies Avis and Budget, strengthened along with the overall economy. Retailer
Sears Roebuck & Co. represented the third largest contributor to the Fund's
performance. Sears's stock rose dramatically after the company sold its
credit-card unit to financial services leader Citicorp, helping to reveal the
intrinsic value of Sears' assets and giving the company a substantial cash
reserve.
Other positive contributors during the reporting period included financial
services provider J.P. Morgan Chase & Co., international cable-television system
operator UnitedGlobalCom, Inc., electronics manufacturer Flextronics
International Ltd. and technology giant International Business Machines Corp.,
which was the Fund's largest single equity holding.
On the other hand, some holdings produced disappointing returns during the
period. Video game manufacturer Nintendo Co. Ltd. was hurt by disappointing
sales of its Game Cube system and a cyclical downturn among video games. We sold
the stock early in 2003. Despite what we believe to be the high quality of its
assets, media conglomerate Viacom, Inc., failed to benefit as much as we had
hoped from an upturn in advertising revenues. Also in the media group, program
provider Liberty Media Corp. failed in its bid for the entertainment assets of
Vivendi, which cast a pall over its stock in spite of its generous cash
reserves. As of the end of September, the Fund continued to hold positions in
Viacom and Liberty Media.
6 OPPENHEIMER MULTIPLE STRATEGIES FUND
The Fund's fixed-income segment successfully added value to the overall
performance through an emphasis on corporate bonds, which rallied dramatically
as investors became more comfortable with credit-related risks after many
issuers reduced debt and improved their cost structures in the wake of 2002's
corporate governance scandals. Mortgage-backed securities also contributed
positively to performance, primarily due to a focus on higher-coupon securities
that held up relatively well during the market-decline in July and August.
Finally, our decision to maintain slightly less duration, or interest-rate
sensitivity, than many of our peers, proved to significantly benefit performance
once rates began backing up in June. The Fund's holdings, strategies and
management are subject to change.
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2003. In the case of Class A shares, performance
is measured over a ten-year period. In the case of Class B shares, performance
is measured from inception of the Class on August 29, 1995. In the case of Class
C shares, performance is measured from inception of the Class on December 1,
1993. In the case of Class N shares, performance is measured from inception of
the Class on March 1, 2001. The Fund's performance reflects the deduction of the
maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge for Class B, Class C and Class N shares. The graphs assume
that all dividends and capital gains distributions were reinvested in additional
shares.
Because the Fund invests in a variety of equity and fixed-income securities,
the Fund's performance is compared to the performance of two indices: (i) the
Standard & Poor's (S&P) 500 Index, a broad-based index of equity securities
widely regarded as a general measure of the performance of the U.S. equity
securities market; and (ii) the Lehman Brothers Aggregate Bond Index, an
unmanaged index of U.S. Government Treasury and agency issues, investment grade
corporate bond issues and fixed-rate mortgage-backed securities. That Index is
widely regarded as a measure of the performance of the domestic debt securities
market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow show the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. 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 securities or
countries in the indices.
7 OPPENHEIMER MULTIPLE STRATEGIES FUND
FUND PERFORMANCE DISCUSSION
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class A)
S&P 500 Index
Lehman Brothers Aggregate Bond Index
Value of Investment S&P 500 Index Lehman Brothers
Date In Fund Reinvested Monthly Aggregate Bond Index
12/31/1993 $ 9,425 $10,000 $10,000
03/31/1994 9,126 9,621 9,713
06/30/1994 9,039 9,662 9,613
09/30/1994 9,449 10,133 9,672
12/31/1994 9,276 10,131 9,708
03/31/1995 9,896 11,117 10,198
06/30/1995 10,536 12,176 10,819
09/30/1995 11,141 13,143 11,032
12/31/1995 11,389 13,934 11,502
03/31/1996 11,851 14,682 11,298
06/30/1996 12,195 15,340 11,362
09/30/1996 1 12,667 15,814 11,572
12/31/1996 13,351 17,131 11,919
03/31/1997 13,445 17,591 11,853
06/30/1997 14,662 20,660 12,288
09/30/1997 15,893 22,207 12,696
12/31/1997 15,724 22,845 13,070
03/31/1998 16,858 26,029 13,274
06/30/1998 16,899 26,893 13,584
09/30/1998 15,144 24,224 14,158
12/31/1998 16,833 29,378 14,206
03/31/1999 17,040 30,841 14,135
06/30/1999 18,314 33,011 14,011
09/30/1999 17,611 30,955 14,106
12/31/1999 18,617 35,557 14,089
03/31/2000 19,676 36,371 14,400
06/30/2000 19,815 35,405 14,651
09/30/2000 19,955 35,062 15,092
12/31/2000 19,840 32,321 15,727
03/31/2001 19,626 28,491 16,204
06/30/2001 20,800 30,158 16,296
09/30/2001 18,505 25,733 17,047
12/31/2001 20,174 28,482 17,055
03/31/2002 20,286 28,561 17,071
06/30/2002 18,790 24,737 17,701
09/30/2002 16,918 20,466 18,512
12/31/2002 18,035 22,190 18,804
03/31/2003 17,833 21,491 19,066
06/30/2003 19,982 24,798 19,542
09/30/2003 20,637 25,454 19,514
Average Annual Total Returns of Class A Shares of the Fund at 9/30/03 2
1-Year 14.97% 5-Year 5.13% 10-Year 7.90%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class B)
S&P 500 Index
Lehman Brothers Aggregate Bond Index
Value of Investment S&P 500 Index Lehman Brothers
Date In Fund Reinvested Monthly Aggregate Bond Index
08/29/1995 $10,000 $10,000 $10,000
09/30/1995 10,241 10,422 10,097
12/31/1995 10,444 11,049 10,528
03/31/1996 10,825 11,642 10,341
06/30/1996 11,113 12,163 10,400
09/30/1996 1 11,526 12,540 10,592
12/31/1996 12,121 13,584 10,910
03/31/1997 12,176 13,949 10,849
06/30/1997 13,246 16,382 11,247
09/30/1997 14,332 17,609 11,621
12/31/1997 14,143 18,114 11,963
03/31/1998 15,144 20,639 12,149
06/30/1998 15,140 21,324 12,433
09/30/1998 13,544 19,208 12,959
12/31/1998 15,020 23,295 13,002
03/31/1999 15,176 24,455 12,938
06/30/1999 16,275 26,175 12,824
09/30/1999 15,623 24,545 12,911
12/31/1999 16,482 28,194 12,895
03/31/2000 17,379 28,840 13,180
06/30/2000 17,468 28,074 13,409
09/30/2000 17,545 27,802 13,814
12/31/2000 17,426 25,628 14,395
03/31/2001 17,195 22,592 14,831
06/30/2001 18,187 23,913 14,915
09/30/2001 16,166 20,404 15,603
12/31/2001 17,624 22,584 15,610
03/31/2002 17,722 22,647 15,625
06/30/2002 16,415 19,614 16,202
09/30/2002 14,780 16,228 16,944
12/31/2002 15,755 17,595 17,211
03/31/2003 15,579 17,041 17,450
06/30/2003 17,456 19,623 17,887
09/30/2003 18,029 20,183 17,861
Average Annual Total Returns of Class B Shares of the Fund at 9/30/03 2
1-Year 15.91% 5-Year 5.20% Since Inception 7.56%
1. The Fund changed its fiscal year end from 12/31 to 9/30.
2. See Notes on page 10 for further details.
8 OPPENHEIMER MULTIPLE STRATEGIES FUND
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class C)
S&P 500 Index
Lehman Brothers Aggregate Bond Index
Value of Investment S&P 500 Index Lehman Brothers
Date In Fund Reinvested Monthly Aggregate Bond Index
12/01/1993 $10,000 $10,000 $10,000
12/31/1993 10,219 10,121 10,054
03/31/1994 9,865 9,738 9,766
06/30/1994 9,746 9,778 9,665
09/30/1994 10,171 10,256 9,724
12/31/1994 9,963 10,254 9,761
03/31/1995 10,604 11,251 10,253
06/30/1995 11,261 12,324 10,878
09/30/1995 11,892 13,302 11,092
12/31/1995 12,124 14,103 11,564
03/31/1996 12,591 14,859 11,359
06/30/1996 12,925 15,525 11,424
09/30/1996 1 13,403 16,005 11,635
12/31/1996 14,101 17,338 11,984
03/31/1997 14,164 17,804 11,917
06/30/1997 15,415 20,910 12,355
09/30/1997 16,676 22,476 12,765
12/31/1997 16,468 23,121 13,141
03/31/1998 17,618 26,344 13,345
06/30/1998 17,625 27,218 13,657
09/30/1998 15,771 24,517 14,235
12/31/1998 17,481 29,733 14,283
03/31/1999 17,662 31,214 14,212
06/30/1999 18,951 33,410 14,087
09/30/1999 18,180 31,329 14,183
12/31/1999 19,176 35,987 14,165
03/31/2000 20,231 36,811 14,478
06/30/2000 20,320 35,833 14,730
09/30/2000 20,424 35,486 15,174
12/31/2000 20,271 32,712 15,812
03/31/2001 20,018 28,836 16,292
06/30/2001 21,168 30,522 16,384
09/30/2001 18,790 26,044 17,139
12/31/2001 20,441 28,827 17,147
03/31/2002 20,525 28,906 17,163
06/30/2002 18,976 25,036 17,797
09/30/2002 17,036 20,713 18,613
12/31/2002 18,122 22,458 18,906
03/31/2003 17,888 21,751 19,169
06/30/2003 20,005 25,097 19,648
09/30/2003 20,609 25,762 19,620
Average Annual Total Returns of Class C Shares of the Fund at 9/30/03 2
1-Year 19.98% 5-Year 5.50% Since Inception 7.63%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Multiple Strategies Fund (Class N)
S&P 500 Index
Lehman Brothers Aggregate Bond Index
Value of Investment S&P 500 Index Lehman Brothers
Date In Fund Reinvested Monthly Aggregate Bond Index
03/01/2001 $10,000 $10,000 $10,000
03/31/2001 9,640 9,367 10,050
06/30/2001 10,197 9,915 10,107
09/30/2001 9,070 8,460 10,573
12/31/2001 9,876 9,364 10,578
03/31/2002 9,930 9,390 10,588
06/30/2002 9,190 8,132 10,979
09/30/2002 8,266 6,728 11,482
12/31/2002 8,793 7,295 11,663
03/31/2003 8,678 7,065 11,825
06/30/2003 9,719 8,153 12,121
09/30/2003 10,025 8,368 12,103
Average Annual Total Returns of Class N Shares of the Fund at 9/30/03 2
1-Year 20.27% Since Inception 0.09%
The performance information for both indices in the graphs begins on 12/31/93
for Class A, 8/31/95 for Class B, 11/30/93 for Class C and 2/28/01 for Class N
shares.
Past performance cannot guarantee future results. Graphs are not drawn
to same scale.
9 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. 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 the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 4/24/87. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%. The Fund's maximum sales charge for Class A shares was lower
prior to 4/1/91, so actual performance may have been higher.
Class B shares of the Fund were first publicly offered on 8/29/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 12/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the one-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the one-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS September 30, 2003
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Common Stocks--52.3%
- --------------------------------------------------------------------------------
Consumer Discretionary--11.0%
- --------------------------------------------------------------------------------
Hotels, Restaurants & Leisure--1.6%
Brinker International, Inc. 1 97,300 $ 3,245,928
- --------------------------------------------------------------------------------
McDonald's Corp. 262,300 6,174,542
- --------------------------------------------------------------------------------
MGM Mirage, Inc. 1 49,700 1,816,535
-----------
11,237,005
- --------------------------------------------------------------------------------
Household Durables--0.9%
Toll Brothers, Inc. 1 198,100 6,026,202
- --------------------------------------------------------------------------------
Internet & Catalog Retail--0.0%
InterActiveCorp 1 900 29,745
- --------------------------------------------------------------------------------
Media--6.1%
AMC Entertainment, Inc. 1 195,600 2,621,040
- --------------------------------------------------------------------------------
Comcast Corp., Cl. A 1 141,16 4,357,971
- --------------------------------------------------------------------------------
EchoStar Communications Corp., Cl. A 1,2 130,40 4,990,408
- --------------------------------------------------------------------------------
General Motors Corp., Cl. H 1 374,400 5,357,664
- --------------------------------------------------------------------------------
Liberty Media Corp., Cl. A 1 1,063,400 10,602,098
- --------------------------------------------------------------------------------
Regal Entertainment Group 64,100 1,192,260
- --------------------------------------------------------------------------------
UnitedGlobalCom, Inc., Cl. A 1 689,200 4,211,012
- --------------------------------------------------------------------------------
Viacom, Inc., Cl. B 1,2 235,900 9,034,970
-----------
42,367,423
- --------------------------------------------------------------------------------
Multiline Retail--1.2%
Sears Roebuck & Co. 193,700 8,470,501
- --------------------------------------------------------------------------------
Specialty Retail--1.1%
Gap, Inc. (The) 2 175,700 3,007,984
- --------------------------------------------------------------------------------
OfficeMax, Inc. 1 280,000 2,623,600
- --------------------------------------------------------------------------------
Tiffany & Co. 42,000 1,567,860
-----------
7,199,444
- --------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.1%
Nike, Inc., Cl. B 2 12,000 729,840
- --------------------------------------------------------------------------------
Consumer Staples--3.4%
- --------------------------------------------------------------------------------
Beverages--1.0%
Adolph Coors Co., Cl. B 30,400 1,634,304
- --------------------------------------------------------------------------------
Constellation Brands, Inc., Cl. A 1 182,200 5,555,278
-----------
7,189,582
- --------------------------------------------------------------------------------
Food Products--1.2%
Tyson Foods, Inc., Cl. A 417,200 5,895,036
- --------------------------------------------------------------------------------
Unilever NV, NY Shares 41,300 2,444,134
-----------
8,339,170
11 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Personal Products--0.4%
Estee Lauder Cos., Inc. (The), Cl. A 80,300 $ 2,738,230
- --------------------------------------------------------------------------------
Tobacco--0.8%
Altria Group, Inc. 2 126,400 5,536,320
- --------------------------------------------------------------------------------
Energy--3.2%
- --------------------------------------------------------------------------------
Energy Equipment & Services--0.4%
Halliburton Co. 56,800 1,377,400
- --------------------------------------------------------------------------------
Schlumberger Ltd. 21,700 1,050,280
-----------
2,427,680
- --------------------------------------------------------------------------------
Oil & Gas--2.8%
BP plc, ADR 46,700 1,966,070
- --------------------------------------------------------------------------------
Devon Energy Corp. 24,300 1,171,017
- --------------------------------------------------------------------------------
Houston Exploration Co. 1 25,800 905,580
- --------------------------------------------------------------------------------
Kerr-McGee Corp. 28,200 1,258,848
- --------------------------------------------------------------------------------
Petroleo Brasileiro SA, Preference 109,000 2,269,359
- --------------------------------------------------------------------------------
Pioneer Natural Resources Co. 1 62,000 1,578,520
- --------------------------------------------------------------------------------
Talisman Energy, Inc. 79,800 3,790,567
- --------------------------------------------------------------------------------
TotalFinaElf SA, Sponsored ADR 36,500 2,766,700
- --------------------------------------------------------------------------------
Westport Resources Corp. 1 68,700 1,617,198
- --------------------------------------------------------------------------------
YUKOS, ADR 33,379 2,069,832
-----------
19,393,691
- --------------------------------------------------------------------------------
Financials--8.7%
- --------------------------------------------------------------------------------
Capital Markets--0.8%
Bank of New York Co., Inc. (The) 2 118,300 3,443,713
- --------------------------------------------------------------------------------
UBS AG 33,600 1,885,325
-----------
5,329,038
- --------------------------------------------------------------------------------
Commercial Banks--1.8%
U.S. Bancorp 146,806 3,521,876
- --------------------------------------------------------------------------------
Wachovia Corp. 53,100 2,187,189
- --------------------------------------------------------------------------------
Washington Mutual, Inc. 43,350 1,706,690
- --------------------------------------------------------------------------------
Wells Fargo Co. 98,600 5,077,900
-----------
12,493,655
- --------------------------------------------------------------------------------
Diversified Financial Services--2.5%
CIT Group, Inc. 98,000 2,818,480
- --------------------------------------------------------------------------------
Citigroup, Inc. 135,300 6,157,503
- --------------------------------------------------------------------------------
J.P. Morgan Chase & Co. 2 200,600 6,886,598
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 2 32,200 1,723,666
-----------
17,586,247
12 OPPENHEIMER MULTIPLE STRATEGIES FUND
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Insurance--2.2%
American International Group, Inc. 2 43,615 $ 2,516,585
- --------------------------------------------------------------------------------
Chubb Corp. 82,000 5,320,160
- --------------------------------------------------------------------------------
Platinum Underwriters Holdings Ltd. 13,400 376,540
- --------------------------------------------------------------------------------
Prudential Financial, Inc. 131,000 4,894,160
- --------------------------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 119,777 1,902,059
-----------
15,009,504
- --------------------------------------------------------------------------------
Real Estate--1.4%
Camden Property Trust 35,000 1,345,050
- --------------------------------------------------------------------------------
CarrAmerica Realty Corp. 45,000 1,343,250
- --------------------------------------------------------------------------------
Developers Diversified Realty Corp. 59,000 1,762,330
- --------------------------------------------------------------------------------
Host Marriott Corp. 1 458,900 4,923,997
-----------
9,374,627
- --------------------------------------------------------------------------------
Health Care--7.8%
- --------------------------------------------------------------------------------
Biotechnology--0.6%
Affymetrix, Inc. 1 63,700 1,337,063
- --------------------------------------------------------------------------------
Wyeth 65,600 3,024,160
-----------
4,361,223
- --------------------------------------------------------------------------------
Health Care Equipment & Supplies--1.6%
Beckman Coulter, Inc. 83,000 3,779,820
- --------------------------------------------------------------------------------
Guidant Corp. 2 112,700 5,279,995
- --------------------------------------------------------------------------------
Millipore Corp. 1 40,500 1,865,430
-----------
10,925,245
- --------------------------------------------------------------------------------
Health Care Providers & Services--1.0%
Aetna, Inc. 44,900 2,740,247
- --------------------------------------------------------------------------------
Covance, Inc. 1 88,000 1,969,440
- --------------------------------------------------------------------------------
Service Corp. International 1 435,000 1,987,950
-----------
6,697,637
- --------------------------------------------------------------------------------
Pharmaceuticals--4.6%
Abbott Laboratories 2 132,400 5,633,620
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 88,000 2,258,080
- --------------------------------------------------------------------------------
GlaxoSmithKline plc, ADR 85,500 3,625,200
- --------------------------------------------------------------------------------
Johnson & Johnson 2 100,196 4,961,706
- --------------------------------------------------------------------------------
Novartis AG 124,360 4,812,052
- --------------------------------------------------------------------------------
Pfizer, Inc. 193,940 5,891,897
- --------------------------------------------------------------------------------
Schering-Plough Corp. 207,500 3,162,300
- --------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc. 1 44,500 1,855,205
-----------
32,200,060
13 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------------
Industrials--5.5%
- ----------------------------------------------------------------------------------------
Aerospace & Defense--2.2%
Boeing Co. 52,600 $ 1,805,758
- ----------------------------------------------------------------------------------------
Empresa Brasileira de Aeronautica SA (Embraer), ADR 138,400 2,920,240
- ----------------------------------------------------------------------------------------
Northrop Grumman Corp. 2 22,500 1,939,950
- ----------------------------------------------------------------------------------------
Orbital Sciences Corp. 1 592,894 5,502,056
- ----------------------------------------------------------------------------------------
Raytheon Co. 107,600 3,012,800
-----------
15,180,804
- ----------------------------------------------------------------------------------------
Airlines--0.1%
Singapore Airlines Ltd. 156,000 956,640
- ----------------------------------------------------------------------------------------
Commercial Services & Supplies--2.0%
Brink's Co. (The) 100,000 1,736,000
- ----------------------------------------------------------------------------------------
Cendant Corp. 1 661,600 12,365,304
-----------
14,101,304
- ----------------------------------------------------------------------------------------
Industrial Conglomerates--0.3%
Tyco International Ltd. 2 101,400 2,071,602
- ----------------------------------------------------------------------------------------
Road & Rail--0.9%
Burlington Northern Santa Fe Corp. 56,300 1,625,381
- ----------------------------------------------------------------------------------------
Canadian National Railway Co. 30,400 1,581,408
- ----------------------------------------------------------------------------------------
Swift Transportation Co., Inc. 1 120,000 2,722,800
-----------
5,929,589
- ----------------------------------------------------------------------------------------
Information Technology--8.4%
- ----------------------------------------------------------------------------------------
Communications Equipment--0.2%
Cisco Systems, Inc. 1,2 28,000 547,120
- ----------------------------------------------------------------------------------------
QUALCOMM, Inc. 20,300 845,292
-----------
1,392,412
- ----------------------------------------------------------------------------------------
Computers & Peripherals--3.1%
Hewlett-Packard Co. 455,879 8,825,817
- ----------------------------------------------------------------------------------------
International Business Machines Corp. 2 143,300 12,657,689
-----------
21,483,506
- ----------------------------------------------------------------------------------------
Electronic Equipment & Instruments--1.4%
Flextronics International Ltd. 1 472,700 6,702,886
- ----------------------------------------------------------------------------------------
Keyence Corp. 14,830 3,148,795
-----------
9,851,681
- ----------------------------------------------------------------------------------------
IT Services--0.5%
Infosys Technologies Ltd., Sponsored ADR 14,500 987,044
- ----------------------------------------------------------------------------------------
Titan Corp. (The) 1 123,100 2,565,404
-----------
3,552,448
14 OPPENHEIMER MULTIPLE STRATEGIES FUND
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--2.3%
Analog Devices, Inc. 1,2 54,500 $ 2,072,090
- --------------------------------------------------------------------------------
ASML Holding NV 1 113,000 1,483,690
- --------------------------------------------------------------------------------
Intel Corp. 2 225,700 6,209,007
- --------------------------------------------------------------------------------
KLA-Tencor Corp. 1,2 29,100 1,495,740
- --------------------------------------------------------------------------------
Novellus Systems, Inc. 1 42,200 1,424,250
- --------------------------------------------------------------------------------
STMicroelectronics NV, NY Registered Shares 2 57,800 1,390,090
- --------------------------------------------------------------------------------
Teradyne, Inc. 1 94,800 1,763,280
-----------
15,838,147
- --------------------------------------------------------------------------------
Software--0.9%
BEA Systems, Inc. 1,2 143,000 1,723,150
- --------------------------------------------------------------------------------
Microsoft Corp. 98,000 2,723,420
- --------------------------------------------------------------------------------
Oracle Corp. 1 3,100 34,782
- --------------------------------------------------------------------------------
Red Hat, Inc. 1 137,000 1,383,700
-----------
5,865,052
- --------------------------------------------------------------------------------
Materials--1.5%
- --------------------------------------------------------------------------------
Chemicals--1.1%
Engelhard Corp. 106,000 2,933,020
- --------------------------------------------------------------------------------
International Flavors & Fragrances, Inc. 38,500 1,273,580
- --------------------------------------------------------------------------------
Monsanto Co. 74,640 1,786,882
- --------------------------------------------------------------------------------
Praxair, Inc. 24,200 1,499,190
-----------
7,492,672
- --------------------------------------------------------------------------------
Metals & Mining--0.4%
Companhia Vale do Rio Doce, Sponsored ADR 74,600 2,752,740
- --------------------------------------------------------------------------------
Telecommunication Services--1.3%
- --------------------------------------------------------------------------------
Diversified Telecommunication Services--0.6%
IDT Corp., Cl. B 1 203,000 3,666,180
- --------------------------------------------------------------------------------
UGC Europe, Inc. 1 2,473 129,467
- --------------------------------------------------------------------------------
WorldCom, Inc./WorldCom Group 1 450,000 28,800
-----------
3,824,447
- --------------------------------------------------------------------------------
Wireless Telecommunication Services--0.7%
AT&T Corp. 75,400 1,624,870
- --------------------------------------------------------------------------------
AT&T Wireless Services, Inc. 1,2 429,386 3,512,377
-----------
5,137,247
- --------------------------------------------------------------------------------
Utilities--1.5%
- --------------------------------------------------------------------------------
Electric Utilities--1.2%
AES Corp. (The) 1 534,000 3,962,280
- --------------------------------------------------------------------------------
Dominion Resources, Inc. 26,700 1,652,730
- --------------------------------------------------------------------------------
Edison International 1,2 31,500 601,650
15 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ---------------------------------------------------------------------------------------------------------
Electric Utilities Continued
PG&E Corp. 1 79,200 $ 1,892,880
------------
8,109,540
- ---------------------------------------------------------------------------------------------------------
Multi-Utilities & Unregulated Power--0.3%
Equitable Resources, Inc. 59,000 2,424,900
------------
Total Common Stocks (Cost $260,394,542) 361,626,800
- ---------------------------------------------------------------------------------------------------------
Preferred Stocks--0.2%
Qwest Trends Trust, 5.75% Cv. 3 30,000 227,640
- ---------------------------------------------------------------------------------------------------------
Rouse Co. (The), $3.00 Cv., Series B 23,000 1,319,740
------------
Total Preferred Stocks (Cost $2,242,150) 1,547,380
Units
- ---------------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
Comunicacion Celular SA Wts., Exp. 11/15/03 1,4 300 3
- ---------------------------------------------------------------------------------------------------------
Covergent Communications, Inc. Wts., Exp. 4/1/08 1,4 1,000 10
- ---------------------------------------------------------------------------------------------------------
Sun Healthcare Group, Inc. Wts., Exp. 2/28/05 1,4 496 248
------------
Total Rights, Warrants and Certificates (Cost $0) 261
Principal
Amount
- ---------------------------------------------------------------------------------------------------------
Asset-Backed Securities--8.0%
BMW Vehicle Owner Trust, Automobile Loan Certificates, Series 2003-A,
Cl. A2, 1.45%, 11/25/05 $2,890,000 2,893,797
- ---------------------------------------------------------------------------------------------------------
Capital Auto Receivables Asset Trust, Automobile Mtg.-Backed Nts.,
Series 2003-2, Cl. A2A, 1.20%, 5/16/05 2,040,000 2,039,404
- ---------------------------------------------------------------------------------------------------------
Caterpillar Financial Asset Trust, Equipment Loan Pass-Through Certificates,
Series 2003-A, Cl. A2, 1.25%, 10/25/05 1,230,000 1,230,591
- ---------------------------------------------------------------------------------------------------------
Centex Home Equity Co. LLC, Home Equity Loan Asset-Backed Certificates:
Series 2003-A, Cl. AF1, 1.836%, 10/25/17 497,522 498,251
Series 2003-B, Cl. AF1, 1.64%, 2/25/18 674,671 674,832
Series 2003-C, Cl. AF1, 2.14%, 7/25/18 4 1,930,000 1,930,000
- ---------------------------------------------------------------------------------------------------------
Chase Funding Mortgage Loan Asset-Backed Certificates,
Home Equity Mtg. Obligations:
Series 2003-3, Cl. 1A1, 1.20%, 8/25/17 5 1,058,635 1,058,645
Series 2003-4, Cl. 1A1, 1.24%, 9/25/17 4,5 2,097,347 2,097,441
- ---------------------------------------------------------------------------------------------------------
Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through
Certificates:
Series 2003-A, Cl. A2, 1.26%, 1/16/06 770,000 770,104
Series 2003-B, Cl. A2, 1.287%, 3/15/06 960,000 960,405
- ---------------------------------------------------------------------------------------------------------
CitiFinancial Mortgage Securities, Inc., Home Equity Collateralized Mtg.
Obligations:
Series 2003-1, Cl. AF1, 1.94%, 1/25/33 4 1,022,618 1,024,714
Series 2003-2, Cl. AF1, 1.21%, 5/25/33 5 1,191,176 1,190,972
Series 2003-3, Cl. AF1, 1.24%, 12/15/05 5 1,660,000 1,660,000
- ---------------------------------------------------------------------------------------------------------
DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates:
Series 2002-B, Cl. A2, 2.20%, 4/6/05 328,595 329,521
Series 2003-A, Cl. A2, 1.52%, 12/8/05 4 2,890,000 2,897,441
16 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------
Asset-Backed Securities Continued
Ford Credit Auto Owner Trust, Automobile Installment Sales,
Series 2003-A, Cl. A2A, 1.62%, 8/15/05 $1,030,250 $1,032,100
- -----------------------------------------------------------------------------------------------------------
Harley-Davidson Motorcycle Trust, Motorcycle Receivable Nts.:
Series 2002-2, Cl. A1, 1.91%, 4/16/07 1,119,007 1,123,032
Series 2003-3, Cl. A1, 1.50%, 1/15/08 2,985,206 2,993,410
- -----------------------------------------------------------------------------------------------------------
Honda Auto Receivables Owner Trust, Automobile Receivables Obligations:
Series 2003-1, Cl. A2, 1.46%, 9/19/05 1,860,000 1,861,885
Series 2003-2, Cl. A2, 1.34%, 12/21/05 2,220,000 2,221,668
Series 2003-3, Cl. A2, 1.52%, 4/21/06 4 3,210,000 3,219,439
- -----------------------------------------------------------------------------------------------------------
Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.:
Series 2003-A, Cl. A2, 1.45%, 5/16/05 2,660,000 2,662,914
Series 2003-B, Cl. A2, 1.20%, 11/15/05 2,970,000 2,969,159
- -----------------------------------------------------------------------------------------------------------
Residential Funding Mortgage Securities II, Inc., Home Equity Loan
Pass-Through Certificates, Series 2003-HS1, Cl. AI2, 1.22%, 1/25/33 4,5 1,376,027 1,376,437
- -----------------------------------------------------------------------------------------------------------
Toyota Auto Receivables Owner Trust, Automobile Mtg.-Backed ObligationS:
Series 2002-B, Cl. A3, 3.76%, 6/15/06 950,000 965,677
Series 2003-A, Cl. A2, 1.28%, 8/15/05 2,900,000 2,900,286
Series 2003-B, Cl. A2, 1.43%, 2/15/06 2,170,000 2,170,000
- -----------------------------------------------------------------------------------------------------------
USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.,
Series 2003-1, Cl. A2, 1.22%, 4/17/06 1,770,000 1,770,292
- -----------------------------------------------------------------------------------------------------------
Volkswagen Auto Loan Enhanced Trust, Automobile Loan Receivables,
Series 2003-1, Cl. A2, 1.11%, 12/20/05 3,810,000 3,806,524
- -----------------------------------------------------------------------------------------------------------
Whole Auto Loan Trust, Automobile Loan Receivables, Series 2003-1,
Cl. A2A, 1.40%, 4/15/06 6 3,090,000 3,090,966
------------
Total Asset-Backed Securities (Cost $55,378,490) 55,419,907
- -----------------------------------------------------------------------------------------------------------
Mortgage-Backed Obligations--22.4%
CIT Equipment Collateral, Equipment Receivable-Backed Nts.,
Series 2003-EF1, Cl. A2, 1.49%, 12/20/05 830,000 830,000
- -----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
7%, 5/1/29 1,188,626 1,256,258
7%, 9/1/33 6 1,980,000 2,090,756
- -----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Mtg. Pass-Through
Participation Certificates, Series 151, Cl. F, 9%, 5/15/21 134,992 136,000
- -----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment
Conduit Multiclass Pass-Through Certificates:
Series 2500, Cl. FD, 1.62%, 6/15/32 5 883,663 891,592
Series 2526, Cl. FE, 1.52%, 6/15/29 5 948,932 954,393
Series 2551, Cl. FD, 1.52%, 1/15/33 5 827,660 830,880
- -----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Structured Pass-Through Securities,
Collateralized Mtg. Obligations:
Series H003, Cl. A2, 1.88%, 1/15/07 534,827 537,675
Series H006, Cl. A1, 1.724%, 4/15/08 4 728,101 728,934
Series T-42, Cl. A2, 5.50%, 2/25/42 499,161 509,888
17 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------
Mortgage-Backed Obligations Continued
Federal National Mortgage Assn.:
5%, 10/1/33 6 $ 4,262,000 $ 4,263,330
5.50%, 10/1/33 6 20,285,000 20,697,029
6%, 5/1/16 5,692,946 5,944,284
6%, 10/25/33 6 18,542,000 19,138,830
6.50%, 12/1/27-2/1/28 1,478,216 1,544,129
6.50%, 10/1/33-11/25/33 6 40,086,000 41,770,880
7%, 10/25/33 6 39,754,000 42,027,452
8.50%, 7/1/32 323,630 348,689
- -----------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Collateralized Mtg. Obligations,
Gtd. Real Estate Mtg. Investment Conduit Pass-Through Certificates,
Trust 2002-77, Cl. WF, 1.52%, 12/18/32 5 1,439,008 1,443,091
- -----------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed
Security, Trust 321, Cl. 2, (9.30)%, 3/1/32 7 1,354,757 200,918
- -----------------------------------------------------------------------------------------------------------
Government National Mortgage Assn.:
5.375%, 3/20/26 89,409 91,379
7%, 4/15/26 801,541 855,842
7.50%, 5/15/27 3,178,709 3,408,776
- -----------------------------------------------------------------------------------------------------------
Prudential Mortgage Capital Co. II LLC, Commercial Mtg. Pass-Through
Certificates, Series PRU-HTG 2000-C1, Cl. A2, 7.306%, 10/6/15 1,362,000 1,595,417
- -----------------------------------------------------------------------------------------------------------
Salomon Brothers Mortgage Securities VII, Inc., Commercial Mtg.
Pass-Through Certificates:
Series 1996-B, Cl. 1, 7.254%, 4/25/26 4,5 66,142 56,841
Series 1996-C1, Cl. F, 8.467%, 1/20/06 4,5 250,000 233,437
- -----------------------------------------------------------------------------------------------------------
Washington Mutual Mortgage Securities Corp., Collateralized Mtg.
Obligations Pass-Through Certificates, Series 2003-AR7, Cl. A1,
1.51%, 8/25/33 5 2,156,759 2,153,082
-------------
Total Mortgage-Backed Obligations (Cost $152,390,754) 154,539,782
- -----------------------------------------------------------------------------------------------------------
U.S. Government Obligations--5.7%
Federal Home Loan Bank Unsec. Bonds, Series EY06, 5.25%, 8/15/06 2,476,000 2,683,407
- -----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Unsec. Nts.:
2.75%, 8/15/06 8 1,685,000 1,713,350
4.50%, 1/15/13-7/15/13 8 3,060,000 3,098,824
5.50%, 7/15/06 17,200,000 18,775,503
- -----------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. Unsec. Nts.:
4.25%, 7/15/07 3,300,000 3,493,165
6.375%, 6/15/09 8 500,000 576,489
7.25%, 1/15/10 8 5,400,000 6,497,912
- -----------------------------------------------------------------------------------------------------------
Tennessee Valley Authority Bonds:
5.375%, 11/13/08 685,000 755,322
7.125%, 5/1/30 603,000 753,147
- -----------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds:
4.25%, 8/15/13 118,000 121,001
6.50%, 11/15/26 8 510,000 616,841
- -----------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5%, 2/15/11 8 275,000 301,641
5.25%, 5/15/04 135,000 138,549
-------------
Total U.S. Government Obligations (Cost $39,087,981) 39,525,151
18 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------------------
Foreign Government Obligations--0.1%
United Mexican States Nts., 7.50%, 1/14/12 (Cost $740,429) $ 665,000 $ 753,778
- -----------------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes--12.6%
ABN Amro Bank NV (NY Branch), 7.125% Sub. Nts., Series B, 10/15/93 500,000 568,352
- -----------------------------------------------------------------------------------------------------------
AEP Resources, Inc., 6.50% Sr. Nts., 12/1/03 3 1,220,000 1,228,783
- -----------------------------------------------------------------------------------------------------------
Aetna, Inc., 7.375% Sr. Unsec. Nts., 3/1/06 555,000 618,772
- -----------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., 10% Sr. Unsec. Sub. Nts.,
Series B, 8/1/09 8 560,000 609,700
- -----------------------------------------------------------------------------------------------------------
American International Group, Inc./SunAmerica Global Financing VI,
6.30% Sr. Sec. Nts., 5/10/11 3 1,000,000 1,125,890
- -----------------------------------------------------------------------------------------------------------
Amgen, Inc., 8.125% Unsec. Debs., 4/1/97 9 110,000 140,329
- -----------------------------------------------------------------------------------------------------------
AT&T Wireless Services, Inc., 7.50% Sr. Unsec. Nts., 5/1/07 745,000 848,670
- -----------------------------------------------------------------------------------------------------------
AXA Group, 8.60% Unsec. Sub. Nts., 12/15/30 1,030,000 1,295,255
- -----------------------------------------------------------------------------------------------------------
Bank of America Corp.:
4.75% Sub. Nts., 8/15/13 8 790,000 790,223
7.80% Jr. Unsec. Sub. Nts., 2/15/10 500,000 601,397
- -----------------------------------------------------------------------------------------------------------
Bankers Trust Corp., 7.375% Unsec. Sub. Nts., 5/1/08 140,000 163,141
- -----------------------------------------------------------------------------------------------------------
Boeing Capital Corp.:
6.50% Nts., 2/15/12 9 1,000,000 1,098,011
7.375% Sr. Nts., 9/27/10 8 1,850,000 2,153,195
- -----------------------------------------------------------------------------------------------------------
British Sky Broadcasting Group plc, 8.20% Sr. Unsec. Nts., 7/15/09 575,000 683,182
- -----------------------------------------------------------------------------------------------------------
British Telecommunications plc, 7.625% Nts., 12/15/05 1,070,000 1,196,857
- -----------------------------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp., 5.90% Sr. Nts., 7/1/12 685,000 747,176
- -----------------------------------------------------------------------------------------------------------
CenterPoint Energy, Inc., 5.875% Nts., 6/1/08 3 980,000 987,039
- -----------------------------------------------------------------------------------------------------------
CIT Group, Inc., 7.75% Sr. Unsec. Unsub. Nts., 4/2/12 1,000,000 1,188,773
- -----------------------------------------------------------------------------------------------------------
Citigroup, Inc., 6.875% Unsec. Nts., 2/15/98 550,000 619,076
- -----------------------------------------------------------------------------------------------------------
Citizens Communications Co., 9.25% Sr. Nts., 5/15/11 760,000 970,214
- -----------------------------------------------------------------------------------------------------------
Coca-Cola Co. (The), 7.375% Unsec. Debs., 7/29/93 440,000 530,201
- -----------------------------------------------------------------------------------------------------------
Conoco, Inc., 6.95% Sr. Unsec. Nts., 4/15/29 500,000 577,940
- -----------------------------------------------------------------------------------------------------------
Credit Suisse First Boston, Inc. (USA), 6.125% Nts., 11/15/11 1,230,000 1,349,559
- -----------------------------------------------------------------------------------------------------------
CSX Corp., 6.25% Unsec. Nts., 10/15/08 780,000 874,118
- -----------------------------------------------------------------------------------------------------------
DaimlerChrysler NA Holding Corp., 6.40% Nts., 5/15/06 8,9 1,475,000 1,600,770
- -----------------------------------------------------------------------------------------------------------
Delhaize America, Inc., 9% Unsub. Debs., 4/15/31 1,195,000 1,335,412
- -----------------------------------------------------------------------------------------------------------
Delphi Corp., 6.55% Nts., 6/15/06 705,000 761,237
- -----------------------------------------------------------------------------------------------------------
Deutsche Telekom International Finance BV, 8.50% Unsub. Nts., 6/15/10 965,000 1,182,282
- -----------------------------------------------------------------------------------------------------------
Doman Industries Ltd., 8.75% Sr. Nts., 3/15/04 4,10 1,400,000 231,000
- -----------------------------------------------------------------------------------------------------------
Dominion Resources, Inc., 8.125% Sr. Unsub. Nts., 6/15/10 725,000 876,426
- -----------------------------------------------------------------------------------------------------------
DTE Energy Co., 6.375% Sr. Nts., 4/15/33 855,000 838,049
- -----------------------------------------------------------------------------------------------------------
El Paso Natural Gas Co., 6.75% Unsec. Unsub. Nts., 11/15/03 4 215,000 216,075
- -----------------------------------------------------------------------------------------------------------
EOP Operating LP:
6.763% Sr. Unsec. Nts., 6/15/07 295,000 330,370
8.375% Nts., 3/15/06 560,000 634,437
- -----------------------------------------------------------------------------------------------------------
FirstEnergy Corp., 7.375% Sr. Unsub. Nts., Series C, 11/15/31 645,000 662,647
19 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes Continued
Ford Motor Co.:
7.45% Bonds, 7/16/31 8 $ 300,000 $ 277,440
7.70% Unsec. Debs., 5/15/97 500,000 449,451
- ----------------------------------------------------------------------------------------------------------------
France Telecom SA:
9.25% Sr. Unsec. Nts., 3/1/11 490,000 599,553
9.75% Sr. Unsec. Nts., 3/1/31 5 360,000 482,311
- ----------------------------------------------------------------------------------------------------------------
Franklin Resources, Inc., 3.70% Nts., 4/15/08 585,000 593,806
- ----------------------------------------------------------------------------------------------------------------
Gap, Inc. (The), 6.90% Nts., 9/15/07 695,000 750,600
- ----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp.:
2.75% Nts., Series A, 9/25/06 8 430,000 435,022
5.875% Nts., Series A, 2/15/12 8 560,000 609,570
6% Nts., 6/15/12 8 500,000 548,895
6.75% Nts., Series A, 3/15/32 255,000 288,739
- ----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6.875% Unsec. Unsub. Nts., 8/28/12 8 1,900,000 1,969,037
- ----------------------------------------------------------------------------------------------------------------
General Motors Corp., 8.375% Sr. Unsec. Debs., 7/15/33 1,260,000 1,321,167
- ----------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The):
6.60% Sr. Unsec. Nts., 1/15/12 8 380,000 430,783
7.80% Sr. Unsec. Unsub. Nts., Series B, 1/28/10 500,000 601,709
- ----------------------------------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. (The), 2.375% Nts., 6/1/06 480,000 479,048
- ----------------------------------------------------------------------------------------------------------------
Health Net, Inc., 8.375% Sr. Unsec. Unsub. Nts., 4/15/11 665,000 803,835
- ----------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), 7.625% Sr. Nts., 6/1/12 8 2,165,000 2,267,920
- ----------------------------------------------------------------------------------------------------------------
Household Finance Corp., 7% Nts., 5/15/12 1,130,000 1,305,953
- ----------------------------------------------------------------------------------------------------------------
Huntsman Corp./ICI Chemical Co. plc, 13.08% Sr. Unsec. Disc. Nts., 12/31/09 11 800,000 320,000
- ----------------------------------------------------------------------------------------------------------------
Hutchison Whampoa International Ltd., 6.50% Nts., 2/13/13 3,8 1,090,000 1,136,426
- ----------------------------------------------------------------------------------------------------------------
IT Group, Inc., 11.25% Sr. Unsec. Sub. Nts., Series B, 4/1/09 1,4,10 600,000 --
- ----------------------------------------------------------------------------------------------------------------
J.P. Morgan Chase & Co., 6.75% Sub. Nts., 2/1/11 1,000,000 1,150,649
- ----------------------------------------------------------------------------------------------------------------
John Hancock Global Funding II, 7.90% Nts., 7/2/10 3 1,300,000 1,578,337
- ----------------------------------------------------------------------------------------------------------------
Kaiser Aluminum & Chemical Corp., 10.875% Sr. Nts., Series B, 10/15/06 1,4,8,10 250,000 193,750
- ----------------------------------------------------------------------------------------------------------------
Kinder Morgan, Inc., 6.50% Sr. Unsec. Nts., 9/1/12 810,000 907,285
- ----------------------------------------------------------------------------------------------------------------
Kroger Co. (The), 7.80% Sr. Nts., 8/15/07 1,255,000 1,463,020
- ----------------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc.:
0%/14.50% Sr. Unsec. Disc. Nts., 4/15/10 1,4,10,12 300,000 30,000
12.50% Sr. Nts., 4/15/10 4,10 600,000 75,000
- ----------------------------------------------------------------------------------------------------------------
Liberty Media Corp., 3.50% Nts., 9/25/06 8 825,000 823,008
- ----------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp., 8.50% Bonds, 12/1/29 810,000 1,086,843
- ----------------------------------------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc., 4.85% Nts., 2/15/13 8 620,000 630,115
- ----------------------------------------------------------------------------------------------------------------
MeriStar Hospitality Corp., 8.75% Sr. Unsec. Sub. Nts., 8/15/07 500,000 496,250
- ----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 3.375% Nts., Series B, 9/14/07 960,000 973,625
- ----------------------------------------------------------------------------------------------------------------
Morgan Stanley, 6.60% Nts., 4/1/12 8 760,000 859,305
- ----------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 7.75% Sr. Unsec. Debs., 12/1/45 8 1,060,000 1,247,328
- ----------------------------------------------------------------------------------------------------------------
Niagara Mohawk Power Corp., 5.375% Sr. Unsec. Nts., 10/1/04 515,000 532,956
- ----------------------------------------------------------------------------------------------------------------
NiSource Finance Corp., 7.875% Sr. Unsec. Nts., 11/15/10 985,000 1,175,955
- ----------------------------------------------------------------------------------------------------------------
NorAm Energy Corp., 6.375% Unsec. Term Enhanced Remarketable Nts., 11/1/03 131,000 131,266
- ----------------------------------------------------------------------------------------------------------------
Northrop Grumman Corp., 7.125% Sr. Nts., 2/15/11 870,000 1,018,524
20 OPPENHEIMER MULTIPLE STRATEGIES FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes Continued
Orbcomm Global LP, Escrow Shares, 8/15/04 1,4,10 $ 155,000 $ --
- ------------------------------------------------------------------------------------------------------------
Petroleos Mexicanos, 9.50% Sr. Sub. Nts., 9/15/27 510,000 605,625
- ------------------------------------------------------------------------------------------------------------
PF Export Receivables Master Trust, 3.748% Sr. Nts., Series B, 6/1/13 3 620,000 615,607
- ------------------------------------------------------------------------------------------------------------
Progress Energy, Inc., 6.55% Sr. Unsec. Nts., 3/1/04 1,600,000 1,632,326
- ------------------------------------------------------------------------------------------------------------
Prudential Holdings LLC, 8.695% Bonds, Series C, 12/18/23 3,8 1,215,000 1,496,133
- ------------------------------------------------------------------------------------------------------------
Prudential Insurance Co. of America, 8.30% Nts., 7/1/25 3 1,285,000 1,594,470
- ------------------------------------------------------------------------------------------------------------
Pulte Homes, Inc., 8.375% Sr. Nts., 8/15/04 310,000 322,539
- ------------------------------------------------------------------------------------------------------------
R&B Falcon Corp., 9.50% Sr. Unsec. Nts., 12/15/08 750,000 948,530
- ------------------------------------------------------------------------------------------------------------
Raytheon Co., 6.50% Unsec. Nts., 7/15/05 1,155,000 1,244,565
- ------------------------------------------------------------------------------------------------------------
Reed Elsevier Capital, Inc., 6.75% Bonds, 8/1/11 8 865,000 1,003,794
- ------------------------------------------------------------------------------------------------------------
Rogers Wireless Communications, Inc., 9.625% Sr. Sec. Nts., 5/1/11 231,000 266,805
- ------------------------------------------------------------------------------------------------------------
Safeway, Inc., 3.80% Sr. Unsec. Nts., 8/15/05 1,515,000 1,555,622
- ------------------------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 3.03% Nts., Series VII, 2/25/04 5 1,145,000 1,151,185
- ------------------------------------------------------------------------------------------------------------
Shopping Center Associates, 6.75% Sr. Unsec. Nts., 1/15/04 3 275,000 279,064
- ------------------------------------------------------------------------------------------------------------
Sprint Capital Corp., 8.75% Nts., 3/15/32 1,175,000 1,401,076
- ------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc., 10% Sr. Sec. Nts., 12/19/07 4 127,831 120,800
- ------------------------------------------------------------------------------------------------------------
Target Corp.:
5.40% Nts., 10/1/08 895,000 981,046
5.875% Sr. Unsec. Nts., 11/1/08 145,000 161,453
- ------------------------------------------------------------------------------------------------------------
TCI Communications, Inc., 9.80% Sr. Unsec. Debs., 2/1/12 1,965,000 2,597,364
- ------------------------------------------------------------------------------------------------------------
TECO Energy, Inc., 10.50% Sr. Unsec. Nts., 12/1/07 680,000 760,750
- ------------------------------------------------------------------------------------------------------------
Telefonos de Mexico SA, 8.25% Sr. Unsec. Nts., 1/26/06 665,000 743,137
- ------------------------------------------------------------------------------------------------------------
Time Warner Entertainment Co. LP:
8.375% Sr. Debs., 3/15/23 280,000 347,265
10.15% Sr. Nts., 5/1/12 308,000 416,237
- ------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 8 695,000 884,904
- ------------------------------------------------------------------------------------------------------------
Tyco International Group SA:
6.375% Nts., 10/15/11 1,000,000 1,036,250
6.75% Sr. Unsub. Nts., 2/15/11 8 1,470,000 1,558,200
- ------------------------------------------------------------------------------------------------------------
Vornado Realty LP, 5.625% Sr. Unsec. Unsub. Nts., 6/15/07 945,000 1,009,225
- ------------------------------------------------------------------------------------------------------------
Waste Management, Inc.:
7% Sr. Nts., 7/15/28 290,000 317,385
7.375% Sr. Unsub. Nts., 8/1/10 8 650,000 760,868
- ------------------------------------------------------------------------------------------------------------
Weyerhaeuser Co., 5.50% Unsec. Unsub. Nts., 3/15/05 1,180,000 1,239,713
- ------------------------------------------------------------------------------------------------------------
WorldCom, Inc., 6.95% Sr. Unsec. Nts., 8/15/28 1,8,10 1,000,000 332,500
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $84,972,922) 87,063,477
- ------------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds and Notes--0.0%
Gilat Satellite Networks Ltd., 0%/4% Cv. Sec. Nts., 10/1/1212 (Cost $103,764) 356,803 108,825
21 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- --------------------------------------------------------------------------------------------------------------
Structured Notes--2.5%
Deutsche Bank AG, COUNTS Corp. Sec. Credit Linked Nts.,
Series 2003-1, 2.85%, 1/7/05 4,5 $ 4,250,000 $ 4,190,075
- --------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank:
High Yield Index-100 Linked Nts., 8%, 6/20/08 8 745,470 760,380
High Yield Index-BB Linked Nts., 6.40%, 6/20/08 8,150,000 8,190,750
- --------------------------------------------------------------------------------------------------------------
UBS AG, High Grade Credit Linked Nts., 2.783%, 12/10/04 5 4,250,000 4,267,000
---------------
Total Structured Notes (Cost $17,567,558) 17,408,205
- --------------------------------------------------------------------------------------------------------------
Joint Repurchase Agreements--14.7% 13
Undivided interest of 24.34% in joint repurchase agreement (Principal
Amount/Market Value $416,677,000, with a maturity value of $416,688,574) with
PaineWebber, Inc., 1%, dated 9/30/03, to be repurchased at $101,421,817 on
10/1/03, collateralized by Federal Home Loan Mortgage Corp., 5%, 9/1/33, with a
value of $425,484,194 (Cost $101,419,000) 101,419,000 101,419,000
- --------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $714,297,590) 118.5% 819,412,566
- --------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (18.5) (128,108,772)
----------------------------
Net Assets 100.0% $691,303,794
============================
Footnotes to Statement of Investments
1. Non-income producing security.
2. A sufficient amount of liquid assets has been designated to cover outstanding
written options, as follows:
Contracts Expiration Exercise Premium Market Value
Subject to Call Dates Price Received See Note 1
- ---------------------------------------------------------------------------------------------------------
AT&T Wireless Services, Inc. 900 1/20/04 $ 12.50 $ 87,295 $ --
Abbott Laboratories 260 1/20/04 60.00 23,140 --
Altria Group, Inc. 200 1/20/04 40.00 99,399 98,000
American International Group, Inc. 80 1/20/04 90.00 15,760 --
Analog Devices, Inc. 200 1/20/04 55.00 33,000 1,000
Bank of New York Co., Inc. (The) 84 1/20/04 40.00 9,828 --
BEA Systems, Inc. 400 1/20/04 25.00 35,599 --
Cisco Systems, Inc. 230 1/20/04 25.00 18,170 4,600
EchoStar Communications Corp., Cl. A 260 1/20/04 35.00 32,533 135,200
Edison International 315 1/20/04 15.00 41,718 135,450
Gap, Inc. (The) 600 1/20/04 20.00 57,899 24,000
Guidant Corp. 200 1/20/04 50.00 17,248 40,000
Intel Corp. 450 1/20/04 30.00 42,299 63,000
International Business Machines Corp. 160 1/20/04 130.00 25,120 --
J.P. Morgan Chase & Co. 600 1/20/04 35.00 61,199 108,000
Johnson & Johnson 150 1/20/04 75.00 20,550 --
KLA-Tencor Corp. 180 1/20/04 50.00 67,859 108,000
Merrill Lynch & Co., Inc. 192 1/20/04 60.00 33,983 23,040
Nike, Inc., Cl. B 120 1/20/04 60.00 30,840 49,200
Northrop Grumman Corp. 75 1/20/04 135.00 28,275 --
STMicroelectronics NV, NY Registered Shares 240 1/20/04 40.00 42,479 --
Tyco International Ltd. 550 1/20/04 25.00 97,349 27,500
Viacom, Inc., Cl. B 380 1/20/04 60.00 107,440 --
---------------------------
$1,028,982 $816,990
===========================
22 OPPENHEIMER MULTIPLE STRATEGIES FUND
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 $10,269,389 or 1.49% of the Fund's net
assets as of September 30, 2003.
4. Identifies issues considered to be illiquid. See Note 9 of Notes to Financial
Statements.
5. Represents the current interest rate for a variable or increasing rate
security.
6. When-issued security to be delivered and settled after September 30, 2003.
See Note 1 of Notes to Financial Statements.
7. 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 $200,918 or 0.03% of the Fund's net assets as
of September 30, 2003.
8. Partial or fully-loaned security--See Note 10 of Notes to Financial
Statements.
9. Securities with an aggregate market value of $2,419,378 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
10. Issuer is in default. See Note 1 of Notes to Financial Statements.
11. Zero coupon bond reflects effective yield on the date of purchase.
12. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
13. The Fund may have elements of risk due to concentrated investments. Such
concentrations may subject the Fund to additional risks.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF ASSETS AND LIABILITIES September 30, 2003
- -------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (including cost and market value of $101,419,000 in
repurchase agreements) (including securities loaned of approximately
$22,896,000) (cost $714,297,590)--see accompanying statement $819,412,566
- -------------------------------------------------------------------------------------------------------------
Cash 40,471
- -------------------------------------------------------------------------------------------------------------
Collateral for securities loaned 23,210,449
- -------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 3,970,045
Futures margins 514,031
Shares of beneficial interest sold 337,075
Swap contract 231,387
Investments sold 91,853
Other 2,076
-------------
Total assets 847,809,953
- -------------------------------------------------------------------------------------------------------------
Liabilities
Options written, at value (premiums received $1,028,982)--see accompanying statement 816,990
- -------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 23,210,449
- -------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $129,944,063 purchased on a when-issued basis) 131,347,187
Distribution and service plan fees 347,080
Shares of beneficial interest redeemed 326,204
Shareholder reports 141,549
Trustees'compensation 131,080
Transfer and shareholder servicing agent fees 117,206
Other 68,414
-------------
Total liabilities 156,506,159
- -------------------------------------------------------------------------------------------------------------
Net Assets $691,303,794
=============
- -------------------------------------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $615,277,523
- -------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (129,239)
- -------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (30,684,282)
- -------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 106,839,792
-------------
Net Assets $691,303,794
=============
24 OPPENHEIMER MULTIPLE STRATEGIES FUND
- -------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$575,799,408 and 45,866,960 shares of beneficial interest outstanding) $12.55
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $13.32
- -------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $64,943,716
and 5,237,683 shares of beneficial interest outstanding) $12.40
- -------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $47,211,530
and 3,793,725 shares of beneficial interest outstanding) $12.44
- -------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $3,349,140
and 268,105 shares of beneficial interest outstanding) $12.49
See accompanying Notes to Financial Statements.
25 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENT OF OPERATIONS For the Year Ended September 30, 2003
- -----------------------------------------------------------------------------------------------
Investment Income
Interest $ 12,588,022
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $100,274) 5,305,235
- -----------------------------------------------------------------------------------------------
Lending fees 8,134
-------------
Total investment income 17,901,391
- -----------------------------------------------------------------------------------------------
Expenses
Management fees 4,456,996
- -----------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,028,194
Class B 578,085
Class C 383,689
Class N 7,982
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 679,440
Class B 170,922
Class C 77,051
Class N 7,702
- -----------------------------------------------------------------------------------------------
Shareholder reports 183,330
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 35,263
- -----------------------------------------------------------------------------------------------
Trustees' compensation 26,538
- -----------------------------------------------------------------------------------------------
Other 104,270
-------------
Total expenses 7,739,462
Less reduction to custodian expenses (3,775)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (2,304)
-------------
Net expenses 7,733,383
- -----------------------------------------------------------------------------------------------
Net Investment Income 10,168,008
- -----------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (including premiums on options exercised) (21,486,963)
Closing of futures contracts (709,155)
Closing and expiration of option contracts written 2,203,945
Foreign currency transactions (5,264,708)
-------------
Net realized loss (25,256,881)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 127,994,738
Translation of assets and liabilities denominated in foreign currencies 8,532,845
Futures contracts 1,274,642
-------------
Net change in unrealized appreciation 137,802,225
- -----------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $122,713,352
=============
See accompanying Notes to Financial Statements.
26 OPPENHEIMER MULTIPLE STRATEGIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended September 30, 2003 2002
- ---------------------------------------------------------------------------------------------------
Operations
Net investment income $ 10,168,008 $ 18,276,172
- ---------------------------------------------------------------------------------------------------
Net realized gain (loss) (25,256,881) 610,422
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 137,802,225 (73,388,061)
-----------------------------
Net increase (decrease) in net assets resulting from operations 122,713,352 (54,501,467)
- ---------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (9,895,590) (14,210,521)
Class B (549,555) (1,133,097)
Class C (411,935) (661,527)
Class N (26,078) (11,506)
- ---------------------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A (1,438,201) --
Class B (158,899) --
Class C (105,519) --
Class N (4,407) --
- ---------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (17,457,674)
Class B -- (1,994,603)
Class C -- (1,138,028)
Class N -- (3,571)
- ---------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A (441,692) (2,115,218)
Class B (9,391) 184,684
Class C 7,175,471 2,353,216
Class N 2,289,286 822,605
- ---------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 119,136,842 (89,866,707)
- ---------------------------------------------------------------------------------------------------
Beginning of period 572,166,952 662,033,659
-----------------------------
End of period [including undistributed (overdistributed) net
investment income of $(129,239) and $2,930,086, respectively] $691,303,794 $572,166,952
=============================
See accompanying Notes to Financial Statements.
27 OPPENHEIMER MULTIPLE STRATEGIES FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended September 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.51 $12.14 $14.23 $14.06 $13.69
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .21 .35 .43 .53 .54
Net realized and unrealized gain (loss) 2.08 (1.29) (1.40) 1.21 1.59
-----------------------------------------------------------------
Total from investment operations 2.29 (.94) (.97) 1.74 2.13
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.22) (.31) (.38) (.48) (.54)
Tax return of capital distribution (.03) -- -- -- --
Distributions from net realized gain -- (.38) (.74) (1.09) (1.22)
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.25) (.69) (1.12) (1.57) (1.76)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.55 $10.51 $12.14 $14.23 $14.06
=================================================================
- --------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 21.98% (8.58)% (7.27)% 13.31% 16.29%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $575,799 $483,311 $562,281 $639,648 $635,603
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $523,477 $570,796 $626,251 $644,356 $660,113
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 1.78% 2.84% 3.16% 3.71% 3.70%
Total expenses 1.11% 3 1.15% 3 1.01% 3 1.13% 3 1.09% 3
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 205% 31% 40% 33% 15%
<FN>
1. 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. Sales charges are
not reflected in the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
28 OPPENHEIMER MULTIPLE STRATEGIES FUND
Class B Year Ended September 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.38 $12.01 $14.08 $13.93 $13.57
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .09 .25 .31 .41 .41
Net realized and unrealized gain (loss) 2.07 (1.29) (1.36) 1.19 1.58
---------------------------------------------------------------
Total from investment operations 2.16 (1.04) (1.05) 1.60 1.99
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.11) (.21) (.28) (.36) (.41)
Tax return of capital distribution (.03) -- -- -- --
Distributions from net realized gain -- (.38) (.74) (1.09) (1.22)
---------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.14) (.59) (1.02) (1.45) (1.63)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.40 $10.38 $12.01 $14.08 $13.93
===============================================================
- --------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 20.91% (9.38)% (7.96)% 12.30% 15.35%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $64,944 $54,757 $63,487 $66,777 $68,875
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $57,836 $64,702 $67,959 $66,956 $73,673
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.81% 2.02% 2.37% 2.92% 2.85%
Total expenses 2.08% 3 1.97% 3 1.81% 3 1.94% 3 1.93% 3
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 205% 31% 40% 33% 15%
<FN>
1. 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. Sales charges are
not reflected in the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
29 OPPENHEIMER MULTIPLE STRATEGIES FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended September 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.42 $12.06 $14.13 $13.97 $13.61
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .11 .24 .31 .41 .42
Net realized and unrealized gain (loss) 2.06 (1.29) (1.37) 1.20 1.57
---------------------------------------------------------------
Total from investment operations 2.17 (1.05) (1.06) 1.61 1.99
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.12) (.21) (.27) (.36) (.41)
Tax return of capital distribution (.03) -- -- -- --
Distributions from net realized gain -- (.38) (.74) (1.09) (1.22)
---------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.15) (.59) (1.01) (1.45) (1.63)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.44 $10.42 $12.06 $14.13 $13.97
===============================================================
- --------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 20.98% (9.41)% (8.00)% 12.35% 15.28%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $47,212 $33,300 $36,171 $38,522 $38,978
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $38,407 $37,412 $39,030 $38,597 $43,701
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.90% 2.03% 2.37% 2.92% 2.85%
Total expenses 1.98% 3 1.96% 3 1.81% 3 1.94% 3 1.93% 3
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 205% 31% 40% 33% 15%
<FN>
1. 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. Sales charges are
not reflected in the total returns.Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
30 OPPENHEIMER MULTIPLE STRATEGIES FUND
Class N Year Ended September 30, 2003 2002 2001 1
- ----------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.48 $12.13 $13.67
- ----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .20 .39 .24
Net realized and unrealized gain (loss) 2.01 (1.38) (1.48)
-----------------------------------
Total from investment operations 2.21 (.99) (1.24)
- ----------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.17) (.28) (.30)
Tax return of capital distribution (.03) -- --
Distributions from net realized gain -- (.38) --
-----------------------------------
Total dividends and/or distributions
to shareholders (.20) (.66) (.30)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $12.49 $10.48 $12.13
===================================
- ----------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 21.27% (8.94)% (9.30)%
- ----------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $3,349 $798 $95
- ----------------------------------------------------------------------------------------
Average net assets (in thousands) $1,604 $454 $12
- ----------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.24% 2.49% 5.81%
Total expenses 1.76% 1.48% 1.32%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.62% N/A 4 N/A 4
- ----------------------------------------------------------------------------------------
Portfolio turnover rate 205% 31% 40%
<FN>
1. For the period from March 1, 2001 (inception of offering) to September 30,
2001.
2. 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. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. 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%.
</FN>
See accompanying Notes to Financial Statements.
31 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Multiple Strategies Fund (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 high total
investment return consistent with preservation 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 normally net asset value plus a
front-end 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. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
Structured Notes. The Fund invests in index-linked structured notes whose
principal and/or interest depend on the performance of an underlying index. The
structured notes are leveraged, which increases the volatility of each note's
market value relative to the change in the underlying index. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying financial statements. The Fund records a realized gain or loss
when a structured note is sold or matures. As of September 30, 2003, the market
value of these securities comprised 2.5% of the Fund's net assets, and resulted
in unrealized loss of $159,353.
32 OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
Securities on a When-Issued Basis. Delivery and payment for securities that
have been purchased by the Fund on a when-issued basis can take place a month
or more after the trade date. Normally the settlement date occurs within six
months after the trade date; however, the Fund may, from time to time, purchase
securities whose settlement date extends six months or more beyond 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
Fund maintains segregated assets with a market value equal to or greater than
the amount of its purchase commitments. 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 purchases while remaining substantially fully
invested. As of September 30, 2003, the Fund had entered into when-issued
purchase commitments of $129,944,063.
In connection with its ability to purchase securities on a when-issued
basis, the Fund may enter into forward roll transactions with respect to
mortgage-related securities. Forward roll transactions require the sale of
securities for delivery in the current month, and a simultaneous agreement with
the same counterparty to repurchase similar (same type, coupon and maturity)
but not identical securities on a specified future date. The Fund records the
incremental difference between the forward purchase and sale of each forward
roll as realized gain (loss) on investments.
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 to what was sold to the counterparty
at redelivery; counterparty credit risk; and the potential pay down speed
variance between the mortgage-related pools.
- --------------------------------------------------------------------------------
Security Credit Risk. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of September 30, 2003, securities with an
aggregate market value of $862,250, representing 0.12% of the Fund's net
assets, were in default.
- --------------------------------------------------------------------------------
Foreign Currency Translation. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
33 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. Secured by U.S. government securities, these
balances are invested in one or more repurchase agreements. Securities pledged
as collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal. In the
event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
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, 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 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
and unrealized appreciation or depreciation of securities and other investments
for federal income tax purposes.
34 OPPENHEIMER MULTIPLE STRATEGIES FUND
Net Unrealized
Appreciation
Based on Cost of
Securities and
Undistributed Undistributed Accumulated Other Investments
Net Investment Long-Term Loss for Federal
Income Gain Carryforward 1,2,3,4 Income Tax Purposes
---------------------------------------------------------------------------
$-- $-- $28,782,459 $104,909,436
1. As of September 30, 2003, the Fund had $3,900,101 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of September 30, 2003,
details of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $ 28,532
2011 3,871,569
----------
Total $3,900,101*
==========
*Includes $28,532 from capital loss carryforward acquired in the September 4,
2003 merger with Oppenheimer Select Managers QM Active Balanced Fund.
2. During the fiscal years ended September 30, 2003 and September 30, 2002, the
Fund did not utilize any capital loss carryforwards.
3. As of September 30, 2003, the Fund had $20,597,738 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2012. Additionally, the Fund had $3,084,875 of
post-October foreign currency losses which were deferred.
4. The Fund had $1,199,745 of straddle losses which were deferred.
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 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 September 30, 2003. Net assets
of the Fund were unaffected by the reclassifications.
From From Net
Ordinary Capital Tax Return Investment
Income Loss of Capital Loss
------------------------------------------------------
$637,149 $2,358,874 $1,707,026 $--
The tax character of distributions paid during the years ended September 30,
2003 and September 30, 2002 was as follows:
Year Ended Year Ended
September 30, 2003 September 30, 2002
---------------------------------------------------------
Distributions paid from:
Ordinary income $10,883,158 $16,739,835
Long-term capital gain -- 19,870,692
Return of capital 1,707,026 --
--------------------------------
Total $12,590,184 $36,610,527
================================
35 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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 as of September 30, 2003 are noted below. 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
and other investments $838,937,889
============
Gross unrealized appreciation $119,170,115
Gross unrealized depreciation (14,260,679)
------------
Net unrealized appreciation $104,909,436
============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 2003, the Fund's projected benefit obligations were increased by
$4,785 and payments of $9,736 were made to retired trustees, resulting in an
accumulated liability of $125,530 as of September 30, 2003.
The Board of Trustees has adopted a deferred compensation 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. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
selected Oppenheimer funds. 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 to the Plan.
- --------------------------------------------------------------------------------
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 and paid quarterly. Capital gain distributions, if any, are declared
and paid annually.
- --------------------------------------------------------------------------------
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, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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.
36 OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended September 30, 2003 Year Ended September 30, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------
Class A
Sold 4,105,517 $47,076,255 3,119,704 $38,219,004
Dividends and/or
distributions reinvested 867,685 10,173,237 2,300,598 28,557,940
Acquisition--Note 11 460,912 5,789,058 -- --
Redeemed (5,572,268) (63,480,242) (5,720,740) (68,892,162)
----------------------------------------------------------------
Net decrease (138,154) $ (441,692) (300,438) $(2,115,218)
================================================================
- --------------------------------------------------------------------------------------------
Class B
Sold 1,845,061 $21,105,571 1,621,677 $19,347,586
Dividends and/or
distributions reinvested 56,269 654,993 237,129 2,923,736
Acquisition--Note 11 61,992 768,077 -- --
Redeemed (2,000,366) (22,538,032) (1,869,194) (22,086,638)
----------------------------------------------------------------
Net increase (decrease) (37,044) $ (9,391) (10,388) $ 184,684
================================================================
- --------------------------------------------------------------------------------------------
Class C
Sold 1,252,468 $14,407,664 785,399 $ 9,356,388
Dividends and/or
distributions reinvested 40,146 469,075 129,600 1,602,446
Acquisition--Note 11 93,553 1,163,802 -- --
Redeemed (787,972) (8,865,070) (719,571) (8,605,618)
----------------------------------------------------------------
Net increase 598,195 $ 7,175,471 195,428 $ 2,353,216
================================================================
- --------------------------------------------------------------------------------------------
Class N
Sold 170,483 $ 1,997,262 83,325 $ 1,000,643
Dividends and/or
distributions reinvested 2,505 29,692 1,206 14,492
Acquisition--Note 11 47,795 597,438 -- --
Redeemed (28,893) (335,106) (16,163) (192,530)
----------------------------------------------------------------
Net increase 191,890 $ 2,289,286 68,368 $ 822,605
================================================================
37 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2003, were
$1,304,825,376 and $1,192,109,085, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager are in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, 0.60% of the next $700 million, and 0.58% of average
annual net assets in excess of $1.5 billion.
- --------------------------------------------------------------------------------
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 September 30, 2003, the
Fund paid $968,967 to OFS for services to the Fund.
OFS has 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. This undertaking may be 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.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End On Class A On Class B On Class C On Class N
Sales Charges Sales Charges Shares Shares Shares Shares
On Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- --------------------------------------------------------------------------------------------------------
September 30, 2003 $444,448 $149,815 $26,447 $389,821 $69,428 $14,816
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
- -------------------------------------------------------------------------------
September 30, 2003 $2,174 $172,208 $4,803 $4,571
38 OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
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 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended September 30, 2003, expense
under the Class A Plan totaled $1,028,194, all of which were paid by the
Distributor to recipients, which included $2,776 retained by the Distributor
and $65,839 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.
- --------------------------------------------------------------------------------
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 asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the year ended September 30,
2003, were as follows:
Distributor's
Distributor's Aggregate
Aggregate Uncompensated
Uncompensated Expenses as %
Total Expenses Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------
Class B Plan $578,085 $424,390 $2,531,951 3.90%
Class C Plan 383,689 56,716 960,179 2.03
Class N Plan 7,982 6,576 26,336 0.79
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation
or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of September 30, 2003, the Fund had no outstanding foreign currency
contracts.
39 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a negotiated price on a stipulated future
date. Futures contracts are traded on a commodity exchange. The Fund may buy
and sell futures contracts that relate to broadly based securities indices
"financial futures" or debt securities "interest rate futures" in order to gain
exposure to or protection from changes in market value of stock and bonds or
interest rates. The Fund may also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts as a hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to market changes as it
may be more efficient or cost effective than actually buying fixed income
securities.
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. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or has expired.
Cash held by the broker to cover initial margin requirements on open futures
contracts is noted in the Statement of Assets and Liabilities. Securities held
in collateralized accounts to cover initial margin requirements on open futures
contracts are noted in the Statement of Investments. The Statement of Assets
and Liabilities reflects a receivable and/or payable for the daily mark to
market for variation margin. Realized gains and losses are reported on the
Statement of Operations as closing and expiration of futures contracts. The net
change in unrealized appreciation and depreciation is reported on the Statement
of Operations.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of September 30, 2003, the Fund had outstanding futures contracts as
follows:
Unrealized
Expiration Number of Valuation as of Appreciation
Contract Description Dates Contracts Sept.30,2003 (Depreciation)
- ---------------------------------------------------------------------------------------
Contracts to Purchase
U.S. Long Bonds 12/19/03 148 $16,599,125 $ 364,721
U.S. Treasury Nts., 2 yr. 12/29/03 172 37,082,125 470,604
U.S. Treasury Nts., 10 yr. 12/19/03 332 38,055,500 1,371,238
-----------
2,206,563
-----------
Contracts to Sell
U.S. Treasury Nts., 5 yr. 12/19/03 277 31,430,844 (931,922)
-----------
$1,274,641
===========
40 OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
7. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. 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 of not being able to
enter into a closing transaction if a liquid secondary market does not exist.
Written option activity for the year ended September 30, 2003 was as follows:
Call Options
-----------------------
Number of Amount of
Contracts Premiums
- ----------------------------------------------------
Options outstanding as of
September 30, 2002 5,477 $ 1,203,452
Options written 14,970 2,366,252
Options closed or expired (12,829) (2,366,463)
Options exercised (792) (174,259)
----------------------
Options outstanding as of
September 30, 2003 6,826 $1,028,982
======================
41 OPPENHEIMER MULTIPLE STRATEGIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
8. Total Return Swap Contracts
The Fund may enter into a total return swap transaction to maintain a total
return on a particular investment, or portion of its portfolio, or for other
non-speculative purposes. Because the principal amount is not exchanged, it
represents neither an asset nor a liability to either counterparty, and is
referred to as notional. The Fund records an increase or decrease to interest
income, in the amount due to or owed by the Fund at termination or settlement.
Total return swaps are subject to risks (if the counterparty fails to meet its
obligations).
As of September 30, 2003, the Fund had entered into the following total return
swap agreements:
Paid by Received by
Swap the Fund at the Fund at Termination Unrealized
Counterparty Notional September 30, 2003 September 30, 2003 Date Appreciation
- --------------------------------------------------------------------------------------------------------
Value of
Six-Month total return of
LIBOR less Lehman Brothers
Deutsche Bank AG $7,526,000 40 basis points CMBS Index 12/31/03 $231,387
- --------------------------------------------------------------------------------
9. Illiquid Securities
As of September 30, 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
September 30, 2003 was $18,621,645, which represents 2.69% of the Fund's net
assets.
- --------------------------------------------------------------------------------
10. Securities Lending
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of US
Treasury obligations or cash, against the loaned securities and maintains
collateral in an amount not less than 100% of the market value of the loaned
securities during the period of the loan. The market value of the loaned
securities is determined at the close of business of the funds and any
additional required collateral is delivered to the Fund on the next business
day. If the borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the Fund could experience delays and
cost in recovering the securities loaned or in gaining access to the
collateral. Cash collateral is invested in cash equivalents. As of September
30, 2003, the Fund had on loan securities valued at $22,896,076. Cash of
$23,210,449 was received as collateral for the loans, and has been invested in
approved instruments.
42 OPPENHEIMER MULTIPLE STRATEGIES FUND
- --------------------------------------------------------------------------------
11. Acquisition of Oppenheimer Select Managers QM Active Balanced Fund
On September 5, 2003, the Fund acquired all of the net assets of Oppenheimer
Select Managers QM Active Balanced Fund, pursuant to an Agreement and Plan of
Reorganization approved by the Oppenheimer Select Managers QM Active Balanced
Fund shareholders on August 29, 2003. The Fund issued (at an exchange ratio of
0.743061 for Class A, 0.748082 for Class B, 0.746018 for Class C and 0.746337
for Class N of the Fund to one share of Oppenheimer Multiple Strategies Fund)
460,912: 61,992: 93,553 and 47,795 shares of beneficial interest for Class A,
Class B, Class C and Class N, respectively, valued at $5,789,058, $768,077,
$1,163,802 and $597,438 in exchange for the net assets, resulting in combined
Class A net assets of $576,426,341, Class B net assets of $63,310,584, Class C
net assets of $45,976,371 and Class N net assets of $2,902,200 on September 5,
2003. The net assets acquired included net unrealized appreciation of $535,545
and unused capital loss carryforward of $28,532 potential utilization subject
to tax limitation. The exchange qualified as a tax-free reorganization for
federal income tax purposes.
- --------------------------------------------------------------------------------
12. Borrowing and Lending Arrangements
The Fund entered into an "interfund borrowing and lending arrangement" with
other funds in the Oppenheimer funds complex, to allow funds to borrow for
liquidity purposes. The arrangement was initiated pursuant to exemptive relief
granted by the Securities and Exchange Commission to allow these affiliated
funds to lend money to, and borrow money from, each other, in an attempt to
reduce borrowing costs below those of bank loan facilities. Under the
arrangement the Fund may lend money to other Oppenheimer funds and may borrow
from other Oppenheimer funds at a rate set by the Fund's Board of Trustees,
based upon a recommendation by the Manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the year
ended or at September 30, 2003.
43 OPPENHEIMER MULTIPLE STRATEGIES FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer Multiple Strategies Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Multiple Strategies Fund, including the statement of investments,
as of September 30, 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 each of the five
years in the 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 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 September 30, 2003, by
correspondence with the custodian and broker 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 Multiple Strategies Fund as of September 30, 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
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
October 21, 2003
44 OPPENHEIMER MULTIPLE STRATEGIES FUND
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.
Dividends paid by the Fund during the fiscal year ended September 30, 2003
which are not designated as capital gain distributions should be multiplied by
53.96% to arrive at the amount eligible for the corporate dividend-received
deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal year
ended September 30, 2003 which are not designated as capital gain distributions
are eligible for lower individual income tax rates to the extent that the Fund
has received qualified dividend income as stipulated by recent tax legislation.
$5,405,509 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2004, shareholders of record will
receive information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
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.
45 OPPENHEIMER MULTIPLE STRATEGIES FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held
Fund, Length of Service, Age by Trustee; Number of Portfolios in Fund Complex Currently Overseen by Trustee
INDEPENDENT The address of each Trustee in the chart below is 6803 S. Tucson Way,
TRUSTEES Centennial, CO 80112-3924. Each Trustee oversees 25 portfolios in the
OppenheimerFunds complex except for Mr. Galli who also serves as trustee of 10
other Oppenheimer funds that are not Board I funds. Each Trustee serves for an
indefinite term, until his or her resignation, retirement, death or removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law firm). Other directorships:
Chairman of the Board of Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002);
Trustees (since 2003), formerly a director of Caterpillar, Inc. (1993-December 2002).
Trustee (since 1991)
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May
Trustee (since 1996) 2000-2002) of Research Foundation of AIMR (investment research, non-profit) and
Age: 70 Vice Chairman (October 1995-December 1997) of OppenheimerFunds, Inc. (the
Manager).
Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J., a
Trustee (since 1999) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 64 Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A
member of: the National Academy of Sciences (since 1979), American Academy of
Arts and Sciences (since 1995), American Philosophical Society (since 1996) and
Council on Foreign Relations (since 2002). Formerly a director of Bankers Trust
New York Corporation (1994-1999).
Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. (privately-held financial
Trustee (since 2002) adviser); Managing Director (since 2002) Carmona Motley, Inc. (privately-held
Age: 51 financial adviser); Formerly he held the following positions: Managing Director
(January 1998-December 2001), Carmona Motley Hoffman Inc. (privately-held
financial adviser); Managing Director (January 1992-December 1997), Carmona
Motley & Co. (privately-held financial adviser).
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric utility holding company) and
Trustee (since 1987) Prime Retail, Inc. (real estate investment trust); formerly a director of
Age: 76 Dominion Energy, Inc. (electric power and oil & gas producer), President and
Chief Executive Officer of The Conference Board, Inc. (international economic
and business research) and a director of Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and American Manufacturers Mutual Insurance
Company.
Edward V. Regan, President, Baruch College, CUNY; a director of RBAsset (real estate manager); a
Trustee (since 1993) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 73 and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for the City of New York, New York
State Comptroller and Trustee of New York State and Local Retirement Fund.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Trustee (since 1989) governance consulting and executive recruiting); a life trustee of International
Age: 71 House (non-profit educational organization), and a trustee (since 1996) of the
Greenwich Historical Society.
46 OPPENHEIMER MULTIPLE STRATEGIES FUND
Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the Board (January 1969-August 1999) of the Manager.
of Trustees,
Trustee (since 1987)
Age: 77
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INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is Two World Financial Center,
AND OFFICER New York, NY 10080. 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
Trustee (since 2001) other Oppenheimer funds; President and a director (since July 2001) of
Age: 54 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and of
Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc.
(a subsidiary of the Manager); Chairman and a director (since July 2001) of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and a director (since July 2001)
of OppenheimerFunds Legacy Program (a charitable trust program established by
the Manager); a director of the investment advisory subsidiaries of the Manager:
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 the 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 83 portfolios in the
OppenheimerFunds complex.
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OFFICERS The address of the Officers in the chart below is as follows: for Messrs.
Ferreira, Leavy, Manioudakis and Zack, Two World Financial Center, New York, NY
10080, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each
Officer, except Ferreira, Leavy and Manioudakis, oversees 83 portfolios in the
OppenheimerFunds complex. Each Officer serves for an annual term or until his or
her earlier resignation, death or removal.
Emmanuel Ferreira, Vice President of the Manager (since January 2003). An officer of 2 portfolios
Vice President (since 2003) in the OppenheimerFunds complex. Formerly, Portfolio Manager at Lashire
Age: 36 Investments (July 1999-December 2002), and a Senior Analyst at Mark Asset
Management (July 1997-June 1999).
47 OPPENHEIMER MULTIPLE STRATEGIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
Christopher Leavy, Senior Vice President (since September 2000) of the Manager; an officer of 7
Vice President (since 2003) portfolios in the OppenheimerFunds complex; prior to joining the Manager in
Age: 32 September 2000, he was a portfolio manager of Morgan Stanley Dean Witter
Investment Management (1997 - September 2000).
Angelo Manioudakis, Senior Vice President of the Manager (since April 2002); an officer of 12
Vice President (since 2003) portfolios in the OppenheimerFunds complex; formerly Executive Director and
Age: 36 portfolio manager for Miller, Anderson & Sherrerd, a division of Morgan Stanley
Investment Management (August 1993-April 2002).
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 (since May 2000) and OFI Institutional Asset Management,
Inc. (since November 2000) (offshore fund management subsidiaries of the
Manager); 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.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002)
Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of
Age: 55 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel
(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).
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustees and is available without charge upon request.
48 OPPENHEIMER MULTIPLE STRATEGIES FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
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. Regan as the Audit
Committee's financial expert. Mr. Regan 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 September 30, 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)