UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4108
OPPENHEIMER MAIN STREET FUND/VA
(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.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: DECEMBER 31
-----------
Date of reporting period: JANUARY 1, 2003 - DECEMBER 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. For the 12-month period ended
December 31, 2003, Oppenheimer Main Street Fund/VA produced strong, competitive
returns.
The period started slowly for the Fund when in the beginning of the year, we
made a deliberate decision to increase the Fund's weight in smaller-cap stocks,
as those types of stocks typically outperform larger cap stocks in the beginning
of the year. This seasonal anomaly is called the 'January effect' and is fairly
predictable. However, in the beginning of 2003, there was a high level of
uncertainty related to the situation in Iraq and mixed economic data.
Consequently, the stocks that performed best were those stocks with lower betas
(risk) and higher valuation metrics. The 'January effect' actually began later
in the first quarter when some of the uncertainties began to dissipate, and
market enthusiasm drove buyers to more speculative issues. By that point we had
moved back into the higher quality securities our models had identified.
Our quantitative models, which are an important part of our investment
process, have worked well in most time periods, but at the same time, we
recognize that short-term patterns and movements within the stock market occur
where the Fund may under perform. Rather than making dramatic changes to the
Fund based on short-term movements that may quickly reverse themselves, we
choose to stick with our disciplined investment approach. Our patience paid off,
as the higher quality stocks we purchased in late first quarter outperformed in
late summer as the rally broadened.
Despite the slow start, by the end of the period Oppenheimer Main Street
Fund/VA was able to track its benchmark, the S&P 500 Index, though it slightly
underperformed. We were able to gain on the index by reducing our market
capitalization, as we overweighted both the mid-cap and small-cap stocks that
our models identified. These holdings rallied as the lower quality, smaller-cap
rally began to broaden in the middle of the period. This capitalization
attribution was the greatest contributor to Fund performance during the year.
In terms of economic sectors, we did not take many large sector bets, though
we overweighted the consumer discretionary sector, which proved beneficial for
the Fund as consumer confidence and spending strengthened throughout the year.
On the other hand, we were underweight in technology stocks versus the index, as
well as in healthcare, which proved negative for the Fund. We have also moved to
a less defensive posture by underweighting financials late in the year, and
increasing our utilities and healthcare weightings to match the index. It is
important to note that Oppenheimer Main Street Fund/VA does not hold large
concentrations on individual securities, as the Fund is very well diversified,
holding roughly 500 securities at any given time. However, it is by adjusting
our sector or market capitalization weightings relative to the S&P 500 benchmark
that the Fund can perform differently, and hopefully better than our benchmark.
At the end of the Fund's fiscal year, Oppenheimer Main Street Fund/VA's
portfolio manager, Chuck Albers, retired. Nikos Monoyios, who was Mr. Albers'
co-manager on the Fund, will continue to manage the Fund going forward. Having
worked with Mr. Albers for over twenty years, Mr. Monoyios will continue the
quantitative management style pioneered by Mr. Albers.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each share class of the Fund
held until December 31, 2003. In the case of Non-Service shares, performance is
measured from inception of the class on July 5, 1995. In the case of Service
shares, performance is measured from inception of the class on July 13, 2000.
Performance information does not reflect charges that apply to separate accounts
investing in the Fund. If these charges were taken into account, performance
would be lower. The graphs assume that all dividends and capital gains
distributions were reinvested in additional shares.
The Fund's performance is compared to the performance of the S&P 500 Index, a
broad-based index of equity securities widely regarded as a general measurement
of the performance of the U.S. equity securities market. Index performance
reflects the reinvestment of income but does not consider the effect of
transaction costs. The Fund's performance reflects the effects of the Fund's
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 investments in the index.
3 | OPPENHEIMER MAIN STREET FUND/VA
FUND PERFORMANCE DISCUSSION
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NON-SERVICE SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund[R]/VA (Non-Service)
S&P 500[R] Index
[LINE GRAPH]
Oppenheimer Main Street S&P 500[R]
Fund[R]/VA (Non-Service) Index
07/05/1995 $10,000 $10,000
09/30/1995 10,850 10,794
12/31/1995 12,525 11,443
03/31/1996 13,383 12,058
06/30/1996 14,881 12,598
09/30/1996 15,506 12,988
12/31/1996 16,598 14,069
03/31/1997 16,756 14,447
06/30/1997 18,900 16,967
09/30/1997 21,410 18,238
12/31/1997 21,988 18,761
03/31/1998 24,742 21,376
06/30/1998 24,865 22,086
09/30/1998 19,301 19,894
12/31/1998 23,022 24,127
03/31/1999 23,913 25,328
06/30/1999 26,393 27,110
09/30/1999 25,073 25,422
12/31/1999 28,020 29,202
03/31/2000 28,879 29,870
06/30/2000 28,073 29,077
09/30/2000 28,362 28,795
12/31/2000 25,561 26,544
03/31/2001 23,012 23,399
06/30/2001 24,040 24,767
09/30/2001 21,295 21,133
12/31/2001 22,964 23,391
03/31/2002 23,394 23,456
06/30/2002 21,350 20,315
09/30/2002 17,856 16,808
12/31/2002 18,647 18,224
03/31/2003 18,030 17,650
06/30/2003 20,577 20,365
09/30/2003 21,168 20,904
12/31/2003 23,630 23,448
AVERAGE ANNUAL TOTAL RETURNS OF NON-SERVICE SHARES OF THE FUND AT 12/31/03
1-Year 26.72% 5-Year 0.52% Since Inception 10.66% Inception Date 7/5/95
SERVICE SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Fund[R]/VA (Service)
S&P 500[R] Index
[LINE GRAPH]
Oppenheimer Main Street Fund[R]/VA (Service) S&P 500[R] Index
7/13/2000 $10,000 $10,000
09/30/2000 9,813 9,903
12/31/2000 8,839 9,129
03/31/2001 7,952 8,047
06/30/2001 8,308 8,518
09/30/2001 7,353 7,268
12/31/2001 7,931 8,045
03/31/2002 8,075 8,067
06/30/2002 7,364 6,987
09/30/2002 6,151 5,780
12/31/2002 6,425 6,267
03/31/2003 6,197 6,070
06/30/2003 7,077 7,004
09/30/2003 7,277 7,189
12/31/2003 8,123 8,064
AVERAGE ANNUAL TOTAL RETURNS OF SERVICE SHARES OF THE FUND AT 12/31/03
1-Year 26.44% Since Inception -5.82% Inception Date 7/13/00
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR MORE CURRENT
PERFORMANCE DATA, CALL US AT 1.800.981.2871. THE FUND'S TOTAL RETURNS SHOULD NOT
BE EXPECTED TO BE THE SAME AS THE RETURNS OF OTHER FUNDS, WHETHER OR NOT BOTH
FUNDS HAVE THE SAME PORTFOLIO MANAGERS AND/OR SIMILAR NAMES.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND CHARGES
AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND
OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL
ADVISOR OR CALLING US AT 1.800.981.2871. READ THE PROSPECTUS CAREFULLY BEFORE
INVESTING. GRAPHS ARE NOT DRAWN TO SAME SCALE. AN EXPLANATION OF THE CALCULATION
OF THE PERFORMANCE IS IN THE STATEMENT OF ADDITIONAL INFORMATION.
4 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF INVESTMENTS DECEMBER 31, 2003
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MARKET VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--98.3%
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CONSUMER DISCRETIONARY--16.3%
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AUTO COMPONENTS--0.7%
Aftermarket Technology Corp. 1 6,100 $ 83,692
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American Axle & Manufacturing
Holdings, Inc. 1 60,300 2,437,326
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ArvinMeritor, Inc. 14,600 352,152
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Autoliv, Inc. 3,700 139,305
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Dana Corp. 137,200 2,517,620
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Delphi Corp. 96,100 981,181
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Goodyear Tire & Rubber Co. 1 10,600 83,316
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Johnson Controls, Inc. 19,700 2,287,564
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Lear Corp. 1 11,000 674,630
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Visteon Corp. 35,700 371,637
----------------
9,928,423
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AUTOMOBILES--1.0%
Ford Motor Co. 694,115 11,105,840
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Harley-Davidson, Inc. 42,900 2,039,037
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Thor Industries, Inc. 3,900 219,258
----------------
13,364,135
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HOTELS, RESTAURANTS & LEISURE--1.6%
Alliance Gaming Corp. 1 17,700 436,305
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Applebee's International, Inc. 22,000 863,940
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Aztar Corp. 1 3,800 85,500
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Brinker International, Inc. 1 90,000 2,984,400
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CBRL Group, Inc. 38,700 1,480,662
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CEC Entertainment, Inc. 1 27,200 1,289,008
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Choice Hotels International, Inc. 1 2,800 98,700
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GTech Holdings Corp. 20,200 999,698
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Harrah's Entertainment, Inc. 24,900 1,239,273
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McDonald's Corp. 145,450 3,611,524
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Multimedia Games, Inc. 1 9,500 390,450
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Outback Steakhouse, Inc. 33,700 1,489,877
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P.F. Chang's China Bistro, Inc. 1 8,700 442,656
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Panera Bread Co., Cl. A 1 16,100 636,433
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Park Place Entertainment Corp. 1 10,900 118,047
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Rare Hospitality International, Inc. 1 22,600 552,344
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Ruby Tuesday, Inc. 83,200 2,370,368
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Ryan's Family Steak Houses, Inc. 1 8,750 132,475
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Starbucks Corp. 1 13,200 436,392
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Station Casinos, Inc. 6,900 211,347
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WMS Industries, Inc. 1 2,700 70,740
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Yum! Brands, Inc. 1 78,400 2,696,960
----------------
22,637,099
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--2.9%
Beazer Homes USA, Inc. 28,000 $ 2,734,480
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Cavco Industries, Inc. 1 1,015 24,360
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Centex Corp. 41,900 4,510,535
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D.R. Horton, Inc. 49,300 2,132,718
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Harman International Industries, Inc. 36,600 2,707,668
- --------------------------------------------------------------------------------
Hovnanian Enterprises, Inc., Cl. A 1 27,400 2,385,444
- --------------------------------------------------------------------------------
KB Home 50,000 3,626,000
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Lennar Corp. 34,700 3,331,200
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Lennar Corp., Cl. B 4,580 418,612
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M.D.C. Holdings, Inc. 19,430 1,253,235
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Meritage Corp. 1 5,300 351,443
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Newell Rubbermaid, Inc. 36,400 828,828
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NVR, Inc. 1 2,800 1,304,800
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Pulte Homes, Inc. 31,344 2,934,425
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Ryland Group, Inc. (The) 57,000 5,052,480
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Standard Pacific Corp. 41,300 2,005,115
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Toll Brothers, Inc. 1 52,400 2,083,424
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Whirlpool Corp. 30,800 2,237,620
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Yankee Candle, Inc. (The) 1 17,500 478,275
----------------
40,400,662
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LEISURE EQUIPMENT & PRODUCTS--1.1%
Action Performance Cos., Inc. 37,700 738,920
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Brunswick Corp. 27,300 868,959
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Eastman Kodak Co. 139,100 3,570,697
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Hasbro, Inc. 134,100 2,853,648
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Marvel Enterprises, Inc. 1 95,700 2,785,827
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Mattel, Inc. 197,700 3,809,679
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Polaris Industries, Inc. 1,400 124,012
----------------
14,751,742
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MEDIA--2.8%
Cablevision Systems New York Group,
Cl. A 1 57,100 1,335,569
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Charter Communications, Inc., Cl. A 1 22,100 88,842
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Clear Channel Communications, Inc. 14,200 664,986
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Comcast Corp., Cl. A 1 383,315 12,599,564
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Cox Communications, Inc., Cl. A 1 26,400 909,480
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EchoStar Communications Corp., Cl. A 1 78,700 2,675,800
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McGraw-Hill Cos., Inc. (The) 3,400 237,728
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Metro-Goldwyn-Mayer, Inc. 1 14,800 252,932
- --------------------------------------------------------------------------------
New York Times Co., Cl. A 6,100 291,519
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News Corp. Ltd. (The), Sponsored
ADR, Preference 82 2,481
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Time Warner, Inc. 1 251,700 4,528,083
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TiVo, Inc. 1 22,800 168,720
5 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA Continued
Viacom, Inc., Cl. B 273,330 $ 12,130,385
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Walt Disney Co. (The) 113,500 2,647,955
----------------
38,534,044
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MULTILINE RETAIL--0.7%
Big Lots, Inc. 1 12,000 170,520
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Dollar General Corp. 62,200 1,305,578
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Dollar Tree Stores, Inc. 1 18,300 550,098
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Federated Department Stores, Inc. 66,600 3,138,858
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Neiman Marcus Group, Inc.
(The), Cl. A 1 1,900 101,973
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Sears Roebuck & Co. 97,900 4,453,471
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Shopko Stores, Inc. 1 1,900 28,975
----------------
9,749,473
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SPECIALTY RETAIL--4.8%
Abercrombie & Fitch Co., Cl. A 1 100,100 2,473,471
- --------------------------------------------------------------------------------
Advance Auto Parts, Inc. 1 5,900 480,260
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Aeropostale, Inc. 1 40,100 1,099,542
- --------------------------------------------------------------------------------
AutoNation, Inc. 1 57,500 1,056,275
- --------------------------------------------------------------------------------
AutoZone, Inc. 1 22,200 1,891,662
- --------------------------------------------------------------------------------
Bed Bath & Beyond, Inc. 1 65,200 2,826,420
- --------------------------------------------------------------------------------
Best Buy Co., Inc. 74,300 3,881,432
- --------------------------------------------------------------------------------
Borders Group, Inc. 1 24,000 526,080
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Chico's FAS, Inc. 1 31,300 1,156,535
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Christopher & Banks Corp. 44,200 863,226
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Claire's Stores, Inc. 53,800 1,013,592
- --------------------------------------------------------------------------------
Electronics Boutique Holdings Corp. 1 3,300 75,537
- --------------------------------------------------------------------------------
Foot Locker, Inc. 15,400 361,130
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Gap, Inc. (The) 382,900 8,887,109
- --------------------------------------------------------------------------------
Hollywood Entertainment Corp. 1 25,100 345,125
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Home Depot, Inc. 349,200 12,393,108
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Hot Topic, Inc. 1 48,900 1,440,594
- --------------------------------------------------------------------------------
Lowe's Cos., Inc. 97,000 5,372,830
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Men's Wearhouse, Inc. (The) 1 10,800 270,108
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Movie Gallery, Inc. 1 2,300 42,964
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NetFlix.com, Inc. 1 37,400 2,045,406
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Pacific Sunwear of California, Inc. 79,475 1,678,512
- --------------------------------------------------------------------------------
Pier 1 Imports, Inc. 20,718 452,895
- --------------------------------------------------------------------------------
RadioShack Corp. 90,600 2,779,608
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Regis Corp. 5,000 197,600
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Rent-A-Center, Inc. 1 6,300 188,244
- --------------------------------------------------------------------------------
Ross Stores, Inc. 50,700 1,340,001
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Select Comfort Corp. 1 4,600 113,896
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Sherwin-Williams Co. 8,600 298,764
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Staples, Inc. 1 214,100 5,844,930
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SPECIALTY RETAIL Continued
Talbots, Inc. (The) 42,800 $ 1,317,384
- --------------------------------------------------------------------------------
TJX Cos., Inc. (The) 129,900 2,864,295
- --------------------------------------------------------------------------------
Tractor Supply Co. 1 2,700 105,003
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Zale Corp. 1 12,100 643,720
----------------
66,327,258
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TEXTILES, APPAREL & LUXURY GOODS--0.7%
Coach, Inc. 1 109,200 4,122,300
- --------------------------------------------------------------------------------
Columbia Sportswear Co. 1 10,800 588,600
- --------------------------------------------------------------------------------
Kellwood Co. 3,000 123,000
- --------------------------------------------------------------------------------
Liz Claiborne, Inc. 25,700 911,322
- --------------------------------------------------------------------------------
Nike, Inc., Cl. B 12,500 855,750
- --------------------------------------------------------------------------------
Timberland Co., Cl. A 1 41,500 2,160,905
- --------------------------------------------------------------------------------
Tommy Hilfiger Corp. 1 8,000 118,480
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VF Corp. 6,000 259,440
----------------
9,139,797
- --------------------------------------------------------------------------------
CONSUMER STAPLES--8.2%
- --------------------------------------------------------------------------------
BEVERAGES--2.3%
Anheuser-Busch Cos., Inc. 74,500 3,924,660
- --------------------------------------------------------------------------------
Coca-Cola Co. (The) 215,600 10,941,700
- --------------------------------------------------------------------------------
Pepsi Bottling Group, Inc. (The) 33,300 805,194
- --------------------------------------------------------------------------------
PepsiAmericas, Inc. 2,600 44,512
- --------------------------------------------------------------------------------
PepsiCo, Inc. 330,650 15,414,903
----------------
31,130,969
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.8%
CVS Corp. 6,600 238,392
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Kroger Co. (The) 1 83,900 1,552,989
- --------------------------------------------------------------------------------
Rite Aid Corp. 1 72,300 436,692
- --------------------------------------------------------------------------------
SUPERVALU, Inc. 9,600 274,464
- --------------------------------------------------------------------------------
Sysco Corp. 24,100 897,243
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 393,600 20,880,480
- --------------------------------------------------------------------------------
Winn-Dixie Stores, Inc. 100,800 1,002,960
----------------
25,283,220
- --------------------------------------------------------------------------------
FOOD PRODUCTS--1.3%
American Italian Pasta Co. 1 3,900 163,410
- --------------------------------------------------------------------------------
Campbell Soup Co. 198,500 5,319,800
- --------------------------------------------------------------------------------
Dean Foods Co. 1 34,950 1,148,807
- --------------------------------------------------------------------------------
Del Monte Foods Co. 1 20,000 208,000
- --------------------------------------------------------------------------------
Fresh Del Monte Produce, Inc. 19,600 467,068
- --------------------------------------------------------------------------------
Heinz (H.J.) Co. 16,200 590,166
- --------------------------------------------------------------------------------
Hershey Foods Corp. 24,300 1,870,857
- --------------------------------------------------------------------------------
Kellogg Co. 39,800 1,515,584
- --------------------------------------------------------------------------------
Kraft Foods, Inc., Cl. A 155,200 5,000,544
- --------------------------------------------------------------------------------
Sara Lee Corp. 22,138 480,616
6 | OPPENHEIMER MAIN STREET FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD PRODUCTS Continued
Wm. Wrigley Jr. Co. 27,400 $ 1,540,154
----------------
18,305,006
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.6%
Clorox Co. (The) 19,600 951,776
- --------------------------------------------------------------------------------
Colgate-Palmolive Co. 25,700 1,286,285
- --------------------------------------------------------------------------------
Energizer Holdings, Inc. 1 45,100 1,693,956
- --------------------------------------------------------------------------------
Procter & Gamble Corp. (The) 180,000 17,978,400
----------------
21,910,417
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.3%
Avon Products, Inc. 38,900 2,625,361
- --------------------------------------------------------------------------------
Gillette Co. 40,900 1,502,257
- --------------------------------------------------------------------------------
USANA Health Sciences, Inc. 1 10,500 321,300
----------------
4,448,918
- --------------------------------------------------------------------------------
TOBACCO--0.9%
Altria Group, Inc. 185,300 10,084,026
- --------------------------------------------------------------------------------
R.J. Reynolds Tobacco Holdings, Inc. 43,700 2,541,155
----------------
12,625,181
- --------------------------------------------------------------------------------
ENERGY--7.6%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.0%
Key Energy Services, Inc. 1 9,200 94,852
- --------------------------------------------------------------------------------
Rowan Cos., Inc. 1 10,200 236,334
----------------
331,186
- --------------------------------------------------------------------------------
OIL & GAS--7.6%
Amerada Hess Corp. 800 42,536
- --------------------------------------------------------------------------------
Apache Corp. 54,495 4,419,545
- --------------------------------------------------------------------------------
Brown (Tom), Inc. 1 126,600 4,082,850
- --------------------------------------------------------------------------------
Burlington Resources, Inc. 115,200 6,379,776
- --------------------------------------------------------------------------------
Canadian Natural Resources Ltd. 85,000 4,299,826
- --------------------------------------------------------------------------------
Chesapeake Energy Corp. 256,200 3,479,196
- --------------------------------------------------------------------------------
ChevronTexaco Corp. 87,650 7,572,084
- --------------------------------------------------------------------------------
Cimarex Energy Co. 1 3,039 81,111
- --------------------------------------------------------------------------------
Compton Petroleum Corp. 1 194,500 903,076
- --------------------------------------------------------------------------------
ConocoPhillips 100,721 6,604,276
- --------------------------------------------------------------------------------
Cross Timbers Royalty Trust 692 19,736
- --------------------------------------------------------------------------------
Devon Energy Corp. 12,800 732,928
- --------------------------------------------------------------------------------
EOG Resources, Inc. 72,500 3,347,325
- --------------------------------------------------------------------------------
Esprit Exploration Ltd. 1 430,000 925,053
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 720,116 29,524,756
- --------------------------------------------------------------------------------
Frontier Oil Corp. 142,200 2,448,684
- --------------------------------------------------------------------------------
Marathon Oil Corp. 18,500 612,165
- --------------------------------------------------------------------------------
Murphy Oil Corp. 22,600 1,476,006
- --------------------------------------------------------------------------------
Newfield Exploration Co. 1 50,900 2,267,086
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
OIL & GAS Continued
Noble Energy, Inc. 47,400 $ 2,105,982
- --------------------------------------------------------------------------------
Occidental Petroleum Corp. 132,700 5,605,248
- --------------------------------------------------------------------------------
Paramount Energy Trust 38,796 350,658
- --------------------------------------------------------------------------------
Paramount Resources Ltd. 152,700 1,234,835
- --------------------------------------------------------------------------------
Pogo Producing Co. 63,300 3,057,390
- --------------------------------------------------------------------------------
Sunoco, Inc. 50,000 2,557,500
- --------------------------------------------------------------------------------
Talisman Energy, Inc. 49,900 2,838,962
- --------------------------------------------------------------------------------
Tesoro Petroleum Corp. 1 12,400 180,668
- --------------------------------------------------------------------------------
Unocal Corp. 40,600 1,495,298
- --------------------------------------------------------------------------------
Valero Energy Corp. 53,600 2,483,824
- --------------------------------------------------------------------------------
Western Gas Resources, Inc. 9,700 458,325
- --------------------------------------------------------------------------------
XTO Energy, Inc. 113,533 3,212,984
----------------
104,799,689
- --------------------------------------------------------------------------------
FINANCIALS--22.9%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--0.6%
Mellon Financial Corp. 235,600 7,565,116
- --------------------------------------------------------------------------------
Northern Trust Corp. 14,400 668,448
----------------
8,233,564
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--7.5%
AmSouth Bancorp 45,300 1,109,850
- --------------------------------------------------------------------------------
Astoria Financial Corp. 13,200 491,040
- --------------------------------------------------------------------------------
Bank of America Corp. 226,600 18,225,438
- --------------------------------------------------------------------------------
Bank One Corp. 112,700 5,137,993
- --------------------------------------------------------------------------------
Banknorth Group, Inc. 40,100 1,304,453
- --------------------------------------------------------------------------------
Charter One Financial, Inc. 105,900 3,658,845
- --------------------------------------------------------------------------------
City National Corp. 1,800 111,816
- --------------------------------------------------------------------------------
Compass Bancshares, Inc. 8,300 326,273
- --------------------------------------------------------------------------------
First Midwest Bancorp, Inc. 400 12,964
- --------------------------------------------------------------------------------
First Tennessee National Corp. 25,500 1,124,550
- --------------------------------------------------------------------------------
Flagstar Bancorp, Inc. 25,200 539,784
- --------------------------------------------------------------------------------
FleetBoston Financial Corp. 189,000 8,249,850
- --------------------------------------------------------------------------------
Golden West Financial Corp. 76,900 7,935,311
- --------------------------------------------------------------------------------
Greenpoint Financial Corp. 48,300 1,705,956
- --------------------------------------------------------------------------------
Hudson United Bancorp 3,100 114,545
- --------------------------------------------------------------------------------
Huntington Bancshares, Inc. 24,400 549,000
- --------------------------------------------------------------------------------
Independence Community
Bank Corp. 6,400 230,208
- --------------------------------------------------------------------------------
Indymac Mortgage Holdings, Inc. 7,600 226,404
- --------------------------------------------------------------------------------
KeyCorp 77,400 2,269,368
- --------------------------------------------------------------------------------
M&T Bank Corp. 6,800 668,440
- --------------------------------------------------------------------------------
National City Corp. 160,300 5,440,582
- --------------------------------------------------------------------------------
North Fork Bancorp, Inc. 7,400 299,478
- --------------------------------------------------------------------------------
PNC Financial Services Group 32,500 1,778,725
- --------------------------------------------------------------------------------
Prosperity Bancshares, Inc. 72,400 1,630,448
7 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
Regions Financial Corp. 24,900 $ 926,280
- --------------------------------------------------------------------------------
Sky Financial Group, Inc. 1,000 25,940
- --------------------------------------------------------------------------------
SunTrust Banks, Inc. 31,700 2,266,550
- --------------------------------------------------------------------------------
U.S. Bancorp 261,670 7,792,533
- --------------------------------------------------------------------------------
UnionBanCal Corp. 31,800 1,829,772
- --------------------------------------------------------------------------------
W. Holding Co., Inc. 17,634 328,169
- --------------------------------------------------------------------------------
Wachovia Corp. 163,700 7,626,783
- --------------------------------------------------------------------------------
Washington Mutual, Inc. 136,500 5,476,380
- --------------------------------------------------------------------------------
Webster Financial Corp. 3,600 165,096
- --------------------------------------------------------------------------------
Wells Fargo & Co. 232,100 13,668,369
- --------------------------------------------------------------------------------
Zions Bancorp 5,200 318,916
----------------
103,566,109
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--7.5%
Affiliated Managers Group, Inc. 1 12,100 842,039
- --------------------------------------------------------------------------------
American Express Co. 106,000 5,112,380
- --------------------------------------------------------------------------------
Bear Stearns Cos., Inc. (The) 48,600 3,885,570
- --------------------------------------------------------------------------------
Capital One Financial Corp. 43,600 2,672,244
- --------------------------------------------------------------------------------
Chicago Mercantile Exchange (The) 8,200 593,352
- --------------------------------------------------------------------------------
CIT Group, Inc. 37,400 1,344,530
- --------------------------------------------------------------------------------
Citigroup, Inc. 594,088 28,837,032
- --------------------------------------------------------------------------------
Instinet Group, Inc. 1 3,500 18,025
- --------------------------------------------------------------------------------
iShares Russell 2000 Index Fund 150,000 16,620,000
- --------------------------------------------------------------------------------
J.P. Morgan Chase & Co. 283,200 10,401,936
- --------------------------------------------------------------------------------
Knight Trading Group, Inc. 1 27,300 399,672
- --------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc. 1,600 123,552
- --------------------------------------------------------------------------------
MBNA Corp. 292,800 7,276,080
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 159,300 9,342,945
- --------------------------------------------------------------------------------
Moody's Corp. 3,200 193,760
- --------------------------------------------------------------------------------
Morgan Stanley 174,700 10,109,889
- --------------------------------------------------------------------------------
Principal Financial Group, Inc. (The) 108,700 3,594,709
- --------------------------------------------------------------------------------
Schwab (Charles) Corp. 127,100 1,504,864
- --------------------------------------------------------------------------------
SLM Corp. 30,700 1,156,776
- --------------------------------------------------------------------------------
WFS Financial, Inc. 1 400 16,984
----------------
104,046,339
- --------------------------------------------------------------------------------
INSURANCE--5.4%
AFLAC, Inc. 81,400 2,945,052
- --------------------------------------------------------------------------------
Allmerica Financial Corp. 1 5,600 172,312
- --------------------------------------------------------------------------------
Allstate Corp. 241,200 10,376,424
- --------------------------------------------------------------------------------
AMBAC Financial Group, Inc. 18,600 1,290,654
- --------------------------------------------------------------------------------
American International Group, Inc. 202,640 13,430,979
- --------------------------------------------------------------------------------
Aon Corp. 80,400 1,924,776
- --------------------------------------------------------------------------------
Cincinnati Financial Corp. 4,000 167,520
- --------------------------------------------------------------------------------
Everest Re Group Ltd. 2,500 211,500
- --------------------------------------------------------------------------------
Fidelity National Financial, Inc. 140,872 5,463,016
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INSURANCE Continued
First American Corp. (The) 3,800 $ 113,126
- --------------------------------------------------------------------------------
Hartford Financial Services Group,
Inc. (The) 19,000 1,121,570
- --------------------------------------------------------------------------------
John Hancock Financial Services, Inc. 133,200 4,995,000
- --------------------------------------------------------------------------------
LandAmerica Financial Group, Inc. 8,000 418,080
- --------------------------------------------------------------------------------
Lincoln National Corp. 57,300 2,313,201
- --------------------------------------------------------------------------------
Loews Corp. 14,700 726,915
- --------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc. 107,600 5,152,964
- --------------------------------------------------------------------------------
MBIA, Inc. 6,500 384,995
- --------------------------------------------------------------------------------
Mercury General Corp. 1,000 46,550
- --------------------------------------------------------------------------------
MetLife, Inc. 121,600 4,094,272
- --------------------------------------------------------------------------------
Old Republic International Corp. 33,450 848,292
- --------------------------------------------------------------------------------
Progressive Corp. 91,900 7,681,921
- --------------------------------------------------------------------------------
Prudential Financial, Inc. 114,800 4,795,196
- --------------------------------------------------------------------------------
Reinsurance Group of America, Inc. 28,100 1,086,065
- --------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 46,300 2,271,015
- --------------------------------------------------------------------------------
Safeco Corp. 11,600 451,588
- --------------------------------------------------------------------------------
St. Paul Cos., Inc. 2,900 114,985
- --------------------------------------------------------------------------------
StanCorp Financial Group, Inc. 200 12,576
- --------------------------------------------------------------------------------
Travelers Property Casualty Corp.,
Cl. B 96,241 1,633,210
----------------
74,243,754
- --------------------------------------------------------------------------------
REAL ESTATE--0.0%
Catellus Development Corp. 9,477 228,585
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--1.9%
Countrywide Financial Corp. 59,733 4,530,748
- --------------------------------------------------------------------------------
Doral Financial Corp. 51,225 1,653,543
- --------------------------------------------------------------------------------
Fannie Mae 147,700 11,086,362
- --------------------------------------------------------------------------------
Freddie Mac 53,900 3,143,448
- --------------------------------------------------------------------------------
Fremont General Corp. 76,000 1,285,160
- --------------------------------------------------------------------------------
MGIC Investment Corp. 43,700 2,488,278
- --------------------------------------------------------------------------------
New Century Financial Corp. 38,300 1,519,361
- --------------------------------------------------------------------------------
Radian Group, Inc. 10,700 521,625
----------------
26,228,525
- --------------------------------------------------------------------------------
HEALTH CARE--12.6%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--1.8%
Alkermes, Inc. 1 33,600 453,600
- --------------------------------------------------------------------------------
Amgen, Inc. 1 190,500 11,772,900
- --------------------------------------------------------------------------------
Gen-Probe, Inc. 1 22,700 827,869
- --------------------------------------------------------------------------------
Genentech, Inc. 1 67,600 6,325,332
- --------------------------------------------------------------------------------
Geron Corp. 1 13,700 136,589
- --------------------------------------------------------------------------------
Idexx Laboratories, Inc. 1 1,900 87,932
- --------------------------------------------------------------------------------
Invitrogen Corp. 1 27,900 1,953,000
- --------------------------------------------------------------------------------
Wyeth 62,300 2,644,635
----------------
24,201,857
8 | OPPENHEIMER MAIN STREET FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.2%
Bausch & Lomb, Inc. 49,400 $ 2,563,860
- --------------------------------------------------------------------------------
Becton, Dickinson & Co. 81,900 3,369,366
- --------------------------------------------------------------------------------
Bio-Rad Laboratories, Inc., Cl. A 1 15,000 865,050
- --------------------------------------------------------------------------------
Biosite, Inc. 1 5,400 156,330
- --------------------------------------------------------------------------------
Boston Scientific Corp. 1 117,600 4,322,976
- --------------------------------------------------------------------------------
Cooper Cos., Inc. (The) 19,600 923,748
- --------------------------------------------------------------------------------
Cytyc Corp. 1 11,200 154,112
- --------------------------------------------------------------------------------
Hillenbrand Industries, Inc. 2,000 124,120
- --------------------------------------------------------------------------------
Inamed Corp. 1 7,300 350,838
- --------------------------------------------------------------------------------
Medtronic, Inc. 197,900 9,619,919
- --------------------------------------------------------------------------------
PolyMedica Corp. 3,000 78,930
- --------------------------------------------------------------------------------
St. Jude Medical, Inc. 1 9,800 601,230
- --------------------------------------------------------------------------------
Stryker Corp. 64,000 5,440,640
- --------------------------------------------------------------------------------
VISX, Inc. 1 63,400 1,467,710
- --------------------------------------------------------------------------------
Zimmer Holdings, Inc. 1 11,000 774,400
----------------
30,813,229
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--3.0%
Aetna, Inc. 59,400 4,014,252
- --------------------------------------------------------------------------------
AMERIGROUP Corp. 1 16,800 716,520
- --------------------------------------------------------------------------------
Andrx Corp. 1 33,700 810,148
- --------------------------------------------------------------------------------
Apria Healthcare Group, Inc. 1 63,600 1,810,692
- --------------------------------------------------------------------------------
Covance, Inc. 1 39,000 1,045,200
- --------------------------------------------------------------------------------
Coventry Health Care, Inc. 1 47,700 3,076,173
- --------------------------------------------------------------------------------
DaVita, Inc. 1 37,300 1,454,700
- --------------------------------------------------------------------------------
eResearch Technology, Inc. 1 4,300 109,306
- --------------------------------------------------------------------------------
First Health Group Corp. 1 25,800 502,068
- --------------------------------------------------------------------------------
Health Management Associates,
Inc., Cl. A 10,600 254,400
- --------------------------------------------------------------------------------
Health Net, Inc. 1 71,600 2,341,320
- --------------------------------------------------------------------------------
Humana, Inc. 1 58,800 1,343,580
- --------------------------------------------------------------------------------
IMS Health, Inc. 48,700 1,210,682
- --------------------------------------------------------------------------------
McKesson Corp. 9,400 302,304
- --------------------------------------------------------------------------------
Medco Health Solutions, Inc. 1 106,381 3,615,890
- --------------------------------------------------------------------------------
Mid Atlantic Medical Services, Inc. 1 45,000 2,916,000
- --------------------------------------------------------------------------------
Oxford Health Plans, Inc. 1 64,700 2,814,450
- --------------------------------------------------------------------------------
Pediatrix Medical Group, Inc. 1 40,300 2,220,127
- --------------------------------------------------------------------------------
Per-Se Technologies, Inc. 1 6,500 99,190
- --------------------------------------------------------------------------------
Pharmaceutical Product
Development, Inc. 1 2,800 75,516
- --------------------------------------------------------------------------------
Renal Care Group, Inc. 1 4,300 177,160
- --------------------------------------------------------------------------------
Select Medical Corp. 78,000 1,269,840
- --------------------------------------------------------------------------------
Sunrise Senior Living, Inc. 1 4,000 154,960
- --------------------------------------------------------------------------------
Universal Health Services, Inc., Cl. B 4,100 220,252
- --------------------------------------------------------------------------------
US Oncology, Inc. 1 61,600 662,816
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
WellPoint Health Networks, Inc. 1 77,100 $ 7,477,929
----------------
40,695,475
- --------------------------------------------------------------------------------
PHARMACEUTICALS--5.6%
Abbott Laboratories 149,200 6,952,720
- --------------------------------------------------------------------------------
Alpharma, Inc., Cl. A 800 16,080
- --------------------------------------------------------------------------------
American Pharmaceutical
Partners, Inc. 1 52,250 1,755,600
- --------------------------------------------------------------------------------
Bradley Pharmaceuticals, Inc. 1 38,400 976,512
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 254,700 7,284,420
- --------------------------------------------------------------------------------
Eli Lilly & Co. 102,400 7,201,792
- --------------------------------------------------------------------------------
Endo Pharmaceuticals Holdings, Inc. 1 7,000 134,820
- --------------------------------------------------------------------------------
Forest Laboratories, Inc. 1 2,700 166,860
- --------------------------------------------------------------------------------
Hi-Tech Pharmacal Co., Inc. 1 500 11,750
- --------------------------------------------------------------------------------
Johnson & Johnson 249,006 12,863,650
- --------------------------------------------------------------------------------
Kos Pharmaceuticals, Inc. 1 47,400 2,040,096
- --------------------------------------------------------------------------------
Merck & Co., Inc. 278,700 12,875,940
- --------------------------------------------------------------------------------
Pfizer, Inc. 707,600 24,999,508
- --------------------------------------------------------------------------------
Valeant Pharmaceuticals
International, Inc. 21,500 540,725
----------------
77,820,473
- --------------------------------------------------------------------------------
INDUSTRIALS--6.8%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.1%
General Dynamics Corp. 44,400 4,013,316
- --------------------------------------------------------------------------------
Goodrich Corp. 33,400 991,646
- --------------------------------------------------------------------------------
Honeywell International, Inc. 56,100 1,875,423
- --------------------------------------------------------------------------------
Precision Castparts Corp. 15,700 712,937
- --------------------------------------------------------------------------------
United Defense Industries, Inc. 1 24,200 771,496
- --------------------------------------------------------------------------------
United Technologies Corp. 70,700 6,700,239
----------------
15,065,057
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.4%
FedEx Corp. 27,500 1,856,250
- --------------------------------------------------------------------------------
United Parcel Service, Inc., Cl. B 51,600 3,846,780
----------------
5,703,030
- --------------------------------------------------------------------------------
AIRLINES--0.1%
America West Holdings Corp., Cl. B 1 43,000 533,200
- --------------------------------------------------------------------------------
Continental Airlines, Inc., Cl. B 1 51,500 837,905
- --------------------------------------------------------------------------------
ExpressJet Holdings, Inc. 1 9,400 141,000
- --------------------------------------------------------------------------------
Mesa Air Group, Inc. 1 6,300 78,876
- --------------------------------------------------------------------------------
Northwest Airlines Corp., Cl. A 1 33,000 416,460
----------------
2,007,441
- --------------------------------------------------------------------------------
BUILDING PRODUCTS--0.0%
USG Corp. 1 8,700 144,159
9 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.8%
Arbitron, Inc. 1 1,600 $ 66,752
- --------------------------------------------------------------------------------
Corinthian Colleges, Inc. 1 9,200 511,152
- --------------------------------------------------------------------------------
Deluxe Corp. 15,500 640,615
- --------------------------------------------------------------------------------
H&R Block, Inc. 122,800 6,799,436
- --------------------------------------------------------------------------------
ITT Educational Services, Inc. 1 33,700 1,582,889
- --------------------------------------------------------------------------------
Republic Services, Inc. 29,300 750,959
- --------------------------------------------------------------------------------
Right Management
Consultants, Inc. 1 1,775 33,122
- --------------------------------------------------------------------------------
Robert Half International, Inc. 1 10,700 249,738
- --------------------------------------------------------------------------------
United Rentals, Inc. 1 24,200 466,092
- --------------------------------------------------------------------------------
Valassis Communications, Inc. 1 7,000 205,450
----------------
11,306,205
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.1%
Emerson Electric Co. 14,300 925,925
- --------------------------------------------------------------------------------
Hubbell, Inc., Cl. B 300 13,230
- --------------------------------------------------------------------------------
Molex, Inc., Cl. A 20,750 609,220
- --------------------------------------------------------------------------------
Thomas & Betts Corp. 13,700 313,593
----------------
1,861,968
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--3.0%
3M Co. 73,800 6,275,214
- --------------------------------------------------------------------------------
Carlisle Cos., Inc. 1,500 91,290
- --------------------------------------------------------------------------------
General Electric Co. 1,120,000 34,697,600
----------------
41,064,104
- --------------------------------------------------------------------------------
MACHINERY--0.8%
Actuant Corp., Cl. A 1 2,500 90,500
- --------------------------------------------------------------------------------
Briggs & Stratton Corp. 16,800 1,132,320
- --------------------------------------------------------------------------------
Cummins, Inc. 12,100 592,174
- --------------------------------------------------------------------------------
Deere & Co. 7,000 455,350
- --------------------------------------------------------------------------------
Eaton Corp. 8,100 874,638
- --------------------------------------------------------------------------------
Ingersoll-Rand Co., Cl. A 19,700 1,337,236
- --------------------------------------------------------------------------------
Oshkosh Truck Corp. 8,200 418,446
- --------------------------------------------------------------------------------
Paccar, Inc. 29,100 2,476,992
- --------------------------------------------------------------------------------
Pall Corp. 79,600 2,135,668
- --------------------------------------------------------------------------------
SPX Corp. 1 16,400 964,484
- --------------------------------------------------------------------------------
Trinity Industries, Inc. 3,300 101,772
- --------------------------------------------------------------------------------
Wabash National Corp. 1 13,800 404,340
----------------
10,983,920
- --------------------------------------------------------------------------------
ROAD & RAIL--0.5%
Burlington Northern Santa Fe Corp. 42,500 1,374,875
- --------------------------------------------------------------------------------
CSX Corp. 43,800 1,574,172
- --------------------------------------------------------------------------------
Hunt (J.B.) Transport Services, Inc. 1 65,500 1,769,155
- --------------------------------------------------------------------------------
Norfolk Southern Corp. 2,900 68,585
- --------------------------------------------------------------------------------
Ryder Systems, Inc. 42,300 1,444,545
----------------
6,231,332
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--16.6%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.5%
3Com Corp. 1 79,100 $ 646,247
- --------------------------------------------------------------------------------
ADTRAN, Inc. 55,100 1,708,100
- --------------------------------------------------------------------------------
Avocent Corp. 1 1,000 36,520
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 1 874,100 21,231,889
- --------------------------------------------------------------------------------
Corning, Inc. 1 345,100 3,599,393
- --------------------------------------------------------------------------------
Ditech Communications Corp. 1 5,100 97,410
- --------------------------------------------------------------------------------
Emulex Corp. 1 11,800 314,824
- --------------------------------------------------------------------------------
F5 Networks, Inc. 1 10,400 261,040
- --------------------------------------------------------------------------------
Foundry Networks, Inc. 1 18,900 517,104
- --------------------------------------------------------------------------------
Juniper Networks, Inc. 1 65,900 1,231,012
- --------------------------------------------------------------------------------
McDATA Corp., Cl. A 1 72,300 689,019
- --------------------------------------------------------------------------------
Powerwave Technologies, Inc. 1 33,800 258,570
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 32,600 1,758,118
- --------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 72,100 1,968,330
- --------------------------------------------------------------------------------
Zhone Technologies, Inc. 1 11,200 55,328
----------------
34,372,904
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--3.9%
Avid Technology, Inc. 1 14,800 710,400
- --------------------------------------------------------------------------------
Dell, Inc. 1 406,700 13,811,532
- --------------------------------------------------------------------------------
EMC Corp. 1 458,600 5,925,112
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 121,100 2,781,667
- --------------------------------------------------------------------------------
Imation Corp. 5,300 186,295
- --------------------------------------------------------------------------------
International Business Machines Corp. 133,600 12,382,048
- --------------------------------------------------------------------------------
Lexmark International, Inc., Cl. A 1 66,400 5,221,696
- --------------------------------------------------------------------------------
Maxtor Corp. 1 295,800 3,283,380
- --------------------------------------------------------------------------------
Network Appliance, Inc. 1 20,200 414,706
- --------------------------------------------------------------------------------
SanDisk Corp. 1 11,300 690,882
- --------------------------------------------------------------------------------
Seagate Technology International, Inc.
(Escrow Shares) 1,2,3 31,000 --
- --------------------------------------------------------------------------------
Storage Technology Corp. 1 86,200 2,219,650
- --------------------------------------------------------------------------------
Sun Microsystems, Inc. 1 820,100 3,682,249
- --------------------------------------------------------------------------------
Western Digital Corp. 1 244,800 2,886,192
----------------
54,195,809
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.5%
Agilent Technologies, Inc. 1 38,900 1,137,436
- --------------------------------------------------------------------------------
Avnet, Inc. 1 17,300 374,718
- --------------------------------------------------------------------------------
Benchmark Electronics, Inc. 1 20,000 696,200
- --------------------------------------------------------------------------------
Brightpoint, Inc. 1 19,800 341,550
- --------------------------------------------------------------------------------
FARO Technologies, Inc. 1 16,200 404,676
- --------------------------------------------------------------------------------
Kemet Corp. 1 18,200 249,158
- --------------------------------------------------------------------------------
Molex, Inc. 6,500 226,785
- --------------------------------------------------------------------------------
Solectron Corp. 1 159,400 942,054
- --------------------------------------------------------------------------------
Superconductor Technologies, Inc. 1 22,400 124,992
10 | OPPENHEIMER MAIN STREET FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS Continued
Symbol Technologies, Inc. 30,500 $ 515,145
- --------------------------------------------------------------------------------
UNOVA, Inc. 1 30,700 704,565
- --------------------------------------------------------------------------------
Veeco Instruments, Inc. 1 6,200 174,840
- --------------------------------------------------------------------------------
Waters Corp. 1 13,600 450,976
----------------
6,343,095
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.3%
Akamai Technologies, Inc. 1 131,000 1,408,250
- --------------------------------------------------------------------------------
Ask Jeeves, Inc. 1 17,000 308,040
- --------------------------------------------------------------------------------
Digital River, Inc. 1 32,300 713,830
- --------------------------------------------------------------------------------
EarthLink, Inc. 1 19,000 190,000
- --------------------------------------------------------------------------------
Internap Network Services Corp. 1 79,100 193,795
- --------------------------------------------------------------------------------
j2 Global Communications, Inc. 1 4,800 118,896
- --------------------------------------------------------------------------------
United Online, Inc. 1 69,600 1,168,584
- --------------------------------------------------------------------------------
WebEx Communications, Inc. 1 4,300 86,430
----------------
4,187,825
- --------------------------------------------------------------------------------
IT SERVICES--0.4%
Anteon International Corp. 1 2,400 86,520
- --------------------------------------------------------------------------------
CheckFree Corp. 1 16,500 456,225
- --------------------------------------------------------------------------------
Cognizant Technology Solutions
Corp. 1 46,400 2,117,696
- --------------------------------------------------------------------------------
Concord EFS, Inc. 1 31,500 467,460
- --------------------------------------------------------------------------------
Convergys Corp. 1 102,400 1,787,904
- --------------------------------------------------------------------------------
Evolving Systems, Inc. 1 8,600 114,380
- --------------------------------------------------------------------------------
Global Payments, Inc. 4,000 188,480
----------------
5,218,665
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.4%
Advanced Energy Industries, Inc. 1 2,900 75,545
- --------------------------------------------------------------------------------
Altera Corp. 1 52,000 1,180,400
- --------------------------------------------------------------------------------
Amkor Technology, Inc. 1 31,400 571,794
- --------------------------------------------------------------------------------
Analog Devices, Inc. 30,000 1,369,500
- --------------------------------------------------------------------------------
Applied Materials, Inc. 1 184,100 4,133,045
- --------------------------------------------------------------------------------
Applied Micro Circuits Corp. 1 88,000 526,240
- --------------------------------------------------------------------------------
Asyst Technologies, Inc. 1 23,900 414,665
- --------------------------------------------------------------------------------
Atmel Corp. 1 174,800 1,050,548
- --------------------------------------------------------------------------------
Axcelis Technologies, Inc. 1 8,100 82,782
- --------------------------------------------------------------------------------
Broadcom Corp., Cl. A 1 100,700 3,432,863
- --------------------------------------------------------------------------------
Brooks Automation, Inc. 1 3,800 91,846
- --------------------------------------------------------------------------------
Credence Systems Corp. 1 31,900 419,804
- --------------------------------------------------------------------------------
Cypress Semiconductor Corp. 1 115,900 2,475,624
- --------------------------------------------------------------------------------
Integrated Device Technology, Inc. 1 52,800 906,576
- --------------------------------------------------------------------------------
Intel Corp. 755,000 24,311,000
- --------------------------------------------------------------------------------
KLA-Tencor Corp. 1 24,300 1,425,681
- --------------------------------------------------------------------------------
Kulicke & Soffa Industries, Inc. 1 49,400 710,372
- --------------------------------------------------------------------------------
Lam Research Corp. 1 10,600 342,380
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued
National Semiconductor Corp. 1 115,800 $ 4,563,678
- --------------------------------------------------------------------------------
NVE Corp. 1 5,800 297,540
- --------------------------------------------------------------------------------
NVIDIA Corp. 1 102,000 2,371,500
- --------------------------------------------------------------------------------
Photronics, Inc. 1 9,000 179,280
- --------------------------------------------------------------------------------
Silicon Storage Technology, Inc. 1 31,100 342,100
- --------------------------------------------------------------------------------
Teradyne, Inc. 1 80,300 2,043,635
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 257,600 7,568,288
- --------------------------------------------------------------------------------
TriQuint Semiconductor, Inc. 1 48,400 342,188
----------------
61,228,874
- --------------------------------------------------------------------------------
SOFTWARE--4.6%
Adobe Systems, Inc. 5,000 196,500
- --------------------------------------------------------------------------------
Amdocs Ltd. 1 117,700 2,645,896
- --------------------------------------------------------------------------------
Ascential Software Corp. 1 13,000 337,090
- --------------------------------------------------------------------------------
Citrix Systems, Inc. 1 76,800 1,628,928
- --------------------------------------------------------------------------------
Computer Associates
International, Inc. 24,800 678,032
- --------------------------------------------------------------------------------
Compuware Corp. 1 13,400 80,936
- --------------------------------------------------------------------------------
Electronic Arts, Inc. 1 145,600 6,956,768
- --------------------------------------------------------------------------------
FactSet Research Systems, Inc. 6,900 263,649
- --------------------------------------------------------------------------------
Henry (Jack) & Associates, Inc. 1,300 26,754
- --------------------------------------------------------------------------------
Hyperion Solutions Corp. 1 400 12,056
- --------------------------------------------------------------------------------
Macromedia, Inc. 1 15,600 278,304
- --------------------------------------------------------------------------------
Microsoft Corp. 1,138,000 31,340,520
- --------------------------------------------------------------------------------
Novell, Inc. 1 92,300 970,996
- --------------------------------------------------------------------------------
Oracle Corp. 1 462,800 6,108,960
- --------------------------------------------------------------------------------
Red Hat, Inc. 1 69,600 1,306,392
- --------------------------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 3,100 90,055
- --------------------------------------------------------------------------------
Sybase, Inc. 1 38,700 796,446
- --------------------------------------------------------------------------------
Symantec Corp. 1 95,400 3,305,610
- --------------------------------------------------------------------------------
Synopsys, Inc. 1 55,100 1,860,176
- --------------------------------------------------------------------------------
Take-Two Interactive Software, Inc. 1 80,600 2,322,086
- --------------------------------------------------------------------------------
Veritas Software Corp. 1 66,400 2,467,424
----------------
63,673,578
- --------------------------------------------------------------------------------
MATERIALS--1.9%
- --------------------------------------------------------------------------------
CHEMICALS--0.8%
Cytec Industries, Inc. 1 4,700 180,433
- --------------------------------------------------------------------------------
Dow Chemical Co. 26,700 1,109,919
- --------------------------------------------------------------------------------
Du Pont (E.I.) de Nemours & Co. 96,100 4,410,029
- --------------------------------------------------------------------------------
Engelhard Corp. 11,300 338,435
- --------------------------------------------------------------------------------
Hercules, Inc. 1 96,100 1,172,420
- --------------------------------------------------------------------------------
Monsanto Co. 101,300 2,915,414
- --------------------------------------------------------------------------------
OM Group, Inc. 1 18,300 479,277
----------------
10,605,927
11 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.0%
Florida Rock Industries, Inc. 1,300 $ 71,305
- --------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.1%
Sealed Air Corp. 1 33,900 1,835,346
- --------------------------------------------------------------------------------
METALS & MINING--0.7%
Alcan, Inc. 39,500 1,854,525
- --------------------------------------------------------------------------------
Alcoa, Inc. 145,200 5,517,600
- --------------------------------------------------------------------------------
CONSOL Energy, Inc. 6,300 163,170
- --------------------------------------------------------------------------------
GrafTech International Ltd. 1 24,400 329,400
- --------------------------------------------------------------------------------
Peabody Energy Corp. 29,600 1,234,616
- --------------------------------------------------------------------------------
Schnitzer Steel Industries, Inc. 9,800 592,900
----------------
9,692,211
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.3%
Georgia-Pacific Corp. 83,900 2,573,213
- --------------------------------------------------------------------------------
Louisiana-Pacific Corp. 1 115,300 2,061,564
----------------
4,634,777
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.4%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.2%
BellSouth Corp. 172,000 4,867,600
- --------------------------------------------------------------------------------
Citizens Communications Co. 1 115,400 1,433,268
- --------------------------------------------------------------------------------
Hughes Electronics Corp. 1 740 12,247
- --------------------------------------------------------------------------------
NTL, Inc. 1 16,300 1,136,925
- --------------------------------------------------------------------------------
SBC Communications, Inc. 668,800 17,435,616
- --------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 64,400 1,057,448
- --------------------------------------------------------------------------------
Verizon Communications, Inc. 519,456 18,222,516
----------------
44,165,620
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.2%
AT&T Wireless Services, Inc. 1 537,000 4,290,630
- --------------------------------------------------------------------------------
Nextel Communications, Inc., Cl. A 1 421,600 11,830,096
- --------------------------------------------------------------------------------
Wireless Facilities, Inc. 1 5,400 80,244
----------------
16,200,970
- --------------------------------------------------------------------------------
UTILITIES--1.0%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.7%
Allegheny Energy, Inc. 1 9,100 116,116
- --------------------------------------------------------------------------------
CenterPoint Energy, Inc. 19,500 188,955
- --------------------------------------------------------------------------------
Constellation Energy Group, Inc. 53,100 2,079,396
- --------------------------------------------------------------------------------
Edison International 1 30,900 677,637
- --------------------------------------------------------------------------------
Exelon Corp. 68,224 4,527,345
- --------------------------------------------------------------------------------
FirstEnergy Corp. 7,200 253,440
- --------------------------------------------------------------------------------
Progress Energy, Inc., Contingent
- --------------------------------------------------------------------------------
Value Obligation 1,2 32,000 7,360
- --------------------------------------------------------------------------------
Puget Energy, Inc. 2,400 57,048
- --------------------------------------------------------------------------------
TXU Corp. 9,000 213,480
- --------------------------------------------------------------------------------
Wisconsin Energy Corp. 29,100 973,395
----------------
9,094,172
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
GAS UTILITIES--0.0%
ONEOK, Inc. 16,600 $ 366,528
- --------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.3%
Dynegy, Inc. 1 87,600 374,928
- --------------------------------------------------------------------------------
Equitable Resources, Inc. 7,100 304,732
- --------------------------------------------------------------------------------
MDU Resources Group, Inc. 3,900 92,855
- --------------------------------------------------------------------------------
Questar Corp. 2,200 77,330
- --------------------------------------------------------------------------------
Williams Cos., Inc. (The) 303,500 2,980,370
---------------
3,830,215
---------------
Total Common Stocks
(Cost $1,141,180,373) 1,357,830,166
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.0%
Wachovia Corp., Dividend Equalization
Preferred Shares (Cost $0) 6,000 30
UNITS
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
Dime Bancorp, Inc. Wts.,
Exp. 1/2/10 1 (Cost $0) 31,900 5,423
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--1.9%
Undivided interest of 23.74% in joint
repurchase agreement (Principal Amount/
Market Value $109,556,000, with a
maturity value of $109,560,869) with
Banc One Capital Markets, Inc., 0.80%,
dated 12/31/03, to be repurchased at
$26,009,156 on 1/2/04, collateralized
by U.S. Treasury Bonds, 4.25%,
11/30/13, with a value of $111,861,618
(Cost $26,008,000) $26,008,000 26,008,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $1,167,188,373) 100.2% 1,383,843,619
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (0.2) (2,166,925)
-------------------------------
NET ASSETS 100.0% $1,381,676,694
===============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Identifies issues considered to be illiquid. See Note 6 of Notes to Financial
Statements.
3. Received as the result of issuer reorganization. Currently has minimal market
value.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2003
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (including securities loaned of approximately $81,930,000)
(cost $1,167,188,373)--see accompanying statement $1,383,843,619
- ----------------------------------------------------------------------------------------------------------------------
Collateral for securities loaned 84,039,380
- ----------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 12,187,417
Shares of beneficial interest sold 2,302,969
Interest and dividends 1,467,055
Other 7,676
---------------
Total assets 1,483,848,116
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank overdraft 59,452
- ----------------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 84,039,380
- ----------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 12,717,345
Shares of beneficial interest redeemed 5,176,326
Distribution and service plan fees 65,451
Shareholder reports 58,885
Trustees' compensation 5,576
Transfer and shareholder servicing agent fees 1,666
Other 47,341
---------------
Total liabilities 102,171,422
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,381,676,694
==============
- ----------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 72,000
- ----------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,490,502,126
- ----------------------------------------------------------------------------------------------------------------------
Accumulated net investment income 11,726,476
- ----------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (337,279,334)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 216,655,426
---------------
NET ASSETS $1,381,676,694
===============
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Non-Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets
of $1,214,959,557 and 63,273,559 shares of beneficial interest outstanding) $19.20
- ----------------------------------------------------------------------------------------------------------------------
Service Shares:
Net asset value, redemption price per share and offering price per share (based on net assets
of $166,717,137 and 8,726,601 shares of beneficial interest outstanding) $19.10
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $47,489) $ 19,404,870
- --------------------------------------------------------------------------------------------
Interest 312,889
- --------------------------------------------------------------------------------------------
Portfolio lending fees 46,733
-------------
Total investment income 19,764,492
- --------------------------------------------------------------------------------------------
EXPENSES
Management fees 7,442,344
- --------------------------------------------------------------------------------------------
Distribution and service plan fees--Service shares 244,739
- --------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Non-Service shares 10,054
Service shares 9,759
- --------------------------------------------------------------------------------------------
Shareholder reports 103,929
- --------------------------------------------------------------------------------------------
Trustees' compensation 28,387
- --------------------------------------------------------------------------------------------
Custodian fees and expenses 17,027
- --------------------------------------------------------------------------------------------
Other 71,340
-------------
Total expenses 7,927,579
Less reduction to custodian expenses (892)
-------------
Net expenses 7,926,687
- --------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 11,837,805
- --------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (28,888,782)
Foreign currency transactions 138,800
-------------
Net realized loss (28,749,982)
- --------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 286,964,752
Translation of assets and liabilities denominated in foreign currencies 1,315,110
-------------
Net change in unrealized appreciation (depreciation) 288,279,862
- --------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $271,367,685
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER MAIN STREET FUND/VA
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2003 2002
- -----------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,837,805 $ 9,734,475
- -----------------------------------------------------------------------------------------------------------------
Net realized loss (28,749,982) (127,037,616)
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 288,279,862 (101,668,854)
--------------------------------
Net increase (decrease) in net assets resulting from operations 271,367,685 (218,971,995)
- -----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Non-Service shares (9,176,729) (7,425,251)
Service shares (594,874) (162,528)
- -----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Non-Service shares 88,259,594 34,464,855
Service shares 89,152,120 38,273,092
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 439,007,796 (153,821,827)
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 942,668,898 1,096,490,725
--------------------------------
End of period [including accumulated net investment income of
$11,726,476 and $9,701,404, respectively] $1,381,676,694 $ 942,668,898
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER MAIN STREET FUND/VA
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NON-SERVICE SHARES DECEMBER 31 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $15.32 $18.99 $21.26 $24.63 $20.48
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .18 .16 .13 .10 .11
Net realized and unrealized gain (loss) 3.86 (3.70) (2.29) (2.14) 4.29
----------------------------------------------------------------
Total from investment operations 4.04 (3.54) (2.16) (2.04) 4.40
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.16) (.13) (.11) (.09) (.09)
Distributions from net realized gain -- -- -- (1.24) (.16)
----------------------------------------------------------------
Total dividends and/or distributions to shareholders (.16) (.13) (.11) (1.33) (.25)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.20 $15.32 $18.99 $21.26 $24.63
================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 26.72% (18.80)% (10.16)% (8.78)% 21.71%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $1,214,960 $890,740 $1,074,945 $1,009,823 $555,311
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,003,396 $999,275 $1,028,913 $ 809,662 $391,063
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 1.10% 0.94% 0.73% 0.69% 0.63%
Total expenses 0.70% 3 0.69% 3 0.73% 3 0.73% 0.78% 3
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 85% 98% 69% 63% 118%
<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. Total returns are not annualized for
periods less than one full year. Total return information does not reflect
expenses that apply at the separate account level or to related insurance
products. Inclusion of these charges would reduce the total return figures for
all periods shown. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
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.
16 | OPPENHEIMER MAIN STREET FUND/VA
SERVICE SHARES DECEMBER 31 2003 2002 2001 2000 1
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $15.26 $18.95 $21.24 $24.04
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .14 .13 .14 .02
Net realized and unrealized gain (loss) 3.85 (3.70) (2.32) (2.82)
--------------------------------------------------
Total investment operations 3.99 (3.57) (2.18) (2.80)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.15) (.12) (.11) --
Distributions from net realized gain -- -- -- --
--------------------------------------------------
Total dividends and/or distributions to shareholders (.15) (.12) (.11) --
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.10 $15.26 $18.95 $21.24
==================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 26.44% (18.99)% (10.27)% (11.61)%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $166,717 $51,929 $21,545 $1,698
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 98,210 $34,604 $10,306 $ 543
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.83% 0.87% 0.66% 0.50%
Total expenses 0.96% 4 0.84% 4 0.88% 4 0.88%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 85% 98% 69% 63%
<FN>
1. For the period from July 13, 2000 (inception of offering) to December 31,
2000.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Total return information does not reflect
expenses that apply at the separate account level or to related insurance
products. Inclusion of these charges would reduce the total return figures for
all periods shown. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER MAIN STREET FUND/VA
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Fund/VA (the Fund), formerly Oppenheimer Main Street
Growth & Income Fund/VA, is a separate series of Oppenheimer Variable Account
Funds (the Trust), an open-end management investment company registered under
the Investment Company Act of 1940, as amended. The Fund's objective is to seek
high total return (which includes growth in the value of its shares as well as
current income) from equity and debt securities. The Trust's investment advisor
is OppenheimerFunds, Inc. (the Manager).
The Fund offers two classes of shares. Both classes are sold at their
offering price, which is the net asset value per share, to separate investment
accounts of participating insurance companies as an underlying investment for
variable life insurance policies, variable annuity contracts or other
investment products. The class of shares designated as Service shares is
subject to a distribution and service plan. All classes of shares have
identical rights and voting privileges with respect to the Fund in general and
exclusive voting rights on matters that affect that class alone. Earnings, net
assets and net asset value per share may differ by minor amounts due to each
class having its own expenses directly attributable to that class.
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. Securities whose values have been
materially affected by what the Manager identifies as a significant event
occurring before the Fund's assets are valued but after the close of their
respective foreign exchanges will be fair valued. 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).
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
18 | OPPENHEIMER MAIN STREET FUND/VA
- --------------------------------------------------------------------------------
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.
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.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
------------------------------------------------------------------------
$11,726,473 $-- $323,985,981 $203,362,073
1. As of December 31, 2003, the Fund had $323,017,642 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of December 31, 2003,
details of the capital loss carryforwards were as follows:
EXPIRING
---------------------------------------
2008 $ 28,801,633
2009 140,898,750
2010 126,747,906
2011 26,569,353
------------
Total $323,017,642
============
2. During the fiscal years ended December 31, 2003 and December 31, 2002, the
Fund did not utilize any capital loss carryforwards.
3. As of December 31, 2003, the Fund had $968,194 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 $147 of
post-October foreign currency 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 December 31, 2003. Net assets
of the Fund were unaffected by the reclassifications.
REDUCTION TO
REDUCTION TO ACCUMULATED NET
ACCUMULATED NET REALIZED LOSS
INVESTMENT INCOME ON INVESTMENTS
-----------------------------------------------
$41,130 $41,130
The tax character of distributions paid during the years ended December 31,
2003 and December 31, 2002 was as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
-------------------------------------------------------------------
Distributions paid from:
Ordinary income $9,771,603 $7,587,779
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 December 31, 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 $1,180,481,726
==============
Gross unrealized appreciation $ 218,060,847
Gross unrealized depreciation (14,698,774)
--------------
Net unrealized appreciation $ 203,362,073
==============
19 | OPPENHEIMER MAIN STREET FUND/VA
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
TRUSTEES' COMPENSATION. 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 Oppenheimer funds selected by the Trustee. 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 and 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, if applicable,
represents earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
YEAR ENDED DECEMBER 31, 2003 YEAR ENDED DECEMBER 31, 2002
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
NON-SERVICE SHARES
Sold 19,380,163 $ 327,567,787 11,919,835 $ 204,743,555
Dividends and/or distributions reinvested 639,048 9,176,729 383,139 7,425,251
Redeemed (14,871,791) (248,484,922) (10,772,337) (177,703,951)
----------------------------------------------------------------------
Net increase 5,147,420 $ 88,259,594 1,530,637 $ 34,464,855
======================================================================
- ---------------------------------------------------------------------------------------------------------------------
SERVICE SHARES
Sold 5,793,833 $ 97,063,016 2,415,625 $ 40,562,767
Dividends and/or distributions reinvested 41,628 594,874 8,403 162,528
Redeemed (511,472) (8,505,770) (158,496) (2,452,203)
----------------------------------------------------------------------
Net increase 5,323,989 $ 89,152,120 2,265,532 $ 38,273,092
======================================================================
- --------------------------------------------------------------------------------
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 December 31, 2003, were
$1,096,324,880 and $912,038,186, respectively.
20 | OPPENHEIMER MAIN STREET FUND/VA
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Trust which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets,
0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the
next $200 million and 0.60% of average annual net assets over $800 million.
- --------------------------------------------------------------------------------
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 December 31, 2003, the Fund
paid $20,025 to OFS for services to the Fund.
Additionally, funds offered in variable annuity separate accounts are
subject to minimum fees of $5,000 for assets of less than $10 million and
$10,000 for assets of $10 million or more. The Fund is subject to the minimum
fee in the event that the per account fee does not equal or exceed the
applicable minimum fee.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average net assets of the Fund. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FOR SERVICE SHARES. The Fund has adopted a
Distribution and Service Plan for Service shares to pay OppenheimerFunds
Distributor, Inc., the Distributor, for distribution-related services for the
Fund's Service shares. Under the Plan, payments are made quarterly at an annual
rate of up to 0.25% of the average annual net assets of the Service shares of
the Fund. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
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 gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of December 31, 2003, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of December 31, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private
placement transactions, are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are valued under methods
approved by the Board of Trustees as reflecting fair value. A security may also
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 15% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid or restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of December 31, 2003 was
$7,360, which represents less than 0.01% of the Fund's net assets.
21 | OPPENHEIMER MAIN STREET FUND/VA
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. 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 December 31,
2003, the Fund had on loan securities valued at approximately $81,930,000. Cash
of $84,039,380 was received as collateral for the loans, and has been invested
in approved instruments.
- --------------------------------------------------------------------------------
8. 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 (the SEC) 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. The
SEC's order requires the Fund's Board of Trustees to adopt operating policies
and procedures to administer interfund borrowing and lending. 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 December 31, 2003.
22 | OPPENHEIMER MAIN STREET FUND/VA
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER MAIN STREET FUND/VA:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Fund/VA, a series of Oppenheimer Variable Account
Funds, including the statement of investments, as of December 31, 2003, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for the periods indicated. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of December 31, 2003, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Main Street Fund/VA as of December 31, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 12, 2004
23 | OPPENHEIMER MAIN STREET FUND/VA
FEDERAL INCOME TAX INFORMATION UNAUDITED
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In early 2004, if applicable, shareholders of record received 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 of $0.1595 and $0.1453 per share were paid to Non-Service and
Service shareholders, respectively, on March 14, 2003, all of which was
designated as ordinary income for federal income tax purposes.
Dividends, if any, paid by the Fund during the fiscal year ended December
31, 2003 which are not designated as capital gain distributions should be
multiplied by 100% to arrive at the amount eligible for the corporate
dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES UNAUDITED
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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.
24 | OPPENHEIMER MAIN STREET FUND/VA
TRUSTEES AND OFFICERS UNAUDITED
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE;
FUND, LENGTH OF SERVICE, AGE NUMBER OF FUNDS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, CO
TRUSTEES 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Creek Mortgage Company
Chairman of the Board (since 1991), Centennial State Mortgage Company (since 1994), The El Paso Mortgage Company
(since 2003) and (since 1993), Transland Financial Services, Inc. (since 1997); Chairman of the following
Trustee (since 1999) private companies: Great Frontier Insurance (insurance agency) (since 1995), Ambassador Media
Age: 66 Corporation and Broadway Ventures (since 1984); a director of the following public companies:
Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991). Mr. Armstrong is also a Director/Trustee of
Campus Crusade for Christ and the Bradley Foundation. Formerly a director of the following:
Storage Technology Corporation (a publicly-held computer equipment company) (1991-February
2003), and International Family Entertainment (television channel) (1992-1997), Frontier Real
Estate, Inc. (residential real estate brokerage) (1994-1999), and Frontier Title (title
insurance agency) (1995-June 1999); a U.S. Senator (January 1979-January 1991). Oversees 38
portfolios in the OppenheimerFunds complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner of private
Trustee (since 1995) equity funds) (until February 2001); Chairman, President and Chief Executive Officer of A.G.
Age: 72 Edwards Capital, Inc. (until March 2000); Vice Chairman and Director of A.G. Edwards, Inc. and
Vice Chairman of A.G. Edwards & Sons, Inc. (its brokerage company subsidiary) (until March
1999); Chairman of A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March 2000) of A.G. Edwards & Sons and A.G. Edwards
Trust Company. Oversees 38 portfolios in the OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly (until April 1999): Senior Vice President (from September 1987) and Treasurer (from
Trustee (since 1997) March 1985) of OppenheimerFunds, Inc. (the Manager); Vice President (from June 1983) and
Age: 67 Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc. (a subsidiary of the
Manager); Senior Vice President (since February 1992), Treasurer (since July 1991) Assistant
Secretary and a director (since December 1991) of Centennial Asset Management Corporation; Vice
President (since October 1989) and Treasurer (since April 1986) of HarbourView Asset Management
Corporation (an investment advisory subsidiary of the Manager); President, Treasurer and a
director (June 1989-January 1990) of Centennial Capital Corporation (an investment advisory
subsidiary of the Manager); Vice President and Treasurer (since August 1978) and Secretary
(since April 1981) of Shareholder Services, Inc. (a transfer agent subsidiary of the Manager);
Vice President, Treasurer and Secretary (since November 1989) of Shareholder Financial
Services, Inc. (a transfer agent subsidiary of the Manager); Assistant Treasurer (since March
1998) of Oppenheimer Acquisition Corp. (the Manager's parent corporation); Treasurer (since
November 1989) of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); Vice President and Treasurer (since July 1996) of Oppenheimer Real Asset Management,
Inc. (an investment advisory subsidiary of the Manager); Chief Executive Officer and director
(since March 1996) of MultiSource Services, Inc. (a broker-dealer subsidiary of the Manager);
Treasurer (since October 1997) of OppenheimerFunds International Ltd. and OppenheimerFunds plc
(offshore fund management subsidiaries of the Manager). Oversees 38 portfolios in the
OppenheimerFunds complex.
EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon, George Washington's home (since June 2000).
Trustee (since 1999) Formerly (March 2001 - May 2002) Director of Genetic ID, Inc. and its subsidiaries (a privately
Age: 65 held biotech company); a partner with PricewaterhouseCoopers LLP (from 1974-1999) (an
accounting firm) and Chairman (from 1994-1998), Price Waterhouse LLP Global Investment
Management Industry Services Group. Oversees 38 portfolios in the OppenheimerFunds complex.
JON S. FOSSEL, Chairman and Director (since 1998) of Rocky Mountain Elk Foundation (a not-for-profit
Trustee (since 1995) foundation); and a director (since October 1999) of P.R. Pharmaceuticals (a privately held
Age: 61 company) and UNUMProvident (an insurance company) (since June 1, 2002). Formerly Chairman and a
director (until October 1996) and President and Chief Executive Officer (until October 1995) of
the Manager; President, Chief Executive Officer and a director of Oppenheimer Acquisition
Corp., Shareholders Services Inc. and Shareholder Financial Services, Inc. (until October
1995). Oversees 38 portfolios in the OppenheimerFunds complex.
25 | OPPENHEIMER MAIN STREET FUND/VA
TRUSTEES AND OFFICERS UNAUDITED / CONTINUED
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SAM FREEDMAN, Director of Colorado Uplift (a non-profit charity) (since September 1984). Formerly (until
Trustee (since 1996) October 1994) Mr. Freedman held several positions in subsidiary or affiliated companies of the
Age: 63 Manager. Oversees 38 portfolios in the OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee (since 1996) of MassMutual Institutional Funds and of MML Series Investment Fund
Trustee (since 2002) (open-end investment companies); Director of MML Services (since April 1987) and America Funds
Age: 57 Emerging Markets Growth Fund (since October 1991) (both are investment companies), The
California Endowment (a philanthropy organization) (since April 2002), and Community Hospital
of Monterey Peninsula, (since February 2002); a trustee (since February 2000) of Monterey
International Studies (an educational organization), and an advisor to Unilever (Holland)'s
pension fund and to Credit Suisse First Boston's Sprout venture capital unit. Mrs. Hamilton
also is a member of the investment committees of the Rockefeller Foundation, the University of
Michigan and Hartford Hospital. Formerly, President (February 1991-April 2000) ARCO Investment
Management Company. Oversees 37 portfolios in the OppenheimerFunds complex.
ROBERT J. MALONE, Chairman and CEO (since 2003) of Steele Street State Bank (a commercial banking entity);
Trustee (since 2002) Director (since 2001) of Jones Knowledge, Inc. (a privately held company), U.S. Exploration,
Age: 59 Inc., (since 1997), Colorado UpLIFT (a non-profit organization) (since 1986) and a trustee of
the Gallagher Family Foundation (non-profit organization) (since 2000). Formerly, Chairman of
U.S. Bank (a subsidiary of U.S. Bancorp and formerly Colorado National Bank,) (July 1996-April
1, 1999) and a director of Commercial Assets, Inc. (a REIT) (1993-2000). Oversees 37 portfolios
in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee (since 1996) of MassMutual Institutional Funds and of MML Series Investment Fund
Trustee (since 2000) (open-end investment companies); Trustee (since 1987), Chairman of the Board (since 2003) and
Age: 61 Chairman of the investment committee (since 1994) for the Worcester Polytech Institute;
President and Treasurer (since January 1999) of the SIS Fund (a private not for profit
charitable fund); Trustee (since 1995) of the Springfield Library and Museum Association;
Trustee (since 1996) of the Community Music School of Springfield. Formerly, member of the
investment committee of the Community Foundation of Western Massachusetts (1998 - 2003);
Chairman (January 1999-July 1999) of SIS & Family Bank, F.S.B. (formerly SIS Bank); President,
Chief Executive Officer and Director (May 1993-December 1998) of SIS Bankcorp, Inc. and SIS
Bank (formerly Springfield Institution for Savings) and Executive Vice President (January
1999-July 1999) of Peoples Heritage Financial Group, Inc. Oversees 38 portfolios in the
OppenheimerFunds complex.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
AND OFFICER NEW YORK, NY 10281-1008. 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 (since September
President and Trustee 2000) of the Manager; President and a director or trustee of other Oppenheimer funds; President
(since 2001) and a director (since July 2001) of Oppenheimer Acquisition Corp. and of Oppenheimer
Age: 54 Partnership Holdings, Inc.; a director (since November 2001) of OppenheimerFunds Distributor,
Inc.; Chairman and a director (since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc.; President and a director (since July 2001) of
OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a
director of the following investment advisory subsidiaries of OppenheimerFunds, Inc.: OFI
Institutional Asset Management, Inc. and Centennial Asset Management Corporation (since
November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc.
(since July 2001); President (since November 1, 2001) and a director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the Manager);
Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company
(the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a
holding company that owns shares of David L. Babson & Company, Inc.); formerly, Chief Operating
Officer (September 2000-June 2001) of the Manager; President and trustee (November
1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end
investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company;
President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State
Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia
Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 72 portfolios as a
Trustee/Officer and 10 portfolios as an Officer in the OppenheimerFunds complex.
26 | OPPENHEIMER MAIN STREET FUND/VA
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MESSRS. MONOYIOS, REINGANUM
AND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NY 10281-1008, FOR MR.
WIXTED, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH OFFICER SERVES FOR AN ANNUAL TERM
OR UNTIL HIS OR HER EARLIER RESIGNATION, DEATH OR REMOVAL.
NIKOLAOS D. MONOYIOS, Vice President of the Manager (since April 1998); an officer of 4 portfolios in the
Vice President and Portfolio OppenheimerFunds complex; a Certified Financial Analyst; formerly a Vice President and
Manager (since 1999) portfolio manager for Guardian Investor Services, the investment management subsidiary of The
Age: 54 Guardian Life Insurance Company (1979 - March 1998).
DR. MARC REINGANUM, Vice President (since September 2002) of the Manager; a Director of Quantitative Research and
Vice President and Portfolio Portfolio Strategist for Equities. Formerly the Mary Jo Vaughn Rauscher Chair in Financial
Manager (since 2003) Age: 50 Investments at Southern Methodist University since 1995. At Southern Methodist University he
also served as the Director of the Finance Institute, Chairman of the Finance Department,
President of the Faculty at the Cox School of Business and member of the Board of Trustee
Investment Committee.
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer (since March
Treasurer (since 1999) 1999) of HarbourView Asset Management Corporation, Shareholder Services, Inc., Oppenheimer Real
Age: 44 Asset Management Corporation, Shareholder Financial Services, Inc., Oppenheimer Partnership
Holdings, Inc., OFI Private Investments, Inc. (since March 2000), OppenheimerFunds
International Ltd. and OppenheimerFunds plc (offshore fund management subsidiaries of the
Manager) (since May 2000) and OFI Institutional Asset Management, Inc. (since November 2000);
Treasurer and Chief Financial Officer (since May 2000) of OFI Trust Company (a trust company
subsidiary of the Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition
Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal and Chief
Operating Officer (March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division.
An officer of 82 portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since February 2002) of the
Vice President and Secretary Manager; General Counsel and a director (since November 2001) of OppenheimerFunds Distributor,
(since 2001) Inc.; Senior Vice President and General Counsel (since November 2001) of HarbourView Asset
Age: 55 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., OFI 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 Senior Vice President (May 1985-January 2004), Acting General
Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of
the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001),
Shareholder Financial Services, Inc. (November 1989-November 2001); OppenheimerFunds
International Ltd. And OppenheimerFunds plc (October 1997-November 2001). An officer of 82
portfolios in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
27 | OPPENHEIMER MAIN STREET FUND/VA
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a
member of the Board's Audit Committee, possess the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit
committee financial experts," and has designated Messrs. Cameron and Bowen as
the Audit Committee's financial experts. Messrs. Cameron and Bowen are
"independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $15,500 in fiscal 2003 and $15,000 in
fiscal 2002.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $75,000 in fiscal 2003 and $65,000 in
fiscal 2002 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $11,600 in fiscal 2003 and $6,500 in
fiscal 2002 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax advice
related to mergers and acquisitions and requests for rulings or
technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $0 in fiscal 2003 and $3,500 in
fiscal 2002 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include services provided to the registrant's
Board of Trustees with respect to the annual renewal of the
registrant's investment advisory agreement.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the
registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized
by the registrant at the time of engagement as non-audit services
and 3) such services are promptly brought to the attention of the
audit committee of the registrant and approved prior to the
completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $86,600 in fiscal 2003 and $75,000 in
fiscal 2002 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not
include any prohibited non-audit services as defined by the
Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal account's independence. No such services
were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable for fiscal periods ending December 31, 2003.
ITEM 10. 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 December 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to provide reasonable
assurances 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 over financial reporting that occurred during the registrant's
second fiscal half-year that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)