NOTE: REPLACEMENT TO ACCESSION NUMBER 0000935069-04-000289
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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 SMALL CAP 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
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Date of fiscal year end: DECEMBER 31
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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 Oppenheimer Main Street Small
Cap Fund/VA's average annual total returns for the Non-Service and Service
shares for the 12-month period ended December 31, 2003, please refer to page 5.
We are pleased that the Fund produced strong returns for the 12-month period
ended December 31, 2003.
The Fund, which provided strong real performance, lagged its benchmark
slightly during 2003. First, early in 2003, the Fund was positioned to take
advantage of the "January effect". The January effect is a stock market anomaly
where lower quality, higher risk small-cap stocks tend to outperform higher
quality, lower risk large-cap stocks. We had positioned the portfolio to take
advantage of this anomaly, although it didn't occur in January. It appears that
this year, the January effect was delayed by concerns leading up to the war in
Iraq. Instead, many of the companies that our model expected to do well in
January, did well in April and May, and by that time we had transitioned the
Fund away from lower quality stocks to the higher quality stocks favored by our
models.
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.
Another challenge for actively managed portfolios is dealing with variable
cash flows. In 2003, Oppenheimer Main Street Small Cap Fund/VA saw massive
inflows which needed to be invested while adhering to our quantitative models.
Periodically, this resulted in slightly higher cash positions than desired.
However, by year-end we were fully invested, with less than 2% in cash.
Despite these challenges, the Fund benefited from the sector allocation bets
we made. We chose to be overweight in the consumer discretionary sector when it
appeared that confidence was rebounding. As the economic recovery strengthened,
so did consumer purchases, which helped the Fund. Though technology and
industrials were weak early in the year, our decision to overweight paid off
later in the period. As we increased our exposure in some sectors, we
underweighted others. Reducing our exposure to utilities and financial
securities, which are generally defensive positions, proved to be well timed and
helped the Fund.
While these sector allocations versus the index were helpful, it seems that
the quality of the securities had a greater impact on performance, with the
smallest and most speculative securities providing the highest returns during
the year. While we reduced our market cap by increasing our exposure to
micro-cap stocks over the course of the year, the Russell 2000 Index had an even
smaller average market capitalization. Throughout the year we've increased
exposure to some higher beta, more speculative issues to capitalize on this
trend. That said, it is important to remember that this Fund is highly
diversified, with between 1,200 and 1,300 holdings on average.
In our view, we expect the environment to remain favorable for small-cap
stocks relative to large-cap stocks. Small-cap stocks tend to outperform in
environments like the one we are currently in, coming out of a recession and
when short-term interest rates are at very low levels. In addition, the
multi-factor quantitative models we utilize in managing the Fund, which look at
a variety of inputs, such as economic factors, relative valuation factors, and
price momentum factors, are currently favoring small-cap stocks over large-cap
stocks.
By the end of 2003, we have successfully reduced the cash position, investing
nearly all assets in a less defensive manner. We remain underweight in utilities
and financials, and continue to favor more economically sensitive securities
that we believe can do well in the coming year.
At the end of the Fund's fiscal year, Oppenheimer Main Street Small Cap
Fund/VA's portfolio manager Chuck Albers retired. Mark Zavanelli, who was Mr.
Albers' co-manager on the Fund, will continue to manage the Fund with Nikolaos
Monoyios going forward. Messrs. Zavanelli and Monoyios will continue the
quantitative management style pioneered by Mr. Albers.
3 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
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FUND PERFORMANCE DISCUSSION
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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 May 1, 1998. In the case of Service
shares, performance is measured from inception of the class on July 16, 2001.
Performance information does not reflect charges that apply to separate accounts
investing in the Fund. If these charges were taken into account, performance
would be lower. The graphs assume that all dividends and capital gains
distributions were reinvested in additional shares.
The Fund's performance is compared to the performance of the Russell
2000(R) Index, an unmanaged index of equity securities of small
capitalization companies that is a measure of the small company 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 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.
4 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
NON-SERVICE SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Small Cap Fund/VA (Non-Service)
[GRAPHIC]
Oppenheimer
Main Street
Small Cap Fund/VA Russell 2000(R)
(Non-Service) Index
05/01/1998 $10,000 $10,000
06/30/1998 9,560 9,481
09/30/1998 8,400 7,571
12/31/1998 9,600 8,806
03/31/1999 8,880 8,328
06/30/1999 9,310 9,624
09/30/1999 9,440 9,015
12/31/1999 14,070 10,678
03/31/2000 15,364 11,434
06/30/2000 13,178 11,002
09/30/2000 13,468 11,124
12/31/2000 11,490 10,355
03/31/2001 9,376 9,682
06/30/2001 11,334 11,065
09/30/2001 9,666 8,765
12/31/2001 11,448 10,613
03/31/2002 11,821 11,036
06/30/2002 11,490 10,114
09/30/2002 9,563 7,949
12/31/2002 9,645 8,439
03/31/2003 9,262 8,060
06/30/2003 11,200 9,948
09/30/2003 12,122 10,851
12/31/2003 13,924 12,427
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 12/31/2003
1 Year 44.36% 5 Year 7.72% Since Inception 6.02% Inception Date 5/1/1998
SERVICE SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Main Street Small Cap Fund/VA (Service)
Russell 2000(R) Index
[GRAPHIC]
Oppenheimer
Main Street
Small Cap Fund/VA Russell 2000(R)
(Service) Index
07/16/2001 $10,000 $10,000
09/30/2001 8,784 8,374
12/31/2001 10,415 10,140
03/31/2002 10,763 10,544
06/30/2002 10,452 9,663
09/30/2002 8,690 7,595
12/31/2002 8,756 8,063
03/31/2003 8,417 7,701
06/30/2003 10,170 9,505
09/30/2003 10,999 10,368
12/31/2003 12,630 11,873
AVERAGE ANNUAL TOTAL RETURN OF SERVICE CLASS SHARES OF THE FUND AT 12/31/2003
1 Year 44.24% Since Inception 9.96% Inception Date 7/16/2001
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.
5 | OPPENHEIMER MAIN STREET SMALL CAP 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--17.5%
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AUTO COMPONENTS--1.3%
ArvinMeritor, Inc. 6,700 $ 161,604
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Cooper Tire & Rubber Co. 2,000 42,760
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Dana Corp. 5,900 108,265
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Drew Industries, Inc. 1 6,500 180,700
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Dura Automotive Systems, Inc. 1 1,700 21,709
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Goodyear Tire & Rubber Co. 1 6,500 51,090
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IMPCO Technologies, Inc. 1 3,500 30,520
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Keystone Automotive Industries, Inc. 1 1,400 35,504
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Modine Manufacturing Co. 6,700 180,766
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Quantum Fuel Systems
Technologies Worldwide, Inc. 1 7,300 58,692
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Raytech Corp. 1 100 332
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Sauer-Danfoss, Inc. 1,400 22,680
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Spartan Motors, Inc. 1,500 15,150
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Stoneridge, Inc. 1 400 6,020
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Strattec Security Corp. 1 300 18,273
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Tenneco Automotive, Inc. 1 15,500 103,695
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Tower Automotive, Inc. 1 1,900 12,977
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Universal Technical Institute, Inc. 1 2,900 87,000
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Visteon Corp. 7,100 73,911
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1,211,648
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AUTOMOBILES--0.1%
Coachmen Industries, Inc. 1,200 21,732
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Thor Industries, Inc. 1,200 67,464
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Winnebago Industries, Inc. 500 34,375
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123,571
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DISTRIBUTORS--0.2%
Andersons, Inc. (The) 400 6,387
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Handleman Co. 5,200 106,756
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Pomeroy Computer Resources, Inc. 400 5,896
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Source Information
Management Co. (The) 1 4,500 47,790
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WESCO International, Inc. 1 100 885
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167,714
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HOTELS, RESTAURANTS & LEISURE--3.2%
Alliance Gaming Corp. 1 7,600 187,340
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Ambassadors Group, Inc. 1,100 25,839
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Argosy Gaming Co. 1 2,200 57,178
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Aztar Corp. 1 12,300 276,750
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Buffalo Wild Wings, Inc. 1 1,300 33,735
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CBRL Group, Inc. 1,600 61,216
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CEC Entertainment, Inc. 1 5,500 260,645
MARKET VALUE
SHARES SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
Checkers Drive-In Restaurants, Inc. 1 2,000 $ 20,820
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Choice Hotels International, Inc. 1 6,400 225,600
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Dave & Buster's, Inc. 1 7,600 96,368
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Dover Downs Gaming
& Entertainment, Inc. 1,300 12,298
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Frisch's Restaurants, Inc. 100 2,880
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Isle of Capri Casinos, Inc. 1 8,000 171,760
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Jack in the Box, Inc. 1 7,700 164,472
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Multimedia Games, Inc. 1 3,600 147,960
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Orbitz, Inc., Cl. A 1 1,900 44,080
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Papa John's International, Inc. 1 2,700 90,126
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Penn National Gaming, Inc. 1 4,100 94,628
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Pinnacle Entertainment, Inc. 1 3,200 29,824
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Prime Hospitality Corp. 1 6,300 64,260
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Rare Hospitality International, Inc. 1 7,950 194,298
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Ryan's Family Steak Houses, Inc. 1 2,000 30,280
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Scientific Games Corp., Cl. A 1 7,900 134,379
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Shuffle Master, Inc. 1 2,800 96,936
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Six Flags, Inc. 1 15,300 115,056
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Steak n Shake Co. (The) 1 3,500 62,475
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Total Entertainment Restaurant Corp. 1 3,100 37,448
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WMS Industries, Inc. 1 6,500 170,300
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2,908,951
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HOUSEHOLD DURABLES--3.0%
Beazer Homes USA, Inc. 3,100 302,746
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Blount International, Inc. 1 100 787
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Boyds Collection Ltd. (The) 1 900 3,825
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Brookfield Homes Corp. 2,900 74,733
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Chromcraft Revington, Inc. 1 200 2,268
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CSS Industries, Inc. 2,600 80,626
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Department 56, Inc. 1 2,100 27,510
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Emerson Radio Corp. 1 2,000 7,520
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Enesco Group, Inc. 1 800 8,256
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Flexsteel Industries, Inc. 100 2,250
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Helen of Troy Ltd. 1 6,600 152,790
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Hooker Furniture Corp. 1,100 44,880
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Hovnanian Enterprises, Inc., Cl. A 1 1,000 87,060
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Interface, Inc., Cl. A 1 2,100 11,613
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Jarden Corp. 1 8,200 224,188
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Kimball International, Inc., Cl. B 1,500 23,325
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Libbey, Inc. 100 2,848
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M.D.C. Holdings, Inc. 1,619 104,426
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M/I Schottenstein Homes, Inc. 3,400 132,770
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Meritage Corp. 1 4,000 265,240
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Mestek, Inc. 1 1,000 19,260
6 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
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HOUSEHOLD DURABLES Continued
Movado Group, Inc. 1,700 $ 47,991
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National Presto Industries, Inc. 500 18,075
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Russ Berrie & Co., Inc. 800 27,120
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Ryland Group, Inc. (The) 500 44,320
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Standard Pacific Corp. 6,300 305,865
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Stanley Furniture Co., Inc. 600 18,900
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Technical Olympic USA, Inc. 1 5,300 145,909
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Tempur-Pedic International, Inc. 1 8,300 128,650
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Tripath Technology, Inc. 1 12,700 87,630
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William Lyon Homes, Inc. 1 2,800 175,756
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Yankee Candle, Inc. (The) 1 4,600 125,718
-------------
2,704,855
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INTERNET & CATALOG RETAIL--0.2%
Coldwater Creek, Inc. 1 700 7,700
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FTD, Inc., Cl. A 1 200 4,928
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PC Connection, Inc. 1 5,900 49,383
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Provide Commerce, Inc. 1 3,700 56,129
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ValueVision Media, Inc., Cl. A 1 1,300 21,710
-------------
139,850
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LEISURE EQUIPMENT & PRODUCTS--1.2%
Action Performance Cos., Inc. 6,800 133,280
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Arctic Cat, Inc. 200 4,940
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Callaway Golf Co. 13,900 234,215
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Concord Camera Corp. 1 5,100 47,175
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Marine Products Corp. 100 1,880
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MarineMax, Inc. 1 10,500 204,015
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Marvel Enterprises, Inc. 1 5,500 160,105
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Nautilus Group, Inc. (The) 9,900 139,095
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RC2 Corp. 1 500 10,375
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SCP Pool Corp. 1 2,875 93,955
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Steinway Musical Instruments, Inc. 1 200 4,940
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Sturm, Ruger & Co., Inc. 1,900 21,603
-------------
1,055,578
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MEDIA--1.4%
Acme Communications, Inc. 1 100 879
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Advo, Inc. 2,950 93,692
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APAC Teleservices, Inc. 1 1,800 4,680
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Carmike Cinemas, Inc. 1 500 17,425
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Courier Corp. 450 17,312
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Digital Generation Systems, Inc. 1 8,800 19,712
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Entravision Communications Corp. 1 4,600 51,060
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Grey Global Group, Inc. 300 204,915
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Hollinger International, Inc. 3,100 48,422
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Insight Communications Co., Inc. 1 12,400 127,844
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
MEDIA Continued
Knology, Inc. 1 6,800 $ 61,336
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Mediacom Communications Corp. 1 7,300 63,291
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Pegasus Communications Corp. 1 100 2,808
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R.H. Donnelley Corp. 1 6,800 270,912
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RCN Corp. 1 8,200 6,560
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Salem Communications Corp., Cl. A 1 1,200 32,544
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Thomas Nelson, Inc. 3,700 71,521
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TiVo, Inc. 1 17,200 127,280
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Young Broadcasting, Inc., Cl. A 1 500 10,020
-------------
1,232,213
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MULTILINE RETAIL--0.0%
Bon-Ton Stores, Inc. 1,000 11,100
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Shopko Stores, Inc. 1 600 9,150
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20,250
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SPECIALTY RETAIL--5.1%
Aeropostale, Inc. 1 7,600 208,392
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America's Car-Mart, Inc. 1 2,100 56,532
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Asbury Automotive Group, Inc. 1 700 12,537
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Big 5 Sporting Goods Corp. 1 2,900 60,755
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Blair Corp. 2,300 55,982
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Bombay Co., Inc. (The) 1 15,700 127,798
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Borders Group, Inc. 1 1,200 26,304
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Brookstone, Inc. 1 7,450 158,760
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Buckle, Inc. (The) 1,200 26,580
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Building Materials Holding Corp. 6,200 96,286
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Cache, Inc. 1 2,200 45,826
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Casual Male Retail Group, Inc. 1 1,900 13,186
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Christopher & Banks Corp. 8,800 171,864
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Claire's Stores, Inc. 6,400 120,576
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Cost Plus, Inc. 1 300 12,300
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CSK Auto Corp. 1 3,600 67,572
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Dress Barn, Inc. (The) 1 5,000 74,950
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Finish Line, Inc. (The), Cl. A 1 6,800 203,796
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Finlay Enterprises, Inc. 1 1,800 25,434
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Footstar, Inc. 1 16,200 62,856
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Friedman's, Inc., Cl. A 1,000 6,710
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GameStop Corp. 1 5,200 80,132
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Goody's Family Clothing, Inc. 7,700 72,072
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Guess?, Inc. 1 7,600 91,732
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Hancock Fabrics, Inc. 4,300 62,264
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Hibbett Sporting Goods, Inc. 1 3,150 93,870
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Hollywood Entertainment Corp. 1 13,000 178,750
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Hot Topic, Inc. 1 5,550 163,503
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Jos. A. Banks Clothiers, Inc. 1 3,600 124,884
7 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
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MARKET VALUE
SHARES SEE NOTE 1
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SPECIALTY RETAIL Continued
Loehmann's Holdings, Inc. 1 1,400 $ 26,852
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Men's Wearhouse, Inc. (The) 1 9,100 227,591
- ----------------------------------------------------------------
Monro Muffler Brake, Inc. 1 2,700 54,027
- ----------------------------------------------------------------
Movie Gallery, Inc. 1 8,325 155,511
- ----------------------------------------------------------------
NetFlix.com, Inc. 1 4,800 262,512
- ----------------------------------------------------------------
Pacific Sunwear of California, Inc. 5,875 124,080
- ----------------------------------------------------------------
Rent-Way, Inc. 1 1,600 13,104
- ----------------------------------------------------------------
Restoration Hardware, Inc. 1 3,800 18,050
- ----------------------------------------------------------------
Rex Stores Corp. 1 1,500 21,240
- ----------------------------------------------------------------
Select Comfort Corp. 1 6,900 170,844
- ----------------------------------------------------------------
Sharper Image Corp. 1 5,700 186,105
- ----------------------------------------------------------------
Shoe Carnival, Inc. 1 700 12,460
- ----------------------------------------------------------------
Sports Authority, Inc. (The) 1 4,261 163,622
- ----------------------------------------------------------------
Syms Corp. 1 400 2,756
- ----------------------------------------------------------------
TBC Corp. 1 5,500 141,955
- ----------------------------------------------------------------
Tractor Supply Co. 1 2,600 101,114
- ----------------------------------------------------------------
Trans World Entertainment Corp. 1 900 6,408
- ----------------------------------------------------------------
Tuesday Morning Corp. 1 4,800 145,200
- ----------------------------------------------------------------
Tweeter Home Entertainment
Group, Inc. 1 2,600 24,570
- ----------------------------------------------------------------
United Auto Group, Inc. 5,800 181,540
- ----------------------------------------------------------------
Whitehall Jewellers, Inc. 1 900 8,883
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Wilsons The Leather Experts, Inc. 1 2,500 8,725
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Zale Corp. 1 900 47,880
-------------
4,607,232
- ----------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.8%
Ashworth, Inc. 1 600 4,842
- ----------------------------------------------------------------
Brown Shoe Co., Inc. 4,600 174,478
- ----------------------------------------------------------------
Cherokee, Inc. 900 20,466
- ----------------------------------------------------------------
Culp, Inc. 1 2,100 22,890
- ----------------------------------------------------------------
Deckers Outdoor Corp. 1 2,100 43,050
- ----------------------------------------------------------------
DHB Industries, Inc. 1 9,000 63,000
- ----------------------------------------------------------------
Gildan Activewear, Inc., Cl. A 1 200 6,176
- ----------------------------------------------------------------
Hampshire Group Ltd. 1 3,400 106,658
- ----------------------------------------------------------------
K-Swiss, Inc., Cl. A 10,200 245,412
- ----------------------------------------------------------------
Kenneth Cole Productions, Inc., Cl. A 4,000 117,600
- ----------------------------------------------------------------
OshKosh B'Gosh, Inc., Cl. A 1,700 36,482
- ----------------------------------------------------------------
Perry Ellis International, Inc. 1 1,000 25,780
- ----------------------------------------------------------------
Russell Corp. 1,000 17,560
- ----------------------------------------------------------------
Steven Madden Ltd. 1 5,100 104,040
- ----------------------------------------------------------------
Stride Rite Corp. 11,100 126,318
- ----------------------------------------------------------------
Timberland Co., Cl. A 1 400 20,828
- ----------------------------------------------------------------
Tommy Hilfiger Corp. 1 9,500 140,695
- ----------------------------------------------------------------
Unifi, Inc. 1 5,700 36,765
- ----------------------------------------------------------------
UniFirst Corp. 100 2,371
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS Continued
Vans, Inc. 1 2,400 $ 27,384
- ----------------------------------------------------------------
Warnaco Group, Inc. (The) 1 6,500 103,675
- ----------------------------------------------------------------
Weyco Group, Inc. 300 10,095
- ----------------------------------------------------------------
Wolverine World Wide, Inc. 7,300 148,774
-------------
1,605,339
- ----------------------------------------------------------------
CONSUMER STAPLES--2.6%
- ----------------------------------------------------------------
BEVERAGES--0.0%
Coca-Cola Bottling Co. Consolidated 200 10,698
- ----------------------------------------------------------------
National Beverage Corp. 1 500 8,150
-------------
18,848
- ----------------------------------------------------------------
FOOD & STAPLES RETAILING--0.6%
Arden Group, Inc., Cl. A 300 23,250
- ----------------------------------------------------------------
BJ's Wholesale Club, Inc. 1 1,300 29,848
- ----------------------------------------------------------------
Casey's General Stores, Inc. 1,400 24,724
- ----------------------------------------------------------------
Central European Distribution Corp. 1 1,300 41,080
- ----------------------------------------------------------------
Chronimed, Inc. 1 5,600 47,488
- ----------------------------------------------------------------
Ingles Markets, Inc., Cl. A 200 2,054
- ----------------------------------------------------------------
Longs Drug Stores, Inc. 1,200 29,688
- ----------------------------------------------------------------
Pantry, Inc. (The) 1 1,500 34,050
- ----------------------------------------------------------------
Pathmark Stores, Inc. 1 3,800 28,880
- ----------------------------------------------------------------
Ruddick Corp. 2,000 35,800
- ----------------------------------------------------------------
Smart & Final, Inc. 1 2,900 29,232
- ----------------------------------------------------------------
United Natural Foods, Inc. 1 400 14,364
- ----------------------------------------------------------------
Weis Markets, Inc. 4,300 156,090
- ----------------------------------------------------------------
Winn-Dixie Stores, Inc. 3,600 35,820
-------------
532,368
- ----------------------------------------------------------------
FOOD PRODUCTS--1.0%
Alico, Inc. 300 10,428
- ----------------------------------------------------------------
Central Garden & Pet Co. 1 1,000 28,030
- ----------------------------------------------------------------
Chiquita Brands International, Inc. 1 8,400 189,252
- ----------------------------------------------------------------
Corn Products International, Inc. 600 20,670
- ----------------------------------------------------------------
Del Monte Foods Co. 1 1,100 11,440
- ----------------------------------------------------------------
Flowers Foods, Inc. 8,100 208,980
- ----------------------------------------------------------------
Horizon Organic Holding Corp. 1 100 2,395
- ----------------------------------------------------------------
International Multifoods Corp. 1 800 14,400
- ----------------------------------------------------------------
J&J Snack Foods Corp. 1 1,300 49,088
- ----------------------------------------------------------------
M&F Worldwide Corp. 1 8,100 108,216
- ----------------------------------------------------------------
MGP Ingredients, Inc. 300 4,725
- ----------------------------------------------------------------
Omega Protein Corp. 1 10,900 84,148
- ----------------------------------------------------------------
Peet's Coffee & Tea, Inc. 1 2,200 38,302
- ----------------------------------------------------------------
Sanderson Farms, Inc. 3,300 132,990
- ----------------------------------------------------------------
Sanfilippo (John B.) & Son, Inc. 1 200 10,208
- ----------------------------------------------------------------
Seaboard Corp. 100 28,200
-------------
941,472
8 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.5%
Chattem, Inc. 1 2,500 $ 44,750
- ----------------------------------------------------------------
Energizer Holdings, Inc. 1 600 22,536
- ----------------------------------------------------------------
Nu Skin Asia Pacific, Inc., Cl. A 700 11,963
- ----------------------------------------------------------------
Rayovac Corp. 1 8,600 180,170
- ----------------------------------------------------------------
Revlon, Inc., Cl. A 1 100 224
- ----------------------------------------------------------------
WD-40 Co. 4,900 173,264
-------------
432,907
- ----------------------------------------------------------------
PERSONAL PRODUCTS--0.4%
Del Laboratories, Inc. 2,537 63,425
- ----------------------------------------------------------------
First Years, Inc. (The) 900 13,446
- ----------------------------------------------------------------
Nature's Sunshine Products, Inc. 500 4,225
- ----------------------------------------------------------------
NBTY, Inc. 1 600 16,116
- ----------------------------------------------------------------
USANA Health Sciences, Inc. 1 8,900 272,340
-------------
369,552
- ----------------------------------------------------------------
TOBACCO--0.1%
Standard Commercial Corp. 400 8,028
- ----------------------------------------------------------------
Star Scientific, Inc. 1 700 1,288
- ----------------------------------------------------------------
Universal Corp. 1,100 48,587
- ----------------------------------------------------------------
Vector Group Ltd. 300 4,896
-------------
62,799
- ----------------------------------------------------------------
ENERGY--5.1%
- ----------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.7%
Carbo Ceramics, Inc. 200 10,250
- ----------------------------------------------------------------
CHC Helicopter Corp., Cl. A 700 17,876
- ----------------------------------------------------------------
Ensign Resource Service Group, Inc. 3,700 58,982
- ----------------------------------------------------------------
Gulf Island Fabrication, Inc. 1 1,200 20,436
- ----------------------------------------------------------------
Gulfmark Offshore, Inc. 1 700 9,800
- ----------------------------------------------------------------
Key Energy Services, Inc. 1 10,000 103,100
- ----------------------------------------------------------------
Matrix Service Co. 1 5,600 101,640
- ----------------------------------------------------------------
Oil States International, Inc. 1 13,200 184,008
- ----------------------------------------------------------------
Seabulk International, Inc. 1 400 3,248
- ----------------------------------------------------------------
Tesco Corp. 1 2,400 19,594
- ----------------------------------------------------------------
Trican Well Service Ltd. 1 4,100 87,885
- ----------------------------------------------------------------
Unit Corp. 1 500 11,775
-------------
628,594
- ----------------------------------------------------------------
OIL & GAS--4.4%
BlackRock Ventures, Inc. 1 20,000 64,229
- ----------------------------------------------------------------
Brown (Tom), Inc. 1 2,200 70,950
- ----------------------------------------------------------------
Cabot Oil & Gas Corp., Cl. A 1,900 55,765
- ----------------------------------------------------------------
Callon Petroleum Co. 1 4,600 47,702
- ----------------------------------------------------------------
Canadian Superior Energy, Inc. 1 35,000 88,296
- ----------------------------------------------------------------
Chesapeake Energy Corp. 6,500 88,270
- ----------------------------------------------------------------
Cimarex Energy Co. 1 5,490 146,528
- ----------------------------------------------------------------
Clear Energy, Inc. 1 9,133 25,090
- ----------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
OIL & GAS Continued
Compton Petroleum Corp. 1 6,800 $ 31,573
- ----------------------------------------------------------------
Comstock Resources, Inc. 1 11,900 229,670
- ----------------------------------------------------------------
Crew Energy, Inc. 1 5,666 16,618
- ----------------------------------------------------------------
Denbury Resources, Inc. 1 10,200 141,882
- ----------------------------------------------------------------
Dominion Resources Black
Warrior Trust 300 8,550
- ----------------------------------------------------------------
Encore Acquisition Co. 1 1,100 27,115
- ----------------------------------------------------------------
Energy Partners Ltd. 1 6,100 84,790
- ----------------------------------------------------------------
Esprit Exploration Ltd. 1,2 10,600 22,804
- ----------------------------------------------------------------
Esprit Exploration Ltd. 1 9,700 20,867
- ----------------------------------------------------------------
Frontier Oil Corp. 11,000 189,420
- ----------------------------------------------------------------
Holly Corp. 4,900 134,750
- ----------------------------------------------------------------
Houston Exploration Co. 1 2,900 105,908
- ----------------------------------------------------------------
Impact Energy, Inc. 1 61,500 64,248
- ----------------------------------------------------------------
Kaneb Services LLC 600 19,122
- ----------------------------------------------------------------
Ketch Resources Ltd. 1 4,900 34,127
- ----------------------------------------------------------------
Magnum Hunter Resources, Inc. 1 5,000 47,550
- ----------------------------------------------------------------
Maritrans, Inc. 2,500 41,775
- ----------------------------------------------------------------
McMoRan Exploration Co. 1 2,400 45,000
- ----------------------------------------------------------------
Meridian Resource Corp. (The) 1 10,300 61,182
- ----------------------------------------------------------------
North Coast Energy, Inc. 1 100 1,069
- ----------------------------------------------------------------
Nuevo Energy Co. 1 2,900 70,093
- ----------------------------------------------------------------
OMI Corp. 1 22,000 196,460
- ----------------------------------------------------------------
Overseas Shipholding Group, Inc. 1,400 47,670
- ----------------------------------------------------------------
Paramount Resources Ltd. 5,400 43,668
- ----------------------------------------------------------------
Patina Oil & Gas Corp. 3,556 174,208
- ----------------------------------------------------------------
Penn Virginia Corp. 2,700 150,255
- ----------------------------------------------------------------
Petroleum Development Corp. 1 800 18,960
- ----------------------------------------------------------------
Pogo Producing Co. 1,000 48,300
- ----------------------------------------------------------------
Prima Energy Corp. 1 300 10,548
- ----------------------------------------------------------------
Progress Energy Ltd. 1 9,700 93,266
- ----------------------------------------------------------------
Purcell Energy Ltd. 1 3,600 7,104
- ----------------------------------------------------------------
Range Resources Corp. 1 2,500 23,625
- ----------------------------------------------------------------
Real Resources, Inc. 1 3,800 16,173
- ----------------------------------------------------------------
Remington Oil & Gas Corp. 1 4,600 90,574
- ----------------------------------------------------------------
Resource America, Inc., Cl. A 800 12,000
- ----------------------------------------------------------------
Rio Alto Resources
International, Inc. 1 12,600 8,678
- ----------------------------------------------------------------
St. Mary Land & Exploration Co. 1,000 28,500
- ----------------------------------------------------------------
StarPoint Energy Ltd. 1 1,800 6,282
- ----------------------------------------------------------------
Stelmar Shipping Ltd. 1,600 34,976
- ----------------------------------------------------------------
Stone Energy Corp. 1 5,300 224,985
- ----------------------------------------------------------------
Swift Energy Co. 1 1,800 30,330
- ----------------------------------------------------------------
Tesoro Petroleum Corp. 1 17,200 250,604
- ----------------------------------------------------------------
TransMontaigne, Inc. 1 200 1,290
- ----------------------------------------------------------------
Tusk Energy, Inc. 1 11,700 34,224
- ----------------------------------------------------------------
Upton Resources, Inc. 1 10,000 37,686
9 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
OIL & GAS Continued
Western Gas Resources, Inc. 3,600 $ 170,100
- ----------------------------------------------------------------
Whiting Petroleum Corp. 1 2,100 38,640
- ----------------------------------------------------------------
Williams (Clayton) Energy, Inc. 1 400 11,628
- ----------------------------------------------------------------
World Fuel Services Corp. 4,300 145,985
-------------
3,941,662
- ----------------------------------------------------------------
FINANCIALS--16.3%
- ----------------------------------------------------------------
CAPITAL MARKETS--0.1%
National Financial Partners Corp. 1,600 44,080
- ----------------------------------------------------------------
SWS Group, Inc. 1,900 33,820
-------------
77,900
- ----------------------------------------------------------------
COMMERCIAL BANKS--9.1%
Allegiant Bancorp, Inc. 600 16,830
- ----------------------------------------------------------------
Alliance Financial Corp. 600 19,158
- ----------------------------------------------------------------
AmericanWest Bancorporation 2,100 47,880
- ----------------------------------------------------------------
Anchor BanCorp Wisconsin, Inc. 7,300 181,770
- ----------------------------------------------------------------
Arrow Financial Corp. 551 15,301
- ----------------------------------------------------------------
Bank of the Ozarks, Inc. 800 18,008
- ----------------------------------------------------------------
BankAtlantic Bancorp, Inc. 900 17,100
- ----------------------------------------------------------------
BankUnited Financial Corp., Cl. A 1 2,200 56,738
- ----------------------------------------------------------------
Bay View Capital Corp. 4,800 10,272
- ----------------------------------------------------------------
Berkshire Hills Bancorp, Inc. 1,300 47,060
- ----------------------------------------------------------------
Brookline Bancorp, Inc. 5,760 88,358
- ----------------------------------------------------------------
Bryn Mawr Bank Corp. 200 4,898
- ----------------------------------------------------------------
C&F Financial Corp. 200 7,940
- ----------------------------------------------------------------
Camco Financial Corp. 1,000 17,330
- ----------------------------------------------------------------
Camden National Corp. 600 18,216
- ----------------------------------------------------------------
Capital City Bank Group, Inc. 825 37,942
- ----------------------------------------------------------------
Capital Corp of the West 200 7,928
- ----------------------------------------------------------------
Capital Crossing Bank 1 200 9,468
- ----------------------------------------------------------------
Capitol Bancorp Ltd. 1,200 34,080
- ----------------------------------------------------------------
Cascade Bancorp 700 13,482
- ----------------------------------------------------------------
CB Bancshares, Inc. 1,415 89,110
- ----------------------------------------------------------------
Chemical Financial Corp. 105 3,821
- ----------------------------------------------------------------
Chester Valley Bancorp, Inc. 105 2,432
- ----------------------------------------------------------------
Citizens First Bancorp, Inc. 1,500 34,200
- ----------------------------------------------------------------
City Holding Co. 2,500 87,500
- ----------------------------------------------------------------
CNB Financial Corp. 100 4,208
- ----------------------------------------------------------------
CNB Florida Bancshares, Inc. 300 6,900
- ----------------------------------------------------------------
Coastal Bancorp, Inc. 100 4,111
- ----------------------------------------------------------------
Columbia Bancorp, Eastern US 400 12,780
- ----------------------------------------------------------------
Columbia Banking System, Inc. 6,100 132,126
- ----------------------------------------------------------------
Commercial Bankshares, Inc. 125 4,195
- ----------------------------------------------------------------
Community Bank System, Inc. 3,800 186,200
- ----------------------------------------------------------------
Community First Bankshares, Inc. 7,200 208,368
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMERCIAL BANKS Continued
Community Trust Bancorp, Inc. 550 $ 16,610
- ----------------------------------------------------------------
Connecticut Bancshares, Inc. 1,400 72,156
- ----------------------------------------------------------------
CVB Financial Corp. 2,310 44,560
- ----------------------------------------------------------------
Dime Community Bancshares, Inc. 4,475 137,651
- ----------------------------------------------------------------
East West Bancorp, Inc. 3,800 203,984
- ----------------------------------------------------------------
Exchange National Bancshares, Inc. 300 10,845
- ----------------------------------------------------------------
Fidelity Bankshares, Inc. 4,216 132,382
- ----------------------------------------------------------------
First BanCorp, Puerto Rico 4,150 164,133
- ----------------------------------------------------------------
First Busey Corp. 200 5,400
- ----------------------------------------------------------------
First Citizens BancShares, Inc., Cl. A 500 60,765
- ----------------------------------------------------------------
First Community Bancshares, Inc. 1,610 53,388
- ----------------------------------------------------------------
First Defiance Financial Corp. 500 13,325
- ----------------------------------------------------------------
First Essex Bancorp, Inc. 500 29,070
- ----------------------------------------------------------------
First Federal Capital Corp. 2,700 60,804
- ----------------------------------------------------------------
First Federal Financial Corp.
of Kentucky 100 2,515
- ----------------------------------------------------------------
First Financial Corp. 800 24,008
- ----------------------------------------------------------------
First Financial Holdings, Inc. 2,100 65,646
- ----------------------------------------------------------------
First Indiana Corp. 475 8,906
- ----------------------------------------------------------------
First M&F Corp. 300 11,370
- ----------------------------------------------------------------
First Merchants Corp. 1,915 48,871
- ----------------------------------------------------------------
First National Corp. 200 6,002
- ----------------------------------------------------------------
First Niagara Financial Group, Inc. 2,028 30,237
- ----------------------------------------------------------------
First Oak Brook Bancshares, Inc. 300 9,003
- ----------------------------------------------------------------
First of Long Island Corp. (The) 100 4,300
- ----------------------------------------------------------------
First Place Financial Corp. 1,700 33,201
- ----------------------------------------------------------------
First Republic Bank 5,200 186,160
- ----------------------------------------------------------------
First SecurityFed Financial, Inc. 100 3,034
- ----------------------------------------------------------------
First Sentinel Bancorp, Inc. 1,900 40,014
- ----------------------------------------------------------------
First South Bancorp, Inc. 300 10,950
- ----------------------------------------------------------------
First United Corp. 100 2,437
- ----------------------------------------------------------------
Firstbank Corp. 210 6,544
- ----------------------------------------------------------------
FirstFed America Bancorp, Inc. 2,900 75,487
- ----------------------------------------------------------------
FirstFed Financial Corp. 1 3,900 169,650
- ----------------------------------------------------------------
Flagstar Bancorp, Inc. 6,750 144,585
- ----------------------------------------------------------------
Flushing Financial Corp. 3,075 56,211
- ----------------------------------------------------------------
FNB Corp., North Carolina 300 6,354
- ----------------------------------------------------------------
Foothill Independent Bancorp 200 4,732
- ----------------------------------------------------------------
Frontier Financial Corp. 500 16,580
- ----------------------------------------------------------------
Glacier Bancorp, Inc. 2,840 92,016
- ----------------------------------------------------------------
Hancock Holding Co. 400 21,828
- ----------------------------------------------------------------
Hanmi Financial Corp. 2,500 49,425
- ----------------------------------------------------------------
Harbor Florida Bancshares, Inc. 6,100 181,231
- ----------------------------------------------------------------
Harleysville National Corp. 2,025 60,953
- ----------------------------------------------------------------
Hawthorne Financial Corp. 1 2,550 71,349
10 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMERCIAL BANKS Continued
Heritage Commerce Corp. 1 100 $ 1,225
- ----------------------------------------------------------------
Heritage Financial Corp. 400 8,752
- ----------------------------------------------------------------
Home Federal Bancorp 1,300 36,634
- ----------------------------------------------------------------
Horizon Financial Corp. 200 3,502
- ----------------------------------------------------------------
Hudson River Bancorp, Inc. 100 3,903
- ----------------------------------------------------------------
Humboldt Bancorp 100 1,752
- ----------------------------------------------------------------
IBERIABANK Corp. 3,400 200,600
- ----------------------------------------------------------------
IBT Bancorp, Inc. 200 11,846
- ----------------------------------------------------------------
Independence Community Bank Corp. 600 21,582
- ----------------------------------------------------------------
Independent Bank Corp.,
Massachusetts 1,200 34,584
- ----------------------------------------------------------------
Independent Bank Corp., Michigan 2,543 72,119
- ----------------------------------------------------------------
Indymac Mortgage Holdings, Inc. 3,300 98,307
- ----------------------------------------------------------------
International Bancshares Corp. 1,331 62,757
- ----------------------------------------------------------------
Irwin Financial Corp. 5,100 160,140
- ----------------------------------------------------------------
ITLA Capital Corp. 1 3,200 160,320
- ----------------------------------------------------------------
LNB Bancorp, Inc. 400 8,120
- ----------------------------------------------------------------
Local Financial Corp. 1 2,500 52,100
- ----------------------------------------------------------------
Macatawa Bank Corp. 510 14,438
- ----------------------------------------------------------------
MAF Bancorp, Inc. 8,364 350,452
- ----------------------------------------------------------------
MainSource Financial Group, Inc. 210 6,441
- ----------------------------------------------------------------
MB Financial, Inc. 900 32,760
- ----------------------------------------------------------------
Middleburg Financial Corp. 200 8,000
- ----------------------------------------------------------------
MutualFirst Financial, Inc. 300 7,602
- ----------------------------------------------------------------
Nara Bancorp, Inc. 3,900 106,470
- ----------------------------------------------------------------
NASB Financial, Inc. 1,100 46,101
- ----------------------------------------------------------------
National Bankshares, Inc. 600 30,147
- ----------------------------------------------------------------
National Penn Bancshares, Inc. 25 803
- ----------------------------------------------------------------
NBT Bancorp, Inc. 3,500 75,040
- ----------------------------------------------------------------
Net.B@nk, Inc. 9,400 125,490
- ----------------------------------------------------------------
NewMil Bancorp, Inc. 100 2,905
- ----------------------------------------------------------------
Oak Hill Financial, Inc. 500 15,405
- ----------------------------------------------------------------
OceanFirst Financial Corp. 1,500 40,740
- ----------------------------------------------------------------
Old Second Bancorp, Inc. 458 22,671
- ----------------------------------------------------------------
Oneida Financial Corp. 100 2,211
- ----------------------------------------------------------------
Oriental Financial Group, Inc. 4,743 121,895
- ----------------------------------------------------------------
Pacific Capital Bancorp 6,833 251,591
- ----------------------------------------------------------------
Parkvale Financial Corp. 200 5,370
- ----------------------------------------------------------------
Patriot Bank Corp. 300 8,583
- ----------------------------------------------------------------
PennFed Financial Services, Inc. 600 20,100
- ----------------------------------------------------------------
PennRock Financial Services Corp. 720 22,378
- ----------------------------------------------------------------
Penns Woods Bancorp, Inc. 200 9,340
- ----------------------------------------------------------------
PFF Bancorp, Inc. 3,940 142,943
- ----------------------------------------------------------------
PrivateBancorp, Inc. 500 22,760
- ----------------------------------------------------------------
Progress Financial Corp. 315 9,715
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMERCIAL BANKS Continued
Prosperity Bancshares, Inc. 1,500 $ 33,780
- ----------------------------------------------------------------
Provident Bankshares Corp. 1,300 38,272
- ----------------------------------------------------------------
Provident Financial Holdings, Inc. 200 7,254
- ----------------------------------------------------------------
Provident Financial Services, Inc. 400 7,560
- ----------------------------------------------------------------
Quaker City Bancorp, Inc. 900 41,895
- ----------------------------------------------------------------
R&G Financial Corp., Cl. B 5,200 206,960
- ----------------------------------------------------------------
Redwood Empire Bancorp 1,250 33,219
- ----------------------------------------------------------------
Republic Bancorp, Inc. 2,234 30,138
- ----------------------------------------------------------------
Republic Bancorp, Inc., Cl. A 2,500 48,850
- ----------------------------------------------------------------
Republic Bancshares, Inc. 100 3,147
- ----------------------------------------------------------------
S&T Bancorp, Inc. 2,900 86,710
- ----------------------------------------------------------------
S.Y. Bancorp, Inc. 200 4,112
- ----------------------------------------------------------------
Sandy Spring Bancorp, Inc. 2,200 82,280
- ----------------------------------------------------------------
Seacoast Banking Corp. of Florida 1,930 33,505
- ----------------------------------------------------------------
Second Bancorp, Inc. 500 13,200
- ----------------------------------------------------------------
Simmons First National Corp. 400 11,160
- ----------------------------------------------------------------
Sky Financial Group, Inc. 200 5,188
- ----------------------------------------------------------------
Sound Federal Bancorp, Inc. 1,200 18,708
- ----------------------------------------------------------------
Southern Financial Bancorp, Inc. 1,243 53,536
- ----------------------------------------------------------------
Southwest Bancorp of Texas, Inc. 700 27,195
- ----------------------------------------------------------------
Southwest Bancorp, Inc. 2,900 51,852
- ----------------------------------------------------------------
State Bancorp, Inc. 2,102 50,995
- ----------------------------------------------------------------
State Financial Services Corp. 700 18,592
- ----------------------------------------------------------------
Sterling Bancorp, New York 4,400 125,400
- ----------------------------------------------------------------
Sterling Financial Corp. 6,370 218,045
- ----------------------------------------------------------------
Sterling Financial Corp., Eastern US 300 8,325
- ----------------------------------------------------------------
Sun Bancorp, Inc., New Jersey 2,120 55,968
- ----------------------------------------------------------------
Texas Capital Bancshares, Inc. 1 900 13,016
- ----------------------------------------------------------------
Troy Financial Corp. 595 20,825
- ----------------------------------------------------------------
Trust Co. of New Jersey (The) 600 23,808
- ----------------------------------------------------------------
U.S.B. Holding Co., Inc. 315 6,108
- ----------------------------------------------------------------
Union Bankshares Corp. 800 24,400
- ----------------------------------------------------------------
United Bankshares, Inc. 200 6,240
- ----------------------------------------------------------------
United Community Financial Corp. 500 5,705
- ----------------------------------------------------------------
United Security Bancshares, Inc.,
Southern US 200 5,790
- ----------------------------------------------------------------
Univest Corp. of Pennsylvania 300 12,720
- ----------------------------------------------------------------
Virginia Commerce Bancorp, Inc. 1 400 12,812
- ----------------------------------------------------------------
W. Holding Co., Inc. 3,366 62,641
- ----------------------------------------------------------------
Washington Trust Bancorp, Inc. 200 5,240
- ----------------------------------------------------------------
Waypoint Financial Corp. 3,710 80,470
- ----------------------------------------------------------------
West Coast Bancorp 100 2,134
- ----------------------------------------------------------------
Westcorp 2,000 73,100
- ----------------------------------------------------------------
Willow Grove Bancorp, Inc. 2,500 44,400
- ----------------------------------------------------------------
Wilshire State Bank 200 3,884
11 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMERCIAL BANKS Continued
WSFS Financial Corp. 2,700 $ 121,095
- ----------------------------------------------------------------
Yadkin Valley Bank & Trust Co. 300 5,130
-------------
8,180,340
- ----------------------------------------------------------------
CONSUMER FINANCE--0.3%
Education Lending Group, Inc. 1 5,000 66,950
- ----------------------------------------------------------------
First Marblehead Corp. (The) 1 6,300 137,844
- ----------------------------------------------------------------
Nelnet, Inc., Cl. A 1 3,500 78,400
- ----------------------------------------------------------------
Rewards Network, Inc. 1 700 7,462
-------------
290,656
- ----------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--2.6%
Ace Cash Express, Inc. 1 1,600 34,013
- ----------------------------------------------------------------
Affiliated Managers Group, Inc. 1 4,400 306,196
- ----------------------------------------------------------------
Cash America International, Inc. 12,600 266,868
- ----------------------------------------------------------------
Chicago Mercantile Exchange (The) 1,000 72,360
- ----------------------------------------------------------------
CompuCredit Corp. 1 12,200 259,616
- ----------------------------------------------------------------
Credit Acceptance Corp. 1 3,800 58,140
- ----------------------------------------------------------------
First Albany Cos., Inc. 2,500 35,100
- ----------------------------------------------------------------
First Cash Financial Services, Inc. 1 6,100 156,410
- ----------------------------------------------------------------
iShares Russell 2000 Index Fund 2,000 221,600
- ----------------------------------------------------------------
iShares S&P SmallCap 600 Index Fund 1,600 214,400
- ----------------------------------------------------------------
Knight Trading Group, Inc. 1 19,200 281,088
- ----------------------------------------------------------------
Marlin Business Services, Inc. 1 4,300 74,820
- ----------------------------------------------------------------
MCG Capital Corp. 400 7,800
- ----------------------------------------------------------------
Medallion Financial Corp. 400 3,796
- ----------------------------------------------------------------
Metris Cos., Inc. 1 17,200 76,368
- ----------------------------------------------------------------
Newtek Business Services, Inc. 1 3,200 22,208
- ----------------------------------------------------------------
Piper Jaffray Cos., Inc. 1 2,500 103,925
- ----------------------------------------------------------------
Sanders Morris Harris Group, Inc. 400 4,960
- ----------------------------------------------------------------
United PanAm Financial Corp. 1 500 8,355
- ----------------------------------------------------------------
WFS Financial, Inc. 1 1,400 59,444
- ----------------------------------------------------------------
World Acceptance Corp. 1 6,600 131,406
-------------
2,398,873
- ----------------------------------------------------------------
INSURANCE--2.9%
Alfa Corp. 4,600 59,156
- ----------------------------------------------------------------
Allmerica Financial Corp. 1 8,200 252,314
- ----------------------------------------------------------------
American Medical Security Group, Inc. 1 5,800 130,036
- ----------------------------------------------------------------
American Physicians Capital, Inc. 1 700 12,880
- ----------------------------------------------------------------
AmerUs Group Co. 6,100 213,317
- ----------------------------------------------------------------
Arch Capital Group Ltd. 1 4,700 187,342
- ----------------------------------------------------------------
Argonaut Group, Inc. 1 2,100 32,634
- ----------------------------------------------------------------
Aspen Insurance Holdings Ltd. 1 2,000 49,620
- ----------------------------------------------------------------
Baldwin & Lyons, Inc., Cl. B, Non-Vtg. 300 8,418
- ----------------------------------------------------------------
Ceres Group, Inc. 1 1,500 8,760
- ----------------------------------------------------------------
Citizens, Inc. 914 8,619
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
INSURANCE Continued
Crawford & Co., Cl. A, Non-Vtg. 700 $ 4,963
- ----------------------------------------------------------------
Delphi Financial Group, Inc., Cl. A 6,300 226,800
- ----------------------------------------------------------------
Direct General Corp. 1,200 39,720
- ----------------------------------------------------------------
Donegal Group, Inc., Cl. A 2,300 50,646
- ----------------------------------------------------------------
EMC Insurance Group, Inc. 100 2,114
- ----------------------------------------------------------------
Enstar Group, Inc. (The) 1 200 9,410
- ----------------------------------------------------------------
FBL Financial Group, Inc., Cl. A 2,700 69,660
- ----------------------------------------------------------------
Fidelity National Financial, Inc. 1,287 49,910
- ----------------------------------------------------------------
Financial Industries Corp. 200 2,820
- ----------------------------------------------------------------
Great American Financial
Resources, Inc. 1,400 22,708
- ----------------------------------------------------------------
Hub International Ltd. 400 6,704
- ----------------------------------------------------------------
Independence Holding Co. 300 7,176
- ----------------------------------------------------------------
IPC Holdings Ltd. 300 11,682
- ----------------------------------------------------------------
Kansas City Life Insurance Co. 100 4,620
- ----------------------------------------------------------------
LandAmerica Financial Group, Inc. 5,200 271,752
- ----------------------------------------------------------------
National Western Life
Insurance Co., Cl. A 1 400 61,940
- ----------------------------------------------------------------
Navigators Group, Inc. (The) 1 900 27,783
- ----------------------------------------------------------------
Ohio Casualty Corp. 1 6,100 105,896
- ----------------------------------------------------------------
Penn-America Group, Inc. 300 3,981
- ----------------------------------------------------------------
Phoenix Cos., Inc. (The) 11,600 139,664
- ----------------------------------------------------------------
PMA Capital Corp., Cl. A 4,800 24,576
- ----------------------------------------------------------------
Presidential Life Corp. 1,400 18,424
- ----------------------------------------------------------------
Reinsurance Group of America, Inc. 1,200 46,380
- ----------------------------------------------------------------
RLI Corp. 300 11,238
- ----------------------------------------------------------------
StanCorp Financial Group, Inc. 500 31,440
- ----------------------------------------------------------------
State Auto Financial Corp. 1,500 35,085
- ----------------------------------------------------------------
Stewart Information Services Corp. 6,700 271,685
- ----------------------------------------------------------------
Universal American Financial Corp. 1 10,100 100,091
-------------
2,621,964
- ----------------------------------------------------------------
REAL ESTATE--0.4%
Agree Realty Corp. 1,700 48,076
- ----------------------------------------------------------------
American Financial Realty Trust 2,900 49,445
- ----------------------------------------------------------------
Bluegreen Corp. 1 4,400 27,456
- ----------------------------------------------------------------
Capital Automotive REIT 300 9,600
- ----------------------------------------------------------------
Capital Trust, Cl. A 300 6,810
- ----------------------------------------------------------------
Chelsea Property Group, Inc. 200 10,962
- ----------------------------------------------------------------
Consolidated-Tomoka Land Co. 400 13,080
- ----------------------------------------------------------------
Correctional Properties Trust 200 5,760
- ----------------------------------------------------------------
Friedman, Billings, Ramsey Group,
Inc., Cl. A 200 4,616
- ----------------------------------------------------------------
Maguire Properties, Inc. 1,200 29,160
- ----------------------------------------------------------------
Orleans Homebuilders, Inc. 1 3,500 99,155
- ----------------------------------------------------------------
Pan Pacific Retail Properties, Inc. 200 9,530
12 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
REAL ESTATE Continued
Prentiss Properties Trust 200 $ 6,598
- ----------------------------------------------------------------
Ramco-Gershenson Properties Trust 400 11,320
- ----------------------------------------------------------------
Regency Centers Corp. 300 11,955
- ----------------------------------------------------------------
Tanger Factory Outlet Centers, Inc. 100 4,070
- ----------------------------------------------------------------
Trammell Crow Co. 1 2,600 34,450
-------------
382,043
- ----------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.9%
Accredited Home Lenders Holding Co. 1 1,000 30,600
- ----------------------------------------------------------------
American Home Mortgage
Investment Corp. 3,000 67,530
- ----------------------------------------------------------------
Bank Mutual Corp. 5,136 58,499
- ----------------------------------------------------------------
CharterMac 900 19,017
- ----------------------------------------------------------------
Federal Agricultural Mortgage
Corp., Non-Vtg. 1 1,400 44,744
- ----------------------------------------------------------------
Franklin Bank Corp. 1 2,000 38,000
- ----------------------------------------------------------------
Fremont General Corp. 16,600 280,706
- ----------------------------------------------------------------
New Century Financial Corp. 5,650 224,136
- ----------------------------------------------------------------
Ocwen Financial Corp. 1 1,700 15,062
- ----------------------------------------------------------------
Severn Bancorp, Inc. 300 9,585
-------------
787,879
- ----------------------------------------------------------------
HEALTH CARE--13.4%
- ----------------------------------------------------------------
BIOTECHNOLOGY--2.4%
Aclara Biosciences, Inc. 1 1,000 3,650
- ----------------------------------------------------------------
Adolor Corp. 1 10,300 206,206
- ----------------------------------------------------------------
Aphton Corp. 1 3,000 18,000
- ----------------------------------------------------------------
Array BioPharma, Inc. 1 1,600 9,104
- ----------------------------------------------------------------
Bentley Pharmaceuticals, Inc. 1 1,100 14,630
- ----------------------------------------------------------------
BioReliance Corp. 1 3,200 153,024
- ----------------------------------------------------------------
Caliper Technologies Corp. 1 2,100 13,818
- ----------------------------------------------------------------
Celsion Corp. 1 10,600 13,886
- ----------------------------------------------------------------
Cepheid, Inc. 1 10,100 96,758
- ----------------------------------------------------------------
Ciphergen Biosystems, Inc. 1 7,200 80,928
- ----------------------------------------------------------------
Cubist Pharmaceuticals, Inc. 1 8,200 99,712
- ----------------------------------------------------------------
Curis, Inc. 1 10,400 46,800
- ----------------------------------------------------------------
Digene Corp. 1 3,900 156,390
- ----------------------------------------------------------------
Diversa Corp. 1 4,600 42,550
- ----------------------------------------------------------------
Gen-Probe, Inc. 1 8,800 320,936
- ----------------------------------------------------------------
Genaera Corp. 1 35,000 114,450
- ----------------------------------------------------------------
Gene Logic, Inc. 1 2,700 14,013
- ----------------------------------------------------------------
Geron Corp. 1 7,400 73,778
- ----------------------------------------------------------------
ID Biomedical Corp. 1 800 9,488
- ----------------------------------------------------------------
Idexx Laboratories, Inc. 1 4,100 189,748
- ----------------------------------------------------------------
Immtech International, Inc. 1 200 2,208
- ----------------------------------------------------------------
ImmunoGen, Inc. 1 2,000 10,100
- ----------------------------------------------------------------
Luminex Corp. 1 1,800 16,884
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
BIOTECHNOLOGY Continued
Neose Technologies, Inc. 1 1,200 $ 11,040
- ----------------------------------------------------------------
Peregrine Pharmaceuticals, Inc. 1 16,400 36,244
- ----------------------------------------------------------------
QLT PhotoTherapeutics, Inc. 1 6,100 114,985
- ----------------------------------------------------------------
Regeneron Pharmaceuticals, Inc. 1 6,900 101,499
- ----------------------------------------------------------------
Repligen Corp. 1 6,700 29,279
- ----------------------------------------------------------------
Savient Pharmaceuticals, Inc. 1 24,900 114,789
- ----------------------------------------------------------------
Sirna Therapeutics, Inc. 1 600 3,120
- ----------------------------------------------------------------
Tanox, Inc. 1 1,200 17,820
- ----------------------------------------------------------------
Telik, Inc. 1 900 20,709
-------------
2,156,546
- ----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.4%
Abaxis, Inc. 1 3,800 68,856
- ----------------------------------------------------------------
Advanced Medical Optics, Inc. 1 6,500 127,725
- ----------------------------------------------------------------
Aksys Ltd. 1 1,300 11,479
- ----------------------------------------------------------------
Alaris Medical Systems, Inc. 1 9,800 149,058
- ----------------------------------------------------------------
Analogic Corp. 300 12,300
- ----------------------------------------------------------------
Arrow International, Inc. 2,300 57,454
- ----------------------------------------------------------------
ArthroCare Corp. 1 5,200 127,400
- ----------------------------------------------------------------
Bio-Rad Laboratories, Inc., Cl. A 1 1,900 109,573
- ----------------------------------------------------------------
Closure Medical Corp. 1 900 30,537
- ----------------------------------------------------------------
CNS, Inc. 3,200 43,840
- ----------------------------------------------------------------
Cooper Cos., Inc. (The) 6,200 292,206
- ----------------------------------------------------------------
Cyberonics, Inc. 1 2,000 64,020
- ----------------------------------------------------------------
Cytyc Corp. 1 1,500 20,640
- ----------------------------------------------------------------
Dade Behring Holdings, Inc. 1 2,800 100,072
- ----------------------------------------------------------------
Diagnostic Products Corp. 2,500 114,775
- ----------------------------------------------------------------
DJ Orthopedics, Inc. 1 800 21,440
- ----------------------------------------------------------------
E-Z-EM, Inc. 500 6,475
- ----------------------------------------------------------------
Encore Medical Corp. 1 6,500 52,975
- ----------------------------------------------------------------
EPIX Medical, Inc. 1 11,500 187,220
- ----------------------------------------------------------------
Exactech, Inc. 1 1,700 25,075
- ----------------------------------------------------------------
Haemonetics Corp. 1 4,200 100,338
- ----------------------------------------------------------------
HealthTronics Surgical Services, Inc. 1 5,700 35,625
- ----------------------------------------------------------------
I-Flow Corp. 1 1,100 15,301
- ----------------------------------------------------------------
I-STAT Corp. 1 3,000 45,900
- ----------------------------------------------------------------
Illumina, Inc. 1 7,500 52,875
- ----------------------------------------------------------------
Immucor, Inc. 1 2,150 43,839
- ----------------------------------------------------------------
Inamed Corp. 1 2,550 122,553
- ----------------------------------------------------------------
Interpore International, Inc. 1 3,200 41,600
- ----------------------------------------------------------------
IVAX Diagnostics, Inc. 1 300 1,455
- ----------------------------------------------------------------
Kensey Nash Corp. 1 6,600 153,450
- ----------------------------------------------------------------
Lifeline Systems, Inc. 1 3,000 57,000
- ----------------------------------------------------------------
Matthews International Corp., Cl. A 1,100 32,549
- ----------------------------------------------------------------
Medical Action Industries, Inc. 1 500 9,355
- ----------------------------------------------------------------
Meridian Bioscience, Inc. 3,600 37,548
13 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES Continued
Merit Medical Systems, Inc. 1 9,979 $ 222,133
- ----------------------------------------------------------------
Microtek Medical Holdings, Inc. 1 7,000 35,000
- ----------------------------------------------------------------
Mine Safety Applicances Co. 800 63,608
- ----------------------------------------------------------------
Nutraceutical International Corp. 1 3,600 39,672
- ----------------------------------------------------------------
PolyMedica Corp. 3,400 89,454
- ----------------------------------------------------------------
Possis Medical, Inc. 1 1,100 21,725
- ----------------------------------------------------------------
Quidel Corp. 1 3,300 35,706
- ----------------------------------------------------------------
Regeneration Technologies, Inc. 1 4,000 43,840
- ----------------------------------------------------------------
Respironics, Inc. 1 100 4,509
- ----------------------------------------------------------------
Sola International, Inc. 1 7,900 148,520
- ----------------------------------------------------------------
Spectranetics Corp. (The) 1 200 750
- ----------------------------------------------------------------
SurModics, Inc. 1 2,400 57,360
- ----------------------------------------------------------------
Sybron Dental Specialties, Inc. 1 8,500 238,850
- ----------------------------------------------------------------
Synovis Life Technologies, Inc. 1 6,100 124,074
- ----------------------------------------------------------------
Theragenics Corp. 1 1,500 8,205
- ----------------------------------------------------------------
Ventana Medical Systems, Inc. 1 1,800 70,920
- ----------------------------------------------------------------
Viasys Healthcare, Inc. 1 2,400 49,440
- ----------------------------------------------------------------
VISX, Inc. 1 1,700 39,355
- ----------------------------------------------------------------
Vital Images, Inc. 1 6,200 110,608
- ----------------------------------------------------------------
West Pharmaceutical Services, Inc. 400 13,560
- ----------------------------------------------------------------
Young Innovations, Inc. 3,850 138,600
-------------
3,928,397
- ----------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--4.7%
Advisory Board Co. (The) 1 3,600 125,676
- ----------------------------------------------------------------
American Healthways, Inc. 1 5,500 131,285
- ----------------------------------------------------------------
AMERIGROUP Corp. 1 4,100 174,865
- ----------------------------------------------------------------
Apria Healthcare Group, Inc. 1 3,700 105,339
- ----------------------------------------------------------------
Bio-Reference Laboratories, Inc. 1 8,000 104,800
- ----------------------------------------------------------------
Cantel Medical Corp. 1 700 11,333
- ----------------------------------------------------------------
Centene Corp. 1 2,950 82,630
- ----------------------------------------------------------------
CorVel Corp. 1 3,100 116,560
- ----------------------------------------------------------------
Covance, Inc. 1 3,200 85,760
- ----------------------------------------------------------------
Coventry Health Care, Inc. 1 600 38,694
- ----------------------------------------------------------------
Curative Health Services, Inc. 1 1,600 22,080
- ----------------------------------------------------------------
DaVita, Inc. 1 3,700 144,300
- ----------------------------------------------------------------
Dendrite International, Inc. 1 11,400 178,638
- ----------------------------------------------------------------
Eclipsys Corp. 1 11,300 131,532
- ----------------------------------------------------------------
Gentiva Health Services, Inc. 1 8,500 107,440
- ----------------------------------------------------------------
Hanger Orthopedic Group, Inc. 1 7,600 118,332
- ----------------------------------------------------------------
HealthExtras, Inc. 1 4,800 64,320
- ----------------------------------------------------------------
IDX Systems Corp. 1 4,900 131,418
- ----------------------------------------------------------------
Inveresk Research Group, Inc. 1 2,900 71,717
- ----------------------------------------------------------------
LabOne, Inc. 1 3,500 113,645
- ----------------------------------------------------------------
LCA-Vision, Inc. 1 7,000 148,190
- ----------------------------------------------------------------
Mid Atlantic Medical Services, Inc. 1 700 45,360
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Molina Healthcare, Inc. 1 1,100 $ 27,753
- ----------------------------------------------------------------
National HealthCare Corp. 1 500 9,950
- ----------------------------------------------------------------
Omnicell, Inc. 1 4,800 77,760
- ----------------------------------------------------------------
Option Care, Inc. 1 100 1,068
- ----------------------------------------------------------------
Owens & Minor, Inc. 5,100 111,741
- ----------------------------------------------------------------
Parexel International Corp. 1 4,300 69,918
- ----------------------------------------------------------------
PDI, Inc. 1 900 24,129
- ----------------------------------------------------------------
Pediatrix Medical Group, Inc. 1 4,200 231,378
- ----------------------------------------------------------------
Per-Se Technologies, Inc. 1 10,600 161,756
- ----------------------------------------------------------------
Prime Medical Services, Inc. 1 900 4,221
- ----------------------------------------------------------------
PSS World Medical, Inc. 1 13,800 166,566
- ----------------------------------------------------------------
Res-Care, Inc. 1 6,300 51,030
- ----------------------------------------------------------------
Select Medical Corp. 13,400 218,152
- ----------------------------------------------------------------
SFBC International, Inc. 1 2,300 61,088
- ----------------------------------------------------------------
Sunrise Senior Living, Inc. 1 5,300 205,322
- ----------------------------------------------------------------
U.S. Physical Therapy, Inc. 1 2,900 45,617
- ----------------------------------------------------------------
United Surgical Partners
International, Inc. 1 3,900 130,572
- ----------------------------------------------------------------
US Oncology, Inc. 1 21,400 230,264
- ----------------------------------------------------------------
VCA Antech, Inc. 1 3,500 108,430
- ----------------------------------------------------------------
Ventiv Health, Inc. 1 900 8,235
- ----------------------------------------------------------------
VitalWorks, Inc. 1 4,200 18,564
-------------
4,217,428
- ----------------------------------------------------------------
PHARMACEUTICALS--1.9%
Able Laboratories, Inc. 1 500 9,035
- ----------------------------------------------------------------
American Pharmaceutical
Partners, Inc. 1 4,450 149,520
- ----------------------------------------------------------------
Angiotech Pharmaceuticals, Inc. 1 1,500 69,000
- ----------------------------------------------------------------
AtheroGenics, Inc. 1 5,300 79,235
- ----------------------------------------------------------------
Bradley Pharmaceuticals, Inc. 1 9,100 231,413
- ----------------------------------------------------------------
Caraco Pharmaceutical
Laboratories Ltd. 1 2,300 17,204
- ----------------------------------------------------------------
CollaGenex Pharmaceuticals, Inc. 1 4,100 45,961
- ----------------------------------------------------------------
DepoMed, Inc. 1 18,600 131,874
- ----------------------------------------------------------------
Encysive Pharmaceuticals, Inc. 1 3,400 30,430
- ----------------------------------------------------------------
Endo Pharmaceuticals Holdings, Inc. 1 2,000 38,520
- ----------------------------------------------------------------
Hi-Tech Pharmacal Co., Inc. 1 2,400 56,400
- ----------------------------------------------------------------
Hollis-Eden Pharmaceuticals, Inc. 1 500 5,505
- ----------------------------------------------------------------
InKine Pharmaceutical Co., Inc. 1 2,800 13,524
- ----------------------------------------------------------------
Kos Pharmaceuticals, Inc. 1 5,800 249,632
- ----------------------------------------------------------------
Lannett Co., Inc. 1 5,700 95,817
- ----------------------------------------------------------------
Nabi Biopharmaceuticals 1 9,900 125,829
- ----------------------------------------------------------------
NexMed, Inc. 1 2,200 8,778
- ----------------------------------------------------------------
Orphan Medical, Inc. 1 100 1,025
- ----------------------------------------------------------------
Perrigo Co. 7,900 124,188
14 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
PHARMACEUTICALS Continued
PRAECIS Pharmaceuticals, Inc. 1 5,300 $ 34,132
- ----------------------------------------------------------------
Salix Pharmaceuticals Ltd. 1 6,400 145,088
- ----------------------------------------------------------------
SciClone Pharmaceuticals, Inc. 1 11,700 79,326
- ----------------------------------------------------------------
Virbac Corp. 1,2 100 520
-------------
1,741,956
- ----------------------------------------------------------------
INDUSTRIALS--15.0%
- ----------------------------------------------------------------
AEROSPACE & DEFENSE--1.4%
AAR Corp. 1 12,300 183,885
- ----------------------------------------------------------------
Applied Signal Technology, Inc. 6,900 158,769
- ----------------------------------------------------------------
Aviall, Inc. 1 1,800 27,918
- ----------------------------------------------------------------
Ducommun, Inc. 1 1,100 24,585
- ----------------------------------------------------------------
Engineered Support Systems, Inc. 2,950 162,427
- ----------------------------------------------------------------
ESCO Technologies, Inc. 1 400 17,460
- ----------------------------------------------------------------
HEICO Corp. 300 5,460
- ----------------------------------------------------------------
Herley Industries, Inc. 1 2,300 47,610
- ----------------------------------------------------------------
KVH Industries, Inc. 1 4,700 129,109
- ----------------------------------------------------------------
Moog, Inc., Cl. A 1 4,900 242,060
- ----------------------------------------------------------------
MTC Technologies, Inc. 1 2,000 64,440
- ----------------------------------------------------------------
Precision Castparts Corp. 900 40,869
- ----------------------------------------------------------------
Sequa Corp., Cl A 1 100 4,900
- ----------------------------------------------------------------
Teledyne Technologies, Inc. 1 5,200 98,020
- ----------------------------------------------------------------
United Defense Industries, Inc. 1 2,900 92,452
-------------
1,299,964
- ----------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.2%
ABX Air, Inc. 1 32,000 137,600
- ----------------------------------------------------------------
Forward Air Corp. 1 400 11,000
-------------
148,600
- ----------------------------------------------------------------
AIRLINES--1.2%
AirTran Holdings, Inc. 1 2,100 24,990
- ----------------------------------------------------------------
Alaska Air Group, Inc. 1 4,700 128,263
- ----------------------------------------------------------------
America West Holdings Corp., Cl. B 1 9,100 112,840
- ----------------------------------------------------------------
Continental Airlines, Inc., Cl. B 1 2,100 34,167
- ----------------------------------------------------------------
ExpressJet Holdings, Inc. 1 10,700 160,500
- ----------------------------------------------------------------
Frontier Airlines, Inc. 1 9,700 138,322
- ----------------------------------------------------------------
Mair Holdings, Inc. 1 200 1,456
- ----------------------------------------------------------------
Mesa Air Group, Inc. 1 15,300 191,556
- ----------------------------------------------------------------
Northwest Airlines Corp., Cl. A 1 19,200 242,304
- ----------------------------------------------------------------
SkyWest, Inc. 800 14,496
-------------
1,048,894
- ----------------------------------------------------------------
BUILDING PRODUCTS--0.6%
Aaon, Inc. 1 2,150 41,732
- ----------------------------------------------------------------
Griffon Corp. 1 1,170 23,704
- ----------------------------------------------------------------
Jacuzzi Brands, Inc. 1 28,000 198,520
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
BUILDING PRODUCTS Continued
Simpson Manufacturing Co., Inc. 1 4,400 $ 223,784
- ----------------------------------------------------------------
Universal Forest Products, Inc. 1,800 57,924
- ----------------------------------------------------------------
USG Corp. 1 1,700 28,169
- ----------------------------------------------------------------
Watsco, Inc. 600 13,638
-------------
587,471
- ----------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--4.4%
Administaff, Inc. 1 9,100 158,158
- ----------------------------------------------------------------
Angelica Corp. 2,000 44,000
- ----------------------------------------------------------------
Arbitron, Inc. 1 1,400 58,408
- ----------------------------------------------------------------
Banta Corp. 5,700 230,850
- ----------------------------------------------------------------
Bowne & Co., Inc. 1,300 17,628
- ----------------------------------------------------------------
Bright Horizons Family
Solutions, Inc. 1 3,500 147,000
- ----------------------------------------------------------------
CDI Corp. 2,200 72,050
- ----------------------------------------------------------------
Charles River Associates, Inc. 1 2,300 73,577
- ----------------------------------------------------------------
Concorde Career Colleges, Inc. 1 1,900 47,443
- ----------------------------------------------------------------
Consolidated Graphics, Inc. 1 2,900 91,582
- ----------------------------------------------------------------
Cornell Corrections, Inc. 1 800 10,920
- ----------------------------------------------------------------
CPI Corp. 2,200 44,462
- ----------------------------------------------------------------
Darling International, Inc. 1 38,700 106,812
- ----------------------------------------------------------------
Duratek, Inc. 1 900 11,736
- ----------------------------------------------------------------
Electro Rent Corp. 1 100 1,334
- ----------------------------------------------------------------
Ennis Business Forms, Inc. 4,100 62,730
- ----------------------------------------------------------------
Exponent, Inc. 1 4,200 89,880
- ----------------------------------------------------------------
Exult, Inc. 1 17,500 124,600
- ----------------------------------------------------------------
General Binding Corp. 1 1,200 21,600
- ----------------------------------------------------------------
Gevity HR, Inc. 7,700 171,248
- ----------------------------------------------------------------
Gundle/SLT Environmental, Inc. 1 3,300 68,508
- ----------------------------------------------------------------
Harland (John H.) Co. 700 19,110
- ----------------------------------------------------------------
Heidrick & Struggles
International, Inc. 1 3,400 74,120
- ----------------------------------------------------------------
ICT Group, Inc. 1 900 10,575
- ----------------------------------------------------------------
Imagistics International, Inc. 1 6,800 255,000
- ----------------------------------------------------------------
Interpool, Inc. 2,100 29,925
- ----------------------------------------------------------------
ITT Educational Services, Inc. 1 400 18,788
- ----------------------------------------------------------------
Korn-Ferry International 1 4,300 57,362
- ----------------------------------------------------------------
Labor Ready, Inc. 1 100 1,310
- ----------------------------------------------------------------
Layne Christensen Co. 1 200 2,350
- ----------------------------------------------------------------
LECG Corp. 1 2,500 57,225
- ----------------------------------------------------------------
Mail-Well, Inc. 1 1,300 5,993
- ----------------------------------------------------------------
McGrath Rentcorp 500 13,625
- ----------------------------------------------------------------
MemberWorks, Inc. 1 600 16,302
- ----------------------------------------------------------------
Navigant Consulting, Inc. 1 11,200 211,232
- ----------------------------------------------------------------
NCO Group, Inc. 1 7,600 173,052
- ----------------------------------------------------------------
New England Business Service, Inc. 2,400 70,800
- ----------------------------------------------------------------
Pico Holdings, Inc. 1 700 10,969
- ----------------------------------------------------------------
Princeton Review, Inc. (The) 1 600 5,850
15 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
Right Management Consultants, Inc. 1 3,175 $ 59,246
- ----------------------------------------------------------------
Rollins, Inc. 8,700 196,185
- ----------------------------------------------------------------
Schawk, Inc. 700 9,541
- ----------------------------------------------------------------
School Specialty, Inc. 1 6,300 214,263
- ----------------------------------------------------------------
Sotheby's Holdings, Inc., Cl. A 1 10,900 148,894
- ----------------------------------------------------------------
Spherion Corp. 1 4,200 41,118
- ----------------------------------------------------------------
Strayer Education, Inc. 800 87,064
- ----------------------------------------------------------------
Tetra Tech, Inc. 1 7,900 196,394
- ----------------------------------------------------------------
United Rentals, Inc. 1 1,400 26,964
- ----------------------------------------------------------------
United Stationers, Inc. 1 2,700 110,484
- ----------------------------------------------------------------
University of Phoenix Online 1 1,600 110,288
- ----------------------------------------------------------------
Wackenhut Corrections Corp. 1 2,000 45,600
- ----------------------------------------------------------------
Watson Wyatt & Co. Holdings 1 2,800 67,620
-------------
4,001,775
- ----------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.9%
Comfort Systems USA, Inc. 1 5,000 27,400
- ----------------------------------------------------------------
Dycom Industries, Inc. 1 7,600 203,832
- ----------------------------------------------------------------
Integrated Electrical Services, Inc. 1 14,600 135,050
- ----------------------------------------------------------------
MasTec, Inc. 1 9,500 140,695
- ----------------------------------------------------------------
Perini Corp. 1 3,600 32,940
- ----------------------------------------------------------------
URS Corp. 1 7,900 197,579
- ----------------------------------------------------------------
Washington Group International, Inc. 1 1,400 47,558
-------------
785,054
- ----------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.8%
Acuity Brands, Inc. 9,700 250,260
- ----------------------------------------------------------------
Franklin Electric Co., Inc. 1,300 78,637
- ----------------------------------------------------------------
General Cable Corp. 1 2,300 18,745
- ----------------------------------------------------------------
Genlyte Group, Inc. (The) 1 1,800 105,084
- ----------------------------------------------------------------
II-VI, Inc. 1 7,100 183,180
- ----------------------------------------------------------------
LSI Industries, Inc. 375 5,063
- ----------------------------------------------------------------
Ultralife Batteries, Inc. 1 2,700 33,426
- ----------------------------------------------------------------
Vicor Corp. 1 900 10,269
-------------
684,664
- ----------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.3%
Raven Industries, Inc. 1,700 50,150
- ----------------------------------------------------------------
Standex International Corp. 1,400 39,200
- ----------------------------------------------------------------
United Capital Corp. 500 10,360
- ----------------------------------------------------------------
United Industrial Corp. 3,300 59,565
- ----------------------------------------------------------------
Walter Industries, Inc. 6,400 85,440
-------------
244,715
- ----------------------------------------------------------------
MACHINERY--3.3%
A.S.V., Inc. 1 2,100 78,456
- ----------------------------------------------------------------
Actuant Corp., Cl. A 1 1,100 39,820
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
MACHINERY Continued
Alamo Group, Inc. 500 $ 7,630
- ----------------------------------------------------------------
Albany International Corp., Cl. A 7,300 247,470
- ----------------------------------------------------------------
Ampco-Pittsburgh Corp. 1,400 19,138
- ----------------------------------------------------------------
BHA Group, Inc., Cl. A 1,100 27,665
- ----------------------------------------------------------------
Briggs & Stratton Corp. 5,100 343,740
- ----------------------------------------------------------------
Cascade Corp. 5,800 129,340
- ----------------------------------------------------------------
Ceradyne, Inc. 1 4,500 153,270
- ----------------------------------------------------------------
Chicago Bridge & Iron Co. NV 6,400 184,960
- ----------------------------------------------------------------
CIRCOR International, Inc. 700 16,870
- ----------------------------------------------------------------
Clarcor, Inc. 1,000 44,100
- ----------------------------------------------------------------
Cuno, Inc. 1 1,000 45,030
- ----------------------------------------------------------------
Dionex Corp. 1 3,900 179,478
- ----------------------------------------------------------------
Encore Wire Corp. 1 900 15,939
- ----------------------------------------------------------------
EnPro Industries, Inc. 1 3,700 51,615
- ----------------------------------------------------------------
Flanders Corp. 1 3,000 19,740
- ----------------------------------------------------------------
Greenbrier Cos., Inc. 1 600 10,050
- ----------------------------------------------------------------
Joy Global, Inc. 1 2,800 73,220
- ----------------------------------------------------------------
Kadant, Inc. 1 4,400 95,260
- ----------------------------------------------------------------
Middleby Corp. (The) 5,400 218,538
- ----------------------------------------------------------------
NACCO Industries, Inc., Cl. A 500 44,740
- ----------------------------------------------------------------
Oshkosh Truck Corp. 3,300 168,399
- ----------------------------------------------------------------
Pall Corp. 400 10,732
- ----------------------------------------------------------------
Penn Engineering &
Manufacturing Corp. 500 9,515
- ----------------------------------------------------------------
Thomas Industries, Inc. 600 20,796
- ----------------------------------------------------------------
Toro Co. (The) 6,000 278,400
- ----------------------------------------------------------------
Trinity Industries, Inc. 5,400 166,536
- ----------------------------------------------------------------
Wabash National Corp. 1 7,300 213,890
- ----------------------------------------------------------------
Wabtec Corp. 4,500 76,680
-------------
2,991,017
- ----------------------------------------------------------------
MARINE--0.3%
Alexander & Baldwin, Inc. 5,700 192,033
- ----------------------------------------------------------------
UTI Worldwide, Inc. 2,300 87,239
-------------
279,272
- ----------------------------------------------------------------
ROAD & RAIL--1.4%
Arkansas Best Corp. 1,300 40,807
- ----------------------------------------------------------------
Central Freight Lines, Inc. 1 2,500 44,375
- ----------------------------------------------------------------
Covenant Transport, Inc., Cl. A 1 1,300 24,713
- ----------------------------------------------------------------
Florida East Coast
Industries, Inc., Cl. A 1,600 52,960
- ----------------------------------------------------------------
Genesee & Wyoming, Inc., Cl. A 1 3,800 119,700
- ----------------------------------------------------------------
Heartland Express, Inc. 2,600 62,894
- ----------------------------------------------------------------
Hunt (J.B.) Transport Services, Inc. 1 3,200 86,432
- ----------------------------------------------------------------
Knight Transportation, Inc. 1 925 23,726
- ----------------------------------------------------------------
Landstar System, Inc. 1 6,200 235,848
16 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
ROAD & RAIL Continued
Marten Transport Ltd. 1 150 $ 2,307
- ----------------------------------------------------------------
Mullen Transportation, Inc. 1,300 39,737
- ----------------------------------------------------------------
Old Dominion Freight Line, Inc. 1 1,150 39,192
- ----------------------------------------------------------------
Overnite Corp. 1 4,900 111,475
- ----------------------------------------------------------------
Pacer International, Inc. 1 7,800 157,716
- ----------------------------------------------------------------
Quality Distribution, Inc. 1 2,000 39,100
- ----------------------------------------------------------------
Ryder Systems, Inc. 1,100 37,565
- ----------------------------------------------------------------
SCS Transportation, Inc. 1 6,900 121,302
- ----------------------------------------------------------------
U.S. Xpress Enterprises, Inc., Cl. A 1 1,300 15,925
- ----------------------------------------------------------------
USF Corp. 400 13,676
-------------
1,269,450
- ----------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.2%
Aceto Corp. 200 5,108
- ----------------------------------------------------------------
Applied Industrial Technologies, Inc. 5,400 128,844
- ----------------------------------------------------------------
Lawson Products, Inc. 200 6,636
- ----------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl. A 3,100 85,250
-------------
225,838
- ----------------------------------------------------------------
INFORMATION TECHNOLOGY--21.3%
- ----------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.0%
Aspect Communications Corp. 1 13,800 217,488
- ----------------------------------------------------------------
Audiovox Corp., Cl. A 1 2,500 32,100
- ----------------------------------------------------------------
C-COR.net Corp. 1 12,300 136,899
- ----------------------------------------------------------------
Computer Network Technology Corp. 1 7,500 71,550
- ----------------------------------------------------------------
Comtech Telecommunications Corp. 1 7,750 223,743
- ----------------------------------------------------------------
CyberGuard Corp. 1 6,800 59,296
- ----------------------------------------------------------------
Digi International, Inc. 1 4,800 46,080
- ----------------------------------------------------------------
Ditech Communications Corp. 1 5,800 110,780
- ----------------------------------------------------------------
Enterasys Networks, Inc. 1 5,900 22,125
- ----------------------------------------------------------------
F5 Networks, Inc. 1 700 17,570
- ----------------------------------------------------------------
FalconStor Software, Inc. 1 4,000 34,960
- ----------------------------------------------------------------
Foundry Networks, Inc. 1 1,500 41,040
- ----------------------------------------------------------------
Glenayre Technologies, Inc. 1 7,700 20,713
- ----------------------------------------------------------------
Harmonic, Inc. 1 24,200 175,450
- ----------------------------------------------------------------
McDATA Corp., Cl. A 1 2,200 20,966
- ----------------------------------------------------------------
McDATA Corp., Cl. B 1 2,800 26,684
- ----------------------------------------------------------------
Network Equipment Technologies, Inc. 1 1,400 15,400
- ----------------------------------------------------------------
New Focus, Inc. 1 7,600 38,152
- ----------------------------------------------------------------
NICE Systems Ltd., Sponsored ADR 1 800 20,280
- ----------------------------------------------------------------
Packeteer, Inc. 1 12,500 212,250
- ----------------------------------------------------------------
Performance Technologies, Inc. 1 5,300 75,525
- ----------------------------------------------------------------
Plantronics, Inc. 1 4,600 150,190
- ----------------------------------------------------------------
Powerwave Technologies, Inc. 1 17,900 136,935
- ----------------------------------------------------------------
Proxim Corp., Cl. A 1 22,500 37,575
- ----------------------------------------------------------------
SeaChange International, Inc. 1 9,700 149,380
- ----------------------------------------------------------------
SpectraLink Corp. 8,500 162,945
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
COMMUNICATIONS EQUIPMENT Continued
Symmetricom, Inc. 1 8,100 $ 58,968
- ----------------------------------------------------------------
Terayon Communication Systems, Inc. 1 6,500 29,250
- ----------------------------------------------------------------
Verso Technologies, Inc. 1 39,600 126,720
- ----------------------------------------------------------------
Westell Technologies, Inc., Cl. A 1 22,700 143,237
- ----------------------------------------------------------------
Zhone Technologies, Inc. 1 11,500 56,810
-------------
2,671,061
- ----------------------------------------------------------------
COMPUTERS & PERIPHERALS--1.6%
Advanced Digital Information Corp. 1 10,500 147,000
- ----------------------------------------------------------------
Avid Technology, Inc. 1 2,600 124,800
- ----------------------------------------------------------------
Hutchinson Technology, Inc. 1 7,700 236,698
- ----------------------------------------------------------------
Immersion Corp. 1 800 4,760
- ----------------------------------------------------------------
InFocus Corp. 1 11,200 108,416
- ----------------------------------------------------------------
Maxtor Corp. 1 4,300 47,730
- ----------------------------------------------------------------
Neoware Systems, Inc. 1 2,600 35,620
- ----------------------------------------------------------------
Network Engines, Inc. 1 6,500 28,340
- ----------------------------------------------------------------
Overland Storage, Inc. 1 2,200 41,360
- ----------------------------------------------------------------
Presstek, Inc. 1 5,900 42,893
- ----------------------------------------------------------------
Quantum Corp. 1 23,200 72,384
- ----------------------------------------------------------------
Rainbow Technologies, Inc. 1 9,400 105,844
- ----------------------------------------------------------------
SimpleTech, Inc. 1 12,800 76,928
- ----------------------------------------------------------------
Storage Technology Corp. 1 1,000 25,750
- ----------------------------------------------------------------
Stratasys, Inc. 1 5,800 158,108
- ----------------------------------------------------------------
Synaptics, Inc. 1 300 4,494
- ----------------------------------------------------------------
Western Digital Corp. 1 13,000 153,270
- ----------------------------------------------------------------
Xybernaut Corp. 1 26,200 41,134
-------------
1,455,529
- ----------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--3.2%
Agilysys, Inc. 10,800 120,420
- ----------------------------------------------------------------
Brightpoint, Inc. 1 6,350 109,538
- ----------------------------------------------------------------
CellStar Corp. 1 8,900 112,407
- ----------------------------------------------------------------
Checkpoint Systems, Inc. 1 10,900 206,119
- ----------------------------------------------------------------
Cognex Corp. 8,600 242,864
- ----------------------------------------------------------------
Daktronics, Inc. 1 4,500 113,220
- ----------------------------------------------------------------
Digital Theater Systems, Inc. 1 3,500 86,415
- ----------------------------------------------------------------
Excel Technology, Inc. 1 1,700 55,862
- ----------------------------------------------------------------
Fargo Electronics, Inc. 1 600 7,632
- ----------------------------------------------------------------
FARO Technologies, Inc. 1 2,000 49,960
- ----------------------------------------------------------------
GTSI Corp. 1 1,000 13,851
- ----------------------------------------------------------------
Hypercom Corp. 1 6,700 31,892
- ----------------------------------------------------------------
Innovex, Inc. 1 6,400 53,952
- ----------------------------------------------------------------
Kemet Corp. 1 1,200 16,428
- ----------------------------------------------------------------
Komag, Inc. 1 1,800 26,334
- ----------------------------------------------------------------
Landauer, Inc. 1,000 40,780
- ----------------------------------------------------------------
LeCroy Corp. 1 100 1,801
17 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS Continued
Maxwell Technologies, Inc. 1 200 $ 1,420
- ----------------------------------------------------------------
Measurement Specialties, Inc. 1,2 2,400 49,032
- ----------------------------------------------------------------
Methode Electronics, Inc., Cl. A 3,600 44,028
- ----------------------------------------------------------------
MTS Systems Corp. 7,600 146,148
- ----------------------------------------------------------------
Park Electrochemical Corp. 2,900 76,821
- ----------------------------------------------------------------
Pemstar, Inc. 1 3,800 12,502
- ----------------------------------------------------------------
Planar Systems, Inc. 1 4,900 119,168
- ----------------------------------------------------------------
RadiSys Corp. 1 5,600 94,416
- ----------------------------------------------------------------
Rofin-Sinar Technologies, Inc. 1 6,700 231,552
- ----------------------------------------------------------------
ScanSource, Inc. 1 2,800 127,736
- ----------------------------------------------------------------
Superconductor Technologies, Inc. 1 17,500 97,650
- ----------------------------------------------------------------
Sypris Solutions, Inc. 300 5,043
- ----------------------------------------------------------------
Trimble Navigation Ltd. 1 3,000 111,720
- ----------------------------------------------------------------
UNOVA, Inc. 1 6,700 153,765
- ----------------------------------------------------------------
Varian, Inc. 1 1,900 79,287
- ----------------------------------------------------------------
Veeco Instruments, Inc. 1 6,800 191,760
- ----------------------------------------------------------------
WJ Communications, Inc. 1 600 3,071
- ----------------------------------------------------------------
Woodhead Industries, Inc. 1,200 20,280
- ----------------------------------------------------------------
X-Rite, Inc. 1,100 12,452
- ----------------------------------------------------------------
Zomax, Inc. 1 3,300 16,467
-------------
2,883,793
- ----------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--4.2%
24/7 Media, Inc. 1 27,000 36,180
- ----------------------------------------------------------------
Akamai Technologies, Inc. 1 12,900 138,675
- ----------------------------------------------------------------
BroadVision, Inc. 1 2,900 12,354
- ----------------------------------------------------------------
Corillian Corp. 1 27,300 172,263
- ----------------------------------------------------------------
CyberSource Corp. 1 7,200 37,152
- ----------------------------------------------------------------
Digital Insight Corp. 1 8,100 201,690
- ----------------------------------------------------------------
Digital River, Inc. 1 3,600 79,560
- ----------------------------------------------------------------
Digitas, Inc. 1 20,641 192,374
- ----------------------------------------------------------------
EarthLink, Inc. 1 22,000 220,000
- ----------------------------------------------------------------
eCollege.com, Inc. 1 900 16,614
- ----------------------------------------------------------------
Embarcadero Technologies, Inc. 1 8,400 133,980
- ----------------------------------------------------------------
FindWhat.com 1 3,200 60,000
- ----------------------------------------------------------------
HomeStore.com, Inc. 1 24,200 114,466
- ----------------------------------------------------------------
InfoSpace, Inc. 1 1,900 43,795
- ----------------------------------------------------------------
Internap Network Services Corp. 1 67,700 165,865
- ----------------------------------------------------------------
Interwoven, Inc. 1 3,414 43,153
- ----------------------------------------------------------------
ITXC Corp. 1 900 3,888
- ----------------------------------------------------------------
Ivillage, Inc. 1 3,100 11,098
- ----------------------------------------------------------------
j2 Global Communications, Inc. 1 1,900 47,063
- ----------------------------------------------------------------
Lionbridge Technologies, Inc. 1 9,100 87,451
- ----------------------------------------------------------------
LookSmart Ltd. 1 34,500 53,475
- ----------------------------------------------------------------
MatrixOne, Inc. 1 8,300 51,128
- ----------------------------------------------------------------
National Information Consortium, Inc. 1 12,000 96,360
- ----------------------------------------------------------------
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
INTERNET SOFTWARE & SERVICES Continued
Netegrity, Inc. 1 15,400 $ 158,774
- ----------------------------------------------------------------
On2 Technologies, Inc. 1 25,800 33,798
- ----------------------------------------------------------------
Open Text Corp. 1 6,800 130,356
- ----------------------------------------------------------------
RADWARE Ltd. 1 4,000 109,000
- ----------------------------------------------------------------
Raindance Communications, Inc. 1 8,800 24,200
- ----------------------------------------------------------------
Retek, Inc. 1 6,000 55,680
- ----------------------------------------------------------------
S1 Corp. 1 15,000 120,750
- ----------------------------------------------------------------
Secure Computing Corp. 1 14,000 250,740
- ----------------------------------------------------------------
SeeBeyond Technology Corp. 1 18,000 77,220
- ----------------------------------------------------------------
Selectica, Inc. 1 4,300 18,404
- ----------------------------------------------------------------
SonicWALL, Inc. 1 18,400 143,520
- ----------------------------------------------------------------
Stellent, Inc. 1 1,300 12,792
- ----------------------------------------------------------------
SupportSoft, Inc. 1 19,100 251,165
- ----------------------------------------------------------------
TheStreet.com, Inc. 1 700 2,884
- ----------------------------------------------------------------
United Online, Inc. 1 7,200 120,888
- ----------------------------------------------------------------
ValueClick, Inc. 1 2,500 22,700
- ----------------------------------------------------------------
Vastera, Inc. 1 2,300 9,200
- ----------------------------------------------------------------
Vitria Technology, Inc. 1 2,800 19,880
- ----------------------------------------------------------------
WatchGuard Technologies, Inc. 1 3,700 21,534
- ----------------------------------------------------------------
WebEx Communications, Inc. 1 7,200 144,720
-------------
3,746,789
- ----------------------------------------------------------------
IT SERVICES--1.7%
Acxiom Corp. 1 7,700 142,989
- ----------------------------------------------------------------
Anteon International Corp. 1 700 25,235
- ----------------------------------------------------------------
Aquantive, Inc. 1 9,500 97,375
- ----------------------------------------------------------------
CACI International, Inc., Cl. A 1 600 29,172
- ----------------------------------------------------------------
Computer Horizons Corp. 1 700 2,751
- ----------------------------------------------------------------
Convergys Corp. 1 300 5,238
- ----------------------------------------------------------------
Corio, Inc. 1 7,000 19,180
- ----------------------------------------------------------------
Euronet Worldwide, Inc. 1 3,100 55,800
- ----------------------------------------------------------------
Evolving Systems, Inc. 1 6,800 90,440
- ----------------------------------------------------------------
Forrester Research, Inc. 1 100 1,787
- ----------------------------------------------------------------
Gartner, Inc., Cl. B 1 5,800 63,104
- ----------------------------------------------------------------
Global Payments, Inc. 1,200 56,544
- ----------------------------------------------------------------
Information Resources, Inc. 1 3,500 6,300
- ----------------------------------------------------------------
infoUSA, Inc. 1 14,700 109,074
- ----------------------------------------------------------------
Intrado, Inc. 1 5,800 127,310
- ----------------------------------------------------------------
iPayment Holdings, Inc. 1 200 6,800
- ----------------------------------------------------------------
Lawson Software, Inc. 1 10,800 88,884
- ----------------------------------------------------------------
Lightbridge, Inc. 1 9,800 89,180
- ----------------------------------------------------------------
ManTech International Corp. 1 2,000 49,900
- ----------------------------------------------------------------
MAPICS, Inc. 1 200 2,618
- ----------------------------------------------------------------
QAD, Inc. 1 7,000 85,820
- ----------------------------------------------------------------
SM&A 1 6,500 76,050
- ----------------------------------------------------------------
SS&C Technologies, Inc. 7,500 209,625
18 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
IT SERVICES Continued
Startek, Inc. 800 $ 32,632
- ----------------------------------------------------------------
Sykes Enterprises, Inc. 1 1,200 10,272
- ----------------------------------------------------------------
Tyler Technologies, Inc. 1 7,900 76,077
-------------
1,560,157
- ----------------------------------------------------------------
OFFICE ELECTRONICS--0.3%
Gerber Scientific, Inc. 1 7,100 56,516
- ----------------------------------------------------------------
Metrologic Instruments, Inc. 1 9,400 253,800
-------------
310,316
- ----------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--3.2%
ADE Corp. 1 1,600 29,632
- ----------------------------------------------------------------
Advanced Energy Industries, Inc. 1 800 20,840
- ----------------------------------------------------------------
AMIS Holdings, Inc. 1 2,400 43,872
- ----------------------------------------------------------------
ANADIGICS, Inc. 1 12,800 76,288
- ----------------------------------------------------------------
Asyst Technologies, Inc. 1 3,700 64,195
- ----------------------------------------------------------------
August Technology Corp. 1 1,100 20,405
- ----------------------------------------------------------------
Axcelis Technologies, Inc. 1 6,300 64,386
- ----------------------------------------------------------------
Brooks Automation, Inc. 1 1,000 24,170
- ----------------------------------------------------------------
Cirrus Logic, Inc. 1 25,700 197,119
- ----------------------------------------------------------------
Credence Systems Corp. 1 11,300 148,708
- ----------------------------------------------------------------
Diodes, Inc. 1 5,550 105,450
- ----------------------------------------------------------------
DSP Group, Inc. 1 2,200 54,802
- ----------------------------------------------------------------
Helix Technology Corp. 2,500 51,450
- ----------------------------------------------------------------
Integrated Device Technology, Inc. 1 5,400 92,718
- ----------------------------------------------------------------
Integrated Silicon Solution, Inc. 1 6,200 97,154
- ----------------------------------------------------------------
Kulicke & Soffa Industries, Inc. 1 6,900 99,222
- ----------------------------------------------------------------
Micrel, Inc. 1 1,300 20,254
- ----------------------------------------------------------------
Microsemi Corp. 1 4,200 103,236
- ----------------------------------------------------------------
Mindspeed Technologies, Inc. 1 21,600 147,960
- ----------------------------------------------------------------
MKS Instruments, Inc. 1 1,064 30,856
- ----------------------------------------------------------------
NPTest Holding Corp. 1 6,800 75,072
- ----------------------------------------------------------------
NVE Corp. 1 2,400 123,120
- ----------------------------------------------------------------
O2Micro International Ltd. 1 300 6,720
- ----------------------------------------------------------------
OmniVision Technologies, Inc. 1 1,100 60,775
- ----------------------------------------------------------------
Photronics, Inc. 1 8,300 165,336
- ----------------------------------------------------------------
Power Integrations, Inc. 1 300 10,038
- ----------------------------------------------------------------
Rambus, Inc. 1 2,100 64,470
- ----------------------------------------------------------------
Sigmatel, Inc. 1 1,600 39,488
- ----------------------------------------------------------------
Siliconix, Inc. 1 400 18,280
- ----------------------------------------------------------------
Sipex Corp. 1 2,200 16,962
- ----------------------------------------------------------------
Supertex, Inc. 1 1,000 19,100
- ----------------------------------------------------------------
Tessera Technologies, Inc. 1 1,700 31,977
- ----------------------------------------------------------------
Transmeta Corp. 1 10,000 34,000
- ----------------------------------------------------------------
TranSwitch Corp. 1 43,300 99,590
- ----------------------------------------------------------------
Trident Microsystems, Inc. 1 6,000 104,520
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT Continued
TriQuint Semiconductor, Inc. 1 30,300 $ 214,221
- ----------------------------------------------------------------
Ultratech, Inc. 1 8,400 246,708
- ----------------------------------------------------------------
Vitesse Semiconductor Corp. 1 3,700 21,719
- ----------------------------------------------------------------
White Electronic Designs Corp. 1 1,800 15,840
-------------
2,860,653
- ----------------------------------------------------------------
SOFTWARE--4.1%
Altiris, Inc. 1 900 32,832
- ----------------------------------------------------------------
Ansoft Corp. 1 2,900 37,207
- ----------------------------------------------------------------
Ansys, Inc. 1 4,100 162,770
- ----------------------------------------------------------------
Ascential Software Corp. 1 10,300 267,079
- ----------------------------------------------------------------
Aspen Technology, Inc. 1 16,400 168,264
- ----------------------------------------------------------------
BindView Development Corp. 1 7,700 29,029
- ----------------------------------------------------------------
Bottomline Technologies, Inc. 1 700 6,300
- ----------------------------------------------------------------
Callidus Software, Inc. 1 500 8,845
- ----------------------------------------------------------------
Captaris, Inc. 1 5,600 31,472
- ----------------------------------------------------------------
CCC Information Services Group, Inc. 1 1,500 25,350
- ----------------------------------------------------------------
Cognos, Inc. 1 500 15,310
- ----------------------------------------------------------------
Concord Communications, Inc. 1 2,600 51,922
- ----------------------------------------------------------------
Convera Corp. 1 100 341
- ----------------------------------------------------------------
Datastream Systems, Inc. 1 2,400 18,840
- ----------------------------------------------------------------
Digimarc Corp. 1 2,300 30,590
- ----------------------------------------------------------------
Dynamics Research Corp. 1 500 8,065
- ----------------------------------------------------------------
E.piphany, Inc. 1 11,400 82,194
- ----------------------------------------------------------------
Epicor Software Corp. 1 15,900 202,884
- ----------------------------------------------------------------
ePlus, inc. 1 2,700 33,294
- ----------------------------------------------------------------
Group 1 Software, Inc. 1 3,500 61,670
- ----------------------------------------------------------------
Hyperion Solutions Corp. 1 900 27,126
- ----------------------------------------------------------------
Inet Technologies, Inc. 1 11,100 133,200
- ----------------------------------------------------------------
Informatica Corp. 1 6,800 70,040
- ----------------------------------------------------------------
InteliData Technologies Corp. 1 2,100 3,465
- ----------------------------------------------------------------
InterVoice-Brite, Inc. 1 15,500 183,985
- ----------------------------------------------------------------
JDA Software Group, Inc. 1 4,100 67,691
- ----------------------------------------------------------------
Kronos, Inc. 1 2,850 112,889
- ----------------------------------------------------------------
Macromedia, Inc. 1 1,300 23,192
- ----------------------------------------------------------------
Magma Design Automation, Inc. 1 400 9,336
- ----------------------------------------------------------------
Manugistics Group, Inc. 1 2,800 17,500
- ----------------------------------------------------------------
MapInfo Corp. 1 900 9,072
- ----------------------------------------------------------------
Midway Games, Inc. 1 13,200 51,216
- ----------------------------------------------------------------
Mobius Management Systems, Inc. 1 9,200 116,380
- ----------------------------------------------------------------
MRO Software, Inc. 1 200 2,692
- ----------------------------------------------------------------
MSC.Software Corp. 1 5,100 48,195
- ----------------------------------------------------------------
Nuance Communications, Inc. 1 6,700 51,188
- ----------------------------------------------------------------
Open Solutions, Inc. 1 2,000 35,140
- ----------------------------------------------------------------
OPNET Technologies, Inc. 1 1,000 16,460
- ----------------------------------------------------------------
Parametric Technology Corp. 1 20,200 79,588
19 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF INVESTMENTS Continued
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
SOFTWARE Continued
Pegasystems, Inc. 1 2,200 $ 18,964
- ----------------------------------------------------------------
Plumtree Software, Inc. 1 12,300 57,810
- ----------------------------------------------------------------
Progress Software Corp. 1 8,300 169,818
- ----------------------------------------------------------------
Pumatech, Inc. 1 3,500 13,930
- ----------------------------------------------------------------
QRS Corp. 1 700 5,684
- ----------------------------------------------------------------
Quality Systems, Inc. 1 4,200 187,278
- ----------------------------------------------------------------
Radiant Systems, Inc. 1 2,900 24,389
- ----------------------------------------------------------------
Renaissance Learning, Inc. 1 900 21,672
- ----------------------------------------------------------------
Roxio, Inc. 1 12,600 60,354
- ----------------------------------------------------------------
RSA Security, Inc. 1 11,900 168,980
- ----------------------------------------------------------------
Sanchez Computer Associates, Inc. 1 2,200 9,130
- ----------------------------------------------------------------
SCO Group, Inc. (The) 1 6,400 108,800
- ----------------------------------------------------------------
SPSS, Inc. 1 1,000 17,880
- ----------------------------------------------------------------
Sybase, Inc. 1 5,700 117,306
- ----------------------------------------------------------------
Synplicity, Inc. 1 100 783
- ----------------------------------------------------------------
Systems & Computer
Technology Corp. 1 900 14,715
- ----------------------------------------------------------------
Take-Two Interactive Software, Inc. 1 2,300 66,263
- ----------------------------------------------------------------
Tradestation Group, Inc. 1 3,100 27,466
- ----------------------------------------------------------------
Transaction Systems Architects,
Inc., Cl. A 1 2,700 61,101
- ----------------------------------------------------------------
Ulticom, Inc. 1 9,700 93,605
- ----------------------------------------------------------------
VA Software Corp. 1 12,100 47,311
- ----------------------------------------------------------------
Wind River Systems, Inc. 1 10,500 91,980
-------------
3,717,832
- ----------------------------------------------------------------
MATERIALS--4.6%
- ----------------------------------------------------------------
CHEMICALS--1.3%
Agrium, Inc. 3,200 52,672
- ----------------------------------------------------------------
American Vanguard Corp. 400 14,908
- ----------------------------------------------------------------
Calgon Carbon Corp. 2,600 16,146
- ----------------------------------------------------------------
Cytec Industries, Inc. 1 3,100 119,009
- ----------------------------------------------------------------
Ethyl Corp. 1 2,400 52,488
- ----------------------------------------------------------------
Hawkins, Inc. 400 5,584
- ----------------------------------------------------------------
Headwaters, Inc. 1 2,200 43,164
- ----------------------------------------------------------------
Hercules, Inc. 1 13,200 161,040
- ----------------------------------------------------------------
MacDermid, Inc. 6,900 236,256
- ----------------------------------------------------------------
Material Sciences Corp. 100 1,011
- ----------------------------------------------------------------
Octel Corp. 3,200 63,008
- ----------------------------------------------------------------
Olin Corp. 10,400 208,624
- ----------------------------------------------------------------
OM Group, Inc. 1 6,100 159,759
- ----------------------------------------------------------------
PolyOne Corp. 1 4,700 30,033
- ----------------------------------------------------------------
Stepan Co. 1,800 46,170
-------------
1,209,872
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
CONSTRUCTION MATERIALS--0.5%
AMCOL International Corp. 10,700 $ 217,210
- ----------------------------------------------------------------
Ameron International Corp. 2,800 97,132
- ----------------------------------------------------------------
Centex Construction Products, Inc. 700 42,189
- ----------------------------------------------------------------
Florida Rock Industries, Inc. 2,100 115,185
-------------
471,716
- ----------------------------------------------------------------
CONTAINERS & PACKAGING--0.3%
Caraustar Industries, Inc. 1 900 12,420
- ----------------------------------------------------------------
Chesapeake Corp. 2,200 58,256
- ----------------------------------------------------------------
Graphic Packaging Corp. 1 1,400 5,684
- ----------------------------------------------------------------
Mod-Pac Corp. 1 125 999
- ----------------------------------------------------------------
Packaging Dynamics Corp. 1 760 7,813
- ----------------------------------------------------------------
Silgan Holdings, Inc. 1 4,800 204,432
-------------
289,604
- ----------------------------------------------------------------
METALS & MINING--1.9%
AK Steel Holding Corp. 1 22,300 113,730
- ----------------------------------------------------------------
Allegheny Technologies, Inc. 12,600 166,572
- ----------------------------------------------------------------
Brush Engineered Materials, Inc. 1 300 4,593
- ----------------------------------------------------------------
Carpenter Technology Corp. 7,500 221,775
- ----------------------------------------------------------------
Century Aluminum Co. 5,400 102,654
- ----------------------------------------------------------------
Cleveland-Cliffs, Inc. 1 2,300 117,185
- ----------------------------------------------------------------
Gibraltar Steel Corp. 500 12,575
- ----------------------------------------------------------------
Goldcorp, Inc. 1,500 23,935
- ----------------------------------------------------------------
GrafTech International Ltd. 1 900 12,150
- ----------------------------------------------------------------
IMCO Recycling, Inc. 1 1,200 11,868
- ----------------------------------------------------------------
International Steel Group, Inc. 1 1,400 54,530
- ----------------------------------------------------------------
Liquidmetal Technologies, Inc. 1 3,200 9,088
- ----------------------------------------------------------------
Meridian Gold, Inc. 1 900 13,184
- ----------------------------------------------------------------
Metal Management, Inc. 1 4,900 180,957
- ----------------------------------------------------------------
Metals USA, Inc. 1 2,900 29,203
- ----------------------------------------------------------------
NN, Inc. 4,000 50,360
- ----------------------------------------------------------------
Peabody Energy Corp. 2,600 108,446
- ----------------------------------------------------------------
RTI International Metals, Inc. 1 1,300 21,931
- ----------------------------------------------------------------
Schnitzer Steel Industries, Inc. 5,500 332,750
- ----------------------------------------------------------------
Steel Technologies, Inc. 1,100 19,459
- ----------------------------------------------------------------
Westmoreland Coal Co. 700 12,250
- ----------------------------------------------------------------
Wheaton River Minerals Ltd. 1 16,100 48,216
-------------
1,667,411
20 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.6%
Buckeye Technologies, Inc. 1 2,600 $ 26,130
- ----------------------------------------------------------------
Deltic Timber Corp. 500 15,200
- ----------------------------------------------------------------
Louisiana-Pacific Corp. 1 16,000 286,080
- ----------------------------------------------------------------
Pope & Talbot, Inc. 500 8,805
- ----------------------------------------------------------------
Potlatch Corp. 4,500 156,465
- ----------------------------------------------------------------
Schweitzer-Mauduit International, Inc. 300 8,934
-------------
501,614
- ----------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.3%
- ----------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--0.6%
D&E Communications, Inc. 100 1,451
- ----------------------------------------------------------------
General Communication, Inc., Cl. A 1 4,200 36,540
- ----------------------------------------------------------------
Golden Telecom, Inc. 1 2,200 61,050
- ----------------------------------------------------------------
Hungarian Telephone & Cable Corp. 1 100 986
- ----------------------------------------------------------------
McLeodUSA, Inc., Cl. A 1 28,500 42,180
- ----------------------------------------------------------------
North Pittsburgh Systems, Inc. 3,000 56,730
- ----------------------------------------------------------------
Primus Telecommunications
Group, Inc. 1 4,800 48,864
- ----------------------------------------------------------------
PTEK Holdings, Inc. 1 1,100 9,691
- ----------------------------------------------------------------
Talk America Holdings, Inc. 1 7,900 91,008
- ----------------------------------------------------------------
Time Warner Telecom, Inc., Cl. A 1 13,100 132,703
- ----------------------------------------------------------------
US LEC Corp., Cl. A 1 1,200 9,456
- ----------------------------------------------------------------
Warwick Valley Telephone Co. 500 14,795
-------------
505,454
- ----------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.7%
Boston Communications Group, Inc. 1 3,900 36,231
- ----------------------------------------------------------------
Centennial Communications Corp. 1 5,300 27,878
- ----------------------------------------------------------------
Cincinnati Bell, Inc. 1 29,700 149,985
- ----------------------------------------------------------------
Dobson Communications Corp., Cl. A 1 7,700 50,589
- ----------------------------------------------------------------
Price Communications Corp. 1 3,000 41,190
- ----------------------------------------------------------------
Triton PCS Holdings, Inc., Cl. A 1 8,300 46,314
- ----------------------------------------------------------------
UbiquiTel, Inc. 1 18,400 49,478
- ----------------------------------------------------------------
Wireless Facilities, Inc. 1 15,900 236,274
-------------
637,939
- ----------------------------------------------------------------
UTILITIES--1.2%
- ----------------------------------------------------------------
ELECTRIC UTILITIES--0.5%
Aquila, Inc. 1 29,500 100,005
- ----------------------------------------------------------------
Black Hills Corp. 100 2,983
- ----------------------------------------------------------------
Canadian Hydro Developers, Inc. 1 14,000 23,834
- ----------------------------------------------------------------
Central Vermont Public Service Corp. 600 14,100
- ----------------------------------------------------------------
CH Energy Group, Inc. 2,600 121,940
- ----------------------------------------------------------------
Green Mountain Power Corp. 700 16,520
- ----------------------------------------------------------------
UniSource Energy Corp. 300 7,398
- ----------------------------------------------------------------
Westar Energy, Inc. 9,100 184,275
-------------
471,055
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------
GAS UTILITIES--0.6%
Chesapeake Utilities Corp. 1,200 $ 31,260
- ----------------------------------------------------------------
Energen Corp. 5,800 237,974
- ----------------------------------------------------------------
EnergySouth, Inc. 200 7,000
- ----------------------------------------------------------------
Laclede Group, Inc. (The) 1,100 31,405
- ----------------------------------------------------------------
New Jersey Resources Corp. 500 19,255
- ----------------------------------------------------------------
South Jersey Industries, Inc. 200 8,100
- ----------------------------------------------------------------
Southwestern Energy Co. 1 7,700 184,030
- ----------------------------------------------------------------
UGI Corp. 1,150 38,985
-------------
558,009
- ----------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.0%
Avista Corp. 1,200 21,744
- ----------------------------------------------------------------
WATER UTILITIES--0.1%
SJW Corp. 300 26,766
-------------
Total Common Stocks (Cost $73,551,772) 88,623,413
- ----------------------------------------------------------------
PREFERRED STOCKS--0.0%
Astronics Corp., Cl. B 1,2 (Cost $1,733) 250 1,313
UNITS
- ----------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
Canadian Superior Energy, Inc. Wts.,
Exp. 3/14/04 1,2 (Cost $14) 17,500 17,255
PRINCIPAL
AMOUNT
- ----------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--3.3%
Undivided interest of 2.71% 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 $2,964,132 on
1/2/04, collateralized by U.S. Treasury Bonds,
4.25%, 11/30/13, with a value of $111,861,618
(Cost $2,964,000) $2,964,000 2,964,000
- ----------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $76,517,519) 101.6% 91,605,981
- ----------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (1.6) (1,394,914)
--------------------------
NET ASSETS 100.0% $90,211,067
==========================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Identifies issues considered to be illiquid or restricted. See Note 6 of
Notes to Financial Statements.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 2003
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
ASSETS
Investments, at value (including securities loaned
of approximately $16,282,000)
(cost $76,517,519)--see accompanying statement $ 91,605,981
- -----------------------------------------------------------------------------
Collateral for securities loaned 16,865,986
- -----------------------------------------------------------------------------
Receivables and other assets:
Investments sold 1,146,841
Shares of beneficial interest sold 575,163
Interest and dividends 16,334
Other 2,014
-------------
Total assets 110,212,319
- -----------------------------------------------------------------------------
LIABILITIES
Bank overdraft 42,147
- -----------------------------------------------------------------------------
Return of collateral for securities loaned 16,865,986
- -----------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,903,271
Shares of beneficial interest redeemed 110,213
Distribution and service plan fees 31,844
Shareholder reports 18,811
Transfer and shareholder servicing agent fees 1,664
Trustees' compensation 1,201
Other 26,115
-------------
Total liabilities 20,001,252
- -----------------------------------------------------------------------------
NET ASSETS $ 90,211,067
=============
- -----------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 6,725
- -----------------------------------------------------------------------------
Additional paid-in capital 78,382,376
- -----------------------------------------------------------------------------
Accumulated net investment loss (32,616)
- -----------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (3,233,887)
- -----------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 15,088,469
-------------
NET ASSETS $ 90,211,067
=============
- -----------------------------------------------------------------------------
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 $27,550,767 and 2,050,171
shares of beneficial interest outstanding) $13.44
- -----------------------------------------------------------------------------
Service Shares:
Net asset value, redemption price per share and offering price
per share (base on net assets of $62,660,300 and 4,675,294
shares of beneficial interest outstanding) $13.40
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended December 31, 2003
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $2,738) $ 308,870
- -----------------------------------------------------------------------------
Interest 19,620
- -----------------------------------------------------------------------------
Portfolio lending fees 15,150
------------
Total investment income 343,640
- -----------------------------------------------------------------------------
EXPENSES
Management fees 338,340
- -----------------------------------------------------------------------------
Distribution and service plan fees--Service shares 62,135
- -----------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Non-Service shares 10,328
Service shares 6,045
- -----------------------------------------------------------------------------
Shareholder reports 40,318
- -----------------------------------------------------------------------------
Legal, auditing and other professional fees 16,066
- -----------------------------------------------------------------------------
Trustees' compensation 5,590
- -----------------------------------------------------------------------------
Insurance expenses 2,292
- -----------------------------------------------------------------------------
Registration and filing fees 1,918
- -----------------------------------------------------------------------------
Custodian fees and expenses 779
- -----------------------------------------------------------------------------
Other 28,986
------------
Total expenses 512,797
Less reduction to custodian expenses (656)
------------
Net expenses 512,141
- -----------------------------------------------------------------------------
NET INVESTMENT LOSS (168,501)
- -----------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on:
Investments 2,685,493
Foreign currency transactions 18,436
------------
Net realized gain 2,703,929
- -----------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 14,947,524
Translation of assets and liabilities denominated in
foreign currencies 91,455
------------
Net change in unrealized appreciation 15,038,979
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $17,574,407
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2003 2002
- -----------------------------------------------------------------------------
OPERATIONS
Net investment loss $ (168,501) $ (23,905)
- -----------------------------------------------------------------------------
Net realized gain (loss) 2,703,929 (2,848,300)
- -----------------------------------------------------------------------------
Net change in unrealized appreciation 15,038,979 (1,461,310)
----------------------------
Net increase (decrease) in net assets
resulting from operations 17,574,407 (4,333,515)
- -----------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Non-Service shares 536,751 4,845,883
Service shares 46,411,899 6,553,550
- -----------------------------------------------------------------------------
NET ASSETS
Total increase 64,523,057 7,065,918
- -----------------------------------------------------------------------------
Beginning of period 25,688,010 18,622,092
----------------------------
End of period [including accumulated net
investment loss of $32,616 and
$11,369, respectively] $90,211,067 $25,688,010
============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NON-SERVICE SHARES YEAR ENDED DECEMBER 31, 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.31 $11.05 $11.09 $14.07 $ 9.60
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.01) -- 1 (.03) (.02)
Net realized and unrealized gain (loss) 4.16 (1.73) (.04) (2.35) 4.49
--------------------------------------------------------------
Total from investment operations 4.13 (1.74) (.04) (2.38) 4.47
- ---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- -- (.60) --
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.44 $ 9.31 $11.05 $11.09 $14.07
===============================================================
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 44.36% (15.75)% (0.36)% (18.34)% 46.56%
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $27,551 $19,577 $18,514 $14,599 $6,927
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $20,271 $20,505 $15,307 $12,576 $2,738
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.30)% (0.09)% (0.01)% (0.29)% (0.37)%
Total expenses 1.01% 1.00% 1.05% 1.37% 1.83%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses N/A 4 N/A 4 N/A 4 1.35% 1.34%
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 130% 121% 213% 162% 176%
<FN>
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods 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.
25 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS CONTINUED
- --------------------------------------------------------------------------------
SERVICE SHARES YEAR ENDED DECEMBER 31, 2003 2002 2001 1
- -----------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.29 $11.05 $10.61
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) (.01) -- 2
Net realized and unrealized gain (loss) 4.13 (1.75) .44
------------------------------------
Total from investment operations 4.11 (1.76) .44
- -----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- -- --
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $13.40 $ 9.29 $11.05
====================================
- -----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 44.24% (15.93)% 4.15%
- -----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $62,660 $6,111 $108
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $25,018 $2,228 $ 26
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.43)% (0.26)% (0.34)%
Total expenses 1.23% 1.21% 1.19%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses N/A 5 1.19% N/A 5
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 130% 121% 213%
<FN>
1. For the period from July 16, 2001 (inception of offering) to December 31,
2001.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Total returns are not annualized for
periods less than one full year. Total return information does not reflect
expenses that apply at the separate account level or to related insurance
products. Inclusion of these charges would reduce the total return figures for
all periods shown. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Small Cap Fund/VA (the Fund) 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 investment objective is to seek capital appreciation. 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.
27 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 TAX PURPOSES
--------------------------------------------------------------------------------------------
$-- $-- $3,233,886 $15,055,853
<FN>
1. As of December 31, 2003, the Fund had $3,233,886 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
-------------------------
2009 $ 642,572
2010 2,591,314
----------
Total $3,233,886
==========
2. During the fiscal year December 31, 2003, the Fund utilized $2,435,654 of
capital loss carryforward to offset capital gains realized in that fiscal year.
During the fiscal year December 31, 2002, the Fund did not utilize any capital
loss carryforwards.
</FN>
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.
INCREASE TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO ACCUMULATED NET REALIZED LOSS
PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS
------------------------------------------------------
$144,288 $147,254 $2,966
No distributions were paid during the years ended December 31, 2003 and
December 31, 2002.
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 $76,550,135
===========
Gross unrealized appreciation $16,011,663
Gross unrealized depreciation (955,810)
-----------
Net unrealized appreciation $15,055,853
===========
28 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- --------------------------------------------------------------------------------
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 826,676 $ 9,370,135 1,297,325 $ 13,674,065
Redeemed (879,995) (8,833,384) (869,963) (8,828,182)
------------------------------------------------------------------
Net increase (decrease) (53,319) $ 536,751 427,362 $ 4,845,883
==================================================================
- ---------------------------------------------------------------------------------------------------------------
SERVICE SHARES
Sold 4,910,616 $ 56,495,920 2,221,410 $ 21,513,500
Redeemed (892,849) (10,084,021) (1,573,671) (14,959,950)
------------------------------------------------------------------
Net increase 4,017,767 $ 46,411,899 647,739 $ 6,553,550
==================================================================
- --------------------------------------------------------------------------------
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
$103,688,073 and $58,027,770, respectively.
29 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
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 $15,171 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.
30 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED 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
$90,924, which represents 0.10% of the Fund's net assets, of which $22,804 is
considered restricted. Information concerning restricted securities is as
follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST DECEMBER 31, 2003 APPRECIATION
- ------------------------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Esprit Exploration Ltd. 6/4/02 $19,418 $22,804 $3,386
- --------------------------------------------------------------------------------
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 $16,282,000. Cash
of $16,865,986 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.
31 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER MAIN STREET SMALL CAP
FUND/VA:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Main Street Small Cap 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 Small Cap 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
32 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
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.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
33 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS;
FUND, LENGTH OF SERVICE, AGE OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY
TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX
CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW
TRUSTEES IS 6803 S. TUCSON WAY, CENTENNIAL, CO
80112-3924. EACH TRUSTEE SERVES FOR AN
INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage
Chairman of the Board banking companies: Cherry Creek Mortgage Company
(since 2003) and (since 1991), Centennial State Mortgage Company
Trustee (since 1999) (since 1994), The El Paso Mortgage Company
Age: 66 (since 1993), Transland Financial Services, Inc.
(since 1997); Chairman of the following private
companies: Great Frontier Insurance (insurance
agency) (since 1995), Ambassador Media
Corporation and Broadway Ventures (since 1984);
a director of the following public companies:
Helmerich & Payne, Inc. (oil and gas
drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991).
Mr. Armstrong is also a Director/ Trustee of
Campus Crusade for Christ and the Bradley
Foundation. Formerly a director of the
following: Storage Technology Corporation (a
publicly-held computer equipment company)
(1991-February 2003), and International Family
Entertainment (television channel) (1992-1997),
Frontier Real Estate, Inc. (residential real
estate brokerage) (1994-1999), and Frontier
Title (title insurance agency) (1995-June 1999);
a U.S. Senator (January 1979-January 1991).
Oversees 38 portfolios in the OppenheimerFunds
complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards
Trustee (since 1998) Capital, Inc. (General Partner of private equity
Age: 72 funds) (until February 2001); Chairman,
President and Chief Executive Officer of A.G.
Edwards Capital, Inc. (until March 2000); Vice
Chairman and Director of A.G. Edwards, Inc. and
Vice Chairman of A.G. Edwards & Sons, Inc. (its
brokerage company subsidiary) (until March
1999); Chairman of A.G. Edwards Trust Company
and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March
2000) of A.G. Edwards & Sons and A.G. Edwards
Trust Company. Oversees 38 portfolios in the
OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly (until April 1999): Senior Vice
Trustee (since 1998) President (from September 1987) and Treasurer
Age: 67 (from March 1985) of OppenheimerFunds, Inc. (the
Manager); Vice President (from June 1983) and
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,
Trustee (since 1999) George Washington's home (since June 2000).
Age: 65 Formerly (March 2001 - May 2002) Director of
Genetic ID, Inc. and its subsidiaries (a
privately held biotech company); a partner with
PricewaterhouseCoopers LLP (from 1974-1999) (an
accounting firm) and Chairman (from 1994-1998),
Price Waterhouse LLP Global Investment
Management Industry Services Group. Oversees 38
portfolios in the OppenheimerFunds complex.
JON S. FOSSEL, Chairman and Director (since 1998) of Rocky
Trustee (since 1998) Mountain Elk Foundation (a not-for-profit
Age: 61 foundation); and a director (since October 1999)
of P.R. Pharmaceuticals (a privately held
company) and UNUMProvident (an insurance
company) (since June 1, 2002). Formerly Chairman
and a director (until October 1996) and
President and Chief Executive Officer (until
October 1995) of the Manager; President, Chief
Executive Officer and a director of Oppenheimer
Acquisition Corp., Shareholders Services Inc.
and Shareholder Financial Services, Inc. (until
October 1995). Oversees 38 portfolios in the
OppenheimerFunds complex.
34 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
SAM FREEDMAN, Director of Colorado Uplift (a non-profit
Trustee (since 1998) charity) (since September 1984). Formerly (until
Age: 63 October 1994) Mr. Freedman held several
positions in subsidiary or affiliated companies
of the Manager. Oversees 38 portfolios in the
OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee (since 1996) of MassMutual Institutional
Trustee (since 2002) Funds and of MML Series Investment Fund
Age: 57 (open-end investment companies); Director of MML
Services (since April 1987) and America Funds
Emerging Markets Growth Fund (since October
1991) (both are investment companies), The
California Endowment (a philanthropy
organization) (since April 2002), and Community
Hospital of Monterey Peninsula, (since February
2002); a trustee (since February 2000) of
Monterey International Studies (an educational
organization), and an advisor to Unilever
(Holland)'s pension fund and to Credit Suisse
First Boston's Sprout venture capital unit. Mrs.
Hamilton also is a member of the investment
committees of the Rockefeller Foundation, the
University of Michigan and Hartford Hospital.
Formerly, President (February 1991-April 2000)
ARCO Investment Management Company. Oversees 37
portfolios in the OppenheimerFunds complex.
ROBERT J. MALONE, Chairman and CEO (since 2003) of Steele Street
Trustee (since 2002) State Bank (a commercial banking entity);
Age: 59 Director (since 2001) of Jones Knowledge, Inc.
(a privately held company), U.S. Exploration,
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
Trustee (since 2000) Funds and of MML Series Investment Fund
Age: 61 (open-end investment companies); Trustee (since
1987), Chairman of the Board (since 2003) and
Chairman of the investment committee (since
1994) for the Worcester Polytech Institute;
President and Treasurer (since January 1999) of
the SIS Fund (a private not for profit
charitable fund); Trustee (since 1995) of the
Springfield Library and Museum Association;
Trustee (since 1996) of the Community Music
School of Springfield. Formerly, member of the
investment committee of the Community Foundation
of Western Massachusetts (1998 - 2003); Chairman
(January 1999-July 1999) of SIS & Family Bank,
F.S.B. (formerly SIS Bank); President, Chief
Executive Officer and Director (May
1993-December 1998) of SIS Bankcorp, Inc. and
SIS Bank (formerly Springfield Institution for
Savings) and Executive Vice President (January
1999-July 1999) of Peoples Heritage Financial
Group, Inc. Oversees 38 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS
AND OFFICER TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
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
President and Trustee (since June 2001) and President (since September
(since 2001) 2000) of the Manager; President and a director
Age: 54 or trustee of other Oppenheimer funds; President
and a director (since July 2001) of Oppenheimer
Acquisition Corp. and of Oppenheimer Partnership
Holdings, Inc.; a director (since November 2001)
of OppenheimerFunds Distributor, Inc.; Chairman
and a director (since July 2001) of Shareholder
Services, Inc. and of Shareholder Financial
Services, Inc.; President and a director (since
July 2001) of OppenheimerFunds Legacy Program (a
charitable trust program established by the
Manager); a director of the following investment
advisory subsidiaries of OppenheimerFunds, Inc.:
OFI Institutional Asset Management, Inc. and
Centennial Asset Management Corporation (since
November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc.
(since July 2001); President (since November 1,
2001) and a director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; a
director (since November 2001) of Trinity
Investment Management Corp. and Tremont
Advisers, Inc. (investment advisory affiliates
of the Manager); Executive Vice President (since
February 1997) of Massachusetts Mutual Life
Insurance Company (the Manager's parent
company); a director (since June 1995) of DLB
Acquisition Corporation (a holding company that
owns shares of David L. Babson & Company, Inc.);
formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and
trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual
Institutional Funds (open-end investment
companies); a director (September 1999-August
2000) of C.M. Life Insurance Company; President,
Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life
Insurance Company; a director (June 1989-June
1998) of Emerald Isle Bancorp and Hibernia
Savings Bank (a wholly-owned subsidiary of
Emerald Isle Bancorp). Oversees 72 portfolios as
a Trustee/Officer and 10 portfolios as an
Officer in the OppenheimerFunds complex.
35 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW
IS AS FOLLOWS: FOR MESSRS. ZAVANELLI, MONOYIOS
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.
MARK ZAVANELLI, Vice President (since November 2000) of the
Vice President and Portfolio Manager; a Chartered Financial Analyst; an
Manager (since 2001) officer of 2 portfolios in the OppenheimerFunds
Age: 33 complex. Prior to joining the Manager in May
1998 he was President of Waterside Capital
Management, a registered investment advisor
(August 1995 - April 1998) and a financial
research analyst for Elder Research (June 1997 -
April 1998).
NIKOLAOS D. MONOYIOS, Vice President of the Manager (since April
Vice President and Portfolio 1998); an officer of 4 portfolios in the
Manager (since 2003) OppenheimerFunds complex; a Certified Financial
Age: 54 Analyst; formerly a Vice President and portfolio
manager for Guardian Investor Services, the
investment management subsidiary of The Guardian
Life Insurance Company (1979 - March 1998).
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer (since March
Age: 44 1999) of HarbourView Asset Management
Corporation, Shareholder Services, Inc.,
Oppenheimer Real Asset Management Corporation,
Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI
Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiaries of the Manager) (since May 2000)
and OFI Institutional Asset Management, Inc.
(since November 2000); Treasurer and Chief
Financial Officer (since May 2000) of 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)
Vice President and Secretary and General Counsel (since February 2002) of the
(since 2001) Manager; General Counsel and a director (since
Age: 55 November 2001) of OppenheimerFunds Distributor,
Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset
Management Corporation; Vice President and a
director (since November 2000) of Oppenheimer
Partnership Holdings, Inc.; Senior Vice
President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc.,
Shareholder Financial Services, Inc., OFI
Private Investments, Inc., 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.
36 | OPPENHEIMER MAIN STREET SMALL CAP 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 $6,500 in fiscal 2003 and $6,000 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 $3,500 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 $90,100 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)