UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5582
Oppenheimer Cash Reserves
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2003 - January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS January 31, 2004 / Unaudited
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--9.5%
- ------------------------------------------------------------------------------
DOMESTIC CERTIFICATES OF DEPOSIT--1.6%
Citibank NA, 1.09%,
2/6/04 $ 5,000,000 $ 5,000,000
- ------------------------------------------------------------------------------
National Bank
of Commerce,
Tennessee,
1.105%, 6/14/04 1 6,500,000 6,499,761
------------
11,499,761
- ------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT--7.9%
Bank of Montreal,
Chicago, 1.105%,
3/31/04 5,000,000 5,000,000
- ------------------------------------------------------------------------------
Canadian Imperial
Bank of Commerce,
New York:
1.03%, 3/19/04 10,000,000 10,000,000
1.09%, 3/5/04 7,000,000 7,000,000
-----------------------------------------------------------------------------
Credit Lyonnais,
New York, 1.10%,
3/1/04 10,000,000 9,999,960
- ------------------------------------------------------------------------------
Lloyds TSB Bank
plc, New York,
1.09%, 2/17/04 7,000,000 7,000,031
- ------------------------------------------------------------------------------
Royal Bank of
Scotland, New
York, 1.125%, 7/8/04 5,000,000 5,000,000
- ------------------------------------------------------------------------------
Svenska
Handelsbanken
NY, 1.11%, 2/3/04 4,500,000 4,500,000
- ------------------------------------------------------------------------------
UBS AG Stamford
CT, 1.065%, 4/6/04 10,000,000 10,000,090
------------
58,500,081
------------
Total Certificates of Deposit
(Cost $69,999,842) 69,999,842
- ------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS--18.4%
AB SPINTAB,
1.11%, 2/23/04 12,400,000 12,391,589
- ------------------------------------------------------------------------------
BNP Paribas
Finance, Inc.,
1.09%, 2/13/04 2,450,000 2,449,110
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS Continued
Credit Lyonnais
North America, Inc.:
1.04%, 4/13/04 $ 5,000,000 $ 4,989,600
1.08%, 2/3/04 5,000,000 4,999,700
- ------------------------------------------------------------------------------
Danske Corp.,
Series A,
1.035%, 4/6/04 10,000,000 9,981,313
- ------------------------------------------------------------------------------
Deutsche Bank
Financial LLC,
1.12%, 7/12/04 11,000,000 10,944,560
- ------------------------------------------------------------------------------
Governor & Co.
of the Bank
of Ireland:
1.035%, 4/16/04 2 10,000,000 9,978,438
1.04%, 4/21/04 2 5,000,000 4,988,444
- ------------------------------------------------------------------------------
HBOS Treasury
Services:
1.115%, 4/7/04 16,000,000 15,967,293
1.13%, 3/10/04 8,000,000 7,990,458
- ------------------------------------------------------------------------------
LaSalle Bank NA,
1.10%, 2/19/04 7,000,000 7,000,000
- ------------------------------------------------------------------------------
Nationwide
Building Society,
1.13%, 7/7/04 2,000,000 1,990,144
- ------------------------------------------------------------------------------
Nordea North
America, Inc.,
1.12%, 3/29/04 5,000,000 4,991,133
- ------------------------------------------------------------------------------
Societe Generale
North America:
1.08%, 2/5/04 10,000,000 9,998,800
1.105%, 2/2/04 2,900,000 2,899,911
- ------------------------------------------------------------------------------
Stadshypotek
Delaware, Inc.,
1.03%, 3/26/04 2 5,000,000 4,992,275
- ------------------------------------------------------------------------------
Toronto Dominion
Holdings, Inc.,
1.09%, 2/5/04 4,030,000 4,029,512
- ------------------------------------------------------------------------------
UBS Finance
(Delaware) LLC,
1.08%, 2/17/04 5,000,000 4,997,600
- ------------------------------------------------------------------------------
Wells Fargo Bank
NA, 5.45%, 5/3/04 10,000,000 10,109,659
------------
Total Direct Bank Obligations
(Cost $135,689,539) 135,689,539
8 | OPPENHEIMER CASH RESERVES
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
SHORT-TERM NOTES--65.0%
- ------------------------------------------------------------------------------
ASSET-BACKED--22.8%
Crown Point Capital Co.:
1.07%, 5/3/04 2 $ 5,000,000 $ 4,986,328
1.12%, 2/6/04 2 10,000,000 9,998,431
1.14%, 3/4/04 2 7,500,000 7,492,400
- ------------------------------------------------------------------------------
Eiffel Funding LLC:
1.05%, 4/22/04 2 16,150,000 16,111,846
1.05%, 4/23/04 2 5,000,000 4,988,042
- -----------------------------------------------------------------------------
FCAR Owner Trust I,
1.11%, 2/12/04 2,000,000 1,999,322
- ------------------------------------------------------------------------------
Galaxy Funding, Inc.:
1.11%, 4/14/04 2 5,000,000 4,988,746
1.12%, 3/3/04 2 5,000,000 4,995,178
1.13%, 3/5/04 2 5,000,000 4,994,821
- ------------------------------------------------------------------------------
GOVCO, Inc.,
1.11%, 2/9/04 2 3,950,000 3,949,026
- ------------------------------------------------------------------------------
Grampian Funding
LLC:
1.11%, 4/14/04 2 7,000,000 6,984,244
1.12%, 4/26/04 2 2,500,000 2,493,389
- ------------------------------------------------------------------------------
Lexington Parker
Capital Co. LLC:
1.05%, 4/14/04 2 7,500,000 7,484,031
1.10%, 4/6/04 2 2,329,000 2,324,374
1.13%, 2/5/04 2 4,000,000 3,999,498
1.16%, 8/3/04 2 5,000,000 4,970,678
- ------------------------------------------------------------------------------
Neptune Funding
Corp.:
1.07%, 4/28/04 2 10,000,000 9,973,900
1.15%, 2/9/04 2 10,000,000 9,997,444
- ------------------------------------------------------------------------------
Perry Global Funding
LLC, Series A, 1.13%,
3/4/04 2 5,000,000 4,994,978
- ------------------------------------------------------------------------------
Preferred Receivables
Funding Corp.,
1.13%, 3/10/04 2 10,370,000 10,357,631
- ------------------------------------------------------------------------------
Scaldis Capital LLC:
1.05%, 4/15/04 2 10,000,000 9,978,417
1.09%, 3/12/04 2 8,500,000 8,489,706
- ------------------------------------------------------------------------------
Victory Receivables
Corp.:
1.05%, 3/3/04 2 4,000,000 3,996,383
1.07%, 4/15/04 2 2,750,000 2,743,952
1.15%, 2/10/04 2 15,000,000 14,995,688
------------
168,288,453
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
CAPITAL MARKETS--16.3%
Banc of America
Securities LLC,
1.18%, 2/2/04 1 $15,000,000 $ 15,000,000
- ------------------------------------------------------------------------------
Bear Stearns Cos.,
Inc., 1.10%, 3/11/04 13,000,000 12,984,508
- ------------------------------------------------------------------------------
Citigroup Global
Markets Holdings,
Inc.:
1.04%, 5/13/04 5,000,000 4,985,267
1.08%, 2/4/04 15,000,000 14,998,650
- ------------------------------------------------------------------------------
Goldman Sachs
Group, Inc.:
1.15%, 6/25/04 5,000,000 5,000,000
1.18%, 7/2/04 3 10,000,000 10,000,000
- ------------------------------------------------------------------------------
Lehman Brothers, Inc.,
1.13%, 12/15/04 1 18,000,000 18,000,000
- ------------------------------------------------------------------------------
Morgan Stanley,
1%, 8/27/04 1 9,600,000 9,600,000
- ------------------------------------------------------------------------------
Wachovia Securities
LLC, 1.28%, 3/26/04 1 30,000,000 30,000,000
------------
120,568,425
- ------------------------------------------------------------------------------
COMMERCIAL FINANCE--1.5%
Countrywide Home
Loans, 1.05%, 2/2/04 11,400,000 11,399,668
- ------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--2.9%
GE Capital
International
Funding, Inc.,
1.11%, 4/14/04 2 12,000,000 11,972,990
- ------------------------------------------------------------------------------
General Electric
Capital Corp.,
1.12%, 4/7/04 9,200,000 9,181,109
------------
21,154,099
- ------------------------------------------------------------------------------
INSURANCE--5.2%
Metropolitan Life
Global Funding I,
Series 2003-5,
1.11%, 2/17/04 1,3 8,600,000 8,600,000
- ------------------------------------------------------------------------------
Pacific Life
Insurance Co.,
1.14%, 2/2/04 1,3 5,000,000 5,000,000
9 | OPPENHEIMER CASH RESERVES
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
INSURANCE Continued
Prudential Insurance
Co. of America,
1.21%, 4/1/04 1 $10,000,000 $ 10,000,000
- ------------------------------------------------------------------------------
Security Life of
Denver Insurance
Co., 1.22%, 10/27/04 1 10,000,000 10,000,000
- ------------------------------------------------------------------------------
United of Omaha
Life Insurance Co.,
1.22%, 2/2/04 1,3 5,000,000 5,000,000
------------
38,600,000
- ------------------------------------------------------------------------------
LEASING & FACTORING--1.4%
American Honda
Finance Corp.,
1.13%, 2/4/04 1,4 10,000,000 10,000,000
- ------------------------------------------------------------------------------
METALS & MINING--1.7%
Rio Tinto Ltd.,
1.09%, 2/24/04 2 12,556,000 12,547,256
- ------------------------------------------------------------------------------
OIL & GAS--0.9%
Shell Finance UK
plc, 1.09%, 3/18/04 7,000,000 6,990,251
- ------------------------------------------------------------------------------
PERSONAL PRODUCTS--1.0%
Procter & Gamble Co.,
1.06%, 2/2/04 2 7,000,000 6,999,794
- ------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--11.3%
Cooperative Assn. of
Tractor Dealers, Inc.,
Series A, 1.05%,
2/27/04 5,000,000 4,996,208
- ------------------------------------------------------------------------------
Cooperative Assn. of
Tractor Dealers, Inc.,
Series B, 1.20%,
4/23/04 8,000,000 7,978,133
- ------------------------------------------------------------------------------
K2 (USA) LLC:
1.05%, 7/15/04 1,4 5,000,000 4,999,324
1.10%, 4/19/04 2 10,000,000 9,976,167
1.12%, 3/17/04 2 2,500,000 2,496,563
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL Continued
LINKS Finance LLC:
1.06%, 9/30/04 1,4 $10,000,000 $ 9,998,678
1.08%, 8/25/04 1,4 10,000,000 9,998,871
1.13%, 10/15/04 1,4 5,000,000 5,000,000
- ------------------------------------------------------------------------------
Parkland (USA) LLC:
1.08%, 2/17/04 1,4 5,000,000 4,999,523
1.09%, 2/24/04 1,4 10,000,000 10,000,000
- ------------------------------------------------------------------------------
Sigma Finance, Inc.:
1.07%, 11/26/04 1,4 10,000,000 9,998,778
1.13%, 7/12/04 2 3,000,000 2,984,745
--------------
83,426,990
--------------
Total Short-Term Notes
(Cost $479,974,936) 479,974,936
- ------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--6.8%
Federal Home
Loan Bank:
1.23%, 7/6/04 10,000,000 10,000,000
1.50%, 3/1/05 5,000,000 5,000,000
- ------------------------------------------------------------------------------
Federal National
Mortgage Assn.,
1.375%, 2/18/05 5,000,000 5,000,000
- ------------------------------------------------------------------------------
FNMA Master
Credit Facility:
1.105%, 2/2/04 10,000,000 9,999,693
1.12%, 3/1/04-5/3/04 20,000,000 19,962,350
---------------
Total U.S. Government Agencies
(Cost $49,962,043) 49,962,043
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $735,626,360) 99.7% 735,626,360
- ------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.3 2,100,376
-----------------------------------
NET ASSETS 100.0% $ 737,726,736
===================================
10 | OPPENHEIMER CASH RESERVES
FOOTNOTES TO STATEMENT OF INVESTMENTS
SHORT-TERM NOTES AND DIRECT BANK OBLIGATIONS ARE GENERALLY TRADED ON A DISCOUNT
BASIS; THE INTEREST RATE SHOWN IS THE DISCOUNT RATE RECEIVED BY THE FUND AT THE
TIME OF PURCHASE. OTHER SECURITIES NORMALLY BEAR INTEREST AT THE RATES SHOWN.
1. Represents the current interest rate for a variable or increasing rate
security.
2. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $233,225,803, or 31.61% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Trustees.
3. Identifies issues considered to be illiquid or restricted. See Note 4 of
Notes to Financial Statements.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $64,995,174 or 8.81% of the Fund's net
assets as of January 31, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 | OPPENHEIMER CASH RESERVES
STATEMENT OF ASSETS AND LIABILITIES Unaudited
January 31, 2004
- ---------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $735,626,360)--see accompanying statement $ 735,626,360
- ---------------------------------------------------------------------------------------------------------
Cash 2,190,028
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 14,857,049
Interest 443,243
Other 149,690
---------------
Total assets 753,266,370
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Investments purchased 9,970,678
Shares of beneficial interest redeemed 5,147,196
Transfer and shareholder servicing agent fees 154,064
Shareholder communications 135,086
Distribution and service plan fees 75,894
Dividends 37,748
Trustees' compensation 3,330
Other 15,638
----------------
Total liabilities 15,539,634
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $ 737,726,736
================
- ----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 737,683
- ----------------------------------------------------------------------------------------------------------
Additional paid-in capital 736,988,087
- ----------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 966
----------------
NET ASSETS $ 737,726,736
================
12 | OPPENHEIMER CASH RESERVES
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $388,064,605
and 388,074,588 shares of beneficial interest outstanding) $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $218,328,092 and 218,286,834 shares
of beneficial interest outstanding) $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $80,780,970 and 80,768,993 shares of
beneficial interest outstanding) $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $50,553,069 and 50,552,247 shares of
beneficial interest outstanding) $1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER CASH RESERVES
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended January 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $4,949,548
- ----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,045,036
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 426,143
Class B 698,132
Class C 258,169
Class N 139,758
- ----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,043,656
Class B 487,502
Class C 210,139
Class N 102,299
- ----------------------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 66,026
Class B 40,575
Class C 15,063
Class N 7,700
- ----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 6,424
- ----------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 4,124
- ----------------------------------------------------------------------------------------------------------------------------
Other 162,613
-----------
Total expenses 5,713,359
Less reduction to custodian expenses (1,472)
Less waiver of management fees (297,900)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (406,913)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (395,280)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (175,509)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (84,321)
-----------
Net expenses 4,351,964
- ----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 597,584
- ----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 966
- ----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 598,550
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER CASH RESERVES
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- -------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 597,584 $ 3,924,750
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain 966 73,568
-------------------------------------------
Net increase in net assets resulting from operations 598,550 3,998,318
- -------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (381,108) (2,404,957)
Class B (137,673) (1,044,894)
Class C (51,301) (272,812)
Class N (27,502) (202,087)
- -------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (32,551)
Class B -- (28,468)
Class C -- (8,440)
Class N -- (3,523)
- -------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (77,779,029) 25,949,775
Class B (98,422,607) (101,017,788)
Class C (25,868,721) (16,470,114)
Class N (1,796,985) 9,589,171
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total decrease (203,866,376) (81,948,370)
- -------------------------------------------------------------------------------------------------------------------------
Beginning of period 941,593,112 1,023,541,482
-------------------------------------------
End of period $ 737,726,736 $ 941,593,112
===========================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER CASH RESERVES
FINANCIAL HIGHLIGHTS
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 1 .01 .01 .05 .05 .04
Net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total from investment operations -- 1 .01 .01 .05 .05 .04
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 1 (.01) (.01) (.05) (.05) (.04)
Distributions from net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- 1 (.01) (.01) (.05) (.05) (.04)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.09% 0.54% 1.31% 4.84% 5.10% 4.30%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $388,065 $465,843 $439,893 $395,898 $317,198 $264,632
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $431,347 $451,634 $405,285 $351,490 $312,440 $245,622
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.18% 0.53% 1.30% 4.67% 5.00% 4.22%
Total expenses 1.22% 1.16% 1.17% 1.15% 1.06% 1.10%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.96% 1.00% 1.16% N/A 4 N/A 4 N/A 4
<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 of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER CASH RESERVES
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 1 -- 1 .01 .04 .04 .04
Net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total from investment operations -- 1 -- 1 .01 .04 .04 .04
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 1 -- 1 (.01) (.04) (.04) (.04)
Distributions from net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- 1 -- 1 (.01) (.04) (.04) (.04)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.05% 0.27% 0.76% 4.25% 4.52% 3.72%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $218,328 $316,750 $417,768 $239,201 $172,345 $204,081
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $276,540 $385,078 $288,676 $208,775 $225,824 $170,068
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.10% 0.27% 0.75% 4.07% 4.40% 3.67%
Total expenses 1.39% 1.37% 1.71% 1.70% 1.61% 1.65%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.04% 1.27% 1.70% N/A 4 N/A 4 N/A 4
<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 of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER CASH RESERVES
FINANCIAL HIGHLIGHTS Continued
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 1 -- 1 .01 .04 .04 .04
Net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total from investment operations -- 1 -- 1 .01 .04 .04 .04
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 1 -- 1 (.01) (.04) (.04) (.04)
Distributions from net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- 1 -- 1 (.01) (.04) (.04) (.04)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.05% 0.25% 0.76% 4.26% 4.52% 3.73%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 80,781 $106,650 $123,120 $85,076 $49,382 $49,607
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $102,318 $113,569 $ 85,893 $68,741 $59,556 $37,244
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.10% 0.24% 0.80% 4.07% 4.44% 3.67%
Total expenses 1.45% 1.41% 1.71% 1.70% 1.61% 1.65%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.04% 1.28% 1.70% N/A 4 N/A 4 N/A 4
<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 of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER CASH RESERVES
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS N (UNAUDITED) 2003 2002 2001 1
- -----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income -- 2 -- 2 .01 .01
Net realized gain -- -- 2 -- 2 --
-----------------------------------------------
Total from investment operations -- 2 -- 2 .01 .01
- -----------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 2 -- 2 (.01) (.01)
Distributions from net realized gain -- -- 2 -- 2 --
-----------------------------------------------
Total dividends and/or distributions
to shareholders -- 2 -- 2 (.01) (.01)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
===============================================
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN 3 0.05% 0.43% 1.08% 1.49%
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $50,553 $52,350 $42,761 $4,275
- -----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $55,462 $49,145 $21,014 $ 737
- -----------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.10% 0.41% 0.68% 3.03%
Total expenses 1.41% 1.24% 1.47% 1.19%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.04% 1.11% 1.46% N/A 5
<FN>
1. For the period from March 1, 2001 (inception of offering) to July 31, 2001.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, 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 annualized for periods
of less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
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.
19 | OPPENHEIMER CASH RESERVES
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Cash Reserves (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The
Fund's investment objective is to seek the maximum current income that is
consistent with stability of principal. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class N shares. Class A shares
are sold at their offering price, which is the net asset value per share
without any initial sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. All classes of shares have identical rights and voting privileges
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. Classes A, B, C and N have separate distribution
and/or service plans. Class B shares will automatically convert to Class A
shares six years after the date of purchase.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, 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
20 | OPPENHEIMER CASH RESERVES
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:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
CLASS A
Sold 256,040,584 $ 256,040,584 645,438,961 $ 645,438,961
Dividends and/or
distributions reinvested 385,740 385,740 2,267,138 2,267,138
Redeemed (334,205,353) (334,205,353) (621,756,324) (621,756,324)
---------------------------------------------------------------------------
Net increase (decrease) (77,779,029) $ (77,779,029) 25,949,775 $ 25,949,775
===========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS B
Sold 107,039,296 $ 107,039,296 387,633,392 $ 387,633,392
Dividends and/or
distributions reinvested 124,118 124,118 989,218 989,218
Redeemed (205,586,021) (205,586,021) (489,640,398) (489,640,398)
---------------------------------------------------------------------------
Net decrease (98,422,607) $ (98,422,607) (101,017,788) $(101,017,788)
===========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS C
Sold 93,119,987 $ 93,119,987 236,359,515 $ 236,359,515
Dividends and/or
distributions reinvested 46,329 46,329 256,705 256,705
Redeemed (119,035,037) (119,035,037) (253,086,334) (253,086,334)
---------------------------------------------------------------------------
Net decrease (25,868,721) $ (25,868,721) (16,470,114) $ (16,470,114)
===========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS N
Sold 50,297,810 $ 50,297,810 156,184,467 $ 156,184,467
Dividends and/or
distributions reinvested 26,485 26,485 204,581 204,581
Redeemed (52,121,280) (52,121,280) (146,799,877) (146,799,877)
---------------------------------------------------------------------------
Net increase (decrease) (1,796,985) $ (1,796,985) 9,589,171 $ 9,589,171
===========================================================================
- --------------------------------------------------------------------------------
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.50% of the first $250 million of average annual net assets,
0.475% of the next $250 million, 0.45% of the next $250 million, 0.425% of the
next $250 million, and 0.40% of net assets in excess of $1 billion. Effective
December 6, 2002, the Manager has agreed to limit the Fund's management fee to
0.40% of the Fund's average net assets for each class of shares. This expense
limitation can be amended or terminated at any time without
21 | OPPENHEIMER CASH RESERVES
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
advance notice. As a result of this limitation the Fund was reimbursed $297,900
for the six months ended January 31, 2004.
- --------------------------------------------------------------------------------
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 six months ended January 31, 2004, the
Fund paid $896,255 to OFS for services to the Fund.
Prior to April 28, 2003, OFS had voluntarily agreed to limit transfer and
shareholder servicing agent fees for all classes, up to an annual rate of 0.35%
of average net assets per class. Effective April 28, 2003, transfer agent fees
for all classes are limited to the lesser of 0.35% of average daily net assets
or to an amount (but not less than zero) necessary to allow each class of the
Fund to maintain a 7-day yield of at least approximately 0.10%. Each of the
above-mentioned voluntary undertakings may be further amended or withdrawn at
any time.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.20% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares to compensate the Distributor for its services in connection with the
distribution of these shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% per year on
Class B shares and on Class C shares and 0.25% per year on Class N shares.
Effective January 1, 2003, the Fund decreased the asset-based sales charge on
Class B and Class C shares to 0.50% of average daily net assets per annum. The
Distributor is entitled to receive a service fee of 0.25% per year under each
plan, but the Board of Trustees has not authorized the Fund to pay the service
fees on Class B and Class C shares at this time. If either the Class B, Class C
or Class N plan is terminated by the Fund or by the shareholders of a class,
the Board of Trustees and its independent trustees must determine whether the
Distributor shall be entitled to
22 | OPPENHEIMER CASH RESERVES
payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination.
- --------------------------------------------------------------------------------
SALES CHARGES. Contingent deferred sales charges (CDSC) do not represent
expenses of the Fund. They are deducted from the proceeds of redemptions of
Fund shares prior to remittance. The CDSC retained by the Distributor on the
redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CONTINGENT CONTINGENT CONTINGENT CONTINGENT
DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------------------------------------------------------------------------------
January 31, 2004 $178,006 $167,406 $79,503 $189,354
- --------------------------------------------------------------------------------
4. ILLIQUID SECURITIES
As of January 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 10% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of January
31, 2004 was $28,600,000, which represents 3.88% of the Fund's net assets.
23 | OPPENHEIMER CASH RESERVES
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
Not applicable to semiannual reports.
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
There have been no changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Trustees that would require
disclosure herein.
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 January 31, 2004,
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 last 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)