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 811-8799
Oppenheimer Capital Preservation Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
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: October 31
Date of reporting period: November 1, 2003 - April 30, 2004
Item 1. Reports to Stockholders.
STATEMENT OF INVESTMENTS April 30, 2004 / Unaudited
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MARKET VALUE
SHARES SEE NOTE 1
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INVESTMENTS IN AFFILIATED COMPANIES--101.2%
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FIXED INCOME FUNDS--96.0%
Oppenheimer Bond Fund, Cl. Y 3,566,568 $ 36,664,323
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Oppenheimer Limited-Term Government Fund, Cl. Y 1 24,259,859 247,693,156
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Oppenheimer Strategic Income Fund, Cl. Y 14,953,147 62,354,622
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346,712,101
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MONEY MARKET FUND--5.2%
Oppenheimer Money Market Fund, Inc. 18,654,328 18,654,328
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TOTAL INVESTMENTS, AT VALUE (COST $359,427,181) 101.2% 365,366,429
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LIABILITIES IN EXCESS OF OTHER ASSETS (1.2) (4,400,666)
--------------------------
NET ASSETS 100.0% $360,965,763
==========================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Represents ownership of at least 5% of the issuer.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9 | OPPENHEIMER CAPITAL PRESERVATION FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
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April 30, 2004
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ASSETS
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Investments, at value--affiliated companies (cost $359,427,181)--see
accompanying statement of investments $365,366,429
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Cash used for collateral on futures 55,000
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Receivables and other assets:
Interest and dividends 702,199
Shares of beneficial interest sold 610,169
Other 8,343
-------------
Total assets 366,742,140
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LIABILITIES
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Bank overdraft 55,200
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Payables and other liabilities:
Wrapper agreement 4,400,298
Shares of beneficial interest redeemed 1,093,190
Distribution and service plan fees 73,645
Transfer and shareholder servicing agent fees 66,316
Shareholder communications 32,470
Trustees' compensation 17,578
Futures margins 12,594
Dividends 186
Other 24,900
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Total liabilities 5,776,377
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NET ASSETS $360,965,763
=============
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COMPOSITION OF NET ASSETS
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Paid-in capital $359,343,843
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Accumulated net investment income 750,361
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Accumulated net realized loss on investments (977,960)
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Net unrealized appreciation on investments and wrapper agreement 1,849,519
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NET ASSETS $360,965,763
=============
10 | OPPENHEIMER CAPITAL PRESERVATION FUND
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NET ASSET VALUE PER SHARE
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Class A Shares:
Net asset value and redemption price per share (based on net assets of
$95,064,437 and 9,506,846 shares of beneficial interest outstanding) $10.00
Maximum offering price per share (net asset value plus sales charge
of 3.50% of offering price) $10.36
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Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$11,050,455 and 1,105,192 shares of beneficial interest outstanding) $10.00
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Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$27,971,507 and 2,797,195 shares of beneficial interest outstanding) $10.00
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Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$226,550,979 and 22,654,513 shares of beneficial interest outstanding) $10.00
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Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $328,385 and 32,829 shares of beneficial interest outstanding) $10.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 | OPPENHEIMER CAPITAL PRESERVATION FUND
STATEMENT OF OPERATIONS Unaudited
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For the Six Months Ended April 30, 2004
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INVESTMENT INCOME
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Dividends from affiliated companies $5,825,910
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Interest 174,319
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Total investment income 6,000,229
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EXPENSES
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Management fees 1,303,364
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Distribution and service plan fees:
Class A 118,925
Class B 51,886
Class C 132,029
Class N 275,952
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Transfer and shareholder servicing agent fees:
Class A 189,821
Class B 35,305
Class C 81,267
Class N 301,824
Class Y 24
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Shareholder communications:
Class A 5,609
Class B 3,090
Class C 5,300
Class N 2,741
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Wrapper fees 290,165
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Trustees' compensation 9,053
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Custodian fees and expenses 4,844
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Other 58,758
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Total expenses 2,869,957
Less reduction to custodian expenses (188)
Less reimbursement of management fees (801,855)
Less voluntary waiver of transfer and shareholder servicing agent fees:
Class A (31,814)
Class B (17,539)
Class C (37,541)
-----------
Net expenses 1,981,020
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NET INVESTMENT INCOME 4,019,209
12 | OPPENHEIMER CAPITAL PRESERVATION FUND
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REALIZED AND UNREALIZED GAIN (LOSS)
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Net realized loss on:
Investments from affiliated companies $ (182,122)
Closing of futures contracts (105,200)
-----------
Net realized loss (287,322)
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Net change in unrealized appreciation (depreciation) on:
Investments from affiliated companies 185,361
Futures contracts 156,828
Wrapper agreement (768,242)
-----------
Net change in unrealized appreciation (426,053)
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,305,834
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER CAPITAL PRESERVATION FUND
STATEMENTS OF CHANGES IN NET ASSETS
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SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCTOBER 31,
(UNAUDITED) 2003
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OPERATIONS
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Net investment income $ 4,019,209 $ 6,214,999
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Net realized gain (loss) (287,322) 148,845
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Net change in unrealized appreciation (426,053) (104,304)
-----------------------------
Net increase in net assets resulting from operations 3,305,834 6,259,540
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DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
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Dividends from net investment income:
Class A (896,529) (1,969,962)
Class B (57,317) (104,775)
Class C (145,692) (249,835)
Class N (2,151,829) (3,927,405)
Class Y (7,265) (7,561)
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Distributions from net realized gain:
Class A (12,791) --
Class B (1,362) --
Class C (3,513) --
Class N (29,437) --
Class Y (99) --
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BENEFICIAL INTEREST TRANSACTIONS
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Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 337,244 16,147,988
Class B 1,065,291 4,781,818
Class C 3,566,768 11,965,018
Class N 6,958,985 100,792,528
Class Y (396,440) 722,428
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NET ASSETS
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Total increase 11,531,848 134,409,782
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Beginning of period 349,433,915 215,024,133
-----------------------------
End of period (including accumulated net investment income
(loss) of $750,361 and $(10,216), respectively) $360,965,763 $349,433,915
=============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER CAPITAL PRESERVATION FUND
FINANCIAL HIGHLIGHTS
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SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCT. 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999 1
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PER SHARE OPERATING DATA
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Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $10.00
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Income (loss) from investment operations:
Net investment income .11 .22 .42 .56 .57 .05
Net realized and unrealized gain (loss) (.02) -- .09 .02 .03 --
----------------------------------------------------------
Total from investment operations .09 .22 .51 .58 .60 .05
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Dividends and/or distributions to shareholders:
Dividends from net investment income (.09) (.22) (.41) (.55) (.60) (.05)
Distributions from net realized gain -- 2 -- -- -- -- --
Tax return of capital distribution -- -- (.10) (.03) -- --
----------------------------------------------------------
Total dividends and/or distributions
to shareholders (.09) (.22) (.51) (.58) (.60) (.05)
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Net asset value, end of period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $10.00
==========================================================
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TOTAL RETURN, AT NET ASSET VALUE 3 0.95% 2.22% 5.25% 6.00% 6.18% 0.55%
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RATIOS/SUPPLEMENTAL DATA
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Net assets, end of period (in thousands) $95,064 $94,727 $78,552 $50,179 $10,431 $ 100
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Average net assets (in thousands) $95,808 $92,035 $62,359 $33,976 $ 7,171 $ 100
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Ratios to average net assets: 4
Net investment income 2.31% 2.11% 3.90% 5.39% 5.55% 5.75%
Total expenses 1.60% 1.70% 1.71% 1.58% 1.96% 1.55%
Expenses after expense reimbursement
or fee waiver and reduction
to custodian expenses 1.08% 1.09% 1.18% 1.14% 1.51% 1.12%
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Portfolio turnover rate 10% 20% 47% 36% 89% 0%
1. For the period from September 27, 1999 (commencement of operations) to
October 31, 1999.
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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER CAPITAL PRESERVATION FUND
FINANCIAL HIGHLIGHTS Continued
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SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCT. 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999 1
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PER SHARE OPERATING DATA
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Net asset value, beginning of period $ 10.00 $10.00 $10.00 $10.00 $10.00 $10.00
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Income (loss) from investment operations:
Net investment income .07 .14 .37 .50 .51 .05
Net realized and unrealized gain (loss) (.02) -- .08 .02 .02 --
-------------------------------------------------------
Total from investment operations .05 .14 .45 .52 .53 .05
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Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) (.14) (.35) (.49) (.53) (.05)
Distributions from net realized gain -- 2 -- -- -- -- --
Tax return of capital distribution -- -- (.10) (.03) -- --
-------------------------------------------------------
Total dividends and/or distributions
to shareholders (.05) (.14) (.45) (.52) (.53) (.05)
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Net asset value, end of period $ 10.00 $10.00 $10.00 $10.00 $10.00 $10.00
=======================================================
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TOTAL RETURN, AT NET ASSET VALUE 3 0.56% 1.45% 4.59% 5.31% 5.43% 0.48%
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RATIOS/SUPPLEMENTAL DATA
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Net assets, end of period (in thousands) $11,050 $9,987 $5,205 $1,777 $ 331 $ 1
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Average net assets (in thousands) $10,430 $8,055 $3,337 $ 676 $ 82 $ 1
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Ratios to average net assets: 4
Net investment income 1.50% 1.31% 3.15% 4.61% 4.55% 5.10%
Total expenses 2.68% 2.77% 2.37% 2.34% 2.71% 2.25%
Expenses after expense reimbursement
or fee waiver and reduction
to custodian expenses 1.89% 1.87% 1.84% 1.90% 2.26% 1.81%
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Portfolio turnover rate 10% 20% 47% 36% 89% 0%
1. For the period from September 27, 1999 (commencement of operations) to
October 31, 1999.
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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER CAPITAL PRESERVATION FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCT. 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999 1
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PER SHARE OPERATING DATA
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Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $10.00 $10.00 $10.00
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Income (loss) from investment operations:
Net investment income .07 .14 .38 .51 .50 .05
Net realized and unrealized gain (loss) (.02) -- .07 .01 .03 --
----------------------------------------------------------
Total from investment operations .05 .14 .45 .52 .53 .05
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Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) (.14) (.35) (.49) (.53) (.05)
Distributions from net realized gain -- 2 -- -- -- -- --
Tax return of capital distribution -- -- (.10) (.03) -- --
----------------------------------------------------------
Total dividends and/or distributions to
shareholders (.05) (.14) (.45) (.52) (.53) (.05)
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Net asset value, end of period $ 10.00 $ 10.00 $ 10.00 $10.00 $10.00 $10.00
==========================================================
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TOTAL RETURN, AT NET ASSET VALUE 3 0.56% 1.43% 4.58% 5.31% 5.43% 0.48%
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RATIOS/SUPPLEMENTAL DATA
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Net assets, end of period (in thousands) $27,972 $24,405 $12,437 $1,845 $ 48 $ 1
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Average net assets (in thousands) $26,547 $19,334 $ 6,790 $ 652 $ 25 $ 1
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Ratios to average net assets: 4
Net investment income 1.53% 1.31% 3.07% 4.54% 4.65% 5.10%
Total expenses 2.60% 2.67% 2.35% 2.36% 2.71% 2.25%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.87% 1.87% 1.82% 1.92% 2.26% 1.81%
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Portfolio turnover rate 10% 20% 47% 36% 89% 0%
1. For the period from September 27, 1999 (commencement of operations) to
October 31, 1999.
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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER CAPITAL PRESERVATION FUND
FINANCIAL HIGHLIGHTS Continued
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SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCT. 31,
CLASS N (UNAUDITED) 2003 2002 2001 1
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PER SHARE OPERATING DATA
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Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .12 .23 .45 .38
Net realized and unrealized gain (loss) (.02) -- .07 -- 2
-------------------------------------------
Total from investment operations .10 .23 .52 .38
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Dividends and/or distributions to shareholders:
Dividends from net investment income (.10) (.23) (.42) (.36)
Distributions from net realized gain -- 2 -- -- --
Tax return of capital distribution -- -- (.10) (.02)
-------------------------------------------
Total dividends and/or distributions to shareholders (.10) (.23) (.52) (.38)
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Net asset value, end of period $ 10.00 $ 10.00 $ 10.00 $10.00
===========================================
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 0.98% 2.37% 5.29% 3.88%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $226,551 $219,590 $118,829 $7,311
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $222,032 $180,665 $ 63,485 $3,002
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.37% 2.16% 3.86% 5.18%
Total expenses 1.46% 1.45% 1.52% 1.64%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses 1.01% 1.01% 0.99% 1.20%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 20% 47% 36%
1. For the period from March 1, 2001 (inception of offering) to October 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER CAPITAL PRESERVATION FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2004 OCT. 31,
CLASS Y (UNAUDITED) 2003 2002 2001 2000 1999 1
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00 $10.00 $10.00 $10.00 $10.00 $10.00
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .19 .39 .41 .58 .59 .06
Net realized and unrealized gain (loss) (.07) (.08) .11 .03 .03 --
--------------------------------------------------------
Total from investment operations .12 .31 .52 .61 .62 .06
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.12) (.31) (.42) (.58) (.62) (.06)
Distributions from net realized gain -- 2 -- -- -- -- --
Tax return of capital distribution -- -- (.10) (.03) -- --
--------------------------------------------------------
Total dividends and/or distributions to
shareholders (.12) (.31) (.52) (.61) (.62) (.06)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.00 $10.00 $10.00 $10.00 $10.00 $10.00
========================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 1.24% 3.15% 5.35% 6.25% 6.43% 0.57%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 328 $ 725 $ 2 $ 2 $ 1 $ 1
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 586 $ 368 $ 2 $ 2 $ 1 $ 1
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.95% 2.53% 4.13% 5.73% 5.88% 6.19%
Total expenses 0.95% 0.96% 67.64% 43.02% 1.71% 1.15%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 0.50% 0.52% 1.09% 0.82% 1.26% 0.72%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 10% 20% 47% 36% 89% 0%
1. For the period from September 27, 1999 (commencement of operations) to
October 31, 1999.
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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER CAPITAL PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
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- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Capital Preservation Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek high current income while
seeking to maintain a stable value per share. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). Shares of the Fund are offered solely to
participant-directed qualified retirement plans and 403(b)(7) Custodial Plans
meeting specified criteria (the Plans). Plan participant purchases of Fund
shares are handled in accordance with each Plan's specific provisions. Plan
participants should contact their Plan administrator for details concerning how
they may purchase shares of the Fund.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold with a front-end sales charge of 3.50%, and reduced for
larger purchases. Class B, Class C and Class N shares are offered without a
front-end sales charge, but may be subject to a contingent deferred-sales charge
(CDSC) if redeemed within 5 years or 12 months or 18 months, respectively, of
purchase. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are offered without front-end and contingent-deferred
sales charges. Class Y shares are only available for plans that have special
arrangements with OppenheimerFunds Distributor, Inc. (the Distributor). 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. Expenses included in the accompanying financial statements reflect
the expenses of the Fund and do not include any expenses associated with the
Underlying Funds. Classes A, B, C and N have separate distribution and/or
service plans. No such plan has been adopted for Class Y shares. Class B shares
will automatically convert to Class A shares six years after the date of
purchase. The Fund assesses a 2% fee on the proceeds of fund shares that are
redeemed (either by selling or exchanging to another Oppenheimer fund) on less
than 12 months prior notice. The fee, which is retained by the Fund, is
accounted for as an addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
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WRAPPER AGREEMENT. The Fund will, under normal circumstances, enter into wrapper
agreements with insurance companies and banks. If an insurance wrap contract or
a synthetic Guaranteed Investment Contract, collectively, "wrapper agreement"
obligates the contract provider to maintain the book value of all or a portion
of the Fund's investments up to a specified maximum dollar amount, such contract
will be valued at its fair value. The book value of the covered assets is the
price the Fund paid for such securities plus interest on those assets accrued at
a rate calculated pursuant to a formula specified in the wrapper agreement
("crediting rate"). The crediting rate is normally reset monthly. However, if
there is a significant event, such as a material change in interest rates, the
crediting rate may be reset more frequently. The fair value of the contract
generally will be equal to the difference between the book value and the market
value of the Fund's
20 | OPPENHEIMER CAPITAL PRESERVATION FUND
portfolio investments subject to the contract. If the market value of the Fund's
portfolio investments is greater than its Book Value, the contract value will be
reflected as a liability of the Fund in the amount of the difference, i.e. a
negative value. If the market value of the Fund's portfolio investments is less
than its Book Value, the contract value will be reflected as an asset of the
Fund in the amount of the difference, i.e. a positive value, reflecting the
potential liability of the contract provider to the Fund. In performing its fair
value determination, the Board of Trustees will take into consideration the
creditworthiness of the contract provider and the ability and willingness of the
contract provider to pay amounts under the contract. As of April 30, 2004, the
Fund has entered into one wrapper agreement, with the Bank of America, NA. Total
fees paid for the six months ended April 30, 2004, to Bank of America, NA, for
this agreement were $284,597.
The staff of the Securities and Exchange Commission (SEC) has inquired of
registered "stable value" mutual funds, including this Fund, as to the valuation
methodology used by such funds to value their wrapper agreements. At the present
time, the Fund has not received any indication whether or when the SEC will take
any action as a result of their review of this matter. If the SEC determines
that the valuation method currently used by "stable value" mutual funds is no
longer acceptable, the Fund may be required to use a different accounting
methodology under which the fair value of the Fund's wrapper agreements could
fluctuate daily, and if that were to occur, the Fund would probably not be able
to maintain a stable net asset value per share. As a result, the Fund's net
asset value could be greater or less than $10 per share on a daily basis.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. The Fund will,
under normal circumstances, invest in Class Y shares of Oppenheimer Limited-Term
Government Fund, Oppenheimer Bond Fund, Oppenheimer U.S. Government Trust,
Oppenheimer Strategic Income Fund, and in shares of Oppenheimer Money Market
Fund, Inc. (collectively referred to as the "underlying funds"). The net asset
values of the underlying funds are determined as of the close of the New York
Stock Exchange, on each day the Exchange is open for trading.
The Fund may invest in certain portfolio securities, as described in the
Fund's prospectus. 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 may be valued primarily using
dealer-supplied valuations or a portfolio pricing service authorized by the
Board of Trustees. Securities (including restricted securities) for which market
quotations are not readily available are valued at their fair value. Foreign
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
21 | OPPENHEIMER CAPITAL PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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).
- --------------------------------------------------------------------------------
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.
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.
As of April 30, 2004, the Fund had no estimated unused capital loss
carryforward available for federal income tax purposes.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
April 30, 2004, the Fund's projected benefit obligations were increased by
$3,677 and payments of $1,186 were made to retired trustees, resulting in an
accumulated liability of $12,707 as of April 30, 2004.
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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund does purchase shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
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.
22 | OPPENHEIMER CAPITAL PRESERVATION FUND
- --------------------------------------------------------------------------------
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. The Board of Trustees, in an effort to
maintain a stable net asset value per share in the event of an additional
distribution, may declare, effective on the ex-dividend date of an additional
distribution, a reverse split of the shares of the Fund in an amount that will
cause the total number of shares held by each shareholder, including shares
acquired on reinvestment of that distribution, to remain the same as before that
distribution was paid. Also, in an effort to maintain a stable net asset value
per share, the Fund may distribute return of capital dividends. Income
distributions, if any, are declared daily and paid monthly. 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 U.S. generally
accepted accounting principles 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.
In the ordinary course of business, the Fund enters into contracts that
contain a variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these contracts and expects the risk of loss to be remote.
23 | OPPENHEIMER CAPITAL PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
SIX MONTHS ENDED APRIL 30, 2004 YEAR ENDED OCTOBER 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS A
Sold 2,367,429 $ 23,674,293 5,635,142 $ 56,351,417
Dividends and/or
distributions reinvested 89,586 895,868 197,233 1,972,335
Redeemed (2,423,291) (24,232,917) (4,217,576) (42,175,764)
---------------------------------------------------------
Net increase 33,724 $ 337,244 1,614,799 $ 16,147,988
=========================================================
- ------------------------------------------------------------------------------------------
CLASS B
Sold 325,057 $ 3,250,570 788,002 $ 7,880,026
Dividends and/or
distributions reinvested 5,820 58,204 10,502 105,024
Redeemed (224,348) (2,243,483) (320,322) (3,203,232)
---------------------------------------------------------
Net increase 106,529 $ 1,065,291 478,182 $ 4,781,818
=========================================================
- ------------------------------------------------------------------------------------------
CLASS C
Sold 1,004,876 $ 10,048,755 2,013,047 $ 20,130,482
Dividends and/or
distributions reinvested 14,800 148,007 24,997 249,971
Redeemed (662,999) (6,629,994) (841,543) (8,415,435)
---------------------------------------------------------
Net increase 356,677 $ 3,566,768 1,196,501 $ 11,965,018
=========================================================
- ------------------------------------------------------------------------------------------
CLASS N
Sold 6,039,498 $ 60,394,978 18,082,527 $180,825,268
Dividends and/or
distributions reinvested 215,458 2,154,583 394,329 3,943,292
Redeemed (5,559,057) (55,590,576) (8,397,603) (83,976,032)
---------------------------------------------------------
Net increase 695,899 $ 6,958,985 10,079,253 $100,792,528
=========================================================
- ------------------------------------------------------------------------------------------
CLASS Y
Sold 944 $ 9,440 71,476 $ 714,766
Dividends and/or
distributions reinvested 724 7,243 766 7,662
Redeemed (41,312) (413,123) -- --
---------------------------------------------------------
Net increase (decrease) (39,644) $ (396,440) 72,242 $ 722,428
=========================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2004, were
$46,356,274 and $34,324,256, respectively.
24 | OPPENHEIMER CAPITAL PRESERVATION FUND
- --------------------------------------------------------------------------------
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 Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, 0.60% of the next $200 million and 0.50% of average
annual net assets over $1 billion. The management fees payable by the Fund are
reduced by the management fees paid by the underlying Oppenheimer funds on
assets representing investments by the Fund in shares of those underlying funds.
That is done so that shareholders of the Fund do not pay direct and indirect
management fees in excess of 0.75%.
- --------------------------------------------------------------------------------
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 April 30, 2004, the Fund paid
$541,778 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 for
assets of $10 million or more. The Class Y shares are subject to the minimum
fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the 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 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
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 those 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. The Distributor also receives a service
fee of up to 0.25% per year under each plan. If either the Class B, Class C or
Class N plan is terminated by the Fund or by the shareholders of
25 | OPPENHEIMER CAPITAL PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
a class, the Board of Trustees and its independent trustees must determine
whether the Distributor shall be entitled to 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. The Distributor's
aggregate uncompensated expenses under the plan at April 30, 2004 for Class B,
Class C and Class N shares were $305,164, $404,805 and $899,579, respectively.
Fees incurred by the Fund under the plans are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and 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
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ---------------------------------------------------------------------------------------------
April 30, 2004 $126 $6,136 $28,937 $11,295 $94,648
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a negotiated price on a stipulated future
date. Futures contracts are traded on a commodity exchange. The Fund may buy and
sell futures contracts that relate to broadly based securities indices
(financial futures) or debt securities (interest rate futures) in order to gain
exposure to or protection from changes in market value of stocks and bonds or
interest rates. The Fund may also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts as a hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to market changes as it may
be more efficient or cost effective than actually buying securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or has expired.
26 | OPPENHEIMER CAPITAL PRESERVATION FUND
Cash held by the broker to cover initial margin requirements on open
futures contracts is noted in the Statement of Assets and Liabilities.
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a receivable and/or payable for the
daily mark to market for variation margin. Realized gains and losses are
reported in the Statement of Operations as the closing and expiration of futures
contracts. The net change in unrealized appreciation and depreciation is
reported on the Statement of Operations.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of April 30, 2004, the Fund had outstanding futures contracts as follows:
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATES CONTRACTS APRIL 30, 2004 (DEPRECIATION)
- -------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
U.S. Treasury Nts., 2 yr. 6/30/04 6 $1,275,281 $ (9,772)
---------
CONTRACTS TO SELL
U.S. Treasury Nts., 5 yr. 6/21/04 23 2,528,563 54,359
U.S. Treasury Nts., 10 yr. 6/21/04 27 2,983,500 68,664
---------
123,023
---------
$113,251
=========
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of April 30, 2004, investments in securities included issues that are
illiquid or restricted. Restricted securities are often 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. A Wrapper Agreement is considered
to be an illiquid security. 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.
- --------------------------------------------------------------------------------
7. 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
27 | OPPENHEIMER CAPITAL PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. BORROWING AND LENDING ARRANGEMENTS Continued
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 six
months ended or at April 30, 2004.
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.
28 | OPPENHEIMER CAPITAL PRESERVATION FUND
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 registrant has determined that the
registrant does not have an audit committee financial expert serving on its
Audit Committee. In this regard, no member of the Audit Committee was identified
as having all of the technical attributes identified in Instruction 2(b) to Item
3 of Form N-CSR to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
Item 4. Principal Accountant Fees and Services
Not applicable to semiannual reports.
Item 5. Not applicable
Item 6. Schedule of Investments
Not applicable
Item 7. Not applicable
Item 8. Not applicable
Item 9. Submission of Matters to a Vote of Security Holders
The Board is responsible for approving nominees for election as
trustees. To assist in this task, the Board has designated the Audit Committee
as the nominating committee for the Board. It reviews and recommends nominees to
the Board. The Committee is comprised entirely of disinterested trustees as
defined in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the
Committee in nominating candidates for election as independent Trustees of the
Registrant. The Registrant's Board has adopted a written charter for the
Committee. A current copy of the Audit Committee charter is available to
shareholders on the OppenheimerFunds website at www.oppenheimerfunds.com.
Under the current policy, if the Board determines that a vacancy
exists or is likely to exist on the Board, the Audit Committee of the Board will
consider candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for
trustees includes a number of factors. In screening candidates for board
membership, whether the candidate is suggested by Board members, shareholders or
others, the Committee considers the candidate's professional experience,
soundness of judgment, integrity, ability to make independent, analytical
inquiries, collegiality, willingness and ability to devote the time required to
perform Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
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 April 30, 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)