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 811-07857
OPPENHEIMER REAL ASSET 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
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: AUGUST 31
Date of reporting period: SEPTEMBER 1, 2004 - FEBRUARY 28, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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SECTOR ALLOCATION ON COMMODITY-LINKED INVESTMENTS
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Energy 73.0%
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Agriculture 10.0
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Industrial Metals 9.0
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Livestock 6.0
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Precious Metals 2.0
Portfolio holdings and allocations are subject to change. Percentages are as of
February 28, 2005, and are dollar-weighed based on percentages of
commodity-linked investments. Commodity-linked investments are investments whose
return is based upon the price movements (whether up or down) of a particular
commodity or basket of commodities. The Fund's allocation of its investments
within each sector of the GSCI may differ (at times significantly) from the
sector weightings of the GSCI. The Fund is not an index Fund.
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PORTFOLIO ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Government Obligations 26.5%
Mortgage-Backed Obligations 25.9
Corporate Bonds 24.1
Commodity-Linked Notes 11.2
Cash Equivalents 10.5
Asset-Backed Securities 1.1
Foreign Government Obligations 0.5
Municipals 0.2
Portfolio holdings and allocations are subject to change. Percentages are as of
February 28, 2005, and are based on total investments.
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9 | OPPENHEIMER REAL ASSET FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. INVESTORS SHOULD CONSIDER THE
FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER CHARGES AND EXPENSES CAREFULLY
BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND OTHER INFORMATION
ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL ADVISOR, CALLING US
AT 1.800.525.7048 OR VISITING OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
Please note that Oppenheimer Real Asset Fund(R) is non-diversified and invests a
substantial portion of its assets in derivative instruments that entail
potentially higher volatility and risk of loss than traditional equity or debt
securities. The Fund is not intended as a complete investment program and is
intended for investors with long-term investment goals who are willing to accept
this risk.
CLASS A shares of the Fund were first publicly offered on 3/31/97. Class A
returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 3/31/97. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "since inception" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 3/31/97. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
10 | OPPENHEIMER REAL ASSET FUND
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 3/31/97. Class Y
shares are offered principally to certain institutional investors under special
agreement with the Distributor and are not subject to a sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER REAL ASSET FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. The following examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended February 28, 2005.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
12 | OPPENHEIMER REAL ASSET FUND
exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(9/1/04) (2/28/05) FEBRUARY 28, 2005
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Class A Actual $ 1,000.00 $ 1,157.00 $ 7.13
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Class A Hypothetical 1,000.00 1,018.20 6.68
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Class B Actual 1,000.00 1,152.70 11.80
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Class B Hypothetical 1,000.00 1,013.88 11.04
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Class C Actual 1,000.00 1,152.30 11.42
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Class C Hypothetical 1,000.00 1,014.23 10.69
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Class N Actual 1,000.00 1,155.70 9.12
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Class N Hypothetical 1,000.00 1,016.36 8.53
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Class Y Actual 1,000.00 1,160.90 4.83
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Class Y Hypothetical 1,000.00 1,020.33 4.52
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended February 28, 2005 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 1.33%
- ----------------------------
Class B 2.20
- ----------------------------
Class C 2.13
- ----------------------------
Class N 1.70
- ----------------------------
Class Y 0.90
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Transfer Agent that can be terminated at any time, without advance
notice. The "Financial Highlights" tables in the Fund's financial statements,
included in this report, also show the gross expense ratios, without such
waivers or reimbursements.
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13 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS February 28, 2005 / Unaudited
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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ASSET-BACKED SECURITIES--1.4%
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Chase Funding Mortgage Loan Asset-Backed Certificates, Home Equity
Mtg. Obligations, Series 2003-1, Cl. 1A3, 3.14%, 7/25/23 $ 1,023,077 $ 1,021,835
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Chase Manhattan Auto Owner Trust, Automobile Loan Pass-Through
Certificates, Series 2002-A, Cl. A4, 4.24%, 9/15/08 709,604 714,098
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DaimlerChrysler Auto Trust, Automobile Loan Pass-Through Certificates,
Series 2004-B, Cl. A2, 2.48%, 2/8/07 1 3,300,000 3,293,676
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M&I Auto Loan Trust, Automobile Loan Certificates, Series 2003-1, Cl. A2,
1.60%, 7/20/06 153,695 153,564
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NC Finance Trust, Collateralized Mtg. Obligations, Series 1999-I, Cl. ECFD,
8.75%, 1/25/29 1 645,555 172,283
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Nissan Auto Receivables Owner Trust, Automobile Receivable Nts.,
Series 2002-A, Cl. A4, 4.28%, 10/16/06 504,859 506,637
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Salomon Smith Barney Mutual Fund Fee Trust XIV, Asset-Backed Nts.,
Series 2000-14, Cl. 2, 8.61%, 9/30/08 3,332,797 1,066,495
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USAA Auto Owner Trust, Automobile Loan Asset-Backed Nts.,
Series 2004-2, Cl. A2, 2.41%, 2/15/07 3,260,000 3,251,237
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Wells Fargo Home Equity Trust, Collateralized Mtg. Obligations,
Series 2004-2, Cl. AI1B, 2.94%, 9/25/18 5,592,451 5,556,439
-----------------
Total Asset-Backed Securities (Cost $18,529,095) 15,736,264
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MORTGAGE-BACKED OBLIGATIONS--33.2%
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GOVERNMENT AGENCY--31.5%
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FHLMC/FNMA/SPONSORED--31.5%
Fannie Mae Whole Loan, Collateralized Mtg. Obligations Pass-Through
Certificates, Trust 2004-W9, Cl. 2A2, 7%, 2/25/44 617,261 652,368
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Federal Home Loan Mortgage Corp.:
7%, 9/1/33 918,342 973,356
8%, 4/1/16 290,925 307,716
9%, 8/1/22-5/1/25 72,839 80,924
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Federal Home Loan Mortgage Corp., Interest-Only Stripped Mtg.-Backed
Security, Series 177, Cl. B, 0.07%, 7/1/26 2 1,822,726 355,742
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Federal National Mortgage Assn.:
5%, 3/1/20-3/1/35 3 63,433,000 63,853,313
5.50%, 3/1/20 3 48,256,000 49,432,240
6%, 3/1/20-3/1/35 3 47,518,000 48,827,281
6.50%, 12/1/28 2,266,383 2,365,425
6.50%, 4/1/35 3 69,326,000 72,207,327
7%, 7/1/28-7/1/34 13,338,637 14,076,487
7%, 3/5/35 3 102,026,000 107,605,598
8.50%, 7/1/32 71,833 77,910
14 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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FHLMC/FNMA/SPONSORED Continued
Federal National Mortgage Assn., Interest-Only Stripped Mtg.-Backed Security:
Trust 294, Cl. 2, (1.399)%, 2/1/28 2 $ 1,524,586 $ 303,757
Trust 321, Cl. 2, (4.645)%, 3/1/32 2 6,848,355 1,412,249
Trust 333, Cl. 2, (0.308)%, 3/1/33 2 2,825,896 630,852
-----------------
363,162,545
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GNMA/GUARANTEED--0.0%
Government National Mortgage Assn., 8.50%, 8/15/17-12/15/17 105,566 115,060
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PRIVATE--1.7%
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COMMERCIAL--1.7%
Bank of America Mortgage Securities, Inc., Collateralized Mtg.
Obligations Pass-Through Certificates:
Series 2004-2, Cl. 2A1, 6.50%, 7/20/32 4,755,149 4,836,096
Series 2004-E, Cl. 2A9, 3.712%, 6/25/34 2,467,690 2,471,006
Series 2004-G, Cl. 2A1, 2.469%, 8/25/34 1,324,286 1,322,925
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Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mtg.
Obligations, Series 2003-T10, Cl. A1, 4%, 3/13/40 1,224,384 1,203,013
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GE Capital Commercial Mortgage Corp., Commercial Mtg. Obligations:
Series 2003-C1, Cl. A2, 4.093%, 1/10/38 1,081,000 1,068,349
Series 2004-C3, Cl. A2, 4.433%, 7/10/39 2,050,000 2,051,283
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GS Mortgage Securities Corp. II, Commercial Mtg. Pass-Through
Certificates, Series 2004-GG2, Cl. A3, 4.602%, 8/10/38 1,370,000 1,380,097
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J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial
Mtg. Pass-Through Certificates, Series 2003-ML1A, Cl. A1, 3.972%, 3/12/39 760,794 746,682
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Wells Fargo Mortgage-Backed Securities Trust, Collateralized Mtg.
Obligations, Series 2004-N, Cl. A10, 3.803%, 8/25/34 1 4,654,658 4,665,634
-----------------
19,745,085
-----------------
Total Mortgage-Backed Obligations (Cost $384,268,009) 383,022,690
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U.S. GOVERNMENT OBLIGATIONS--33.9%
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Federal Home Loan Bank Unsec. Bonds:
3.125%, 11/15/06 90,000 89,234
4.125%, 5/13/05 4 25,000,000 25,064,450
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Federal Home Loan Mortgage Corp. Unsec. Nts.:
1.75%, 5/15/05 47,330,000 47,227,531
2.875%, 9/15/05 30,000,000 29,965,980
4.25%, 6/15/05 5 18,900,000 18,977,452
7%, 7/15/05 5 50,000,000 50,769,950
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Federal National Mortgage Assn. Unsec. Nts.:
1.50%, 9/21/05 5 20,000,000 19,827,240
7%, 7/15/05 5 50,000,000 50,769,950
15 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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U.S. GOVERNMENT OBLIGATIONS Continued
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U.S. Treasury Bills:
2.41%, 4/7/05 $ 50,000,000 $ 49,872,500
2.59%, 5/12/05 50,000,000 49,738,200
2.69%, 6/9/05 50,000,000 49,628,100
-----------------
Total U.S. Government Obligations (Cost $392,506,069) 391,930,587
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FOREIGN GOVERNMENT OBLIGATIONS--0.6%
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Ontario (Province of) Nts., 7%, 8/4/05 4,200,000 4,268,834
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Quebec (Province of) Unsec. Debs., 6.50%, 1/17/06 2,800,000 2,877,717
-----------------
Total Foreign Government Obligations (Cost $7,160,386) 7,146,551
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CORPORATE BONDS AND NOTES--30.8%
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CONSUMER DISCRETIONARY--3.3%
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AUTOMOBILES--1.3%
DaimlerChrysler NA Holdings Corp., 7.75% Nts., 6/15/05 2,700,000 2,738,300
- ---------------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
7.50% Unsec. Nts., 3/15/05 1,000,000 1,001,458
7.60% Nts., 8/1/05 1,900,000 1,930,816
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General Motors Acceptance Corp.:
7.50% Nts., 7/15/05 3,200,000 3,244,685
8.75% Medium-Term Nts., Series SMN1, 7/15/05 1,150,000 1,170,316
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General Motors Nova Scotia Finance Co., 6.85% Nts., 10/15/08 1,205,000 1,215,587
- ---------------------------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), 6.50% Sr. Nts., 5/15/06 5 1,215,000 1,237,676
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Volkswagen Credit, Inc., 2.72% Nts., 6/13/05 6,7 2,000,000 2,000,536
-----------------
14,539,374
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HOTELS, RESTAURANTS & LEISURE--0.2%
Carnival Corp., 7.05% Unsec. Nts., 5/15/05 2,600,000 2,620,423
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MEDIA--1.3%
Chancellor Media CCU, 8% Sr. Unsec. Nts., 11/1/08 825,000 912,302
- ---------------------------------------------------------------------------------------------------------------------------------
Gannett Co., Inc., 4.95% Unsec. Nts., 4/1/05 4,165,000 4,171,335
- ---------------------------------------------------------------------------------------------------------------------------------
New York Times Co. (The), 7.625% Unsec. Unsub. Nts., 3/15/05 2,620,000 2,623,547
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News America, Inc., 6.625% Sr. Nts., 1/9/08 443,000 469,783
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Time Warner Cos., Inc., 8.18% Nts., 8/15/07 5 890,000 970,236
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Viacom, Inc.:
6.40% Sr. Nts., 1/30/06 5 675,000 691,293
7.15% Sr. Unsec. Nts., 5/20/05 4,450,000 4,485,609
7.75% Sr. Unsec. Nts., 6/1/05 500,000 505,580
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Walt Disney Co. (The), 5.375% Sr. Unsec. Nts., 6/1/07 410,000 420,667
-----------------
15,250,352
16 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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MULTILINE RETAIL--0.1%
Kohl's Corp., 6.70% Unsec. Nts., 2/1/06 $ 1,210,000 $ 1,242,601
- ---------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--0.4%
Lowe's Cos., Inc., 7.50% Sr. Unsec. Nts., 12/15/05 4,400,000 4,539,291
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--1.6%
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BEVERAGES--0.4%
Diageo Capital plc, 6.125% Unsec. Nts., 8/15/05 4,435,000 4,494,234
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.3%
Kroger Co. (The), 7.625% Sr. Nts., 9/15/06 460,000 484,360
- ---------------------------------------------------------------------------------------------------------------------------------
Price/Costco Wholesale Corp., 7.125% Sr. Nts., 6/15/05 2,500,000 2,526,983
-----------------
3,011,343
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FOOD PRODUCTS--0.9%
General Mills, Inc., 3.875% Nts., 11/30/07 515,000 510,156
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Nabisco, Inc., 6.85% Nts., 6/15/05 700,000 707,058
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Sara Lee Corp., 6.40% Nts., Series B, 6/9/05 3,500,000 3,527,094
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Unilever Capital Corp., 6.875% Sr. Unsec. Unsub. Nts., 11/1/05 5,883,000 6,015,668
-----------------
10,759,976
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ENERGY--0.5%
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OIL & GAS--0.5%
BP Capital Markets plc:
4% Nts., 4/29/05 500,000 500,968
4.625% Nts., 5/27/05 3,900,000 3,915,811
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Union Texas Petroleum Holdings, Inc., 8.375% Sr. Unsec. Nts., 3/15/05 1,000,000 1,001,753
-----------------
5,418,532
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FINANCIALS--16.6%
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CAPITAL MARKETS--0.6%
Bank of New York Co., Inc. (The), 3.75% Unsec. Unsub. Nts., 2/15/08 5 470,000 465,012
- ---------------------------------------------------------------------------------------------------------------------------------
Bankers Trust Corp., 8.25% Unsec. Sub. Nts., 5/1/05 5 1,800,000 1,814,881
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Credit Suisse First Boston, Inc. (USA), 5.75% Unsec. Nts., 4/15/07 600,000 621,142
- ---------------------------------------------------------------------------------------------------------------------------------
Northern Trust Co., 6.70% Sub. Nts., 9/15/05 3,600,000 3,658,036
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Spear, Leeds & Kellogg LP, 8.25% Nts., 8/15/05 6 1,050,000 1,073,956
-----------------
7,633,027
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COMMERCIAL BANKS--7.0%
ABN Amro Bank NV (Chicago), 7.25% Unsec. Sub. Nts., 5/31/05 5,600,000 5,656,946
- ---------------------------------------------------------------------------------------------------------------------------------
American Express Bank FSB, 2.59% Nts., 10/17/05 7 2,525,000 2,525,603
- ---------------------------------------------------------------------------------------------------------------------------------
Bank of America Corp.:
3.875% Nts., 1/15/08 5 500,000 497,432
7.875% Sr. Unsec. Nts., 5/16/05 1,050,000 1,060,603
17 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
Bayerische Landesbank Girozentrale, 6.375% Unsec. Sub. Nts., 10/15/05 $ 4,800,000 $ 4,897,306
- ---------------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston, Inc. (New York), 2.46% Nts., 9/9/05 7 3,800,000 3,801,231
- ---------------------------------------------------------------------------------------------------------------------------------
First Tennessee Bank, 2.46% Certificate of Deposit Nts., 3/21/06 7 4,500,000 4,497,885
- ---------------------------------------------------------------------------------------------------------------------------------
First Tennessee Bank (Southern US), 2.76% Nts., 11/18/05 7 1,000,000 1,000,093
- ---------------------------------------------------------------------------------------------------------------------------------
FleetBoston Financial Corp., 4.20% Nts., 11/30/07 430,000 431,359
- ---------------------------------------------------------------------------------------------------------------------------------
Household Finance Corp.:
5% Sr. Unsec. Nts., 5/15/05 400,000 401,247
6.50% Unsec. Nts., 1/24/06 515,000 528,451
8% Sr. Nts., 5/9/05 4,600,000 4,643,176
- ---------------------------------------------------------------------------------------------------------------------------------
Huntington National Bank, 2.56% Nts., 12/1/05 7 4,000,000 4,003,212
- ---------------------------------------------------------------------------------------------------------------------------------
Key Bank NA, 7.25% Unsec. Sub. Nts., 6/1/05 2,650,000 2,677,043
- ---------------------------------------------------------------------------------------------------------------------------------
KeyCorp, 4.625% Sr. Nts., Series G, 5/16/05 2,900,000 2,910,127
- ---------------------------------------------------------------------------------------------------------------------------------
Manufacturers & Traders Trust, 7% Unsec. Sub. Nts., 7/1/05 5,650,000 5,717,828
- ---------------------------------------------------------------------------------------------------------------------------------
National City Corp., 7.20% Unsec. Sub. Nts., 5/15/05 5,710,000 5,756,656
- ---------------------------------------------------------------------------------------------------------------------------------
Nordea Bank Finland NY, 6.50% Unsec. Sub. Nts., 1/15/06 3,000,000 3,079,566
- ---------------------------------------------------------------------------------------------------------------------------------
PNC Bank NA, 7.875% Sub. Nts., 4/15/05 5 1,630,000 1,639,232
- ---------------------------------------------------------------------------------------------------------------------------------
Santander Financial Issuances Ltd., 7.875% Unsec. Sub. Nts., 4/15/05 5,200,000 5,230,576
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. Bancorp, 4.75% Sr. Nts., Series N, 6/30/05 3,500,000 3,517,542
- ---------------------------------------------------------------------------------------------------------------------------------
Wachovia Corp.:
6.80% Unsec. Sub. Nts., 6/1/05 2,360,000 2,381,235
7.45% Sr. Unsec. Unsub. Nts., 7/15/05 2,900,000 2,944,872
- ---------------------------------------------------------------------------------------------------------------------------------
Washington Mutual, Inc.:
2.40% Unsec. Nts., 11/3/05 4,500,000 4,469,198
4.375% Nts., 1/15/08 515,000 516,654
7.25% Sr. Nts., 8/15/05 750,000 763,074
- ---------------------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co., 7.25% Sr. Nts., 8/24/05 4,300,000 4,378,901
- ---------------------------------------------------------------------------------------------------------------------------------
Wells Fargo Financial, Inc., 7% Sr. Unsec. Nts., 11/1/05 700,000 716,386
-----------------
80,643,434
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.2%
American Express Credit Corp., 7.45% Sr. Nts., 8/10/05 7 2,000,000 2,037,072
- ---------------------------------------------------------------------------------------------------------------------------------
SLM Corp., 2.75% Nts., 12/1/05 300,000 298,349
-----------------
2,335,421
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--3.8%
American Express Co., 5.50% Nts., 9/12/06 5 770,000 790,194
- ---------------------------------------------------------------------------------------------------------------------------------
Associates Corp. of North America:
6.20% Sr. Nts., 5/16/05 2,000,000 2,013,136
6.625% Sr. Nts., 6/15/05 100,000 100,959
- ---------------------------------------------------------------------------------------------------------------------------------
Bank One Corp.:
7% Jr. Unsec. Sub. Nts., 7/15/05 600,000 608,543
7.625% Sr. Unsec. Unsub. Nts., 8/1/05 2,400,000 2,445,276
18 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES Continued
Chase Manhattan Corp., 7.125% Sub. Debs., 3/1/05 $ 350,000 $ 350,000
- ---------------------------------------------------------------------------------------------------------------------------------
CIT Group, Inc., 4.125% Sr. Nts., 2/21/06 4,900,000 4,926,215
- ---------------------------------------------------------------------------------------------------------------------------------
Citigroup Global Markets Holdings, Inc., 6.25% Sr. Unsec. Nts., 6/15/05 2,300,000 2,322,085
- ---------------------------------------------------------------------------------------------------------------------------------
Citigroup, Inc., 3.50% Nts., 2/1/08 800,000 787,186
- ---------------------------------------------------------------------------------------------------------------------------------
Danske Bank AS, 7.25% Sub. Nts., 6/15/05 6 4,200,000 4,251,169
- ---------------------------------------------------------------------------------------------------------------------------------
Export Development Canada, 4.55% Nts., 6/30/05 4,000,000 4,023,304
- ---------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The):
4.125% Nts., 1/15/08 5 1,000,000 1,000,534
7.625% Nts., 8/17/05 1,000,000 1,021,027
- ---------------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase & Co., 4% Nts., 2/1/08 800,000 795,290
- ---------------------------------------------------------------------------------------------------------------------------------
MBNA Corp., 5.625% Nts., 11/30/07 500,000 517,180
- ---------------------------------------------------------------------------------------------------------------------------------
Mellon Funding Corp., 7.50% Sr. Unsec. Nts., 6/15/05 5,100,000 5,160,297
- ---------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 4% Nts., Series B, 11/15/07 410,000 409,447
- ---------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley, 7.75% Sr. Nts., 6/15/05 4,450,000 4,509,772
- ---------------------------------------------------------------------------------------------------------------------------------
SLM Corp.:
2.90% Nts., Series A, 7/1/05 4,400,000 4,397,505
2.67% Nts., Series A, 9/15/05 7 700,000 700,850
- ---------------------------------------------------------------------------------------------------------------------------------
Tyco Capital Corp., 6.625% Sr. Unsec. Nts., 6/15/05 2,915,000 2,945,331
-----------------
44,075,300
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE--4.2%
Allstate Corp., 7.875% Sr. Unsec. Nts., 5/1/05 5 3,300,000 3,325,809
- ---------------------------------------------------------------------------------------------------------------------------------
Allstate Financial Global Funding LLC, 7.125% Nts., 9/26/05 6 2,030,000 2,072,194
- ---------------------------------------------------------------------------------------------------------------------------------
Dresdner Bank, New York, 6.625% Unsec. Sub. Nts., 9/15/05 3,800,000 3,866,340
- ---------------------------------------------------------------------------------------------------------------------------------
Equitable Life Assurance Society (USA), 6.95% Surplus Nts., 12/1/05 6 4,700,000 4,814,238
- ---------------------------------------------------------------------------------------------------------------------------------
Hartford Financial Services Group, Inc. (The), 7.75% Sr. Unsec. Nts., 6/15/05 5,370,000 5,437,544
- ---------------------------------------------------------------------------------------------------------------------------------
Jackson National Life Global Funding, 2.64% Nts., 3/11/05 6,7 2,500,000 2,499,890
- ---------------------------------------------------------------------------------------------------------------------------------
John Hancock Global Funding II:
5% Nts., 7/27/07 6 760,000 773,614
2.738% Nts., 9/6/05 6,7 4,700,000 4,707,793
- ---------------------------------------------------------------------------------------------------------------------------------
Lincoln National Corp., 7.25% Unsec. Debs., 5/15/05 6,970,000 7,033,490
- ---------------------------------------------------------------------------------------------------------------------------------
Marsh & McLennan Cos., Inc., 3.625% Nts., 2/15/08 1,130,000 1,100,174
- ---------------------------------------------------------------------------------------------------------------------------------
MetLife, Inc., 3.911% Nts., 5/15/05 5,750,000 5,762,823
- ---------------------------------------------------------------------------------------------------------------------------------
Monumental Global Funding II, 3.85% Nts., 3/3/08 6 1,120,000 1,112,072
- ---------------------------------------------------------------------------------------------------------------------------------
Pricoa Global Funding I, 3.90% Nts., 12/15/08 6 1,800,000 1,774,694
- ---------------------------------------------------------------------------------------------------------------------------------
St. Paul Travelers Cos., Inc. (The), 7.875% Sr. Unsec. Nts., 4/15/05 2,350,000 2,363,223
- ---------------------------------------------------------------------------------------------------------------------------------
Teachers Insurance and Annuity Assn. Global Markets, 3.875% Sr.
Unsec. Nts., 1/22/08 6 1,750,000 1,736,562
-----------------
48,380,460
19 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE--0.1%
Spieker Properties LP, 6.75% Unsec. Unsub. Nts., 1/15/08 $ 800,000 $ 852,521
- ---------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.7%
Abbey National plc, 6.69% Sub. Nts., 10/17/05 5,350,000 5,459,317
- ---------------------------------------------------------------------------------------------------------------------------------
Countrywide Home Loans, Inc.:
3.50% Nts., Series K, 12/19/05 1,700,000 1,701,865
5.50% Nts., Series K, 2/1/07 5 635,000 652,389
6.875% Sr. Unsec. Unsub. Nts., Series D, 9/15/05 115,000 117,057
-----------------
7,930,628
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE--1.4%
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.3%
Boston Scientific Corp., 6.625% Unsec. Nts., 3/15/05 4,000,000 4,004,892
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.3%
Anthem, Inc., 4.875% Unsub. Nts., 8/1/05 420,000 421,868
- ---------------------------------------------------------------------------------------------------------------------------------
Kaiser Foundation Hospitals, 9.55% Debs., 7/15/05 3,400,000 3,477,615
-----------------
3,899,483
- ---------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--0.8%
Bristol-Myers Squibb Co., 4.75% Nts., 10/1/06 875,000 887,325
- ---------------------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc., 6.75% Unsec. Unsub. Nts., 9/19/05 1 2,750,000 2,820,125
- ---------------------------------------------------------------------------------------------------------------------------------
Pharmacia Corp., 5.75% Sr. Unsec. Nts., 12/1/05 5,000,000 5,091,300
-----------------
8,798,750
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--2.3%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--0.9%
Boeing Capital Corp., 5.75% Sr. Nts., 2/15/07 161,000 166,311
- ---------------------------------------------------------------------------------------------------------------------------------
Boeing Co., 6.625% Unsec. Nts., 6/1/05 3,900,000 3,929,960
- ---------------------------------------------------------------------------------------------------------------------------------
Honeywell International, Inc.:
6.125% Unsec. Unsub. Nts., 7/1/05 4,321,000 4,360,541
6.875% Nts., 10/3/05 1,325,000 1,350,989
- ---------------------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp., 6.875% Unsec. Unsub. Nts., 11/1/06 259,000 270,734
-----------------
10,078,535
- ---------------------------------------------------------------------------------------------------------------------------------
AIRLINES--0.1%
Southwest Airlines Co., 8% Unsec. Nts., 3/1/05 1,000,000 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.0%
Emerson Electric Co., 7.875% Unsec. Nts., 6/1/05 415,000 420,058
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.6%
General Electric Capital Corp.:
5.625% Sr. Unsec. Unsub. Nts., 5/13/05 350,000 351,795
6.80% Nts., Series A, 11/1/05 2,200,000 2,250,679
7.50% Nts., Series A, 5/15/05 2,700,000 2,725,013
8.85% Debs., 4/1/05 500,000 502,263
20 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES Continued
Security Capital Group, Inc., 6.95% Sr. Unsec. Nts., 6/15/05 $ 1,500,000 $ 1,516,559
-----------------
7,346,309
- ---------------------------------------------------------------------------------------------------------------------------------
MACHINERY--0.6%
Caterpillar Financial Services Corp., 4.38% Nts., Series F, 6/15/05 1,000,000 1,002,330
- ---------------------------------------------------------------------------------------------------------------------------------
John Deere Capital Corp., 4.125% Sr. Nts., Series D, 7/15/05 5,295,000 5,314,057
-----------------
6,316,387
- ---------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL--0.1%
Consolidated Rail Corp., 7.07% Sec. Nts., Series 92-A, 4/1/05 300,000 300,975
- ---------------------------------------------------------------------------------------------------------------------------------
Norfolk Southern Railway Co., 7% Equipment Trust Nts., Series J, 6/15/05 650,000 657,087
-----------------
958,062
- ---------------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--0.7%
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.6%
Compaq Computer Corp., 7.65% Unsec. Nts., 8/1/05 1,999,000 2,035,254
- ---------------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co., 7.15% Nts., 6/15/05 4,800,000 4,855,738
-----------------
6,890,992
- ---------------------------------------------------------------------------------------------------------------------------------
IT SERVICES--0.1%
Computer Sciences Corp., 7.50% Unsec. Unsub. Nts., 8/8/05 1,111,000 1,130,834
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--2.4%
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.0%
ALLTEL Corp., 6.75% Unsec. Debs., 9/15/05 2,405,000 2,448,610
- ---------------------------------------------------------------------------------------------------------------------------------
Ameritech Capital Funding Corp., 7.50% Unsec. Unsub. Debs., 4/1/05 5 2,000,000 2,006,918
- ---------------------------------------------------------------------------------------------------------------------------------
BellSouth Telecommunications, Inc., 6.50% Unsec. Nts., 6/15/05 1,340,000 1,352,940
- ---------------------------------------------------------------------------------------------------------------------------------
British Telecommunications plc, 7.875% Nts., 12/15/05 5,000,000 5,161,130
- ---------------------------------------------------------------------------------------------------------------------------------
Citizens Communications Co., 7.625% Sr. Unsub. Nts., 8/15/08 515,000 560,063
- ---------------------------------------------------------------------------------------------------------------------------------
Pacific Bell, 6.25% Nts., 3/1/05 980,000 980,000
- ---------------------------------------------------------------------------------------------------------------------------------
Southern New England Telecommunications Corp., 7% Nts., Series 2, 8/15/05 200,000 203,311
- ---------------------------------------------------------------------------------------------------------------------------------
Southwestern Bell Telephone Co., 6.625% Unsec. Nts., 4/1/05 1,908,000 1,913,415
- ---------------------------------------------------------------------------------------------------------------------------------
Telefonica Europe BV, 7.35% Nts., 9/15/05 4,600,000 4,697,387
- ---------------------------------------------------------------------------------------------------------------------------------
Verizon Communications, Inc., 6.60% Nts., Series A, 9/22/05 1,250,000 1,269,668
- ---------------------------------------------------------------------------------------------------------------------------------
Verizon Global Funding Corp., 6.75% Sr. Unsec. Unsub. Nts., 12/1/05 2,000,000 2,047,464
- ---------------------------------------------------------------------------------------------------------------------------------
Verizon Wireless Capital LLC, 5.375% Unsub. Nts., 12/15/06 860,000 881,550
-----------------
23,522,456
21 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.4%
AT&T Wireless Services, Inc., 6.875% Sr. Unsec. Unsub. Nts., 4/18/05 $ 3,500,000 $ 3,516,534
- ---------------------------------------------------------------------------------------------------------------------------------
Vodafone Group plc, 3.95% Unsec. Nts., 1/30/08 860,000 855,446
-----------------
4,371,980
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES--2.0%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.9%
Boston Edison Co., 3.16% Unsec. Debs., 10/15/05 7 4,000,000 4,010,256
- ---------------------------------------------------------------------------------------------------------------------------------
Carolina Power & Light Co., 7.50% Sr. Nts., 4/1/05 2,250,000 2,257,848
- ---------------------------------------------------------------------------------------------------------------------------------
Consolidated Edison Co. of New York, 6.625% Unsec. Debs.,
Series 2000-C, 12/15/05 2,700,000 2,766,776
- ---------------------------------------------------------------------------------------------------------------------------------
Detroit Edison Co. (The), 5.05% Sr. Nts., 10/1/05 2,400,000 2,424,122
- ---------------------------------------------------------------------------------------------------------------------------------
DTE Energy Co., 6.45% Sr. Unsub. Nts., 6/1/06 615,000 633,725
- ---------------------------------------------------------------------------------------------------------------------------------
Florida Power & Light Co., 6.875% Sec. Bond, 12/1/05 150,000 153,789
- ---------------------------------------------------------------------------------------------------------------------------------
FPL Group Capital, Inc., 1.875% Unsec. Unsub. Nts., 3/30/05 4,450,000 4,446,734
- ---------------------------------------------------------------------------------------------------------------------------------
Georgia Power Co., 5.50% Sr. Unsec. Unsub. Nts., Series C, 12/1/05 2,700,000 2,741,378
- ---------------------------------------------------------------------------------------------------------------------------------
Hydro-Quebec, 7.01% Gtd. Nts., Series B, 3/23/05 500,000 501,195
- ---------------------------------------------------------------------------------------------------------------------------------
MidAmerican Energy Holdings Co., 4.625% Sr. Nts., 10/1/07 910,000 915,305
- ---------------------------------------------------------------------------------------------------------------------------------
Progress Energy, Inc., 6.75% Sr. Nts., 3/1/06 465,000 478,248
- ---------------------------------------------------------------------------------------------------------------------------------
South Carolina Electric & Gas Co., 7.50% Sec. Bond, 6/15/05 500,000 506,061
-----------------
21,835,437
- ---------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.1%
Consolidated Natural Gas Co., 7.375% Unsec. Debs., 4/1/05 1,080,000 1,083,560
- ---------------------------------------------------------------------------------------------------------------------------------
NiSource Finance Corp., 3.20% Nts., 11/1/06 680,000 668,224
-----------------
1,751,784
-----------------
Total Corporate Bonds and Notes (Cost $356,817,135) 356,052,876
- ---------------------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES--14.4%
- ---------------------------------------------------------------------------------------------------------------------------------
AIG:
Goldman Sachs Commodity Index Total Return Linked Security,
2.295%, 11/2/05 8 15,000,000 20,080,016
Goldman Sachs Commodity Index Total Return Linked Security,
3.096%, 1/26/06 8 24,000,000 26,799,323
- ---------------------------------------------------------------------------------------------------------------------------------
Cargill, Inc.:
Goldman Sachs Commodity Index Total Return Linked Security,
1.098%, 3/18/05 8 18,000,000 27,402,865
Goldman Sachs Commodity Index Total Return Linked Security,
1.189%, 3/4/05 8 23,000,000 41,682,169
- ---------------------------------------------------------------------------------------------------------------------------------
Core Investment Grade Bond Trust I, Pass-Through Certificates,
Series 2002-1, 4.727%, 11/30/07 5 9,700,000 9,787,349
22 | OPPENHEIMER REAL ASSET FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
STRUCTURED NOTES Continued
- --------------------------------------------------------------------------------------------------------------------------------
Eksportfinans AS, Goldman Sachs Commodity Index Excess Return
Linked Nts., 7%, 11/25/31 8 $ 18,000,000 $ 17,841,600
- --------------------------------------------------------------------------------------------------------------------------------
Koch Industries, Inc.:
Goldman Sachs Energy Total Return Index Linked Nts., 2.735%, 3/1/06 7,11 10,000,000 10,369,140
Goldman Sachs Energy Total Return Index Linked Nts., 2.735%, 5/3/05 7,11 7,000,000 12,566,155
-----------------
Total Structured Notes (Cost $124,841,163) 166,528,617
DATE STRIKE CONTRACTS
- ---------------------------------------------------------------------------------------------------------------------------------
OPTIONS PURCHASED--0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
Crude Oil Futures, 3/21/05 Put 9 3/16/05 $ 43 289 5,780
Crude Oil Futures, 3/21/05 Put 9 3/16/05 48 290 113,100
-----------------
Total Options Purchased (Cost $900,277) 118,880
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--0.2%
- ---------------------------------------------------------------------------------------------------------------------------------
TX Public Finance Authority Revenue Bonds, Unemployment
Compensation-B, 2%, 6/15/05 (Cost $2,497,606) $ 2,500,000 2,492,125
- ---------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES--6.4%
- ---------------------------------------------------------------------------------------------------------------------------------
Amsterdam Funding Corp., 2.53%, 3/9/05 10 5,000,000 4,997,189
- ---------------------------------------------------------------------------------------------------------------------------------
Barton Capital Corp., 2.54%, 3/16/05 10 5,000,000 4,994,708
- ---------------------------------------------------------------------------------------------------------------------------------
Eiffel Funding LLC, 2.54%, 3/1/05 10 5,000,000 5,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Fairway Finance Corp., 2.60%, 4/1/05 10 5,000,000 4,988,806
- ---------------------------------------------------------------------------------------------------------------------------------
Gemini Securitization Corp., 2.62%, 4/7/05 10 5,000,000 4,986,536
- ---------------------------------------------------------------------------------------------------------------------------------
GOVCO, Inc., 2.59%, 4/4/05 10 5,000,000 4,987,769
- ---------------------------------------------------------------------------------------------------------------------------------
Legacy Capital LLC, 2.63%, 4/4/05 10 5,000,000 4,987,581
- ---------------------------------------------------------------------------------------------------------------------------------
M&I Marshall & Ilsley Bank, 1.57%, 3/10/05 4,450,000 4,449,766
- ---------------------------------------------------------------------------------------------------------------------------------
Neptune Funding Corp., 2.65%, 4/8/05 10 5,000,000 4,986,014
- ---------------------------------------------------------------------------------------------------------------------------------
Old Line Funding Corp., 2.60%, 4/5/05 10 5,000,000 4,987,361
- ---------------------------------------------------------------------------------------------------------------------------------
Perry Global Funding LLC, Series A, 2.61%, 4/5/05 10 5,000,000 4,987,313
- ---------------------------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 2.61%, 3/28/05 10 4,722,000 4,712,934
- ---------------------------------------------------------------------------------------------------------------------------------
Solitaire Funding LLC, 2.64%, 4/11/05 10 5,000,000 4,984,967
- ---------------------------------------------------------------------------------------------------------------------------------
Victory Receivables Corp., 2.54%, 3/10/05 10 5,000,000 4,996,825
- ---------------------------------------------------------------------------------------------------------------------------------
Windmill Funding Corp., 2.63%, 4/11/05 10 5,000,000 4,985,024
-----------------
Total Short-Term Notes (Cost $74,032,793) 74,032,793
23 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--7.2%
- ---------------------------------------------------------------------------------------------------------------------------------
Undivided interest of 18.43% in joint repurchase agreement (Principal Amount/
Value $447,079,000, with a maturity value of $447,111,289) with UBS Warburg LLC,
2.60%, dated 2/28/05, to be repurchased at $82,419,952 on 3/1/05, collateralized
by Federal National Mortgage Assn., 6%, 2/1/34, with a value of
$456,527,652 (Cost $82,414,000) $ 82,414,000 $ 82,414,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,443,966,533) 128.1% 1,479,475,383
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (28.1) (324,389,035)
--------------------------------------
NET ASSETS 100.0% $ 1,155,086,348
======================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. The aggregate value of illiquid securities as of February
28, 2005 was $10,951,718, which represents 0.95% of the Fund's net assets. See
Note 8 of Notes to Financial Statements.
2. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income securities
increase in price when interest rates decline. The principal amount of the
underlying pool represents the notional amount on which current interest is
calculated. The price of these securities is typically more sensitive to changes
in prepayment rates than traditional mortgage-backed securities (for example,
GNMA pass-throughs). Interest rates disclosed represent current yields based
upon the current cost basis and estimated timing and amount of future cash
flows. These securities amount to $2,702,600 or 0.23% of the Fund's net assets
as of February 28, 2005.
3. When-issued security or forward commitment to be delivered and settled after
February 28, 2005. See Note 1 of Notes to Financial Statements.
4. A sufficient amount of securities has been designated to cover outstanding
written put options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE
SUBJECT TO PUT DATE PRICE RECEIVED SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
Cocoa Futures, 5/13/05 41 3/4/05 $ 1,450 $ 5,996 $ 410
5. All or a portion of the security is held in collateralized accounts to cover
initial margin requirements on open futures sales contracts with an aggregate
market value of $68,711,959. See Note 5 of Notes to Financial Statements.
6. 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 $26,816,718 or 2.32% of the Fund's net
assets as of February 28, 2005.
7. Represents the current interest rate for a variable or increasing rate
security.
8. Security is linked to the Goldman Sachs Commodity Index, the Goldman Sachs
Commodity Excess Return Index or the Goldman Sachs Commodity Index Total Return
Index. The indexes currently contain twenty-four commodities from the sectors of
energy, metals, livestock and agricultural products. Individual components in
the index are weighted by their respective world production values.
9. Non-income producing security.
10. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $69,583,027, or 6.02% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Trustees.
11. Security is linked to the Goldman Sachs Energy Total Return Index. The index
currently contains six commodities from the energy sector. Individual components
in the index are weighted by their respective world production values.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
February 28, 2005
- ----------------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,443,966,533)--see accompanying statement of investments $ 1,479,475,383
- ----------------------------------------------------------------------------------------------------------------
Cash 2,592,480
- ----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 15,156,406
Interest and principal paydowns 8,824,404
Futures margins 6,929,687
Investments sold 1,907,440
Other 16,014
------------------
Total assets 1,514,901,814
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $5,996)
- --see accompanying statement of investments 410
- ----------------------------------------------------------------------------------------------------------------
Unrealized depreciation on swap contracts 42,324
- ----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $343,395,560 purchased on a
when-issued basis or forward commitment) 355,903,177
Shares of beneficial interest redeemed 3,164,232
Distribution and service plan fees 376,279
Transfer and shareholder servicing agent fees 181,802
Shareholder communications 72,299
Trustees' compensation 15,512
Other 59,431
------------------
Total liabilities 359,815,466
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,155,086,348
==================
- ----------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 150,248
- ----------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,181,215,069
- ----------------------------------------------------------------------------------------------------------------
Accumulated net investment income 696,519
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (119,899,913)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 92,924,425
------------------
NET ASSETS $ 1,155,086,348
==================
25 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $791,017,356 and
102,549,549 shares of beneficial interest outstanding) $ 7.71
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 8.18
- ----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $100,759,343 and 13,222,821 shares
of beneficial interest outstanding) $ 7.62
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $163,817,046
and 21,601,964 shares
of beneficial interest outstanding) $ 7.58
- ----------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $13,790,283 and 1,801,105 shares
of beneficial interest outstanding) $ 7.66
- ----------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $85,702,320 and 11,072,529 shares of beneficial interest outstanding) $ 7.74
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended February 28, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 10,812,227
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 4,303,851
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 878,451
Class B 435,696
Class C 666,503
Class N 25,823
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 702,374
Class B 133,237
Class C 165,266
Class N 17,260
Class Y 6,014
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 45,392
Class B 11,853
Class C 11,964
Class N 883
Class Y 333
- --------------------------------------------------------------------------------
Custodian fees and expenses 14,562
- --------------------------------------------------------------------------------
Trustees' compensation 13,606
- --------------------------------------------------------------------------------
Other 70,876
---------------
Total expenses 7,503,944
Less reduction to custodian expenses (14,171)
Less payments and waivers of expenses (476)
---------------
Net expenses 7,489,297
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,322,930
27 | OPPENHEIMER REAL ASSET FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments (including premiums on options exercised) $ 31,654,769
Closing of futures contracts 12,406,844
Closing and expiration of option contracts written 419,427
Swap contracts 443,319
---------------
Net realized gain 44,924,359
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 11,283,886
Futures contracts 81,569,864
Option contracts 8,498
Swap contracts (354,022)
---------------
Net change in unrealized appreciation 92,508,226
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 140,755,515
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER REAL ASSET FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
(UNAUDITED) 2004
- ----------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net investment income $ 3,322,930 $ 322,013
- ----------------------------------------------------------------------------------------------------------------
Net realized gain 44,924,359 140,358,876
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 92,508,226 (31,403,796)
------------------------------------
Net increase in net assets resulting from operations 140,755,515 109,277,093
- ----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (2,487,253) (51,684)
Class B (12,897) --
Class C (66,431) --
Class N (20,094) --
Class Y (317,347) (64,204)
- ----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (176,519,066) (9,145,151)
Class B (21,692,641) (1,194,188)
Class C (33,840,405) (1,409,006)
Class N (2,633,667) (77,055)
Class Y (14,050,224) (793,204)
- ----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 232,151,617 328,433,627
Class B 32,382,663 31,994,068
Class C 68,969,165 63,172,169
Class N 6,694,202 5,907,317
Class Y 43,072,280 16,401,022
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Total increase 272,385,417 542,450,804
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 882,700,931 340,250,127
------------------------------------
End of period (including accumulated net investment income
of $696,519 and $277,611, respectively) $ 1,155,086,348 $ 882,700,931
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER REAL ASSET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.13 $ 7.51 $ 6.15 $ 6.93 $ 8.18 $ 5.74
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .03 1 .01 .03 .29 .45 .32
Net realized and unrealized gain (loss) 1.00 1.85 1.38 (.71) (1.21) 2.40
-------------------------------------------------------------------------------
Total from investment operations 1.03 1.86 1.41 (.42) (.76) 2.72
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) -- 2 (.05) (.36) (.43) (.28)
Distributions from net realized gain (2.42) (.24) -- -- (.06) --
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.45) (.24) (.05) (.36) (.49) (.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.71 $ 9.13 $ 7.51 $ 6.15 $ 6.93 $ 8.18
===============================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 15.70% 25.44% 23.08% (5.54)% (9.83)% 48.55%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 791,017 $ 638,254 $ 238,828 $ 148,319 $ 117,331 $ 161,547
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 718,576 $ 413,618 $ 193,837 $ 115,458 $ 139,631 $ 126,143
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.82% 0.22% 0.46% 4.73% 5.73% 4.81%
Total expenses 1.33% 5 1.40% 5,6 1.49% 5 1.68% 5,6 1.51% 5 1.50% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 35% 7 87% 61% 49% 105% 93%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchase and sales transactions of To Be
Announced (TBA) mortgage-related securities of $2,123,162,922 and
$2,117,459,387, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER REAL ASSET FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.05 $ 7.51 $ 6.16 $ 6.95 $ 8.20 $ 5.75
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 1,2 (.05) (.04) .23 .40 .27
Net realized and unrealized gain (loss) .99 1.83 1.40 (.70) (1.22) 2.40
------------------------------------------------------------------------------
Total from investment operations .99 1.78 1.36 (.47) (.82) 2.67
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 2 -- (.01) (.32) (.37) (.22)
Distributions from net realized gain (2.42) (.24) -- -- (.06) --
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.42) (.24) (.01) (.32) (.43) (.22)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.62 $ 9.05 $ 7.51 $ 6.16 $ 6.95 $ 8.20
==============================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 15.27% 24.32% 22.12% (6.38)% (10.49)% 47.44%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 100,759 $ 78,125 $ 37,589 $ 24,738 $ 21,321 $ 27,156
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 88,433 $ 52,436 $ 32,101 $ 20,032 $ 26,295 $ 21,416
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.05)% (0.69)% (0.41)% 4.10% 4.99% 4.03%
Total expenses 2.20% 2.32% 2.44% 2.45% 2.27% 2.27%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 2.31% 2.36% N/A 5,6 N/A 5 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 35% 7 87% 61% 49% 105% 93%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchase and sales transactions of To Be
Announced (TBA) mortgage-related securities of $2,123,162,922 and
$2,117,459,387, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER REAL ASSET FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.02 $ 7.48 $ 6.14 $ 6.93 $ 8.17 $ 5.73
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 1,2 (.03) (.03) .23 .41 .27
Net realized and unrealized gain (loss) .98 1.81 1.38 (.70) (1.22) 2.39
------------------------------------------------------------------------------
Total from investment operations .98 1.78 1.35 (.47) (.81) 2.66
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- 2 -- (.01) (.32) (.37) (.22)
Distributions from net realized gain (2.42) (.24) -- -- (.06) --
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.42) (.24) (.01) (.32) (.43) (.22)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.58 $ 9.02 $ 7.48 $ 6.14 $ 6.93 $ 8.17
==============================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 15.23% 24.42% 22.04% (6.39)% (10.43)% 47.43%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 163,817 $ 110,728 $ 36,531 $ 18,115 $ 12,588 $ 20,256
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 135,347 $ 68,392 $ 25,746 $ 11,771 $ 16,165 $ 16,536
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.02% (0.62)% (0.43)% 3.99% 4.95% 4.03%
Total expenses 2.13% 2.24% 2.40% 2.45% 2.26% 2.27%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 2.36% N/A 5,6 N/A 5 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 35% 7 87% 61% 49% 105% 93%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchase and sales transactions of To Be
Announced (TBA) mortgage-related securities of $2,123,162,922 and
$2,117,459,387, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER REAL ASSET FUND
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.08 $ 7.50 $ 6.15 $ 6.99 $ 7.67
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 2 -- .07 .30 .22
Net realized and unrealized gain (loss) 1.00 1.82 1.36 (.78) (.73)
------------------------------------------------------------------------
Total from investment operations 1.02 1.82 1.43 (.48) (.51)
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.02) -- (.08) (.36) (.17)
Distributions from net realized gain (2.42) (.24) -- -- --
------------------------------------------------------------------------
Total dividends and/or distributions to shareholders (2.44) (.24) (.08) (.36) (.17)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.66 $ 9.08 $ 7.50 $ 6.15 $ 6.99
========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 15.57% 24.90% 23.63% (6.47)% (6.75)%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 13,790 $ 8,206 $ 1,578 $ 314 $ 61
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 10,720 $ 4,516 $ 1,001 $ 146 $ 14
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.46% (0.17)% 0.27% 3.57% 5.95%
Total expenses 1.70% 1.84% 1.83% 1.94% 1.88%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 1.80% 1.63% N/A 5,6 N/A 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 35% 7 87% 61% 49% 105%
1. For the period from March 1, 2001 (inception of offering) to August 31, 2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
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.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. The portfolio turnover rate excludes purchase and sales transactions of To Be
Announced (TBA) mortgage-related securities of $2,123,162,922 and
$2,117,459,387, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER REAL ASSET FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 2005 AUGUST 31,
CLASS Y (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.15 $ 7.52 $ 6.15 $ 6.94 $ 8.16 $ 5.72
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .05 1 .05 .06 .32 .25 .36
Net realized and unrealized gain (loss) 1.02 1.84 1.39 (.73) (.95) 2.38
------------------------------------------------------------------------------
Total from investment operations 1.07 1.89 1.45 (.41) (.70) 2.74
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.06) (.02) (.08) (.38) (.46) (.30)
Distributions from net realized gain (2.42) (.24) -- -- (.06) --
------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.48) (.26) (.08) (.38) (.52) (.30)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.74 $ 9.15 $ 7.52 $ 6.15 $ 6.94 $ 8.16
==============================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 16.09% 25.84% 23.69% (5.36)% (9.21)% 49.20%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 85,702 $ 47,387 $ 25,724 $ 6,908 $ 1,741 $ 1
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 61,203 $ 31,449 $ 15,755 $ 3,420 $ 868 $ 1
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.26% 0.65% 0.83% 3.95% 6.46% 5.28%
Total expenses 0.90% 0.97% 1.08% 1.27% 1.38% 4 1.09%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 N/A 5 1.26% 1.17% N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 35% 6 87% 61% 49% 105% 93%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Added since August 31, 2001 to reflect expenses before reduction to custodian
expenses and voluntary waiver of transfer agent fees.
5. Reduction to custodian expenses less than 0.01%.
6. The portfolio turnover rate excludes purchase and sales transactions of To Be
Announced (TBA) mortgage-related securities of $2,123,162,922 and
$2,117,459,387, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Real Asset Fund (the Fund) is a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek total return. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Advisor). The Sub-Advisor is
Oppenheimer Real Asset Management, Inc. (the Manager), a wholly owned subsidiary
of the Advisor.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
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 due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class 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) within 30 days of their purchase. 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.
- --------------------------------------------------------------------------------
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. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. 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 and domestic securities whose values have been
35 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
materially affected by what the Advisor identifies as a significant event
occurring before the Fund's assets are valued but after the close of their
respective exchanges will be fair valued. Fair value is determined in good faith
using consistently applied procedures under the supervision of the Board of
Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
STRUCTURED NOTES. The Fund invests in structured notes whose market values,
interest rates and/or redemption prices are linked to the performance of
underlying foreign currencies, interest rate spreads, stock market indices,
prices of individual securities, commodities or other financial instruments or
the occurrence of other specific events. The structured notes are often
leveraged, increasing the volatility of each note's market value relative to the
change in the underlying linked financial element or event. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying financial statements. The Fund records a realized gain or loss when
a structured note is sold or matures. As of February 28, 2005, the market value
of these securities comprised 14.4% of the Fund's net assets and resulted in
unrealized cumulative gains of $41,687,454.
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of February 28, 2005, the Fund had purchased
$343,395,560 of securities on a when-issued basis or forward commitment.
In connection with its ability to purchase or sell securities on a
when-issued basis, the Fund may enter into forward roll transactions with
respect to mortgage-related securities. Forward roll transactions require the
sale of securities for delivery in the current month, and a simultaneous
agreement with the same counterparty to repurchase similar (same type, coupon
and maturity) but not identical securities on a specified future date. The Fund
records the incremental difference between the forward purchase and sale of each
forward roll as realized gain (loss) on investments or as fee income in the case
of such transactions that have an associated fee in lieu of a difference in the
forward purchase and sale price.
36 | OPPENHEIMER REAL ASSET FUND
Risks of entering into forward roll transactions include the potential
inability of the counterparty to meet the terms of the agreement; the potential
of the Fund to receive inferior securities at redelivery as compared to the
securities sold to the counterparty; counterparty credit risk; and the potential
pay down speed variance between the mortgage-related pools.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Advisor, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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 February 28, 2005, it is estimated that the Fund will not utilize
any capital loss carryforward to offset realized capital gains. During the year
ended August 31, 2004, the Fund did not utilize any capital loss carryforward to
offset realized capital gains.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred
compensation plan for independent trustees that enables trustees to elect to
defer receipt of all or a portion of the annual compensation they are entitled
to receive from the Fund. 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 purchases 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
37 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared and paid quarterly. Capital gain distributions, if any, are declared
and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the
Federal Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
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.
38 | OPPENHEIMER REAL ASSET FUND
- --------------------------------------------------------------------------------
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 FEBRUARY 28, 2005 YEAR ENDED AUGUST 31, 2004
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------
CLASS A
Sold 41,774,842 $ 355,146,494 60,864,784 $ 526,237,973
Dividends and/or
distributions reinvested 23,570,029 156,387,529 1,021,225 7,760,573
Redeemed (32,726,129) (279,382,406) 1 (23,760,653) (205,564,919)
------------------------------------------------------------------------
Net increase 32,618,742 $ 232,151,617 38,125,356 $328,433,627
========================================================================
- ---------------------------------------------------------------------------------------------------------------
CLASS B
Sold 4,236,034 $ 35,722,608 6,075,661 $ 52,623,081
Dividends and/or
distributions reinvested 2,800,745 18,372,889 136,911 1,037,789
Redeemed (2,448,931) (21,712,834) 1 (2,581,998) (21,666,802)
------------------------------------------------------------------------
Net increase 4,587,848 $ 32,382,663 3,630,574 $ 31,994,068
========================================================================
- ---------------------------------------------------------------------------------------------------------------
CLASS C
Sold 8,578,990 $ 70,952,960 10,218,639 $ 87,296,277
Dividends and/or
distributions reinvested 4,122,772 26,921,710 148,152 1,118,549
Redeemed (3,381,253) (28,905,505) 1 (2,968,721) (25,242,657)
------------------------------------------------------------------------
Net increase 9,320,509 $ 68,969,165 7,398,070 $ 63,172,169
========================================================================
- ---------------------------------------------------------------------------------------------------------------
CLASS N
Sold 870,297 $ 7,115,609 818,178 $ 6,975,731
Dividends and/or
distributions reinvested 394,817 2,601,847 10,161 77,023
Redeemed (368,157) (3,023,254) 1 (134,749) (1,145,437)
------------------------------------------------------------------------
Net increase 896,957 $ 6,694,202 693,590 $ 5,907,317
========================================================================
- ---------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 8,043,227 $ 62,080,741 3,051,718 $ 26,560,158
Dividends and/or
distributions reinvested 1,200,651 7,995,152 28,193 213,586
Redeemed (3,347,945) (27,003,613) 1 (1,324,757) (10,372,722)
------------------------------------------------------------------------
Net increase 5,895,933 $ 43,072,280 1,755,154 $ 16,401,022
========================================================================
1. Net of Redemption Fees of $54,057, $6,653, $10,178, $809 and $4,601 for
Class A, Class B, Class C, Class N, and Class Y respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than U.S. government obligations and short-term obligations, for the six months
ended February 28, 2005, were $115,971,923 and $120,502,692, respectively.
There were purchases of
39 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES Continued
$89,933 and sales of $18,112,776 of U.S. government and government agency
obligations for the six months ended February 28, 2005. In addition, there were
purchases of $2,123,162,922 and sales of $2,117,459,387 of To Be Announced
(TBA) mortgage-related securities for the six months ended February 28, 2005.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Advisor were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 1.00% of the first $200 million of average annual net assets,
0.90% of the next $200 million, 0.85% of the next $200 million, 0.80% of the
next $200 million, and 0.75% of net assets in excess of $800 million. Under the
sub-advisory agreement, the Advisor pays the Sub-Advisor the following annual
fees: 0.50% of the first $200 million of average annual net assets, 0.45% of
the next $200 million, 0.425% of the next $200 million, 0.40% of the next $200
million, and 0.375% of the net assets in excess of $800 million.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Advisor a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Advisor, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended February 28, 2005,
the Fund paid $978,821 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum 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.
- --------------------------------------------------------------------------------
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
40 | OPPENHEIMER REAL ASSET FUND
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 and
Class C shares and 0.25% per year on Class N 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 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 February 28,
2005 for Class B, Class C and Class N shares were $3,362,523, $1,964,098 and
$152,890, 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
- --------------------------------------------------------------------------------------------------------------
February 28, 2005 $ 621,030 $ 31,624 $ 170,633 $ 91,123 $ 11,375
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. 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. During the six months ended February 28, 2005, OFS waived
$149 and $327 for Class B and Class N shares, respectively. This undertaking
may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
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), debt securities (interest rate futures) and various
commodities (commodity index futures) inherent in the Fund's holdings of
structured notes. The Fund may also buy or write put or call options on these
futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities, decreases in market value of portfolio securities, or
decreases in commodity prices. The Fund may
41 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS Continued
also purchase futures contracts without owning the underlying fixed-income
security as an efficient or cost effective means to gain exposure to changes in
interest rates, commodity prices or market indices. The Fund will then either
purchase the underlying fixed-income security or close out the futures
contract.
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 expires.
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 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.
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 February 28, 2005, the Fund had outstanding futures contracts as follows:
VALUATION AS OF UNREALIZED
EXPIRATION NUMBER OF FEBRUARY 28, APPRECIATION
CONTRACT DESCRIPTION DATES CONTRACTS 2005 (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
AGRICULTURE
Corn 5/13/05 1,662 $ 18,510,525 $ 1,438,955
Cotton #2 5/6/05 336 8,613,360 545,025
Soybean 5/13/05 473 14,710,300 1,872,851
Wheat 5/12/05-5/13/05 1,775 30,925,750 1,843,269
ENERGY
Brent Crude Oil 4/14/05 2,012 99,956,160 10,017,741
Crude Oil 3/21/05 4,145 214,503,750 18,864,111
Gas Oil 4/12/05 765 34,329,375 3,142,292
Heating Oil 3/31/05 842 51,426,329 6,757,961
Natural Gas 3/29/05 1,152 77,529,600 4,987,795
Unleaded Gasoline 3/31/05 1,010 59,888,556 1,895,377
LIVESTOCK
Feeder Cattle 4/28/05 116 5,679,650 20,940
Lean Hogs 4/14/05 580 17,220,200 717,335
Live Cattle 4/29/05 706 24,300,520 (796,728)
42 | OPPENHEIMER REAL ASSET FUND
VALUATION AS OF UNREALIZED
EXPIRATION NUMBER OF FEBRUARY 28, APPRECIATION
CONTRACT DESCRIPTION DATES CONTRACTS 2005 (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE Continued
INDUSTRIAL METALS
Copper 5/26/05 588 $ 22,027,950 $ 1,239,620
London Metals Exchange
Aluminum High Grade 4/20/05 584 28,112,300 1,294,785
London Metals Exchange Lead 3/16/05-4/20/05 260 6,308,700 306,950
London Metals Exchange Nickel 3/16/05-4/20/05 101 9,932,760 1,020,881
London Metals Exchange Zinc 3/16/05-4/20/05 219 7,543,900 744,154
PRECIOUS METALS
Gold 100 oz. 4/27/05 330 14,440,800 70,563
Silver 5/26/05 42 1,552,950 63,893
SOFTS
Cocoa 5/13/05 125 2,162,500 89,891
Coffee 5/18/05 33 1,504,181 60,776
Orange Juice 5/10/05 215 2,854,125 (16,811)
Sugar #11 4/29/05 491 5,042,766 (140,564)
GOVERNMENTS
U.S. Treasury Nts., 10 yr. 6/21/05 808 88,779,000 (355,983)
---------------
55,685,079
===============
CONTRACTS TO SELL
GOVERNMENTS
U.S. Long Bonds 3/21/05 203 22,958,031 (194,386)
U.S. Treasury Nts., 2 yr. 3/31/05-6/30/05 1,881 390,805,391 1,342,847
U.S. Treasury Nts., 5 yr. 3/21/05-6/21/05 824 88,802,969 618,772
---------------
1,767,233
---------------
$ 57,452,312
===============
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Contracts subject to call, expiration
date, exercise price,
43 | OPPENHEIMER REAL ASSET FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. OPTION ACTIVITY Continued
premium received and market value are detailed in a note to the Statement of
Investments. Options written are reported as a liability in the Statement of
Assets and Liabilities. Realized gains and losses are reported in the Statement
of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security or commodity
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market price of the security or commodity
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of not being able to enter into a closing transaction if a
liquid secondary market does not exist.
Written option activity for the six months ended February 28, 2005 was as
follows:
CALL OPTIONS PUT OPTIONS
----------------------------- ------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- ---------------------------------------------------------------------------------------------------------------
Options outstanding as of
August 31, 2004 90 $ 19,162 100 $ 8,026
Options written 545 298,070 1,580 310,277
Options closed or expired (273) (204,739) (1,599) (309,457)
Options exercised (362) (112,493) (40) (2,850)
----------------------------------------------------------------------
Options outstanding as of
February 28, 2005 -- $ -- 41 $ 5,996
======================================================================
- --------------------------------------------------------------------------------
7. TOTAL RETURN SWAP CONTRACTS
The Fund may enter into a total return swap transaction to maintain a total
return on a particular investment, or portion of its portfolio, or for other
non-speculative purposes. Because the principal amount is not exchanged, it
represents neither an asset nor a liability to either counterparty, and is
referred to as notional. The Fund records an increase or decrease to unrealized
gain (loss), in the amount due to or owed by the Fund at termination or
settlement. Total return swaps are subject to risks (if the counterparty fails
to meet its obligations).
As of February 28, 2005, the Fund had entered into the following total return
swap agreements:
PAID BY RECEIVED BY
NOTIONAL THE FUND AT THE FUND AT TERMINATION UNREALIZED
SWAP COUNTERPARTY AMOUNT FEB. 28, 2005 FEB. 28, 2005 DATE DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
Value of
total return of
Goldman Sachs One-Month Lehman Brothers
Capital Markets LP $7,410,000 LIBOR BBA CMBS Index 3/31/05 $ 42,324
Index abbreviations are as follows:
CMBS Commercial Mortgage Backed Securities Markets
LIBOR BBA London-Interbank Offered Rate British Bankers Association
44 | OPPENHEIMER REAL ASSET FUND
- --------------------------------------------------------------------------------
8. ILLIQUID SECURITIES
As of February 28, 2005, 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 will not invest more than 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities.
- --------------------------------------------------------------------------------
9. LITIGATION
A consolidated amended complaint has been filed as putative derivative and
class actions against the Advisor, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 30 present and former Directors or Trustees
and 8 present and former officers of the funds. This complaint, initially filed
in the U.S. District Court for the Southern District of New York on January 10,
2005 and amended on March 4, 2005, consolidates into a single action and amends
six individual previously-filed putative derivative and class action
complaints. Like those prior complaints, the complaint alleges that the Advisor
charged excessive fees for distribution and other costs, improperly used assets
of the funds in the form of directed brokerage commissions and 12b-1 fees to
pay brokers to promote sales of the funds, and failed to properly disclose the
use of assets of the funds to make those payments in violation of the
Investment Company Act of 1940 and the Investment Advisers Act of 1940. Also,
like those prior complaints, the complaint further alleges that by permitting
and/or participating in those actions, the Directors/Trustees and the Officers
breached their fiduciary duties to shareholders of the funds under the
Investment Company Act of 1940 and at common law. The complaint seeks
unspecified compensatory and punitive damages, rescission of the funds'
investment advisory agreements, an accounting of all fees paid, and an award of
attorneys' fees and litigation expenses.
The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability. The Oppenheimer
defendants believe that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them and that no estimate can yet be
made with any degree of certainty as to the amount or range of any potential
loss.
45 | OPPENHEIMER REAL ASSET FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS 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 1.800.525.7048, (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 is required to file 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 Fund's voting record is available (i) without charge, upon
request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form
N-PX filing on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
46 | OPPENHEIMER REAL ASSET FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
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. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The registrant's Board of Trustees has established a Governance Committee,
one function of which is to create and oversee the process by which shareholders
can submit nominees for positions on the Board. The Governance Committee has not
yet adopted a charter, but anticipates that it will do so in the coming months.
The Committee has temporarily adopted the process previously adopted by the
Audit Committee regarding shareholder submission of nominees for board
positions. Shareholders may submit names of individuals, accompanied by complete
and properly supported resumes, for the Governance Committee's consideration by
mailing such information to the Committee in care of the Fund. The Committee may
consider such persons at such time as it meets to consider possible nominees.
The Committee, however, reserves sole discretion to determine the candidates for
trustees and independent trustees to recommend to the Board and/or shareholders
and may identify candidates other than those submitted by Shareholders. The
Committee may, but need not, consider the advice and recommendation of the
Manager and its affiliates in selecting nominees. The full Board elects new
trustees except for those instances when a shareholder vote is required.
Shareholders who desire to communicate with the Board should address
correspondence to the Board of Trustees of the registrant, or to an individual
Trustee c/o the Secretary of the Fund at 6803 South Tucson Way, Centennial,
Colorado 80112 and may submit their correspondence electronically at
WWW.OPPENHEIMERFUNDS.COM under the caption "contact us." If your correspondence
is intended for a particular Trustee, please indicate the name of the Trustee
for whom it is intended. The sender should indicate in the address whether it is
intended for the entire board, the Independent Trustees as group, or to an
individual Trustee. The Governance Committee will consider if a different
process should be recommended to the Board.
ITEM 11. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-3(c)) as of February 28, 2005,
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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Real Asset Fund
By: ____________________________
John V. Murphy
Chief Executive Officer
Date: April 11, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: ____________________________
John V. Murphy
Chief Executive Officer
Date: April 11, 2005
By: ____________________________
Brian W. Wixted
Chief Financial Officer
Date: April 11, 2005