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 811-21686
Oppenheimer Portfolio Series
(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: January 31
Date of reporting period: 07/31/2008
ITEM 1. REPORTS TO STOCKHOLDERS.
JULY 31, 2008
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Equity Management
Investor Fund Commentaries
A Series of Oppenheimer Portfolio Series and
Semiannual
Report
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MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
SEMIANNUAL REPORT
Listing of Investments
Financial Statements
[OPPENHEIMERFUNDS LOGO]
TOP HOLDINGS AND ALLOCATIONS
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ASSET CLASS ALLOCATION
[PIE CHART]
U.S. Equity Funds 70.6%
Global Equity Funds 29.4
Fund holdings and allocations are subject to change. Percentages are as of July
31, 2008, and are based on the total market value of investments in affiliated
companies.
10 | EQUITY INVESTOR 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. 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 holdings does not constitute a recommendation by
OppenheimerFunds, Inc.
CLASS A shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). 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 4/5/05. Unless
otherwise noted, 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.
CLASS N shares of the Fund were first publicly offered on 4/5/05. 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.
11 | EQUITY INVESTOR FUND
NOTES
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CLASS Y shares of the Fund were first publicly offered on 4/5/05. Class Y
shares are offered only to certain institutional investors under a special
agreement with the Distributor, and to present or former officers,
directors, trustees or employees (and their eligible family members) of
the Fund, the Manager, its affiliates, its parent company and the
subsidiaries of its parent company, and retirement plans established for
the benefit of such individuals.
An explanation of the calculation of performance is in the Fund's
Statement of Additional Information.
12 | EQUITY INVESTOR 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 applicable); and (2) ongoing costs, including management fees;
distribution and service fees; and other Fund expenses. These 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 July
31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in
this section 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 first section 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 second section of the
table provides 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 for each
class before expenses, which is not the 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), or a $12.00 fee
imposed annually on accounts
13 | EQUITY INVESTOR FUND
FUND EXPENSES Continued
- --------------------------------------------------------------------------------
valued at less than $500.00 (subject to exceptions described in the
Statement of Additional Information). Therefore, the "hypothetical"
section of the table is 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.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL FEBRUARY 1, 2008 JULY 31, 2008 JULY 31, 2008
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Class A $1,000.00 $ 943.40 $2.32
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Class B 1,000.00 939.50 6.14
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Class C 1,000.00 939.40 6.00
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Class N 1,000.00 941.50 3.29
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Class Y 1,000.00 945.30 0.05
HYPOTHETICAL
(5% return before expenses)
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Class A 1,000.00 1,022.48 2.42
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Class B 1,000.00 1,018.55 6.39
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Class C 1,000.00 1,018.70 6.24
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Class N 1,000.00 1,021.48 3.42
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Class Y 1,000.00 1,024.81 0.05
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding all underlying fund expenses, based on the 6-month period ended July
31, 2008 are as follows:
CLASS EXPENSE RATIOS
- -----------------------------
Class A 0.48%
- -----------------------------
Class B 1.27
- -----------------------------
Class C 1.24
- -----------------------------
Class N 0.68
- -----------------------------
Class Y 0.01
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager 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 and reduction to
custodian expenses, if applicable.
14 | EQUITY INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2008 / Unaudited
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SHARES VALUE
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INVESTMENT COMPANIES--100.1% 1
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GLOBAL EQUITY FUNDS--29.5%
Oppenheimer Developing Markets Fund, Cl. Y 614,419 $ 26,389,303
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Oppenheimer Global Fund, Cl. Y 1,674,136 104,231,726
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Oppenheimer Global Opportunities Fund, Cl. Y 932,855 26,138,610
--------------
156,759,639
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U.S. EQUITY FUNDS--70.6%
Oppenheimer Capital Appreciation Fund, Cl. Y 2,314,533 108,505,302
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Oppenheimer Main Street Fund, Cl. Y 2,499,116 79,746,784
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Oppenheimer Main Street Opportunity Fund, Cl. Y 4,402,151 53,310,044
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Oppenheimer Main Street Small Cap Fund, Cl. Y 2,954,802 56,052,608
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Oppenheimer Value Fund, Cl. Y 3,477,005 78,232,610
--------------
375,847,348
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TOTAL INVESTMENTS, AT VALUE (COST $602,994,764) 100.1% 532,606,987
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LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (389,485)
----------------------------
NET ASSETS 100.0% $532,217,502
============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended July 31, 2008, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JANUARY 31, 2008 ADDITIONS REDUCTIONS JULY 31, 2008
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y 2,170,054 249,091 104,612 2,314,533
Oppenheimer Developing Markets Fund, Cl. Y 681,054 67,064 133,699 614,419
Oppenheimer Global Fund, Cl. Y 1,505,084 186,250 17,198 1,674,136
Oppenheimer Global Opportunities Fund, Cl. Y 807,432 134,880 9,457 932,855
Oppenheimer Institutional Money Market Fund, Cl. E 144,934 22,559,258 22,704,192 --
Oppenheimer Main Street Fund, Cl. Y 2,212,683 311,442 25,009 2,499,116
Oppenheimer Main Street Opportunity Fund, Cl. Y 3,863,720 582,471 44,040 4,402,151
Oppenheimer Main Street Small Cap Fund, Cl. Y 2,432,908 551,064 29,170 2,954,802
Oppenheimer Value Fund, Cl. Y 3,075,162 437,424 35,581 3,477,005
DIVIDEND REALIZED
VALUE INCOME LOSS
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Oppenheimer Capital Appreciation Fund, Cl. Y $108,505,302 $ -- $ 837,925
Oppenheimer Developing Markets Fund, Cl. Y 26,389,303 -- 767,077
Oppenheimer Global Fund, Cl. Y 104,231,726 -- 327,699
Oppenheimer Global Opportunities Fund, Cl. Y 26,138,610 -- 128,442
Oppenheimer Institutional Money Market Fund, Cl. E -- 6,304 --
Oppenheimer Main Street Fund, Cl. Y 79,746,784 -- 311,281
Oppenheimer Main Street Opportunity Fund, Cl. Y 53,310,044 -- 182,634
Oppenheimer Main Street Small Cap Fund, Cl. Y 56,052,608 -- 200,097
Oppenheimer Value Fund, Cl. Y 78,232,610 -- 270,755
---------------------------------------------
$532,606,987 $6,304 $3,025,910
=============================================
F1 | EQUITY INVESTOR FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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VALUATION INPUTS
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Various data inputs are used in determining the value of each of the Fund's
investments as of the reporting period end. These data inputs are categorized in
the following hierarchy under applicable financial accounting standards:
1) Level 1--quoted prices in active markets for identical assets or
liabilities (including securities actively traded on a securities
exchange).
2) Level 2--inputs other than quoted prices that are observable for the
asset (such as quoted prices for similar assets and market corroborated
inputs such as interest rates, prepayment speeds, credit risks, etc.).
3) Level 3--unobservable inputs (including the Manager's own judgments
about assumptions that market participants would use in pricing the
asset).
The market value of the Fund's investments was determined based on the following
inputs as of July 31, 2008:
INVESTMENTS IN OTHER FINANCIAL
VALUATION DESCRIPTION SECURITIES INSTRUMENTS*
----------------------------------------------------------------------------------
Level 1--Quoted Prices $532,606,987 $--
Level 2--Other Significant Observable Inputs -- --
Level 3--Significant Unobservable Inputs -- --
--------------------------------
Total $532,606,987 $--
================================
*Other financial instruments include options written, currency contracts,
futures, forwards and swap contracts. Currency contracts and forwards are
reported at their unrealized appreciation/depreciation at measurement date,
which represents the change in the contract's value from trade date. Futures are
reported at their variation margin at measurement date, which represents the
amount due to/from the Fund at that date. Options and swaps are reported at
their market value at measurement date.
SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN
DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE
VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F2 | EQUITY INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
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July 31, 2008
- -----------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------
Investments, at value--see accompanying statement of
investments--affiliated companies (cost $602,994,764) $ 532,606,987
- -----------------------------------------------------------------------------------
Cash 283,199
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Receivables and other assets:
Shares of beneficial interest sold 624,790
Other 9,780
---------------
Total assets 533,524,756
- -----------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 773,673
Investments purchased 282,720
Distribution and service plan fees 109,826
Transfer and shareholder servicing agent fees 91,864
Trustees' compensation 28,962
Shareholder communications 4,450
Other 15,759
---------------
Total liabilities 1,307,254
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NET ASSETS $ 532,217,502
===============
- -----------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 47,953
- -----------------------------------------------------------------------------------
Additional paid-in capital 582,848,742
- -----------------------------------------------------------------------------------
Accumulated net investment loss (2,099,549)
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investments 21,808,133
- -----------------------------------------------------------------------------------
Net unrealized depreciation on investments (70,387,777)
---------------
NET ASSETS $ 532,217,502
===============
F3 | EQUITY INVESTOR 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
$274,611,918 and 24,614,867 shares of beneficial interest outstanding) $11.16
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $11.84
- ----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $80,237,326
and 7,280,320 shares of beneficial interest outstanding) $11.02
- ----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $115,446,009
and 10,487,459 shares of beneficial interest outstanding) $11.01
- ----------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $59,314,237
and 5,337,620 shares of beneficial interest outstanding) $11.11
- ----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $2,608,012 and 232,336 shares of beneficial interest outstanding) $11.23
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F4 | EQUITY INVESTOR FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended July 31, 2008
- ----------------------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------------------
Dividends from affiliated companies $ 6,304
- ----------------------------------------------------------------------------
Interest 6,265
--------------
Total investment income 12,569
- ----------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------
Distribution and service plan fees:
Class A 338,091
Class B 405,426
Class C 578,264
Class N 146,672
- ----------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 264,885
Class B 91,061
Class C 122,676
Class N 47,099
- ----------------------------------------------------------------------------
Shareholder communications:
Class A 37,819
Class B 14,514
Class C 12,322
Class N 1,624
Class Y 11
- ----------------------------------------------------------------------------
Trustees' compensation 12,934
- ----------------------------------------------------------------------------
Custodian fees and expenses 1,819
- ----------------------------------------------------------------------------
Other 18,549
--------------
Total expenses 2,093,766
Less reduction to custodian expenses (133)
Less waivers and reimbursements of expenses (159)
--------------
Net expenses 2,093,474
- ----------------------------------------------------------------------------
NET INVESTMENT LOSS (2,080,905)
- ----------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
- ----------------------------------------------------------------------------
Net realized loss on investments from affiliated
companies (3,025,910)
- ----------------------------------------------------------------------------
Net change in unrealized depreciation on investments (27,876,458)
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(32,983,273)
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F5 | EQUITY INVESTOR FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 2008 JANUARY 31,
(UNAUDITED) 2008
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (2,080,905) $ 11,840,755
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (3,025,910) 27,675,666
- ----------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (27,876,458) (62,666,904)
--------------------------------
Net decrease in net assets resulting from operations (32,983,273) (23,150,483)
- ----------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (6,834,536)
Class B -- (1,518,294)
Class C -- (2,199,214)
Class N -- (1,303,777)
Class Y -- (78,107)
--------------------------------
-- (11,933,928)
- ----------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (4,212,810)
Class B -- (1,300,283)
Class C -- (1,796,530)
Class N -- (866,546)
Class Y -- (41,914)
--------------------------------
-- (8,218,083)
- ----------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 29,021,378 111,010,914
Class B 6,177,523 26,272,715
Class C 12,522,700 49,412,256
Class N 8,603,688 23,207,023
Class Y 231,927 733,708
--------------------------------
56,557,216 210,636,616
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NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
Total increase 23,573,943 167,334,122
- ----------------------------------------------------------------------------------------------------------------------
Beginning of period 508,643,559 341,309,437
--------------------------------
End of period (including accumulated net investment loss
of $2,099,549 and $18,644, respectively) $ 532,217,502 $ 508,643,559
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F6 | EQUITY INVESTOR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS A (UNAUDITED) 2008 2007 2006 1
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.83 $ 12.63 $ 11.60 $ 10.00
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 2 (.03) .38 .25 .22
Net realized and unrealized gain (loss) (.64) (.65) 1.00 1.52
--------------------------------------------------------
Total from investment operations (.67) (.27) 1.25 1.74
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.33) (.18) (.12)
Distributions from net realized gain -- (.20) (.04) (.02)
--------------------------------------------------------
Total dividends and distributions to shareholders -- (.53) (.22) (.14)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.16 $ 11.83 $ 12.63 $ 11.60
========================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.66)% (2.45)% 10.85% 17.46%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 274,612 $262,208 $ 173,539 $48,132
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 276,110 $239,348 $ 109,318 $17,321
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.47)% 2.87% 2.07% 2.47%
Total expenses 5 0.48% 0.45% 0.50% 0.70%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.48% 0.45% 0.50% 0.68%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 3% 2% 2% 7%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.12%
Year Ended January 31, 2008 1.08%
Year Ended January 31, 2007 1.15%
Period Ended January 31, 2006 1.39%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F7 | EQUITY INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS B (UNAUDITED) 2008 2007 2006 1
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.73 $ 12.54 $ 11.55 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 2 (.07) .26 .14 .16
Net realized and unrealized gain (loss) (.64) (.63) 1.01 1.50
-----------------------------------------------------------
Total from investment operations (.71) (.37) 1.15 1.66
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.24) (.12) (.09)
Distributions from net realized gain -- (.20) (.04) (.02)
-----------------------------------------------------------
Total dividends and distributions to shareholders -- (.44) (.16) (.11)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.02 $ 11.73 $ 12.54 $ 11.55
===========================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (6.05)% (3.23)% 9.97% 16.70%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 80,238 $ 79,187 $59,406 $ 19,078
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 81,690 $ 75,204 $38,569 $ 7,050
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (1.26)% 1.98% 1.19% 1.83%
Total expenses 5 1.27% 1.25% 1.31% 1.53%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.27% 1.25% 1.31% 1.50%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 3% 2% 2% 7%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.91%
Year Ended January 31, 2008 1.88%
Year Ended January 31, 2007 1.96%
Period Ended January 31, 2006 2.22%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F8 | EQUITY INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS C (UNAUDITED) 2008 2007 2006 1
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.72 $ 12.53 $ 11.54 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 2 (.07) .28 .14 .15
Net realized and unrealized gain (loss) (.64) (.64) 1.01 1.51
-----------------------------------------------------------
Total from investment operations (.71) (.36) 1.15 1.66
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.25) (.12) (.10)
Distributions from net realized gain -- (.20) (.04) (.02)
-----------------------------------------------------------
Total dividends and distributions to shareholders -- (.45) (.16) (.12)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.01 $ 11.72 $ 12.53 $ 11.54
===========================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (6.06)% (3.15)% 10.00% 16.64%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 115,446 $ 110,383 $70,691 $ 20,034
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 116,361 $ 98,098 $45,312 $ 6,131
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (1.24)% 2.15% 1.23% 1.71%
Total expenses 5 1.24% 1.23% 1.29% 1.48%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.24% 1.23% 1.29% 1.45%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 3% 2% 2% 7%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.88%
Year Ended January 31, 2008 1.86%
Year Ended January 31, 2007 1.94%
Period Ended January 31, 2006 2.17%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F9 | EQUITY INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS N (UNAUDITED) 2008 2007 2006 1
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.80 $ 12.60 $ 11.59 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 2 (.04) .35 .29 .24
Net realized and unrealized gain (loss) (.65) (.65) .94 1.49
-----------------------------------------------------------
Total from investment operations (.69) (.30) 1.23 1.73
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.30) (.18) (.12)
Distributions from net realized gain -- (.20) (.04) (.02)
-----------------------------------------------------------
Total dividends and distributions to shareholders -- (.50) (.22) (.14)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.11 $ 11.80 $ 12.60 $ 11.59
===========================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.85)% (2.63)% 10.67% 17.34%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 59,314 $ 54,336 $35,652 $ 5,608
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 59,019 $ 48,745 $18,874 $ 1,717
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.67)% 2.67% 2.47% 2.62%
Total expenses 5 0.68% 0.68% 0.69% 0.79%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.68% 0.68% 0.69% 0.78%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 3% 2% 2% 7%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.32%
Year Ended January 31, 2008 1.31%
Year Ended January 31, 2007 1.34%
Period Ended January 31, 2006 1.48%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F10 | EQUITY INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS Y (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.88 $ 12.67 $ 11.61 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 2 -- 3 .43 .29 .24
Net realized and unrealized gain (loss) (.65) (.64) 1.03 1.52
------------------------------------------------------------
Total from investment operations (.65) (.21) 1.32 1.76
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.38) (.22) (.13)
Distributions from net realized gain -- (.20) (.04) (.02)
------------------------------------------------------------
Total dividends and distributions to shareholders -- (.58) (.26) (.15)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.23 $ 11.88 $ 12.67 $ 11.61
============================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 (5.47)% (2.00)% 11.42% 17.69%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 2,608 $ 2,530 $ 2,021 $ 711
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,612 $ 2,508 $ 1,267 $ 331
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) (0.01)% 3.25% 2.46% 2.67%
Total expenses 6 0.01% 0.02% 0.03% 0.30%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.01% 0.02% 0.03% 0.27%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 3% 2% 2% 7%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. 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 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.
5. Annualized for periods less than one full year.
6. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.65%
Year Ended January 31, 2008 0.65%
Year Ended January 31, 2007 0.68%
Period Ended January 31, 2006 0.99%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F11 | EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Portfolio Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Equity Investor Fund (the "Fund") is a series of the Trust whose investment
objective is to seek long-term growth of capital. The Fund is a special type of
mutual fund known as a "fund of funds" because it invests in other mutual funds.
The Fund normally invests in a diversified portfolio of Oppenheimer mutual funds
(individually, an "Underlying Fund" and collectively, the "Underlying Funds").
The Fund's investment adviser is OppenheimerFunds, Inc. (the "Manager").
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 72
months after the date of purchase.
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
based upon the net asset value of the applicable Underlying Fund. For each
Underlying fund, the net asset value per share for a class of shares is
determined 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 trading by
dividing the value of the Underlying Fund's net assets attributable to that
class by the number of outstanding shares of that class on that day.
Effective for fiscal periods beginning after November 15, 2007, FASB
Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS,
establishes a hierarchy for measuring fair value of assets and liabilities. As
required by the standard, each investment asset or liability of the Fund is
assigned a level at measurement date based on the significance and source of the
inputs to its valuation. Quoted prices in active markets for identical assets or
liabilities are classified as "Level 1", inputs other than quoted prices for an
asset that are observable are classified as "Level 2" and unobservable inputs,
including the Manager's judgment about the assumptions that a market participant
would use in pricing an asset or liability are classified as "Level 3". The
inputs used for valuing assets and liabilities are not
F12 | EQUITY INVESTOR FUND
necessarily an indication of the risks associated with investing in those assets
or liabilities. A table summarizing the Fund's investments under these levels of
classification is included following the Statement of Investments.
The Fund classifies each of its investments in the Underlying Funds as
Level 1, without consideration as to the classification level of the specific
investments held by the Underlying Funds.
To determine their net asset values, the Underlying Funds' assets are
valued primarily on the basis of current market quotations. In the absence of a
readily available quoted market price, including for assets whose values have
been materially affected by what the Manager identifies as a significant event
occurring before the Underlying Fund's assets are valued but after the close of
their respective exchanges, the Manager, acting through its internal valuation
committee, in good faith determines the fair valuation of that Underlying Fund's
assets using consistently applied procedures under the supervision of the Board
of Trustees. The methodologies used for valuing assets are not necessarily an
indication of the risks associated with investing in those Underlying Funds.
The Underlying Funds' investments are classified as Level 1, Level 2 or
Level 3 based on the inputs used in determining their value. Investments held by
the Underlying Funds are typically classified as Level 1 or Level 2.
Fair valued assets may be classified as "Level 3" if the valuation
primarily reflects the Manager's own assumptions about the inputs that market
participants would use in valuing such securities.
There have been no significant changes to the fair valuation methodologies
during the period.
- --------------------------------------------------------------------------------
RISKS OF INVESTING IN THE UNDERLYING FUNDS. Each of the Underlying Funds in
which the Fund invests has its own investment risks, and those risks can affect
the value of the Fund's investments and therefore the value of the Fund's
shares. To the extent that the Fund invests more of its assets in one Underlying
Fund than in another, the Fund will have greater exposure to the risks of that
Underlying Fund.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee.
F13 | EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
As of July 31, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $3,025,910. This estimated
capital loss carryforward represents carryforward as of the end of the last
fiscal year, increased for losses deferred under tax accounting rules to the
current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. During the six
months ended July 31, 2008, it is estimated that the Fund will not utilize any
capital loss carryforward to offset realized capital gains.
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.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2008 are noted in the following
table. The primary difference between book and tax appreciation or depreciation
of securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $ 602,994,764
=============
Gross unrealized appreciation $ 1,710,876
Gross unrealized depreciation (72,098,653)
-------------
Net unrealized depreciation $ (70,387,777)
=============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing
F14 | EQUITY INVESTOR FUND
Plan Participants as of the Freeze Date will continue to receive accrued
benefits under the Plan. Active independent trustees as of the Freeze Date have
each elected a distribution method with respect to their benefits under the
Plan. During the six months ended July 31, 2008, the Fund's projected benefit
obligations, payments to retired trustees and accumulated liability were as
follows:
Projected Benefit Obligations Increased $ 7,478
Payments Made to Retired Trustees 6
Accumulated Liability as of July 31, 2008 21,024
The Board of Trustees has adopted a compensation deferral 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 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 compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date. Income and capital gain distributions, if any, are
declared and paid annually or at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
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 is recognized on an accrual basis. Discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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.
F15 | EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
CLASS A
Sold 4,890,336 $ 57,391,479 10,914,889 $ 143,741,742
Dividends and/or
distributions reinvested -- -- 830,164 10,636,288
Redeemed (2,436,470) (28,370,101) (3,324,723) (43,367,116)
---------------------------------------------------------------
Net increase 2,453,866 $ 29,021,378 8,420,330 $ 111,010,914
===============================================================
- ---------------------------------------------------------------------------------------------------------
CLASS B
Sold 1,280,102 $ 14,835,409 2,909,331 $ 37,978,741
Dividends and/or
distributions reinvested -- -- 215,120 2,734,266
Redeemed (747,860) (8,657,886) (1,113,188) (14,440,292)
---------------------------------------------------------------
Net increase 532,242 $ 6,177,523 2,011,263 $ 26,272,715
===============================================================
- ---------------------------------------------------------------------------------------------------------
CLASS C
Sold 2,169,377 $ 25,142,608 5,030,455 $ 65,585,341
Dividends and/or
distributions reinvested -- -- 304,091 3,858,873
Redeemed (1,100,792) (12,619,908) (1,555,496) (20,031,958)
---------------------------------------------------------------
Net increase 1,068,585 $ 12,522,700 3,779,050 $ 49,412,256
===============================================================
F16 | EQUITY INVESTOR FUND
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
CLASS N
Sold 1,374,646 $ 16,147,769 2,431,824 $ 31,836,415
Dividends and/or
distributions reinvested -- -- 150,827 1,926,056
Redeemed (642,798) (7,544,081) (806,573) (10,555,448)
--------------------------------------------------------------
Net increase 731,848 $ 8,603,688 1,776,078 $ 23,207,023
==============================================================
- ---------------------------------------------------------------------------------------------------------
CLASS Y
Sold 49,792 $ 587,928 117,125 $ 1,549,814
Dividends and/or distributions -- -- 9,336 119,962
reinvested
Redeemed (30,450) (356,001) (73,009) (936,068)
--------------------------------------------------------------
Net increase 19,342 $ 231,927 53,452 $ 733,708
==============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
July 31, 2008, were as follows:
PURCHASES SALES
------------------------------------------------------
Investment securities $ 70,556,853 $ 15,184,629
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Manager does not
charge a management fee, but rather collects indirect management fees from
investments in the Underlying Funds and the Fund's investment in IMMF. The
weighted indirect management fees collected from the Underlying Funds and the
Fund's investment in IMMF, as a percent of average daily net assets of the Fund
for the six months ended July 31, 2008 was 0.58%.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended July 31, 2008, the
Fund paid $507,232 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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.
F17 | EQUITY INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically 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 periodically for providing personal service 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 periods. 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 (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the Plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares and 0.25% on Class N shares. The Distributor also receives a service fee
of 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 Plans at June 30, 2008 for Class B, Class C and Class N
shares were $1,623,259, $1,024,483 and $538,714, 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 following table 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
- --------------------------------------------------------------------------------------------------------------
July 31, 2008 $ 441,756 $ 9,809 $ 85,670 $ 12,865 $ 1,382
F18 | EQUITY INVESTOR FUND
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily agreed to a
total expense limitation on the aggregate amount of combined direct
(fund-of-funds level) and indirect expense so that "Total expenses" as a
percentage of average daily net assets will not exceed the following annual
rates: 1.45%, 2.20%, 2.20%, 1.70% and 1.20%, for Class A, Class B, Class C,
Class N and Class Y, respectively. The Manager may modify or terminate this
undertaking at any time without notice to shareholders. These expense
limitations do not include extraordinary expenses and other expenses not
incurred in the ordinary course of the Fund's business. Notwithstanding the
foregoing limits, the Manager is not required to waive or reimburse Fund
expenses in excess of indirect management fees earned from investments in
Underlying Funds to assure that expenses do not exceed those limits.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
Prior to June 1, 2008, the Manager waived fees and/or reimbursed Fund
expenses in an amount equal to the indirect management fees incurred through the
Fund's investment in IMMF. During the six months ended July 31, 2008, the
Manager waived $159 for IMMF management fees.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENT
In March 2008, the Financial Accounting Standards Board ("FASB") issued
Statement on Financial Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard requires enhanced
disclosures about derivative and hedging activities, including qualitative
disclosures about how and why the Fund uses derivative instruments, how these
activities are accounted for, and their effect on the Fund's financial position,
financial performance and cash flows. SFAS No. 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those fiscal years. At this time, management is evaluating the
implications of SFAS No. 161 and its impact on the Fund's financial statements
and related disclosures.
F19 | EQUITY INVESTOR FUND
THIS PAGE INTENTIONALLY LEFT BLANK.
F20 | EQUITY INVESTOR 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.
15 | EQUITY INVESTOR FUND
JULY 31, 2008
- --------------------------------------------------------------------------------
Active Allocation Management
Fund Commentaries
A Series of Oppenheimer Portfolio Series and
Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
SEMIANNUAL REPORT
Listing of Investments
Financial Statements
[OPPENHEIMERFUNDS LOGO]
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
ASSET CLASS ALLOCATION
[PIE CHART]
U.S. Equity Funds 51.2%
Fixed Income Funds 25.9
Global Equity Funds 17.5
Alternative Investment Fund 5.1
Money Market Fund 0.3
Fund holdings and allocations are subject to change. Percentages are as of July
31, 2008, and are based on the total market value of investments in affiliated
companies.
10 | ACTIVE ALLOCATION FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the
periods shown. 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 holdings does not constitute a recommendation by
OppenheimerFunds, Inc.
CLASS A shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). 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 4/5/05. Unless
otherwise noted, 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.
CLASS N shares of the Fund were first publicly offered on 4/5/05. 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.
11 | ACTIVE ALLOCATION FUND
NOTES
- --------------------------------------------------------------------------------
CLASS Y shares of the Fund were first publicly offered on 4/5/05. Class Y
shares are offered only to certain institutional investors under a special
agreement with the Distributor, and to present or former officers,
directors, trustees or employees (and their eligible family members) of
the Fund, the Manager, its affiliates, its parent company and the
subsidiaries of its parent company, and retirement plans established for
the benefit of such individuals.
An explanation of the calculation of performance is in the Fund's
Statement of Additional Information.
12 | ACTIVE ALLOCATION FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 applicable); and (2) ongoing costs, including management fees;
distribution and service fees; and other Fund expenses. These 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 July
31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in
this section 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 first section 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 second section of the
table provides 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 for each
class before expenses, which is not the 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), or a $12.00 fee
imposed annually on accounts
13 | ACTIVE ALLOCATION FUND
FUND EXPENSES Continued
- --------------------------------------------------------------------------------
valued at less than $500.00 (subject to exceptions described in the
Statement of Additional Information). Therefore, the "hypothetical"
section of the table is 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.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL FEBRUARY 1, 2008 JULY 31, 2008 JULY 31, 2008
- ----------------------------------------------------------------------------------
Class A $ 1,000.00 $ 947.70 $ 2.42
- ----------------------------------------------------------------------------------
Class B 1,000.00 943.70 6.25
- ----------------------------------------------------------------------------------
Class C 1,000.00 944.50 6.11
- ----------------------------------------------------------------------------------
Class N 1,000.00 947.50 3.44
- ----------------------------------------------------------------------------------
Class Y 1,000.00 949.70 0.68
HYPOTHETICAL
(5% return before expenses)
- ----------------------------------------------------------------------------------
Class A 1,000.00 1,022.38 2.52
- ----------------------------------------------------------------------------------
Class B 1,000.00 1,018.45 6.49
- ----------------------------------------------------------------------------------
Class C 1,000.00 1,018.60 6.34
- ----------------------------------------------------------------------------------
Class N 1,000.00 1,021.33 3.57
- ----------------------------------------------------------------------------------
Class Y 1,000.00 1,024.17 0.70
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding all underlying fund expenses, based on the 6-month period ended July
31, 2008 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 0.50%
- ---------------------------
Class B 1.29
- ---------------------------
Class C 1.26
- ---------------------------
Class N 0.71
- ---------------------------
Class Y 0.14
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager 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 and reduction to
custodian expenses, if applicable.
14 | ACTIVE ALLOCATION FUND
STATEMENT OF INVESTMENTS July 31, 2008 / Unaudited
- --------------------------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES--99.4% 1
- ------------------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENT FUND--5.0%
Oppenheimer Real Estate Fund, Cl. Y 7,045,325 $ 133,649,801
- ------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS--25.8%
Oppenheimer Champion Income Fund, Cl. Y 18,179,241 140,525,539
- ------------------------------------------------------------------------------------------------
Oppenheimer Core Bond Fund, Cl. Y 31,671,767 299,298,193
- ------------------------------------------------------------------------------------------------
Oppenheimer International Bond Fund, Cl. Y 19,587,439 126,926,608
- ------------------------------------------------------------------------------------------------
Oppenheimer U.S. Government Trust, Cl. Y 12,312,905 115,248,784
----------------
681,999,124
- ------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUNDS--17.4%
Oppenheimer Developing Markets Fund, Cl. Y 482,815 20,736,921
- ------------------------------------------------------------------------------------------------
Oppenheimer Global Fund, Cl. Y 3,908,703 243,355,860
- ------------------------------------------------------------------------------------------------
Oppenheimer Global Opportunities Fund, Cl. Y 4,898,207 137,247,754
- ------------------------------------------------------------------------------------------------
Oppenheimer International Growth Fund, Cl. Y 792,950 21,290,722
- ------------------------------------------------------------------------------------------------
Oppenheimer International Small Company Fund, Cl. Y 940,079 18,378,540
- ------------------------------------------------------------------------------------------------
Oppenheimer Quest International Value Fund, Inc., Cl. A 1,167,325 18,945,681
----------------
459,955,478
- ------------------------------------------------------------------------------------------------
MONEY MARKET FUND--0.3%
Oppenheimer Institutional Money Market Fund, Cl. E, 2.67% 2 8,932,085 8,932,085
- ------------------------------------------------------------------------------------------------
U.S. EQUITY FUNDS--50.9%
Oppenheimer Capital Appreciation Fund, Cl. Y 7,810,377 366,150,444
- ------------------------------------------------------------------------------------------------
Oppenheimer Main Street Fund, Cl. Y 7,661,309 244,472,360
- ------------------------------------------------------------------------------------------------
Oppenheimer Main Street Opportunity Fund, Cl. Y 11,706,240 141,762,566
- ------------------------------------------------------------------------------------------------
Oppenheimer Main Street Small Cap Fund, Cl. Y 7,377,129 139,944,140
- ------------------------------------------------------------------------------------------------
Oppenheimer MidCap Fund, Cl. Y 3 2,191,447 39,270,743
- ------------------------------------------------------------------------------------------------
Oppenheimer Small- & Mid- Cap Value Fund, Cl. Y 1,232,785 38,586,174
- ------------------------------------------------------------------------------------------------
Oppenheimer Value Fund, Cl. Y 16,756,919 377,030,667
----------------
1,347,217,094
- ------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $2,946,881,980) 99.4% 2,631,753,582
- ------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.6 16,085,344
------------------------------
NET ASSETS 100.0% $2,647,838,926
==============================
F1 | ACTIVE ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended July 31, 2008, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JANUARY 31, 2008 ADDITIONS REDUCTIONS JULY 31, 2008
- ---------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y 7,395,404 476,094 61,121 7,810,377
Oppenheimer Champion Income Fund, Cl. Y 16,515,149 1,804,781 140,689 18,179,241
Oppenheimer Core Bond Fund, Cl. Y 29,099,763 2,811,522 239,518 31,671,767
Oppenheimer Developing Markets Fund, Cl. Y 457,641 28,978 3,804 482,815
Oppenheimer Global Fund, Cl. Y 3,691,578 249,836 32,711 3,908,703
Oppenheimer Global Opportunities Fund, Cl. Y 4,621,178 319,036 42,007 4,898,207
Oppenheimer Institutional Money Market Fund, Cl. E 22,664,856 129,304,674 143,037,445 8,932,085
Oppenheimer International Bond Fund, Cl. Y 18,223,098 1,504,800 140,459 19,587,439
Oppenheimer International Growth Fund, Cl. Y 753,125 45,808 5,983 792,950
Oppenheimer International Small Company Fund, Cl. Y 890,431 57,224 7,576 940,079
Oppenheimer Main Street Fund, Cl. Y 7,233,544 491,515 63,750 7,661,309
Oppenheimer Main Street Opportunity Fund, Cl. Y 11,047,198 757,289 98,247 11,706,240
Oppenheimer Main Street Small Cap Fund, Cl. Y 6,936,180 506,251 65,302 7,377,129
Oppenheimer MidCap Fund, Cl. Y 2,069,622 139,844 18,019 2,191,447
Oppenheimer Quest International Value Fund, Inc., Cl. A 1,105,423 71,474 9,572 1,167,325
Oppenheimer Real Estate Fund, Cl. Y 6,562,660 546,988 64,323 7,045,325
Oppenheimer Small- & Mid- Cap Value Fund, Cl. Y 1,165,687 77,236 10,138 1,232,785
Oppenheimer U.S. Government Trust, Cl. Y 11,382,541 1,021,653 91,289 12,312,905
Oppenheimer Value Fund, Cl. Y 15,820,161 1,077,094 140,336 16,756,919
DIVIDEND REALIZED
VALUE INCOME LOSS
- ---------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y $ 366,150,444 $ -- $ 488,664
Oppenheimer Champion Income Fund, Cl. Y 140,525,539 5,793,156 190,600
Oppenheimer Core Bond Fund, Cl. Y 299,298,193 9,259,357 131,057
Oppenheimer Developing Markets Fund, Cl. Y 20,736,921 -- 21,562
Oppenheimer Global Fund, Cl. Y 243,355,860 -- 604,495
Oppenheimer Global Opportunities Fund, Cl. Y 137,247,754 -- 563,295
Oppenheimer Institutional Money Market Fund, Cl. E 8,932,085 424,642 --
Oppenheimer International Bond Fund, Cl. Y 126,926,608 2,729,238 32,077
Oppenheimer International Growth Fund, Cl. Y 21,290,722 -- 11,101
Oppenheimer International Small Company Fund, Cl. Y 18,378,540 -- 106,189
Oppenheimer Main Street Fund, Cl. Y 244,472,360 -- 782,650
Oppenheimer Main Street Opportunity Fund, Cl. Y 141,762,566 -- 401,805
Oppenheimer Main Street Small Cap Fund, Cl. Y 139,944,140 -- 451,072
Oppenheimer MidCap Fund, Cl. Y 39,270,743 -- 19,109
Oppenheimer Quest International Value Fund, Inc., Cl. A 18,945,681 -- 34,757
Oppenheimer Real Estate Fund, Cl. Y 133,649,801 1,075,739 433,136
Oppenheimer Small- & Mid- Cap Value Fund, Cl. Y 38,586,174 -- 111,009
F2 | ACTIVE ALLOCATION FUND
DIVIDEND REALIZED
VALUE INCOME LOSS
- ---------------------------------------------------------------------------------------------------------------------------------
Oppenheimer U.S. Government Trust, Cl. Y $ 115,248,784 $ 2,962,240 $ 22,334
Oppenheimer Value Fund, Cl. Y 377,030,667 -- 1,048,959
---------------------------------------------------
$2,631,753,582 $22,244,372 $5,453,871
===================================================
2. Rate shown is the 7-day yield as of July 31, 2008.
3. Non-income producing security.
- --------------------------------------------------------------------------------
VALUATION INPUTS
- --------------------------------------------------------------------------------
Various data inputs are used in determining the value of each of the Fund's
investments as of the reporting period end. These data inputs are categorized in
the following hierarchy under applicable financial accounting standards:
1) Level 1--quoted prices in active markets for identical assets or
liabilities (including securities actively traded on a securities exchange).
2) Level 2--inputs other than quoted prices that are observable for the
asset (such as quoted prices for similar assets and market corroborated
inputs such as interest rates, prepayment speeds, credit risks, etc.).
3) Level 3--unobservable inputs (including the Manager's own judgments
about assumptions that market participants would use in pricing the asset).
The market value of the Fund's investments was determined based on the following
inputs as of July 31, 2008:
INVESTMENTS IN OTHER FINANCIAL
VALUATION DESCRIPTION SECURITIES INSTRUMENTS*
-------------------------------------------------------------------------------------
Level 1--Quoted Prices $2,631,753,582 $ 3,425,889
Level 2--Other Significant Observable Inputs -- (2,282,159)
Level 3--Significant Unobservable Inputs -- --
-----------------------------------
Total $2,631,753,582 $ 1,143,730
===================================
*Other financial instruments include options written, currency contracts,
futures, forwards and swap contracts. Currency contracts and forwards are
reported at their unrealized appreciation/depreciation at measurement date,
which represents the change in the contract's value from trade date. Futures are
reported at their variation margin at measurement date, which represents the
amount due to/from the Fund at that date. Options and swaps are reported at
their market value at measurement date.
SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN
DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE
VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD.
- --------------------------------------------------------------------------------
FUTURES CONTRACTS AS OF JULY 31, 2008 ARE AS FOLLOWS:
- --------------------------------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION APPRECIATION
CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------
MidCap 400 Index Buy 64 9/18/08 $ 25,724,800 $ (2,216,057)
Standard & Poor's 500 E-Mini Sell 2,085 9/19/08 132,095,175 3,331,097
U.S. Treasury Nts., 10 yr. Buy 1,161 9/19/08 133,315,453 945,447
---------------
$ 2,060,487
===============
F3 | ACTIVE ALLOCATION FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS AS OF JULY 31, 2008 ARE AS FOLLOWS:
- --------------------------------------------------------------------------------
PAY/
BUY/SELL NOTIONAL RECEIVE PREMIUM
SWAP CREDIT AMOUNT FIXED TERMINATION RECEIVED/
COUNTERPARTY REFERENCE ENTITY PROTECTION (000s) RATE DATE (PAID) VALUE
- ----------------------------------------------------------------------------------------------------------------------------
Goldman Sachs
International CDX.NA.IG.10 Index Buy $ 26,500 1.55% 6/20/13 $ 462,481 $ (334,470)
- ----------------------------------------------------------------------------------------------------------------------------
Morgan Stanley
Capital Services, Inc. CDX.NA.HY.10 Index Sell 26,500 5.00 6/20/13 1,514,548 (1,287,980)
----------------------------
$1,977,029 $(1,622,450)
============================
- --------------------------------------------------------------------------------
TOTAL RETURN SWAP CONTRACTS AS OF JULY 31, 2008 ARE AS FOLLOWS:
- --------------------------------------------------------------------------------
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- -------------------------------------------------------------------------------------------------------------------
Citibank NA, New York:
One-Month USD
BBA LIBOR minus
30 basis points
and if negative, the
If positive, absolute value of
the Total Return the Total Return
of the S&P 500/ of the S&P 500/
Citigroup Value Citigroup Value
$ 2,934,682 Total Return Index Total Return Index 4/8/09 $ (72,450)
One-Month USD
BBA LIBOR minus
30 basis points
and if negative, the
If positive, absolute value of
the Total Return the Total Return
of the S&P 500/ of the S&P 500/
Citigroup Value Citigroup Value
27,189,774 Total Return Index Total Return Index 4/8/09 (587,259)
------------
$(659,709)
============
Abbreviation is as follows:
BBA LIBOR British Bankers' Association London-Interbank Offered Rate
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F4 | ACTIVE ALLOCATION FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
July 31, 2008
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments--affiliated
companies (cost $2,946,881,980) $2,631,753,582
- ---------------------------------------------------------------------------------------------------------
Cash 1,037,052
- ---------------------------------------------------------------------------------------------------------
Cash used for collateral on futures 18,013,000
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Dividends 3,865,076
Futures margins 3,425,889
Shares of beneficial interest sold 3,407,778
Other 44,373
-----------------
Total assets 2,661,546,750
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Swaps, at value (premiums received $1,977,029) 2,282,159
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 6,455,468
Investments purchased 3,866,954
Distribution and service plan fees 531,175
Transfer and shareholder servicing agent fees 312,366
Trustees' compensation 155,016
Shareholder communications 76,700
Other 27,986
-----------------
Total liabilities 13,707,824
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $2,647,838,926
=================
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 248,941
- ---------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,871,687,378
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment income 14,156,294
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 75,119,354
- ---------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies (313,373,041)
-----------------
NET ASSETS $2,647,838,926
=================
F5 | ACTIVE ALLOCATION 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
$1,412,843,644 and 132,152,869 shares of beneficial interest outstanding) $10.69
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $11.34
- -------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $436,310,569
and 41,270,355 shares of beneficial interest outstanding) $10.57
- -------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $628,132,713
and 59,502,186 shares of beneficial interest outstanding) $10.56
- -------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $166,711,843 and
15,659,185 shares of beneficial interest outstanding) $10.65
- -------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $3,840,157 and 356,860 shares of beneficial interest outstanding) $10.76
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F6 | ACTIVE ALLOCATION FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended July 31, 2008
- ----------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------
Dividends from affiliated companies $ 22,244,372
- ----------------------------------------------------------------
Interest 85,239
---------------
Total investment income 22,329,611
- ----------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------
Distribution and service plan fees:
Class A 1,769,949
Class B 2,235,535
Class C 3,201,848
Class N 417,992
- ----------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 900,790
Class B 354,054
Class C 435,595
Class N 85,095
Class Y 445
- ----------------------------------------------------------------
Shareholder communications:
Class A 113,954
Class B 57,509
Class C 49,763
Class N 4,085
Class Y 71
- ----------------------------------------------------------------
Asset allocation fees 1,348,207
- ----------------------------------------------------------------
Trustees' compensation 66,261
- ----------------------------------------------------------------
Custodian fees and expenses 7,386
- ----------------------------------------------------------------
Other 40,194
---------------
Total expenses 11,088,733
Less reduction to custodian expenses (2,594)
Less waivers and reimbursements of expenses (18,195)
---------------
Net expenses 11,067,944
- ----------------------------------------------------------------
NET INVESTMENT INCOME 11,261,667
F7 | ACTIVE ALLOCATION FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments from affiliated companies $ (5,453,871)
Closing and expiration of futures contracts (4,493,898)
Foreign currency transactions (429,504)
Swap contracts 3,586,243
----------------
Net realized loss (6,791,030)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (156,323,989)
Translation of assets and liabilities denominated in foreign currencies 204,055
Futures contracts 158,297
Swap contracts 2,435,519
----------------
Net change in unrealized depreciation (153,526,118)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(149,055,481)
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F8 | ACTIVE ALLOCATION FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 2008 JANUARY 31,
(UNAUDITED) 2008
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 11,261,667 $ 77,241,153
- --------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (6,791,030) 115,228,800
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (153,526,118) (277,135,980)
------------------------------------
Net decrease in net assets resulting from operations (149,055,481) (84,666,027)
- --------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (49,762,444)
Class B -- (13,063,856)
Class C -- (18,702,863)
Class N -- (5,468,177)
Class Y -- (158,040)
------------------------------------
-- (87,155,380)
- --------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (19,567,662)
Class B -- (6,468,393)
Class C -- (9,012,023)
Class N -- (2,267,194)
Class Y -- (57,016)
------------------------------------
-- (37,372,288)
- --------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 93,526,804 551,288,066
Class B 12,755,889 134,492,010
Class C 33,797,484 248,464,306
Class N 14,352,651 65,148,152
Class Y 252,335 1,324,654
------------------------------------
154,685,163 1,000,717,188
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Total increase 5,629,682 791,523,493
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 2,642,209,244 1,850,685,751
------------------------------------
End of period (including accumulated net investment income of $14,156,294
and $2,894,627, respectively) $2,647,838,926 $2,642,209,244
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F9 | ACTIVE ALLOCATION FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS A (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.28 $ 12.05 $ 11.10 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .06 .44 .35 .43
Net realized and unrealized gain (loss) (.65) (.61) .89 .89
------------------------------------------------------------------
Total from investment operations (.59) (.17) 1.24 1.32
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.43) (.24) (.20)
Distributions from net realized gain -- (.17) (.05) (.02)
------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.60) (.29) (.22)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.69 $ 11.28 $ 12.05 $ 11.10
==================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.23)% (1.69)% 11.14% 13.31%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,412,844 $ 1,396,770 $ 956,520 $ 293,578
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,442,559 $ 1,267,499 $ 605,517 $ 112,224
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.16% 3.54% 3.10% 4.94%
Total expenses 5 0.50% 0.48% 0.51% 0.56%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.50% 0.48% 0.50% 0.55%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 1% 18% 40% 90%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.12%
Year Ended January 31, 2008 1.11%
Year Ended January 31, 2007 1.16%
Period Ended January 31, 2006 1.28%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F10 | ACTIVE ALLOCATION FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS B (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.20 $ 11.97 $ 11.07 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .02 .33 .26 .36
Net realized and unrealized gain (loss) (.65) (.59) .86 .91
------------------------------------------------------------------
Total from investment operations (.63) (.26) 1.12 1.27
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.34) (.17) (.18)
Distributions from net realized gain -- (.17) (.05) (.02)
------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.51) (.22) (.20)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.57 $ 11.20 $ 11.97 $ 11.07
==================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.63)% (2.40)% 10.15% 12.72%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 436,310 $ 449,130 $ 349,024 $ 115,629
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 450,731 $ 433,217 $ 229,365 $ 46,284
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.37% 2.64% 2.26% 4.06%
Total expenses 5 1.29% 1.27% 1.29% 1.37%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 1.29% 1.27% 1.29% 1.34%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 1% 18% 40% 90%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.91%
Year Ended January 31, 2008 1.90%
Year Ended January 31, 2007 1.94%
Period Ended January 31, 2006 2.09%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F11 | ACTIVE ALLOCATION FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS C (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.18 $ 11.96 $ 11.06 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .02 .34 .27 .37
Net realized and unrealized gain (loss) (.64) (.60) .86 .89
------------------------------------------------------------------
Total from investment operations (.62) (.26) 1.13 1.26
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.35) (.18) (.18)
Distributions from net realized gain -- (.17) (.05) (.02)
------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.52) (.23) (.20)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.56 $ 11.18 $ 11.96 $ 11.06
==================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.55)% (2.41)% 10.21% 12.66%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 628,133 $ 630,990 $ 433,213 $ 125,622
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 645,082 $ 577,347 $ 272,038 $ 45,647
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.40% 2.77% 2.34% 4.18%
Total expenses 5 1.26% 1.24% 1.27% 1.33%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 1.26% 1.24% 1.26% 1.31%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 1% 18% 40% 90%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.88%
Year Ended January 31, 2008 1.87%
Year Ended January 31, 2007 1.92%
Period Ended January 31, 2006 2.05%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F12 | ACTIVE ALLOCATION FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS N (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.24 $ 12.02 $ 11.09 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .05 .41 .35 .46
Net realized and unrealized gain (loss) (.64) (.61) .86 .85
------------------------------------------------------------------
Total from investment operations (.59) (.20) 1.21 1.31
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.41) (.23) (.20)
Distributions from net realized gain -- (.17) (.05) (.02)
------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.58) (.28) (.22)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.65 $ 11.24 $ 12.02 $ 11.09
==================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.25)% (1.95)% 10.88% 13.18%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 166,712 $ 161,530 $ 109,146 $ 28,345
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 169,080 $ 145,988 $ 62,929 $ 9,156
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.95% 3.31% 3.07% 5.28%
Total expenses 5 0.71% 0.70% 0.70% 0.73%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.71% 0.69% 0.70% 0.72%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 1% 18% 40% 90%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.33%
Year Ended January 31, 2008 1.33%
Year Ended January 31, 2007 1.35%
Period Ended January 31, 2006 1.45%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F13 | ACTIVE ALLOCATION FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS Y (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.33 $ 12.10 $ 11.13 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .08 .50 .44 .39
Net realized and unrealized gain (loss) (.65) (.63) .85 .97
------------------------------------------------------------------
Total from investment operations (.57) (.13) 1.29 1.36
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.47) (.27) (.21)
Distributions from net realized gain -- (.17) (.05) (.02)
------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.64) (.32) (.23)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.76 $ 11.33 $ 12.10 $ 11.13
==================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (5.03)% (1.38)% 11.56% 13.72%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 3,840 $ 3,789 $ 2,783 $ 482
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 3,883 $ 3,663 $ 1,317 $ 196
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.52% 3.98% 3.79% 4.44%
Total expenses 5 0.14% 0.13% 0.11% 0.33%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.14% 0.13% 0.11% 0.21%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 1% 18% 40% 90%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.76%
Year Ended January 31, 2008 0.76%
Year Ended January 31, 2007 0.76%
Period Ended January 31, 2006 1.05%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F14 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Portfolio Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Active Allocation Fund (the "Fund") is a series of the Trust whose investment
objective is to seek long-term growth of capital with a secondary objective of
current income. The Fund is a special type of mutual fund known as a "fund of
funds" because it invests in other mutual funds. The Fund normally invests in a
diversified portfolio of Oppenheimer mutual funds (individually, an "Underlying
Fund" and collectively, the "Underlying Funds"). The Fund's investment adviser
is OppenheimerFunds, Inc. (the "Manager").
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 72
months after the date of purchase.
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
based upon the net asset value of the applicable Underlying Fund. For each
Underlying fund, the net asset value per share for a class of shares is
determined 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 trading by
dividing the value of the Underlying Fund's net assets attributable to that
class by the number of outstanding shares of that class on that day.
Effective for fiscal periods beginning after November 15, 2007, FASB
Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS,
establishes a hierarchy for measuring fair value of assets and liabilities. As
required by the standard, each investment asset or liability of the Fund is
assigned a level at measurement date based on the significance and source of the
inputs to its valuation. Quoted prices in active markets for identical assets or
liabilities are classified as "Level 1", inputs other than quoted prices for an
asset that are observable are classified as "Level 2" and unobservable inputs,
including the Manager's judgment about the assumptions that a market participant
would use in pricing an asset or liability are classified as "Level 3". The
inputs used for valuing assets and liabilities are not necessarily an indication
of the risks associated with investing in those assets or liabilities. A table
F15 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
summarizing the Fund's investments under these levels of classification is
included following the Statement of Investments.
The Fund classifies each of its investments in the Underlying Funds as
Level 1, without consideration as to the classification level of the specific
investments held by the Underlying Funds.
To determine their net asset values, the Underlying Funds' assets are
valued primarily on the basis of current market quotations. In the absence of a
readily available quoted market price, including for assets whose values have
been materially affected by what the Manager identifies as a significant event
occurring before the Underlying Fund's assets are valued but after the close of
their respective exchanges, the Manager, acting through its internal valuation
committee, in good faith determines the fair valuation of that Underlying Fund's
assets using consistently applied procedures under the supervision of the Board
of Trustees. The methodologies used for valuing assets are not necessarily an
indication of the risks associated with investing in those Underlying Funds.
The Underlying Funds' investments are classified as Level 1, Level 2 or
Level 3 based on the inputs used in determining their value. Investments held by
the Underlying Funds are typically classified as Level 1 or Level 2.
Fair valued assets may be classified as "Level 3" if the valuation
primarily reflects the Manager's own assumptions about the inputs that market
participants would use in valuing such securities.
There have been no significant changes to the fair valuation methodologies
during the period.
- --------------------------------------------------------------------------------
RISKS OF INVESTING IN THE UNDERLYING FUNDS. Each of the Underlying Funds in
which the Fund invests has its own investment risks, and those risks can affect
the value of the Fund's investments and therefore the value of the Fund's
shares. To the extent that the Fund invests more of its assets in one Underlying
Fund than in another, the Fund will have greater exposure to the risks of that
Underlying Fund.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of the
Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for
trading. Foreign exchange rates may be valued primarily using a reliable bank,
dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions
arise from sales of portfolio securities, sales and maturities of short-term
securities, sales of foreign currencies, exchange rate fluctuations between the
trade and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized appreciation and depreciation on the
translation of assets and liabilities denominated in foreign currencies arise
from changes in
F16 | ACTIVE ALLOCATION FUND
the values of assets and liabilities, including investments in securities at
fiscal period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee.
- --------------------------------------------------------------------------------
INVESTMENTS WITH OFF-BALANCE SHEET MARKET RISK. The Fund enters into financial
instrument transactions (such as swaps, futures, options and other derivatives)
that may have off-balance sheet market risk. Off-balance sheet market risk
exists when the maximum potential loss on a particular financial instrument is
greater than the value of such financial instrument, as reflected in the Fund's
Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
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. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
During the fiscal year ended January 31, 2008, the Fund did not utilize
any capital loss carryforward to offset capital gains realized in that fiscal
year. As of January 31, 2008, the Fund had available for federal income tax
purposes post-October foreign currency losses of $276,537.
As of July 31, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $7,067,567 expiring by 2016.
This estimated capital loss carryforward represents carryforward as of the end
of the last fiscal year, increased for losses
F17 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
deferred under tax accounting rules to the current fiscal year and is increased
or decreased by capital losses or gains realized in the first six months of the
current fiscal year. During the six months ended July 31, 2008, it is estimated
that the Fund will not utilize any capital loss carryforward to offset realized
capital gains.
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.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2008 are noted in the following
table. The primary difference between book and tax appreciation or depreciation
of securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $2,957,725,896
Federal tax cost of other investments 22,907,562
--------------
Total federal tax cost $2,980,633,458
==============
Gross unrealized appreciation $ 17,672,097
Gross unrealized depreciation (339,329,691)
--------------
Net unrealized depreciation $ (321,657,594)
==============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the Plan. Active independent trustees
as of the Freeze Date have each elected a distribution method with respect to
their benefits under the Plan. During the six months ended July 31, 2008, the
Fund's projected benefit obligations, payments to retired trustees and
accumulated liability were as follows:
Projected Benefit Obligations Increased $ 38,145
Payments Made to Retired Trustees 32
Accumulated Liability as of July 31, 2008 112,308
The Board of Trustees has adopted a compensation deferral 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
F18 | ACTIVE ALLOCATION FUND
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 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
compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date. Income and capital gain distributions, if any, are
declared and paid annually or at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
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 is recognized on an accrual basis. Discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
F19 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
Sold 21,959,624 $ 245,423,138 55,772,313 $ 692,918,762
Dividends and/or distributions reinvested -- -- 5,622,995 66,806,258
Redeemed (13,664,996) (151,896,334) (16,930,276) (208,436,954)
------------------------------------------------------------------
Net increase 8,294,628 $ 93,526,804 44,465,032 $ 551,288,066
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 6,284,430 $ 69,521,550 16,273,470 $ 200,111,397
Dividends and/or distributions reinvested -- -- 1,608,626 18,997,933
Redeemed (5,130,419) (56,765,661) (6,916,902) (84,617,320)
------------------------------------------------------------------
Net increase 1,154,011 $ 12,755,889 10,965,194 $ 134,492,010
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 9,480,401 $ 104,506,003 25,614,816 $ 314,499,898
Dividends and/or distributions reinvested -- -- 2,206,578 26,014,894
Redeemed (6,430,144) (70,708,519) (7,591,141) (92,050,486)
------------------------------------------------------------------
Net increase 3,050,257 $ 33,797,484 20,230,253 $ 248,464,306
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS N
Sold 3,075,076 $ 34,095,739 6,924,608 $ 85,551,101
Dividends and/or distributions reinvested -- -- 609,598 7,223,732
Redeemed (1,784,341) (19,743,088) (2,248,973) (27,626,681)
------------------------------------------------------------------
Net increase 1,290,735 $ 14,352,651 5,285,233 $ 65,148,152
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 83,088 $ 924,486 212,825 $ 2,659,299
Dividends and/or distributions reinvested -- -- 17,705 211,401
Redeemed (60,630) (672,151) (126,203) (1,546,046)
------------------------------------------------------------------
Net increase 22,458 $ 252,335 104,327 $ 1,324,654
==================================================================
F20 | ACTIVE ALLOCATION FUND
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
July 31, 2008, were as follows:
PURCHASES SALES
---------------------------------------------------------------------
Investment securities $195,643,851 $24,146,670
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Manager does not
charge a management fee, but rather collects indirect management fees from
investments in the Underlying Funds and the Fund's investment in IMMF. The
weighted indirect management fees collected from the Underlying Funds and the
Fund's investment in IMMF, as a percent of average daily net assets of the Fund
for the six months ended July 31, 2008 was 0.57%.
The Fund pays the Manager an asset allocation fee equal to an annual rate
of 0.10% of the average daily net assets of the Fund.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended July 31, 2008, the
Fund paid $1,715,114 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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 (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically 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 periodically for providing personal service 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 periods. 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 (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the
F21 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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% on Class B and Class C shares and 0.25% on
Class N shares. The Distributor also receives a service fee of 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 Plans
at June 30, 2008 for Class B, Class C and Class N shares were $7,696,042,
$5,170,978 and $1,569,544, 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 following table 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
- ------------------------------------------------------------------------------------------------------------------------------------
July 31, 2008 $1,595,948 $14,539 $483,482 $70,424 $10,401
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily agreed to a
total expense limitation on the aggregate amount of combined direct
(fund-of-funds level) and indirect expense so that "Total expenses" as a
percentage of average daily net assets will not exceed the following annual
rates: 1.45%, 2.20%, 2.20%, 1.70% and 1.20%, for Class A, Class B, Class C,
Class N and Class Y, respectively. During the six months ended July 31, 2008,
the Manager reimbursed the Fund $4,875, $1,528, $2,183, $571 and $13 for
Class A, Class B, Class C, Class N and Class Y shares, respectively. The Manager
may modify or terminate this undertaking at any time without notice to
shareholders. These expense limitations do not include extraordinary expenses
and other expenses not incurred in the ordinary course of the Fund's business.
Notwithstanding the foregoing limits, the Manager is not required to waive or
reimburse Fund expenses in excess of indirect management fees earned from
investments in Underlying Funds to assure that expenses do not exceed those
limits.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
F22 | ACTIVE ALLOCATION FUND
Prior to June 1, 2008, the Manager waived fees and/or reimbursed Fund
expenses in an amount equal to the indirect management fees incurred through the
Fund's investment in IMMF. During the six months ended July 31, 2008, the
Manager waived $9,025 for IMMF management fees.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY EXCHANGE CONTRACTS
The Fund may enter into foreign currency exchange contracts ("forward
contracts") for the purchase or sale of a foreign currency at a negotiated rate
at a future date.
Forward contracts are reported on a schedule following the Statement of
Investments. Forward contracts will be valued daily based upon the closing
prices of the forward currency rates determined at the close of the Exchange as
provided by a bank, dealer or pricing service. The resulting unrealized
appreciation (depreciation) is reported in the Statement of Assets and
Liabilities as a receivable or payable and in the Statement of Operations within
the change in unrealized appreciation (depreciation). At contract close, the
difference between the original cost of the contract and the value at the close
date is recorded as a realized gain (loss) in the Statement of Operations.
Risks to the Fund include both market and credit risk. Market risk is the
risk that the value of the forward contract will depreciate due to unfavorable
changes in the exchange rates. Credit risk arises from the possibility that the
counterparty will default. If the counterparty defaults, the Fund's loss will
consist of the net amount of contractual payments that the Fund has not yet
received.
As of July 31, 2008, the Fund had no outstanding forward contracts.
- --------------------------------------------------------------------------------
6. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
financial instrument at a negotiated price on a stipulated future date. The Fund
may buy and sell futures contracts and may also buy or write put or call options
on these futures contracts.
Futures contracts traded on a commodities or futures exchange will be
valued at the final settlement price or official closing price on the principal
exchange as reported by such principal exchange at its trading session ending
at, or most recently prior to, the time when the Fund's assets are valued.
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.
Futures contracts are reported on a schedule following the Statement of
Investments. Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. Cash held by the broker to cover initial margin requirements on
open futures contracts and the receivable and/or payable for the daily mark to
market for the variation margin are noted in the Statement of Assets and
Liabilities. The net change in unrealized appreciation and depreciation is
F23 | ACTIVE ALLOCATION FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. FUTURES CONTRACTS Continued
reported in the Statement of Operations. Realized gains (losses) are reported in
the Statement of Operations at the closing or expiration of futures contracts.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market where the Fund is unable to
liquidate the contract or enter into an offsetting position and, if used for
hedging purposes, the risk that the price of the contract will correlate
imperfectly with the prices of the Fund's securities.
- --------------------------------------------------------------------------------
7. SWAP CONTRACTS
The Fund may enter into swap contract agreements with a counterparty to exchange
a series of cash flows based on either specified reference rates, or the
occurrence of a credit event, over a specified period. Such contracts may
include interest rate, equity, debt, index, total return, credit and currency
swaps.
Swaps are marked to market daily using primarily quotations from pricing
services, counterparties and brokers. Swap contracts are reported on a schedule
following the Statement of Investments. The value of the contracts is separately
disclosed on the Statement of Assets and Liabilities. The unrealized
appreciation (depreciation) related to the change in the valuation of the
notional amount of the swap is combined with the accrued interest due to (owed
by) the Fund at termination or settlement. The net change in this amount during
the period is included on the Statement of Operations. The Fund also records any
periodic payments received from (paid to) the counterparty, including at
termination, under such contracts as realized gain (loss) on the Statement of
Operations.
Risks of entering into swap contracts include credit, market and liquidity
risk. Credit risk arises from the possibility that the counterparty will
default. If the counterparty defaults, the Fund's loss will consist of the net
amount of contractual payments that the Fund has not yet received. Market risk
is the risk that the value of the contract will depreciate due to unfavorable
changes in the reference asset. If there is an illiquid market for the
agreement, the Fund may be unable to close the contract prior to contract
termination.
- --------------------------------------------------------------------------------
CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract
that enables an investor to buy or sell protection against a defined-issuer
credit event. The Fund may enter into credit default swaps on a single security,
or a basket of securities.
In a credit default swap contract, the purchaser of the contract will pay
a periodic interest fee, similar to an insurance premium, on the notional amount
of the swap contract to the counterparty (the seller of the contract). If there
is a credit event (for example, bankruptcy or a failure to timely pay interest
or principal), the purchaser will exercise the contract and will receive a
payment from the seller of the contract equal to the notional value of the
credit default swap contract less the value of the underlying security. In the
event that the credit default swap is exercised due to a credit event, the
difference between the value of the underlying security and the notional amount
is recorded as realized gain (loss) and is included on the Statement of
Operations.
F24 | ACTIVE ALLOCATION FUND
Risks of credit default swaps include, but are not limited to, the cost of
paying for credit protection if there are no credit events, or the cost of
selling protection (paying the notional amount) when a credit event occurs,
pricing transparency when assessing the cost of a credit default swap, and the
need to fund the delivery obligation (either cash or defaulted securities).
- --------------------------------------------------------------------------------
TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between
counterparties to exchange a set of future cash flows on the notional amount of
the contract. One cash flow is typically based on a reference interest rate or
index and the other on the total return of a reference asset such as a security,
a basket of securities, or an index. The total return includes appreciation or
depreciation on the reference asset, plus any interest or dividend payments.
- --------------------------------------------------------------------------------
8. RECENT ACCOUNTING PRONOUNCEMENT
In March 2008, the Financial Accounting Standards Board ("FASB") issued
Statement on Financial Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard requires enhanced
disclosures about derivative and hedging activities, including qualitative
disclosures about how and why the Fund uses derivative instruments, how these
activities are accounted for, and their effect on the Fund's financial position,
financial performance and cash flows. SFAS No. 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those fiscal years. At this time, management is evaluating the
implications of SFAS No. 161 and its impact on the Fund's financial statements
and related disclosures.
F25 | ACTIVE ALLOCATION FUND
THIS PAGE INTENTIONALLY LEFT BLANK.
F26 | ACTIVE ALLOCATION 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.
15 | ACTIVE ALLOCATION FUND
JULY 31, 2008
- --------------------------------------------------------------------------------
Moderate Management
Investor Fund Commentaries
A Series of Oppenheimer Portfolio Series and
Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
SEMIANNUAL REPORT
Listing of Investments
Financial Statements
[OPPENHEIMERFUNDS LOGO]
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
ASSET CLASS ALLOCATION
[PIE CHART]
Fixed Income Funds 45.5%
U.S. Equity Funds 34.5
Alternative Investment Funds 10.3
Global Equity Fund 9.7
Fund holdings and allocations are subject to change. Percentages are as of July
31, 2008, and are based on the total market value of investments in affiliated
companies.
10 | MODERATE INVESTOR FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the
periods shown. 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 holdings does not constitute a recommendation by
OppenheimerFunds, Inc.
CLASS A shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). 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 4/5/05. Unless
otherwise noted, 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.
CLASS N shares of the Fund were first publicly offered on 4/5/05. 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 4/5/05. Class Y
shares are offered only to certain institutional investors under a special
agreement with the Distributor, and to present or former officers,
directors, trustees or employees (and their eligible family members) of
the Fund, the Manager, its affiliates, its parent company and the
subsidiaries of its parent company, and retirement plans established for
the benefit of such individuals.
An explanation of the calculation of performance is in the Fund's
Statement of Additional Information.
11 | MODERATE INVESTOR FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 applicable); and (2) ongoing costs, including management fees;
distribution and service fees; and other Fund expenses. These 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 July
31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in
this section 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 first section 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 second section of the
table provides 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 for each
class before expenses, which is not the 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), or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
exceptions described in the
12 | MODERATE INVESTOR FUND
Statement of Additional Information). Therefore, the "hypothetical"
section of the table is 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.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL FEBRUARY 1, 2008 JULY 31, 2008 JULY 31, 2008
- ---------------------------------------------------------------------------------
Class A $1,000.00 $ 968.20 $1.91
- ---------------------------------------------------------------------------------
Class B 1,000.00 965.20 5.83
- ---------------------------------------------------------------------------------
Class C 1,000.00 965.10 5.64
- ---------------------------------------------------------------------------------
Class N 1,000.00 967.10 3.18
- ---------------------------------------------------------------------------------
Class Y 1,000.00 970.10 0.05
HYPOTHETICAL
(5% return before expenses)
- ---------------------------------------------------------------------------------
Class A 1,000.00 1,022.92 1.96
- ---------------------------------------------------------------------------------
Class B 1,000.00 1,018.95 5.99
- ---------------------------------------------------------------------------------
Class C 1,000.00 1,019.14 5.79
- ---------------------------------------------------------------------------------
Class N 1,000.00 1,021.63 3.27
- ---------------------------------------------------------------------------------
Class Y 1,000.00 1,024.81 0.05
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding all underlying fund expenses, based on the 6-month period ended July
31, 2008 are as follows:
CLASS EXPENSE RATIOS
- --------------------------
Class A 0.39%
- --------------------------
Class B 1.19
- --------------------------
Class C 1.15
- --------------------------
Class N 0.65
- --------------------------
Class Y 0.01
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager 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 and reduction to
custodian expenses, if applicable.
13 | MODERATE INVESTOR FUND
THIS PAGE INTENTIONALLY LEFT BLANK.
14 | MODERATE INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2008 / Unaudited
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
INVESTMENT COMPANIES--99.8% 1
- --------------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENT FUNDS--10.3%
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 6,114,697 $ 56,805,536
- --------------------------------------------------------------------------------------------
Oppenheimer Real Estate Fund, Cl. Y 2,744,141 52,056,358
----------------
108,861,894
- --------------------------------------------------------------------------------------------
FIXED INCOME FUNDS--45.4%
Oppenheimer Champion Income Fund, Cl. Y 13,750,660 106,292,600
- --------------------------------------------------------------------------------------------
Oppenheimer Core Bond Fund, Cl. Y 22,553,164 213,127,394
- --------------------------------------------------------------------------------------------
Oppenheimer International Bond Fund, Cl. Y 8,079,355 52,354,226
- --------------------------------------------------------------------------------------------
Oppenheimer Limited-Term Government Fund, Cl. Y 11,095,882 107,408,141
----------------
479,182,361
- --------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND--9.6%
Oppenheimer Global Fund, Cl. Y 1,635,514 101,827,060
- --------------------------------------------------------------------------------------------
U.S. EQUITY FUNDS--34.5%
Oppenheimer Capital Appreciation Fund, Cl. Y 2,260,574 105,975,697
- --------------------------------------------------------------------------------------------
Oppenheimer Main Street Fund, Cl. Y 3,254,326 103,845,524
- --------------------------------------------------------------------------------------------
Oppenheimer Main Street Opportunity Fund, Cl. Y 4,299,347 52,065,102
- --------------------------------------------------------------------------------------------
Oppenheimer Value Fund, Cl. Y 4,529,379 101,911,037
----------------
363,797,360
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,134,837,927) 99.8% 1,053,668,675
- --------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.2 2,601,803
------------------------------
NET ASSETS 100.0% $1,056,270,478
==============================
F1 | MODERATE INVESTOR FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended July 31, 2008, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JANUARY 31, 2008 ADDITIONS REDUCTIONS JULY 31, 2008
- ----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y 1,971,338 313,897 24,661 2,260,574
Oppenheimer Champion Income Fund, Cl. Y 10,823,248 3,074,285 146,873 13,750,660
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 6,896,989 789,852 1,572,144 6,114,697
Oppenheimer Core Bond Fund, Cl. Y 19,762,236 3,539,564 748,636 22,553,164
Oppenheimer Global Fund, Cl. Y 1,368,498 285,440 18,424 1,635,514
Oppenheimer Institutional Money Market Fund, Cl. E 1,346,117 62,240,590 63,586,707 --
Oppenheimer International Bond Fund, Cl. Y 8,350,987 1,248,225 1,519,857 8,079,355
Oppenheimer Limited-Term Government Fund, Cl. Y 10,121,883 1,706,533 732,534 11,095,882
Oppenheimer Main Street Fund, Cl. Y 2,683,355 606,777 35,806 3,254,326
Oppenheimer Main Street Opportunity Fund, Cl. Y 3,514,973 831,700 47,326 4,299,347
Oppenheimer Real Estate Fund, Cl. Y 2,112,124 663,117 31,100 2,744,141
Oppenheimer Value Fund, Cl. Y 3,731,119 848,994 50,734 4,529,379
DIVIDEND REALIZED
VALUE INCOME GAIN (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y $ 105,975,697 $ -- $ (217,693)
Oppenheimer Champion Income Fund, Cl. Y 106,292,600 4,123,146 (244,652)
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 56,805,536 -- 1,061,198
Oppenheimer Core Bond Fund, Cl. Y 213,127,394 6,436,062 (479,043)
Oppenheimer Global Fund, Cl. Y 101,827,060 -- (354,498)
Oppenheimer Institutional Money Market Fund, Cl. E -- 15,847 --
Oppenheimer International Bond Fund, Cl. Y 52,354,226 1,166,463 239,098
Oppenheimer Limited-Term Government Fund, Cl. Y 107,408,141 2,672,707 (133,652)
Oppenheimer Main Street Fund, Cl. Y 103,845,524 -- (449,212)
Oppenheimer Main Street Opportunity Fund, Cl. Y 52,065,102 -- (198,760)
Oppenheimer Real Estate Fund, Cl. Y 52,056,358 410,647 (204,976)
Oppenheimer Value Fund, Cl. Y 101,911,037 -- (387,270)
------------------------------------------------------
$1,053,668,675 $14,824,872 $(1,369,460)
======================================================
F2 | MODERATE INVESTOR FUND
- --------------------------------------------------------------------------------
VALUATION INPUTS
- --------------------------------------------------------------------------------
Various data inputs are used in determining the value of each of the Fund's
investments as of the reporting period end. These data inputs are categorized in
the following hierarchy under applicable financial accounting standards:
1) Level 1--quoted prices in active markets for identical assets or
liabilities (including securities actively traded on a securities exchange).
2) Level 2--inputs other than quoted prices that are observable for the
asset (such as quoted prices for similar assets and market-corroborated
inputs such as interest rates, prepayment speeds, credit risks, etc.).
3) Level 3--unobservable inputs (including the Manager's own judgments
about assumptions that market participants would use in pricing the asset).
The market value of the Fund's investments was determined based on the following
inputs as of July 31, 2008:
INVESTMENTS IN OTHER FINANCIAL
VALUATION DESCRIPTION SECURITIES INSTRUMENTS*
------------------------------------------------------------------------------------
Level 1--Quoted Prices $1,053,668,675 $--
Level 2--Other Significant Observable Inputs -- --
Level 3--Significant Unobservable Inputs -- --
----------------------------------
Total $1,053,668,675 $--
==================================
*Other financial instruments include options written, currency contracts,
futures, forwards and swap contracts. Currency contracts and forwards are
reported at their unrealized appreciation/depreciation at measurement date,
which represents the change in the contract's value from trade date. Futures are
reported at their variation margin at measurement date, which represents the
amount due to/from the Fund at that date. Options and swaps are reported at
their market value at measurement date.
SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN
DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE
VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F3 | MODERATE INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
July 31, 2008
- -------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments--
affiliated companies (cost $1,134,837,927) $1,053,668,675
- -------------------------------------------------------------------------------------
Cash 1,199,069
- -------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 4,393,183
Dividends 2,697,177
Other 16,343
----------------
Total assets 1,061,974,447
- -------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,897,579
Shares of beneficial interest redeemed 1,401,624
Distribution and service plan fees 220,171
Transfer and shareholder servicing agent fees 112,427
Trustees' compensation 53,211
Other 18,957
----------------
Total liabilities 5,703,969
- -------------------------------------------------------------------------------------
NET ASSETS $1,056,270,478
================
- -------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 99,603
- -------------------------------------------------------------------------------------
Additional paid-in capital 1,108,252,165
- -------------------------------------------------------------------------------------
Accumulated net investment income 11,527,096
- -------------------------------------------------------------------------------------
Accumulated net realized gain on investments 17,560,866
- -------------------------------------------------------------------------------------
Net unrealized depreciation on investments (81,169,252)
----------------
NET ASSETS $1,056,270,478
================
F4 | MODERATE INVESTOR FUND
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $548,247,745
and 51,417,128 shares of beneficial interest outstanding) $10.66
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $11.31
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $141,104,685 and 13,388,719 shares
of beneficial interest outstanding) $10.54
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $255,572,066 and 24,296,482 shares
of beneficial interest outstanding) $10.52
- -----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $109,028,134 and 10,285,023 shares
of beneficial interest outstanding) $10.60
- -----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $2,317,848 and 216,117 shares of beneficial interest outstanding) $10.72
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F5 | MODERATE INVESTOR FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended July 31, 2008
- ---------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------
Dividends from affiliated companies $ 14,824,872
- ---------------------------------------------------------------------------
Interest 14,067
--------------
Total investment income 14,838,939
- ---------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------
Distribution and service plan fees:
Class A 662,036
Class B 690,924
Class C 1,235,679
Class N 262,872
- ---------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 304,540
Class B 108,032
Class C 155,479
Class N 70,651
- ---------------------------------------------------------------------------
Shareholder communications:
Class A 39,199
Class B 16,284
Class C 15,451
Class N 2,021
Class Y 7
- ---------------------------------------------------------------------------
Trustees' compensation 23,134
- ---------------------------------------------------------------------------
Custodian fees and expenses 2,663
- ---------------------------------------------------------------------------
Other 24,072
--------------
Total expenses 3,613,044
Less reduction to custodian expenses (58)
Less waivers and reimbursements of expenses (390)
--------------
Net expenses 3,612,596
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME 11,226,343
- ---------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
- ---------------------------------------------------------------------------
Net realized loss on investments from affiliated companies (1,369,460)
- ---------------------------------------------------------------------------
Net change in unrealized depreciation on investments (46,008,263)
- ---------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(36,151,380)
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F6 | MODERATE INVESTOR FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 2008 JANUARY 31,
(UNAUDITED) 2008
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------
Net investment income $ 11,226,343 $ 34,634,100
- -----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (1,369,460) 21,604,558
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (46,008,263) (60,182,411)
---------------------------------
Net decrease in net assets resulting from operations (36,151,380) (3,943,753)
- -----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (18,904,451)
Class B -- (4,112,456)
Class C -- (7,591,061)
Class N -- (3,249,986)
Class Y -- (57,724)
---------------------------------
-- (33,915,678)
- -----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (3,981,106)
Class B -- (1,073,876)
Class C -- (1,892,622)
Class N -- (722,066)
Class Y -- (11,276)
---------------------------------
-- (7,680,946)
- -----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 68,963,835 207,816,823
Class B 13,959,984 35,877,108
Class C 32,919,148 101,146,789
Class N 16,725,471 48,924,312
Class Y 511,060 734,860
---------------------------------
133,079,498 394,499,892
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
Total increase 96,928,118 348,959,515
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 959,342,360 610,382,845
---------------------------------
End of period (including accumulated net investment income
of $11,527,096 and $300,753, respectively) $1,056,270,478 $959,342,360
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F7 | MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS A (UNAUDITED) 2008 2007 2006 1
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.01 $ 11.42 $ 10.78 $ 10.00
- ----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .14 .54 .39 .38
Net realized and unrealized gain (loss) (.49) (.41) .55 .57
-----------------------------------------------
Total from investment operations (.35) .13 .94 .95
- ----------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.45) (.27) (.17)
Distributions from net realized gain -- (.09) (.03) --
-----------------------------------------------
Total dividends and/or distributions to shareholders -- (.54) (.30) (.17)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.66 $ 11.01 $ 11.42 $ 10.78
===============================================
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (3.18)% 1.01% 8.73% 9.58%
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $548,248 $497,377 $313,311 $107,686
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $537,105 $423,981 $206,672 $ 43,984
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.50% 4.59% 3.57% 4.39%
Total expenses 5 0.39% 0.37% 0.40% 0.47%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.39% 0.37% 0.40% 0.46%
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 3% 4% 0%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.97%
Year Ended January 31, 2008 0.95%
Year Ended January 31, 2007 1.01%
Period Ended January 31, 2006 1.15%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F8 | MODERATE INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS B (UNAUDITED) 2008 2007 2006 1
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.92 $ 11.34 $ 10.74 $ 10.00
- ---------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .09 .42 .30 .31
Net realized and unrealized gain (loss) (.47) (.39) .54 .58
----------------------------------------------
Total from investment operations (.38) .03 .84 .89
- ---------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.36) (.21) (.15)
Distributions from net realized gain -- (.09) (.03) --
----------------------------------------------
Total dividends and/or distributions to shareholders -- (.45) (.24) (.15)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.54 $ 10.92 $ 11.34 $ 10.74
==============================================
- ---------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (3.48)% 0.18% 7.80% 8.90%
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $141,104 $132,233 $101,929 $36,956
- ---------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $138,994 $121,584 $ 70,066 $15,521
- ---------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.70% 3.61% 2.73% 3.56%
Total expenses 5 1.19% 1.18% 1.21% 1.31%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.19% 1.18% 1.21% 1.29%
- ---------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 3% 4% 0%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.77%
Year Ended January 31, 2008 1.76%
Year Ended January 31, 2007 1.82%
Period Ended January 31, 2006 1.99%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F9 | MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS C (UNAUDITED) 2008 2007 2006 1
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.90 $ 11.33 $ 10.73 $ 10.00
- ------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .09 .45 .30 .31
Net realized and unrealized gain (loss) (.47) (.41) .54 .57
----------------------------------------------
Total from investment operations (.38) .04 .84 .88
- ------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.38) (.21) (.15)
Distributions from net realized gain -- (.09) (.03) --
----------------------------------------------
Total dividends and/or distributions to shareholders -- (.47) (.24) (.15)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.52 $ 10.90 $ 11.33 $ 10.73
==============================================
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (3.49)% 0.24% 7.85% 8.82%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $255,572 $231,792 $142,351 $47,904
- ------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $248,624 $193,641 $ 95,773 $19,527
- ------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.74% 3.88% 2.78% 3.64%
Total expenses 5 1.15% 1.14% 1.16% 1.23%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.15% 1.14% 1.16% 1.22%
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 3% 4% 0%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.73%
Year Ended January 31, 2008 1.72%
Year Ended January 31, 2007 1.77%
Period Ended January 31, 2006 1.91%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F10 | MODERATE INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS N (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.96 $ 11.38 $ 10.76 $ 10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .12 .51 .40 .40
Net realized and unrealized gain (loss) (.48) (.41) .51 .53
--------------------------------------------
Total from investment operations (.36) .10 .91 .93
- --------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.43) (.26) (.17)
Distributions from net realized gain -- (.09) (.03) --
--------------------------------------------
Total dividends and/or distributions to shareholders -- (.52) (.29) (.17)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.60 $ 10.96 $ 11.38 $ 10.76
============================================
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (3.29)% 0.72% 8.47% 9.35%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $109,028 $96,080 $51,620 $12,117
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $105,798 $73,754 $27,110 $ 4,158
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.24% 4.36% 3.58% 4.56%
Total expenses 5 0.65% 0.64% 0.65% 0.68%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.65% 0.64% 0.65% 0.67%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 3% 4% 0%
1. For the period from April 5, 2005 (commencement of operations) to January
31, 2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.23%
Year Ended January 31, 2008 1.22%
Year Ended January 31, 2007 1.26%
Period Ended January 31, 2006 1.36%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F11 | MODERATE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS Y (UNAUDITED) 2008 2007 2006 1
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------
Net asset value, beginning of period $11.05 $11.45 $10.79 $10.00
- -----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .16 .55 .56 .36
Net realized and unrealized gain (loss) (.49) (.38) .43 .61
---------------------------------------
Total from investment operations (.33) .17 .99 .97
- -----------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.48) (.30) (.18)
Distributions from net realized gain -- (.09) (.03) --
---------------------------------------
Total dividends and/or distributions to shareholders -- (.57) (.33) (.18)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $10.72 $11.05 $11.45 $10.79
=======================================
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.99)% 1.39% 9.18% 9.79%
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,318 $1,860 $1,172 $ 316
- -----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,283 $1,315 $ 335 $ 216
- -----------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.87% 4.67% 5.06% 4.20%
Total expenses 5 0.01% 0.02% 0.00% 0.28%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 0.01% 0.02% 0.00% 0.12%
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 3% 4% 0%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.59%
Year Ended January 31, 2008 0.60%
Year Ended January 31, 2007 0.61%
Period Ended January 31, 2006 0.96%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F12 | MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Portfolio Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Moderate Investor Fund (the "Fund") is a series of the Trust whose investment
objective is to seek long-term growth of capital and current income. The Fund is
a special type of mutual fund known as a "fund of funds" because it invests in
other mutual funds. The Fund normally invests in a diversified portfolio of
Oppenheimer mututal funds (individually, an "Underlying Fund" and collectively,
the "Underlying Funds"). The Fund's investment adviser is OppenheimerFunds, Inc.
(the "Manager").
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 72
months after the date of purchase.
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
based upon the net asset value of the applicable Underlying Fund. For each
Underlying fund, the net asset value per share for a class of shares is
determined 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 trading by
dividing the value of the Underlying Fund's net assets attributable to that
class by the number of outstanding shares of that class on that day.
Effective for fiscal periods beginning after November 15, 2007, FASB
Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS,
establishes a hierarchy for measuring fair value of assets and liabilities. As
required by the standard, each investment asset or liability of the Fund is
assigned a level at measurement date based on the significance and source of the
inputs to its valuation. Quoted prices in active markets for identical assets or
liabilities are classified as "Level 1", inputs other than quoted prices for an
asset that are observable are classified as "Level 2" and unobservable inputs,
including the Manager's judgment about the assumptions that a market participant
would use in pricing an asset or liability are classified as "Level 3". The
inputs used for valuing assets
F13 | MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
and liabilities are not necessarily an indication of the risks associated with
investing in those assets or liabilities. A table summarizing the Fund's
investments under these levels of classification is included following the
Statement of Investments.
The Fund classifies each of its investments in the Underlying Funds as
Level 1, without consideration as to the classification level of the specific
investments held by the Underlying Funds.
To determine their net asset values, the Underlying Funds' assets are
valued primarily on the basis of current market quotations. In the absence of a
readily available quoted market price, including for assets whose values have
been materially affected by what the Manager identifies as a significant event
occurring before the Underlying Fund's assets are valued but after the close of
their respective exchanges, the Manager, acting through its internal valuation
committee, in good faith determines the fair valuation of that Underlying Fund's
assets using consistently applied procedures under the supervision of the Board
of Trustees. The methodologies used for valuing assets are not necessarily an
indication of the risks associated with investing in those Underlying Funds.
The Underlying Funds' investments are classified as Level 1, Level 2 or
Level 3 based on the inputs used in determining their value. Investments held by
the Underlying Funds are typically classified as Level 1 or Level 2.
Fair valued assets may be classified as "Level 3" if the valuation
primarily reflects the Manager's own assumptions about the inputs that market
participants would use in valuing such securities.
There have been no significant changes to the fair valuation methodologies
during the period.
- --------------------------------------------------------------------------------
RISKS OF INVESTING IN THE UNDERLYING FUNDS. Each of the Underlying Funds in
which the Fund invests has its own investment risks, and those risks can affect
the value of the Fund's investments and therefore the value of the Fund's
shares. To the extent that the Fund invests more of its assets in one Underlying
Fund than in another, the Fund will have greater exposure to the risks of that
Underlying Fund.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee.
F14 | MODERATE INVESTOR FUND
- --------------------------------------------------------------------------------
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. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
As of July 31, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $1,369,460. This estimated
capital loss carryforward represents carryforward as of the end of the last
fiscal year, increased for losses deferred under tax accounting rules to the
current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. During the six
months ended July 31, 2008, it is estimated that the Fund will not utilize any
capital loss carryforward to offset realized capital gains.
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.
The aggregate cost of securities and other investments and the composition
of unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of July 31, 2008 are noted in the following
table. The primary difference between book and tax appreciation or depreciation
of securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $1,137,454,587
==============
Gross unrealized appreciation $ 17,833,061
Gross unrealized depreciation (101,618,973)
--------------
Net unrealized depreciation $ (83,785,912)
==============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the
F15 | MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
Plan. Active independent trustees as of the Freeze Date have each elected a
distribution method with respect to their benefits under the Plan. During the
six months ended July 31, 2008, the Fund's projected benefit obligations,
payments to retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased $13,310
Payments Made to Retired Trustees 11
Accumulated Liability as of July 31, 2008 38,427
The Board of Trustees has adopted a compensation deferral 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 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 compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date. Income and capital gain distributions, if any, are
declared and paid annually or at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
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 is recognized on an accrual basis. Discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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
F16 | MODERATE INVESTOR FUND
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS A
Sold 11,754,756 $129,481,471 23,670,312 $277,504,057
Dividends and/or
distributions reinvested -- -- 1,911,665 21,792,987
Redeemed (5,516,269) (60,517,636) (7,842,283) (91,480,221)
------------------------------------------------------------
Net increase 6,238,487 $ 68,963,835 17,739,694 $207,816,823
============================================================
- ------------------------------------------------------------------------------------------
CLASS B
Sold 3,116,043 $ 33,938,426 5,367,940 $ 62,105,890
Dividends and/or
distributions reinvested -- -- 445,664 5,044,923
Redeemed (1,831,419) (19,978,442) (2,696,518) (31,273,705)
------------------------------------------------------------
Net increase 1,284,624 $ 13,959,984 3,117,086 $ 35,877,108
============================================================
- ------------------------------------------------------------------------------------------
CLASS C
Sold 6,001,025 $ 65,115,822 11,349,465 $131,882,421
Dividends and/or
distributions reinvested -- -- 782,773 8,845,325
Redeemed (2,966,540) (32,196,674) (3,432,256) (39,580,957)
------------------------------------------------------------
Net increase 3,034,485 $ 32,919,148 8,699,982 $101,146,789
============================================================
F17 | MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS N
Sold 3,344,599 $ 36,634,984 6,083,743 $ 70,781,442
Dividends and/or
distributions reinvested -- -- 327,476 3,720,127
Redeemed (1,826,753) (19,909,513) (2,181,216) (25,577,257)
-------------------------------------------------------------
Net increase 1,517,846 $ 16,725,471 4,230,003 $ 48,924,312
=============================================================
- ------------------------------------------------------------------------------------------
CLASS Y
Sold 83,083 $ 913,705 84,671 $ 956,883
Dividends and/or
distributions reinvested -- -- 6,021 68,943
Redeemed (35,255) (402,645) (24,775) (290,966)
-------------------------------------------------------------
Net increase 47,828 $ 511,060 65,917 $ 734,860
=============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
July 31, 2008, were as follows:
PURCHASES SALES
--------------------------------------------------
Investment securities $190,066,332 $45,908,405
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Manager does not
charge a management fee, but rather collects indirect management fees from
investments in the Underlying Funds and the Fund's investment in IMMF. The
weighted indirect management fees collected from the Underlying Funds and the
Fund's investment in IMMF, as a percent of average daily net assets of the Fund
for the six months ended July 31, 2008 was 0.55%.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended July 31, 2008, the
Fund paid $606,270 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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.
F18 | MODERATE INVESTOR FUND
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically 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 periodically for providing personal service 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 periods. 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 (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the Plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares and 0.25% on Class N shares. The Distributor also receives a service fee
of 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 Plans at June 30, 2008 for Class B, Class C and Class N
shares were $2,248,542, $1,960,942 and $1,092,155, 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 following table 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
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
SIX MONTHS ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------
July 31, 2008 $656,796 $10,179 $194,064 $27,373 $3,874
F19 | MODERATE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily agreed to a
total expense limitation on the aggregate amount of combined direct
(fund-of-funds level) and indirect expense so that "Total expenses" as a
percentage of average daily net assets will not exceed the following annual
rates: 1.30%, 2.05%, 2.05%, 1.55% and 1.05%, for Class A, Class B, Class C,
Class N and Class Y, respectively. The Manager may modify or terminate this
undertaking at any time without notice to shareholders. These expense
limitations do not include extraordinary expenses and other expenses not
incurred in the ordinary course of the Fund's business. Notwithstanding the
foregoing limits, the Manager is not required to waive or reimburse Fund
expenses in excess of indirect management fees earned from investments in
Underlying Funds to assure that expenses do not exceed those limits.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
Prior to June 1, 2008, the Manager waived fees and/or reimbursed Fund
expenses in an amount equal to the indirect management fees incurred through the
Fund's investment in IMMF. During the six months ended July 31, 2008, the
Manager waived $390 for IMMF management fees.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENTS
In March 2008, the Financial Accounting Standards Board ("FASB") issued
Statement on Financial Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard requires enhanced
disclosures about derivative and hedging activities, including qualitative
disclosures about how and why the Fund uses derivative instruments, how these
activities are accounted for, and their effect on the Fund's financial position,
financial performance and cash flows. SFAS No. 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those fiscal years. At this time, management is evaluating the
implications of SFAS No. 161 and its impact on the Fund's financial statements
and related disclosures.
F20 | MODERATE INVESTOR 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.
15 | MODERATE INVESTOR FUND
JULY 31, 2008
- --------------------------------------------------------------------------------
Management
Conservative Commentaries
Investor Fund and
A Series of Oppenheimer Portfolio Series Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
SEMIANNUAL REPORT
Listing of Investments
Financial Statements
[OPPENHEIMERFUNDS LOGO]
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
ASSET CLASS ALLOCATION
[PIE CHART]
Fixed Income Funds 67.3%
U.S. Equity Funds 16.2
Alternative Investment Funds 11.2
Global Equity Fund 5.3
Fund holdings and allocations are subject to change. Percentages are as of July
31, 2008, and are based on the total market value of investments in affiliated
companies.
10 | CONSERVATIVE INVESTOR FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the
periods shown. 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 holdings does not constitute a recommendation by
OppenheimerFunds, Inc.
CLASS A shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 4/5/05. Unless
otherwise noted, Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). 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 4/5/05. Unless
otherwise noted, 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.
CLASS N shares of the Fund were first publicly offered on 4/5/05. 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.
11 | CONSERVATIVE INVESTOR FUND
NOTES
- --------------------------------------------------------------------------------
CLASS Y shares of the Fund were first publicly offered on 4/5/05. Class Y
shares are offered only to certain institutional investors under a special
agreement with the Distributor, and to present or former officers,
directors, trustees or employees (and their eligible family members) of
the Fund, the Manager, its affiliates, its parent company and the
subsidiaries of its parent company, and retirement plans established for
the benefit of such individuals.
An explanation of the calculation of performance is in the Fund's
Statement of Additional Information.
12 | CONSERVATIVE INVESTOR FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 applicable); and (2) ongoing costs, including management fees;
distribution and service fees; and other Fund expenses. These 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
July 31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in
this section 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 first section 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 second section of the
table provides 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 for each
class before expenses, which is not the 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), or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
exceptions described in
13 | CONSERVATIVE INVESTOR FUND
FUND EXPENSES Continued
- --------------------------------------------------------------------------------
the Statement of Additional Information). Therefore, the "hypothetical"
section of the table is 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.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL FEBRUARY 1, 2008 JULY 31, 2008 JULY 31, 2008
- ---------------------------------------------------------------------------------------
Class A $ 1,000.00 $ 977.70 $ 1.82
- ---------------------------------------------------------------------------------------
Class B 1,000.00 973.80 5.76
- ---------------------------------------------------------------------------------------
Class C 1,000.00 974.60 5.66
- ---------------------------------------------------------------------------------------
Class N 1,000.00 976.60 3.45
- ---------------------------------------------------------------------------------------
Class Y 1,000.00 978.70 0.34
HYPOTHETICAL
(5% return before expenses)
- ---------------------------------------------------------------------------------------
Class A 1,000.00 1,023.02 1.86
- ---------------------------------------------------------------------------------------
Class B 1,000.00 1,019.05 5.89
- ---------------------------------------------------------------------------------------
Class C 1,000.00 1,019.14 5.79
- ---------------------------------------------------------------------------------------
Class N 1,000.00 1,021.38 3.52
- ---------------------------------------------------------------------------------------
Class Y 1,000.00 1,024.52 0.35
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding all underlying expenses, based on the 6-month period ended July 31,
2008 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------------
Class A 0.37%
- ----------------------------------
Class B 1.17
- ----------------------------------
Class C 1.15
- ----------------------------------
Class N 0.70
- ----------------------------------
Class Y 0.07
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager 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 and reduction to
custodian expenses, if applicable.
14 | CONSERVATIVE INVESTOR FUND
STATEMENT OF INVESTMENTS July 31, 2008 / Unaudited
- --------------------------------------------------------------------------------
SHARES VALUE
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
INVESTMENT COMPANIES--99.7% 1
- ----------------------------------------------------------------------------------------
ALTERNATIVE INVESTMENT FUNDS--11.2%
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 2,855,569 $ 26,528,235
- ----------------------------------------------------------------------------------------
Oppenheimer Real Estate Fund, Cl. Y 1,292,462 24,518,002
---------------
51,046,237
- ----------------------------------------------------------------------------------------
FIXED INCOME FUNDS--67.1%
Oppenheimer Champion Income Fund, Cl. Y 6,750,843 52,184,023
- ----------------------------------------------------------------------------------------
Oppenheimer Core Bond Fund, Cl. Y 15,885,770 150,120,518
- ----------------------------------------------------------------------------------------
Oppenheimer International Bond Fund, Cl. Y 3,798,627 24,615,107
- ----------------------------------------------------------------------------------------
Oppenheimer Limited-Term Government Fund, Cl. Y 8,053,029 77,953,325
---------------
304,872,973
- ----------------------------------------------------------------------------------------
GLOBAL EQUITY FUND--5.3%
Oppenheimer Global Fund, Cl. Y 385,105 23,976,606
- ----------------------------------------------------------------------------------------
U.S. EQUITY FUNDS--16.1%
Oppenheimer Capital Appreciation Fund, Cl. Y 531,230 24,904,018
- ----------------------------------------------------------------------------------------
Oppenheimer Main Street Fund, Cl. Y 765,173 24,416,675
- ----------------------------------------------------------------------------------------
Oppenheimer Value Fund, Cl. Y 1,065,974 23,984,428
---------------
73,305,121
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $477,950,054) 99.7% 453,200,937
- ----------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.3 1,273,150
-----------------------------
NET ASSETS 100.0% $ 454,474,087
=============================
F1 | CONSERVATIVE INVESTOR FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended July 31, 2008, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES SHARES
JANUARY 31, GROSS GROSS JULY 31,
2008 ADDITIONS REDUCTIONS 2008
- ----------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y 430,901 108,272 7,943 531,230
Oppenheimer Champion Income Fund, Cl. Y 4,973,921 1,876,455 99,533 6,750,843
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 3,003,733 497,008 645,172 2,855,569
Oppenheimer Core Bond Fund, Cl. Y 12,965,949 3,202,807 282,986 15,885,770
Oppenheimer Global Fund, Cl. Y 300,157 90,832 5,884 385,105
Oppenheimer Institutional Money Market Fund, Cl. E 1,112,684 45,352,291 46,464,975 --
Oppenheimer International Bond Fund, Cl. Y 3,634,483 764,005 599,861 3,798,627
Oppenheimer Limited-Term Government Fund, Cl. Y 6,837,271 1,601,761 386,003 8,053,029
Oppenheimer Main Street Fund, Cl. Y 588,201 188,541 11,569 765,173
Oppenheimer Real Estate Fund, Cl. Y 942,921 369,283 19,742 1,292,462
Oppenheimer Value Fund, Cl. Y 818,623 263,673 16,322 1,065,974
DIVIDEND REALIZED
VALUE INCOME GAIN (LOSS)
- ----------------------------------------------------------------------------------------------------------------------
Oppenheimer Capital Appreciation Fund, Cl. Y $ 24,904,018 $ -- $ (59,192)
Oppenheimer Champion Income Fund, Cl. Y 52,184,023 1,952,795 (149,302)
Oppenheimer Commodity Strategy Total Return Fund, Cl. Y 26,528,235 -- 475,899
Oppenheimer Core Bond Fund, Cl. Y 150,120,518 4,364,053 (158,104)
Oppenheimer Global Fund, Cl. Y 23,976,606 -- (97,104)
Oppenheimer Institutional Money Market Fund, Cl. E -- 10,065 --
Oppenheimer International Bond Fund, Cl. Y 24,615,107 525,087 77,009
Oppenheimer Limited-Term Government Fund, Cl. Y 77,953,325 1,864,344 (66,332)
Oppenheimer Main Street Fund, Cl. Y 24,416,675 -- (135,250)
Oppenheimer Real Estate Fund, Cl. Y 24,518,002 184,945 (115,975)
Oppenheimer Value Fund, Cl. Y 23,984,428 -- (109,631)
--------------------------------------------
$ 453,200,937 $ 8,901,289 $ (337,982)
============================================
F2 | CONSERVATIVE INVESTOR FUND
- --------------------------------------------------------------------------------
VALUATION INPUTS
- --------------------------------------------------------------------------------
Various data inputs are used in determining the value of each of the Fund's
investments as of the reporting period end. These data inputs are categorized in
the following hierarchy under applicable financial accounting standards:
1) Level 1--quoted prices in active markets for identical assets or
liabilities (including securities actively traded on a securities
exchange)
2) Level 2--inputs other than quoted prices that are observable for the
asset (such as quoted prices for similar assets and market
corroborated inputs such as interest rates, prepayment speeds, credit
risks, etc.)
3) Level 3--unobservable inputs (including the Manager's own judgments
about assumptions that market participants would use in pricing the
asset).
The market value of the Fund's investments was determined based on the following
inputs as of July 31, 2008:
INVESTMENTS OTHER FINANCIAL
VALUATION DESCRIPTION IN SECURITIES INSTRUMENTS*
- ----------------------------------------------------------------------------------------------
Level 1--Quoted Prices $ 453,200,937 $ --
Level 2--Other Significant Observable Inputs -- --
Level 3--Significant Unobservable Inputs -- --
-----------------------------------
Total $ 453,200,937 $ --
===================================
*Other financial instruments include options written, currency contracts,
futures, forwards and swap contracts. Currency contracts and forwards are
reported at their unrealized appreciation/depreciation at measurement date,
which represents the change in the contract's value from trade date. Futures are
reported at their variation margin at measurement date, which represents the
amount due to/from the Fund at that date. Options and swaps are reported at
their market value at measurement date.
SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN
DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE
VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F3 | CONSERVATIVE INVESTOR FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
July 31, 2008
- ---------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments--
affiliated companies (cost $477,950,054) $ 453,200,937
- ---------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 2,386,910
Dividends 1,675,490
Investments sold 456,397
Other 7,072
---------------
Total assets 457,726,806
- ---------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------
Bank overdraft 460,181
- ---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,674,300
Shares of beneficial interest redeemed 938,185
Distribution and service plan fees 92,174
Transfer and shareholder servicing agent fees 43,145
Trustees' compensation 19,288
Shareholder communications 10,778
Other 14,668
---------------
Total liabilities 3,252,719
- ---------------------------------------------------------------------------------------------------
NET ASSETS $ 454,474,087
===============
- ---------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 43,478
- ---------------------------------------------------------------------------------------------------
Additional paid-in capital 468,934,632
- ---------------------------------------------------------------------------------------------------
Accumulated net investment income 7,598,279
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 2,646,815
- ---------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (24,749,117)
---------------
NET ASSETS $ 454,474,087
===============
F4 | CONSERVATIVE INVESTOR FUND
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $228,320,615 and
21,725,298 shares of beneficial interest outstanding) $ 10.51
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 11.15
- ----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $40,859,037 and 3,932,071 shares of
beneficial interest outstanding) $ 10.39
- ----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $116,647,236 and
11,249,016 shares of beneficial interest outstanding) $ 10.37
- ----------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and
offering price per share (based on net assets of $67,903,151 and 6,500,919 shares of beneficial
interest outstanding) $ 10.45
- ----------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $744,048
and 70,426 shares of beneficial interest outstanding) $ 10.56
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F5 | CONSERVATIVE INVESTOR FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended July 31, 2008
- --------------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------------
Dividends from affiliated companies $ 8,901,289
- --------------------------------------------------------------------------------------
Interest 6,308
--------------
Total investment income 8,907,597
- --------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 264,919
Class B 188,889
Class C 539,897
Class N 159,964
- --------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 96,995
Class B 25,902
Class C 68,363
Class N 59,399
Class Y 163
- --------------------------------------------------------------------------------------
Shareholder communications:
Class A 17,503
Class B 4,315
Class C 7,622
Class N 1,126
Class Y 13
- --------------------------------------------------------------------------------------
Trustees' compensation 8,827
- --------------------------------------------------------------------------------------
Custodian fees and expenses 1,050
- --------------------------------------------------------------------------------------
Other 17,142
--------------
Total expenses 1,462,089
Less reduction to custodian expenses (108)
Less waivers and reimbursements of expenses (176)
--------------
Net expenses 1,461,805
- --------------------------------------------------------------------------------------
NET INVESTMENT INCOME 7,445,792
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
- --------------------------------------------------------------------------------------
Net realized loss on investments from affiliated companies (337,982)
- --------------------------------------------------------------------------------------
Net change in unrealized depreciation on investments (17,820,869)
- --------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(10,713,059)
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F6 | CONSERVATIVE INVESTOR FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 2008 JANUARY 31,
(UNAUDITED) 2008
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 7,445,792 $ 13,616,741
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (337,982) 3,794,075
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation (17,820,869) (12,522,384)
--------------------------------
Net increase (decrease) in net assets resulting from operations (10,713,059) 4,888,432
- ------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (7,251,696)
Class B -- (1,017,520)
Class C -- (3,039,227)
Class N -- (1,836,835)
Class Y -- (29,725)
--------------------------------
-- (13,175,003)
- ------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (1,026,863)
Class B -- (175,905)
Class C -- (509,106)
Class N -- (274,075)
Class Y -- (3,952)
--------------------------------
-- (1,989,901)
- ------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 34,302,534 93,910,947
Class B 6,797,078 13,829,566
Class C 20,660,496 50,792,318
Class N 10,751,401 39,096,928
Class Y 161,642 504,155
--------------------------------
72,673,151 198,133,914
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Total increase 61,960,092 187,857,442
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 392,513,995 204,656,553
--------------------------------
End of period (including accumulated net investment income of $7,598,279 and
$152,487, respectively) $ 454,474,087 $392,513,995
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F7 | CONSERVATIVE INVESTOR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS A (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.75 $ 10.93 $ 10.53 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .20 .55 .46 .38
Net realized and unrealized gain (loss) (.44) (.24) .29 .33
-----------------------------------------------------
Total from investment operations (.24) .31 .75 .71
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.43) (.33) (.18)
Distributions from net realized gain -- (.06) (.02) --
-----------------------------------------------------
Total dividends and/or distributions to shareholders -- (.49) (.35) (.18)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.51 $ 10.75 $ 10.93 $ 10.53
=====================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.23)% 2.81% 7.11% 7.15%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 228,321 $ 199,125 $ 110,378 $ 46,318
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 215,714 $ 154,289 $ 76,542 $ 21,844
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 3.81% 4.93% 4.24% 4.50%
Total expenses 5 0.37% 0.35% 0.38% 0.53%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.37% 0.35% 0.38% 0.51%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 10% 5% 11%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.92%
Year Ended January 31, 2008 0.91%
Year Ended January 31, 2007 0.98%
Period Ended January 31, 2006 1.19%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F8 | CONSERVATIVE INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS B (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.67 $ 10.87 $ 10.49 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .16 .44 .36 .32
Net realized and unrealized gain (loss) (.44) (.22) .30 .32
----------------------------------------------------
Total from investment operations (.28) .22 .66 .64
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.36) (.26) (.15)
Distributions from net realized gain -- (.06) (.02) --
----------------------------------------------------
Total dividends and/or distributions to shareholders -- (.42) (.28) (.15)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.39 $ 10.67 $ 10.87 $ 10.49
====================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.62)% 1.93% 6.28% 6.44%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 40,859 $ 35,068 $ 21,991 $ 9,163
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 38,019 $ 27,664 $ 15,882 $ 4,018
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 3.01% 4.01% 3.36% 3.74%
Total expenses 5 1.17% 1.18% 1.23% 1.39%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.17% 1.18% 1.23% 1.34%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 10% 5% 11%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.72%
Year Ended January 31, 2008 1.74%
Year Ended January 31, 2007 1.83%
Period Ended January 31, 2006 2.05%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F9 | CONSERVATIVE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS C (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.64 $ 10.85 $ 10.48 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .16 .46 .37 .32
Net realized and unrealized gain (loss) (.43) (.24) .29 .31
-----------------------------------------------------
Total from investment operations (.27) .22 .66 .63
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.37) (.27) (.15)
Distributions from net realized gain -- (.06) (.02) --
-----------------------------------------------------
Total dividends and/or distributions to shareholders -- (.43) (.29) (.15)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.37 $ 10.64 $ 10.85 $ 10.48
=====================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.54)% 1.94% 6.28% 6.37%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 116,647 $ 98,955 $ 50,876 $ 19,145
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 108,671 $ 74,109 $ 35,277 $ 7,647
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 3.03% 4.15% 3.46% 3.78%
Total expenses 5 1.15% 1.15% 1.19% 1.36%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian expenses 1.15% 1.15% 1.19% 1.33%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 10% 5% 11%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.70%
Year Ended January 31, 2008 1.71%
Year Ended January 31, 2007 1.79%
Period Ended January 31, 2006 2.02%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F10 | CONSERVATIVE INVESTOR FUND
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS N (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.70 $ 10.90 $ 10.51 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .19 .53 .44 .41
Net realized and unrealized gain (loss) (.44) (.26) .28 .28
----------------------------------------------------
Total from investment operations (.25) .27 .72 .69
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.41) (.31) (.18)
Distributions from net realized gain -- (.06) (.02) --
----------------------------------------------------
Total dividends and/or distributions to shareholders -- (.47) (.33) (.18)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.45 $ 10.70 $ 10.90 $ 10.51
====================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.34)% 2.43% 6.84% 6.98%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 67,903 $ 58,762 $ 21,277 $ 7,569
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 64,388 $ 37,891 $ 13,671 $ 2,231
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 3.48% 4.74% 4.08% 4.82%
Total expenses 5 0.70% 0.66% 0.66% 0.72%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.70% 0.66% 0.66% 0.71%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 10% 5% 11%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 1.25%
Year Ended January 31, 2008 1.22%
Year Ended January 31, 2007 1.26%
Period Ended January 31, 2006 1.38%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F11 | CONSERVATIVE INVESTOR FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 2008 YEAR ENDED JANUARY 31,
CLASS Y (UNAUDITED) 2008 2007 2006 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.79 $ 10.96 $ 10.54 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .22 .64 .49 .38
Net realized and unrealized gain (loss) (.45) (.29) .30 .35
---------------------------------------------------
Total from investment operations (.23) .35 .79 .73
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.46) (.35) (.19)
Distributions from net realized gain -- (.06) (.02) --
---------------------------------------------------
Total dividends and/or distributions to shareholders -- (.52) (.37) (.19)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.56 $ 10.79 $ 10.96 $ 10.54
===================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (2.13)% 3.15% 7.50% 7.34%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 744 $ 604 $ 135 $ 96
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 647 $ 385 $ 127 $ 71
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.13% 5.70% 4.57% 4.42%
Total expenses 5 0.07% 0.01% 0.06% 0.30%
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses 0.07% 0.01% 0.06% 0.25%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 10% 5% 11%
1. For the period from April 5, 2005 (commencement of operations) to January 31,
2006.
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 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 less than one full year.
5. Total expenses including all underlying fund expenses were as follows:
Six Months Ended July 31, 2008 0.62%
Year Ended January 31, 2008 0.57%
Year Ended January 31, 2007 0.66%
Period Ended January 31, 2006 0.96%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
F12 | CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Portfolio Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Conservative Investor Fund (the "Fund") is a series of the Trust whose
investment objective is to seek current income with a secondary objective of
long-term growth of capital. The Fund is a special type of mutual fund known as
a "fund of funds" because it invests in other mutual funds. The Fund normally
invests in a diversified portfolio of Oppenheimer mututal funds (individually,
an "Underlying Fund" and collectively, the "Underlying Funds"). The Fund's
investment adviser is OppenheimerFunds, Inc. (the "Manager").
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 72
months after the date of purchase.
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
based upon the net asset value of the applicable Underlying Fund. For each
Underlying fund, the net asset value per share for a class of shares is
determined 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 trading by
dividing the value of the Underlying Fund's net assets attributable to that
class by the number of outstanding shares of that class on that day.
Effective for fiscal periods beginning after November 15, 2007, FASB
Statement of Financial Accounting Standards No. 157, Fair Value Measurements,
establishes a hierarchy for measuring fair value of assets and liabilities. As
required by the standard, each investment asset or liability of the Fund is
assigned a level at measurement date based on the significance and source of the
inputs to its valuation. Quoted prices in active markets for identical assets or
liabilities are classified as "Level 1", inputs other than quoted prices for an
asset that are observable are classified as "Level 2" and unobservable inputs,
including the Manager's judgment about the assumptions that a market participant
would use in pricing an asset or liability are classified as "Level 3". The
inputs used for valuing assets and liabilities are not necessarily an indication
of the risks associated with investing in
F13 | CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
those assets or liabilities. A table summarizing the Fund's investments under
these levels of classification is included following the Statement of
Investments.
The Fund classifies each of its investments in the Underlying Funds as
Level 1, without consideration as to the classification level of the specific
investments held by the Underlying Funds.
To determine their net asset values, the Underlying Funds' assets are
valued primarily on the basis of current market quotations. In the absence of a
readily available quoted market price, including for assets whose values have
been materially affected by what the Manager identifies as a significant event
occurring before the Underlying Fund's assets are valued but after the close of
their respective exchanges, the Manager, acting through its internal valuation
committee, in good faith determines the fair valuation of that Underlying Fund's
assets using consistently applied procedures under the supervision of the Board
of Trustees. The methodologies used for valuing assets are not necessarily an
indication of the risks associated with investing in those Underlying Funds.
The Underlying Funds' investments are classified as Level 1, Level 2 or
Level 3 based on the inputs used in determining their value. Investments held by
the Underlying Funds are typically classified as Level 1 or Level 2.
Fair valued assets may be classified as "Level 3" if the valuation
primarily reflects the Manager's own assumptions about the inputs that market
participants would use in valuing such securities.
There have been no significant changes to the fair valuation methodologies
during the period.
- --------------------------------------------------------------------------------
RISKS OF INVESTING IN THE UNDERLYING FUNDS. Each of the Underlying Funds in
which the Fund invests has its own investment risks, and those risks can affect
the value of the Fund's investments and therefore the value of the Fund's
shares. To the extent that the Fund invests more of its assets in one Underlying
Fund than in another, the Fund will have greater exposure to the risks of that
Underlying Fund.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee.
- --------------------------------------------------------------------------------
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
F14 | CONSERVATIVE INVESTOR FUND
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. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
As of July 31, 2008, the Fund had available for federal income tax purposes
an estimated capital loss carryforward of $337,982 expiring by 2016. This
estimated capital loss carryforward represents carryforward as of the end of
the last fiscal year, increased for losses deferred under tax accounting rules
to the current fiscal year and is increased or decreased by capital losses or
gains realized in the first six months of the current fiscal year. During the
six months ended July 31, 2008, it is estimated that the Fund will not utilize
any capital loss carryforward to offset realized capital gains.
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.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2008 are noted in the following
table. The primary difference between book and tax appreciation or depreciation
of securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $ 478,678,723
=============
Gross unrealized appreciation $ 8,074,262
Gross unrealized depreciation (33,552,048)
-------------
Net unrealized depreciation $ (25,477,786)
=============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the Plan. Active
F15 | CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
independent trustees as of the Freeze Date have each elected a distribution
method with respect to their benefits under the Plan. During the six months
ended July 31, 2008, the Fund's projected benefit obligations, payments to
retired trustees and accumulated liability were as follows:
Projected Benefit Obligations Increased $ 5,061
Payments Made to Retired Trustees 4
Accumulated Liability as of July 31, 2008 13,824
The Board of Trustees has adopted a compensation deferral 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 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 compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date. Income and capital gain distributions, if any, are
declared and paid annually or at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
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 is recognized on an accrual basis. Discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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
F16 | CONSERVATIVE INVESTOR FUND
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------
CLASS A
Sold 6,136,018 $ 65,841,490 12,148,307 $ 135,563,875
Dividends and/or distributions reinvested -- -- 690,645 7,559,691
Redeemed (2,941,221) (31,538,956) (4,406,363) (49,212,619)
-------------------------------------------------------------------
Net increase 3,194,797 $ 34,302,534 8,432,589 $ 93,910,947
===================================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS B
Sold 1,400,415 $ 14,907,906 2,029,631 $ 22,343,722
Dividends and/or distributions reinvested -- -- 105,016 1,140,471
Redeemed (755,636) (8,110,828) (870,723) (9,654,627)
-------------------------------------------------------------------
Net increase 644,779 $ 6,797,078 1,263,924 $ 13,829,566
===================================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS C
Sold 3,544,987 $ 37,620,515 6,283,929 $ 69,461,639
Dividends and/or distributions reinvested -- -- 294,395 3,191,243
Redeemed (1,592,370) (16,960,019) (1,969,339) (21,860,564)
-------------------------------------------------------------------
Net increase 1,952,617 $ 20,660,496 4,608,985 $ 50,792,318
===================================================================
F17 | CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
SIX MONTHS ENDED JULY 31, 2008 YEAR ENDED JANUARY 31, 2008
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------
CLASS N
Sold 2,045,027 $ 21,844,170 5,418,049 $ 60,119,664
Dividends and/or distributions reinvested -- -- 166,742 1,815,822
Redeemed (1,037,035) (11,092,769) (2,044,399) (22,838,558)
-------------------------------------------------------------------
Net increase 1,007,992 $ 10,751,401 3,540,392 $ 39,096,928
===================================================================
- ----------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 26,636 $ 291,109 70,557 $ 802,208
Dividends and/or distributions reinvested -- -- 2,971 32,626
Redeemed (12,173) (129,467) (29,847) (330,679)
-------------------------------------------------------------------
Net increase 14,463 $ 161,642 43,681 $ 504,155
===================================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
July 31, 2008, were as follows:
PURCHASES SALES
-------------------------------------------------------------------
Investment securities $ 103,378,389 $ 18,686,303
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Manager does not
charge a management fee, but rather collects indirect management fees from
investments in the Underlying Funds and the Fund's investment in IMMF. The
weighted indirect management fees collected from the Underlying Funds and the
Fund's Investment in IMMF, as a percent of average daily net assets of the Fund
for the six months ended July 31, 2008 was 0.52%.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended July 31, 2008, the
Fund paid $232,930 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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.
F18 | CONSERVATIVE INVESTOR FUND
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically 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 periodically for providing personal service 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 periods. 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 (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the Plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares and 0.25% on Class N shares. The Distributor also receives a service fee
of 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 Plans at June 30, 2008 for Class B, Class C and Class N
shares were $534,001, $809,892 and $713,619, 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 following table 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
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
SIX MONTHS ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ---------------------------------------------------------------------------------------------------------
July 31, 2008 $235,261 $4,340 $87,294 $14,619 $648
F19 | CONSERVATIVE INVESTOR FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily agreed to a
total expense limitation on the aggregate amount of combined direct
(fund-of-funds level) and indirect expense so that "Total expenses" as a
percentage of average daily net assets will not exceed the following annual
rates: 1.25%, 2.00%, 2.00%, 1.50% and 1.00%, for Class A, Class B, Class C,
Class N and Class Y, respectively. The Manager may modify or terminate this
undertaking at any time without notice to shareholders. These expense
limitations do not include extraordinary expenses and other expenses not
incurred in the ordinary course of the Fund's business. Notwithstanding the
foregoing limits, the Manager is not required to waive or reimburse Fund
expenses in excess of indirect management fees earned from investments in
Underlying Funds to assure that expenses do not exceed those limits.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
Prior to June 1, 2008, the Manager waived fees and/or reimbursed Fund
expenses in an amount equal to the indirect management fees incurred through the
Fund's investment in IMMF. During the six months ended July 31, 2008, the
Manager waived $176 for IMMF management fees.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENT
In March 2008, the Financial Accounting Standards Board ("FASB") issued
Statement on Financial Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard requires enhanced
disclosures about derivative and hedging activities, including qualitative
disclosures about how and why the Fund uses derivative instruments, how these
activities are accounted for, and their effect on the Fund's financial position,
financial performance and cash flows. SFAS No. 161 is effective for financial
statements issued for fiscal years beginning after November 15, 2008 and interim
periods within those fiscal years. At this time, management is evaluating the
implications of SFAS No. 161 and its impact on the Fund's financial statements
and related disclosures.
F20 | CONSERVATIVE INVESTOR 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.
15 | CONSERVATIVE INVESTOR 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. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES 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 FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by executive
search firms which the Committee may engage from time to time and may also
consider shareholder recommendations. The Committee may consider the advice
and recommendation of the Funds' investment manager and its affiliates in
making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met by
a trustee nominee. In evaluating trustee nominees, the Committee considers,
among other things, an individual's background, skills, and experience;
whether the individual is an "interested person" as defined in the
Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates to
present to the Board and, in such cases where required, to shareholders.
Recommendations for trustee nominees should, at a minimum, be accompanied
by the following:
- the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
- a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
- any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
- the name and address of the person submitting the recommendation and,
if that person is a shareholder, the period for which that person held
Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under the
Investment Company Act of 1940. In addition, certain other relationships
with Massachusetts Mutual Life Insurance Company or its subsidiaries, with
registered broker-dealers, or with the Funds' outside legal counsel may
cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving as
a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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 07/31/2008, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
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 Portfolio Series
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 09/12/2008
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: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 09/12/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 09/12/2008