Oppenheimer Balanced Fund/VA Semiannual Report

42 Pages·2012·0.31 MB·English

June30,2012
Oppenheimer
Balanced Fund/VA Semiannual
Report
A Series of Oppenheimer Variable Account Funds
SEMIANNUAL REPORT
Fund Performance Discussion
Listing of Top Holdings
Financial Statements
BALANCED FUND/VA
OPPENHEIMER
PortfolioManagers:MitchWilliams,CFA,1 PortfolioAllocation
KrishnaMemaniandPeterA.Strzalkowski,CFA
CumulativeTotalReturns
Forthe6-MonthPeriodEnded6/29/122
Non-ServiceShares 4.53%
ServiceShares 4.40
AverageAnnualTotalReturns
ForthePeriodsEnded6/29/122
1-Year 5-Year 10-Year Common Stocks 51.2%
Non-ServiceShares 0.96% –4.30% 2.67% Mortgage-Backed Obligations 22.1
ServiceShares 0.62 –4.55 2.41 Non-Convertible Corporate Bonds and Notes 16.4
Money Market Fund 6.1
ExpenseRatios Asset-Backed Securities 3.5
FortheFiscalYearEnded12/30/112 U.S. Government Obligations 0.7
Options Purchased —*
Gross Net
Expense Expense *Representsavalueoflessthan0.05%.
Ratios Ratios
Portfolioholdingsandallocationsaresubjecttochange.
Non-ServiceShares 0.93% 0.69% PercentagesareasofJune29,2012,andarebasedonthe
ServiceShares 1.18 0.94 totalmarketvalueofinvestments.
Theperformancedataquotedrepresentspastper-
formance,whichdoesnotguaranteefutureresults. TopTenCommonStockHoldings
Theinvestmentreturnandprincipalvalueofaninvestmentin ChevronCorp. 3.2%
theFundwillfluctuatesothataninvestor’sshares,when
Humana,Inc. 2.3
redeemed,maybeworthmoreorlessthantheiroriginalcost.
Coca-ColaCo.(The) 2.3
Currentperformanceandexpenseratiosmaybeloweror
HoneywellInternational,Inc. 2.1
higherthanthedataquoted.Forperformancedatacurrentto
themostrecentmonthend,callusat1.800.988.8287.TheFund’s Merck&Co.,Inc. 2.1
totalreturnsshouldnotbeexpectedtobethesameasthe WellsFargo&Co. 2.0
returnsofotherfunds,whetherornotbothfundshavethe TargetCorp. 2.0
sameportfoliomanagersand/orsimilarnames.TheFund’s
ExxonMobilCorp. 1.9
totalreturnsdonotincludethechargesassociatedwiththe
UnitedHealthGroup,Inc. 1.8
separateaccountproductsthatofferthisFund.Suchperform-
GoldmanSachsGroup,Inc.(The) 1.8
ancewouldhavebeenlowerifsuchchargesweretakeninto
account.ExpenseratiosareasstatedintheFund’sprospectus Portfolioholdingsandallocationsaresubjecttochange.
currentasofthedateofthisreport.Thenetexpenseratiostake PercentagesareasofJune29,2012,andarebasedon
intoaccountvoluntaryfeewaiversand/orexpensereimburse- netassets.
ments,withoutwhichperformancewouldhavebeenless.Some
oftheseundertakingsmaybemodifiedorterminatedatany
time,asindicatedintheFund’sprospectus.
1.BecameaportfoliomanagerNovember2011.
2 OPPENHEIMER BALANCED FUND/VA
PERFORMANCE DISCUSSION
FUND
Duringthesix-monthreportingperiod,theFund’sNon-Servicesharesproducedareturnof4.53%.Incomparison,the
Russell1000ValueIndexreturned8.68%andtheBarclaysCapitalU.S.AggregateBondIndexreturned2.37%.2Measured
separately,theFund’sequitycomponentunderperformedtheRussell1000ValueIndexanditsfixed-incomecomponent
outperformedtheBarclaysCapitalU.S.AggregateBondIndex.
EconomicandMarketEnvironment
TheperiodbeganduringatimeofimprovedmarketsentimentinwhichtheUnitedStatesmanagedtoavoidareturnto
recessionandEuropeanpolicymakersappearedtotakestepstoaddresstheregion’ssovereigndebtandbankingsector
crises.Renewedinvestoroptimismhelpedproducegainsacrossanumberofinternationalequitymarketsandhistorically
riskierassetclassesoverthefirstthreemonthsof2012.Thereboundacrossriskmarketsgainedmomentumafterthe
EuropeanCentralBankimplementedtheLong-TermRefinancingOperation(“LTRO”)toenhanceliquidityfortroubled
banksandreduceratesonnewlyissuedsovereigndebtsecurities.
However,thesecondquarterwasavolatiletimeforglobalmarkets.ThefearofcontagionfromtheworseningEuro-
peansovereigndebtcrisisandarecessionacrossmuchofEuropedrovenegativemarketsentiment,particularlyover
MayandJune.Veryhighunemployment,soaringdebtandhigherborrowingcostsinGreece,SpainandItalycontributed
toseriousquestionsoverhowtoimplementausteritymeasuresandrestructuredebtorinsteadtakeadifferenttactand
providesomeorallofthosecountrieswithadditionalfunds.Perhapsmostworrisomeofalltoinvestorswasthepossi-
bilityofGreecepullingoutoftheeuroanditsramificationsforthefutureoftheEurozoneanditscommoncurrency.
IntheU.S.,slowerthanexpectedfirstquartergrowthalsocontributedtoasell-offintheU.S.stockmarket.Consumer
confidencedroppedasU.S.unemploymentfigurestickedslightlyupwardsaftershowingsignsofimprovementfromthe
recessionhighs.Bondmarketswerenotimmunetothemarketvolatility,postingmodestreturnsacrossmostsectors.The
periodendedonapositivenoteforthemarkets.TheresultsofelectionsinGreeceandcontinuedeffortsbyEuropean
policymakerstostabilizethesituationintheregionappearedtosoothemarketjittersslightlyinthefinaldaysoftheperiod.
FundReview
Thefixed-incomecomponent’spositiveperformancewasdrivenbyitsexposuretospreadproducts—credit,mortgage-
backedobligations,non-primeasset-backedsecurities(ABS)—attheexpenseofgovernmentdebt.TheFund’sinvest-
mentsinmortgage-backedobligationsincludedresidentialmortgage-backedsecurities(RMBS)andcommercial
mortgage-backedsecurities,bothofwhichbenefitedresults.Despiteboutsofriskaversion,mortgage-backedobligations
generallyproducedpositiveresultsashousingintheU.S.begantostabilize.TheFund’sexposuretoRMBSincluded
securitiesguaranteedbygovernment-sponsoredenterprises,commonlyreferredtoasagencyRMBS,aswellasasmaller
allocationtoRMBSoriginatedbyprivateentities,alsoknownasnon-agencyRMBS.Thefixed-incomecomponentalso
receivedpositiveresultsfromitsexposuretohighyieldandinvestmentgradedebt.
TheFund’sequitycomponentoutperformedintheconsumerstaplessectorasaresultofsuperiorstockselection.
Fouroutofthetopfiveperformingstockswereinthefinancialssector:WellsFargo&Co.,JPMorganChase&Co.,U.S.
BancorpandMetLife,Inc.FollowinganotherroundofbankstresstestsbytheFederalReserveinMarch2012,stocksof
banks,includingWellsFargo,JPMorganChaseandU.S.Bancorp,rallied.WeexitedourpositioninJPMorganbyperiod
end.ThestockofinsurancecompanyMetLifeperformedpositivelyearlyintheperiod,andweexitedourpositionover
thefirstquarter,lockingingains.AlsocontributingtoperformancewasconsumerdiscretionarystockComcastCorp.
Thecableprovider’shigh-speedInternetsubscriptionsincreasedduringtheperiod,whichcontributedtoapositiveearn-
ingssurprise.Additionally,Comcastaggressivelyrepurchasedsharesandincreaseditsdividendbyoverfortypercent.
2.June29,2012,wasthelastbusinessdayoftheFund’ssemiannualperiod.SeeNote1oftheaccompanyingNotestoFinancial
Statements.IndexreturnsarecalculatedthroughJune30,2012.December30,2011wasthelastbusinessdayoftheFund’s2011
fiscalyear.
3 OPPENHEIMER BALANCED FUND/VA
PERFORMANCE DISCUSSION
FUND
TheFund’sequitycomponentunderperformedtheRussell1000ValueIndexprimarilyintheindustrialsandinformation
technologysectors.Themostsignificantdetractorsfromtheequitycomponent’sperformancewereJuniperNetworks,Inc.,
NavistarInternationalCorp.andGenOnEnergy,Inc.NetworkingcompanyJuniperexperienceddeclinesoverthesecond
quarterof2012,announcingadecreaseinrevenue.Navistar,amanufacturerofcommercialandmilitarytrucks,wasneg-
ativelyimpactedbyhighercosts.ItalsohaslostshareintheHeavyDutyClass8truckmarketasthecompanystruggledto
developanenginethatmeetsnewemissionsrules.GenOnEnergyisoneofthelargestgeneratorsofwholesaleelectricityin
theUnitedStates.SharesofGenOnwerehamperedbydecliningnaturalgasprices,whichhit10-yearlowsduringtheperi-
od.WecontinuetobelievethatGenOnwillbenefitfromitshealthybalancesheetandthepotentialforhigherpower
pricesstemmingfromEPAregulationsthatmayessentiallyforcetheclosureofseveralcompetingpowerplants.Alsohurt-
ingperformancewereHumana,Inc.andCiscoSystems,Inc.Humana,Inc.detractedfromresultsasthemanagedhealthcare
companyreportedadecreaseinprofitinitsfirstquarter,breakingastreakoffourstraightprofitincreases.Networking
companyCiscodeclinedafterreleasingearningsguidancebelowanalysts’expectations.
Outlook
GiventherecentspateofweakereconomicnewsgloballyandtheongoingcrisisinEurope,wearecognizantthathead-
windsexistforrisk-basedassets.WhileasofteningintheChineseeconomyisevident,wedonotbelievethatitheraldsa
hardlanding.Indeed,policymakersinBeijinghavetakenstepstoeaseliquidityintheMiddleKingdomwhileattempting
totakesomeofthefrothoutofthepropertysector.DespitefreshpronouncementsfromtheEUSummitinlateJune,it
isprematuretosoundtheall-clearonperipheralEuropeandimportantdetailsremainunsettledmuchtothechagrinof
debtmarketsneartheepicenterandabroad.Wedonotexpecttheseconcernstoabatequicklyandacknowledgethe
risktheypresentforseeminglyunrelatedassetclasses.
TheupcomingcongressionalandpresidentialelectionsintheU.S.mayprovidesomevolatility,especiallygiventhe
contentiousdebateoverentitlements,taxes,andthedeficit.MarketsseemedtowelcomeOperationTwist,andwe
believethattheFedwillrespondtoanydowndraftindomesticeconomicactivitywithadditionalmeasuressuchas
additionalquantitativeeasingoroutrightbuyingofU.S.mortgagesinordertokeepthemodestrevivaloftheeconomy
ontrack.
InvestorsshouldconsidertheFund’sinvestmentobjective,risks,andchargesandexpensescarefullybeforeinvesting.
TheFund’sprospectusandsummaryprospectuscontainthisandotherinformationabouttheFund,andmaybe
obtainedbyaskingyourfinancialadvisororcallingusat1.800.988.8287.Readprospectusesandsummary
prospectusescarefullybeforeinvesting.
Totalreturnsincludechangesinsharepriceandreinvestmentofdividendsandcapitalgainsdistributionsina
hypotheticalinvestmentfortheperiodsshown.Cumulativetotalreturnsarenotannualized.
TheFund’sinvestmentstrategyandfocuscanchangeovertime.Thementionofspecificfundholdingsdoesnot
constitutearecommendationbyOppenheimerFunds,Inc.
SharesofOppenheimerfundsarenotdepositsorobligationsofanybank,arenotguaranteedbyanybank,arenot
insuredbytheFDICoranyotheragency,andinvolveinvestmentrisks,includingthepossiblelossoftheprincipal
amountinvested.Theperformancedataquotedrepresentspastperformance,whichdoesnotguaranteefutureresults.
4 OPPENHEIMER BALANCED FUND/VA
FUND EXPENSES
FundExpenses.AsashareholderoftheFund,youincurtwotypesofcosts:(1)transactioncostsand(2)ongoingcosts,
includingmanagementfees;distributionandservicefees;andotherFundexpenses.Theseexamplesareintendedtohelp
youunderstandyourongoingcosts(indollars)ofinvestingintheFundandtocomparethesecostswiththeongoing
costsofinvestinginothermutualfunds.
Theexamplesarebasedonaninvestmentof$1,000.00investedatthebeginningoftheperiodandheldfortheentire
6-monthperiodendedJune29,2012.
ActualExpenses. Thefirstsectionofthetableprovides informationaboutactualaccountvaluesandactualexpenses.
Youmayusetheinformationinthissectionfortheclassofsharesyouhold,togetherwiththeamountyouinvested, to
estimatetheexpensethatyoupaidovertheperiod.Simply divide youraccountvalueby$1,000.00(forexample, an
$8,600.00accountvaluedivided by$1,000.00=8.60),thenmultiply theresultbythenumberinthefirstsectionunderthe
headingentitled “Expenses PaidDuringPeriod”toestimatetheexpensesyoupaidonyouraccountduringthisperiod.
HypotheticalExampleforComparisonPurposes.Thesecondsectionofthetableprovidesinformationabouthypo-
theticalaccountvaluesandhypotheticalexpensesbasedontheFund’sactualexpenseratioforeachclassofshares,and
anassumedrateofreturnof5%peryearforeachclassbeforeexpenses,whichisnottheactualreturn.Thehypothetical
accountvaluesandexpensesmaynotbeusedtoestimatetheactualendingaccountbalanceorexpensesyoupaidfor
theperiod.YoumayusethisinformationtocomparetheongoingcostsofinvestingintheFundandotherfunds.Todo
so,comparethis5%hypotheticalexamplefortheclassofsharesyouholdwiththe5%hypotheticalexamplesthat
appearintheshareholderreportsoftheotherfunds.
Pleasenotethattheexpensesshowninthetablearemeanttohighlightyourongoingcostsonlyanddonotreflectany
chargesassociatedwiththeseparateaccountsthatofferthisFund.Therefore,the“hypothetical”linesofthetableare
usefulincomparingongoingcostsonly,andwillnothelpyoudeterminetherelativetotalcostsofowningdifferent
funds.Inaddition,iftheseseparateaccountchargeswereincludedyourcostswouldhavebeenhigher.
Beginning Ending Expenses
Account Account PaidDuring
Value Value 6MonthsEnded
Actual January1,2012 June29,2012 June29,2012
Non-ServiceShares $1,000.00 $1,045.30 $3.39
ServiceShares 1,000.00 1,044.00 4.66
Hypothetical
(5%returnbeforeexpenses)
Non-ServiceShares 1,000.00 1,021.41 3.35
ServiceShares 1,000.00 1,020.18 4.61
ExpensesareequaltotheFund’sannualizedexpenseratioforthatclass,multipliedbytheaverageaccountvalue
overtheperiod,multipliedby181/366(toreflecttheone-halfyearperiod).Thoseannualizedexpenseratios,
excludingindirectexpensesfromaffiliatedfund,basedonthe6-monthperiodendedJune29,2012areasfollows:
Class ExpenseRatios
Non-ServiceShares 0.67%
ServiceShares 0.92
Theexpenseratiosreflectvoluntarywaiversand/orreimbursementsofexpensesbytheFund’sManager.Someof
theseundertakingsmaybemodifiedorterminatedatanytime,asindicatedintheFund’sprospectus.The
“FinancialHighlights”tablesintheFund’sfinancialstatements,includedinthisreport,alsoshowthegross
expenseratios,withoutsuchwaiversorreimbursementsandreductiontocustodianexpenses,ifapplicable.
5 OPPENHEIMER BALANCED FUND/VA
INVESTMENTS
STATEMENT OF June29,2012*/Unaudited
Shares Value Shares Value
CommonStocks—59.1% InsuranceContinued
Marsh&McLennanCos.,Inc. 49,970 $ 1,610,533
ConsumerDiscretionary—5.8%
Automobiles—0.8% TravelersCos.,Inc.(The) 32,790 2,093,314
FordMotorCo. 254,690 $ 2,442,477 8,107,910
HouseholdDurables—1.4%
MohawkIndustries,Inc.1 58,500 4,085,055 HealthCare—9.2%
Media—1.6% HealthCareEquipment&Supplies—0.8%
ComcastCorp.,Cl.A 127,060 4,062,108 BaxterInternational,Inc. 45,590 2,423,109
Viacom,Inc.,Cl.B 18,130 852,473 HealthCareProviders&Services—4.1%
Humana,Inc. 87,140 6,748,122
4,914,581
UnitedHealthGroup,Inc. 90,890 5,317,065
MultilineRetail—2.0% 12,065,187
TargetCorp. 99,030 5,762,556
ConsumerStaples—4.9% Pharmaceuticals—4.3%
Merck&Co.,Inc. 146,030 6,096,753
Beverages—4.1%
Coca-ColaCo.(The) 85,750 6,704,793 Pfizer,Inc. 168,460 3,874,580
MolsonCoorsBrewingCo., TevaPharmaceuticalIndustriesLtd.,
Cl.B,Non-Vtg. 90,690 3,773,611 SponsoredADR 67,750 2,672,060
PepsiCo,Inc. 25,500 1,801,830 12,643,393
12,280,234
Industrials—5.7%
HouseholdProducts—0.8% Aerospace&Defense—2.1%
Church&DwightCo.,Inc. 41,040 2,276,489 HoneywellInternational,Inc. 110,200 6,153,568
Energy—7.0% Airlines—0.3%
UnitedContinentalHoldings,Inc.1 35,660 867,608
EnergyEquipment&Services—0.9%
BakerHughes,Inc. 66,680 2,740,548 Construction&Engineering—0.6%
QuantaServices,Inc.1 77,940 1,876,016
Oil,Gas&ConsumableFuels—6.1%
ApacheCorp. 17,910 1,574,110 IndustrialConglomerates—1.2%
TycoInternationalLtd. 67,920 3,589,572
ChevronCorp. 89,870 9,481,285
Machinery—0.5%
ExxonMobilCorp. 64,730 5,538,946
NavistarInternationalCorp.1 47,140 1,337,362
ValeroEnergyCorp. 53,150 1,283,573
TradingCompanies&Distributors—1.0%
17,877,914 AerCapHoldingsNV1 256,730 2,895,914
InformationTechnology—5.3%
Financials—13.3%
CommunicationsEquipment—2.7%
CapitalMarkets—3.1% CiscoSystems,Inc. 190,360 3,268,481
BlackRock,Inc. 23,240 3,946,617
JuniperNetworks,Inc.1 299,530 4,885,334
GoldmanSachsGroup,Inc.(The) 54,740 5,247,376
8,153,815
9,193,993
ElectronicEquipment&Instruments—1.2%
CommercialBanks—5.9% TEConnectivityLtd. 109,740 3,501,803
M&TBankCorp. 47,870 3,952,626
Semiconductors&SemiconductorEquipment—1.4%
PNCFinancialServicesGroup,Inc. 42,610 2,603,897 AnalogDevices,Inc. 49,420 1,861,651
SunTrustBanks,Inc. 134,570 3,260,631 Xilinx,Inc. 66,570 2,234,755
U.S.Bancorp 56,830 1,827,653 4,096,406
WellsFargo&Co. 173,060 5,787,126
Materials—2.4%
17,431,933
Chemicals—1.5%
DiversifiedFinancialServices—1.5% CelaneseCorp.,SeriesA 23,950 829,149
Citigroup,Inc. 162,130 4,443,983 MosaicCo.(The) 67,200 3,679,872
Insurance—2.8% 4,509,021
ACELtd. 59,410 4,404,063
6 OPPENHEIMER BALANCED FUND/VA
Principal
Shares Value Amount Value
Containers&Packaging—0.9% Asset-BackedSecuritiesContinued
Rock-TennCo.,Cl.A 47,340 $ 2,582,397
AmeriCreditAutomobile
TelecommunicationServices—1.7% ReceivablesTrust2011-1,
DiversifiedTelecommunicationServices—1.7% AutomobileReceivables-BackedNts.,
AT&T,Inc. 74,880 2,670,221 Series2011-1,Cl.D,4.26%,2/8/17 $ 90,000 $ 95,581
Orbcomm,Inc.1 375 1,223 AmeriCreditAutomobile
ReceivablesTrust2011-2,
VerizonCommunications,Inc. 50,790 2,257,108
AutomobileReceivables-BackedNts.:
4,928,552
Series2011-2,Cl.A3,1.61%,10/8/15 105,000 105,803
Series2011-2,Cl.B,2.33%,3/8/16 300,000 304,662
Utilities—3.8%
Series2011-2,Cl.D,4%,5/8/17 300,000 313,712
ElectricUtilities—2.2%
AmeriCreditAutomobile
AmericanElectricPowerCo.,Inc. 54,240 2,164,153
ReceivablesTrust2011-4,
EdisonInternational,Inc. 95,630 4,418,106 AutomobileReceivables-BackedNts.,
6,582,259 Series2011-4,Cl.D,4.08%,7/10/17 500,000 509,563
AmeriCreditAutomobile
EnergyTraders—0.7% ReceivablesTrust2011-5,
GenOnEnergy,Inc.1 1,120,620 1,916,260 AutomobileReceivables-BackedNts.,
Multi-Utilities—0.9% Series2011-5,Cl.D,5.05%,12/8/17 305,000 318,780
NiSource,Inc. 41,040 1,015,740 AmeriCreditAutomobile
PublicServiceEnterpriseGroup,Inc. 49,800 1,618,500 ReceivablesTrust2012-1,
AutomobileReceivables-BackedNts.,
2,634,240
Series2012-1,Cl.D,4.72%,3/8/18 270,000 285,425
TotalCommonStocks(Cost$167,453,428) 174,314,155
AmeriCreditAutomobile
Principal ReceivablesTrust2012-2,
Amount AutomobileReceivables-BackedNts.,
Series2012-2,Cl.D,3.38%,4/9/18 455,000 458,104
Asset-BackedSecurities—4.1%
AESOPFundingIILLC, AvisBudgetRentalCarFunding
AutomobileReceivablesNts., AESOPLLC,
Series2011-1A,Cl.A,1.85%,11/20/132 $ 185,000 186,260 AutomobileReceivableNts.:
Series2011-2A,Cl.A,2.37%,11/20/142 300,000 306,011
AllyMasterOwnerTrust,
Series2012-1A,Cl.A,2.044%,8/20/162 235,000 237,442
Asset-BackedNts.,
Series2012-2,Cl.A,0.742%,3/15/163 350,000 350,453 CentrePointFundingLLC,
Asset-BackedNts.,
AllyMasterOwnerTrust,
Series2010-1A,Cl.1,5.43%,7/20/152 62,266 65,304
AutomobileReceivablesNts.,
Series2011-4,Cl.A2,1.54%,9/15/16 460,000 464,690 CitibankCreditCardIssuanceTrust,
CreditCardReceivableNts.,
AmericanCreditAcceptance
Series2003-C4,Cl.C4,5%,6/10/15 250,000 258,589
ReceivablesTrust2012-1,
AutomobileReceivablesNts., CitibankOmniMasterTrust,
Series2012-1,Cl.A1,1.96%,1/5/142 107,041 107,049 CreditCardReceivables:
Series2009-A13,Cl.A13,
AmeriCreditAutomobile
5.35%,8/15/182 430,000 469,852
ReceivablesTrust2009-1,
Series2009-A17,Cl.A17,
AutomobileReceivables-BackedNts.,
4.90%,11/15/182 40,000 43,698
Series2009-1,Cl.A3,3.04%,10/15/13 12,745 12,761
CNHWholesaleMaster
AmeriCreditAutomobile
NoteTrust2011-1,EquipmentNts.,
ReceivablesTrust2010-1,
Series2011-1,Cl.1A,1.042%,1/20/413 115,000 115,348
AutomobileReceivables-BackedNts.,
Series2010-1,Cl.D,6.65%,7/17/17 210,000 226,886 CPSAutoTrust,
AutomobileReceivableNts.,
AmeriCreditAutomobile
Series2012-B,Cl.A,3.09%,9/1/192 380,000 380,147
ReceivablesTrust2010-2,
AutomobileReceivables-BackedNts.: CreditAcceptanceAutoLoanTrust,
Series2010-2,Cl.C,4.52%,10/8/15 290,000 302,769 AutomobileReceivableNts.,
Series2010-2,Cl.D,6.24%,6/8/16 40,000 43,266 Series2012-1A,Cl.A,2.20%,9/16/192 175,000 175,624
7 OPPENHEIMER BALANCED FUND/VA
INVESTMENTS
STATEMENT OF Unaudited/Continued
Principal Principal
Amount Value Amount Value
Asset-BackedSecuritiesContinued Asset-BackedSecuritiesContinued
DSCFloorplanMasterOwnerTrust, SantanderDriveAuto
AutomobileReceivableNts., ReceivablesTrust2010-B,
Series2011-1,Cl.A,3.91%,3/15/16 $ 310,000 $ 318,273 AutomobileReceivablesNts.,
Series2010-B,Cl.C,3.02%,10/17/162 $ 290,000 $ 295,203
DTAutoOwnerTrust2009-1,
AutomobileReceivableNts., SantanderDriveAuto
Series2009-1,Cl.A1,2.98%,10/15/152 32,070 32,119 ReceivablesTrust2011-1,
AutomobileReceivablesNts.,
DTAutoOwnerTrust2011-1A,
Series2011-1,Cl.D,4.01%,2/15/17 360,000 367,088
AutomobileReceivableNts.,
Series2011-1A,Cl.C,3.05%,8/15/152 430,000 431,052 SantanderDriveAuto
ReceivablesTrust2011-4,
DTAutoOwnerTrust2011-2A,
AutomobileReceivablesNts.,
AutomobileReceivableNts.,
Series2011-4,Cl.B,2.90%,5/16/16 105,000 108,148
Series2011-2A,Cl.C,3.05%,7/15/132 105,000 104,970
SantanderDriveAuto
DTAutoOwnerTrust2011-3A,
ReceivablesTrust2011-S1A,
AutomobileReceivableNts.,
AutomobileReceivablesNts.,
Series2011-3A,Cl.C,4.03%,12/15/412 299,000 303,599
Series2011-S1A,Cl.D,3.10%,5/15/174 288,732 289,494
DTAutoOwnerTrust2012-1A,
SantanderDriveAuto
AutomobileReceivableNts.,
ReceivablesTrust2011-S2A,
Series2012-1A,Cl.A,1.06%,1/15/152 245,690 245,717
AutomobileReceivablesNts.,
ExeterAutomobileReceivablesTrust,
Series2011-S2A,Cl.D,3.35%,6/15/174 201,658 201,658
AutomobileReceivableNts.,
SantanderDriveAuto
Series2012-1A,Cl.A,2.02%,8/15/162 215,639 215,781
ReceivablesTrust2012-1,
FirstInvestorsAutoOwner
AutomobileReceivablesNts.,
Trust2011-1,
Series2012-1,Cl.A2,1.25%,4/15/15 75,000 75,338
AutomobileReceivableNts.,
SantanderDriveAuto
Series2011-1,Cl.A2,1.47%,3/16/15 130,711 130,656
ReceivablesTrust2012-2,
FordCreditFloorplanMaster
AutomobileReceivablesNts.,
OwnerTrust,
Series2012-2,Cl.D,5%,2/15/18 355,000 358,960
AutomobileReceivableNts.,
SNAACAutoReceivablesTrust,
Series2012-1,Cl.A,0.712%,1/15/163 155,000 155,609
AutomobileReceivableNts.,
HertzVehicleFinancingLLC,
Series2012-1A,Cl.A,1.78%,6/15/162 215,000 215,117
AutomobileReceivableNts.,
WestlakeAutomobile
Series2010-1A,Cl.A1,2.60%,2/25/152 490,000 499,956
ReceivablesTrust2011-1,
MBNACreditCardMasterNoteTrust,
AutomobileReceivablesNts.,
CreditCardReceivables,
Series2011-1,Cl.A3,1.49%,6/16/142 155,000 155,262
Series2003-C7,Cl.C7,
WheelsSPVLLC,Asset-BackedNts.,
1.592%,3/15/163 375,000 377,186
Series2012-1,Cl.A2,1.47%,3/20/212 170,000 170,118
RentalCarFinanceCorp.,
TotalAsset-BackedSecurities
AutomobileReceivableNts.,
(Cost$11,855,402) 11,966,831
Series2011-1A,Cl.A1,2.51%,2/25/162 265,000 269,475
SantanderDriveAuto
Mortgage-BackedObligations—25.6%
ReceivablesTrust2010-2,
GovernmentAgency—20.6%
AutomobileReceivablesNts.,
Series2010-2,Cl.A2,0.95%,8/15/13 25,023 25,026 FHLMC/FNMA/FHLB/Sponsored—20.1%
FederalHomeLoanMortgageCorp.:
SantanderDriveAuto
4.50%,10/15/18 130,085 139,159
ReceivablesTrust2010-3,
4.50%,8/1/425 2,375,000 2,536,426
AutomobileReceivablesNts.,
5%,12/15/34 9,439 10,215
Series2010-3,Cl.C,3.06%,11/15/17 350,000 354,613
5.50%,9/1/39 1,178,393 1,283,902
SantanderDriveAuto 6.50%,4/15/18-4/1/34 92,818 103,554
ReceivablesTrust2010-A, 7%,10/1/31-10/1/37 694,474 808,340
AutomobileReceivablesNts.: 8%,4/1/16 28,932 31,220
Series2010-A,Cl.A2,1.37%,8/15/132 32,770 32,790 9%,8/1/22-5/1/25 12,467 14,443
Series2010-A,Cl.A3,1.83%,11/17/142 95,000 95,844
8 OPPENHEIMER BALANCED FUND/VA
Principal Principal
Amount Value Amount Value
FHLMC/FNMA/FHLB/SponsoredContinued FHLMC/FNMA/FHLB/SponsoredContinued
FederalHomeLoanMortgageCorp., FederalNationalMortgageAssn.,
Gtd.RealEstateMtg.Investment Gtd.RealEstateMtg.Investment
ConduitMulticlass ConduitMulticlass
Pass-ThroughCertificates: Pass-ThroughCertificates:
Series2006-11,Cl.PS, Trust1998-61,Cl.PL,6%,11/25/28 $ 145,421 $ 162,885
23.667%,3/25/363 $ 256,020 $ 370,733 Trust2003-130,Cl.CS,
Series2426,Cl.BG,6%,3/15/17 243,327 261,651 13.61%,12/25/333 38,095 45,651
Series2427,Cl.ZM,6.50%,3/15/32 322,972 372,659 Trust2003-28,Cl.KG,5.50%,4/25/23 662,000 736,396
Series2461,Cl.PZ,6.50%,6/15/32 161,506 186,369 Trust2004-101,Cl.BG,5%,1/25/20 838,515 898,447
Series2500,Cl.FD,0.742%,3/15/323 21,413 21,612 Trust2004-9,Cl.AB,4%,7/1/17 30,296 30,333
Series2526,Cl.FE,0.642%,6/15/293 28,455 28,612 Trust2005-104,Cl.MC,
Series2551,Cl.FD,0.642%,1/15/333 18,818 18,929 5.50%,12/25/25 700,000 776,908
Series2626,Cl.TB,5%,6/1/33 418,326 460,585 Trust2005-31,Cl.PB,5.50%,4/25/35 250,000 313,154
Series3025,Cl.SJ,23.864%,8/15/353 68,864 102,188 Trust2005-69,Cl.LE,5.50%,11/1/33 183,264 189,593
Series3822,Cl.JA,5%,6/1/40 519,346 552,757 Trust2006-46,Cl.SW,23.30%,6/25/363 185,910 267,433
Series3848,Cl.WL,4%,4/1/40 399,339 422,819 Trust2006-50,Cl.KS,23.301%,6/25/363 41,193 59,849
Trust2007-42,Cl.A,6%,2/1/33 402,561 418,850
FederalHomeLoanMortgageCorp.,
Trust2009-36,Cl.FA,1.185%,6/25/373 456,623 463,709
Interest-OnlyStripped
Trust2009-37,Cl.HA,4%,4/1/19 353,430 374,208
Mtg.-BackedSecurity:
Trust2009-70,Cl.PA,5%,8/1/35 366,908 373,047
Series183,Cl.IO,14.834%,4/1/276 194,663 41,848
Trust2011-15,Cl.DA,4%,3/1/41 225,788 241,332
Series192,Cl.IO,12.769%,2/1/286 53,939 8,842
Trust2011-3,Cl.KA,5%,4/1/40 387,725 422,360
Series2130,Cl.SC,50.812%,3/15/296 161,930 32,780
Series243,Cl.6,0.513%,12/15/326 175,672 38,310 FederalNationalMortgageAssn.,
Series2531,Cl.ST,99.999%,2/15/306 145,022 1,742 Interest-OnlyStripped
Series2796,Cl.SD,65.819%,7/15/266 234,720 47,351 Mtg.-BackedSecurity:
Series2802,Cl.AS,83.524%,4/15/336 122,517 7,358 Trust2001-65,Cl.S,34.443%,11/25/316 407,680 79,328
Series2920,Cl.S,66.067%,1/15/356 1,186,287 202,810 Trust2001-81,Cl.S,26.301%,1/25/326 98,300 20,749
Series3110,Cl.SL,99.999%,2/15/266 157,861 22,043 Trust2002-47,Cl.NS,
Series3450,Cl.BI,12.367%,5/15/386 222,961 36,998 33.878%,4/25/326 248,591 49,682
Series3662,Cl.SM,24.868%,10/15/326 174,999 23,346 Trust2002-51,Cl.S,34.116%,8/25/326 228,266 45,618
Series3736,Cl.SN,6.506%,10/15/406 813,675 133,969 Trust2002-52,Cl.SD,40.43%,9/25/326 295,994 65,446
Trust2002-77,Cl.SH,
FederalHomeLoanMortgageCorp.,
42.876%,12/18/326 146,409 30,398
Principal-OnlyStrippedMtg.-Backed
Trust2002-84,Cl.SA,
Security,Series176,Cl.PO,
36.534%,12/25/326 379,458 69,002
3.829%,6/1/267 55,432 48,438
Trust2002-9,Cl.MS,30.893%,3/25/326 104,411 20,521
FederalNationalMortgageAssn.:
Trust2003-33,Cl.SP,99.999%,5/25/336 430,084 67,658
2.50%,7/1/275 5,620,000 5,792,113
Trust2003-4,Cl.S,32.188%,2/25/336 242,480 44,012
3.50%,8/1/425 5,410,000 5,673,738
Trust2003-46,Cl.IH,99.999%,6/1/236 883,806 120,962
4%,7/1/275 350,000 372,313
Trust2003-89,Cl.XS,
4.50%,7/1/275 794,000 851,193
99.999%,11/25/326 59,398 1,332
5.50%,9/25/20 8,312 9,109
Trust2004-54,Cl.DS,
5.50%,7/1/27-8/1/425 2,018,000 2,197,471
48.962%,11/25/306 240,776 48,658
6%,11/25/17-3/1/37 879,777 967,137
Trust2004-56,Cl.SE,17.45%,10/25/336 77,158 13,071
6%,8/1/425 1,140,000 1,252,753
Trust2005-14,Cl.SE,45.002%,3/25/356 121,998 20,079
6.50%,5/25/17-10/25/19 195,422 210,880
Trust2005-40,Cl.SA,57.95%,5/25/356 635,981 124,580
7%,11/1/17-10/25/35 107,531 116,199
Trust2005-5,Cl.SD,11.622%,1/25/356 172,117 27,086
7.50%,1/1/33 160,388 195,080
Trust2005-71,Cl.SA,
8.50%,7/1/32 7,112 8,842
63.085%,8/25/256 663,088 95,002
FederalNationalMortgageAssn.,15yr.: Trust2005-93,Cl.SI,
3%,7/1/275 8,640,000 9,054,450 21.417%,10/25/356 187,295 27,647
3.50%,7/1/275 755,000 797,941 Trust2006-60,Cl.DI,43.055%,4/25/356 71,781 9,776
FederalNationalMortgageAssn.,30yr.: Trust2007-84,Cl.DS,
4%,8/1/425 9,455,000 10,047,415 12.971%,8/25/376 238,243 41,978
4.50%,8/1/425 4,985,000 5,344,854 Trust2007-88,Cl.XI,42.67%,6/25/376 502,266 84,564
Trust2008-46,Cl.EI,12.78%,6/25/386 228,236 40,657
9 OPPENHEIMER BALANCED FUND/VA
INVESTMENTS
STATEMENT OF Unaudited/Continued
Principal Principal
Amount Value Amount Value
FHLMC/FNMA/FHLB/SponsoredContinued OtherAgency—0.2%
FederalNationalMortgageAssn., NCUAGuaranteedNotes
Interest-OnlyStripped Trust2010-R3,Gtd.Nts.,
Mtg.-BackedSecurity:Continued Series2010-R3,Cl.2A,
Trust2008-55,Cl.SA, 0.799%,12/8/203 $ 535,030 $ 537,287
22.774%,7/25/386 $ 564,180 $ 90,759 Non-Agency—5.0%
Trust2008-67,Cl.KS,56.708%,8/25/346 318,833 24,035
Commercial—3.2%
Trust2009-8,Cl.BS,18.395%,2/25/246 145,261 14,423
BancofAmericaCommercial
Trust222,Cl.2,24.455%,6/1/236 423,719 79,309
MortgageTrust2007-1,
Trust233,Cl.2,44.351%,8/1/236 276,221 61,889
CommercialMtg.Pass-Through
Trust252,Cl.2,37.95%,11/1/236 361,910 77,681
Certificates,Series2007-1,Cl.A4,
Trust319,Cl.2,4.842%,2/1/326 99,677 15,476
5.451%,1/1/49 515,000 585,872
Trust320,Cl.2,10.38%,4/1/326 27,559 4,366
Trust321,Cl.2,0.922%,4/1/326 327,257 50,478 BancofAmericaCommercial
Trust331,Cl.9,12.993%,2/1/336 329,407 51,646 Mortgage,Inc.,CommercialMtg.
Trust334,Cl.17,20.54%,2/1/336 199,677 44,343 Pass-ThroughCertificates,
Trust339,Cl.12,1.903%,7/1/336 319,355 61,310 Series2007-3,Cl.A4,5.805%,6/1/493 270,000 306,418
Trust339,Cl.7,0%,7/1/336,8 972,855 134,313 BearStearnsARMTrust2007-4,Mtg.
Trust343,Cl.13,0%,9/1/336,8 299,066 41,480 Pass-ThroughCertificates,
Trust345,Cl.9,0%,1/1/346,8 353,020 44,024 Series2007-4,Cl.22A1,5.569%,6/1/473 222,838 165,784
Trust351,Cl.10,0%,4/1/346,8 43,470 6,393
BearStearnsCommercialMortgage
Trust351,Cl.8,0%,4/1/346,8 141,556 20,168
SecuritiesTrust2007-PWR17,
Trust356,Cl.10,0%,6/1/356,8 110,998 15,504
CommercialMtg.
Trust356,Cl.12,0%,2/1/356,8 60,393 8,471
Pass-ThroughCertificates,
Trust362,Cl.13,0%,8/1/356,8 394,710 65,013
Series2007-PWR17,Cl.AM,
Trust364,Cl.16,0%,9/1/356,8 297,978 47,704
5.915%,6/1/503 305,000 323,129
FederalNationalMortgageAssn.,
CFCRECommercialMortgageTrust,
Principal-OnlyStrippedMtg.-Backed
CommercialMtg.Pass-Through
Security,Trust1993-184,Cl.M,
Certificates,Series2011-C1,Cl.A1,
4.355%,9/25/237 153,374 144,407
1.871%,4/1/442 89,375 89,877
59,288,649
CHLMortgagePass-Through
Trust2007-J3,Mtg.Pass-Through
GNMA/Guaranteed—0.3%
Certificates,Series2007-J3,Cl.A9,
GovernmentNationalMortgageAssn.:
6%,7/1/37 45,933 33,625
7%,1/30/24 72,348 85,072
7.50%,1/30/23-6/30/24 70,839 81,123 CitigroupCommercialMortgage
8%,5/30/17-4/15/23 63,136 73,337 Trust2008-C7,CommercialMtg.
8.50%,8/1/17-12/15/17 16,919 18,164 Pass-ThroughCertificates,
Series2008-C7,Cl.A4,
GovernmentNationalMortgageAssn.,
6.276%,12/1/493 460,000 539,410
Interest-OnlyStrippedMtg.-BackedSecurity:
Series2001-21,Cl.SB, Citigroup,Inc./Deutsche
88.053%,1/16/276 291,417 54,004 Bank2007-CD4Commercial
Series2002-15,Cl.SM, MortgageTrust,
79.607%,2/16/326 337,904 66,737 CommercialMtg.Pass-Through
Series2002-76,Cl.SY, Certificates,Series2007-CD4,Cl.A4,
81.88%,12/16/266 751,087 157,222 5.322%,12/1/49 425,000 474,031
Series2004-11,Cl.SM, DeutscheAlt-BSecurities,Inc.,Mtg.
70.41%,1/17/306 265,519 62,327 Pass-ThroughCertificates,
Series2007-17,Cl.AI, Series2006-AB4,Cl.A1A,
22.03%,4/16/376 751,548 149,458 6.005%,10/25/36 317,733 187,114
Series2011-52,Cl.HS,
DeutscheMortgage&Asset
9.436%,4/16/416 357,224 91,547
Receiving,CommercialMtg.
838,991 Pass-ThroughCertificates,
Interest-OnlyStrippedMtg.-Backed
Security,Series2010-C1,Cl.XPA,
4.883%,9/1/202,6 3,091,820 210,006
10 OPPENHEIMER BALANCED FUND/VA