UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-5582

Oppenheimer Government Cash Reserves

(Exact name of registrant as specified in charter)

6803 South Tucson Way, Centennial, Colorado 80112-3924

(Address of principal executive offices) (Zip code)

Cynthia Lo Bessette

OFI Global Asset Management, Inc.

225 Liberty Street, New York, New York 10281-1008

(Name and address of agent for service)

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: July 31

Date of reporting period: 10/31/2018

 

Item 1. Schedule of Investments.

 

STATEMENT OF INVESTMENTS October 31, 2018 Unaudited

 

   

Maturity

Date*

    

Final Legal

Maturity

Date**

    

Principal

Amount

     Value  
U.S. Government Agencies—58.3%                                
Federal Farm Credit Bank:        
1.25%     2/27/19       2/27/19     $ 750,000     $ 747,220  
1.40%     7/24/19       7/24/19       1,500,000       1,486,881  
1.815%1     11/1/18       11/1/18       4,000,000       4,000,000  
1.85%1     12/10/18       12/10/18       1,000,000       998,028  
2.076%1     12/7/18       12/7/18       1,000,000       997,940  
2.13% [FCPR DLY-312]2     11/1/18       1/2/19       6,500,000       6,499,638  
2.146% [US0001M-13.5]2     11/8/18       3/8/19       5,000,000       4,999,748  
2.165% [US0001M-13]2     11/27/18       3/27/19       3,000,000       2,999,705  
2.173% [US0001M-11]2     11/12/18       3/12/19       5,000,000       4,999,946  
2.18% [FCPR DLY-307]2     11/1/18       2/20/19       6,000,000       5,999,879  
2.186%1     4/3/19       4/3/19       3,000,000       2,972,715  
2.192% [US0001M-8.5]2     11/9/18       7/9/19       6,000,000       5,999,640  
2.20% [FEDL01]2     11/1/18       8/8/19       2,000,000       1,998,863  
2.204% [US0001M-7.5]2     11/5/18       11/5/19       5,000,000       4,999,732  
2.205% [US0001M-6]2     11/3/18       4/3/19       200,000       200,064  
2.23% [US0001M-6.5]2     11/28/18       3/28/19       5,000,000       5,000,000  
2.252%1     2/21/19       2/21/19       1,000,000       993,124  
2.256% [US0003M-18]2     1/15/19       10/15/19               10,500,000       10,498,481  
2.265%1     3/11/19       3/11/19       500,000       495,992  
2.276%1     3/19/19       3/19/19       500,000       495,726  
2.317%1     4/30/19       4/30/19       4,000,000       3,954,600  
2.421%1     6/14/19       6/14/19       3,000,000       2,955,562  
2.481%1     8/12/19       8/12/19       1,000,000       980,909  
2.633%     8/6/19       8/6/19       2,000,000       1,960,153  
2.722%1     10/4/19       10/4/19       3,000,000               2,925,579  
Federal Home Loan Bank:        
0.875%     8/5/19       8/5/19       1,100,000       1,085,715  
1.125%     6/21/19       6/21/19       1,200,000       1,190,453  
1.25%     1/16/19       1/16/19       3,625,000       3,619,600  
1.36%     3/29/19       3/29/19       700,000       697,339  
1.375%     3/18/19       3/18/19       5,000,000       4,985,122  
1.375%     5/28/19       5/28/19       6,955,000       6,915,983  
1.50%     3/8/19       3/8/19       1,750,000       1,745,532  
1.75%     1/18/19       1/18/19       1,800,000       1,799,558  
1.75%     12/14/18       12/14/18       6,000,000       5,998,745  
1.85%     5/22/19       5/22/19       1,000,000       997,079  
1.875%     3/8/19       3/8/19       3,400,000       3,395,524  
2.049%1     11/7/18       11/7/18       1,500,000       1,499,490  
2.065%1     11/14/18       11/14/18       3,000,000       2,997,775  
2.07% [US0003M-34]2     1/9/19       4/9/19       3,000,000       3,000,000  
2.076%1     11/28/18       11/28/18       6,000,000       5,990,775  
2.08%1     11/16/18       11/16/18       3,000,000       2,997,414  
2.084%1     11/21/18       11/21/18       3,000,000       2,996,545  
2.09% [US0003M-32]2     1/9/19       4/9/19       7,000,000       6,995,520  
2.115% [US0003M-40.5]2     1/30/19       1/30/19       6,000,000       6,000,000  
2.121% [US0001M-14]2     11/2/18       1/2/19       2,000,000       2,000,000  

 

1      OPPENHEIMER GOVERNMENT CASH RESERVES

STATEMENT OF INVESTMENTS Unaudited / Continued

 

    

Maturity

Date*

     

Final Legal

Maturity

Date**

    

Principal

Amount

     Value  
U.S. Government Agencies (Continued)                                  
Federal Home Loan Bank: (Continued)          
2.126%1      12/26/18        12/26/18     $ 1,500,000     $ 1,495,165  
2.15% [US0001M-13]2      11/15/18        11/15/18       3,000,000       3,000,026  
2.151% [US0001M-13]2      11/25/18        1/25/19       3,000,000       3,000,000  
2.151% [US0001M-13]2      11/25/18        2/25/19       5,000,000       5,000,067  
2.155% [US0001M-12.5]2      11/21/18        11/21/18       6,000,000       6,000,024  
2.159% [US0001M-11.5]2      11/4/18        6/4/19       6,000,000       5,998,356  
2.16% [US0001M-13.5]2      11/27/18        12/27/18       4,000,000       4,000,068  
2.16% [US0003M-26]2      1/11/19        10/11/19       5,000,000       4,995,901  
2.16% [US0001M-13.5]2      11/28/18        2/28/19       7,000,000       7,000,000  
2.161% [US0001M-24]2      11/25/18        3/25/19       9,000,000       8,999,354  
2.166%1      12/19/18        12/19/18       3,000,000       2,991,384  
2.166%1      3/28/19        3/28/19       1,000,000       991,343  
2.169% [US0001M-13]2      11/1/18        3/1/19       2,000,000       2,000,000  
2.17% [US0001M-11]2      11/22/18        4/22/19       6,000,000       5,999,495  
2.17% [US0001M-22]2      11/22/18        2/22/19       8,000,000       7,999,936  
2.17% [US0001M-11]2      11/15/18        12/14/18       4,000,000       4,000,000  
2.17% [US0001M-11]2      11/21/18        12/21/18       1,000,000       1,000,000  
2.172% [US0001M-11.5]2      11/24/18        12/24/18       3,000,000       3,000,069  
2.179% [US0001M-11.5]2      11/26/18        4/26/19       3,000,000       3,000,000  
2.182% [US0001M-10.5]2      11/24/18        7/24/19       1,000,000       1,000,000  
2.189% [US0001M-11]2      11/1/18        2/1/19       3,000,000       3,000,000  
2.189% [US0001M-10.5]2      11/26/18        7/26/19       10,000,000       10,000,000  
2.189% [US0001M-10.5]2      11/26/18        5/24/19       3,000,000       3,000,000  
2.19% [US0001M-10.5]2      11/27/18        8/27/19       4,000,000       4,000,000  
2.19% [US0001M-10.5]2      11/28/18        5/28/19       5,000,000       4,999,908  
2.19% [US0001M-9]2      11/14/18        1/14/19       9,000,000       9,000,693  
2.191% [US0003M-19.5]2      12/28/18        6/28/19       5,000,000       5,000,000  
2.191% [US0001M-9]2      11/6/18        4/5/19       3,000,000       3,000,000  
2.193% [US0001M-9]2      11/12/18        4/12/19       800,000       799,904  
2.195% [US0001M-10]2      11/27/18        12/27/18       2,000,000       1,999,964  
2.214% [US0001M-8]2      11/26/18        9/26/19       2,000,000       2,000,000  
2.225% [US0001M-6.5]2      11/17/18        10/17/19       2,000,000       2,000,000  
2.234% [US0001M-6]2      11/26/18        4/26/19       4,000,000       4,000,000  
2.292%1      1/16/19        1/16/19       1,000,000       995,187  
2.319%1      1/25/19        1/25/19       4,000,000       3,978,231  
2.324%1      1/30/19        1/30/19       3,000,000               2,982,675  
2.337%1      3/20/19        3/20/19       2,000,000       1,982,162  
2.375%      7/12/19        7/12/19       455,000       454,762  
2.375%      7/25/19        7/25/19       1,500,000       1,499,213  
2.50%      8/15/19        8/15/19       750,000       750,034  
2.625%      9/24/19        9/24/19       1,230,000       1,229,059  
4.25%      4/1/19        4/1/19       790,000       796,166  
Federal Home Loan Mortgage Corp.:          
1.125%      4/15/19        4/15/19       1,345,000       1,337,704  
1.20%      6/14/19        6/14/19       500,000       495,713  
1.25%      8/1/19        8/1/19               1,541,000       1,525,498  

 

2      OPPENHEIMER GOVERNMENT CASH RESERVES

    

 

    

Maturity

Date*

     

Final Legal

Maturity

Date**

     

Principal

Amount

      Value  
U.S. Government Agencies (Continued)                                    
Federal Home Loan Mortgage Corp.: (Continued)            
1.375%      2/28/19        2/28/19      $ 850,000      $ 847,839  
1.375%      8/15/19        8/15/19        1,000,000        990,003  
1.75%      5/30/19        5/30/19        750,000        747,347  
2.00%      7/30/19        7/30/19        500,000        498,289  
3.75%      3/27/19        3/27/19                1,793,000        1,803,234  
Federal National Mortgage Assn.:            
0.875%      8/2/19        8/2/19        1,995,000        1,968,686  
1.00%      2/26/19        2/26/19        5,975,000        5,952,926  
1.125%      12/14/18        12/14/18        4,868,000        4,864,061  
1.15%      8/23/19        8/23/19        500,000        493,942  
1.375%      1/28/19        1/28/19        1,256,000        1,254,017  
1.375%      3/28/19        3/28/19        500,000        498,127  
1.75%      6/20/19        6/20/19        1,297,000        1,291,787  
1.75%      9/12/19        9/12/19        1,100,000        1,091,295  
1.875%      2/19/19        2/19/19        1,624,000        1,622,320  
2.26% [SOFRRATE+8]2      11/1/18        1/30/19        5,000,000        5,000,000  
2.30% [SOFRRATE+12]2      11/1/18        7/30/19        6,000,000        6,000,000  
Total U.S. Government Agencies (Cost $334,290,228)

 

           

 

         334,290,228

 

  

 

Repurchase Agreements—39.1%                                    
Repurchase Agreements3 (Cost $224,800,000)                        224,800,000        224,800,000  
                   Shares         
Investment Company—3.0%                                    
Oppenheimer Institutional Government Money Market Fund, Cl. E, 2.12%4,5
(Cost $17,377,225)		            17,377,225        17,377,225  
Total Investments, at Value (Cost $576,467,453)

 

               100.4%        576,467,453  
Net Other Assets (Liabilities)            (0.4)        (2,021,543 ) 
Net Assets            100.0%      $         574,445,910  
                       

Footnotes to Statement of Investments

Short-term notes and direct bank obligations are generally traded on a discount basis; the interest rate shown is the discount rate received by the Fund at the time of purchase. Other securities normally bear interest at the rates shown.

* The Maturity Date represents the date used to calculate the Fund’s weighted average maturity as determined under Rule 2a-7.

** If different from the Maturity Date, the Final Legal Maturity Date includes any maturity date extensions which may be affected at the option of the issuer or unconditional payments of principal by the issuer which may be affected at the option of the Fund, and represents the date used to calculate the Fund’s weighted average life as determined under Rule 2a-7.

1. Zero coupon bond reflects effective yield on the original acquisition date.

 

3      OPPENHEIMER GOVERNMENT CASH RESERVES

STATEMENT OF INVESTMENTS Unaudited / Continued

 

Footnotes to Statement of Investments (Continued)

 

2. Represents the current interest rate for a variable or increasing rate security, determined as [Referenced Rate + Basis-point spread].

3. Repurchase agreements:

 

Counterparty   

Lending

Rate

     

Settlement

Date

     

Maturity

Date

     

Principal

Amount

  
ASL Capital Markets, Inc.      2.22%        10/31/18        11/1/18      $ 24,000,000  
Cantor Fitzgerald Secured LLC      2.21        10/31/18        11/1/18        23,000,000  
Cantor Fitzgerald Secured LLC      2.35        10/4/18        11/5/18        6,000,000  
Credit Agricole Corp. & Investment Bank      2.21        10/31/18        11/1/18        3,000,000  
Deutsche Bank Securities, Inc.      2.20        10/29/18        11/5/18        3,000,000  
Deutsche Bank Securities, Inc.      2.20        10/25/18        11/1/18        5,000,000  
Deutsche Bank Securities, Inc.      2.21        10/31/18        11/1/18        3,800,000  
Deutsche Bank Securities, Inc.      2.24        10/23/18        11/23/18        3,000,000  
Deutsche Bank Securities, Inc.      2.24        10/18/18        11/19/18        5,000,000  
Deutsche Bank Securities, Inc.      2.24        10/15/18        11/14/18        3,000,000  
INTL FCStone Financial, Inc.      2.22        10/25/18        11/1/18        25,300,000  
INTL FCStone Financial, Inc.      2.23        10/30/18        11/6/18        15,000,000  
RBC Dominion Securities, Inc.      2.20        10/25/18        11/1/18        5,000,000  
RBC Dominion Securities, Inc.      2.20        10/30/18        11/6/18        3,000,000  
RBC Dominion Securities, Inc.      2.21        10/31/18        11/1/18        3,500,000  
Royal Bank of Canada      2.20        10/31/18        11/1/18        4,200,000  
Royal Bank of Canada      2.22        10/30/18        12/7/18        3,000,000  
South Street Securities LLC      2.24        10/30/18        11/6/18        20,000,000  
South Street Securities LLC      2.24        10/31/18        11/1/18        38,000,000  
South Street Securities LLC      2.24        10/31/18        11/7/18        20,000,000  
TD Securities (USA) LLC      2.18        10/25/18        11/1/18        3,000,000  
TD Securities (USA) LLC      2.21        10/31/18        11/1/18        6,000,000  

 

4      OPPENHEIMER GOVERNMENT CASH RESERVES

    

 

Footnotes to Statement of Investments (Continued)

 

Counterparty    Collateralized By    Collateral
Received, at
Valuea 		     Repurchase
Agreements,
at Value		     Repurchase
Agreement
Proceeds to be
Receiveda
ASL Capital Markets, Inc.    U.S. Treasury Bonds, 2.875%, 11/15/46      $(24,481,543 )       $24,000,000     $24,001,513
Cantor Fitzgerald Secured LLC    U.S. Treasury Bonds, 0.625%, 2/15/43; U.S. Treasury Nts., 0.00%-2.625%, 7/15/21-11/15/45 and U.S. Government Agency Mortgages, 2.525%-5.00%, 7/25/41-10/1/48      (24,048,020 )       23,000,000     23,001,425
Cantor Fitzgerald Secured LLC    U.S. Treasury Bonds, 2.25%, 8/15/46 and U.S. Government Agency Mortgages, 4.00%-4.334%, 12/15/32-9/1/48      (6,135,257 )       6,000,000     6,012,549
Credit Agricole Corp. & Investment Bank    U.S. Treasury Nts., 2.00%, 2/15/25      (3,060,248 )       3,000,000     3,000,243
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 6.03%, 10/8/27      (3,060,971 )       3,000,000     3,000,952
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 6.03%, 10/8/27      (5,102,593 )       5,000,000     5,002,542
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 6.03%, 10/8/27      (3,876,303 )       3,800,000     3,800,297
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 2.875%-6.03%, 9/12/23-10/8/27      (3,061,803 )       3,000,000     3,001,768
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 6.03%, 10/8/27      (5,104,786 )       5,000,000     5,004,693
Deutsche Bank Securities, Inc.    U.S. Government Agency Mortgages, 6.03%, 10/8/27      (3,063,895 )       3,000,000     3,003,819
INTL FCStone Financial, Inc.    U.S. Government Agency Mortgages, 2.00%-6.50%, 2/1/20-11/1/48      (25,817,140 )       25,300,000     25,310,921
INTL FCStone Financial, Inc.    U.S. Government Agency Mortgages, 2.00%-5.00%, 1/15/27-7/1/48      (15,312,070 )       15,000,000     15,001,859
RBC Dominion Securities, Inc.    U.S. Treasury Bills, 0.00%, 11/29/18; U.S. Treasury Bonds, 3.00%, 11/15/44; U.S. Treasury Nts., 1.25%- 3.00%, 5/31/19-5/15/26 and U.S. Government Agency Mortgages, 3.00%-4.00%, 6/20/46-8/20/48      (5,102,225 )       5,000,000     5,002,181

 

5      OPPENHEIMER GOVERNMENT CASH RESERVES

STATEMENT OF INVESTMENTS Unaudited / Continued

 

Footnotes to Statement of Investments (Continued)

 

Counterparty    Collateralized By    Collateral
Received, at
Valuea 		    

Repurchase
Agreements,

at Value

     Repurchase
Agreement
Proceeds to be
Receiveda
RBC Dominion Securities, Inc.    U.S. Treasury Bonds, 3.00%, 11/15/44 and U.S. Treasury Nts., 1.25%, 5/31/19-10/31/21      $(3,060,399 )       $3,000,000     $3,000,392
RBC Dominion Securities, Inc.    U.S. Treasury Nts., 1.25%-1.875%, 5/31/19-7/15/19 and U.S. Government Agency Mortgages, 3.50%-4.00%, 6/20/46-6/20/47      (3,570,257 )       3,500,000     3,500,252
Royal Bank of Canada    U.S. Government Agency Mortgages, 3.20%-4.50%, 2/1/27-3/1/48      (4,284,262 )       4,200,000     4,200,257
Royal Bank of Canada    U.S. Government Agency Mortgages, 3.50%-4.00%, 1/1/48-7/1/48      (3,060,378 )       3,000,000     3,000,370
South Street Securities LLC    U.S. Government Agency Mortgages, 2.785%-5.00%, 5/1/26-9/1/48      (20,402,574 )       20,000,000     20,002,524
South Street Securities LLC    U.S. Government Agency Mortgages, 1.52%-5.00%, 1/1/20-9/1/48      (38,762,412 )       38,000,000     38,002,365
South Street Securities LLC    U.S. Government Agency Mortgages, 1.45%-5.865%, 2/1/19-2/15/60      (20,401,269 )       20,000,000     20,001,245
TD Securities (USA) LLC    U.S. Treasury Nts., 2.25%, 1/31/24      (3,061,380 )       3,000,000     3,001,353
TD Securities (USA) LLC    U.S. Government Agency Mortgages, 3.50%, 7/1/46      (6,120,376 )       6,000,000     6,000,368
        $(229,950,161 )       $224,800,000     $224,853,888

a. Includes accrued interest.

4. Rate shown is the 7-day yield at period end.

5. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, 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 reporting period in which the issuer was an affiliate are as follows:

 

     

Shares

July 31, 2018

       

Gross

Additions

       

Gross

Reductions

    

Shares

October 31, 2018

  
Investment Company               
Oppenheimer Institutional Government Money Market Fund, Cl. E      17,294,573          82,652          —       17,377,225  

 

6      OPPENHEIMER GOVERNMENT CASH RESERVES

    

 

Footnotes to Statement of Investments (Continued)

 

      Value      Income      Realized
        Gain (Loss)		      Change in
Unrealized
        Gain (Loss)		  
Investment Company            
Oppenheimer Institutional Government Money Market Fund, Cl. E    $         17,377,225      $         86,075      $ —      $ —  

 

Glossary:     
Definitions     
FCPR DLY    Federal Reserve Bank Prime Loan Rate US Daily
FEDL01    US Federal Funds Effective Rate (continuous series)
ICE LIBOR    Intercontinental Exchange London Interbank Offered Rate
SOFRRATE    United States Secured Overnight Financing Rate
US0001M    ICE LIBOR USD 1 Month
US0003M    ICE LIBOR USD 3 Month

 

7      OPPENHEIMER GOVERNMENT CASH RESERVES

NOTES TO STATEMENT OF INVESTMENTS October 31, 2018 Unaudited

 

 

 

1. Organization

Oppenheimer Government Cash Reserves (the “Fund”), is registered under the Investment Company Act of 1940 (“1940 Act”), as amended, as a diversified open-end management investment company. The Fund’s investment objective is to seek income consistent with stability of principal. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI.

 

 

2. Securities Valuation

The Fund calculates the net asset value of its shares as of 4:00 P.M. Eastern Time, on each day the New York Stock Exchange (the “Exchange”) is open for trading, except in the case of a scheduled early closing of the Exchange, in which case the Fund will calculate net asset value of the shares as of the scheduled early closing time of the Exchange.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a fair valuation for any security for which market quotations are not readily available. The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at least quarterly or more frequently, if necessary.

Valuation Methods and Inputs

Securities are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. If amortized cost is determined not to approximate market value, the fair value of the portfolio securities will be determined under procedures approved by the Fund’s Board of Trustees.

Securities for which market quotations are not readily available, or when a significant event has occurred that would materially affect the value of the security, are fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public information or information available to the Manager, when determining the fair value of a security. Those standardized fair valuation methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not

 

8      OPPENHEIMER GOVERNMENT CASH RESERVES

    

 

 

2. Securities Valuation (Continued)

 

necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

Classifications

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. Various data inputs may be 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-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset or liability (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

3) Level 3-significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The Fund classifies each of its investments in investment companies which are publicly offered as Level 1. Investment companies that are not publicly offered, if any, are measured using net asset value and are classified as Level 2 in the fair value hierarchy.

The table below categorizes amounts at period end based on valuation input level:

 

     Level 1—
Unadjusted
Quoted Prices		     

Level 2—

Other Significant
Observable
Inputs

      Level 3—
Significant
Unobservable
Inputs		      Value  
Assets Table           
Investments, at Value:           
U.S. Government Agencies   $ —      $ 334,290,228      $ —      $ 334,290,228  
Repurchase Agreements     —        224,800,000        —        224,800,000  
Investment Company     17,377,225        —        —        17,377,225  
Total Assets   $         17,377,225      $     559,090,228      $     —      $       576,467,453  

For the reporting period, there were no transfers between levels.

 

 

3. Investments and Risks

Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (“Affiliated Funds”). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services

 

9      OPPENHEIMER GOVERNMENT CASH RESERVES

NOTES TO STATEMENT OF INVESTMENTS Unaudited / Continued

 

 

3. Investments and Risks (Continued)

 

to, the Affiliated Funds. When applicable, the Fund’s investments in Affiliated Funds are included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their management fee. The Manager will waive fees and/ or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in the Affiliated Funds.

Each of the Affiliated 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 Affiliated Fund than in another, the Fund will have greater exposure to the risks of that Affiliated Fund.

Investments in Money Market Instruments. The Fund is permitted to invest its free cash balances in money market instruments to provide liquidity or for defensive purposes. The Fund may invest in money market instruments by investing in Class E shares of Oppenheimer Institutional Government Money Market Fund (“IGMMF”), which is an Affiliated Fund. IGMMF is regulated as a money market fund under the 1940 Act, as amended. The Fund may also invest in money market instruments directly or in other affiliated or unaffiliated money market funds.

 

 

4. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the Fund to various market risk factors:

Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.

Credit Risk. Credit risk relates to the ability of the issuer of debt to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield debt securities are subject to credit risk to a greater extent than lower-yield, higher-quality securities.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their

 

10      OPPENHEIMER GOVERNMENT CASH RESERVES

    

 

 

4. Market Risk Factors (Continued)

 

value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument’s price over a defined time period. Large increases or decreases in a financial instrument’s price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.

 

 

5. Repurchase Agreements

In a repurchase transaction, a Fund buys a security and simultaneously sells it back to an approved institution for delivery on an agreed-upon future date. The resale price exceeds the purchase price by an amount that reflects an agreed-upon interest rate effective for the period during which the repurchase agreement is in effect. Approved institutions include U.S. commercial banks, U.S. branches of foreign banks or broker-dealers that have been designated as primary dealers in government securities. They must meet credit requirements set by the investment adviser from time to time. Repurchase agreements must be fully collateralized. However, if the seller fails to pay the repurchase price on the delivery date, a Fund may incur costs in disposing of the collateral and may experience losses if there is any delay in its ability to do so. If the default on the part of the seller is due to its bankruptcy, a Fund’s ability to liquidate the collateral may be delayed or limited.

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of period end:

 

Counterparty    Repurchase
Agreement Proceeds
to be Received1 		     Collateral Received1
     Net Exposure2
  
Repurchase Agreements        
ASL Capital Markets, Inc.      $24,001,513        $(24,481,543 )      $(480,030 ) 
Cantor Fitzgerald Secured LLC      23,001,425        (24,048,020 )      (1,046,595 ) 
Cantor Fitzgerald Secured LLC      6,012,549        (6,135,257 )      (122,708 ) 
Credit Agricole Corp. & Investment Bank      3,000,243        (3,060,248 )      (60,005 ) 
Deutsche Bank Securities, Inc.      3,000,952        (3,060,971 )      (60,019 ) 
Deutsche Bank Securities, Inc.      5,002,542        (5,102,593 )      (100,051 ) 
Deutsche Bank Securities, Inc.      3,800,297        (3,876,303 )      (76,006 ) 
Deutsche Bank Securities, Inc.      3,001,768        (3,061,803 )      (60,035 ) 
Deutsche Bank Securities, Inc.      5,004,693        (5,104,786 )      (100,093 ) 
Deutsche Bank Securities, Inc.      3,003,819        (3,063,895 )      (60,076 ) 
INTL FCStone Financial, Inc.      25,310,921        (25,817,140 )      (506,219 ) 
INTL FCStone Financial, Inc.      15,001,859        (15,312,070 )      (310,211 ) 
RBC Dominion Securities, Inc.      5,002,181        (5,102,225 )      (100,044 ) 
RBC Dominion Securities, Inc.      3,000,392        (3,060,399 )      (60,007 ) 
RBC Dominion Securities, Inc.      3,500,252        (3,570,257 )      (70,005 ) 
Royal Bank of Canada      4,200,257        (4,284,262 )      (84,005 ) 

 

11      OPPENHEIMER GOVERNMENT CASH RESERVES

NOTES TO STATEMENT OF INVESTMENTS Unaudited / Continued

 

 

5. Repurchase Agreements (Continued)

 

Counterparty   Repurchase
Agreement Proceeds
to be Received1 		     Collateral Received1
     Net Exposure2
  
Repurchase Agreements (Continued)       
Royal Bank of Canada     $3,000,370        $(3,060,378 )      $(60,008 ) 
South Street Securities LLC     20,002,524        (20,402,574 )      (400,050 ) 
South Street Securities LLC     38,002,365        (38,762,412 )      (760,047 ) 
South Street Securities LLC     20,001,245        (20,401,269 )      (400,024 ) 
TD Securities (USA) LLC     3,001,353        (3,061,380 )      (60,027 ) 
TD Securities (USA) LLC     6,000,368        (6,120,376 )      (120,008 ) 
    $224,853,888        $(229,950,161 )   

1. Includes accrued interest.

2. Net exposure represents the net receivable/payable that would be due from the counterparty in the event of default.

 

 

6. Pending Acquisition

On October 18, 2018, Massachusetts Mutual Life Insurance Company (“MassMutual”), an indirect corporate parent of the Sub-Adviser and the Manager announced that it has entered into a definitive agreement, whereby Invesco Ltd. (“Invesco”), a global investment management company, will acquire the Sub-Adviser. As of the time of the announcement, the transaction is expected to close in the second quarter of 2019, pending necessary regulatory and other third-party approvals. This is subject to change.

 

12      OPPENHEIMER GOVERNMENT CASH RESERVES

Item 2. Controls and Procedures.

 

  (a)

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 10/31/2018, 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 the registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

 

  (b)

There have been no significant changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Exhibits 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 Government Cash Reserves

 

By:  

/s/ Arthur P. Steinmetz

  Arthur P. Steinmetz
  Principal Executive Officer
Date:   12/21/2018

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/ Arthur P. Steinmetz

  Arthur P. Steinmetz
  Principal Executive Officer
Date:   12/21/2018

 

By:  

/s/ Brian S. Petersen

  Brian S. Petersen
  Principal Financial Officer
Date:   12/21/2018

 

Exhibit 99.CERT

Section 302 Certifications

CERTIFICATIONS

I, Arthur P. Steinmetz, certify that:

 

1.

I have reviewed this report on Form N-Q of Oppenheimer Government Cash Reserves;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Arthur P. Steinmetz

Arthur P. Steinmetz
Principal Executive Officer

Date: 12/21/2018

Exhibit 99.CERT

Section 302 Certifications

CERTIFICATIONS

I, Brian S. Petersen, certify that:

 

1.

I have reviewed this report on Form N-Q of Oppenheimer Government Cash Reserves;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Brian S. Petersen

Brian S. Petersen
Principal Financial Officer

Date: 12/21/2018