---------------------------------
Annual Report September 30, 1997
---------------------------------
OPPENHEIMER
Global Fund
[GRAPHIC OMITTED]
[OPPENHEIMER LOGO]
Oppenheimer Funds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Report highlights
- --------------------------------------------------------------------------------
o In Europe, France was a very good market for the kinds of companies we seek
because businesses there are recognizing that they must expand their markets to
grow.
o Our broad diversification, both geographically and across many economic
sectors, has helped us to avoid disproportionately overweighting any single
market or industry.
Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's Managers
11 Statement of Investments
22 Statement of
Assets &
Liabilities
24 Statement of Operations
25 Statements of Changes in
Net Assets
26 Financial Highlights
28 Notes to Financial Statements
36 Independent Auditors' Report
37 Federal Income
Tax Information
38 Shareholder Meeting
39 Officers & Trustees
40 Information & Services
- ---------------------------
Avg Annual Total Returns
- ---------------------------
For the 1-year period ended 9/30/97 without sales charges(1)
Class A
- ---------------------------
32.85%
- ---------------------------
Class B
- ---------------------------
31.77%
- ---------------------------
Class C
- ---------------------------
31.76%
- ---------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
2 Oppenheimer Global Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Fund
Dear shareholder,
As you are no doubt aware, during the end of October and early November many
stock markets around the world recorded their all-time largest point declines,
followed by subsequent gains and continued volatility, leaving investors
uncertain about what would occur next.
To put those events in focus, let's look at a "snapshot" of the two-week
time period. Sharp declines in the overseas stock markets, particularly in Asia,
triggered a series of sell-offs throughout Europe, Latin America and the United
States. In response, the U.S. stock market, as measured by the Dow Jones
Industrial Average, dropped 554 points on October 27, its largest point decline
in history. However, almost as quickly, the U.S. stock market bounced back over
the succeeding few days, regaining nearly all of its losses.
While no one could have predicted the timing or extent of these
fluctuations, many analysts, including our fund managers here at
OppenheimerFunds, had warned of a correction for several months. We believed
that U.S. valuations were too high, stocks were expensive relative to bonds,
recent corporate earnings were somewhat disappointing and that Federal Reserve
Chairman Alan Greenspan could possibly seek a short-term interest rate hike.
As a result, when October 27 arrived, our equity funds held above-average
cash positions relative to many of our competitors. Not only did our higher cash
levels serve as a protection, they also enabled us to buy the stocks of numerous
excellent companies that were selling at more reasonable prices. In addition,
our international and global funds were not as impacted because they weren't
heavily invested in Southeast Asia and Japan. Finally, on the fixed-income side,
our bond funds were generally characterized by longer-than-normal durations,
which allowed us to lock in higher yields.
In conclusion, many of our funds experienced relatively strong performance
during the October-November market shake-ups. We'd like to take this opportunity
to remind shareholders that stock market volatility is a normal and expected
part of the business cycle. As Alan Greenspan suggested, in years to come this
period will likely be remembered as a positive change for a market that was
growing too quickly.
For frequent market updates, please visit our website at
www.oppenheimerfunds.com or call 1-800-835-3104 to listen to our recorded
messages. In the meantime, thank you for your confidence in OppenheimerFunds,
The Right Way to Invest. We look forward to helping you reach your investment
goals in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
November 7, 1997
3 Oppenheimer Global Fund
<PAGE>
Performance update
- --------------------------------------------------------------------------------
Oppenheimer Global Fund has performed very well over the past twelve months,
outperforming many of its peers. The Fund's Class A shares provided an average
annual total return of 32.85%, without sales charges, for the one-year period
ended September 30, 1997.(2) This return compares favorably with the Fund's
benchmark, the Morgan Stanley Capital International World Index,(4) an unmanaged
index of international stocks, which provided a 12.18% total return during the
same period.
- --------------------------
Avg Annual Total Returns
- --------------------------
For the Period Ended 9/30/97(1)
Class A
1 year 5 year 10 years
- --------------------------
25.21% 16.74% 10.71%
- --------------------------
Class B
Since
1 year 5 year Inception
- --------------------------
26.77% N/A 17.43%
- --------------------------
Class C
Since
1 year 5 year Inception
- --------------------------
30.76% N/A 21.73%
- --------------------------
- --------------------------
Cumulative Total Return
- --------------------------
For the Period Ended 9/30/97(1)
Class A
5 year
- --------------------------
116.82% $21,682(3)
- --------------------------
Growth of $10,000
Over five years
(without sales charges)(3)
o Oppenheimer Global Fund
Class A shares
o MSCI World Index(4)
[GRAPHIC OMITTED]
[The following table was represented as a mountain graph
in the printed materials.]
MSCI World Index(4)
Unit Value Base: Q3 92 = $10,000.00
Q1 Q2 Q3 Q4
92 -- -- $10,000.00 $9,923.73
93 $10,723.59 $11,324.27 $11,806.26 $11,947.19
94 $11,971.98 $12,280.53 $12,492.37 $12,348.32
95 $12,869.02 $13,360.94 $14,049.24 $14,657.75
96 $15,194.81 $15,574.45 $15,718.87 $16,376.14
97 $16,362.50 $18,759.31 $19,233.28 --
Oppenheimer Global Fund Class A Shares
Unit Value Base: Q3 92 = $10,000.00
Q1 Q2 Q3 Q4
92 -- -- $10,000.00 $9,614.65
93 $9,990.74 $10,491.14 $11,767.24 $13,713.30
94 $13,359.70 $13,199.73 $14,025.89 $13,287.35
95 $13,541.10 $14,477.17 $15,325.83 $15,491.01
96 $16,250.22 $16,902.90 $17,315.81 $18,204.93
97 $18,988.53 $21,222.79 $23,004.56 --
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 12/22/69. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception on
8/17/93). Class C returns for the 1-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 10/2/95. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge and 0.25% distribution fee, and Class A shares are subject to an
annual asset-based sales charge not to exceed 0.25%.
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account. These results reflect changes in share price and income distributions
reinvested, but not sales charges.
4 Oppenheimer Global Fund
<PAGE>
Portfolio review
- --------------------------------------------------------------------------------
Oppenheimer Global Fund is designed for investors seeking long-term capital
appreciation from growth companies worldwide.
What We Look For
o Stocks of small, medium and large growth-oriented companies worldwide.
o Companies that stand to benefit from one or more global growth trends.
o Businesses with strong competitive positions and high demand for their
products or services.
Top Ten Stock Holdings(5)
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 3.9% QUALCOMM, Inc. 2.8%
- --------------------------------------------------------------------------------
Societe Generale 3.2 Cie Financiere de Paribas 2.6
- --------------------------------------------------------------------------------
Wella AG, Preference 3.1 Cap Gemini SA 2.5
- --------------------------------------------------------------------------------
UBS, Bearer 2.9 Adecco SA 2.0
- --------------------------------------------------------------------------------
Porsche AG, Preference 2.9 Rolls-Royce plc 2.0
- --------------------------------------------------------------------------------
Ten Largest Country Holdings(5)
- --------------------------------------------------------------------------------
United States 35.9% Switzerland 6.1%
- --------------------------------------------------------------------------------
France 11.3 Brazil 2.9
- --------------------------------------------------------------------------------
Great Britain 11.0 Italy 1.8
- --------------------------------------------------------------------------------
Germany 6.4 Mexico 1.8
- --------------------------------------------------------------------------------
Japan 6.4 Canada 1.7
- --------------------------------------------------------------------------------
Industry Allocation
(Percent of common stock)(5)
[GRAPHIC OMITTED]
[PIE CHART]
o Banks 19.8%
o Telecommunications/
Technology 8.8
o Industrial Services 6.7
o Healthcare/
Pharmaceutical 6.3
o Leisure &
Entertainment 5.9
o Electronics 4.9
o Energy Services
& Producers 4.4
o Diversified
Financial 4.4
o Autos & Housing 3.8
o Beverages 3.8
o Other 31.2
3. Results of a hypothetical $10,000 investment in Class A shares on September
30, 1992.
4. The Morgan Stanley Capital International World Index is an unmanaged
broad-based index of foreign and domestic stocks including reinvestment of
dividends, and cannot be purchased directly by investors.
5. Portfolio is subject to change. Percentages are as of September 30, 1997 and
are based on total market value of stock holdings.
5 Oppenheimer Global Fund
<PAGE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How has the Fund performed during the 12-month period ended September 30, 1997?
The Fund's Class A shares provided an average annual total return of 32.85%,
without sales charges, for the one-year period ended September 30, 1997.(1) This
return compares favorably with the Fund's benchmark, the Morgan Stanley Capital
International World Index, which provided a 12.18% total return during the same
period.(2)
How have the major international markets performed over the past year?
Many international stock markets have done well, but a strong U.S. dollar
relative to many foreign currencies has somewhat eroded those gains for U.S.
shareholders.
In Europe, we've seen strong stock market performance in the United
Kingdom, where the recent change in government was viewed positively by
investors. In fact, shares on the London exchange approached all-time highs in
1997, in large part because investors there seemed more optimistic about the
United Kingdom's participation in the European Monetary Union. The rest of
Europe appears to be in the early stages of an economic recovery, and many of
their stock markets have reflected the likelihood of higher corporate earnings.
In addition, European companies are just beginning to restructure in the same
way that U.S. companies have been doing for years, a process viewed positively
by investors throughout the European continent.
Japan's stock market continued to perform poorly in the face of a
persistent banking crisis and economic recession. While the Japanese stock
market showed brief
1. lncludes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
2. The Morgan Stanley Capital International World Index is an unmanaged
broad-based index of foreign and domestic stocks including reinvestment of
dividends, and cannot be purchased directly by investors.
- -----------------
"European
companies are
just beginning to
restructure."
6 Oppenheimer Global Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Frank Jennings
William Wilby
(Fund Manager)
George Evans
signs of renewed life earlier this year, higher value-added-tax rates ultimately
extinguished the start of an economic recovery, and as a result, stocks fell.
The emerging markets of Asia and the Pacific Rim have done poorly. In
Asia, there have been sharp sell-offs in the emerging "Tiger" markets of
Thailand, Malaysia, the Philippines and others so far this year. These nations
are struggling with a currency crisis caused in part by high levels of borrowing
which resulted in the overbuilding of commercial and industrial real estate. The
low levels of capacity in virtually every manufacturing sector are causing a
high default rate on these loans.
Which investments have done particularly well during the period?
One of our best-performing positions has been Porsche AG in Germany. It has more
than doubled in the past year, and it was one of the Fund's largest positions.
Nintendo Co. Ltd. in Japan has also done quite well, despite the poor local
market environment, because of the popularity of its new electronic game system
throughout the world. We also did quite well in some U.S. stocks, including
leaders in the computer and semiconductor industries. In Europe, we've found
France to be a very good market for the kinds of companies we seek because
businesses there are recognizing that they must expand their markets to grow.
Similarly, certain Scandinavian stocks have done well by exploiting niche
markets where they dominate. In Latin America, Brazilian telecommunications
leader Telebras has been a productive holding as the rapid expansion of
telephone service continues.
7 Oppenheimer Global Fund
<PAGE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
- -----------------
"We evaluate
opportunities on
a company-by-
company basis..."
What investments were disappointments?
The holdings that disappointed us most are those that have not yet realized the
potential we see in them. For example, Rolls-Royce plc in Great Britain has not
done particularly well, although we continue to like it for its fundamentals.
While the Rolls-Royce automobile is famous worldwide, fewer people know that
they are also leaders in the manufacture of airplane engines. Because the
company makes most of its money off spare parts rather than the sales of entire
airplane engines, higher engine sales tend to reduce profit margins. Yet, higher
airplane engine sales position the company well for long-term earnings growth
because the installed base of customers requiring spare parts has grown.
Therefore, we continue to hold Rolls-Royce as one of the top ten holdings in the
Fund.
How do you find suitable candidates for the Fund?
We evaluate opportunities on a company-by-company basis rather than attempting
to identify broad markets, industries or economies for investment. We focus on
both large- and medium-sized companies because we think mid-sized businesses are
most likely to become the blue-chip stocks of the future.
OppenheimerFunds employs a team approach to fundamental securities
analysis. We look for companies with solid historical earnings growth, strong
track records, skillful managements and bright prospects for future earnings
growth. What's more, these stocks should be selling at reasonable prices because
we don't want to overpay for growth. We supplement our analyses by personally
visiting companies and their managers, which we find exceptionally valuable. We
then select the best suggestions from around the world to construct the Fund's
portfolio.
8 Oppenheimer Global Fund
<PAGE>
- -------------------
"...rather than
attempting to
identify broad
markets, industries
or economies for
investment."
We're careful, however, not to disproportionately overweight any single
market or industry. We emphasize diversification as part of our risk management
discipline. Accordingly, we have been broadly diversified both geographically
and across economic sectors.
What is your outlook for the international markets over the foreseeable future?
Our overall long-term outlook is favorable from a fundamental perspective, but
we remain cautious with regard to certain individual markets. However, we think
that the international markets' performance will probably be closely linked to
that of the U.S. stock market, with the exception of Japan, which tends to move
independently.
In Europe, we're optimistic because the region's markets are still
considerably behind the United States in the business cycle. We think that
moderate economic growth and the trend toward restructuring should help these
companies grow earnings--much as U.S. companies have grown over the past several
years. In Asia, on the other hand, we don't see an immediate end to the current
problems in Japan or the "Tiger markets." If these markets sell off much
further, they may provide opportunities to buy good businesses inexpensively. In
Latin America, we believe that deregulation should continue to benefit companies
that have established leadership positions in their industries. As investors
look for compelling opportunities outside the United States, we expect more
money to filter into the emerging markets of Latin America, which should help
the upward momentum continue. Regardless of where the best opportunities may be
found, we expect that our rigorous growth-oriented approach will help ensure
that we own attractive investments in those markets.
9 Oppenheimer Global Fund
<PAGE>
Financials
- -------------------------------------------------------------------------------
10 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments September 30, 1997
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
===============================================================================
Common Stocks--91.2%
- -------------------------------------------------------------------------------
Basic Materials--2.2%
- -------------------------------------------------------------------------------
Chemicals--0.6%
Minerals Technologies, Inc. 585,000 $ 26,069,062
- -------------------------------------------------------------------------------
Gold & Platinum--0.8%
Newmont Mining Corp.(1) 750,000 33,703,125
- -------------------------------------------------------------------------------
Metals--0.8%
Cia de Minas Buenaventura SA, Sponsored ADR(1) 587,500 11,235,937
- -------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 757,500 21,825,469
------------
33,061,406
- -------------------------------------------------------------------------------
Consumer Cyclicals--12.6%
- -------------------------------------------------------------------------------
Autos & Housing--3.5%
Brazil Realty SA, GDR(1)(2) 200,000 5,549,561
- -------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 4,377,661 19,484,216
- -------------------------------------------------------------------------------
Porsche AG, Preference 67,500 116,946,847
- -------------------------------------------------------------------------------
Solidere, GDR(1) 540,000 9,031,500
------------
151,012,124
- -------------------------------------------------------------------------------
Leisure & Entertainment--5.4%
Applebee's International, Inc. 30,000 750,000
- -------------------------------------------------------------------------------
Callaway Golf Co.(1) 959,500 33,462,562
- -------------------------------------------------------------------------------
Casa Ole Restaurants, Inc.(3) 53,500 361,125
- -------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(3) 60,000 2,287,500
- -------------------------------------------------------------------------------
CKE Restaurants, Inc. 49,600 2,083,200
- -------------------------------------------------------------------------------
International Game Technology 1,500,000 34,125,000
- -------------------------------------------------------------------------------
Nintendo Co. Ltd.(1) 1,650,900 154,519,710
- -------------------------------------------------------------------------------
Resorts World Berhad 2,804,000 6,141,630
- -------------------------------------------------------------------------------
Signature Resorts, Inc.(1)(3) 20,000 950,000
------------
234,680,727
- -------------------------------------------------------------------------------
Media--1.1%
Bemrose Corp. plc 150,000 1,022,549
- -------------------------------------------------------------------------------
Grupo Radio Centro SA de CV, Sponsored ADR 131,000 2,267,937
Grupo Televisa SA, Sponsored GDR(1)(2)(3) 1,146,000 41,041,125
- -------------------------------------------------------------------------------
NRJ SA 6,500 882,048
- -------------------------------------------------------------------------------
Reed International plc 165,400 1,408,078
- -------------------------------------------------------------------------------
Roto Smeets de Boer 30,000 1,265,197
------------
47,886,934
11 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
===============================================================================
Retail: General--1.5%
Credit Saison Co. Ltd.(1) 1,000,000 $ 27,168,053
- -------------------------------------------------------------------------------
Galeries Lafayette 4,201 2,074,930
- -------------------------------------------------------------------------------
PT Matahari Putra Prima 15,599,000 5,383,090
- -------------------------------------------------------------------------------
Sonae Investimentos 728,000 28,791,367
- -------------------------------------------------------------------------------
Wolverine World Wide, Inc. 54,000 1,363,500
------------
64,780,940
- -------------------------------------------------------------------------------
Retail: Specialty--1.1%
Central Garden & Pet Co.(1)(3) 30,000 922,500
- -------------------------------------------------------------------------------
Giordano International Ltd. 22,160,000 14,317,991
- -------------------------------------------------------------------------------
Linens `N Things, Inc.(3) 20,000 670,000
- -------------------------------------------------------------------------------
Party City Corp.(3) 30,000 787,500
- -------------------------------------------------------------------------------
Petco Animal Supplies, Inc.(3) 30,000 941,250
- -------------------------------------------------------------------------------
RDO Equipment Co., Cl. A(3) 50,000 1,150,000
- -------------------------------------------------------------------------------
Reebok International Ltd.(3) 399,700 19,460,394
- -------------------------------------------------------------------------------
Wolford AG 87,200 7,871,005
------------
46,120,640
- -------------------------------------------------------------------------------
Consumer Non-Cyclicals--15.5%
- -------------------------------------------------------------------------------
Beverages--3.4%
Al-Ahram Beverages Co., GDR(1)(2)(3) 30,000 945,000
- -------------------------------------------------------------------------------
Cadbury Schweppes plc 4,000,000 38,575,797
- -------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 23,800,000 18,182,698
- -------------------------------------------------------------------------------
Fomento Economico Mexicano SA de CV,
Cl. B, Sponsored ADR(1) 2,600,000 22,403,420
- -------------------------------------------------------------------------------
Guinness plc 4,500,000 42,489,108
- -------------------------------------------------------------------------------
Remy Cointreau 81,428 1,578,537
- -------------------------------------------------------------------------------
Serm Suk Public Co. Ltd. 31,000 502,148
- -------------------------------------------------------------------------------
South African Breweries Ltd. 888,500 25,773,657
------------
150,450,365
- -------------------------------------------------------------------------------
Food--1.0%
Cresud SA, Sponsored ADR(1)(3) 350,000 7,568,750
- -------------------------------------------------------------------------------
Dairy Farm International Holdings Ltd. 36,683,456 34,849,283
- -------------------------------------------------------------------------------
Disco SA, Sponsored ADR(3) 52,700 2,424,200
- -------------------------------------------------------------------------------
JP Foodservice, Inc.(1)(3) 20,000 630,000
------------
45,472,233
- -------------------------------------------------------------------------------
Healthcare/Drugs--5.8%
Amgen, Inc.(3) 700,000 33,556,250
- -------------------------------------------------------------------------------
Appligene Oncor SA(3) 60,000 384,342
- -------------------------------------------------------------------------------
BioChem Pharma, Inc.(1)(3) 1,097,500 34,571,250
- -------------------------------------------------------------------------------
12 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
===============================================================================
Healthcare/Drugs (continued)
Biocompatibles International plc(3) 204,865 $ 2,118,012
- -------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc.(1)(3) 15,000 654,375
- -------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1)(3) 1,354,270 40,289,532
- -------------------------------------------------------------------------------
Gilead Sciences, Inc.(3) 422,200 18,735,125
- -------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 1,000,000 44,937,500
- -------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc.(3) 15,000 1,260,000
- -------------------------------------------------------------------------------
K-V Pharmaceutical Co., Cl. A(3) 68,000 1,572,500
- -------------------------------------------------------------------------------
K-V Pharmaceutical Co., Cl. B(3) 53,000 1,199,125
- -------------------------------------------------------------------------------
Marseille-Kliniken AG 105,000 2,146,149
- -------------------------------------------------------------------------------
Novartis AG 45,000 69,098,674
- -------------------------------------------------------------------------------
Oxford Molecular Group plc(3) 285,714 1,333,859
- -------------------------------------------------------------------------------
Tiger Medicals Ltd. 493,000 470,437
------------
252,327,130
- -------------------------------------------------------------------------------
Healthcare/Supplies & Services--2.4%
AmeriSource Health Corp., Cl. A(3) 30,000 1,753,125
- -------------------------------------------------------------------------------
Clinica y Maternidad Suizo Argentino(3)(4)(5) 1,800 16,485,894
- -------------------------------------------------------------------------------
Concentra Managed Care, Inc.(3) 25,000 882,812
- -------------------------------------------------------------------------------
Gehe AG 280,000 15,298,493
- -------------------------------------------------------------------------------
Norland Medical Systems, Inc.(1)(3) 50,000 443,750
- -------------------------------------------------------------------------------
Omnicare, Inc. 15,000 487,500
- -------------------------------------------------------------------------------
Parexel International Corp.(1)(3) 27,200 1,074,400
- -------------------------------------------------------------------------------
Pediatrix Medical Group, Inc.(3) 15,000 661,875
- -------------------------------------------------------------------------------
Quintiles Transnational Corp.(1)(3) 236,392 19,916,026
- -------------------------------------------------------------------------------
Rural/Metro Corp.(3) 6,800 207,400
- -------------------------------------------------------------------------------
Serologicals Corp.(3) 35,000 796,250
- -------------------------------------------------------------------------------
Superior Consultant Holdings Corp.(3) 35,000 1,172,500
- -------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(3) 16,000 800,000
- -------------------------------------------------------------------------------
United States Surgical Corp. 1,502,700 43,860,056
------------
103,840,081
- -------------------------------------------------------------------------------
Household Goods--2.9%
Wella AG, Preference(5) 163,000 124,313,564
- -------------------------------------------------------------------------------
Tobacco--0.0%
PT Hanjaya Mandala Sampoerna 600,000 1,242,331
- -------------------------------------------------------------------------------
Energy--6.1%
- -------------------------------------------------------------------------------
Energy Services & Producers--4.0%
Cie Generale de Geophysique SA(3) 27,500 3,754,922
- -------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR(1) 645,000 36,281,250
- -------------------------------------------------------------------------------
Gazprom, ADR(1)(2) 421,200 10,572,120
13 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Energy Services & Producers (continued)
Global Marine, Inc.(3) 1,435,000 $ 47,713,750
- -------------------------------------------------------------------------------
Smedvig AS, Series B 100,000 2,975,603
- -------------------------------------------------------------------------------
Transocean Offshore, Inc. 1,003,098 48,086,010
- -------------------------------------------------------------------------------
Western Atlas, Inc.(3) 300,700 26,461,600
------------
175,845,255
- -------------------------------------------------------------------------------
Oil-Integrated--2.1%
British Petroleum Co. plc, ADR 389,202 35,344,407
- -------------------------------------------------------------------------------
Expro International Group plc 340,000 2,965,878
- -------------------------------------------------------------------------------
Lukoil Oil Co., Sponsored ADR(1) 190,000 18,662,769
- -------------------------------------------------------------------------------
Petroleo Brasileiro SA, Preference 100,000,000 28,113,876
- -------------------------------------------------------------------------------
Saga Petroleum AS, Cl. A 400,000 8,461,431
------------
93,548,361
- -------------------------------------------------------------------------------
Financial--23.7%
- -------------------------------------------------------------------------------
Banks--18.0%
Amalgamated Banks of South Africa Ltd.(3) 700,000 4,766,758
- -------------------------------------------------------------------------------
Banco Bradesco SA, Preference 3,354,116,632 34,901,084
- -------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA,
Sponsored ADR(1) 662,055 21,640,923
- -------------------------------------------------------------------------------
Banco Latinoamericano de Exportaciones SA,
Cl. E 313,900 14,047,025
- -------------------------------------------------------------------------------
Bankers Trust New York Corp.(1) 400,000 49,000,000
- -------------------------------------------------------------------------------
Banque Libanaise Pour Le Comm SAL, GDR,
Cl. B(3) 230,000 5,635,000
- -------------------------------------------------------------------------------
Barclays plc 2,025,561 54,598,178
- -------------------------------------------------------------------------------
Chase Manhattan Corp. (New) 200,000 23,600,000
- -------------------------------------------------------------------------------
Cie Financiere de Paribas, Series A 1,400,000 103,839,814
- -------------------------------------------------------------------------------
Citicorp 50,000 6,696,875
- -------------------------------------------------------------------------------
Credito Italiano 15,358,075 41,698,959
- -------------------------------------------------------------------------------
Deutsche Bank AG 520,000 36,508,025
- -------------------------------------------------------------------------------
HSBC Holdings plc 500,000 16,734,475
- -------------------------------------------------------------------------------
Industrial Finance Corp. 7,386,499 9,614,645
- -------------------------------------------------------------------------------
Merita Ltd., Cl. A 12,000,000 56,976,069
- -------------------------------------------------------------------------------
National Westminister Bank plc 2,277,600 34,456,076
- -------------------------------------------------------------------------------
Northern Trust Corp. 121,600 7,189,600
- -------------------------------------------------------------------------------
PT Pan Indonesia Bank 13,563,000 3,952,408
- -------------------------------------------------------------------------------
Societe Generale 890,900 129,004,635
- -------------------------------------------------------------------------------
UBS, Bearer 100,000 116,989,185
- -------------------------------------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros SA,
Sponsored GDR Representing 500 Units of
one Preferred Share of Unibanco and one
Preferred Share of Unibanco Holdings SA(1)(3) 430,000 15,748,750
------------
787,598,484
14 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Diversified Financial--4.0%
American Express Co. 400,000 $ 32,750,000
- -------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 400,000 24,900,000
- -------------------------------------------------------------------------------
Credicorp Ltd. 56,400 1,071,600
- -------------------------------------------------------------------------------
Egypt Investment Co.(3) 96,500 1,459,563
- -------------------------------------------------------------------------------
Fannie Mae 800,000 37,600,000
- -------------------------------------------------------------------------------
First NIS Regional Fund(2)(3) 1,320,000 25,740,000
- -------------------------------------------------------------------------------
First Russian Frontiers Trust plc(3) 74,667 1,881,629
- -------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 134,280 12,114,697
- -------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of
India Ltd., GDR(2) 1,928,200 30,851,200
- -------------------------------------------------------------------------------
ING Groep NV 77,500 3,560,596
- -------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 2,500,000 969,178
- -------------------------------------------------------------------------------
Van Der Hoop Effektenbank NV 149,677 1,542,353
- -------------------------------------------------------------------------------
Wing Hang Bank Ltd. 300,000 1,310,329
------------
175,751,145
- -------------------------------------------------------------------------------
Insurance--1.7%
American International Group, Inc.(7) 300,000 30,956,250
- -------------------------------------------------------------------------------
CapMAC Holdings, Inc. 30,000 969,375
- -------------------------------------------------------------------------------
Ockham Holdings plc 1,200,000 1,453,862
- -------------------------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 3,592,154 9,780,528
- -------------------------------------------------------------------------------
Skandia Forsakrings AB 667,500 29,842,903
------------
73,002,918
- -------------------------------------------------------------------------------
Industrial--8.6%
- -------------------------------------------------------------------------------
Electrical Equipment--0.1%
Crompton Greaves Ltd., GDR 70,000 164,500
- -------------------------------------------------------------------------------
LEM Holdings SA(5) 25,000 6,059,475
------------
6,223,975
- -------------------------------------------------------------------------------
Industrial Materials--0.0%
HI Cement Corp.(2) 2,592,000 226,375
- -------------------------------------------------------------------------------
Industrial Services--6.1%
Adecco SA 200,000 80,563,476
- -------------------------------------------------------------------------------
Affiliated Computer Services, Inc.,
Cl. A(3) 40,000 990,000
- -------------------------------------------------------------------------------
Atos SA(3) 130,000 14,068,946
- -------------------------------------------------------------------------------
BAU Holding AG 500 32,704
- -------------------------------------------------------------------------------
BAU Holdings AF, Preference 12,000 603,395
- -------------------------------------------------------------------------------
BTG plc 250,000 2,948,108
- -------------------------------------------------------------------------------
Culligan Water Technologies, Inc.(3) 20,000 920,000
- -------------------------------------------------------------------------------
Fugro NV 103,225 3,606,156
15 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Industrial Services (continued)
Grupo Elektra SA de CV, CPO 792,600 $ 12,807,225
- -------------------------------------------------------------------------------
IHC Caland NV 500,000 31,541,952
- -------------------------------------------------------------------------------
May & Speh, Inc.(3) 50,000 693,750
- -------------------------------------------------------------------------------
MRC Allied Industries, Inc.(3) 12,500,000 742,357
- -------------------------------------------------------------------------------
PT Citra Marga Nusaphala Persada 8,959,500 2,748,313
- -------------------------------------------------------------------------------
Rental Service Corp.(3) 40,000 897,500
- -------------------------------------------------------------------------------
Rentokil Group plc 6,834,700 28,430,027
- -------------------------------------------------------------------------------
Serco Group plc 200,000 2,697,721
- -------------------------------------------------------------------------------
Service Experts, Inc.(3) 25,000 676,563
- -------------------------------------------------------------------------------
VBH Holding AG 368,100 6,314,977
- -------------------------------------------------------------------------------
West TeleServices Corp.(1)(3) 40,000 600,000
- -------------------------------------------------------------------------------
WPP Group plc 16,800,000 75,852,811
------------
267,735,981
- -------------------------------------------------------------------------------
Manufacturing--2.1%
Bombardier, Inc., Cl. B 1,977,900 40,051,405
- -------------------------------------------------------------------------------
Chicago Miniature Lamp, Inc.(3) 16,000 532,000
- -------------------------------------------------------------------------------
Powerscreen International plc 2,760,674 33,045,621
- -------------------------------------------------------------------------------
PRI Automation, Inc.(3) 20,000 1,170,000
- -------------------------------------------------------------------------------
Societe BIC SA 200,000 14,800,545
- -------------------------------------------------------------------------------
U.S. Filter Corp.(1)(3) 40,000 1,722,500
------------
91,322,071
- -------------------------------------------------------------------------------
Transportation--0.3%
Guangshen Railway Co. Ltd., Sponsored ADR 791,200 13,598,750
- -------------------------------------------------------------------------------
Koninklijke Van Ommeren NV 30,394 1,280,285
------------
14,879,035
- -------------------------------------------------------------------------------
Technology--21.3%
- -------------------------------------------------------------------------------
Aerospace/Defense--1.8%
Rolls-Royce plc 19,351,756 80,027,810
- -------------------------------------------------------------------------------
Computer Hardware--2.6%
Eidos plc(3) 102,500 1,324,630
- -------------------------------------------------------------------------------
Imagineer Co. Ltd. 400 4,042
- -------------------------------------------------------------------------------
International Business Machines Corp. 700,000 74,156,250
- -------------------------------------------------------------------------------
Iomega Corp.(1)(3) 1,300,000 33,962,500
- -------------------------------------------------------------------------------
PT Multipolar Corp.(3) 35,089,600 4,305,472
------------
113,752,894
16 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Computer Software--4.3%
Aspen Technologies, Inc.(3) 7,300 $ 256,413
- -------------------------------------------------------------------------------
Cap Gemini SA(1) 1,520,000 98,647,824
- -------------------------------------------------------------------------------
Engineering Animation, Inc.(3) 44,300 1,688,938
- -------------------------------------------------------------------------------
First Data Corp.(1) 376,000 14,123,500
- -------------------------------------------------------------------------------
Global DirectMail Corp.(3) 20,000 447,500
- -------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(3) 40,000 720,000
- -------------------------------------------------------------------------------
McAfee Associates, Inc.(1)(3) 15,000 795,000
- -------------------------------------------------------------------------------
Microsoft Corp.(3) 250,000 33,078,125
- -------------------------------------------------------------------------------
Misys (Jersey) Ltd.(3) 286,074 7,186,036
- -------------------------------------------------------------------------------
Misys plc 1,001,260 25,151,150
- -------------------------------------------------------------------------------
National Instruments Corp.(3) 30,000 1,391,250
- -------------------------------------------------------------------------------
Saville Systems Ireland plc, Sponsored ADR(3) 15,000 1,053,750
- -------------------------------------------------------------------------------
SPSS, Inc.(3) 20,000 572,500
- -------------------------------------------------------------------------------
Viasoft, Inc.(3) 10,000 495,000
- -------------------------------------------------------------------------------
Visio Corp.(3) 40,000 1,670,000
------------
187,276,986
- -------------------------------------------------------------------------------
Electronics--4.5%
Austria Mikro Systeme International AG 18,200 1,284,136
- -------------------------------------------------------------------------------
BENCHMARQ Microelectronics, Inc.(1)(3) 20,000 445,000
- -------------------------------------------------------------------------------
Intel Corp. 200,000 18,462,500
- -------------------------------------------------------------------------------
Keyence Corp. 220,000 30,795,982
- -------------------------------------------------------------------------------
National Semiconductor Corp.(3) 1,000,000 41,000,000
- -------------------------------------------------------------------------------
Pittway Corp., Cl. A 20,000 1,298,750
- -------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(1)(3) 245,500 23,046,313
- -------------------------------------------------------------------------------
Sony Corp.(1) 800,000 75,540,440
- -------------------------------------------------------------------------------
Unit Trust of India-Masterplus 91(3) 5,000,000 2,495,158
------------
194,368,279
- -------------------------------------------------------------------------------
Telecommunications-Technology--8.1%
Alcatel Alsthom SA 600,000 79,801,572
- -------------------------------------------------------------------------------
Ascend Communications, Inc.(1)(3) 400,000 12,950,000
- -------------------------------------------------------------------------------
Cisco Systems, Inc.(3) 248,000 18,119,500
- -------------------------------------------------------------------------------
Millicom International Cellular SA(3) 408,200 21,328,450
- -------------------------------------------------------------------------------
Newbridge Networks Corp.(3) 600,000 35,925,000
- -------------------------------------------------------------------------------
QUALCOMM, Inc.(1)(3) 1,775,800 113,096,263
- -------------------------------------------------------------------------------
SK Telecom Co. Ltd. 47,154 30,266,323
- -------------------------------------------------------------------------------
Telecom Italia Mobile SpA 10,000,000 39,825,581
------------
351,312,689
17 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------
Utilities--1.2%
- -------------------------------------------------------------------------------
Electric Utilities--0.0%
First Philippine Holdings Corp., B Shares 875,000 $ 738,718
- -------------------------------------------------------------------------------
Telephone Utilities--1.2%
CPT Telefonica del Peru SA, Cl. B 11,599,949 27,386,218
- -------------------------------------------------------------------------------
McLeodUSA, Inc., Cl. A(3) 10,000 394,375
- -------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA, Preference 200,000,000 25,831,067
------------
53,611,660
------------
Total Common Stocks (Cost $2,861,589,477) 3,982,183,298
===============================================================================
Preferred Stocks--0.2%
- -------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und
Partner AG, Non-Vtg.
Preferred Stock (Cost $1,507,735) 27,200 6,560,574
Units
- -------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
- -------------------------------------------------------------------------------
American Satellite Network, Inc. Wts.,
Exp. 6/99 51,750 --
- -------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., Cl. A Wts.,
Exp. 12/97 40,110 --
- -------------------------------------------------------------------------------
PT Pan Indonesia Bank Wts., Exp. 6/00 1,937,571 89,152
------------
Total Rights, Warrants and Certificates
(Cost $261,332) 89,152
Face
Amount
===============================================================================
U.S. Government Obligations--6.2%
- -------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
6.98%, 11/15/18(8) $ 216,900,000 55,029,240
6.93%, 2/15/19(8) 216,700,000 53,981,036
6.93%, 8/15/19(1)(8) 452,300,000 109,067,615
6.44%, 8/15/25(1)(8) 295,000,000 50,143,473
------------
Total U.S. Government Obligations
(Cost $253,751,674) 268,221,364
===============================================================================
Convertible Corporate Bonds and Notes--0.0%
- -------------------------------------------------------------------------------
Mahindra & Mahindra Ltd., 5% Cv. Bonds, 7/9/01
(Cost $1,754,562) 1,675,000 1,817,375
===============================================================================
Short-Term Notes--3.4%
- -------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.51%, 10/24/97(9) 50,000,000 49,823,986
- -------------------------------------------------------------------------------
General Electric Capital Services, Inc., 5.54%,
10/17/97(9) 50,000,000 49,877,556
- -------------------------------------------------------------------------------
Goldman Sachs Group, LP, 5.53%, 10/7/97(9) 50,000,000 49,954,083
------------
Total Short-Term Notes (Cost $149,655,625) 149,655,625
18 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
===============================================================================
Repurchase Agreements--1.6%
- -------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co.,
6.125%, dated 9/30/97, to be repurchased at
$68,911,723 on 10/1/97, collateralized by U.S.
Treasury Nts., 5.125%-9.125%, 11/15/98-9/30/99,
with a value of $70,355,988 (Cost $68,900,000) $68,900,000 $ 68,900,000
- -------------------------------------------------------------------------------
Total Investments, at Value
(Cost $3,337,420,405) 102.6% 4,477,427,388
- -------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (2.6) (111,822,089)
----------- --------------
Net Assets 100.0% $4,365,605,299
=========== ==============
19 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
Country Market Value Percent
- -------------------------------------------------------------------------------
United States $1,605,856,864 35.9%
- -------------------------------------------------------------------------------
Great Britain 519,248,846 11.6
- -------------------------------------------------------------------------------
France 508,165,678 11.3
- -------------------------------------------------------------------------------
Germany 308,088,628 6.9
- -------------------------------------------------------------------------------
Japan 288,028,228 6.4
- -------------------------------------------------------------------------------
Switzerland 272,710,809 6.1
- -------------------------------------------------------------------------------
Brazil 128,327,035 2.9
- -------------------------------------------------------------------------------
Italy 81,524,541 1.8
- -------------------------------------------------------------------------------
Mexico 78,519,708 1.8
- -------------------------------------------------------------------------------
Canada 76,910,155 1.7
- -------------------------------------------------------------------------------
Argentina 67,603,982 1.5
- -------------------------------------------------------------------------------
Finland 56,976,069 1.3
- -------------------------------------------------------------------------------
Russia 54,974,889 1.2
- -------------------------------------------------------------------------------
India 47,442,931 1.1
- -------------------------------------------------------------------------------
The Netherlands 42,796,539 1.0
- -------------------------------------------------------------------------------
Peru 39,693,756 0.9
- -------------------------------------------------------------------------------
Singapore 35,319,721 0.8
- -------------------------------------------------------------------------------
Hong Kong 33,331,972 0.7
- -------------------------------------------------------------------------------
South Africa 30,540,415 0.7
- -------------------------------------------------------------------------------
Korea, Republic of (South) 30,266,323 0.7
- -------------------------------------------------------------------------------
Sweden 29,842,903 0.7
- -------------------------------------------------------------------------------
Portugal 28,791,367 0.6
- -------------------------------------------------------------------------------
Indonesia 17,720,767 0.4
- -------------------------------------------------------------------------------
Lebanon 14,666,500 0.3
- -------------------------------------------------------------------------------
Panama 14,047,025 0.3
- -------------------------------------------------------------------------------
China 13,598,750 0.3
- -------------------------------------------------------------------------------
Norway 11,437,034 0.3
- -------------------------------------------------------------------------------
Thailand 10,116,793 0.2
- -------------------------------------------------------------------------------
Austria 9,791,240 0.2
- -------------------------------------------------------------------------------
Australia 9,780,528 0.2
- -------------------------------------------------------------------------------
Malaysia 6,141,630 0.1
- -------------------------------------------------------------------------------
Egypt 2,404,563 0.1
- -------------------------------------------------------------------------------
Philippines 1,707,449 0.0
- -------------------------------------------------------------------------------
Ireland 1,053,750 0.0
-------------- -----
Total $4,477,427,388 100.0%
============== =====
20 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Loaned security--See Note 8 of Notes to Financial Statements.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $114,925,381 or 2.63% of the Fund's net
assets, at September 30, 1997.
3. Non-income producing security.
4. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
5. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate as defined in the
Investment Company Act of 1940, at or during the period ended September 30,
1997. The aggregate fair value of securities of affiliated companies held by the
Fund as of September 30, 1997 amounts to $146,858,933. Transactions during the
period in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Gross Gross Shares Dividend
Sept. 30, 1996 Additions Reductions Sept. 30, 1997 Income
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Clinica y Maternidad Suizo
Argentino 1,800 -- -- 1,800 $ --
- -------------------------------------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR(6) 681,000 -- 36,000 645,000 53,909
- -------------------------------------------------------------------------------------------------------------
LEM Holdings SA 25,000 -- -- 25,000 127,603
- -------------------------------------------------------------------------------------------------------------
K-V Pharmaceutical Co., Cl. A(6) 376,800 -- 308,800 68,000 --
- -------------------------------------------------------------------------------------------------------------
K-V Pharmaceutical Co., Cl. B(6) 264,900 -- 211,900 53,000 --
- -------------------------------------------------------------------------------------------------------------
Wella AG, Preference 120,000 43,000 -- 163,000 1,188,001
----------
$1,369,513
==========
</TABLE>
6. Not an affiliate as of September 30, 1997.
7. A sufficient amount of securities has been designated to cover outstanding
forward foreign currency
exchange contracts. See Note 5 of Notes to Financial Statements.
8. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
9. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
21 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities September 30, 1997
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,228,199,561) $4,383,174,876
Affiliated companies (cost $109,220,844) 94,252,512
- --------------------------------------------------------------------------------
Collateral for securities loaned--Note 8 461,889,258
- --------------------------------------------------------------------------------
Unrealized appreciation on forward foreign
currency exchange contracts--Note 5 85,081
- --------------------------------------------------------------------------------
Receivables:
Investments sold 12,840,846
Interest and dividends 8,764,906
Shares of beneficial interest sold 5,134,594
- --------------------------------------------------------------------------------
Other 188,852
--------------
Total assets 4,966,330,925
================================================================================
Liabilities
Bank overdraft 1,439,973
- --------------------------------------------------------------------------------
Return of collateral for securities loaned--Note 8 461,889,258
- --------------------------------------------------------------------------------
Unrealized depreciation on forward foreign
currency exchange contracts--Note 5 3,527,078
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 126,424,510
Shares of beneficial interest redeemed 3,330,483
Distribution and service plan fees 2,071,638
Transfer and shareholder servicing agent fees 471,885
Trustees' fees--Note 1 333,759
Other 1,237,042
--------------
Total liabilities 600,725,626
================================================================================
Net Assets $4,365,605,299
==============
================================================================================
Composition of Net Assets
Paid-in capital $2,750,303,782
- --------------------------------------------------------------------------------
Undistributed net investment income 56,492,098
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments
and foreign currency transactions 420,918,199
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities denominated
in foreign currencies 1,137,891,220
--------------
Net assets $4,365,605,299
==============
22 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based
on net assets of $3,407,837,440 and 69,094,074 shares
of beneficial interest outstanding) $49.32
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $52.33
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price
per share (based on net assets of $897,380,435 and
18,620,624 shares of beneficial interest outstanding) $48.19
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $60,387,424 and
1,238,127 shares of beneficial interest outstanding) $48.77
See accompanying Notes to Financial Statements.
23 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended September 30, 1997
- --------------------------------------------------------------------------------
================================================================================
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding
taxes of $900,019) $ 49,935,008
Affiliated companies (net of foreign withholding
taxes of $403,368) 1,369,513
- --------------------------------------------------------------------------------
Interest 14,447,934
----------------
Total income 65,752,455
================================================================================
Expenses
Management fees--Note 4 25,187,599
- --------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 5,180,110
Class B 6,905,955
Class C 352,398
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 5,068,366
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,815,158
- --------------------------------------------------------------------------------
Shareholder reports 1,426,841
- --------------------------------------------------------------------------------
Registration and filing fees 155,998
- --------------------------------------------------------------------------------
Legal and auditing fees 103,848
- --------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 84,198
- --------------------------------------------------------------------------------
Insurance expenses 27,830
- --------------------------------------------------------------------------------
Other 137,218
----------------
Total expenses 46,445,519
================================================================================
Net Investment Income 19,306,936
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments:
Unaffiliated companies 483,123,234
Affiliated companies 6,466,682
Foreign currency transactions 4,952,949
----------------
Net realized gain 494,542,865
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 629,595,794
Translation of assets and liabilities denominated in
foreign currencies (113,433,049)
----------------
Net change 516,162,745
----------------
Net realized and unrealized gain 1,010,705,610
================================================================================
Net Increase in Net Assets Resulting from Operations $ 1,030,012,546
================
See accompanying Notes to Financial Statements.
24 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
Year Ended September 30,
1997 1996
===============================================================================
Operations
Net investment income $ 19,306,936 $ 13,518,039
- -------------------------------------------------------------------------------
Net realized gain 494,542,865 125,983,836
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation 516,162,745 194,446,573
--------------- ---------------
Net increase in net assets resulting from
operations 1,030,012,546 333,948,448
===============================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (33,892,204) (14,009,023)
Class B (3,899,147) (3,568)
Class C (207,585) (7,369)
- -------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (88,232,113) (120,623,278)
Class B (20,402,731) (20,905,412)
Class C (788,673) (131,770)
===============================================================================
Beneficial Interest Transactions Net
increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 206,934,768 165,278,694
Class B 184,954,826 170,668,404
Class C 33,524,657 16,731,958
===============================================================================
Net Assets
Total increase 1,308,004,344 530,947,084
- ------------------------------------------------------------- ---------------
Beginning of period 3,057,600,955 2,526,653,871
--------------- ---------------
End of period (including undistributed
net investment income of $56,492,098
and $19,988,584, respectively) $ 4,365,605,299 $ 3,057,600,955
=============== ===============
See accompanying Notes to Financial Statements.
25 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------
Year Ended September 30,
1997 1996 1995 1994 1993
==================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $39.00 $36.84 $37.69 $35.04 $30.03
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .32 .23 .31 .17 .26
Net realized and unrealized gain 11.91 4.22 2.59 6.10 4.99
------ ------ ------ ------ ------
Total income from investment operations 12.23 4.45 2.90 6.27 5.25
- ------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.53) (.24) -- (.25) (.12)
Distributions from net realized gain (1.38) (2.05) (3.75) (3.37) (.12)
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (1.91) (2.29) (3.75) (3.62) (.24)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $49.32 $39.00 $36.84 $37.69 $35.04
====== ====== ====== ====== ======
==================================================================================================================
Total Return, at Net Asset Value(3) 32.85% 12.98% 9.26% 19.19% 17.67%
==================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in millions) $3,408 $2,499 $2,186 $1,921 $1,389
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $2,869 $2,309 $1,979 $1,711 $1,213
- ------------------------------------------------------------------------------------------------------------------
Average amount of debt outstanding
throughout period (in thousands) N/A N/A N/A N/A $18,247
- ------------------------------------------------------------------------------------------------------------------
Average number of shares outstanding
throughout each period (in thousands) N/A N/A N/A N/A 39,853
- ------------------------------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each period N/A N/A N/A N/A $0.46
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.74% 0.62% 0.90% 0.38% 0.84%
Expenses 1.13% 1.17% 1.20% 1.15% 1.18%
- ------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 65.9% 102.9% 84.4% 78.3% 86.9%
Average brokerage commission rate(7) $0.0045 $0.0071 -- -- --
</TABLE>
1. For the period from October 2, 1995 (inception of offering) to September 30,
1996.
2. For the period from August 17, 1993 (inception of offering) to September 30,
1993.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
4. Annualized.
26 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Class C
------------------------------------------------------ --------------------------
Year Ended September 30, Year Ended September 30,
1997 1996 1995 1994 1993(2) 1997 1996(1)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $38.19 $36.16 $37.36 $34.99 $33.33 $38.73 $36.67
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.04) (.05) .06 .08 .03 (.08) .09
Net realized and unrealized gain 11.68 4.13 2.49 5.83 1.63 11.86 4.13
------ ------ ------ ------ ------ ------ ------
Total income from investment operations 11.64 4.08 2.55 5.91 1.66 11.78 4.22
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.26) -- -- (.18) -- (.36) (.11)
Distributions from net realized gain (1.38) (2.05) (3.75) (3.36) -- (1.38) (2.05)
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (1.64) (2.05) (3.75) (3.54) -- (1.74) (2.16)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $48.19 $38.19 $36.16 $37.36 $34.99 $48.77 $38.73
====== ====== ====== ====== ====== ====== ======
===================================================================================================================================
Total Return, at Net Asset Value(3) 31.77% 12.07% 8.34% 18.10% 3.64% 31.76% 12.34%
===================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in millions) $897 $541 $340 $187 $6 $60 $18
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $692 $438 $258 $88 $3 $35 $8
- -----------------------------------------------------------------------------------------------------------------------------------
Average amount of debt outstanding
throughout period (in thousands) N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Average number of shares outstanding
throughout each period (in thousands) N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each period N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.23)% (0.17)% 0.09% (0.30)% 1.52%(4) (0.86)%(5) 0.04%(4)
Expenses 1.94% 2.00% 2.03% 2.08% 2.40%(4) 1.94% 1.99%(4)
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 65.9% 102.9% 84.4% 78.3% 86.9% 65.9% 102.9%
Average brokerage commission rate(7) $0.0045 $0.0071 -- -- -- $0.0045 $0.0071
</TABLE>
5. Due to the acquisition of the net assets of Oppenheimer Global Emerging
Growth Fund, the ratios for Class C shares are not necessarily comparable to
those of prior periods.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended September 30, 1997 were $2,356,217,301 and $2,254,813,598,
respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities.
See accompanying Notes to Financial Statements.
27 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Global Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is capital appreciation. The Fund
invests primarily in common stocks of U.S. and foreign companies. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares are sold with a front-end
sales charge. Class B and Class C shares may be subject to a contingent deferred
sales charge. All classes of shares have identical rights to earnings, assets
and voting privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to that class and exclusive voting
rights with respect to matters affecting that class. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. Forward foreign currency exchange contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank or
dealer.
- --------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
28 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, and Gains and Losses. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily 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 continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At September 30, 1997, the
Fund had available for federal tax purposes an unused capital loss carryover of
approximately $27,670,000, which expires between 1998 and 2004. The capital loss
carryover was acquired in connection with the merger with Oppenheimer Global
Emerging Growth Fund.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 1997, a credit of $4,440 was made for the Fund's projected benefit
obligations and payments of $13,575 were made to retired trustees, resulting in
an accumulated liability of $328,124 at September 30, 1997.
29 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may differ
from its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 1997, amounts have been reclassified to reflect an
increase in undistributed net investment income of $55,195,514, a decrease in
accumulated net realized gain on investments of $59,905,058, and an increase in
paid-in capital of $4,709,544.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
30 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended September 30, 1997 Year Ended September 30, 1996(1)
----------------------------- --------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 11,624,466 $ 495,244,280 13,445,573 $ 494,129,386
Dividends reinvested 3,097,502 117,118,681 3,791,424 129,022,228
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 3,204,584 145,520,176 -- --
Redeemed (12,907,303) (550,948,369) (12,511,334) (457,872,920)
---------- ----------- ---------- -----------
Net increase 5,019,249 $ 206,934,768 4,725,663 $ 165,278,694
========== ============= ========== =============
- -------------------------------------------------------------------------------------------------------
Class B:
Sold 5,824,454 $ 244,964,288 6,760,563 $ 244,252,699
Dividends reinvested 624,025 23,201,893 596,683 20,012,734
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 312,088 13,881,679 -- --
Redeemed (2,312,418) (97,093,034) (2,599,758) (93,597,029)
---------- ----------- ---------- -----------
Net increase 4,448,149 $ 184,954,826 4,757,488 $ 170,668,404
========== ============= ========== =============
- -------------------------------------------------------------------------------------------------------
Class C:
Sold 1,111,161 $ 47,405,719 549,240 $ 20,205,091
Dividends reinvested 25,342 953,635 4,029 137,151
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 95,479 4,297,523 -- --
Redeemed (449,001) (19,132,220) (98,123) (3,610,284)
---------- ----------- ---------- -----------
Net increase 782,981 $ 33,524,657 455,146 $ 16,731,958
========== ============= ========== =============
</TABLE>
1. For the year ended September 30, 1996 for Class A and Class B shares, and for
the period from October 2, 1995 (inception of offering) to September 30, 1996
for Class C shares.
================================================================================
3. Unrealized Gains and Losses on Investments
At September 30, 1997, net unrealized appreciation on investments of
$1,140,006,983 was composed of gross appreciation of $1,203,983,497, and gross
depreciation of $63,976,514.
31 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.80% on the first
$250 million of average annual net assets, 0.77% on the next $250 million, 0.75%
on the next $500 million, 0.69% on the next $1 billion and 0.67% on average
annual net assets in excess of $2 billion. The Manager had voluntarily reduced
the management fee to which it is entitled under the Agreement to 0.65% on
average annual net assets in excess of $3.5 billion. Effective February 27,
1997, a new investment advisory agreement provides for a fee of 0.65% on average
annual net assets in excess of $3.5 billion that was previously agreed to by the
voluntary undertaking.
For the year ended September 30, 1997, commissions (sales charges paid by
investors) on sales of Class A shares totaled $5,685,337, of which $1,827,212
was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $7,365,449 and $315,579, respectively, of which $609,555
and $9,233, respectively, was paid to an affiliated broker/dealer. During the
year ended September 30, 1997, OFDI received contingent deferred sales charges
of $1,011,172 and $17,175, respectively, upon redemption of Class B and Class C
shares, as reimbursement for sales commissions advanced by OFDI at the time of
sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of shareholder accounts that hold Class A shares. Reimbursement is
made quarterly at an annual rate that may not exceed 0.25% of the average annual
net assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintaining accounts of their customers that hold Class A
shares. During the year ended September 30, 1997, OFDI paid $344,298 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
32 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its services and costs in distributing Class B and
Class C shares and servicing accounts. Under the Plans, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B shares and Class C
shares, as compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a service fee of
0.25% per year as compensation for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other financial
institutions. Both fees are computed on the average annual net assets of Class B
and Class C shares, determined as of the close of each regular business day.
During the year ended September 30, 1997, OFDI paid $90,584 and $1,705,
respectively, to an affiliated broker/dealer as reimbursement for Class B and
Class C personal service and maintenance expenses and retained $5,658,916 and
$244,833, respectively, as compensation for Class B and Class C sales
commissions and service fee advances, as well as financing costs. If either Plan
is terminated by the Fund, the Board of Trustees may allow the Fund to continue
payments of the asset-based sales charge to OFDI for distributing shares before
the Plan was terminated. At September 30, 1997, OFDI had incurred unreimbursed
expenses of $19,399,031 for Class B and $539,948 for Class C.
================================================================================
5. Forward Contracts
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale of
a security denominated in a foreign currency. In addition, the Fund may enter
into such contracts as a hedge against changes in foreign currency exchange
rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
33 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
5. Forward Contracts (continued)
At September 30, 1997, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
Contract Valuation as of
Amount September 30, Unrealized Unrealized
Expiration Date (000s) 1997 Appreciation Depreciation
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contracts to Purchase
- ---------------------
British Pound Sterling (GBP) 10/1/97-10/3/97 7,354 GBP $ 11,878,149 $ -- $ 55,388
British Pound Sterling (GBP) 10/2/97 9,658 GBP 15,600,722 54,100 --
German Mark (DEM) 10/2/97 37,585 DEM 21,280,157 -- 140,530
Italian Lira (ITL) 10/2/97 69,424,808 ITL 40,363,260 -- 129,482
Italian Lira (ITL) 10/3/97 18,122,465 ITL 10,535,477 2,222 --
------- ----------
56,322 325,400
------- ----------
Contracts to Sell
- -----------------
Austrian Schilling (ATS) 10/6/97 4,059 ATS 326,530 518 --
French Franc (FRF) 12/24/97 1,114,160 FRF 194,530,564 -- 3,199,461
Indonesian Rupiah (IDR) 10/1/97-10/2/97 2,821,503 IDR 865,492 28,241 --
Swiss Franc (CHF) 10/1/97 1,257 CHF 865,661 -- 2,217
------- ----------
28,759 3,201,678
------- ----------
Total Unrealized Appreciation and Depreciation $85,081 $3,527,078
======= ==========
</TABLE>
================================================================================
6. Illiquid and Restricted Securities
At September 30, 1997, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation at September 30, 1997 was $16,485,894, which
represents 0.38% of the Fund's net assets. Information concerning restricted
securities is as follows:
<TABLE>
<CAPTION>
Cost Valuation Per Unit
Security Acquisition Date Per Unit as of Sept. 30, 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Clinica y Maternidad Suizo Argentino 5/16/94 $7,383.33 $ 9,158.83
</TABLE>
34 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
7. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other OppenheimerFunds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended September 30,
1997.
================================================================================
8. Securities Loaned
The Fund has entered into a securities lending arrangement with the custodian.
Under the terms of the agreement, the Fund receives 60% of the annual net income
from lending transactions. In exchange for such fees, the custodian is
authorized to loan securities on behalf of the Fund, against receipt of
collateral at least equal in value to the value of the securities loaned. Cash
collateral is invested by the custodian in money market instruments approved by
the Manager. As of September 30, 1997, the Fund had on loan securities valued at
$446,940,176. Cash of $421,551,595 was received as collateral for the loans, and
has been invested in the approved instruments identified below. U.S. Treasury
Nts. valued at $40,337,663 were also received as collateral. The Fund bears the
risk of any deficiency in the amount of collateral available for return to a
borrower due to a loss in an approved investment.
================================================================================
9. Acquisition of Oppenheimer Global Emerging Growth Fund
On June 20, 1997, the Fund acquired all the net assets of Oppenheimer Global
Emerging Growth Fund, pursuant to an agreement and plan of reorganization
approved by the Oppenheimer Global Emerging Growth Fund shareholders on June 17,
1997. The Fund issued 3,204,584, 312,088 and 95,479 shares of beneficial
interest for Class A, Class B and Class C, respectively, valued at $145,520,176,
$13,881,679, and $4,297,523, in exchange for the net assets, resulting in
combined Class A net assets of $3,183,354,282, Class B net assets of
$783,786,956 and Class C net assets of $46,691,471 on June 20, 1997. The net
assets acquired included net unrealized appreciation of $36,954,700. The
exchange qualified as a tax-free reorganization for federal income tax purposes.
35 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of
Oppenheimer Global Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Global Fund as of September 30, 1997, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the years in the two-year period then ended and the
financial highlights for each of the years in the five-year period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Global Fund as of September 30, 1997, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
October 21, 1997
36 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.9109, $1.6444 and $1.7439 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 18, 1996, of
which $1.3806 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended September 30, 1997
which are not designated as capital gain distributions should be multiplied by
5.93% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The Fund has elected the application of Section 853 of the Internal
Revenue Code to permit shareholders to take a federal income tax credit or
deduction, at their option, on a per share basis for an aggregate amount of
$1,463,654 of foreign income taxes paid by the Fund during the fiscal year ended
September 30, 1997. A separate notice will be mailed to each shareholder in
January of 1998, which will reflect the proportionate share of such foreign
taxes (as well as the dividend paid by the Fund in December of 1997) which must
be treated by shareholders as gross income for federal income tax purposes.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
37 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Shareholder Meeting (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
On February 27, 1997, a special shareholder meeting was held at which the eleven
Trustees identified below were elected, the selection of KPMG Peat Marwick LLP
as the independent certified public accountants and auditors of the Fund for the
fiscal year beginning October 1, 1997 was ratified (Proposal No. 1), the
proposed change in the Investments Advisory Agreement between the Fund and
OppenheimerFunds, Inc. was approved (Proposal No. 2), the Fund's Class B 12b-1
Distribution and Service Plan was approved by Class B shareholders (Proposal No.
3), and the Fund's Class C 12b-1 Distribution and Service Plan was approved by
Class C shareholders (Proposal No. 4) as described in the Fund's proxy statement
for that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
Broker
Nominee/Proposal For Against Withheld/Abstain Non-Votes Total
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Trustees
Leon Levy 46,199,095.781 793,280.641 768,462 46,992,376.422
Robert G. Galli 46,479,003.899 513,372.523 768,462 46,992,376.422
Benjamin Lipstein 46,348,371.078 644,005.344 768,462 46,992,376.422
Bridget A. Macaskill 46,472,809.433 519,566.989 768,462 46,992,376.422
Elizabeth B. Moynihan 46,373,234.984 619,141.438 768,462 46,992,376.422
Kenneth A. Randall 46,446,896.976 545,479.446 768,462 46,992,376.422
Edward V. Regan 46,461,082.196 531,294.226 768,462 46,992,376.422
Russell S. Reynolds, Jr. 46,257,087.547 717,288.875 768,462 46,992,376.422
Donald W. Spiro 46,379,802.554 594,573.868 768,462 46,992,376.422
Pauline Trigere 46,261,214.949 731,161.473 768,462 46,992,376.422
Clayton K. Yeutter 46,272,647.720 719,728.702 768,462 46,992,376.422
Proposal No. 1 43,693,690.505 363,644.207 1,637,136.268 1,821,129 45,694,490.980
Proposal No. 2 42,337,425.188 856,345.364 2,524,876.601 1,821,133 45,718,647.153
Proposal No. 3 6,925,315.483 224,313.953 458,519.620 2,748,378 7,608,149.056
Proposal No. 4 309,131.462 8,356.534 29,191.918 142,589 346,679.914
</TABLE>
38 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Global Fund
- --------------------------------------------------------------------------------
================================================================================
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board
of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
William L. Wilby, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Global Fund.
This report must be preceded or accompanied by a
Prospectus of Oppenheimer Global Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the OFDI or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
39 Oppenheimer Global Fund
<PAGE>
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds.com--
we're here to help.
Internet
24-hr access to account information
- --------------------------
www.oppenheimerfunds.com
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General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-525-7048
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Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
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1-800-852-8457
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PhoneLink
24-hr automated information
and automated transactions
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1-800-533-3310
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Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
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1-800-843-4461
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OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
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1-800-835-3104
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[LOGO] OppenheimerFunds(SM)
Distributor, Inc.
RA0330.001.0997 November 28, 1997
