--------------------------------
Annual Report September 30, 1998
--------------------------------
OPPENHEIMER
Global Fund
[GRAPHIC OMITTED]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
9 Fund Performance
- ----------------------------
13 Financial
Statements
36 Independent
Auditors' Report
- ----------------------------
37 Federal
Income Tax
Information
38 Officers and
Trustees
40 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o Five-star Morningstar: The Fund's Class A shares have earned an overall 5-star
ranking (*****) from Morningstar for the combined 3-, 5- and 10-year periods
ended September 30, 1998, among 819 (3-year), 359 (5-year), and 105 (10-year)
international equity funds.(1)
o Stock markets declined in virtually all of the world's emerging markets during
the period, while European stocks benefited from strong economic conditions.
o The Fund is finding attractive opportunities in well-run businesses worldwide
that we believe were punished unfairly in the recent sell-off.
- -----------------------------
Avg Annual Total Returns
- -----------------------------
For the 1-Year Period
Ended 9/30/98
Class A
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------
-9.85% -15.03%
- -----------------------------
Class B
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------
-10.56% -14.43%
- -----------------------------
Class C
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------
-10.53% -11.31%
- -----------------------------
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. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
short-term changes. For updates on the Fund's performance, please contact your
financial advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
1. Source: Morningstar, Inc., 9/30/98. Morningstar, Inc. ranks mutual funds in
broad investment classes, based on risk-adjusted returns after considering sales
charges and expenses. Return and risk are measured as performance above and
below the 90-day U.S. Treasury bill returns, respectively. Current star rankings
are based on the weighted average of 3-, 5- and 10-year (if applicable) rankings
for a fund or class and are subject to change monthly. Top 10%: 5 stars. Next
22.5%: 4 stars. Middle 35%: 3 stars. Next 22.5%: 2 stars. Bottom 10%: 1 star.
The Fund's Class A shares were ranked 4 stars (3-year), 4 stars (5-year) and 5
stars (10-year) weighted 20%/30%/50%, respectively.
2. Includes changes in net asset value per share without deducting any sales
charges.
3. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the contingent deferred sales charge of 1%. Class B and
C shares are subject to a 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
2 Oppenheimer Global Fund
<PAGE>
Dear shareholder,
- --------------------------------------------------------------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Fund
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since late summer, amid heightened global
concern, stocks declined sharply. Yet, despite continued economic concerns
worldwide, the bond market appeared ready to benefit.
Why have the stock and bond markets responded differently? The financial
crises in Asia and Russia have weakened the earnings of some large U.S.
corporations and have contributed to a slowdown in U.S. economic growth.
Although this slowing economic growth has negatively impacted stocks, it created
a positive environment for bonds. That's because slowing economic growth
generally means fewer inflationary pressures and, as we've recently seen,
interest rates also tend to decline.
What should you do during this period of relative uncertainty? If you have
well-defined long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged
by our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1998
3 Oppenheimer Global Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
"We continue to adhere to our longstanding investment philosophy..."
How did the Fund perform over the one-year period ended September 30, 1998?
The Fund's performance reflected the widely divergent performance of the world's
stock markets. Continuing weakness in Japan and extreme volatility in the
emerging markets of Southeast Asia, Latin America and Russia were offset to some
degree by a relatively strong European stock market.
Why have the emerging markets performed so poorly over the past year or so?
In mid-1997, currency devaluations in Southeast Asia caused overseas investors
to pull billions of dollars of investment capital out of the region. This put
severe pressure on Asian businesses that were suddenly unable to finance their
operations. The result was a financial collapse that was eventually felt around
the world.
Then, in late 1997 and 1998, risk-averse investors pulled capital out of
the emerging markets of Latin America. In our opinion, they did so without
regard to the fundamental fiscal soundness of Latin America's economies and
business conditions. As a result, stock markets there also plummeted.
Russia encountered economic difficulties in 1998 when it found itself
unable to pay its debts. Russia's financial system has not yet developed the
legal framework required to support a capitalist system, leaving little recourse
for creditors when borrowers default.
Why did industrialized markets also decline?
In the United States, large, well-established companies providing consistent
earnings growth fueled the market's rise over the past several years. In the
wake of the Asian crisis, some U.S. companies revealed that their earnings would
not meet analysts' expectations because of reduced
4 Oppenheimer Global Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Frank Jennings
William Wilby (Portfolio Manager)
George Evans
overseas demand and increased competitive pressures domestically. Investors sold
stocks that became too expensive relative to revised earnings forecasts.
The Japanese stock market has been in decline for several years. Japan's
political and economic leadership has so far been unable to pull the country out
of a persistent recession. In our view, that country's capital and labor need to
be deployed more efficiently before Japan's economy can recover.
Europe has been the bright spot on the financial globe so far in 1998.
Although some European companies' stocks have declined in response to the crises
in the emerging markets, others have continued to prosper as they restructure in
anticipation of the formation of the European Monetary Union (EMU) in 1999.
What has been your strategy in this investment environment?
We continue to adhere to our longstanding investment philosophy: we seek to
build a diversified portfolio of good companies in good businesses at good
prices. This approach led us to reduce our exposure to the emerging markets
early in 1998 when it became apparent that Southeast Asia's financial problems
were worse than originally expected. Instead, we emphasized the stocks of
industrialized Europe, which proved to be the top-performing geographic region
for the one-year reporting period that ended September 30, 1998.
5 Oppenheimer Global Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
Avg Annual Total Returns
For the Periods Ended 9/30/98(1)
Class A
1 year 5 year 10 year
- --------------------------------
- -15.03% 10.68% 12.79%
- --------------------------------
Class B
Since
1 year 5 year Inception
- --------------------------------
- -14.43% 10.80% 11.45%
- --------------------------------
Class C
Since
1 year 5 year Inception
- --------------------------------
- -11.31% N/A 9.83%
- --------------------------------
In fact, we may have erred on the side of caution by positioning the portfolio
defensively in January 1998, when we first detected signs of potential
downturns. However, because we believe that attempting to time the short-term
movements of the markets is virtually impossible, we would rather be too
conservative than expose our shareholders to unnecessary risks.
We believe that our portfolio of high-quality companies puts us in a good
position to deliver attractive returns when global markets recover. We're now
finding attractive opportunities in well-managed companies with strong
businesses that, in our view, were unfairly punished in the recent sell-off.
What types of companies contributed most to the Fund's recent performance?
European financial companies provided especially attractive returns over the
past year. That's because European banks, insurance companies and investment
banks have restructured to become more efficient. EMU has provided a catalyst
for financial institutions to improve their operations in order to attract the
capital they need to compete in the European marketplace. The French banks in
our portfolio have been particularly good performers, and we reduced our
positions in some of these stocks after their prices rose dramatically.
European companies that are sensitive to the economic cycle have also
performed well. European consumers have benefited from strong economic growth in
most of the continent, and they have been spending freely on large-ticket items
such as cars. In fact, Porsche AG, one of the Fund's largest holdings, has been
the best performing automobile stock in the world so far this year.
6 Oppenheimer Global Fund
<PAGE>
What types of companies are providing appealing opportunities?
The media business in Europe has been particularly attractive lately, especially
companies involved in digital television. We believe that digital television is
going to be extremely popular because it will bring about the marriage of the
telephone, computer, stereo and television, all in one location. The Fund's
largest stock position, Canal Plus, is a French media company with a stake in
digital television. Despite the very bright prospects for digital TV, Canal Plus
recently sold at valuations 80% lower than the average U.S. cable television
company.
What is your outlook for the global stock markets?
We are cautious over the near term and optimistic over the long term. Economic
growth in much of the world is slowing right now, which has negative
implications for corporate earnings. However, we believe that most stock markets
have already incorporated lower earnings into stock prices. As a result, we have
increasingly found attractive opportunities in well-managed, fundamentally sound
companies. In addition, we believe that valuations in Latin America are
extremely low. In our view, any restoration of investor confidence in the region
should have a particularly beneficial effect on stock prices there.
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 1% (since inception on
8/17/93). Class C returns for the one-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.
7 Oppenheimer Global Fund
<PAGE>
Regional Allocation(2)
Percentage of invested assets
[The following table was represented as a pie chart in the printed material.]
Europe 46.7%
United States/
Canada 37.6
Latin America 6.0
Asia 5.9
Emerging Europe 3.5
Middle East/
Africa 0.3
Regardless of the short-term challenges and opportunities the global stock
markets provide over the next few months, we will continue to maintain a
long-term view of the markets that is measured in years, not weeks or fiscal
quarters. At OppenheimerFunds, we believe that this approach to investing is an
important part of The Right Way to Invest.
Top 10 Country Holdings(2)
- -------------------------------------------
United States 37.2%
- -------------------------------------------
Great Britain 15.3
- -------------------------------------------
France 14.2
- -------------------------------------------
Germany 8.5
- -------------------------------------------
Switzerland 3.0
- -------------------------------------------
Japan 2.9
- -------------------------------------------
Italy 2.4
- -------------------------------------------
Brazil 2.3
- -------------------------------------------
Portugal 2.2
- -------------------------------------------
Argentina 2.1
- -------------------------------------------
Top 10 Stock Holdings(2)
- -------------------------------------------
Canal Plus 5.4%
- -------------------------------------------
Porsche AG, Preference 2.6
- -------------------------------------------
Cap Gemini SA 2.4
- -------------------------------------------
Carlton Communications plc 1.9
- -------------------------------------------
MCI WorldCom, Inc. 1.7
- -------------------------------------------
Nintendo Co. Ltd. 1.6
- -------------------------------------------
Pfizer, Inc. 1.6
- -------------------------------------------
Cadbury Schweppes plc 1.6
- -------------------------------------------
Rentokil Initial plc 1.6
- -------------------------------------------
Wella AG, Preference 1.6
- -------------------------------------------
2. The Fund's portfolio is subject to change. Percentages are as of September
30, 1998, and are based on total market value of investments.
8 Oppenheimer Global Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion by the Manager of the Fund's
performance during its fiscal year ended September 30, 1998, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
o Management's Discussion of Performance. During the fiscal year that
ended September 30, 1998, Oppenheimer Global Fund's performance was affected by
the widely divergent performance of the world's stock markets. The
industrialized nations of Europe led the world in stock market performance, and
the Fund benefited from its substantial investments in European stocks. Although
it experienced gains during the first half of 1998, the U.S. stock market
corrected sharply in mid-July, with volatility continuing through September.
Additionally, the Fund's performance was affected by the substantial volatility
caused by the widespread declines in emerging markets worldwide. The Fund's
portfolio and our management strategies are subject to change.
o Comparing the Fund's Performance to the Market. The graphs that follow
show the performance of a hypothetical $10,000 investment in Class A, Class B
and Class C shares of the Fund held until September 30, 1998. In the case of
Class A shares, performance is measured over a one-, five-, and ten-year period.
In the case of Class B shares, performance is measured over a one- and five-year
period, and from the inception of the class on August 17, 1993. In the case of
Class C shares, performance is measured over a one-year period and from the
inception of the class on October 2, 1995. The graphs assume that all dividends
and capital gains distributions were reinvested in additional shares. The Fund's
performance reflects the deduction of the 5.75% maximum initial sales charge on
Class A shares, the 5% (1-year) and 1% (since inception) applicable contingent
deferred sales charge for Class B, and the 1% (1-year) contingent deferred sales
charge for Class C shares.
The Fund's performance is compared to the performance of the Morgan
Stanley Capital International (MSCI) World Index, an unmanaged index of issuers
listed on the stock exchanges of 20 foreign countries and the United States. It
is widely recognized as a measure of global stock market performance.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities or
countries in the Index.
9 Oppenheimer Global Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Fund (Class A) and Morgan Stanley Capital International
(MSCI) World Index
[The following table was represented as a line graph in the printed material.]
Class A
Amount Invested: $10,000
Sales charge paid: 5.75%
Date invested: 09/30/88
Value of Investment Morgan Stanley
Date in Fund World Index
---- ------- -----------
9/30/88 9,425 10,000
9/30/89 13,465 12,579
9/30/90 13,572 9,924
9/30/91 16,789 12,432
9/30/92 16,070 12,378
9/30/93 18,910 14,964
9/30/94 22,540 16,172
9/30/95 24,629 18,593
9/30/96 27,826 21,233
9/30/97 36,969 26,463
9/30/98 33,327 26,598
Average Annual Total Return of Class A Shares of the Fund at 9/30/98(1)
1 Year -15.03% 5 Year 10.68% 10 Year 12.79%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Fund (Class B) and Morgan Stanley Capital International
(MSCI) World Index
[The following table was represented as a line graph in the printed material.]
Class B
Amount Invested: $10,000
Date Invested: 08/17/93 (inception)
Value of Investment Morgan Stanley
Date in Fund World Index
---- ------- -----------
8/17/93 10,000 10,000
9/30/93 10,364 9,817
9/30/94 12,240 10,609
9/30/95 13,261 12,198
9/30/96 14,861 13,929
9/30/97 19,583 17,360
9/30/98 17,416 17,449
Average Annual Total Return of Class B Shares of the Fund at 9/30/98(2)
1 Year -14.43% 5 Year 10.80% Life 11.45%
10 Oppenheimer Global Fund
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Fund (Class C) and Morgan Stanley Capital International
(MSCI) World Index
[The following table was represented as a line graph in the printed material.]
Class C
Amount Invested: $10,000
Date Invested: 10/02/95 (inception)
Value of Investment Morgan Stanley
Date in Fund World Index
---- ------- -----------
10/2/95 10,000 10,000
9/30/96 11,234 11,420
9/30/97 14,801 14,232
9/30/98 13,242 14,305
Average Annual Total Return of Class C Shares of the Fund at 9/30/98(3)
1 Year -11.31% Life 9.83%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for the MSCI World Index in the graphs for Class B
and Class C begins on 8/31/93 and 9/29/95, respectively.
1. The inception date of the Fund's Class A shares was 12/22/69. The average
annual total returns are shown net of the applicable 5.75% maximum initial sales
charge.
2. Class B shares of the Fund were first publicly offered on 8/17/93. The
average annual total returns are shown net of the applicable 5% and 1%
contingent deferred sales charges, respectively, for the one-year period and the
life of the class. The ending account value in the graph is net of the
applicable 1% contingent deferred sales charge.
3. Class C shares of the Fund were first publicly offered on 10/2/95. The
average annual total return is shown net of the applicable 1% contingent
deferred sales charge for the one-year period.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 Oppenheimer Global Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
12 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments September 30, 1998
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--90.1%
- --------------------------------------------------------------------------------
Basic Materials--0.9%
- --------------------------------------------------------------------------------
Chemicals--0.7%
Minerals Technologies, Inc. 585,000 $ 25,776,562
- --------------------------------------------------------------------------------
Metals--0.2%
Cia de Minas Buenaventura SA,
Sponsored ADR, B Shares(1) 701,500 8,154,937
- --------------------------------------------------------------------------------
Consumer Cyclicals--20.9%
- --------------------------------------------------------------------------------
Autos & Housing--4.4%
Brisa-Auto Estradas de Portugal SA 281,525 12,817,104
- --------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 7,296,101 15,936,565
- --------------------------------------------------------------------------------
Porsche AG, Preference 58,455 102,125,941
- --------------------------------------------------------------------------------
Solidere, GDR(1)(2) 540,000 5,616,000
- --------------------------------------------------------------------------------
Volkswagen AG(3) 500,000 36,347,776
------------
172,843,386
- --------------------------------------------------------------------------------
Leisure & Entertainment--4.5%
Granada Group plc 3,400,000 42,756,975
- --------------------------------------------------------------------------------
Hasbro, Inc. 1,400,000 41,300,000
- --------------------------------------------------------------------------------
International Game Technology 1,411,900 26,208,394
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 681,600 64,091,864
- --------------------------------------------------------------------------------
Resorts World Berhad(4) 2,804,000 2,007,074
------------
176,364,307
- --------------------------------------------------------------------------------
Media--10.2%
Canal Plus 871,000 211,502,781
- --------------------------------------------------------------------------------
Carlton Communications plc 11,000,000 74,773,725
- --------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored
GDR(1)(2)(3) 1,623,300 31,349,981
- --------------------------------------------------------------------------------
Prosieben Media AG, Preferred 365,460 20,116,815
- --------------------------------------------------------------------------------
Singapore Press Holdings Ltd.(1) 2,000,000 16,620,051
- --------------------------------------------------------------------------------
Television Broadcasts Ltd. 4,000,000 10,221,334
- --------------------------------------------------------------------------------
Television Francaise 1 200,000 34,256,346
------------
398,841,033
- --------------------------------------------------------------------------------
Retail: General--0.4%
Sonae Investimentos 528,000 15,392,624
- --------------------------------------------------------------------------------
Retail: Specialty--1.4%
Borders Group, Inc.(3) 1,000,000 22,250,000
- --------------------------------------------------------------------------------
Dixons Group plc 3,000,000 30,665,724
- --------------------------------------------------------------------------------
Giordano International Ltd. 22,160,000 3,002,904
------------
55,918,628
13 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--15.1%
- --------------------------------------------------------------------------------
Beverages--2.0%
Cadbury Schweppes plc 4,900,000 $ 63,452,303
- --------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 36,978,000 14,660,194
------------
78,112,497
- --------------------------------------------------------------------------------
Food--2.9%
Carrefour Supermarche SA 58,500 37,063,493
- --------------------------------------------------------------------------------
Dairy Farm International Holdings
Ltd.(1) 36,683,456 38,884,463
- --------------------------------------------------------------------------------
Raisio Group plc 2,516,000 36,588,316
------------
112,536,272
- --------------------------------------------------------------------------------
Healthcare/Drugs--7.5%
Amgen, Inc.(3) 700,000 52,893,750
- --------------------------------------------------------------------------------
BioChem Pharma, Inc.(1)(3) 888,100 16,318,837
- --------------------------------------------------------------------------------
Fresenius AG, Preference 254,100 43,025,176
- --------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1)(3) 1,000,000 36,125,000
- --------------------------------------------------------------------------------
Gilead Sciences, Inc.(3) 866,200 18,731,575
- --------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 500,000 28,562,500
- --------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc.(3) 140,500 2,985,625
- --------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(3) 513,000 8,913,375
- --------------------------------------------------------------------------------
Novartis AG 12,000 19,235,548
- --------------------------------------------------------------------------------
Pfizer, Inc. 600,000 63,562,500
------------
290,353,886
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--1.1%
Quintiles Transnational Corp.(1)(3) 472,784 20,684,300
- --------------------------------------------------------------------------------
Swiss Medical SA(3)(4)(5) 300,000 20,706,000
------------
41,390,300
- --------------------------------------------------------------------------------
Household Goods--1.6%
Wella AG, Preference 85,000 61,689,504
- --------------------------------------------------------------------------------
Energy--2.4%
- --------------------------------------------------------------------------------
Energy Services & Producers--2.0%
Baker Hughes, Inc. 664,740 13,917,994
- --------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR(1) 350,000 13,868,750
- --------------------------------------------------------------------------------
IHC Caland NV 123,608 5,770,323
- --------------------------------------------------------------------------------
McDermott International, Inc. 1,000,000 26,937,500
- --------------------------------------------------------------------------------
Transocean Offshore, Inc. 503,198 17,454,681
------------
77,949,248
- --------------------------------------------------------------------------------
Oil-Integrated--0.4%
British Petroleum Co. plc, ADR(1) 199,966 17,447,033
14 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Financial--18.0%
- --------------------------------------------------------------------------------
Banks--11.0%
Banco Bradesco SA, Preference 3,997,522,476 $ 23,401,776
- --------------------------------------------------------------------------------
Banco Espirito Santo e Comercial de
Lisboa SA 701,950 19,227,974
- --------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA,
Sponsored ADR(1) 1,562,055 30,264,816
- --------------------------------------------------------------------------------
Banco Latinoamericano de Exportaciones
SA, Cl. E 123,800 1,988,537
- --------------------------------------------------------------------------------
Banco Pinto & Sotto Mayor SA 603,350 9,791,753
- --------------------------------------------------------------------------------
Banco Rio de la Plata SA, ADR(1) 1,825,600 15,517,600
- --------------------------------------------------------------------------------
Banque Libanaise Pour Le Commercial, GDR 230,000 4,312,500
- --------------------------------------------------------------------------------
Barclays plc 900,000 14,698,135
- --------------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 700,000 52,771,585
- --------------------------------------------------------------------------------
Cie Financiere de Paribas(3) 419,980 22,629,521
- --------------------------------------------------------------------------------
Cie Financiere Richemont AG, A Units 20,140 25,751,276
- --------------------------------------------------------------------------------
Citicorp 200,000 18,587,500
- --------------------------------------------------------------------------------
Credito Italiano SpA 9,167,600 38,169,436
- --------------------------------------------------------------------------------
Istituto Bancario San Paolo di Torino 2,000,000 25,114,223
- --------------------------------------------------------------------------------
National Westminster Bank plc 2,627,414 35,162,149
- --------------------------------------------------------------------------------
Northern Trust Corp. 301,600 20,584,200
- --------------------------------------------------------------------------------
UBS AG(3) 250,000 48,760,684
- --------------------------------------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros
SA, Sponsored GDR(1) 1,605,800 21,678,300
-------------
428,411,965
- --------------------------------------------------------------------------------
Diversified Financial--5.4%
American Express Co. 400,000 31,050,000
- --------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 400,000 26,100,000
- --------------------------------------------------------------------------------
Credit Saison Co. Ltd.(1) 1,000,000 19,333,577
- --------------------------------------------------------------------------------
Egypt Investment Co.(3) 96,500 1,447,500
- --------------------------------------------------------------------------------
Fannie Mae 800,000 51,400,000
- --------------------------------------------------------------------------------
First NIS Regional Fund(2) 479,909 1,919,636
- --------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 118,910 6,782,192
- --------------------------------------------------------------------------------
ICICI Ltd. 50 63
- --------------------------------------------------------------------------------
ICICI Ltd., GDR(2) 2,178,200 18,242,425
- --------------------------------------------------------------------------------
Ladbroke Group plc 9,000,000 33,571,703
- --------------------------------------------------------------------------------
Sedgwick Group plc 5,964,920 20,121,552
-------------
209,968,648
- --------------------------------------------------------------------------------
Insurance--1.6%
American International Group, Inc. 195,300 15,038,100
- --------------------------------------------------------------------------------
Chubb Corp. 500,000 31,500,000
- --------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und
Partner AG 27,200 13,800,547
-------------
60,338,647
15 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Real Estate Investment Trusts--0.0%
Unit Trust of India-Masterplus 91(3) 20,900 $ 8,355
- --------------------------------------------------------------------------------
Industrial--5.2%
- --------------------------------------------------------------------------------
Industrial Materials--0.4%
Hanson plc 2,314,413 14,670,538
- --------------------------------------------------------------------------------
Industrial Services--3.7%
Adecco SA 61,818 22,908,589
- --------------------------------------------------------------------------------
Rentokil Initial plc 10,200,000 62,098,729
- --------------------------------------------------------------------------------
Service Corp. International(1) 682,500 21,754,688
- --------------------------------------------------------------------------------
WPP Group plc 8,400,000 38,792,268
-------------
145,554,274
- --------------------------------------------------------------------------------
Manufacturing--1.1%
Societe BIC SA 746,729 41,581,159
- --------------------------------------------------------------------------------
Technology--20.5%
- --------------------------------------------------------------------------------
Aerospace/Defense--1.3%
Rolls-Royce plc 15,094,246 52,071,945
- --------------------------------------------------------------------------------
Computer Hardware--2.4%
International Business Machines Corp. 350,000 44,800,000
- --------------------------------------------------------------------------------
Sun Microsystems, Inc.(3) 1,000,000 49,812,500
-------------
94,612,500
- --------------------------------------------------------------------------------
Computer Software/Services--4.3%
Cap Gemini SA(1) 600,000 91,849,827
- --------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1)(3) 500,000 20,093,750
- --------------------------------------------------------------------------------
Microsoft Corp.(3) 250,000 27,515,625
- --------------------------------------------------------------------------------
Misys plc 3,000,000 27,122,469
-------------
166,581,671
- --------------------------------------------------------------------------------
Electronics--3.6%
Advanced Micro Devices, Inc.(1)(3) 2,000,000 37,125,000
- --------------------------------------------------------------------------------
National Semiconductor Corp.(3) 4,000,000 38,750,000
- --------------------------------------------------------------------------------
Royal Philips Electronics NV 500,000 26,921,977
- --------------------------------------------------------------------------------
Sony Corp.(1) 400,000 27,799,341
- --------------------------------------------------------------------------------
STMicroelectronics NV(1)(3) 170,000 7,639,375
-------------
138,235,693
- --------------------------------------------------------------------------------
Telecommunications-Technology--8.9%
Alcatel 600,000 53,311,438
- --------------------------------------------------------------------------------
Cable & Wireless Communications plc(3) 1,600,000 10,699,440
- --------------------------------------------------------------------------------
Cisco Systems, Inc.(3) 558,000 34,491,375
- --------------------------------------------------------------------------------
Energis plc(3) 2,400,000 29,875,502
- --------------------------------------------------------------------------------
General Instrument Corp.(3) 2,000,000 43,250,000
- --------------------------------------------------------------------------------
Kinnevik Investments AB Free, Series B(1) 1,400,000 36,811,402
- --------------------------------------------------------------------------------
Leap Wireless International, Inc.(1)(3) 250,000 1,171,875
16 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Telecommunications-Technology (continued)
Lucent Technologies, Inc. 100,000 $ 6,906,250
- --------------------------------------------------------------------------------
QUALCOMM, Inc.(1)(3) 1,000,000 47,937,500
- --------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 1,145,200 24,192,350
- --------------------------------------------------------------------------------
SK Telecom Co. Ltd. 48,568 22,668,402
- --------------------------------------------------------------------------------
Societe Europeenne de Communication SA,
ADS, A Shares(3) 28,000 643,306
- --------------------------------------------------------------------------------
Societe Europeenne de Communication SA,
ADS, B Shares(3) 252,000 5,789,750
- --------------------------------------------------------------------------------
Telecom Italia Mobile SpA 5,000,000 29,108,292
--------------
346,856,882
- --------------------------------------------------------------------------------
Utilities--7.1%
- --------------------------------------------------------------------------------
Electric Utilities--1.0%
Vivendi (Ex-Generale des Eaux) 200,000 39,823,002
- --------------------------------------------------------------------------------
Telephone Utilities--6.1%
AT&T Corp.(1) 800,000 46,750,000
- --------------------------------------------------------------------------------
Cia de Telecommunicaciones de Chile SA,
Sponsored ADR(1) 380,000 7,267,500
- --------------------------------------------------------------------------------
CPT Telefonica del Peru SA, Cl. B 9,279,949 11,396,736
- --------------------------------------------------------------------------------
Hellenic Tellecommunication Organization SA 2,000,000 47,915,825
- --------------------------------------------------------------------------------
MCI WorldCom, Inc.(3) 1,332,600 65,130,825
- --------------------------------------------------------------------------------
Portugal Telecom SA 750,000 27,268,353
- --------------------------------------------------------------------------------
Telecomunicacoes de Sao Paulo SA, Preference 159,977,692 23,210,597
- --------------------------------------------------------------------------------
Telesp Celular SA, Cl. B(3) 159,207,000 6,849,057
--------------
235,788,893
--------------
Total Common Stocks (Cost $3,272,476,560) 3,507,274,389
Units
================================================================================
Rights, Warrants and Certificates--0.0%
- --------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 51,750 --
- --------------------------------------------------------------------------------
Industrial Finance Corp. of Thailand (The) Rts.,
Exp. 6/99 3,693,249 --
--------------
Total Rights, Warrants and Certificates
(Cost $0) --
Face
Amount
================================================================================
U.S. Government Obligations--1.9%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 5.09%,
11/15/18 (Cost $54,577,517)(8) $ 216,900,000 73,944,897
================================================================================
Short-Term Notes--7.1%(9)
- --------------------------------------------------------------------------------
Countrywide Home Loans, 5.53%, 10/27/98 25,000,000 24,900,153
- --------------------------------------------------------------------------------
Countrywide Home Loans, 5.54%, 10/14/98 25,000,000 24,949,896
- --------------------------------------------------------------------------------
Countrywide Home Loans, 5.58%, 10/20/98 25,000,000 24,926,111
- --------------------------------------------------------------------------------
Ford Motor Credit Co., 5.52%, 10/6/98 50,000,000 49,961,666
- --------------------------------------------------------------------------------
General Electric Capital Services, 5.53%,
10/7/98 50,000,000 49,953,917
- --------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.50%,
10/23/98 50,000,000 49,831,944
- --------------------------------------------------------------------------------
Goldman Sachs Group, LP, 5.51%, 10/9/98 50,000,000 49,938,667
--------------
Total Short-Term Notes (Cost $274,462,354) 274,462,354
17 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
================================================================================
Repurchase Agreements--0.9%
- --------------------------------------------------------------------------------
Repurchase agreement with PaineWebber,
Inc., 5.50%, dated 9/30/98, to be
repurchased at $36,555,584 on 10/1/98,
collateralized by U.S. Treasury Bonds,
7.625%, 2/15/25, with a value of
$38,193,772 (Cost $36,550,000) $ 36,550,000 $ 36,550,000
- --------------------------------------------------------------------------------
Total Investments, at Value
(Cost $3,638,066,431) 100.0% 3,892,231,640
- --------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.0 710,888
------------- -------------
Net Assets 100.0% $3,892,942,528
============= ==============
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
Country Market Value Percent
- -------------------------------------------------------------------------------
United States $1,446,546,292 37.2%
- -------------------------------------------------------------------------------
Great Britain 596,542,689 15.3
- -------------------------------------------------------------------------------
France 553,525,690 14.2
- -------------------------------------------------------------------------------
Germany 329,877,345 8.5
- -------------------------------------------------------------------------------
Switzerland 116,656,096 3.0
- -------------------------------------------------------------------------------
Japan 111,224,782 2.9
- -------------------------------------------------------------------------------
Italy 92,391,951 2.4
- -------------------------------------------------------------------------------
Brazil 89,799,925 2.3
- -------------------------------------------------------------------------------
Portugal 84,497,808 2.2
- -------------------------------------------------------------------------------
Argentina 82,424,981 2.1
- -------------------------------------------------------------------------------
Singapore 55,504,515 1.4
- -------------------------------------------------------------------------------
Greece 47,915,825 1.2
- -------------------------------------------------------------------------------
Sweden 43,244,458 1.1
- -------------------------------------------------------------------------------
Finland 36,588,316 0.9
- -------------------------------------------------------------------------------
The Netherlands 32,692,301 0.8
- -------------------------------------------------------------------------------
Mexico 31,349,981 0.8
- -------------------------------------------------------------------------------
India 25,033,034 0.6
- -------------------------------------------------------------------------------
Korea, Republic of (South) 22,668,402 0.6
- -------------------------------------------------------------------------------
Belgium 20,093,750 0.5
- -------------------------------------------------------------------------------
Peru 19,551,674 0.5
- -------------------------------------------------------------------------------
Canada 16,318,838 0.4
- -------------------------------------------------------------------------------
China 13,224,239 0.3
- -------------------------------------------------------------------------------
Lebanon 9,928,500 0.3
- -------------------------------------------------------------------------------
Chile 7,267,500 0.2
- -------------------------------------------------------------------------------
Malaysia 2,007,074 0.1
- -------------------------------------------------------------------------------
Panama 1,988,538 0.1
- -------------------------------------------------------------------------------
Russia 1,919,636 0.1
- -------------------------------------------------------------------------------
Egypt 1,447,500 0.0
-------------- -------
Total $3,892,231,640 100.0%
============== =======
18 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Loaned security--See Note 9 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 $57,128,042 or 1.47% of the Fund's net
assets as of September 30, 1998.
3. Non-income producing security.
4. Identifies issues considered to be illiquid or restricted--See Note 7 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,
1998. The aggregate fair value of all securities of affiliated companies held by
the Fund as of September 30, 1998 amounts to $20,706,000. Transactions during
the period in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Gross Gross Shares
Sept. 30, 1997 Additions Reductions Sept. 30, 1998
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Clinica y Maternidad
Suizo Argentino(6) 1,800 -- 1,800 --
- ----------------------------------------------------------------------------------------
Swiss Medical SA(6) -- 300,000 -- 300,000
- ----------------------------------------------------------------------------------------
LEM Holdings SA 25,000 -- 25,000 --
- ----------------------------------------------------------------------------------------
Wella AG, Preference(7) 163,000 7,000 85,000 85,000
</TABLE>
6. Swiss Medical SA signed a Share Exchange Agreement to acquire all outstanding
shares of Swiss Medical Group SA and Clinica y Maternidad Suizo Argentino in
exchange for shares of Swiss Medical SA.
7. Not an affiliate as of September 30, 1998.
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.
19 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities September 30, 1998
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,624,776,431) $3,871,525,640
Affiliated companies (cost $13,290,000) 20,706,000
- --------------------------------------------------------------------------------
Cash 220,018
- --------------------------------------------------------------------------------
Collateral for securities loaned--Note 9 291,899,764
- --------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts--Note 5 2,365
- --------------------------------------------------------------------------------
Receivables:
Investments sold 50,235,498
Interest and dividends 7,141,852
Shares of beneficial interest sold 3,251,103
- --------------------------------------------------------------------------------
Other 152,346
--------------
Total assets 4,245,134,586
================================================================================
Liabilities
Return of collateral for securities loaned--Note 9 291,899,764
- --------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 62,083
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 49,886,980
Distribution and service plan fees 2,270,344
Shares of beneficial interest redeemed 5,949,402
Transfer and shareholder servicing agent fees 642,644
Custodian fees 465,331
Shareholder reports 440,484
Trustees' fees--Note 1 317,504
Other 257,522
--------------
Total liabilities 352,192,058
================================================================================
Net Assets $3,892,942,528
==============
================================================================================
Composition of Net Assets
Paid-in capital $3,302,267,050
- --------------------------------------------------------------------------------
Undistributed net investment income 31,649,782
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign
currency transactions 303,407,647
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 255,618,049
--------------
Net assets $3,892,942,528
==============
20 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 $2,904,762,558 and 75,761,847 shares of
beneficial interest outstanding) $38.34
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $40.68
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $897,472,603 and 24,045,890
shares of beneficial interest outstanding) $37.32
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $90,707,367 and 2,400,552
shares of beneficial interest outstanding) $37.79
See accompanying Notes to Financial Statements.
21 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statement of Operations For the Year Ended September 30, 1998
- -------------------------------------------------------------------------------
===============================================================================
Investment Income
Dividends (net of foreign withholding taxes of $1,174,417) $ 48,697,049
- -------------------------------------------------------------------------------
Interest 42,666,054
- -------------------------------------------------------------------------------
Lending fees--Note 9 1,740,989
-------------
Total income 93,104,092
===============================================================================
Expenses
Management fees--Note 4 30,654,007
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 7,503,574
Class B 9,656,431
Class C 793,141
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 6,265,309
- -------------------------------------------------------------------------------
Custodian fees and expenses 2,121,713
- -------------------------------------------------------------------------------
Shareholder reports 893,357
- -------------------------------------------------------------------------------
Registration and filing fees 172,316
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 112,273
- -------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 61,270
- -------------------------------------------------------------------------------
Insurance expenses 26,067
- -------------------------------------------------------------------------------
Other 222,125
-------------
Total expenses 58,481,583
===============================================================================
Net Investment Income 34,622,509
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments:
Unaffiliated companies 529,632,943
Affiliated companies 232,157
Closing of futures contracts (16,533,101)
Foreign currency transactions (104,194,692)
-------------
Net realized gain 409,137,307
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (748,040,170)
Translation of assets and liabilities denominated in
foreign currencies (134,233,001)
-------------
Net change (882,273,171)
-------------
Net realized and unrealized loss (473,135,864)
===============================================================================
Net Decrease in Net Assets Resulting from Operations $(438,513,355)
=============
See accompanying Notes to Financial Statements.
22 Oppenheimer Global Fund
<PAGE>
- -------------------------------------------------------------------------------
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
Year Ended September 30,
1998 1997
===============================================================================
Operations
Net investment income $ 34,622,509 $ 19,306,936
- -------------------------------------------------------------------------------
Net realized gain 409,137,307 494,542,865
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation (882,273,171) 516,162,745
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations (438,513,355) 1,030,012,546
===============================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (56,873,734) (33,892,204)
Class B (9,622,535) (3,899,147)
Class C (754,610) (207,585)
- -------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (393,765,656) (88,232,113)
Class B (109,218,961) (20,402,731)
Class C (7,621,412) (788,673)
===============================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 262,647,406 206,934,768
Class B 230,002,915 184,954,826
Class C 51,057,171 33,524,657
===============================================================================
Net Assets
Total increase (decrease) (472,662,771) 1,308,004,344
- -------------------------------------------------------------------------------
Beginning of period 4,365,605,299 3,057,600,955
--------------- ---------------
End of period (including undistributed
net investment income of $31,649,782 and
$56,492,098, respectively) $ 3,892,942,528 $ 4,365,605,299
=============== ===============
See accompanying Notes to Financial Statements.
23 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Class A
-----------------------------
Year Ended September 30,
1998 1997 1996
================================================================================
Per Share Operating Data
Net asset value, beginning of period $49.32 $39.00 $36.84
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 1.08 .32 .23
Net realized and unrealized gain (loss) (5.49) 11.91 4.22
------ ------ ------
Total income (loss) from investment operations (4.41) 12.23 4.45
- --------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.83) (.53) (.24)
Distributions from net realized gain (5.74) (1.38) (2.05)
------ ------ ------
Total dividends and distributions to shareholders (6.57) (1.91) (2.29)
- --------------------------------------------------------------------------------
Net asset value, end of period $38.34 $49.32 $39.00
====== ====== ======
===============================================================================
Total Return, at Net Asset Value(2) (9.85)% 32.85% 12.98%
===============================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $2,905 $3,408 $2,499
- -------------------------------------------------------------------------------
Average net assets (in millions) $3,381 $2,869 $2,309
- -------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.96% 0.74% 0.62%
Expenses 1.14% 1.13% 1.17%
- -------------------------------------------------------------------------------
Portfolio turnover rate(5) 64.8% 65.9% 102.9%
1. For the period from October 2, 1995 (inception of offering) to September 30,
1996.
2. 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.
3. Annualized.
24 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
---------------- -----------------------------------------------
Year Ended September 30,
1995 1994 1998 1997 1996 1995 1994
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $37.69 $35.04 $ 48.19 $38.19 $36.16 $37.36 $34.99
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .31 .17 .69 (.04) (.05) .06 .08
Net realized and unrealized gain (loss) 2.59 6.10 (5.31) 11.68 4.13 2.49 5.83
------ ------ ------- ------ ------ ------ ------
Total income (loss) from investment operations 2.90 6.27 (4.62) 11.64 4.08 2.55 5.91
- ----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.25) (.51) (.26) -- -- (.18)
Distributions from net realized gain (3.75) (3.37) (5.74) (1.38) (2.05) (3.75) (3.36)
------ ------ ------- ------ ------ ------ ------
Total dividends and distributions to shareholders (3.75) (3.62) (6.25) (1.64) (2.05) (3.75) (3.54)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $36.84 $37.69 $ 37.32 $48.19 $38.19 $36.16 $37.36
====== ====== ======= ====== ====== ====== ======
======================================================================================================================
Total Return, at Net Asset Value(2) 9.26% 19.19% (10.56)% 31.77% 12.07% 8.34% 18.10%
======================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $2,186 $1,921 $ 897 $ 897 $ 541 $ 340 $ 187
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,979 $1,711 $ 966 $ 692 $ 438 $ 258 $ 88
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.90% 0.38% 0.20% (0.23)% (0.17)% 0.09% (0.30)%
Expenses 1.20% 1.15% 1.91% 1.94% 2.00% 2.03% 2.08%
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 84.4% 78.3% 64.8% 65.9% 102.9% 84.4% 78.3%
</TABLE>
4. 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.
5. 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, 1998, were $2,584,104,436 and $2,817,472,485, respectively.
25 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
----------------------------
Year Ended September 30,
1998 1997 1996(1)
================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $48.77 $38.73 $36.67
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .75 (.08) .09
Net realized and unrealized gain (loss) (5.42) 11.86 4.13
------ ------ ------
Total income (loss) from investment operations (4.67) 11.78 4.22
- --------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.57) (.36) (.11)
Distributions from net realized gain (5.74) (1.38) (2.05)
------ ------ ------
Total dividends and distributions to shareholders (6.31) (1.74) (2.16)
- --------------------------------------------------------------------------------
Net asset value, end of period $37.79 $48.77 $38.73
====== ====== ======
================================================================================
Total Return, at Net Asset Value(2) (10.53)% 31.76% 12.34%
================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $91 $60 $18
- --------------------------------------------------------------------------------
Average net assets (in millions) $79 $35 $8
- --------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.23% (0.86)%(4) 0.04%(3)
Expenses 1.91% 1.94% 1.99%(3)
- --------------------------------------------------------------------------------
Portfolio turnover rate(5) 64.8% 65.9% 102.9%
</TABLE>
1. For the period from October 2, 1995 (inception of offering) to September 30,
1996.
2. 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.
3. Annualized.
4. 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.
5. 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, 1998, were $2,584,104,436 and $2,817,472,485, respectively.
See accompanying Notes to Financial Statements.
26 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. Current income
is not an objective. The Fund invests primarily in common stocks of U.S. and
foreign companies and normally invests a substantial portion of its assets in
foreign stocks. The Fund emphasizes investments in "growth-type" companies, in
industry sectors that have appreciation possibilities. 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.
27 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
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.
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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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. As of September 30, 1998,
the Fund had available for federal tax purposes an unused capital loss carryover
of approximately $18,661,000, which expires between 1999 and 2004. The capital
loss carryover was acquired in connection with the Oppenheimer Global Emerging
Growth Fund merger. There are certain limitations to the amount that may be used
each year.
- --------------------------------------------------------------------------------
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, 1998, a credit of $18,129 was made for the Fund's projected
benefit obligations and payments of $13,577 were made to retired trustees,
resulting in an accumulated liability of $296,418 as of September 30, 1998.
28 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
The Board of Trustees has adopted a deferred compensation plan for independent
Trustees that enables Trustees to elect to defer receipt of all or a portion of
annual fees they are entitled to receive from the Fund. Under the plan, the
compensation deferred is periodically adjusted as though an equivalent amount
had been invested for the Trustee in shares of one or more Oppenheimer funds
selected by the Trustee. The amount paid to the Trustee under the plan will be
determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
- --------------------------------------------------------------------------------
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, 1998, amounts have been reclassified to
reflect an increase in paid-in capital of $8,255,776, an increase in
undistributed net investment income of $7,786,054, and a decrease in accumulated
net realized gain on investments of $16,041,830.
- --------------------------------------------------------------------------------
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.
29 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
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, 1998 Year Ended September 30, 1997
---------------------------- ----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 14,196,415 $630,090,478 11,624,466 $495,244,280
Dividends and distributions
reinvested 10,509,965 432,695,731 3,097,502 117,118,681
Issued in connection with the
acquisition of Oppenheimer
Global Emerging Growth
Fund--Note 10 -- -- 3,204,584 145,520,176
Redeemed (18,038,607) (800,138,803) (12,907,303) (550,948,369)
------------- ------------- ------------- -------------
Net increase 6,667,773 $262,647,406 5,019,249 $206,934,768
============= ============= ============= =============
- ------------------------------------------------------------------------------------------------
Class B:
Sold 6,370,879 $277,884,257 5,824,454 $244,964,288
Dividends and distributions
reinvested 2,816,048 113,599,323 624,025 23,201,893
Issued in connection with the
acquisition of Oppenheimer
Global Emerging Growth
Fund--Note 10 -- -- 312,088 13,881,679
Redeemed (3,761,661) (161,480,436) (2,312,418) (97,093,034)
------------- ------------- ------------- -------------
Net increase 5,425,266 $230,002,915 4,448,149 $184,954,826
============= ============= ============= =============
- ------------------------------------------------------------------------------------------------
Class C:
Sold 1,722,952 $75,968,436 1,111,161 $47,405,719
Dividends and distributions
reinvested 196,350 8,016,932 25,342 953,635
Issued in connection with the
acquisition of Oppenheimer
Global Emerging Growth
Fund--Note 10 -- -- 95,479 4,297,523
Redeemed (756,877) (32,928,197) (449,001) (19,132,220)
------------- ------------- ------------- -------------
Net increase 1,162,425 $51,057,171 782,981 $33,524,657
============= ============= ============= =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
As of September 30, 1998, net unrealized appreciation on investments of
$254,165,209 was composed of gross appreciation of $693,488,661, and gross
depreciation of $439,323,452.
30 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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% of the first
$250 million of average annual net assets, 0.77% of the next $250 million, 0.75%
of the next $500 million, 0.69% of the next $1 billion, 0.67% of the next $1.5
billion, 0.65% of the next $2.5 billion and 0.63% of average annual net assets
in excess of $6 billion. The agreement was amended per resolutions adopted by
the Board of Trustees on December 11, 1997 to add the final breakpoint of 0.63%
on average annual net assets in excess of $6 billion. The Fund's management fee
for the year ended September 30, 1998, was 0.69% of average annual net assets
for Class A, Class B and Class C shares.
For the year ended September 30, 1998, commissions (sales charges
paid by investors) on sales of Class A shares totaled $6,261,092, of which
$1,978,731 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 $8,602,381 and $521,410, respectively,
of which $746,915 and $13,202, respectively, was paid to an affiliated
broker/dealer. During the year ended September 30, 1998, OFDI received
contingent deferred sales charges of $1,504,663 and $25,625, 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
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
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 maintenance of
accounts of their customers that hold Class A shares. During the year ended
September 30, 1998, OFDI paid $441,211 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
31 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates (continued)
The Fund has adopted Distribution and Service Plans for Class B and Class C
shares to compensate OFDI for its 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 and Class C shares for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and Class C shares. Each fee is computed
on the average annual net assets of Class B or Class C shares, determined as of
the close of each regular business day. During the year ended September 30,
1998, OFDI paid $132,174 and $9,111, respectively, to an affiliated
broker/dealer as compensation for Class B and Class C personal service and
maintenance expenses and retained $7,793,329 and $501,769, 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. As of
September 30, 1998, OFDI had incurred excess distribution and servicing costs of
$20,969,247 for Class B and $1,028,248 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.
32 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
As of September 30, 1998, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized Unrealized
Expiration Dates Amount (000s) Sept. 30, 1998 Appreciation Depreciation
- --------------------------------------------------------------------------------------------------------------------------------
Contracts to Purchase
- ---------------------
<S> <C> <C> <C> <C> <C>
German Mark (DEM) 10/1/98 2,104 DEM $ 1,258,795 $2,365 $ --
British Pound Sterling (GBP) 10/1/98-10/5/98 10,915 GBP 18,546,510 -- 62,083
------ -------
Total Unrealized Appreciation and Depreciation $2,365 $62,083
====== =======
</TABLE>
================================================================================
6. Futures Contracts
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against
increases in interest rates and the resulting negative effect on the value of
fixed rate portfolio securities. The Fund may also purchase futures contracts to
gain exposure to charges in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities (initial margin) in an amount equal to a
certain percentage of the contract value. Subsequent payments (variation margin)
are made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized gain or loss when the contract
is closed or expires.
Risks of entering into futures contracts (and related options)
include the possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with changes in the
value of the underlying securities.
33 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
7. Illiquid and Restricted Securities
As of September 30, 1998, 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 as of September 30, 1998, was $22,713,074, which
represents 0.58% of the Fund's net assets, of which $20,706,000 is considered
restricted. Information concerning restricted securities is as follows:
Valuation
Cost Per Unit as of
Security Acquisition Date Per Unit Sept. 30, 1998
- --------------------------------------------------------------------------------
Stocks
- ------
Swiss Medical SA 10/28/97 $44.30 $69.02
================================================================================
8. 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 Oppenheimer funds 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, 1998.
34 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
9. 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 fee 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, 1998, the Fund had on loan securities valued at
$273,159,888. Cash of $291,899,764 was received as collateral for the loans, and
has been invested in approved instruments. 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.
================================================================================
10. 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.
================================================================================
11. Other Matters
The Board of Trustees approved the inception of Class Y for the Fund, to be
offered on November 17, 1998.
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, 1998, 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, 1998, 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, 1998, 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, 1998
36 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $6.5734, $6.2501 and $6.3129 per share were paid
to Class A, Class B and Class C shareholders, respectively, on December 5, 1997,
of which, for each class of shares, $1.8651 was designated as a capital gain
distribution in the "28% Rate Group" and $3.1339 was designated as a capital
gain distribution in the "20% Rate Group" 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.
Dividends paid by the Fund during the fiscal year ended September
30, 1998, which are not designated as capital gain distributions should be
multiplied by 43.96% 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
$3,417,299 of foreign income taxes paid by the Fund during the fiscal year ended
September 30, 1998. A separate notice will be mailed to each shareholder in
January of 1999, which will reflect the proportionate share of such foreign
taxes (as well as the dividend expected to be paid by the Fund in December of
1998) 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>
- --------------------------------------------------------------------------------
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 FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
38 Oppenheimer Global Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
===============================================================================================
Real Asset Funds
- -----------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
===============================================================================================
Global Stock Funds
- -----------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income Fund
Company Fund
===============================================================================================
Stock Funds
- -----------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
===============================================================================================
Stock & Bond Funds
- -----------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund(1) Convertible Securities Fund(2)
Value Fund Equity Income Fund
===============================================================================================
Taxable Bond Funds
- -----------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
===============================================================================================
Municipal Bond Funds
- -----------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
===============================================================================================
Money Market Funds(4)
- -----------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value
Fund."
2. On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
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 or by visiting our website. 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 or website 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. Online
transactions now available
- -------------------------
www.oppenheimerfunds.com
- -------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- -------------------------
1-800-525-7048
- -------------------------
Account Transactions
Mon-Fri 8:30am-8pm ET
- -------------------------
1-800-852-8457
- -------------------------
PhoneLink
24-hr automated information
and automated transactions
- -------------------------
1-800-533-3310
- -------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
- -------------------------
1-800-843-4461
- -------------------------
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
- -------------------------
1-800-835-3104
- -------------------------
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
RA0330.001.0998 November 27, 1998
