<PAGE> 1
SEMIANNUAL REPORT MARCH 31, 1998
OPPENHEIMER
GLOBAL FUND
[PHOTO]
[OPPEHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's
Manager
10 Statement of
Investments
18 Statement of
Assets and
Liabilities
20 Statement of
Operations
21 Statements of
Changes in
Net Assets
22 Financial Highlights
25 Notes to Financial
Statements
33 Officers and
Trustees
36 Information and
Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - OUR THEME-ORIENTED, "BOTTOM-UP" INVESTMENT STYLE led us away from Asian stocks
more than two years ago. We had little direct exposure to the region when the
crisis hit last summer. The small Asian portion of our portfolio produced solid,
positive returns during calendar year 1997.
- - THE U.S. STOCK MARKET EXPERIENCED A MAJOR SETBACK IN LATE OCTOBER in response
to the economic crisis in Southeast Asia. However, stocks have since rallied
strongly and by mid-March, most broad U.S. stock indices were again setting new
records.
- - THE FUND RECEIVED OUTSTANDING RETURNS from zero-coupon U.S. Treasury
securities, which provided the benefits of capital appreciation as interest
rates declined.
CUMULATIVE TOTAL RETURNS
For the 6-Month Period
Ended 3/31/98
CLASS A
Without With
Sales Chg.(1) Sales Chg.(2)
7.22% 1.05%
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
6.77% 2.15%
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
6.80% 5.87%
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
1. Includes changes in net asset value per share without deducting any sales
charges. This performance is not annualized.
2. 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%. 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. This performance is not annualized.
2 Oppenheimer Global Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Global Fund
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since the government
began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch farther and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations seeking to improve their
bottom lines.
At OppenheimerFunds, we do not believe we will see a period of deflation in
the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
April 21, 1998
3 Oppenheimer Global Fund
<PAGE> 4
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 3/31/98(1)
CLASS A
1 year 5 year 10 year
22.43% 18.40% 14.89%
CLASS B
Since
1 year 5 year Inception
23.82% N/A 17.06%
CLASS C
Since
1 year 5 year Inception
27.86% N/A 20.12%
CUMULATIVE TOTAL RETURN
For the Period Ended 3/31/98(1)
CLASS A
5 year
132.69% $23,269(4)
PERFORMANCE UPDATE
- --------------------------------------------------------------------------------
Primarily because of its successful, "bottom-up"stock selection strategy,
Oppenheimer Global Fund performed well, providing a cumulative total return
without sales charges of 7.22% for the six-month period ended March 31, 1998. In
addition, the Fund's Class A shares provided an average annual total return
without sales charges of 29.90% for the one-year period ended March 31,
1998.(2) This performance beats the average Lipper return for global mutual
funds of 27.06% for the same one-year period.(3)
GROWTH OF $10,000
Over five years(4)
(without sales charges)
<TABLE>
<CAPTION>
Oppenheimer Global Fund
Class A shares MSCI World Index
<S> <C>
10,000 10,000
10,500.9 10,560.1
11,778.1 11,009.6
13,726 11,141
13,372.1 11,164.1
13,212 11,451.9
14,038.9 11,649.4
13,299.7 11,515.1
13,553.6 12,000.7
14,490.6 12,459.4
15,340 13,101.2
15,505.4 13,668.7
16,265.3 14,169.5
16,918.6 14,523.5
17,331.8 14,658.2
18,221.8 15,271.1
19,006.1 15,258.4
21,242.5 17,493.5
23,025.9 17,935.5
22,197.7 17,434.8
24,688.2 19,868.9
</TABLE>
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 12/22/69. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Class B returns include the applicable
contingent deferred sales charge of 5% (1 year) and 2% (since inception on
8/17/93). Class C returns for the 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.
2. Includes changes in net asset value per share without deducting
any sales charges. Such performance is not annualized and would have been lower
if sales charges were taken into account.
4 Oppenheimer Global Fund
<PAGE> 5
REGIONAL ALLOCATION
(Percentage of invested
assets)(5)
<TABLE>
<S> <C>
- - Europe 44.6%
- - United States/
Canada 39.5
- - Latin America 7.7
- - Asia 7.0
- - Middle East/Africa 1.2
</TABLE>
PORTFOLIO REVIEW
- --------------------------------------------------------------------------------
Oppenheimer Global Fund is designed for investors seeking long-term capital
appreciation from growth companies worldwide.
WHAT WE LOOK FOR
- - Stocks of small, medium and large GROWTH-ORIENTED COMPANIES worldwide.
- - Companies that stand to benefit from one or more GLOBAL GROWTH TRENDS.
- - Businesses with strong competitive positions and high DEMAND for their
products or services.
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(5)
................................................................................
<S> <C> <C> <C>
Wella AG Preference 3.2% National Semiconductor Corp. 1.8%
................................................................................
Porsche AG Preference 2.9 UBS, Bearer 1.8
................................................................................
CAP Gemini SA 2.6 QUALCOMM, Inc. 1.6
................................................................................
Canal Plus 2.5 Cie Financiere de Paribas, Series A 1.6
................................................................................
Alcatel Alsthom SA 2.5 Rolls Royce PLC 1.5
................................................................................
<CAPTION>
TOP 10 COUNTRY HOLDINGS(5)
................................................................................
<S> <C> <C> <C>
United States 38.5% Japan 3.5%
................................................................................
France 13.4 Portugal 3.2
................................................................................
Great Britain 12.1 Italy 3.2
................................................................................
Germany 8.4 Brazil 2.8
................................................................................
Switzerland 3.5 Mexico 2.0
................................................................................
</TABLE>
3. Source: Lipper Analytical Services, 3/31/98. Oppenheimer Global Fund was
ranked 70 of 191 (1-year), 5 of 51 (5-year), and 3 of 20 (10-year) funds in the
global fund category for the periods ended 3/31/98. Lipper rankings are based on
total return and do not take sales charges into account.
4. Results of a hypothetical $10,000 investment in Class A shares on March 31,
1993. The Morgan Stanley Capital International World Index is an unmanaged
broad-based index of foreign and domestic stocks and is widely recognized as a
measure of global stock market performance. It includes reinvestment of
dividends, and cannot be purchased directly by investors.
5. The Fund's portfolio is subject to change. Percentages are as of March 31,
1998 and are based on total market value of investments.
5 Oppenheimer Global Fund
<PAGE> 6
"OUR THEME-DRIVEN, BOTTOM-UP INVESTMENT APPROACH LED US TO A NUMBER OF
ATTRACTIVE COMPANIES."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED DURING THE PERIOD?
Oppenheimer Global Fund's Class A shares performed well, providing a cumulative
total return of 7.22% for the six-month period ended March 31, 1998.(1)
INTERNATIONAL STOCK MARKETS EXPERIENCED SHARP DECLINES AFTER THE ASIAN CRISIS IN
LATE OCTOBER. WHAT HAPPENED?
The forces underlying the decline developed slowly over the past five years.
During that time, so much investment capital flowed into the region that local
businesses began to use the money for speculative purposes, such as building
excess industrial capacity and office buildings.
Unfortunately, the region's economy failed to support these excesses.
Sales of Asian goods began to slow in 1997 when a stronger U.S. dollar made the
region's exports more expensive for consumers in the U.S. and Europe. At the
same time, the Japanese yen weakened, making Japan more competitive relative to
other Asian exporters. As a result, several countries were forced to devalue
their currencies. Many Asian companies, already overextended in the debt
markets, incurred severe losses in foreign exchange markets. When investors
attempted to take their money out of the region, securities prices plunged.
HOW DID THE ASIAN CRISIS AFFECT THE FUND'S INVESTMENTS?
Because our theme-oriented, "bottom-up" investment style led us away from Asian
stocks more than two years ago, we had little direct exposure to the region when
the crisis hit last summer. As of March 31, 1998, less than 4% of the Fund's
assets were invested in Southeast Asia. The few Asian holdings that were left in
the portfolio were, in our
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
6 Oppenheimer Global Fund
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Frank Jennings
William Wilby
(Portfolio Manager)
George Evans
view, inexpensively priced stocks of growing businesses with management teams
committed to enhancing shareholder value. In fact, unlike most global growth
funds, the Asian portion of our portfolio produced solid, positive returns
during calendar year 1997.
HOW DID THE REST OF THE WORLD'S STOCK MARKETS FARE OVER THE LAST SIX MONTHS?
In the U.S. stock market, a major setback in late October occurred in response
to the economic crisis in Southeast Asia. However, stocks rallied strongly over
the ensuing months, recovering all lost ground and more. By mid-March, most
broad U.S. stock indices--such as the Standard & Poor's 500 and Dow Jones
Industrial Average--were again setting new records.
Overseas, European stocks appeared to benefit from the same forces that
propelled U.S. stocks higher several years ago. For the first time in their
histories, European companies are striving to improve productivity, boost
profits and enhance shareholder value. This philosophical shift is caused partly
by the impending debut of the European Monetary Union and a single European
currency, the Euro. Companies that have become accustomed to dominating their
national markets understand that they will soon compete in the larger
continental market. As a result, many companies are expanding and joining forces
with other businesses through mergers and acquisitions.
Japan was an exception to the good news in the developed markets over the
past six months. That nation's economy remained trapped in a prolonged recession
because its financial system was grappling with systemic problems.
7 Oppenheimer Global Fund
<PAGE> 8
"WE THINK EUROPEAN MARKETS ARE POISED FOR THE TYPE OF GROWTH SEEN IN THE U.S.
OVER THE PAST FEW YEARS..."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
Finally, the emerging markets of Latin America suffered over the past six
months because of a "spillover" effect from the Asian crisis.
HOW DID THE ALLOCATION OF FUND ASSETS ACROSS GEOGRAPHIC REGIONS CHANGE OVER THE
LAST SIX MONTHS?
It is important to understand that the Fund's geographic allocations are largely
an outgrowth of our investment approach, in which we attempt to find good
companies in good businesses at the right price, and at the right time. Over the
past six months, our bottom-up strategy led us to increase our positions in
Germany, France, the U.K. and Switzerland, where we found individual companies
that met our criteria. To make these purchases, we took some profits in our U.S.
and European stocks that had done well.
WHICH INVESTMENTS WERE PARTICULARLY ATTRACTIVE?
Nintendo remains a large holding. Despite the general weakness of the Japanese
market, Nintendo has performed very well. We believe that the company's strength
is the result of its longstanding leadership in the entertainment software
industry, as well as wise management of shareholders' capital. Earnings have
risen in the wake of the success of its Nintendo 64 electronic game system, and
the subsequent sale of software to the system's customers. Alcatel Alsthom,
S.A., one of the largest industrial equipment companies in the world, joined the
ranks of our top-ten holdings for the first time in January. This French
conglomerate makes cables, handsets and telephone central office switches, among
other products. Alcatel recently hired a new chairman, who appears to be
committed to improving shareholder value. In fact, Alcatel is a classic example
of what we look for in an investment: it's a good company in a good business,
the security is selling at the right price and we believe it's the right time to
buy.
8 Oppenheimer Global Fund
<PAGE> 9
"...BUT WE EXPECT PERIODS OF HIGH VOLATILITY OVER THE NEAR TERM."
BONDS COMPRISED MORE THAN 7% OF THE FUND AT TIMES DURING THE PAST SIX MONTHS.
WHY INVEST IN BONDS INSTEAD OF STOCKS?
We took advantage of an unusual confluence of economic events to establish a
small position in zero-coupon U.S. Treasury bonds. When long-term interest
rates fell during the six-month period, zero-coupon bonds flourished because
their prices generally move in the opposite direction of interest rates. Yet,
we believe that these fixed-income investments may provide protection even if
interest rates rise modestly from current levels. That's because supply and
demand factors, which have supported U.S. Treasury bond prices, may provide a
cushion against declines if the interest-rate environment changes. These
positive risk-return characteristics made U.S. Treasury zero-coupon bonds an
attractive asset class, even for a global stock fund.
WHAT IS YOUR OUTLOOK FOR THE FUTURE OF THE GLOBAL MARKETS?
We are optimistic, but cautious. We believe that increasing demand for equities
worldwide will help drive global stock markets higher. But, stock valuations are
at the high end of their historical ranges, and economic fundamentals appear to
be eroding in some markets. In our view, the tug-of-war between deteriorating
fundamentals and strong investor demand should produce periods of high near-term
volatility on the way to positive long-term returns.
Accordingly, we have adopted a relatively defensive posture by shifting
away from pure growth companies, instead favoring stocks that offer both good
growth and attractive valuations. As always, we will continue to employ the
disciplined, company-by-company investment approach that, in our view, should
lead us to growing companies, regardless of the macroeconomic environment.
9 Oppenheimer Global Fund
<PAGE> 10
STATEMENT OF INVESTMENTS March 31, 1988 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
================================================================================
<S> <C> <C>
COMMON STOCKS--80.0%
- --------------------------------------------------------------------------------
BASIC MATERIALS--1.9%
- --------------------------------------------------------------------------------
CHEMICALS--0.6%
Minerals Technologies, Inc. 585,000 $ 29,469,375
- --------------------------------------------------------------------------------
GOLD & PLATINUM--1.0%
Barrick Gold Corp. 1,000,000 21,625,000
- --------------------------------------------------------------------------------
Newmont Mining Corp. 750,000 22,921,875
------------
44,546,875
- --------------------------------------------------------------------------------
METALS--0.3%
Cia de Minas Buenaventura SA, Sponsored ADR 587,500 9,657,031
- --------------------------------------------------------------------------------
De Beers Consolidated Mines Ltd., ADR(1) 301,100 6,605,381
------------
16,262,412
- --------------------------------------------------------------------------------
CONSUMER CYCLICALS--14.3%
- --------------------------------------------------------------------------------
AUTOS & HOUSING--3.9%
Brazil Realty SA, GDR(2) 200,000 4,801,900
- --------------------------------------------------------------------------------
Brisa-Auto Estradas de Portugal SA(3) 281,525 12,858,118
- --------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 7,296,101 27,584,227
- --------------------------------------------------------------------------------
Porsche AG, Preference 58,455 130,543,622
- --------------------------------------------------------------------------------
Solidere, GDR(1) (2) 540,000 7,708,500
------------
183,496,367
- --------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--4.4%
Callaway Golf Co.(1) 1,459,500 42,325,500
- --------------------------------------------------------------------------------
Granada Group plc 3,400,000 61,149,748
- --------------------------------------------------------------------------------
International Game Technology 1,000,000 25,000,000
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 800,000 68,990,824
- --------------------------------------------------------------------------------
Resorts World Berhad 2,804,000 6,201,300
------------
203,667,372
- --------------------------------------------------------------------------------
MEDIA--3.9%
Canal Plus 606,800 113,805,214
- --------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR(1) (2) (3) 1,595,000 58,416,875
- --------------------------------------------------------------------------------
Havas SA 120,816 10,003,507
------------
182,225,596
- --------------------------------------------------------------------------------
RETAIL: GENERAL--1.2%
Credit Saison Co. Ltd.(1) 1,000,000 22,122,058
- --------------------------------------------------------------------------------
Sonae Investimentos 728,000 34,268,654
------------
56,390,712
</TABLE>
10 Oppenheimer Global Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
================================================================================
<S> <C> <C>
RETAIL: SPECIALTY--0.9%
Borders Group, Inc.(3) 1,000,000 $ 34,062,500
- --------------------------------------------------------------------------------
Giordano International Ltd. 22,160,000 5,691,542
------------
39,754,042
- --------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--15.3%
- --------------------------------------------------------------------------------
BEVERAGES--2.4%
Al-Ahram Beverages Co., GDR(2) 30,000 925,500
- --------------------------------------------------------------------------------
Cadbury Schweppes plc 4,900,000 68,023,987
- --------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 23,800,000 18,440,575
- --------------------------------------------------------------------------------
Fraser & Neave Ltd. 74,000 313,879
- --------------------------------------------------------------------------------
South African Breweries Ltd. 888,500 26,343,564
------------
114,047,505
- --------------------------------------------------------------------------------
FOOD--2.8%
Carrefour Supermarche SA 58,500 34,463,485
- --------------------------------------------------------------------------------
Cresud SA, Sponsored ADR(1) (3) 350,000 7,503,125
- --------------------------------------------------------------------------------
Dairy Farm International Holdings Ltd. 36,683,456 44,020,147
- --------------------------------------------------------------------------------
Disco SA, Sponsored ADR(1) (3) 43,900 1,766,975
- --------------------------------------------------------------------------------
Parmalat Finanziaria SpA(1) (3) 20,000,000 43,009,083
------------
130,762,815
- --------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.9%
Amgen, Inc.(3) 700,000 42,612,500
- --------------------------------------------------------------------------------
BioChem Pharma, Inc.(1) (3) 1,097,500 26,545,781
- --------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1) (3) 1,000,000 32,000,000
- --------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) (3) 422,200 15,199,200
- --------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 1,000,000 54,125,000
- --------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc.(3) 140,500 6,568,375
- --------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) (3) 513,000 9,554,625
- --------------------------------------------------------------------------------
Novartis AG 25,000 44,244,508
------------
230,849,989
- --------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--2.1%
Quintiles Transnational Corp.(3) 472,784 22,782,279
- --------------------------------------------------------------------------------
SmithKline Beecham plc 1,000,000 12,643,241
- --------------------------------------------------------------------------------
Swiss Medical SA(3) (4) (7) 300,000 17,730,000
- --------------------------------------------------------------------------------
United States Surgical Corp. 1,400,000 46,200,000
------------
99,355,520
- --------------------------------------------------------------------------------
HOUSEHOLD GOODS--3.1%
Wella AG, Preference 170,000 145,700,865
</TABLE>
11 Oppenheimer Global Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================
<S> <C> <C>
TOBACCO--0.0%
PT Hanjaya Mandala Sampoerna 441,000 $ 400,214
- ----------------------------------------------------------------------------------
ENERGY--2.4%
- ----------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--2.0%
Coflexip SA, Sponsored ADR(1) 350,000 21,612,500
- ----------------------------------------------------------------------------------
Global Marine, Inc.(3) 1,000,000 24,750,000
- ----------------------------------------------------------------------------------
Transocean Offshore, Inc.(1) 503,198 25,883,247
- ----------------------------------------------------------------------------------
Western Atlas, Inc.(3) 290,500 22,477,437
-----------
94,723,184
- ----------------------------------------------------------------------------------
OIL-INTEGRATED--0.4%
British Petroleum Co. plc, ADR 198,373 17,072,476
- ----------------------------------------------------------------------------------
FINANCIAL--18.0%
- ----------------------------------------------------------------------------------
BANKS--14.1%
Amalgamated Banks of South Africa Ltd. 700,000 6,355,587
- ----------------------------------------------------------------------------------
Banco Bradesco SA, Preference 3,497,522,476 36,142,648
- ----------------------------------------------------------------------------------
Banco Espirito Santo e Comercial de Lisboa SA 350,000 16,170,387
- --------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA, Sponsored ADR(1) 662,055 19,944,407
- --------------------------------------------------------------------------------
Banco Latinoamericano de Exportaciones SA, Cl. E 305,600 11,498,200
- --------------------------------------------------------------------------------
Banco Pinto & Sotto Mayor SA 548,500 13,611,902
- --------------------------------------------------------------------------------
Banco Rio de la Plata SA, ADR(3) 1,000,000 12,500,000
- --------------------------------------------------------------------------------
Banque Libanaise Pour Le Commercial, GDR(1) (3) 230,000 4,025,000
- --------------------------------------------------------------------------------
Barclays plc 900,000 26,977,830
- --------------------------------------------------------------------------------
Bayerische Vereinsbank AG 700,000 50,001,703
- --------------------------------------------------------------------------------
Cie Financiere de Paribas, Series A(1) 700,000 70,839,590
- --------------------------------------------------------------------------------
Credito Italiano SpA(1) 9,167,600 45,288,036
- --------------------------------------------------------------------------------
Deutsche Bank AG(1) 600,000 44,983,689
- --------------------------------------------------------------------------------
Grupo Financiero Banamex Accival SA de CV, Cl. B(3) 8,611,400 21,938,469
- --------------------------------------------------------------------------------
Industrial Finance Corp. 7,386,499 4,328,516
- --------------------------------------------------------------------------------
Istituto Bancario San Paolo di Torino(1) 2,000,000 28,032,706
- --------------------------------------------------------------------------------
National Westminster Bank plc 2,582,903 47,275,892
- --------------------------------------------------------------------------------
Northern Trust Corp. 301,600 22,544,600
- --------------------------------------------------------------------------------
Societe Generale 311,000 62,243,289
- --------------------------------------------------------------------------------
UBS, Bearer 50,000 81,667,031
- --------------------------------------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros SA, Sponsored
GDR Representing 500 Units of One Preferred Share of
Unibanco and one Preferred Share of Unibanco
Holdings SA(1) 955,800 34,647,750
------------
661,017,232
- ----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--3.5%
American Express Co. 200,000 18,362,500
- ----------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A(1) 400,000 31,600,000
</TABLE>
12 Oppenheimer Global Fund
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
======================================================================================
<S> <C> <C>
DIVERSIFIED FINANCIAL(CONTINUED)
Egypt Investment Co.(3) 96,500 $ 1,447,500
- --------------------------------------------------------------------------------------
Fannie Mae 800,000 50,600,000
- --------------------------------------------------------------------------------------
First NIS Regional Fund(2) (3) 1,320,000 23,166,000
- --------------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 118,910 9,574,513
- --------------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India Ltd. 50 117
- --------------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India Ltd., GDR(1)(2) 1,928,200 29,405,050
------------
164,155,680
- --------------------------------------------------------------------------------------
INSURANCE--0.4%
American International Group, Inc. 130,200 16,397,062
- --------------------------------------------------------------------------------------
INDUSTRIAL--5.5%
- --------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.9%
Adecco SA 94,270 33,330,336
- --------------------------------------------------------------------------------------
Atos SA(3) 108,500 18,037,545
- --------------------------------------------------------------------------------------
Grupo Elektra SA de CV, CPO 6,382,500 9,741,077
- --------------------------------------------------------------------------------------
IHC Caland NV 185,158 10,223,021
- --------------------------------------------------------------------------------------
Rentokil Group plc 10,200,000 62,430,818
- --------------------------------------------------------------------------------------
WPP Group plc 8,400,000 47,439,786
------------
181,202,583
- --------------------------------------------------------------------------------------
MANUFACTURING--1.4%
Hutchison Whampoa Ltd. 3,074,000 21,622,577
- --------------------------------------------------------------------------------------
Powerscreen International plc 3,708,674 14,439,531
- --------------------------------------------------------------------------------------
Societe BIC SA 400,000 30,459,894
------------
66,522,002
- --------------------------------------------------------------------------------------
TRANSPORTATION--0.2%
Guangshen Railway Co. Ltd., Sponsored ADR 868,500 10,313,437
- --------------------------------------------------------------------------------------
TECHNOLOGY--19.9%
- --------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.5%
Rolls-Royce plc 14,867,584 69,463,406
- --------------------------------------------------------------------------------------
COMPUTER HARDWARE--2.1%
International Business Machines Corp. 350,000 36,356,250
- --------------------------------------------------------------------------------------
Iomega Corp.(3) 3,000,000 20,625,000
- --------------------------------------------------------------------------------------
Sun Microsystems, Inc.(3) 1,000,000 41,718,750
------------
98,700,000
- --------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES--4.6%
Cap Gemini SA(1) 1,000,000 117,501,075
- --------------------------------------------------------------------------------------
First Data Corp. 376,000 12,220,000
- --------------------------------------------------------------------------------------
Microsoft Corp.(3) 250,000 22,375,000
- --------------------------------------------------------------------------------------
Misys plc 1,287,334 63,120,987
-----------
215,217,062
</TABLE>
13 Oppenheimer Global Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=======================================================================================
<S> <C> <C>
ELECTRONICS--5.1%
Advanced Micro Devices, Inc.(1) (3) 2,000,000 $ 58,125,000
- ---------------------------------------------------------------------------------------
Intel Corp. 200,000 15,612,500
- ---------------------------------------------------------------------------------------
Keyence Corp. 120,000 16,557,798
- ---------------------------------------------------------------------------------------
National Semiconductor Corp.(3) 4,000,000 83,750,000
- ---------------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(1) (3) 170,000 13,185,625
- ---------------------------------------------------------------------------------------
Sony Corp. 601,000 50,927,976
- ---------------------------------------------------------------------------------------
Unit Trust of India-Masterplus 91(3) 85,800 37,379
--------------
238,196,278
- ---------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--6.6%
Alcatel Alsthom SA 600,000 112,626,717
- ---------------------------------------------------------------------------------------
Cisco Systems, Inc.(3) 372,000 25,435,500
- ---------------------------------------------------------------------------------------
Energis plc(3) 400,000 3,767,853
- ---------------------------------------------------------------------------------------
General Instrument Corp.(3) 797,800 16,703,937
- ---------------------------------------------------------------------------------------
Pairgain Technologies, Inc.(3) 520,600 12,494,400
- ---------------------------------------------------------------------------------------
QUALCOMM, Inc.(1) (3) 1,380,100 73,835,350
- ---------------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 358,600 7,015,113
- ---------------------------------------------------------------------------------------
SK Telecom Co. Ltd. 48,568 27,738,323
- ---------------------------------------------------------------------------------------
Telecom Italia Mobile SpA(1) 5,000,000 26,866,962
--------------
306,484,155
- ---------------------------------------------------------------------------------------
UTILITIES--2.7%
- ---------------------------------------------------------------------------------------
TELEPHONE UTILITIES--2.7%
CPT Telefonica del Peru SA, Cl. B 11,599,949 25,112,844
- ---------------------------------------------------------------------------------------
Portugal Telecom SA 1,297,760 67,502,370
- ---------------------------------------------------------------------------------------
Telecomunicacoes de Sao Paulo SA, Preference 105,041,000 34,088,414
--------------
126,703,628
--------------
Total Common Stocks (Cost $2,704,204,809) 3,743,097,844
=======================================================================================
PREFERRED STOCKS--0.2%
- ---------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner AG,
Non-Vtg. Preferred Stock (Cost $1,507,735) 27,200 8,883,616
UNITS
- ---------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ---------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 51,750 --
- ---------------------------------------------------------------------------------------
Cap Gemini SA Rts., Exp. 4/98 1,000,000 3,090,859
--------------
Total Rights, Warrants and Certificates (Cost $0) 3,090,859
</TABLE>
14 Oppenheimer Global Fund
<PAGE> 15
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
=========================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--3.9%
- -----------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.44%, 8/15/25(1) (8) $295,000,000 $ 58,163,085
- -----------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.93%, 2/15/19(8) 216,700,000 61,938,928
- -----------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.98%, 11/15/18(8) 216,900,000 62,948,718
--------------
Total U.S. Government Obligations (Cost $157,009,088) 183,050,731
=========================================================================================
SHORT-TERM NOTES--8.1%(9)
- -----------------------------------------------------------------------------------------
Associates Corp. of North America, 5.54%, 4/2/98 50,000,000 49,992,305
- -----------------------------------------------------------------------------------------
BMW US Capital Corp., 5.45%, 4/28/98 50,000,000 49,792,250
- -----------------------------------------------------------------------------------------
Countrywide Funding Corp., 5.57%, 4/1/98 50,000,000 50,000,000
- -----------------------------------------------------------------------------------------
Ford Motor Credit Corp., 5.42%, 4/10/98 50,000,000 49,930,875
- -----------------------------------------------------------------------------------------
General Electric Capital Services, Inc., 5.53%, 4/27/98 50,000,000 49,800,306
- -----------------------------------------------------------------------------------------
General Electric Capital Services, Inc., 5.53%, 5/1/98 50,000,000 49,769,583
- -----------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.52%, 4/22/98 50,000,000 49,839,000
- -----------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.55%, 4/7/98 30,000,000 29,972,250
--------------
Total Short-Term Notes (Cost $379,096,569) 379,096,569
=========================================================================================
REPURCHASE AGREEMENTS--4.7%
- -----------------------------------------------------------------------------------------
Repurchase agreement with Salomon Smith Barney Holdings,
Inc., 5.90%, dated 3/31/98, to be repurchased at
$218,235,761 on 4/1/98, collateralized by U.S. Treasury
Bonds, 9.125%-10.625%, 8/15/15- 5/15/18, with a value
of $223,972,440 (Cost $218,200,000) 218,200,000 218,200,000
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,460,018,201) 97.0% 4,535,419,619
- -----------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 3.0 141,223,725
------------ --------------
NET ASSETS 100.0% $4,676,643,344
============ ==============
</TABLE>
15 Oppenheimer Global Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
- ----------------------------------------------------------------------------------
<S> <C> <C>
United States $1,747,925,176 38.5%
- ----------------------------------------------------------------------------------
France 607,869,301 13.4
- ----------------------------------------------------------------------------------
Great Britain 547,930,556 12.1
- ----------------------------------------------------------------------------------
Germany 380,113,495 8.4
- ----------------------------------------------------------------------------------
Switzerland 159,241,874 3.5
- ----------------------------------------------------------------------------------
Japan 158,598,655 3.5
- ----------------------------------------------------------------------------------
Portugal 144,411,430 3.2
- ----------------------------------------------------------------------------------
Italy 143,196,787 3.1
- ----------------------------------------------------------------------------------
Brazil 128,121,286 2.8
- ----------------------------------------------------------------------------------
Mexico 90,096,421 2.0
- ----------------------------------------------------------------------------------
Argentina 87,028,734 1.9
- ----------------------------------------------------------------------------------
Canada 48,170,781 1.0
- ----------------------------------------------------------------------------------
Singapore 44,334,027 1.0
- ----------------------------------------------------------------------------------
South Africa 39,304,532 0.9
- ----------------------------------------------------------------------------------
India 39,017,059 0.9
- ----------------------------------------------------------------------------------
Peru 34,769,875 0.8
- ----------------------------------------------------------------------------------
Korea, Republic of (South) 27,738,323 0.6
- ----------------------------------------------------------------------------------
Hong Kong 27,314,118 0.6
- ----------------------------------------------------------------------------------
Russia 23,166,000 0.5
- ----------------------------------------------------------------------------------
Lebanon 11,733,500 0.3
- ----------------------------------------------------------------------------------
Panama 11,498,200 0.3
- ----------------------------------------------------------------------------------
China 10,313,438 0.2
- ----------------------------------------------------------------------------------
The Netherlands 10,223,021 0.2
- ----------------------------------------------------------------------------------
Malaysia 6,201,300 0.1
- ----------------------------------------------------------------------------------
Thailand 4,328,516 0.1
- ----------------------------------------------------------------------------------
Egypt 2,373,000 0.1
- ----------------------------------------------------------------------------------
Indonesia 400,214 0.0
-------------- -----
Total $4,535,419,619 100.0%
============== =====
</TABLE>
1. Loaned security--See Note 8 of Notes to Financial Statements.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $124,423,825 or 2.66% of the Fund's net
assets as of March 31, 1998.
3. Non-income producing security.
16 Oppenheimer Global Fund
<PAGE> 17
- --------------------------------------------------------------------------------
4. 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 March 31, 1998.
The aggregate fair value of all securities of affiliated companies held by the
Fund as of March 31, 1998 amounts to $17,730,000. Transactions during the period
in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
SHARES GROSS GROSS SHARES
SEPTEMBER 30, 1997 ADDITIONS REDUCTIONS MARCH 31, 1998
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Clinica y Maternidad
Suizo Argentino (5) 1,800 -- 1,800 --
- ----------------------------------------------------------------------------------------------------------
Swiss Medical SA(5) -- 300,000 -- 300,000
- ----------------------------------------------------------------------------------------------------------
LEM Holdings SA 25,000 -- 25,000 --
- ----------------------------------------------------------------------------------------------------------
Wella AG Preference (6) 163,000 7,000 -- 170,000
</TABLE>
5. Swiss Medical SA signed a Share Exchange Agreement to acquire all
outstanding shares of Swiss Medical Group SA and Clinica y Maternidad Suizo
Argentina in exchange for shares of Swiss Medical SA.
6. Not an affiliate as of March 31, 1998
7. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
8. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
9. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
17 Oppenheimer Global Fund
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES March 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
==================================================================================
<S> <C>
ASSETS
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,446,728,201) $4,517,689,619
Affiliated companies (cost $13,290,000) 17,730,000
- ----------------------------------------------------------------------------------
Collateral for securities loaned--Note 8 486,845,632
- ----------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts--Note 5 10,810,094
- ----------------------------------------------------------------------------------
Receivables:
Investments sold 176,383,821
Shares of beneficial interest sold 9,007,029
Interest and dividends 7,725,282
Closed forward foreign currency exchange contracts 730,311
- ----------------------------------------------------------------------------------
Other 94,614
-------------
Total assets 5,227,016,402
==================================================================================
LIABILITIES
Bank overdraft 6,469,516
- ----------------------------------------------------------------------------------
Return of collateral for securities loaned--Note 8 486,845,632
- ----------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 108,707
- ----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 49,020,097
Shares of beneficial interest redeemed 3,509,678
Distribution and service plan fees 2,129,019
Custodian fees 678,684
Transfer and shareholder servicing agent fees 616,238
Shareholder reports 496,236
Trustees' fees--Note 1 355,355
Other 143,896
--------------
Total liabilities 550,373,058
==================================================================================
NET ASSETS $4,676,643,344
==============
- ----------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $3,333,199,061
- ----------------------------------------------------------------------------------
Overdistributed net investment income (5,882,081)
- ----------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 263,259,842
- ----------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 1,086,066,522
--------------
Net assets $4,676,643,344
==============
</TABLE>
18 Oppenheimer Global Fund
<PAGE> 19
<TABLE>
==============================================================================================
<C> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$3,583,271,407 and 78,583,767 shares of beneficial interest outstanding) $45.60
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $48.38
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $1,013,396,030 and
22,745,303 shares of beneficial interest outstanding) $44.55
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $79,975,907 and
1,773,114 shares of beneficial interest outstanding) $45.10
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Global Fund
<PAGE> 20
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1998 (Unaudited)
<TABLE>
==================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 19,840,633
- ----------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,174,417) 12,512,980
- ----------------------------------------------------------------------------------
Lending fees 575,479
------------
Total income 32,929,092
==================================================================================
EXPENSES
Management fees--Note 4 14,770,930
- ----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 3,046,736
Class B 4,493,612
Class C 323,705
- ----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 3,226,570
- ----------------------------------------------------------------------------------
Custodian fees and expenses 1,420,598
- ----------------------------------------------------------------------------------
Shareholder reports 396,735
- ----------------------------------------------------------------------------------
Registration and filing fees 174,128
- ----------------------------------------------------------------------------------
Legal and auditing fees 79,422
- ----------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 37,221
- ----------------------------------------------------------------------------------
Insurance expenses 13,039
- ----------------------------------------------------------------------------------
Other 72,301
------------
Total expenses 28,054,997
==================================================================================
NET INVESTMENT INCOME 4,874,095
==================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments:
Unaffiliated companies 440,724,987
Affiliated companies 232,157
Closing of futures contracts (20,468,590)
Foreign currency transactions (67,547,978)
------------
Net realized gain 352,940,576
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (56,469,324)
Translation of assets and liabilities denominated
in foreign currencies 4,644,626
------------
Net change (51,824,698)
============
Net realized and unrealized gain 301,115,878
==================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $305,989,973
============
See accompanying Notes to Financial Statements.
</TABLE>
20 Oppenheimer Global Fund
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
==================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 4,874,095 $ 19,306,936
- --------------------------------------------------------------------------------------------------
Net realized gain 352,940,576 494,542,865
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (51,824,698) 516,162,745
-------------- --------------
Net increase in net assets resulting from operations 305,989,973 1,030,012,546
==================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (56,871,453) (33,892,204)
Class B (9,622,173) (3,899,147)
Class C (754,648) (207,585)
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (393,762,527) (88,232,113)
Class B (109,215,398) (20,402,731)
Class C (7,621,008) (788,673)
==================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 389,629,430 206,934,768
Class B 170,521,351 184,954,826
Class C 22,744,498 33,524,657
==================================================================================================
NET ASSETS
Total increase 311,038,045 1,308,004,344
- --------------------------------------------------------------------------------------------------
Beginning of period 4,365,605,299 3,057,600,955
-------------- --------------
End of period [including undistributed (overdistributed) net
investment income of $(5,882,081) and $56,492,098,
respectively] $4,676,643,344 $4,365,605,299
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer Global Fund
<PAGE> 22
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
1998 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1997 1996 1995
=================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 49.32 $39.00 $36.84 $37.69
- -------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .10 .32 .23 .31
Net realized and unrealized gain (loss) 2.75 11.91 4.22 2.59
------- ------ ------ ------
Total income (loss) from
investment operations 2.85 12.23 4.45 2.90
- -------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.83) (.53) (.24) --
Distributions from net realized gain (5.74) (1.38) (2.05) (3.75)
------- ------ ------ ------
Total dividends and distributions
to shareholders (6.57) (1.91) (2.29) (3.75)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 45.60 $49.32 $39.00 $36.84
======= ====== ====== ======
=================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 7.22% 32.85% 12.98% 9.26%
=================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3,583 $3,408 $2,499 $2,186
- -------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 3,304 $2,869 $2,309 $1,979
- -------------------------------------------------------------------------------------------------
Average amount of debt outstanding
throughout each period (in thousands) N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------------
Average number of shares outstanding
throughout each period (in thousands) N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each period N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.41%(4) 0.74% 0.62% 0.90%
Expenses 1.13%(4) 1.13% 1.17% 1.20%
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 29.0% 65.9% 102.9% 84.4%
Average brokerage commission rate(7) $0.0094 $0.0045 $0.0071 --
</TABLE>
1. For the period from October 2, 1995 (inception of offering) to September 30,
1996.
2. For the period from August 17, 1993 (inception of offering) to
September 30, 1993.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
22 Oppenheimer Global Fund
<PAGE> 23
<TABLE>
<CAPTION>
CLASS B
- -------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
1998 YEAR ENDED SEPTEMBER 30,
1994 1993 (UNAUDITED) 1997 1996 1995 1994 1993(2)
===========================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$35.04 $30.03 $48.19 $38.19 $36.16 $37.36 $34.99 $33.33
- -------------------------------------------------------------------------------------------
.17 .26 (.05) (.04) (.05) .06 .08 .03
6.10 4.99 2.66 11.68 4.13 2.49 5.83 1.63
------ ------ ---- ---- ---- ---- ---- ----
6.27 5.25 2.61 11.64 4.08 2.55 5.91 1.66
- -------------------------------------------------------------------------------------------
(.25) (.12) (.51) (.26) -- -- (.18) --
(3.37) (.12) (5.74) (1.38) (2.05) (3.75) (3.36) --
------ ------ ---- ---- ---- ---- ---- ----
(3.62) (.24) (6.25) (1.64) (2.05) (3.75) (3.54) --
- -------------------------------------------------------------------------------------------
$37.69 $35.04 $44.55 $48.19 $38.19 $36.16 $37.36 $34.99
====== ====== ===== ===== ===== ===== ===== =====
===========================================================================================
19.19% 17.67% 6.77% 31.77% 12.07% 8.34% 18.10% 3.64%
===========================================================================================
$1,921 $1,389 $1,013 $897 $541 $340 $187 $6
- -------------------------------------------------------------------------------------------
$1,711 $1,213 $ 902 $692 $438 $258 $ 88 $3
- -------------------------------------------------------------------------------------------
N/A $18,247 N/A N/A N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------
N/A 39,853 N/A N/A N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------
N/A $0.46 N/A N/A N/A N/A N/A N/A
- -------------------------------------------------------------------------------------------
0.38% 0.84% (4) (0.39)%(4) (0.23)% (0.17)% 0.09% (0.30)% 1.52%(4)
1.15% 1.18% (4) 1.95%(4) 1.94% 2.00% 2.03% 2.08% 2.40%(4)
- -------------------------------------------------------------------------------------------
78.3% 86.9% 29.0% 65.9% 102.9% 84.4% 78.3% 86.9%
-- -- $0.0094 $0.0045 $0.0071 -- -- --
</TABLE>
4. Annualized.
5. Due to the acquisition of the net assets of Oppenheimer Global Emerging
Growth Fund, the ratios for Class C shares are not necessarily comparable to
those of prior periods.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended March 31, 1998 were $1,130,278,096 and $1,765,023,501,
respectively.
23 Oppenheimer Global Fund
<PAGE> 24
FINANCIAL HIGHLIGHTS(Continued)
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------
SIX MONTHS ENDED
MARCH 31, 1998 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 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) .06 (.08) .09
Net realized and unrealized gain (loss) 2.58 11.86 4.13
------ ------ ------
Total income (loss) from
investment operations 2.64 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 $45.10 $48.77 $38.73
====== ====== ======
==========================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 6.80% 31.76% 12.34%
==========================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $80 $60 $18
- ------------------------------------------------------------------------------------------
Average net assets (in millions) $65 $35 $ 8
- ------------------------------------------------------------------------------------------
Average amount of debt outstanding
throughout each period (in thousands) N/A N/A N/A
- ------------------------------------------------------------------------------------------
Average number of shares outstanding
throughout each period (in thousands) N/A N/A N/A
- ------------------------------------------------------------------------------------------
Average amount of debt per share
outstanding throughout each period N/A N/A N/A
- ------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.37)%(4) (0.86)%(5) 0.04%(4)
Expenses 1.95%(4) 1.94% 1.99%(4)
- ------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 29.0% 65.9% 102.9%
Average brokerage commission rate(7) $0.0094 $0.0045 $0.0071
</TABLE>
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities.
See accompanying Notes to Financial Statements.
24 Oppenheimer Global Fund
<PAGE> 25
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
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 by investing
primarily in common stocks of U.S. and foreign companies. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class
B and Class C shares. Class A shares are sold with a front-end sales charge.
Class B and Class C shares may be subject to a contingent deferred sales charge.
All classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or service plan,
expenses directly attributable to that class and exclusive voting rights with
respect to matters affecting that class. Class B shares will automatically
convert to Class A shares six years after the date of purchase. The following is
a summary of significant accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. Forward foreign currency exchange contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank or
dealer.
25 Oppenheimer Global Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIGICANT 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, AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At September 30, 1997, the
Fund had available for federal tax purposes an unused capital loss carryover of
approximately $27,670,000, which expires between 1998 and 2004. The capital loss
carryover was acquired in connection with the merger with Oppenheimer Global
Emerging Growth Fund.
26 Oppenheimer Global Fund
<PAGE> 27
================================================================================
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 six months
ended March 31, 1998, a provision of $2,570 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 $317,117 at March 31, 1998.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
27 Oppenheimer Global Fund
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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>
SIX MONTHS ENDED MARCH 31, 1998 YEAR ENDED SEPTEMBER 30, 1997
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,238,506 $ 318,479,762 11,624,466 $ 495,244,280
Dividends reinvested 10,509,818 432,689,156 3,097,502 117,118,681
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 -- -- 3,204,584 145,520,176
Redeemed (8,258,631) (361,539,488) (12,907,303) (550,948,369)
----------- ------------- ---------- -------------
Net increase 9,489,693 $ 389,629,430 5,019,249 $ 206,934,768
=========== ============= ========== =============
- --------------------------------------------------------------------------------------------------
Class B:
Sold 3,095,389 $ 133,726,455 5,824,454 $ 244,964,288
Dividends reinvested 2,816,027 113,598,549 624,025 23,201,893
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 -- -- 312,088 13,881,679
Redeemed (1,786,737) (76,803,653) (2,312,418) (97,093,034)
--------- ---------- ---------- ------------
Net increase 4,124,679 $ 170,521,351 4,448,149 $ 184,954,826
========= ============= ========== ============
- --------------------------------------------------------------------------------------------------
Class C:
Sold 659,687 $ 28,713,578 1,111,161 $ 47,405,719
Dividends reinvested 196,341 8,016,566 25,342 953,635
Issued in connection with the
acquisition of Oppenheimer Global
Emerging Growth Fund--Note 9 -- -- 95,479 4,297,523
Redeemed (321,041) (13,985,646) (449,001) (19,132,220)
--------- ------------ ------- ----------
Net increase 534,987 $ 22,744,498 782,981 $ 33,524,657
========= ============= ========== ============
==================================================================================================
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At March 31, 1998, net unrealized appreciation on investments of $1,075,401,418
was composed of gross appreciation of $1,181,135,596, and gross depreciation of
$105,734,178.
28 Oppenheimer Global Fund
<PAGE> 29
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.80% on the first
$250 million of average annual net assets, 0.77% on the next $250 million, 0.75%
on the next $500 million, 0.69% on the next $1 billion, 0.67% on the next $1.5
billion, 0.65% on the next $2.5 billion and 0.63% on 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.
For the six months ended March 31, 1998, commissions (sales
charges paid by investors) on sales of Class A shares totaled $3,042,182, of
which $958,269 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 $3,944,536 and $192,145, respectively,
of which $341,911 and $5,161, respectively, was paid to an affiliated
broker/dealer. During the six months ended March 31, 1998, OFDI received
contingent deferred sales charges of $728,675 and $6,989, respectively, upon
redemption of Class B and Class C shares, as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund and for other
registered investment companies. OFS's total costs of providing such services
are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of shareholder accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not exceed
0.25% of the average annual net assets of Class A shares of the Fund. OFDI uses
the service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance of
accounts of their customers that hold Class A shares. During the six months
ended March 31, 1998, OFDI paid $210,346 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
29 Oppenheimer Global Fund
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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 shares 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 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 six months
ended March 31, 1998, OFDI paid $60,595 and $3,342, respectively, to an
affiliated broker/dealer as compensation for Class B and Class C personal
service and maintenance expenses and retained $3,638,717 and $203,028,
respectively, as compensation for Class B and Class C sales commissions and
service fee advances, as well as financing costs. If either Plan is terminated
by the Fund, the Board of Trustees may allow the Fund to continue payments of
the asset-based sales charge to OFDI for distributing shares before the Plan
was terminated. At March 31, 1998, OFDI had incurred excess distribution and
servicing costs of $20,092,858 for Class B and $693,763 for Class C.
- -------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign
currency risks. They may also be used to tactically shift portfolio currency
risk. The Fund generally enters into forward contracts as a hedge upon the
purchase or sale of a security denominated in a foreign currency. In addition,
the Fund may enter into such contracts as a hedge against changes in foreign
currency exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the
forward currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable bank or dealer. The Fund will realize a
gain or loss upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the counterparty to meet
the terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
30 Oppenheimer Global Fund
<PAGE> 31
<TABLE>
<CAPTION>
===============================================================================================================
At March 31, 1998, the Fund had outstanding forward contracts as follows:
EXPIRATION CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
DATE AMOUNT (000S) MARCH 31, 1998 APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
- ---------------------
British Pound Sterling (GBP) 4/1/98 726 GBP $ 1,215,061 $ -- $ 4,280
German Mark (DEM) 4/1/98 14,239 DEM 7,699,361 -- 66,504
----------- --------
-- 70,784
----------- --------
CONTRACTS TO SELL
- -----------------
British Pound Sterling (GBP) 4/2/98 502 GBP 840,944 2,761 --
British Pound Sterling (GBP) 4/2/98 495 GBP 828,829 2,721 --
British Pound Sterling (GBP) 4/2/98 12,533 GBP 20,987,683 68,912 --
Hong Kong Dollar (HKD) 4/1/98 61,627 HKD 7,953,896 -- 1,171
Indonesian Rupiah (IDR) 4/2/98 9,484,154 IDR 1,096,434 -- 36,752
Japanese Yen (JPY) 4/1/98 1,527,156 JPY 11,452,147 282,570 --
Singapore Dollar (SGD) 4/2/98 703 SGD 435,117 1,447 --
Singapore Dollar (SGD) 4/3/98 400 SGD 247,411 823 --
Swiss Franc (CHF) 7/6/98 285,780 CHF 189,549,140 10,450,860 --
----------- --------
10,810,094 37,923
----------- --------
Total Unrealized Appreciation and Depreciation $10,810,094 $108,707
=========== ========
===========================================================================================================
</TABLE>
6. ILLIQUID AND RESTRICTED SECURITIES
At March 31, 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 at March 31, 1998 was $17,730,000, which represents
0.39% of the Fund's net assets. Information concerning restricted securities is
as follows:
<TABLE>
<CATPION>
COST VALUATION PER UNIT
SECURITY ACQUISITION DATE PER UNIT AS OF MARCH 31, 1998
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Swiss Medical, SA 10/28/97 $44.30 $59.10
</TABLE>
31 Oppenheimer Global Fund
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
7. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other 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 six months
ended March 31, 1998.
===============================================================================
8. SECURITIES LOANED
The Fund has entered into a securities lending arrangement with the custodian.
Under the terms of the agreement, the Fund receives 60% of the annual net income
from lending transactions. In exchange for such fees, the custodian is
authorized to loan securities on behalf of the Fund, against receipt of
collateral at least equal in value to the value of the securities loaned. Cash
collateral is invested by the custodian in money market instruments approved by
the Manager. As of March 31, 1998, the Fund had on loan securities valued at
$477,288,081. Cash of $486,845,632 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.
===============================================================================
9. ACQUISITION OF OPPENHEIMER GLOBAL EMERGING GROWTH FUND
On June 20, 1997, the Fund acquired all the net assets of Oppenheimer Global
Emerging Growth Fund, pursuant to an agreement and plan of reorganization
approved by the Oppenheimer Global Emerging Growth Fund shareholders on June 17,
1997. The Fund issued 3,204,584, 312,088 and 95,479 shares of beneficial
interest for Class A, Class B and Class C, respectively, valued at $145,520,176,
$13,881,679, and $4,297,523, in exchange for the net assets, resulting in
combined Class A net assets of $3,183,354,282, Class B net assets of
$783,786,956 and Class C net assets of $46,691,471 on June 20, 1997. The net
assets acquired included net unrealized appreciation of $36,954,700. The
exchange qualified as a tax-free reorganization for federal income tax purposes.
32 Oppenheimer Global Fund
<PAGE> 33
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 OppenheimerFunds Services
SHAREHOLDER
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
The financial statements included herein have been
taken from the records of the Fund without
examination of the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Global Fund. This report must be
preceded or accompanied by a Prospectus of
Oppenheimer Global Fund. For material information
concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the OFDI or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
33 Oppenheimer Global Fund
<PAGE> 34
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 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.
34 Oppenheimer Global Fund
<PAGE> 35
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- --------------------------------------------------------------------------------
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[OPPENHEIMERFUNDS LOGO]
RS0330.001.0398 May 29, 1998